Americas Gold & Silver - The Turnaround Team

Interview with Pual Huet, Chairman & CEO, and Oliver Turner, Corporate Development, Americas Gold & Silver.

Recording date: 21st January, 2025

Americas Gold and Silver Corporation (TSX: USA) (NYSE American: USAS) presents a compelling investment opportunity for those seeking exposure to the precious metals sector. Under the leadership of a proven management team with a track record of successful turnarounds, the company is aggressively advancing a transformation plan centered on its flagship Galena Complex silver mine in Idaho.

CEO Paul Huet, who previously led a 5x production increase at Karora Resources, has hit the ground running since taking the helm just 28 days ago. Key initiatives already underway include consolidating 100% ownership of Galena, raising $50 million in growth capital, restructuring debt and assembling a top-tier leadership team and board.

The centerpiece of the Americas Gold and Silver investment thesis is the Galena Complex. While the mine has faced challenges in recent years, it offers significant untapped potential. Galena historically produced over 5 million ounces of silver equivalent annually, with a peak of 5 million ounces in 2002 alone. The mine boasts substantial infrastructure including over 55 miles of development, four production shafts and two mills with over 1200 tpd of capacity.

Huet and his team are moving swiftly to optimize Galena, with a near-term goal of increasing production from 365 to over 1,000 tpd. Opportunities for operational improvement are abundant, from upgrading underground mining methods and hoisting to streamlining the mills for continuous production. Exploration upside is also significant, with minimal drilling having taken place over the past decade.

Beyond silver, Galena offers exposure to critical metals with compelling macro tailwinds. The mine is the only current US producer of antimony, a scarce mineral used in high-tech and defense applications. Preliminary estimates suggest Galena has produced over $240 million worth of antimony with zero payability to date - an opportunity Huet and team are eager to capitalize on. Galena is also a meaningful producer of copper, where again the company sees an opportunity to improve payability terms.

While the flagship Galena asset is the core focus, Americas Gold and Silver also benefits from its cash-flowing Cosalá Operations in Mexico. Led by Darren Blasutti, Cosalá is expected to generate over $20 million in free cash flow this year to support growth initiatives.

With silver prices showing signs of entering a new bull market and ongoing strength in antimony and copper, the Americas Gold and Silver investment opportunity appears timely. As the company delivers on its operational turnaround and growth objectives, shareholders could benefit from significant torque to rising metals prices. If Huet and team can replicate even a portion of their past success in creating shareholder value, Americas Gold and Silver could emerge as a standout story in the precious metals space.

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Learn more: https://cruxinvestor.com/companies/americas-gold-and-silver

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