EX-99.1 2 usas_ex991.htm CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS usas_ex991.htm

 EXHIBIT 99.1

 

 

AMERICAS GOLD AND SILVER CORPORATION

 

Condensed Interim Consolidated Financial Statements

 

For the three months ended March 31, 2025 and 2024

(In thousands of U.S. dollars, unless otherwise stated, unaudited)

 

  

 

 

Notice of No Auditor Review of Condensed Interim Consolidated Financial Statements

 

Under National Instrument 51-102, Part 4, subsection 4.3(3) (a), if an auditor has not performed a review of the interim financial statements; they must be accompanied by a notice indicating that the financial statements have not been reviewed by an auditor.  The accompanying unaudited condensed interim consolidated financial statements of the Company have been prepared by management and approved by the Audit Committee and Board of Directors of the Company.  The Company's independent auditor has not performed a review of these financial statements in accordance with the standards established by Chartered Professional Accountants of Canada for a review of interim financial statements by an entity's auditor.

 

 

 

 

Americas Gold and Silver Corporation

Condensed interim consolidated statements of financial position

(In thousands of U.S. dollars, unaudited)

 

 

 

 March 31,

 

 

 December 31,

 

As at

 

2025

 

 

2024

 

Assets

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

 $ 8,751

 

 

 $ 20,002

 

Trade and other receivables (Note 5)

 

 

10,289

 

 

 

 7,132

 

Inventories (Note 6)

 

 

 8,303

 

 

 

 10,704

 

Prepaid expenses

 

 

 2,483

 

 

 

 2,876

 

 

 

 

29,826

 

 

 

 40,714

 

Non-current assets

 

 

 

 

 

 

 

 

Restricted cash

 

 

 4,569

 

 

 

 4,527

 

Property, plant and equipment (Note 7)

 

 

 149,892

 

 

 

 147,399

 

Total assets

 

 $

184,287

 

 

 $ 192,640

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Trade and other payables

 

 $

31,560

 

 

 $ 37,333

 

Metals contract liability (Note 8)

 

 

 16,282

 

 

 

 13,707

 

Silver contract liability (Note 9)

 

 

 513

 

 

 

 -

 

Derivative instruments (Note 10)

 

 

 -

 

 

 

 709

 

Convertible debenture (Note 10)

 

 

 -

 

 

 

 10,849

 

Pre-payment facility (Note 11)

 

 

 2,500

 

 

 

 2,000

 

Credit facility (Note 12)

 

 

 3,875

 

 

 

 2,050

 

Royalty payable (Note 13)

 

 

 2,887

 

 

 

 2,762

 

 

 

 

57,617

 

 

 

 69,410

 

Non-current liabilities

 

 

 

 

 

 

 

 

Other long-term liabilities

 

 

 1,543

 

 

 

 1,658

 

Metals contract liability (Note 8)

 

 

 27,982

 

 

 

 27,161

 

Silver contract liability (Note 9)

 

 

 19,579

 

 

 

 18,193

 

Credit facility (Note 12)

 

 

 5,704

 

 

 

 7,440

 

Post-employment benefit obligations

 

 

 4,497

 

 

 

 3,892

 

Decommissioning provision

 

 

 11,946

 

 

 

 11,389

 

Deferred tax liabilities (Note 20)

 

 

 -

 

 

 

 48

 

Total liabilities

 

 $

128,868

 

 

 $ 139,191

 

 

 

 

 

 

 

 

 

 

Equity

 

 

 

 

 

 

 

 

Share capital (Note 14)

 

 

 594,051

 

 

 

 573,532

 

Equity reserve

 

 

 59,070

 

 

 

 56,521

 

Foreign currency translation reserve

 

 

 12,903

 

 

 

 14,426

 

Deficit

 

 

(610,605

 )

 

 

 (591,030 )

Total equity

 

 $

55,419

 

 

 $ 53,449

 

 

 

 

 

 

 

 

 

 

Total liabilities and equity

 

 $

184,287

 

 

 $ 192,640

 

 

Going concern (Note 2), Contingencies (Note 23)

 

The accompanying notes are an integral part of the condensed interim consolidated financial statements.

 

 
Page | 1

 

 

Americas Gold and Silver Corporation

Condensed interim consolidated statements of loss and comprehensive loss

(In thousands of U.S. dollars, except share and per share amounts, unaudited)

 

 

 

 

 For the three-month period ended

 

 

 

March 31,

 

 

March 31,

 

 

 

2025

 

 

2024Revised (1)

 

 

 

 

 

 

 

 

Revenue (Note 17)

 

 $ 23,547

 

 

 $ 20,852

 

 

 

 

 

 

 

 

 

 

Cost of sales (Note 18)

 

 

 (21,139 )

 

 

 (21,038 )

Depletion and amortization (Note 7)

 

 

 (5,509 )

 

 

 (5,524 )

Care and maintenance costs

 

 

 (135

 )

 

 

 (1,438 )

Corporate general and administrative (Note 19)

 

 

 (6,497 )

 

 

 (1,657 )

Exploration costs

 

 

 (1,280 )

 

 

 (1,016 )

Accretion on decommissioning provision

 

 

 (160 )

 

 

 (153 )

Interest and financing expense

 

 

 (474 )

 

 

 (689 )

Foreign exchange gain (loss)

 

 

 175

 

 

 

 (1,136 )

Gain on disposal of assets

 

 

 966

 

 

 

 -

 

Loss on metals contract liabilities (Note 8 and 9)

 

 

 (9,024 )

 

 

 (3,046 )

Other gain (loss) on derivatives (Note 10)

 

 

 709

 

 

 

 (1,071 )

Fair value loss on royalty payable (Note 13)

 

 

 (125 )

 

 

 (256 )

Loss before income taxes

 

 

(18,946

 )

 

 

 (16,172 )

Income tax recovery (Note 20)

 

 

 28

 

 

 

 15

 

Net loss

 

 $ (18,918 )

 

 $ (16,157 )

 

 

 

 

 

 

 

 

 

Attributable to:

 

 

 

 

 

 

 

 

Shareholders of the Company

 

 $

(18,918

 )

 

 $ (14,456 )

Non-controlling interests (Note 16)

 

 

 -

 

 

 

 (1,701 )

Net loss

 

 $

(18,918

 )

 

 $ (16,157 )

 

 

 

 

 

 

 

 

 

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

Items that will not be reclassified to net loss

 

 

 

 

 

 

 

 

Remeasurement of post-employment benefit obligations

 

 

 (657 )

 

 $ 1,756

 

Items that may be reclassified subsequently to net loss

 

 

 

 

 

 

 

 

Foreign currency translation reserve

 

 

 (1,523 )

 

 

 1,492

 

Other comprehensive income (loss)

 

 

 (2,180 )

 

 

 3,248

 

Comprehensive loss

 

 $

(21,098

 )

 

 $ (12,909 )

 

 

 

 

 

 

 

 

 

Attributable to:

 

 

 

 

 

 

 

 

Shareholders of the Company

 

 $

(21,098

 )

 

 $ (11,910 )

Non-controlling interests (Note 16)

 

 

 -

 

 

 

 (999 )

Comprehensive loss

 

 $

(21,098

 )

 

 $ (12,909 )

 

 

 

 

 

 

 

 

 

Loss per share attributable to shareholders of the Company

 

 

 

 

 

 

 

 

Basic and diluted

 

 

 (0.03 )

 

 

 (0.07 )

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted (Note 15)

 

 

 619,978,185

 

 

 

 221,915,654

 

 

(1)   Certain fiscal 2024 amounts were reclassified from revenue to cost of sales (see Note 18).

 

The accompanying notes are an integral part of the condensed interim consolidated financial statements.

 

 
Page | 2

 

 

Americas Gold and Silver Corporation

Condensed interim consolidated statements of changes in equity

For the three-month periods ended March 31, 2025 and 2024

(In thousands of U.S. dollars, except share amounts in thousands of units, unaudited)

 

 

 

 

 

 

 

 

 

 Foreign

 

 

 

 

 Attributable  to

 

 

 

 

 

 

 

 Share capital

 

 

 

 

 currency

 

 

 

 

 shareholders

 

 

 Non-

 

 

 

 

 

 Common 

 

 

 Equity

 

 

 translation

 

 

 

 

of the

 

 

 controlling

 

 

 Total

 

 

 

 Shares

 

 

 Amount

 

 

 reserve

 

 

  reserve

 

 

 Deficit

 

 

 Company

 

 

 interests

 

 

 equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at January 1, 2025

 

 

 594,450

 

 

 $ 573,532

 

 

 $ 56,521

 

 

 $ 14,426

 

 

 $ (591,030 )

 

 $ 53,449

 

 

 $ -

 

 

 $ 53,449

 

Net loss for the period

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 (18,918 )

 

 

 (18,918 )

 

 

 -

 

 

 

 (18,918 )

Other comprehensive loss for the period

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 (1,523 )

 

 

 (657 )

 

 

 (2,180 )

 

 

 -

 

 

 

 (2,180 )

Non-brokered private placements

 

 

 7,175

 

 

 

 2,996

 

 

 

 571

 

 

 

 -

 

 

 

 -

 

 

 

 3,567

 

 

 

 -

 

 

 

 3,567

 

Common shares issued

 

 

 2,906

 

 

 

 1,378

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 1,378

 

 

 

 -

 

 

 

 1,378

 

Conversion of convertible debenture

 

 

 32,308

 

 

 

 11,526

 

 

 

 (484 )

 

 

 -

 

 

 

 -

 

 

 

 11,042

 

 

 

 -

 

 

 

 11,042

 

Share-based payments

 

 

 -

 

 

 

 -

 

 

 

 3,396

 

 

 

 -

 

 

 

 -

 

 

 

 3,396

 

 

 

 -

 

 

 

 3,396

 

Exercise of options, warrants, and deferred share units

 

 

 12,254

 

 

 

 4,619

 

 

 

 (934 )

 

 

 -

 

 

 

 -

 

 

 

 3,685

 

 

 

 -

 

 

 

 3,685

 

Balance at March 31, 2025

 

 

 649,093

 

 

 $ 594,051

 

 

 $ 59,070

 

 

 $ 12,903

 

 

 $ (610,605 )

 

 $ 55,419

 

 

 $ -

 

 

 $ 55,419

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at January 1, 2024

 

 

 218,690

 

 

 $ 455,548

 

 

 $ 52,936

 

 

 $ 8,325

 

 

 $ (463,391 )

 

 $ 53,418

 

 

 $ 18,782

 

 

 $ 72,200

 

Net loss for the period

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 (14,456 )

 

 

 (14,456 )

 

 

 (1,701 )

 

 

 (16,157 )

Other comprehensive income for the period

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 1,492

 

 

 

 1,054

 

 

 

 2,546

 

 

 

 702

 

 

 

 3,248

 

Contribution from non-controlling interests

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 722

 

 

 

 722

 

Equity offering

 

 

 26,150

 

 

 

 3,212

 

 

 

 1,878

 

 

 

 -

 

 

 

 -

 

 

 

 5,090

 

 

 

 -

 

 

 

 5,090

 

Non-brokered private placements

 

 

 422

 

 

 

 100

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 100

 

 

 

 -

 

 

 

 100

 

Retraction of convertible debenture

 

 

 2,635

 

 

 

 684

 

 

 

 (21 )

 

 

 -

 

 

 

 -

 

 

 

 663

 

 

 

 -

 

 

 

 663

 

Share-based payments

 

 

 -

 

 

 

 -

 

 

 

 222

 

 

 

 -

 

 

 

 -

 

 

 

 222

 

 

 

 -

 

 

 

 222

 

Balance at March 31, 2024

 

 

 247,897

 

 

 $ 459,544

 

 

 $ 55,015

 

 

 $ 9,817

 

 

 $ (476,793 )

 

 $ 47,583

 

 

 $ 18,505

 

 

 $ 66,088

 

 

The accompanying notes are an integral part of the condensed interim consolidated financial statements.

 

 
Page | 3

 

 

Americas Gold and Silver Corporation

Condensed interim consolidated statements of cash flows

For the three-month periods ended March 31, 2025 and 2024

(In thousands of U.S. dollars, unaudited)

 

 

 

 March 31,

 

 

 March 31,

 

 

 

 2025

 

 

 2024

 

Cash flow generated from (used in)

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating activities

 

 

 

 

 

 

Net loss for the period

 

 $

(18,918

 )

 

 $ (16,157 )

Adjustments for the following items:

 

 

 

 

 

 

 

 

Depletion and amortization

 

 

 5,509

 

 

 

 5,524

 

Income tax recovery

 

 

 (28 )

 

 

 (15 )

Accretion and decommissioning costs

 

 

 160

 

 

 

 153

 

Share-based payments

 

 

 3,396

 

 

 

 222

 

Provision on other long-term liabilities

 

 

 17

 

 

 

 27

 

Interest and financing expense (income)

 

 

 150

 

 

 

 (120 )

Net charges on post-employment benefit obligations

 

 

 (52 )

 

 

 159

 

Inventory write-downs

 

 

 727

 

 

 

 818

 

Gain on disposal of assets

 

 

 (966 )

 

 

 -

 

Loss on metals contract liabilities

 

 

 9,024

 

 

 

 3,046

 

Other loss (gain) on derivatives

 

 

 (709 )

 

 

 1,071

 

Fair value loss on royalty payable

 

 

 125

 

 

 

 256

 

Changes in non-cash working capital items:

 

 

 

 

 

 

 

 

Trade and other receivables

 

 

  (3,157

 )

 

 

 1,321

 

Inventories

 

 

 1,674

 

 

 

 (553 )

Prepaid expenses

 

 

 393

 

 

 

 419

 

Trade and other payables

 

 

(4,376

 )

 

 

 4,000

 

Net cash generated from (used in) operating activities

 

 

 (7,031 )

 

 

 171

 

 

 

 

 

 

 

 

 

 

Investing activities

 

 

 

 

 

 

 

 

Expenditures on property, plant and equipment

 

 

 (7,558 )

 

 

 (4,813 )

Proceeds from disposal of assets

 

 

 997

 

 

 

 -

 

Net cash used in investing activities

 

 

 (6,561 )

 

 

 (4,813 )

 

 

 

 

 

 

 

 

 

Financing activities

 

 

 

 

 

 

 

 

Pre-payment facility

 

 

 500

 

 

 

 250

 

Lease payments

 

 

 (160 )

 

 

 (169 )

Equity offering, net

 

 

 -

 

 

 

 5,090

 

Non-brokered private placements

 

 

 3,567

 

 

 

 100

 

Metals contract liability, net

 

 

 (3,719 )

 

 

 36

 

Royalty agreement, net

 

 

 -

 

 

 

 (628 )

Proceeds from exercise of options and warrants

 

 

 3,685

 

 

 

 -

 

Contribution from non-controlling interests

 

 

 -

 

 

 

 722

 

Net cash generated from financing activities

 

 

 3,873

 

 

 

 5,401

 

 

 

 

 

 

 

 

 

 

Effect of foreign exchange rate changes on cash

 

 

 (1,532 )

 

 

 1,084

 

Increase in cash and cash equivalents

 

 

 (11,251 )

 

 

 1,843

 

Cash and cash equivalents, beginning of period

 

 

 20,002

 

 

 

 2,061

 

Cash and cash equivalents, end of period

 

 $ 8,751

 

 

 $ 3,904

 

 

 

 

 

 

 

 

 

 

Interest paid during the period

 

 $ 545

 

 

 $ 818

 

 

The accompanying notes are an integral part of the condensed interim consolidated financial statements.

 

 
Page | 4

 

 

Americas Gold and Silver Corporation

Notes to the condensed interim consolidated financial statements

For the three-month periods ended March 31, 2025 and 2024

(In thousands of U.S. dollars, unless otherwise stated, unaudited)

 

1. Corporate information

 

Americas Gold and Silver Corporation (the “Company") was incorporated under the Canada Business Corporations Act on May 12, 1998 and conducts mining exploration, development and production in the Americas. The address of the Company’s registered office is 145 King Street West, Suite 2870, Toronto, Ontario, Canada, M5H 1J8. The Company’s common shares are listed on the Toronto Stock Exchange under the symbol “USA” and on the New York Stock Exchange American under the symbol “USAS”.

 

The condensed interim consolidated financial statements of the Company for the three months ended March 31, 2025 were approved and authorized for issue by the Board of Directors of the Company on May 9, 2025.

 

2. Basis of presentation and going concern

 

These unaudited condensed interim consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”) and Interpretations of the International Financial Reporting Interpretations Committee (“IFRIC”) which the Canadian Accounting Standards Board has approved for incorporation into Part 1 of the Handbook of Chartered Professional Accountants of Canada applicable to the preparation of interim financial statements, including International Accounting Standard (“IAS”) 34, Interim Financial Reporting. These condensed interim consolidated financial statements do not include all the information and disclosures required in the annual consolidated financial statements and should be read in conjunction with the Company’s annual consolidated financial statements as at and for the year ended December 31, 2024. In particular, the Company’s significant accounting policies were summarized in Note 3 of the consolidated financial statements for the year ended December 31, 2024, and further updated in Note 3 of these financial statements, and have been consistently applied in the preparation of these condensed interim consolidated financial statements.

 

These unaudited condensed interim consolidated financial statements have been prepared on the basis of accounting principles applicable to a going concern, which assume that the Company will be able to realize its assets and discharge its liabilities in the normal course of operations as they come due for the foreseeable future. The Company had a working capital deficit of $27.8 million, including cash and cash equivalents of $8.8 million as at March 31, 2025. During the three-month period ended March 31, 2025, the Company reported a net loss of $18.9 million, including loss on metals contract liabilities of $9.0 million. At March 31, 2025, the Company does not have sufficient liquidity on hand to fund its operations for the next twelve months and will require further financing to meet its financial obligations and execute on its business plans at its mining operations.

 

Continuance as a going concern is dependent upon the Company’s ability to achieve profitable operations, obtain adequate equity or debt financing, or, alternatively, dispose of its non-core properties on an advantageous basis, among other things. Since 2020 to 2024, the Company was successful in raising funds through equity offerings, debt arrangements, convertible debentures, and registered shelf prospectuses. On December 19, 2024, the Company completed an acquisition of the remaining 40% non-controlling interests of the Company’s Galena Complex via an agreement dated October 9, 2024 with Mr. Eric Sprott, and closed a bought deal private placement of subscription receipts for gross proceeds of $50 million CAD or $35.1 million USD (see Note 14). As part of the agreement, the Company also closed additional non-brokered private placements for total gross proceeds of $6.9 million CAD or $5.0 million USD through total issuance of 16,650,000 of the Company’s common shares priced at approximately $0.42 CAD per share for bridge financing purposes. While it has been successful in the past in obtaining financing for its operations, there is no assurance that it will be able to obtain adequate financing in the future. The ability to raise additional financing, to achieve cash flow positive production at the Cosalá Operations and Galena Complex, allowing the Company to generate sufficient operating cash flows, are significant judgments in these unaudited condensed interim consolidated financial statements.

 

As a result, several material uncertainties cast substantial doubt upon the going concern assumption, including cash flow positive production at the Cosalá Operations and Galena Complex, and ability to raise additional funds as necessary to fund these operations and meet obligations as they come due.

 

 
Page | 5

 

 

Americas Gold and Silver Corporation

Notes to the condensed interim consolidated financial statements

For the three-month periods ended March 31, 2025 and 2024

(In thousands of U.S. dollars, unless otherwise stated, unaudited)

 

These unaudited condensed interim consolidated financial statements do not reflect any adjustments to carrying values of assets and liabilities and the reported expenses and condensed interim consolidated statement of financial position classification that would be necessary should the Company be unable to continue as a going concern. Such adjustments could be material.

 

3. Changes in accounting policies and recent accounting pronouncements

 

Effective January 1, 2025, the Company amended the application of its accounting policy for share-settled restricted share units where each share-settled restricted share unit is equivalent in value to the fair market value of a common share of the Company on the date of grant with the value of each award charged to compensation expense over the period of vesting with corresponding increase in equity reserve upon recognition (see Note 14).

 

Certain new accounting standards and interpretations have been published that are not mandatory for the current period and have not been early adopted. The following standards have been issued by the IASB:

 

 

-

Amendments to IFRS 9 and 7 – Classification and Measurement of Financial Instruments with mandatory application of the standard in annual reporting periods beginning on or after January 1, 2026.

 

-

IFRS 18 – Presentation and Disclosure in Financial Statements with mandatory application of the standard in annual reporting periods beginning on or after January 1, 2027.

 

These standards are being assessed for their impact on the Company in the current or future reporting periods.

 

4. Significant accounting judgments and estimates

 

The preparation of the condensed interim consolidated financial statements in conformity with IFRS requires management to make judgments and estimates that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates.

 

In preparing these condensed interim consolidated financial statements, the significant judgments made by management in applying the Company’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the Company’s annual consolidated financial statements as at and for the year ended December 31, 2024, in addition to the significant judgments mentioned in Note 2.

 

5. Trade and other receivables

 

 

 

 March 31,

 

 

 December 31,

 

 

 

 2025

 

 

 2024

 

 

 

 

 

 

 

 

Trade receivables

 

 $ 5,720

 

 

 $ 3,572

 

Value added taxes receivable

 

 

 423

 

 

 

 -

 

Other receivables

 

 

4,146

 

 

 

 3,560

 

 

 

 $

10,289

 

 

 $ 7,132

 

 

6. Inventories

 

 

 

 March 31,

 

 

 December 31,

 

 

 

 2025

 

 

 2024

 

 

 

 

 

 

 

 

Concentrates

 

 $ 1,565

 

 

 $ 2,971

 

Ore stockpiles

 

 

 651

 

 

 

 1,767

 

Spare parts and supplies

 

 

 6,087

 

 

 

 5,966

 

 

 

 $ 8,303

 

 

 $ 10,704

 

 

The amount of inventories recognized in cost of sales was $21.1 million during the three-month period ended March 31, 2025 (2024: $21.0 million), including concentrates, ore stockpiles write-down to net realizable value of $0.7 million (2024: $0.8 million).

 

 
Page | 6

 

 

Americas Gold and Silver Corporation

Notes to the condensed interim consolidated financial statements

For the three-month periods ended March 31, 2025 and 2024

(In thousands of U.S. dollars, unless otherwise stated, unaudited)

 

7. Property, plant and equipment

 

 

 

 

 

 

 

 

 

 

 

 Corporate

 

 

 

 

 

Mining

 

 

Non-producing

 

 

Plant and

 

 

Right-of-use

 

 

office

 

 

 

 

 

interests

 

 

properties

 

 

equipment

 

 

lease assets

 

 

equipment

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at January 1, 2024

 

 $ 226,819

 

 

 $ 12,469

 

 

 $ 128,228

 

 

 $ 11,685

 

 

 $ 237

 

 

 $ 379,438

 

Asset additions

 

 

 14,226

 

 

 

 -

 

 

 

 4,794

 

 

 

 789

 

 

 

 -

 

 

 

 19,809

 

Change in decommissioning provision

 

 

 (1,420 )

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 (1,420 )

Balance at December 31, 2024

 

 

 239,625

 

 

 

 12,469

 

 

 

 133,022

 

 

 

 12,474

 

 

 

 237

 

 

 

 397,827

 

Asset additions

 

 

 4,379

 

 

 

 -

 

 

 

 3,227

 

 

 

 -

 

 

 

 29

 

 

 

 7,635

 

Asset disposals

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 (31 )

 

 

 -

 

 

 

 (31 )

Change in decommissioning provision

 

 

 398

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 398

 

Balance at March 31, 2025

 

 $ 244,402

 

 

 $ 12,469

 

 

 $ 136,249

 

 

 $ 12,443

 

 

 $ 266

 

 

 $ 405,829

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated depreciationand depletion

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at January 1, 2024

 

 $ (132,474 )

 

 $ -

 

 

 $ (85,440 )

 

 $ (8,223 )

 

 $ (200 )

 

 $ (226,337 )

Depreciation/depletion for the year

 

 

 (14,172 )

 

 

 -

 

 

 

 (8,615 )

 

 

 (1,278 )

 

 

 (26 )

 

 

 (24,091 )

Balance at December 31, 2024

 

 

 (146,646 )

 

 

 -

 

 

 

 (94,055 )

 

 

 (9,501 )

 

 

 (226 )

 

 

 (250,428 )

Depreciation/depletion for the period

 

 

 (3,141 )

 

 

 -

 

 

 

 (2,008 )

 

 

 (355 )

 

 

 (5 )

 

 

 (5,509 )

Balance at March 31, 2025

 

 $ (149,787 )

 

 $ -

 

 

 $ (96,063 )

 

 $ (9,856 )

 

 $ (231 )

 

 $ (255,937 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Carrying value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

at December 31, 2024

 

 $ 92,979

 

 

 $ 12,469

 

 

 $ 38,967

 

 

 $ 2,973

 

 

 $ 11

 

 

 $ 147,399

 

at March 31, 2025

 

 $ 94,615

 

 

 $ 12,469

 

 

 $ 40,186

 

 

 $ 2,587

 

 

 $ 35

 

 

 $ 149,892

 

 

Non-current assets are tested for impairment or impairment reversals when events or changes in circumstances suggest that the carrying amount may not be recoverable. No impairment or impairment reversal were identified for the three-month period ended March 31, 2025 for each of the Company’s cash-generating unit, including non-producing properties and properties placed under care and maintenance.

 

The carrying amounts of mineral interests, plant and equipment, and right-of-use lease assets from the Relief Canyon Mine is approximately $16.1 million, $6.4 million, and $0.9 million, respectively, as at March 31, 2025 (December 31, 2024: $16.0 million, $7.0 million, and $1.2 million, respectively).

 

The Company completed the acquisition of the San Felipe property located in Sonora, Mexico on October 8, 2020. As at March 31, 2025, the carrying amount of this property was $12.5 million included in non-producing properties.

 

8. Precious metals delivery and purchase agreement

 

On April 3, 2019, the Company entered into a $25 million precious metals delivery and purchase agreement (the “Purchase Agreement”) with Sandstorm Gold Ltd. (“Sandstorm”). The Company initially recorded the advances received on precious metals delivery, net of transaction costs, as deferred revenue though subsequently amended its treatment and recognized the fixed deliveries of precious metals as a financial liability measured at fair value through profit or loss.

 

On March 21, 2024, the Company amended its Purchase Agreement with Sandstorm for the right to increase its advance payment by $3.25 million per calendar quarter or up to $6.5 million in aggregate during the first half of 2024 in order to satisfy the gold delivery obligations under the Purchase Agreement. The advances are to be repaid through balancing fixed deliveries of gold commencing at the end of the existing agreement within the 6-month period from November 2026 to April 2027. The first and second calendar quarter advances of $3.25 million per quarter were drawn in full in March and June 2024, respectively.

 

 
Page | 7

 

 

Americas Gold and Silver Corporation

Notes to the condensed interim consolidated financial statements

For the three-month periods ended March 31, 2025 and 2024

(In thousands of U.S. dollars, unless otherwise stated, unaudited)

 

On September 24, 2024, the Company amended its Purchase Agreement with Sandstorm for the right to increase its advance payment by approximately $4.0 million in aggregate during the third quarter of 2024 in order to satisfy the gold delivery obligations under the Purchase Agreement. The advance is to be repaid through balancing fixed deliveries of gold commencing at the end of the existing agreement within the 3-month period from May to July 2027. The advance of approximately $4.0 million was drawn in full in September 2024.

 

On December 19, 2024, the Company amended its Purchase Agreement with Sandstorm to deliver its remaining fixed ounces of gold over a quarterly fixed deliveries schedule with final delivery in December 2027. For each calendar quarter during the 36-month period ending in December 2027, the Company shall have the right for Sandstorm to subscribe common shares of the Company for proceeds up to a maximum of $1.9 million per calendar quarter to satisfy the gold delivery obligations under the Purchase Agreement.

 

The following table summarizes the continuity of the Company’s net metals contract liability during the period:

 

 

 

Three-month

 

 

Year

 

 

 

period ended

 

 

ended

 

 

 

March 31,

 

 

December 31,

 

 

 

2025

 

 

2024

 

 

 

 

 

 

 

 

Net metals contract liability, beginning of period

 

 $ 40,868

 

 

 $ 36,837

 

Advance increase (net of financing expense)

 

 

 -

 

 

 

 12,512

 

Delivery of metals purchased

 

 

 (3,719 )

 

 

 (18,564 )

Revaluation of metals contract liability

 

 

 7,115

 

 

 

 10,083

 

Net metals contract liability, end of period

 

 $ 44,264

 

 

 $ 40,868

 

 

 

 

 

 

 

 

 

 

Current portion

 

 $ 16,282

 

 

 $ 13,707

 

Non-current portion

 

 

 27,982

 

 

 

 27,161

 

 

 

 $ 44,264

 

 

 $ 40,868

 

 

9. Silver metals delivery agreement

 

On December 19, 2024, the Company entered into a silver metals delivery agreement with Mr. Eric Sprott for monthly purchases and deliveries of 18,500 ounces of silver for a period of 36 months starting in January 2026 (the “Silver Agreement”). The Company recognized the fixed deliveries of precious metals as a financial liability measured at fair value through profit or loss as the Company expects metal deliveries to Mr. Eric Sprott will be satisfied through external purchase of silver. A fair value of the metals contract liability of $19.8 million was determined at inception using forward commodity pricing curves at the end of the fiscal 2024. As part of the Silver Agreement, outstanding indebtedness of $1.4 million from Mr. Eric Sprott related to the original joint venture agreement (see Note 16) will be used to offset the metals contract liability commencing with the initial monthly delivery starting in January 2026. A $1.9 million loss to fair value on metals contract liability due to changes in forward commodity pricing curves was recorded during the three-month period ended March 31, 2025 (2024: nil).

 

10. Convertible debenture

 

On April 28, 2021, the Company issued a $12.5 million CAD convertible debenture (the “Convertible Debenture”) due April 28, 2024 with interest payable at 8% per annum secured by the Company’s interest in the Galena Complex and by shares of one of the Company’s Mexican subsidiaries.

 

The Convertible Debenture was: redeemable at the Company’s option to prepay the principal amount subject to payment of a redemption premium of 30% during the first year, 20% during the second year, and 10% during the third year prior to maturity (the “Redemption Option”); retractable at the holder’s option at a cumulative $0.3 million CAD per month starting in the second month from inception where the Company may settle the retraction amount through either cash or issuance of the Company’s common shares determined by dividing 95% of the 20 day volume weighted average price of the Company’s common shares (the “Retraction Option”); and convertible at the holder’s option into the Company’s common shares at a conversion price of $3.35 CAD (the “Conversion Option”).

 

 
Page | 8

 

 

Americas Gold and Silver Corporation

Notes to the condensed interim consolidated financial statements

For the three-month periods ended March 31, 2025 and 2024

(In thousands of U.S. dollars, unless otherwise stated, unaudited)

 

The Company has since amended the Convertible Debenture multiple times resultantly increasing the principal balance to total outstanding principal, net of retractions, of $16.8 million CAD or $11.7 million USD as at December 31, 2024, retractable at the holder’s option at a cumulative $1.75 million CAD per month, and convertible at the holder’s option at a conversion price of $0.52 CAD.

 

The Convertible Debenture was fully converted by the holders as of January 31, 2025 at the conversion price of $0.52 CAD resulting in the issuance of 32,307,692 of the Company’s common shares.

 

The Company recognized a gain of $0.7 million for the three-month period ended March 31, 2025 (2024: loss of $1.1 million) as a result of the change in the estimated fair value of the combined Redemption Option and Retraction Option.

 

11. Pre-payment facility

 

On December 12, 2022, the Company amended its existing unsecured offtake agreement with Ocean Partners USA, Inc. of lead concentrates produced from the Galena Complex to include a pre-payment facility of $3.0 million with an initial term of three years at an interest of U.S. SOFR rate plus 6.95% per annum (the “Facility”) to fund general working capital at the Galena Complex. Principal on the Facility is repaid through semi-monthly installments deductible from concentrate deliveries or paid in cash and can be redrawn on a revolving basis. The Facility shall automatically extend for a full calendar year if there is an outstanding payment balance within 12 months of the maturity of the Facility. The Facility was drawn in full in February 2025.

 

12. Credit facility

 

On August 14, 2024, the Company signed a credit and offtake agreement with Trafigura PTE Ltd. (“Trafigura”) for a secured credit facility of up to $15 million to complete initial development of the Zone 120 and El Cajón silver-copper project (“EC120”) (the “Credit Facility”). The Credit Facility is secured by share and asset pledges of all the Company’s material Mexican subsidiaries with the Company’s existing Convertible Debenture holders agreeing to subordinate existing security. The term of the Credit Facility is for a period of 36 months which includes a principal repayment grace period of 12 months, and bears interest of U.S. SOFR rate plus 6% per annum on cumulative drawings up to $12 million and 6.5% thereafter. The Credit Facility was drawn for $10.0 million in August 2024 and will be amortized in equal monthly installments of $0.6 million commencing after expiry of the grace period once the Credit Facility is drawn in full. The Company also entered into an offtake agreement with Trafigura for all the copper concentrates produced from EC120 where Trafigura will pay for the concentrates at the prevailing market prices for silver and copper, less customary treatment, refining and penalty charges.

 

13. Royalty payable

 

On April 12, 2023, the Company entered into a $4.0 million net smelter returns royalty agreement (the “Royalty Agreement”) with Sandstorm to be repaid through a 2.5% royalty on attributable production from the Galena Complex and Cosalá Operations. The royalty reduces to 0.2% on attributable production from the Galena Complex and Cosalá Operations after the aggregate repayment of $4.0 million and may be eliminated thereafter with a buyout payment of $1.9 million.

 

On inception, the Royalty Agreement was classified as a hybrid instrument of host financial liability with embedded derivatives from the reduced 0.2% royalty on attributable production and buyout payment. The Company elected at inception to designate the entire hybrid instrument at fair value through profit or loss with its initial fair value be representative of the $4.0 million in proceeds received. Subsequent measurement of fair value for the hybrid instrument was determined based on an income approach of expected future cash flows into a single current discounted amount. Key assumptions used in the fair value determination of the hybrid instrument as at December 31, 2023 include timing of repayment of the $4.0 million, which considers factors such as forecasted production and commodity prices in quantifying expected net smelter returns, feasibility of the reduced 0.2% royalty on attributable production versus the buyout payment, and applicable discount rates. The Company recognized a loss of $0.1 million for the three-month period ended March 31, 2025 (2024: $0.3 million) as a result of the change in the estimated fair value of the Royalty Agreement.

 

 
Page | 9

 

 

Americas Gold and Silver Corporation

Notes to the condensed interim consolidated financial statements

For the three-month periods ended March 31, 2025 and 2024

(In thousands of U.S. dollars, unless otherwise stated, unaudited)

 

14. Share capital

 

On March 27, 2024, the Company completed an equity offering of 26,000,000 units at a price of $0.30 CAD per unit for total gross proceeds of $5.8 million. Each unit consisted of one common share and one common share purchase warrant where each warrant is exercisable for one common share at an exercise price of $0.40 CAD for a period of three years starting March 27, 2024. As part of the equity offering, approximately $0.8 million in transaction costs were incurred and offset against share capital, and 150,000 common shares and 1,510,020 warrants for approximately $0.1 million and $0.1 million, respectively, were issued to the Company’s advisors and offset against share capital where each warrant is exercisable for one common share at an exercise price of $0.30 CAD for a period of two years starting March 27, 2024.

 

On December 19, 2024, the Company completed an acquisition of the remaining 40% non-controlling interests of the Company’s Galena Complex in exchange for issuance of 170,000,000 of the Company’s common shares, and $10 million in cash, plus monthly deliveries of 18,500 ounces of silver for a period of 36 months starting in January 2026 (see Note 9). The Company also completed a concurrent bought deal private placement of subscription receipts raising gross proceeds of $50 million CAD or $35.1 million USD at an issue price of $0.40 CAD per subscription receipt resulting from total issuance of 125,000,000 of the Company’s common shares.

 

During fiscal 2024, the Company closed non-brokered private placements for total gross proceeds of $9.4 million through total issuance of 28,112,615 of the Company’s common shares priced at approximately $0.47 CAD per share.

 

During the three-month period ended March 31, 2025, the Company closed non-brokered private placements for total gross proceeds of $3.6 million through total issuance of 7,174,558 of the Company’s common shares priced at approximately $0.71 CAD per share. As part of the non-brokered private placements, 2,610,000 warrants for approximately $0.6 million were issued and offset against share capital where each warrant is exercisable for one common share at an exercise price of $1.00 CAD for a period of three years starting March 31, 2025.

 

During the three-month period ended March 31, 2025, the Company settled $1.4 million of transaction-related payables through issuance of 2,906,504 of the Company’s common shares.

 

a. Authorized

 

Authorized share capital consists of an unlimited number of common and preferred shares.

 

 

 

 March 31,

 

 

 December 31,

 

 

 

 2025

 

 

 2024

 

 

 

 

 

 

 

 

Issued

 

 

 

 

 

 

649,092,939 (2024:594,450,243) common shares

 

 $ 594,051

 

 

 $ 573,532

 

Nil (2024: Nil) preferred shares

 

 

 -

 

 

 

 -

 

 

 

 $ 594,051

 

 

 $ 573,532

 

 

Each non-voting preferred share is convertible, at the holder’s option, without payment of any additional consideration by the holder thereof, initially on a one-to-one basis into common shares, subject to adjustment, and in accordance with the terms of the non-voting preferred shares.

 

b.   Stock option plan

 

The number of shares reserved for issuance under the Company’s stock option plan is limited to 10% of the number of common shares which are issued and outstanding on the date of a particular grant of options. Under the plan, the Board of Directors determines the term of a stock option to a maximum of 10 years, the period of time during which the options may vest and become exercisable as well as the option exercise price which shall not be less than the closing price of the Company’s share on the Toronto Stock Exchange on the date immediately preceding the date of grant. The Compensation Committee determines and makes recommendations to the Board of Directors as to the recipients of, and nature and size of, share-based compensation awards in compliance with applicable securities law, stock exchange and other regulatory requirements.

 

 
Page | 10

 

 

Americas Gold and Silver Corporation

Notes to the condensed interim consolidated financial statements

For the three-month periods ended March 31, 2025 and 2024

(In thousands of U.S. dollars, unless otherwise stated, unaudited)

 

A summary of changes in the Company’s outstanding stock options is presented below:

 

 

 

 

 

Three-month

 

 

 

 

Year

 

 

 

 

 

period ended

 

 

 

 

ended

 

 

 

 

 

March 31,

 

 

 

 

December 31,

 

 

 

 

 

2025

 

 

 

 

2024

 

 

 

 

 

Weighted

 

 

 

 

Weighted

 

 

 

 

 

average

 

 

 

 

average

 

 

 

 

 

exercise

 

 

 

 

exercise

 

 

 

Number

 

 

price

 

 

Number

 

 

price

 

 

 

(thousands)

 

 

CAD

 

 

(thousands)

 

 

CAD

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, beginning of period

 

 

 20,110

 

 

 $ 0.67

 

 

 

 17,370

 

 

 $ 1.30

 

Granted

 

 

 9,550

 

 

 

 0.55

 

 

 

 9,050

 

 

 

 0.53

 

Exercised

 

 

 (308 )

 

 

 0.34

 

 

 

 -

 

 

 

 -

 

Expired

 

 

 (3,760 )

 

 

 1.07

 

 

 

 (6,310 )

 

 

 2.22

 

Balance, end of period

 

 

 25,592

 

 

 $ 0.57

 

 

 

 20,110

 

 

 $ 0.67

 

 

The following table summarizes information on stock options outstanding and exercisable as at March 31, 2025:

 

 

 

Weighted

 

 

 

 

 

 

 

 

 

 

 

average

 

 

 

 

Weighted

 

 

 

 

Weighted

 

 

 

remaining

 

 

 

 

average

 

 

 

 

average

 

Exercise

 

contractual

 

 

 

 

exercise

 

 

 

 

exercise

 

price

 

life

 

 

Outstanding

 

 

price

 

 

Exercisable

 

 

price

 

CAD

 

(years)

 

 

(thousands)

 

 

CAD

 

 

(thousands)

 

 

CAD

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 $0.01 to $0.50

 

 

 1.73

 

 

 

 3,933

 

 

 $ 0.31

 

 

 

 2,625

 

 

 $ 0.31

 

 $0.51 to $1.00

 

 

 3.18

 

 

 

 21,659

 

 

 

 0.61

 

 

 

 6,775

 

 

 

 0.75

 

 

 

 

 

 

 

 

 25,592

 

 

 $ 0.57

 

 

 

 9,400

 

 

 $ 0.63

 

 

c. Share-based payments

 

The weighted average fair value at grant date of the Company’s stock options granted during the three-month period ended March 31, 2025 was $0.23 (2024: nil).

 

 
Page | 11

 

 

Americas Gold and Silver Corporation

Notes to the condensed interim consolidated financial statements

For the three-month periods ended March 31, 2025 and 2024

(In thousands of U.S. dollars, unless otherwise stated, unaudited)

 

The Company used the Black-Scholes Option Pricing Model to estimate fair value using the following weighted-average assumptions:

 

 

 

 Three-month

 

 

 Three-month

 

 

 

 period ended

 

 

 period ended

 

 

 

 March 31,

 

 

 March 31,

 

 

 

 2025

 

 

 2024

 

 

 

 

 

 

 

 

Expected stock price volatility (1)

 

 

 70 %

 

 

 -

 

Risk free interest rate

 

 

 2.94 %

 

 

 -

 

Expected life

 

5 years

 

 

 

 -

 

Expected forfeiture rate

 

 

 3.20 %

 

 

 -

 

Expected dividend yield

 

 

 0 %

 

 

 -

 

 

 

 

 

 

 

 

 

 

Share-based payments included in cost of sales

 

 $ -

 

 

 $ -

 

Share-based payments included in general and administrative expenses

 

 

 512

 

 

 

 156

 

Total share-based payments

 

 $ 512

 

 

 $ 156

 

 

(1)   Expected volatility has been based on historical volatility of the Company’s publicly traded shares.

    

d. Warrants

 

The warrants that are issued and outstanding as at March 31, 2025 are as follows:

 

Number of

 

 Exercise

 

 Issuance

 

 Expiry

 warrants

 

 price (CAD)

 

 date

 

 date

                                           17,600

 

                                          0.30

 

 Mar 2024

 

 Mar 27, 2026

                                     1,000,000

 

                                           0.55

 

 Jun 2023

 

 Jun 21, 2026

                                    19,616,500

 

                                          0.40

 

 Mar 2024

 

 Mar 27, 2027

                                    3,000,000

 

                                          0.42

 

 Aug 2024

 

 Aug 14, 2027

                                     2,610,000

 

                                           1.00

 

 Mar 2025

 

 Mar 31, 2028

                                  26,244,100

 

 

 

 

 

 

 

e. Restricted share units:

 

The Company has a Restricted Share Unit Plan under which eligible directors, officers and key employees of the Company are entitled to receive awards of restricted share units settled in either cash or common shares at the Company’s discretion. Each restricted share unit is equivalent in value to the fair market value of a common share of the Company on the date of grant with the value of each award charged to compensation expense over the period of vesting. The Company recognizes a corresponding increase in trade and other payables upon recognition of cash-settled restricted share units, and a corresponding increase in equity reserve upon recognition of share-settled restricted share units (see Note 3). For cash-settled restricted share units, the compensation expense and associated liability are adjusted at each reporting date to reflect changes in market value. As at March 31, 2025, 234,076 (December 31, 2024: 234,076) cash-settled restricted share units are outstanding at an aggregate value of $0.1 million (December 31, 2024: $0.1 million) which is included in trade and other payables in the consolidated statement of financial position. As at March 31, 2025, 20,400,000 (December 31, 2024: nil) share-settled restricted share units are outstanding which are included in equity reserve in the consolidated statement of financial position.

 

 
Page | 12

 

 

Americas Gold and Silver Corporation

Notes to the condensed interim consolidated financial statements

For the three-month periods ended March 31, 2025 and 2024

(In thousands of U.S. dollars, unless otherwise stated, unaudited)

 

f. Deferred Share Units:

 

The Company has a Deferred Share Unit Plan under which eligible directors of the Company receive awards of deferred share units on a quarterly basis as payment for 50% to 100% of their director fees earned. Deferred share units are settled in either cash or common shares at the Company’s discretion when the director leaves the Company’s Board of Directors. The Company recognizes a cost in director fees and a corresponding increase in equity reserve upon issuance of deferred share units. As at March 31, 2025, 7,806,408 (December 31, 2024: 3,562,917) deferred share units are issued and outstanding.

 

15.  Weighted average basic and diluted number of common shares outstanding

 

 

 

 Three-month

 

 

 Three-month

 

 

 

 period ended

 

 

 period ended

 

 

 

 March 31,

 

 

 March 31,

 

 

 

 2025

 

 

 2024

 

 

 

 

 

 

 

 

Basic weighted average number of shares

 

 

 619,978,185

 

 

 

 221,915,654

 

Effect of dilutive stock options and warrants

 

 

 -

 

 

 

 -

 

Diluted weighted average number of shares

 

 

 619,978,185

 

 

 

 221,915,654

 

 

Diluted weighted average number of common shares for the three-month period ended March 31, 2025 excludes nil anti-dilutive preferred shares (2024: nil), 25,291,666 anti-dilutive stock options (2024: 17,370,000) and 26,644,100 anti-dilutive warrants (2024: 31,760,020).

  

16.  Non-controlling interests

 

The Company entered into a joint venture agreement with Mr. Eric Sprott effective October 1, 2019 for 40% non-controlling interests of the Company’s Galena Complex with initial contribution of $15 million to fund capital improvements and operations.

 

The Company recognized non-controlling interests of $14.3 million equal to the proportionate non-controlling interests’ carrying amount of the Galena Complex at initial recognition classified as a separate component of equity. Subsequent contributions and proportionate share changes in equity are recognized to the carrying amount of the non-controlling interests.

 

On December 19, 2024, the Company completed an acquisition of the remaining 40% non-controlling interests of the Company’s Galena Complex. The $18.3 million proportionate non-controlling interests’ carrying amount prior to the change in ownership was derecognized from the consolidated financial statements upon completion of the acquisition.

 

 
Page | 13

 

 

Americas Gold and Silver Corporation

Notes to the condensed interim consolidated financial statements

For the three-month periods ended March 31, 2025 and 2024

(In thousands of U.S. dollars, unless otherwise stated, unaudited)

 

17.  Revenue

 

The following is a disaggregation of revenue categorized by commodities sold for the three-month periods ended March 31, 2025 and 2024:

 

 

 

 March 31,

 

 

 March 31,

 

 

 

 2025

 

 

2024Revised (1)

 

 

 

 

 

 

 

 

Silver

 

 

 

 

 

 

Sales revenue

 

 $ 12,623

 

 

 $ 13,588

 

Derivative pricing adjustments

 

 

 985

 

 

 

 539

 

 

 

 

 13,608

 

 

 

 14,127

 

Zinc

 

 

 

 

 

 

 

 

Sales revenue

 

 $ 9,501

 

 

 $ 8,661

 

Derivative pricing adjustments

 

 

 80

 

 

 

 89

 

 

 

 

 9,581

 

 

 

 8,750

 

Lead

 

 

 

 

 

 

 

 

Sales revenue

 

 $ 3,412

 

 

 $ 4,140

 

Derivative pricing adjustments

 

 

 (56 )

 

 

 118

 

 

 

 

 3,356

 

 

 

 4,258

 

Other by-products

 

 

 

 

 

 

 

 

Sales revenue

 

 $ 253

 

 

 $ 285

 

Derivative pricing adjustments

 

 

 53

 

 

 

 112

 

 

 

 

 306

 

 

 

 397

 

 

 

 

 

 

 

 

 

 

Total sales revenue

 

 $ 25,789

 

 

 $ 26,674

 

Total derivative pricing adjustments

 

 

 1,062

 

 

 

 858

 

Gross revenue

 

 $ 26,851

 

 

 $ 27,532

 

Proceeds before intended use

 

 

 2,321

 

 

 

 70

 

Treatment and selling costs

 

 

 (5,625 )

 

 

 (6,750 )

 

 

 $ 23,547

 

 

 $ 20,852

 

 

(1) Certain fiscal 2024 amounts were reclassified from revenue to cost of sales (see Note 18).

 

Derivative pricing adjustments represent subsequent variations in revenue recognized as an embedded derivative from contracts with customers and are accounted for as financial instruments (see Note 21).

 

 
Page | 14

 

 

Americas Gold and Silver Corporation

Notes to the condensed interim consolidated financial statements

For the three-month periods ended March 31, 2025 and 2024

(In thousands of U.S. dollars, unless otherwise stated, unaudited)

 

18. Cost of sales

 

Cost of sales is costs that directly relate to production at the mine operating segments and excludes depletion and amortization. The following are components of cost of sales for the three-month periods ended March 31, 2025 and 2024:

 

 

 

 March 31,

 

 

 March 31,

 

 

 

 2025

 

 

2024Revised (1)

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 $ 7,383

 

 

 $ 7,796

 

Raw materials and consumables

 

 

 7,090

 

 

 

 8,860

 

Utilities

 

 

 1,038

 

 

 

 1,168

 

Contract services - transportation costs

 

 

 1,068

 

 

 

 1,363

 

Other costs

 

 

 734

 

 

 

 1,516

 

Costs before intended use

 

 

 1,425

 

 

 

 70

 

Changes in inventories

 

 

 1,674

 

 

 

 (553 )

Inventory write-downs

 

 

 727

 

 

 

 818

 

 

 

 $ 21,139

 

 

 $ 21,038

 

 

(1)   Contract services related to transportation costs were reclassified from treatment and selling costs in revenue to cost of sales in fiscal 2024.

 

19. Corporate general and administrative expenses

 

Corporate general and administrative expenses are costs incurred at corporate and other segments that do not directly relate to production. The following are components of corporate general and administrative expenses for the three-month periods ended March 31, 2025 and 2024:

 

 

 

 March 31,

 

 

 March 31,

 

 

 

 2025

 

 

 2024

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

 $ 1,148

 

 

 $ 512

 

Directors’ fees

 

 

 1,881

 

 

 

 122

 

Share-based payments

 

 

 1,676

 

 

 

 156

 

Professional fees

 

 

 976

 

 

 

 368

 

Office and general

 

 

 816

 

 

 

 499

 

 

 

 $ 6,497

 

 

 $ 1,657

 

 

 
Page | 15

 

 

Americas Gold and Silver Corporation

Notes to the condensed interim consolidated financial statements

For the three-month periods ended March 31, 2025 and 2024

(In thousands of U.S. dollars, unless otherwise stated, unaudited)

 

20. Income taxes

 

Income tax expense is recognized based on management’s best estimate of the weighted average annual income tax rate expected for the full financial year. The estimated average annual rate used for the three-month period ended March 31, 2025 was 26.5% and for the year ended December 31, 2024 was 26.5%.

 

The Company’s net deferred tax liability relates to the Mexican mining royalty and arises principally from the following:

 

 

 

 March 31,

 

 

 December 31,

 

 

 

 2025

 

 

 2024

 

 

 

 

 

 

 

 

Property, plant and equipment

 

 $ 130

 

 

 $ 130

 

Other

 

 

 262

 

 

 

 313

 

Total deferred tax liabilities

 

 

 392

 

 

 

 443

 

Provisions and reserves

 

 

 (392 )

 

 

 (395 )

Net deferred tax liabilities

 

 $ -

 

 

 $ 48

 

  

The inventory write-downs and impairments described in Note 6 and 7 will result in certain non-capital losses and timing differences which have not been recorded given uncertainty of recoverability in future periods.

 

21. Financial risk management

 

a. Financial risk factors

 

The Company’s risk exposures and the impact on its financial instruments are summarized below:

 

(i) Credit Risk

 

Credit risk is the risk of loss associated with a counterparty’s inability to fulfill its payment obligations. The Company’s credit risk is primarily attributable to cash and cash equivalents and trade and other receivables. The credit risk on cash and cash equivalents is limited because the Company invests its cash in deposits with well-capitalized financial institutions with strong credit ratings in Canada and the United States. Under current concentrate offtake agreements, risk on trade receivables related to concentrate sales is managed by receiving payments for 85% to 100% of the estimated value of the concentrate within one month following the time of shipment.

 

As of March 31, 2025, the Company’s exposure to credit risk with respect to trade receivables amounts to $5.7 million (December 31, 2024: $3.6 million). The Company believes credit risk is not significant and there was no significant change to the Company’s allowance for expected credit losses as at March 31, 2025 and December 31, 2024.

 

(ii) Liquidity risk

 

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they arise. The Company’s approach to managing liquidity risk is to ensure that it will have sufficient liquidity to meet liabilities when due. The Company’s liquidity requirements are met through a variety of sources, including cash, cash generated from operations, credit facilities and debt and equity capital markets. The Company’s trade payables have contractual maturities of less than 30 days and are subject to normal trade terms.

 

 
Page | 16

 

 

Americas Gold and Silver Corporation

Notes to the condensed interim consolidated financial statements

For the three-month periods ended March 31, 2025 and 2024

(In thousands of U.S. dollars, unless otherwise stated, unaudited)

 

The following table presents the contractual maturities of the Company’s financial liabilities and provisions on an undiscounted basis:

 

 

 

March 31, 2025

 

 

 

 

 

Less than

 

 

 

 

 

 

Over 5

 

 

 

Total

 

 

1 year

 

 

2-3 years

 

 

4-5 years

 

 

years

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trade and other payables

 

 $

31,560

 

 

 $

31,560

 

 

 $ -

 

 

 $ -

 

 

 $ -

 

Pre-payment facility

 

 

 2,500

 

 

 

 2,500

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Credit facility

 

 

 10,000

 

 

 

 4,200

 

 

 

 5,800

 

 

 

 -

 

 

 

 -

 

Interest on credit facility

 

 

 1,089

 

 

 

 874

 

 

 

 215

 

 

 

 -

 

 

 

 -

 

Royalty payable

 

 

 3,026

 

 

 

 3,026

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Metals contract liability

 

 

 44,264

 

 

 

 16,282

 

 

 

 27,982

 

 

 

 -

 

 

 

 -

 

Silver contract liability

 

 

 20,092

 

 

 

 513

 

 

 

 14,403

 

 

 

 5,176

 

 

 

 -

 

Projected pension contributions

 

 

 8,343

 

 

 

 1,787

 

 

 

 2,592

 

 

 

 2,837

 

 

 

 1,127

 

Decommissioning provision

 

 

 19,715

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 19,715

 

Other long-term liabilities

 

 

 1,543

 

 

 

 -

 

 

 

 643

 

 

 

 255

 

 

 

 645

 

 

 

 $

142,132

 

 

 $

60,742

 

 

 $ 51,635

 

 

 $ 8,268

 

 

 $ 21,487

 

  

Minimum lease payments in respect to lease liabilities are included in trade and other payables and other long-term liabilities as follows:

 

 

 

March 31, 2025

 

 

 

 

 

 

Less than

 

 

 

 

 

 

 

 

Over 5

 

 

 

Total

 

 

1 year

 

 

2-3 years

 

 

4-5 years

 

 

years

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trade and other payables

 

 $ 615

 

 

 $ 615

 

 

 $ -

 

 

 $ -

 

 

 $ -

 

Other long-term liabilities

 

 

 898

 

 

 

 -

 

 

 

 643

 

 

 

 255

 

 

 

 -

 

 

 

 $ 1,513

 

 

 $ 615

 

 

 $ 643

 

 

 $ 255

 

 

 $ -

 

 

 
Page | 17

 

 

Americas Gold and Silver Corporation

Notes to the condensed interim consolidated financial statements

For the three-month periods ended March 31, 2025 and 2024

(In thousands of U.S. dollars, unless otherwise stated, unaudited)

 

The following table summarizes the continuity of the Company’s total lease liabilities discounted using an incremental borrowing rate ranging from 6% to11% applied during the period:

 

 

 

 Three-month

 

 

 Year

 

 

 

 period ended

 

 

 ended

 

 

 

 March 31,

 

 

 December 31,

 

 

 

 2025

 

 

 2024

 

 

 

 

 

 

 

 

Lease liabilities, beginning of period

 

 $ 1,655

 

 

 $ 1,436

 

Additions

 

 

 (11 )

 

 

 823

 

Lease principal payments

 

 

 (134 )

 

 

 (608 )

Lease interest payments

 

 

 (26 )

 

 

 (71 )

Accretion on lease liabilities

 

 

 29

 

 

 

 75

 

Lease liabilities, end of period

 

 $ 1,513

 

 

 $ 1,655

 

 

(iii) Market risk

 

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and price risk.

 

(1)Interest rate risk

 

The Company is subject to interest rate risk of the 3 months U.S. LIBOR rate plus 7.2% per annum from Cosalá Operations’ advance payments of concentrate, and the 3 month U.S. SOFR rate plus 6.95% per annum from the Facility. Interest rates of other financial instruments are fixed.

 

(2)Currency risk

 

As at March 31 2025, the Company is exposed to foreign currency risk through financial assets and liabilities denominated in CAD and MXN:

 

Financial instruments that may impact the Company’s net loss or other comprehensive loss due to currency fluctuations include CAD and MXN denominated assets and liabilities which are included in the following table:

 

 

 

As at March 31, 2025

 

 

 

 CAD

 

 

 MXN

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 $ 4,064

 

 

 $ 769

 

Trade and other receivables

 

 

 384

 

 

 

 3,792

 

Trade and other payables

 

 

 6,915

 

 

 

 10,457

 

 

As at March 31, 2025, the CAD/USD and MXN/USD exchange rates were 1.44 and 20.32, respectively. The sensitivity of the Company’s net loss and other comprehensive loss due to changes in the exchange rates for the three-month period ended March 31, 2025 is included in the following table:

 

 
Page | 18

 

 

Americas Gold and Silver Corporation

Notes to the condensed interim consolidated financial statements

For the three-month periods ended March 31, 2025 and 2024

(In thousands of U.S. dollars, unless otherwise stated, unaudited)

 

 

 

 CAD/USD

 

 

 MXN/USD

 

 

 

 Exchange rate

 

 

 Exchange rate

 

 

 

 +/- 10%

 

 

 +/- 10%

 

 

 

 

 

 

 

 

Approximate impact on:

 

 

 

 

 

 

Net loss

 

 $ 683

 

 

 $ 1,178

 

Other comprehensive loss

 

 

 30

 

 

 

 122

 

 

The Company may, from time to time, employ derivative financial instruments to manage exposure to fluctuations in foreign currency exchange rates.

 

As at March 31, 2025 and December 31, 2024, the Company does not have any non-hedge foreign exchange forward contracts outstanding. During the three-month periods ended March 31, 2025 and 2024, the Company  did not settle any non-hedge foreign exchange forward contracts

 

(3)   Price risk

 

Price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments in the market. As at March 31, 2025 the Company had certain amounts related to the sales of concentrates that have only been provisionally priced. A ±10% fluctuation in silver, zinc, lead, and gold prices would affect trade receivables by approximately $0.6 million (December 31, 2024: $0.4 million).

 

As at March 31, 2025 and December 31, 2024, the Company does not have any non-hedge commodity forward contracts outstanding. During the three-month periods ended March 31, 2025 and 2024, the Company did not settle any non-hedge commodity forward contracts.

 

Net amount of gain or loss on derivative instruments from non-hedge foreign exchange and commodity forward contracts recognized through profit or loss during the three-month period ended March 31, 2025 was nil (2024: nil). Total amount of gain or loss on derivative instruments including those recognized through profit or loss from the Company’s convertible debenture during the three-month period ended March 31, 2025 was a gain of $0.7 million (2024: loss of $1.1 million).

 

b. Fair values

 

The fair value of cash, restricted cash, trade and other receivables, and other financial assets and liabilities listed below approximate their carrying amounts mainly due to the short-term maturities of these instruments.

 

The methods and assumptions used in estimating the fair value of financial assets and liabilities are as follows:

 

 

·

Cash and cash equivalents: The fair value of cash equivalents is valued using quoted market prices in active markets.

 

·

Trade and other receivables: The fair value of trade receivables from silver sales contracts that contain provisional pricing terms is determined using the appropriate quoted forward price from the exchange that is the principal active market for the particular metal. As such, there is an embedded derivative feature within trade receivables.

 

·

Metals contract liabilities: Fixed and variable deliveries of precious metals are classified and measured as financial liabilities at fair value through profit or loss determined using forward commodity pricing curves at end of the reporting period.

 

·

Pre-payment and credit facilities, convertible debenture, and promissory notes: The principal portion of pre-payment and credit facilities, convertible debenture, and promissory notes are initially measured at fair value and subsequently carried at amortized cost.

 

·

Royalty payable: The financial liability is measured at fair value through profit or loss determined using discounted cash flows of expected future royalty payments at end of the reporting period.

 

 
Page | 19

 

 

Americas Gold and Silver Corporation

Notes to the condensed interim consolidated financial statements

For the three-month periods ended March 31, 2025 and 2024

(In thousands of U.S. dollars, unless otherwise stated, unaudited)

 

 

·

Embedded derivatives: Revenues from the sale of metals produced from silver sales contracts since the commencement of commercial production are based on provisional prices at the time of shipment. Variations between the price recorded at the time of sale and the actual final price received from the customer are caused by changes in market prices for metals sold and result in an embedded derivative in revenues and accounts receivable.

 

·

Derivatives: The Company uses derivative and non-derivative instruments to manage financial risks, including commodity, interest rate, and foreign exchange risks. The use of derivative contracts is governed by documented risk management policies and approved limits. The Company does not use derivatives for speculative purposes. The fair value of the Company’s derivative instruments is based on quoted market prices for similar instruments and at market prices at the valuation date.

 

The fair value hierarchy establishes three levels to classify the inputs to valuation techniques used to measure fair value:

 

 

·

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

 

·

Level 2 inputs are quoted prices in markets that are not active, quoted prices for similar assets or liabilities in active markets, inputs other than quoted prices that are observable for the asset or liability (for example, interest rate and yield curves observable at commonly quoted intervals, forward pricing curves used to value currency and commodity contracts and volatility measurements used to value option contracts), or inputs that are derived principally from or corroborated by observable market data or other means.

 

·

Level 3 inputs are unobservable (supported by little or no market activity).

 

 

 

 March 31,

 

 

 December 31,

 

 

 

 2025

 

 

 2024

 

 

 

 

 

 

 

 

Level 1

 

 

 

 

 

 

Cash and cash equivalents

 

 $ 8,751

 

 

 $ 20,002

 

Restricted cash

 

 

 4,569

 

 

 

 4,527

 

 

 

 

 

 

 

 

 

 

Level 2

 

 

 

 

 

 

 

 

Trade and other receivables

 

 

10,289

 

 

 

 7,132

 

Derivative instruments

 

 

 -

 

 

 

 709

 

Metals contract liability

 

 

 44,264

 

 

 

 40,868

 

Silver contract liability

 

 

 20,092

 

 

 

 18,193

 

 

 

 

 

 

 

 

 

 

Level 3

 

 

 

 

 

 

 

 

Royalty payable

 

 

 2,887

 

 

 

 2,762

 

 

 

 

 

 

 

 

 

 

Amortized cost

 

 

 

 

 

 

 

 

Pre-payment facility

 

 

 2,500

 

 

 

 2,000

 

Credit facility

 

 

 9,579

 

 

 

 9,490

 

Convertible debenture

 

 

 -

 

 

 

 10,849

 

 

 
Page | 20

 

 

Americas Gold and Silver Corporation

Notes to the condensed interim consolidated financial statements

For the three-month periods ended March 31, 2025 and 2024

(In thousands of U.S. dollars, unless otherwise stated, unaudited)

 

22. Segmented and geographic information, and major customers

 

a. Segmented information

 

The Company’s operations comprise of four reporting segments engaged in acquisition, exploration, development and exploration of mineral resource properties in Mexico and the United States. Management has determined the operating segments based on the reports reviewed by the chief operating decision makers that are used to make strategic decisions.

  

b. Geographic information

 

All revenues from sales of concentrates for the three-month periods ended March 31, 2025 and 2024 were earned in Mexico and the United States. The following segmented information is presented as at March 31, 2025 and December 31, 2024, and for the three-month periods ended March 31, 2025 and 2024. The Cosalá Operations segment operates in Mexico while the Galena Complex and Relief Canyon segments operate in the United States.

 

 

 

As at March 31, 2025

 

 

As at December 31, 2024

 

 

 

Cosalá Operations

 

 

Galena

Complex

 

 

Relief

Canyon

 

 

Corporate and Other

 

 

Total

 

 

Cosalá Operations

 

 

Galena

Complex

 

 

Relief

Canyon

 

 

Corporate and Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 $ 3,941

 

 

 $ 125

 

 

 $ 599

 

 

 $ 4,086

 

 

 $ 8,751

 

 

 $ 6,576

 

 

 $ 1,390

 

 

 $ 35

 

 

 $ 12,001

 

 

 $ 20,002

 

Trade and other receivables

 

 

 5,374

 

 

 

 4,156

 

 

 

375

 

 

 

 384

 

 

 

10,289

 

 

 

 5,485

 

 

 

 1,450

 

 

 

 -

 

 

 

 197

 

 

 

 7,132

 

Inventories

 

 

 5,651

 

 

 

 2,549

 

 

 

 103

 

 

 

 -

 

 

 

 8,303

 

 

 

 7,976

 

 

 

 2,625

 

 

 

 103

 

 

 

 -

 

 

 

 10,704

 

Prepaid expenses

 

 

 653

 

 

 

 487

 

 

 

 930

 

 

 

 413

 

 

 

 2,483

 

 

 

 745

 

 

 

 933

 

 

 

 755

 

 

 

 443

 

 

 

 2,876

 

Restricted cash

 

 

 135

 

 

 

 45

 

 

 

 4,331

 

 

 

 58

 

 

 

 4,569

 

 

 

 135

 

 

 

 53

 

 

 

 4,339

 

 

 

 -

 

 

 

 4,527

 

Property, plant and equipment

 

 

 49,244

 

 

 

 77,137

 

 

 

 22,880

 

 

 

 631

 

 

 

 149,892

 

 

 

 48,123

 

 

 

 74,935

 

 

 

 23,686

 

 

 

 655

 

 

 

 147,399

 

Total assets

 

 $ 64,998

 

 

 $ 84,499

 

 

 $

 29,218

 

 

 $ 5,572

 

 

 $

184,287

 

 

 $ 69,040

 

 

 $ 81,386

 

 

 $ 28,918

 

 

 $ 13,296

 

 

 $ 192,640

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trade and other payables

 

 $ 11,761

 

 

 $ 7,081

 

 

 $

3,644

 

 

 $ 9,074

 

 

 $

31,560

 

 

 $ 12,650

 

 

 $ 8,689

 

 

 $ 2,896

 

 

 $ 13,098

 

 

 $ 37,333

 

Derivative instruments

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 709

 

 

 

 709

 

Pre-payment facility

 

 

 -

 

 

 

 2,500

 

 

 

 -

 

 

 

 -

 

 

 

 2,500

 

 

 

 -

 

 

 

 2,000

 

 

 

 -

 

 

 

 -

 

 

 

 2,000

 

Credit facility

 

 

 9,579

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 9,579

 

 

 

 9,490

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 9,490

 

Other long-term liabilities

 

 

 -

 

 

 

 1,105

 

 

 

 -

 

 

 

 438

 

 

 

 1,543

 

 

 

 -

 

 

 

 1,170

 

 

 

 -

 

 

 

 488

 

 

 

 1,658

 

Metals contract liability

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 44,264

 

 

 

 44,264

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 40,868

 

 

 

 40,868

 

Silver contract liability

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 20,092

 

 

 

 20,092

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 18,193

 

 

 

 18,193

 

Convertible debenture

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 10,849

 

 

 

 10,849

 

Royalty payable

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 2,887

 

 

 

 2,887

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 2,762

 

 

 

 2,762

 

Post-employment benefit obligations

 

 

 -

 

 

 

 4,497

 

 

 

 -

 

 

 

 -

 

 

 

 4,497

 

 

 

 -

 

 

 

 3,892

 

 

 

 -

 

 

 

 -

 

 

 

 3,892

 

Decommissioning provision

 

 

 2,301

 

 

 

 5,607

 

 

 

 4,038

 

 

 

 -

 

 

 

 11,946

 

 

 

 2,129

 

 

 

 5,346

 

 

 

 3,914

 

 

 

 -

 

 

 

 11,389

 

Deferred tax liabilities

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 48

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 48

 

Total liabilities

 

 $ 23,641

 

 

 $ 20,790

 

 

 $

7,682

 

 

 $ 76,755

 

 

 $

128,868

 

 

 $ 24,317

 

 

 $ 21,097

 

 

 $ 6,810

 

 

 $ 86,967

 

 

 $ 139,191

 

 

 
Page | 21

 

 

Americas Gold and Silver Corporation

Notes to the condensed interim consolidated financial statements

For the three-month periods ended March 31, 2025 and 2024

(In thousands of U.S. dollars, unless otherwise stated, unaudited)

 

 

 

Three-month period ended March 31, 2025

 

 

Three-month period ended March 31, 2024

 

 

 

Cosalá Operations

 

 

Galena

Complex

 

 

Relief

Canyon

 

 

Corporate and Other

 

 

Total

 

 

Cosalá Operations

 

 

Galena

Complex

 

 

Relief

Canyon

 

 

Corporate and Other

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 $ 11,816

 

 

 $ 11,731

 

 

 $ -

 

 

 $ -

 

 

 $ 23,547

 

 

 $ 12,786

 

 

 $ 8,066

 

 

 $ -

 

 

 $ -

 

 

 $ 20,852

 

Cost of sales

 

 

 (10,991 )

 

 

 (10,148 )

 

 

 -

 

 

 

 -

 

 

 

 (21,139 )

 

 

 (12,316 )

 

 

 (8,722 )

 

 

 -

 

 

 

 -

 

 

 

 (21,038 )

Depletion and amortization

 

 

 (1,594 )

 

 

 (3,008 )

 

 

 (854 )

 

 

 (53 )

 

 

 (5,509 )

 

 

 (2,345 )

 

 

 (2,275 )

 

 

 (864 )

 

 

 (40 )

 

 

 (5,524 )

Care and maintenance costs

 

 

 -

 

 

 

 (114 )

 

 

   (21

 )

 

 

 -

 

 

 

 (135 )

 

 

 -

 

 

 

 (130 )

 

 

 (1,308 )

 

 

 -

 

 

 

 (1,438 )

Corporate general and administrative

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 (6,497 )

 

 

 (6,497 )

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 (1,657 )

 

 

 (1,657 )

Exploration costs

 

 

 (820 )

 

 

 (429 )

 

 

 (31 )

 

 

 -

 

 

 

 (1,280 )

 

 

 (124 )

 

 

 (870 )

 

 

 (22 )

 

 

 -

 

 

 

 (1,016 )

Accretion on decommissioning provision

 

 

 (55 )

 

 

 (60 )

 

 

 (45 )

 

 

 -

 

 

 

 (160 )

 

 

 (61 )

 

 

 (53 )

 

 

 (39 )

 

 

 -

 

 

 

 (153 )

Interest and financing income (expense)

 

 

 (70 )

 

 

 (112 )

 

 

 43

 

 

 

 (335 )

 

 

 (474 )

 

 

 (80 )

 

 

 (104 )

 

 

 14

 

 

 

 (519 )

 

 

 (689 )

Foreign exchange gain (loss)

 

 

 155

 

 

 

 -

 

 

 

 -

 

 

 

 20

 

 

 

 175

 

 

 

 (44 )

 

 

 -

 

 

 

 -

 

 

 

 (1,092 )

 

 

 (1,136 )

Gain on disposal of assets

 

 

 -

 

 

 

 -

 

 

 

 966

 

 

 

 -

 

 

 

 966

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

Loss on metals contract liabilities

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 (9,024 )

 

 

 (9,024 )

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 (3,046 )

 

 

 (3,046 )

Other gain (loss) on derivatives

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 709

 

 

 

 709

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 (1,071 )

 

 

 (1,071 )

Fair value loss on royalty payable

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 (125 )

 

 

 (125 )

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 (256 )

 

 

 (256 )

Income (loss) before income taxes

 

 

 (1,559 )

 

 

 (2,140 )

 

 

     58

 

 

 (15,305 )

 

 

(18,946

 )

 

 

 (2,184 )

 

 

 (4,088 )

 

 

 (2,219 )

 

 

 (7,681 )

 

 

 (16,172 )

Income tax recovery

 

 

 28

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 28

 

 

 

 15

 

 

 

 -

 

 

 

 -

 

 

 

 -

 

 

 

 15

 

Net income (loss) for the period

 

 $ (1,531 )

 

 $ (2,140 )

 

 $

     58

 

 $ (15,305 )

 

 $ (18,918 )

 

 $ (2,169 )

 

 $ (4,088 )

 

 $ (2,219 )

 

 $ (7,681 )

 

 $ (16,157 )

    

c. Major customers

 

For the three-month period ended March 31, 2025, the Company sold concentrates and finished goods to two major customers accounting for 50% of revenues from Cosalá Operations and 40% of revenues from Galena Complex (2024: two major customers accounting for 59% of revenues from Cosalá Operations and 41% of revenues from Galena Complex).

 

23. Contingencies

 

Due to the size, complexity and nature of the Company’s operations, various legal and tax matters arise in the ordinary course of business. The Company accrues for such items when a liability is both probable and the amount can be reasonably estimated.

 

In November 2010, the Company received a reassessment from the Mexican tax authorities related to its Mexican subsidiary, Minera Cosalá, for the year ended December 31, 2007. The tax authorities disallowed the deduction of transactions with certain suppliers for an amount of approximately $9.7 million (MXN 196.8 million), of which $4.2 million (MXN 84.4 million) would be applied against available tax losses. The Company appealed this reassessment and the Mexican tax authorities subsequently reversed $4.7 million (MXN 94.6 million) of their original reassessment. The remaining $5.0 million (MXN 102.2 million) consists of $4.2 million (MXN 84.4 million) related to transactions with certain suppliers and $0.9 million (MXN 17.8 million) of value added taxes thereon. The Company appealed the remaining reassessment with the Mexican Tax Court in December 2011. The Company may be required to post a bond of approximately $0.9 million (MXN 17.8 million) to secure the value added tax portion of the reassessment. The deductions of $4.2 million (MXN 84.4 million), if denied, would be offset by available tax losses. The Company accrued $1.0 million (MXN 19.9 million) in the consolidated financial statements as at December 31, 2018 as a probable obligation for the disallowance of value added taxes related to the Mexican tax reassessment. As at March 31, 2025, the accrued liability of the probable obligation from the ongoing appeal was $1.0 million (December 31, 2024: $1.0 million).

 

 
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