Americas Gold & Silver – A Turnaround Story With Significant Silver Exposure – A

• Americas Gold & Silver (TSX: USA) is implementing a turnaround strategy at its Galena Mine in Idaho and Mexican operations, led by CEO Paul Huet who previously worked at Klondex and Karora Resources
• The company’s largest shareholder is Eric Sprott (20% ownership) with institutional ownership reportedly increasing from 8% to nearly 60% in approximately 75 days
• Management plans operational changes including implementing long-hole mining methods, equipment upgrades, and increased mill utilization which may impact production levels
• Silver market currently shows supply deficits (reported at 200M oz annually) with industrial demand growth, while Eric Sprott suggests historical price patterns may be changing
• The stock currently trades at 0.4-0.5x NAV compared to peer multiples of 1.0-1.5x according to management, with production reported at 2.3M oz annually with targets to increase

Introduction to Americas Gold & Silver

Americas Gold & Silver Corporation is a silver-focused mining company with operations in North America. Led by Chairman and CEO Paul Huet, the company operates the historic Galena Mine in Idaho’s Silver Valley and maintains additional assets in Mexico.

“Americas Gold & Silver is a silver company in the US. For those who don’t know, we have an asset in Idaho, the Galena mine, and then we’ve got an asset in Mexico. And it’s a complete turnaround story, very similar to what we have done in the past with other companies like Klondex and Karora,” explained Huet during the interview.

The company’s largest shareholder is Eric Sprott, who owns approximately 20% of the company. The professional relationship between Huet and Sprott began approximately a decade ago and has included previous mining ventures.

“We met about 10 years ago at Klondex. And I was very thrilled to become chairman and CEO of Karora. Eric was the largest shareholder of Karora. As you know, we merged Karora with Westgold last year. It was a complete turnaround story after the Father’s Day discovery,” noted Huet, referencing their past collaboration.

Prior to becoming CEO of Americas Gold & Silver, Huet served as Sprott’s technical advisor for the Galena Mine for approximately one year, providing him with familiarity regarding the asset’s characteristics and potential operational adjustments.

Interview with Chairman & CEO, Paul Huet & Eric Sprott

The Turnaround Strategy for Galena Mine

The Galena Mine is located in Idaho’s Silver Valley, a district with over a century of production history and more than 150 million ounces of silver produced to date according to management. The company has identified several operational changes it plans to implement at the property.

Huet described the strategy for Galena as following methods he utilized at previous mining operations:

“All we have to do is repeat some of the same things we did at Karora that were successful. And that was an easy step: change the management team on site, bring in some new equipment, which just arrived yesterday,” explained Huet.

A notable operational change involves the mining method. Currently, Galena utilizes jackleg drilling methods that produce 80-100 ton blasts. Huet notes that neighboring operations employ long-hole mining methods that produce 10,000-ton stopes in a single blast, suggesting a potential efficiency difference.

“Our neighbors are doing 100% long-hole and they’re blasting 10,000 tons stopes,” said Huet. “When we start injecting this long-hole and we got two new drills coming, we’ve got the equipment that I talked about earlier. When we start long-holing, that changes our costs altogether.”

The company reports completing its first drop-raise in nearly a decade, marking a step toward this methodological shift. Another operational focus includes mill utilization. Currently, the mill operates three days per week, which differs from the continuous operations common in the mining industry.

“We got four shafts, two mills, using one mill three days a week. You talk about what’s a low-hanging fruit—get your mill running seven days a week like every other mill in the world,” Huet stated.

Institutional Support & Shareholder Confidence

Since Huet took over as CEO in December 2024, Americas Gold & Silver reports a change in its shareholder composition. According to management, institutional ownership increased from approximately 8% to nearly 60% in approximately 75-80 days.

“We were on day one about 8% institutionally held. Today, which is what 75 – 80 days later, we’re almost 60% institutionally held. What a shift in register,” Huet noted. “That means we’ve got a lot of institutions who believe in what we’re doing and support it and who were in desperate need of a good silver story.”

At Karora Resources (formerly RNC Minerals),…