Americas Gold and Silver Achieves Record Silver Production

Americas Gold and Silver has announced a record output of 800,458 ounces of silver for the September quarter, demonstrating a significant production increase yet maintaining a cautious approach towards resource expansion.

Stellar Results Amid a Conservative Strategy

Management released the impressive figures on October 19, 2026, revealing that silver production from the Cosalá operation rose by 23% compared to the previous quarter. As the company ventured deeper into the prime high-grade zones of the EC120 orebody, they opted not to rush into richer areas, illustrating a strategic restraint that bears watching.

Over the year, silver production has reached 2.3 million ounces, aligning with the annual guidance of 3.2 to 3.6 million ounces. The all-in sustaining cost for production has been estimated between US$30 and US$35 per ounce, while silver sold at an impressive realized price of US$60.54 per ounce in this quarter.

Key Factors Driving Production Success

The record achievements were nearly evenly split between the Cosalá and Galena operations, with Cosalá performing slightly better. Notably, copper also realized US$6.41 per pound. The increase at Cosalá was primarily attributed to improved ore quality rather than increased volume.

The company highlighted findings from drill hole SR583, which reported a true thickness of 20.5 meters at an astonishing 654.7 grams per ton of silver and 1.5% copper. This sample was noted to exceed the average mineral resource grade estimated for 2025 by more than five times, indicating potential wealth beyond current boundaries.

Why Caution is the Chosen Path

Despite opportunities for quicker access to higher-grade ore, CEO Paul Andre Huet has decided to prioritize recovery rates over speed. This careful planning avoids potentially losing up to 12% of recoverable metal if higher grades were approached without strategic milling processes.

Optimizing Recovery Through Grinding

Recovery in mining describes the percentage of metal extracted from ore. How finely the rock is ground largely influences this recovery rate. Modern milling systems must balance various factors, including throughput and energy efficiency, against the amount of metal recovered.

• Coarser grind: Increases daily tonnage but leaves more silver trapped in waste.
• Finer grind: Maximizes metal extraction but at the cost of throughput and energy usage.

The current milling strategy at Cosalá provides an estimated recovery rate between 80% to 82%, with potential for up to 90% through finer grinding. The company has already erected a third mill, awaiting necessary funding for its integration.

Funding Future Growth from Cash Flow

To finance the new mill and other developmental needs, Americas Gold and Silver is relying on its existing cash flow. By mirroring strategies used by successful mining entities like Karora Resources, the company aims to:

1. Utilize current operations to generate cash.
2. Reinvest earnings into infrastructure and drilling improvements.
3. Increase overall production and cash flow.
4. Continue this growth cycle.

As of September 30, the company held approximately US$63 million in cash, with total available liquidity at US$113 million. This financial management strategy aims to minimize reliance on outside funding.

Looking Ahead: Milestones and Projections

The accomplishments of this quarter set a foundation for future growth, emphasizing enriched ore and improved efficiency. Key future objectives will include:

• Further drilling to delineate accessible resources.
• Implementation of an optimized mine plan for Upper and Lower 120.
• Integration of the third mill to improve recovery rates.
• Access to the Upper San Rafael/EC120 areas in the latter half of 2027.
• Progress towards the targeted 3.2-3.6 million ounces annual output.

Silver pricing continues to play a vital role, as the Silver Institute predicts another annual deficit in 2026, creating a challenging yet promising market environment for producers like Cosalá.

This informative article is intended for your understanding and should not be taken as financial advice. Before making any investment decisions, it is advisable to conduct thorough research and seek professional guidance.