6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 or 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For the month of August 2020

Commission File Number 001-37982

AMERICAS GOLD AND SILVER CORPORATION

(Translation of registrant’s name into English)

145 King Street West, Suite 2870

Toronto, Ontario, Canada

M5H 1J8

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F

Form 20-F  ☐                Form 40-F  ☒

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	AMERICAS GOLD AND SILVER CORPORATION
Date: August 14, 2020	/s/ Peter McRae Peter McRae Chief Legal Officer and Senior Vice President Corporate Affairs

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INDEX TO EXHIBITS

99.1	Quarterly Financial Statements
99.2	Quarterly Management Discussion and Analysis
99.3	Certification of Interim Filings - CEO
99.4	Certification of Interim Filings - CFO

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EX-99.1

Exhibit 99.1

AMERICAS GOLD AND SILVER CORPORATION

Condensed Interim Consolidated Financial Statements

For the six months ended June 30, 2020 and 2019

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

Americas Gold and Silver Corporation

Condensed interim consolidated statements of financial position

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

As at	June 30, 2020			December 31, 2019
Assets
Current assets
Cash and cash equivalents	$	16,905		$	19,998
Trade and other receivables (Note 6)		2,297			5,269
Inventories (Note 7)		6,956			7,159
Prepaid expenses		2,288			1,914
Derivative instruments (Note 20)		—			585
		28,446			34,925
Non-current assets
Restricted cash		3,982			4,007
Inventories (Note 7)		981			1,339
Property, plant and equipment (Note 8)		224,352			190,389
Deferred tax assets (Note 19)		343			343
Total assets	$	258,104		$	231,003
Liabilities
Current liabilities
Trade and other payables	$	18,673		$	22,709
Deferred revenue (Note 9)		8,988			2,029
Derivative instruments (Note 20)		2,358			4,440
Glencore pre-payment facility (Note 11)		4,112			5,602
		34,131			34,780
Non-current liabilities
Other long-term liabilities		5,848			5,645
Deferred revenue (Note 9)		21,204			22,978
Convertible debenture (Note 10)		9,945			9,935
Government loan (Note 12)		4,499			—
Post-employment benefit obligations		13,808			10,137
Decommissioning provision		8,244			7,765
Deferred tax liabilities (Note 19)		321			750
Total liabilities		98,000			91,990
Equity
Share capital (Note 13)		318,163			284,673
Equity reserve		39,504			38,061
Foreign currency translation reserve		7,162			6,695
Deficit		(216,489	)		(203,138	)
Attributable to shareholders of the Company		148,340			126,291
Non-controlling interests (Note 15)		11,764			12,722
Total equity	$	160,104		$	139,013
Total liabilities and equity	$	258,104		$	231,003

Contingencies (Note 22), Subsequent events (Note 23)

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

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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						For the six-month period ended
	June 30,			June 30,			June 30,			June 30,
	2020			2019			2020			2019
Revenue (Note 16)	$	4,603		$	14,936		$	11,868		$	32,762
Cost of sales (Note 17)		(7,524	)		(14,730	)		(17,359	)		(27,200	)
Depletion and amortization (Note 8)		(1,738	)		(3,430	)		(4,053	)		(6,892	)
Care and maintenance costs		(1,652	)		(101	)		(2,597	)		(197	)
Corporate general and administrative (Note 18)		(1,798	)		(2,667	)		(3,706	)		(3,897	)
Transaction costs (Note 5)		—			(1,180	)		(23	)		(2,157	)
Exploration costs		(799	)		(364	)		(2,199	)		(966	)
Accretion on decommissioning provision		(37	)		(55	)		(96	)		(104	)
Interest and financing expense		(96	)		(979	)		(188	)		(1,680	)
Foreign exchange gain (loss)		(15	)		242			728			283
Gain on disposal of assets (Note 8)		65			—			65			—
Gain (loss) on derivative instruments (Note 10 and 20)		(1,948	)		447			2,050			(579	)
Gain (loss) on derivative warrant liability		—			(13	)		—			46
Loss before income taxes		(10,939	)		(7,894	)		(15,510	)		(10,581	)
Income tax recovery (expense) (Note 19)		223			(101	)		649			(227	)
Net loss	$	(10,716	)	$	(7,995	)	$	(14,861	)	$	(10,808	)
Attributable to:
Shareholders of the Company	$	(8,785	)	$	(7,995	)	$	(11,265	)	$	(10,808	)
Non-controlling interests		(1,931	)		—			(3,596	)		—
Net loss	$	(10,716	)	$	(7,995	)	$	(14,861	)	$	(10,808	)
Other comprehensive loss
Items that will not be reclassified to net loss
Remeasurement of post-employment benefit obligations	$	(334	)	$	—		$	(3,476	)	$	—
Items that may be reclassified subsequently to net loss
Foreign currency translation reserve		296			(223	)		467			(648	)
Other comprehensive loss		(38	)		(223	)		(3,009	)		(648	)
Comprehensive loss	$	(10,754	)	$	(8,218	)	$	(17,870	)	$	(11,456	)
Attributable to:
Shareholders of the Company	$	(8,690	)	$	(8,218	)	$	(12,884	)	$	(11,456	)
Non-controlling interests		(2,064	)		—			(4,986	)		—
Comprehensive loss	$	(10,754	)	$	(8,218	)	$	(17,870	)	$	(11,456	)
Loss per share attributable to shareholders of the Company
Basic and diluted		(0.09	)		(0.11	)		(0.12	)		(0.18	)
Weighted average number of common shares outstanding
Basic and diluted (Note 14)		101,010,995			74,017,916			94,415,191			59,450,433

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

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Americas Gold and Silver Corporation

Condensed interim consolidated statements of changes in equity

For the six-month periods ended June 30, 2020 and 2019

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

	Share capital										Equity reserve			Foreign currency translation reserve			Deficit			Attributable to shareholders of the Company			Non- controlling interests			Total equity
	Common				Preferred
	Shares		Amount		Shares			Amount
Balance at January 1, 2020		86,607	$	284,512		104		$	161		$	38,061		$	6,695		$	(203,138	)	$	126,291		$	12,722		$	139,013
Net loss for the period		—		—		—			—			—			—			(11,265	)		(11,265	)		(3,596	)		(14,861	)
Other comprehensive income (loss) for the period		—		—		—			—			—			467			(2,086	)		(1,619	)		(1,390	)		(3,009	)
Contribution from non-controlling interests		—		—		—			—			—			—			—			—			4,028			4,028
At-the-market offering		9,015		14,276		—			—			—			—			—			14,276			—			14,276
Bought deal public offering		10,270		19,182		—			—			—			—			—			19,182			—			19,182
Share-based payments		—		—		—			—			1,470			—			—			1,470			—			1,470
Conversion of preferred shares		104		161		(104	)		(161	)		—			—			—			—			—			—
Exercise of deferred share units		14		32		—			—			(27	)		—			—			5			—			5
Balance at June 30, 2020		106,010	$	318,163		—		$	—		$	39,504		$	7,162		$	(216,489	)	$	148,340		$	11,764		$	160,104
Balance at January 1, 2019		43,402	$	212,943		—		$	—		$	34,837		$	6,541		$	(170,125	)	$	84,196		$	—		$	84,196
Net loss for the period		—		—		—			—			—			—			(10,808	)		(10,808	)		—			(10,808	)
Other comprehensive loss for the period		—		—		—			—			—			(648	)		—			(648	)		—			(648	)
San Felipe property option transaction costs		452		600		—			—			—			—			—			600			—			600
Acquisition of Pershing Gold Corporation		24,849		38,604		3,678			5,714			1			—			—			44,319			—			44,319
Subscription agreement with Sandstorm Gold Ltd.		4,785		7,371		—			—			—			—			—			7,371			—			7,371
Conversion of convertible loans payable		2,764		4,284		—			—			—			—			—			4,284			—			4,284
Warrants issued on acquisition transaction costs		—		—		—			—			471			—			—			471			—			471
Warrants issued on financing transaction costs		—		—		—			—			149			—			—			149			—			149
Reclassification of derivative warrant liability		—		—		—			—			680			—			—			680			—			680
Share-based payments		—		—		—			—			1,325			—			—			1,325			—			1,325
Exercise of options, warrants, and deferred share units		2,280		3,929		—			—			(1,461	)		—			—			2,468			—			2,468
Balance at June 30, 2019		78,532	$	267,731		3,678		$	5,714		$	36,002		$	5,893		$	(180,933	)	$	134,407		$	—		$	134,407

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

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Americas Gold and Silver Corporation

Condensed interim consolidated statements of cash flows

For the six-month periods ended June 30, 2020 and 2019

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

	June 30,			June 30,
	2020			2019
Cash flow generated from (used in)
Operating activities
Net loss for the period	$	(14,861	)	$	(10,808	)
Adjustments for the following items:
Depletion and amortization		4,053			6,892
Income tax expense (recovery)		(649	)		227
Accretion and decommissioning costs		96			104
Share-based payments		1,367			1,389
Provision on other long-term liabilities		31			52
Deferred costs on convertible loans		—			745
Deferred costs on convertible debenture		10			198
Deferred revenue		5,000			—
Cash received from (payments to) bond on decommissioning costs		(3	)		485
Net charges on post-employment benefit obligations		195			176
Loss (gain) on derivative instruments		(1,497	)		902
Gain on derivative warranty liability		—			(46	)
	(6,258)			316
Changes in non-cash working capital items:
Trade and other receivables		2,972			997
Inventories		561			(603	)
Prepaid expenses		(374	)		(126	)
Trade and other payables		(3,924	)		(2,158	)
Net cash used in operating activities		(7,023	)		(1,574	)
Investing activities
Expenditures on property, plant and equipment		(6,951	)		(4,870	)
Development costs on Relief Canyon Mine		(28,357	)		(5,548	)
San Felipe property option payments		—			(750	)
Investment in convertible loan receivable		—			(800	)
Cash from acquisition of Pershing Gold Corporation		—			241
Net cash used in investing activities		(35,308	)		(11,727	)
Financing activities
Repayments to Glencore pre-payment facility		(1,490	)		(2,873	)
Lease payments		(1,752	)		(132	)
Financing from convertible debenture		—			10,000
Share issuance from subscription agreement		—			7,371
At-the-market offering		14,276			—
Bought deal public offering		19,182			—
Government loan		4,499			—
Proceeds from exercise of options and warrants		—			2,448
Contribution from non-controlling interests		4,028			—
Net cash generated from financing activities		38,743			16,814
Effect of foreign exchange rate changes on cash		495			(652	)
Increase (decrease) in cash and cash equivalents		(3,093	)		2,861
Cash and cash equivalents, beginning of period		19,998			3,464
Cash and cash equivalents, end of period	$	16,905		$	6,325
Cash and cash equivalents consist of:
Cash	$	16,905		$	6,325
Term deposits		—			—
	$ 16,905			$ 6,325
Interest paid during the period	$	877		$	624

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

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Americas Gold and Silver Corporation

Notes to the condensed interim consolidated financial statements

For the three-month and six-month periods ended June 30, 2020 and 2019

(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 and six months ended June 30, 2020 were approved and authorized for issue by the Board of Directors of the Company on August 14, 2020.

2. Basis of presentation

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, 2019. In particular, the Company’s significant accounting policies were summarized in Note 3 of the consolidated financial statements for the year ended December 31, 2019 and have been consistently applied in the preparation of these condensed interim consolidated financial statements. These unaudited condensed interim consolidated financial statements were prepared on a going concern basis.

3. Changes in accounting policies and recent accounting pronouncements

Certain new accounting standards and interpretations have been published that are not mandatory for the current period and have not been early adopted. These standards are not expected to have a material 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, 2019.

Despite the increase in gold and silver prices, there are uncertainties related to the timing and use of the Company’s cash resources because of the illegal blockade at the Cosalá Operations and ongoing ramp up at the Relief Canyon Mine. As a result, the Company does not currently generate sufficient short-term operating cash flow to fund capital expenditures to take its mines to commercial production and therefore, is required to access capital markets or enter into other transactions including financing with strategic shareholders from time to time. Failure to obtain adequate financing on satisfactory terms could have a material adverse effect to the Company’s results of operations or its financial condition. The Company has considered the above factors, in addition to its ability to further reduce expenditures if necessary, in assessing and concluding on its ability to continue as a going concern.

The Company has been closely monitoring developments in the COVID-19 outbreak declared as a global pandemic on March 11, 2020. Preventive measures to ensure the safety of the Company’s workforce and local communities have been implemented and there have been no outbreaks of COVID-19 at any of the Company’s operations to date. All of the Company’s mining and corporate operations continue to operate with the exception of mining operations in Cosalá halted by illegal blockade. The Company continues to manage and respond to COVID-19 to mitigate and minimize potential impacts of this global pandemic, in addition to other uncertainties, such as the price of commodities, gold recovery from Relief Canyon Mine, and illegal blockade at the Cosalá Operations.

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Americas Gold and Silver Corporation

Notes to the condensed interim consolidated financial statements

For the three-month and six-month periods ended June 30, 2020 and 2019

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

5. Acquisition of Pershing Gold Corporation

On April 3, 2019, the Company obtained control and completed the acquisition of Pershing Gold Corporation (“Pershing Gold”) via an agreement and plan of merger dated September 28, 2018. The merger was completed by the Company acquiring all the outstanding common and preferred shares of Pershing Gold through exchanging each outstanding Pershing Gold common share for 0.715 common shares of the Company and exchanging each outstanding Pershing Gold preferred share for 461.44 common or preferred shares of the Company. Outstanding Pershing Gold options and restricted share units were exchanged for the Company’s common share considerations and outstanding Pershing Gold warrants became exercisable for the Company’s common shares under the same exchange ratio.

The merger has been accounted for as a business combination with the Company identified as the acquirer for accounting purposes.

The consideration paid is calculated as follows:

Non-diluted Pershing Gold common shares outstanding, April 3, 2019		33,686,921
Implicit share exchange ratio		0.715
The Company’s common shares exchanged for Pershing Gold common shares		24,085,928
The Company’s common share price, April 3, 2019 (USD)		1.55
Total common share consideration	$	37,418
Consideration on the exchange of Pershing Gold for the Company’s equity instruments:
Preferred shares exchanged for common shares		383
Preferred shares exchanged for preferred shares		5,714
Restricted share units exchanged for common shares		803
Warrants exchanged for warrants		1
Total equity consideration		44,319
Pre-existing convertible loan from the Company to Pershing Gold		2,913
Total consideration	$	47,232

The purchase price allocation is as follows:

Cash and cash equivalents	$	241
Prepaid expenses		609
Restricted cash		3,787
Property, plant and equipment		49,272
Trade and other payables		(5,454	)
Decommission provision		(1,223	)
Net assets acquired	$	47,232

The acquisition of Pershing Gold by the Company was completed on April 3, 2019. As of the date of these consolidated financial statements, the determination of fair value of assets and liabilities acquired has been finalized.

6. Trade and other receivables

	June 30, 2020		December 31, 2019
Trade receivables	$	1,359	$	4,560
Value added taxes receivable		589		636
Other receivables		349		73
	$	2,297	$	5,269

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Americas Gold and Silver Corporation

Notes to the condensed interim consolidated financial statements

For the three-month and six-month periods ended June 30, 2020 and 2019

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

7. Inventories

	June 30, 2020		December 31, 2019
Concentrates	$	1,066	$	1,292
Current ore stockpiles		607		497
Spare parts and supplies		5,283		5,370
	6,956		7,159
Long-term ore stockpiles		981		1,339
	$	7,937	$	8,498

The amount of inventories recognized as an expense was $7.5 million during the three-month period ended June 30, 2020 (2019: $14.7 million) and $17.4 million during six-month period ended June 30, 2020 (2019: $27.2 million). The concentrates and ore stockpiles, and spare parts and supplies write-down to net realizable value included in cost of sales was $0.2 million and nil, respectively, during the three-month period ended June 30, 2020 (2019: $0.2 million and nil, respectively) and $0.9 million and nil, respectively, during the six-month period ended June 30, 2020 (2019: $0.6 million and nil, respectively).

8. Property, plant and equipment

	Mining interests		Non-producing properties		Plant and equipment			Right-of-use lease assets		Corporate office equipment		Total
Cost
Balance at January 1, 2019	$	113,428	$	—	$	54,542		$	—	$	95	$	168,065
Acquisition of Pershing Gold		—		34,335		14,927			—		10		49,272
Asset additions		7,600		11,236		19,936			7,358		17		46,147
Change in decommissioning provision		93		2,510		—			—		—		2,603
Reclassification		—		9,263		(343	)		343		—		9,263
Balance at December 31, 2019		121,121		57,344		89,062			7,701		122		275,350
Asset additions		3,941		22,384		9,059			2,140		108		37,632
Change in decommissioning provision		—		384		—			—		—		384
Balance at June 30, 2020	$	125,062	$	80,112	$	98,121		$	9,841	$	230	$	313,366
Accumulated depreciation and depletion
Balance at January 1, 2019	$	41,610	$	—	$	29,964		$	—	$	49	$	71,623
Depreciation/depletion for the period		8,605		—		4,415			305		13		13,338
Balance at December 31, 2019		50,215		—		34,379			305		62		84,961
Depreciation/depletion for the period		2,189		—		1,716			140		8		4,053
Balance at June 30, 2020	$	52,404	$	—	$	36,095		$	445	$	70	$	89,014
Carrying value
at December 31, 2019	$	70,906	$	57,344	$	54,683		$	7,396	$	60	$	190,389
at June 30, 2020	$	72,658	$	80,112	$	62,026		$	9,396	$	160	$	224,352

As at January 1, 2019, the Company recognized $0.9 million of right-of-use assets from leases upon adoption of IFRS 16 using the modified retrospective approach, where $0.1 million were from the Cosalá Operations, $0.3 million were from the Galena Complex, and $0.5 million were from Corporate and Other. The associated lease liabilities were classified into trade and other payables and other long-term liabilities in the consolidated statement of financial position.

On March 2, 2017, the Company entered into an option acquisition agreement with Impulsora Minera Santacruz S.A. de C.V., a wholly-owned subsidiary of Santacruz Silver Mining Ltd. (“Santacruz”), to acquire an existing option with Minera Hochschild Mexico S.A. de C.V. (“Hochschild”) for the right to acquire a 100% interest of the San Felipe property located in Sonora, Mexico. As at December 31, 2018, the property purchase option was reclassified as an asset held-for-sale as its carrying amount will be recovered principally through sale. A write-down of $3.7 million was recorded for the year-ended December 31, 2018 to measure the asset held-for-sale at the lower of its carrying amount of $10.6 million and fair value less estimated costs to sell of $6.9 million. The Company made three of the

P a g e   7

Americas Gold and Silver Corporation

Notes to the condensed interim consolidated financial statements

For the three-month and six-month periods ended June 30, 2020 and 2019

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

remaining eight contractual quarterly option payments of $0.75 million to Hochschild during the year ended December 31, 2019. As at December 31, 2019, the property purchase option was reclassified to property, plant and equipment as its carrying amount of $9.3 million will be recovered principally through continuing use. On July 9, 2020, the Company has agreed with Hochschild to settle its remaining contractual option payments through issuance of the Company’s common shares to acquire the 100% interest of the San Felipe property (see Note 23).

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 six-month period ended June 30, 2020.

The Company recognized a gain of approximately $0.1 million in the second quarter of 2020 related to proceeds received through the sale of plant and equipment.

The amount of borrowing costs capitalized as property, plant and equipment was $0.7 million during the three-month period ended June 30, 2020 (2019: $0.1 million) and $1.4 million during the six-month period ended June 30, 2020 (2019: $0.1 million).

The carrying amount of property and equipment from the developing Relief Canyon Mine is approximately $37.4 million as at June 30, 2020.

9. Deferred revenue

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”) for the construction and development of Pershing Gold’s Relief Canyon Mine. The Purchase Agreement consists of a combination of fixed and variable deliveries from the Relief Canyon Mine. The Purchase Agreement has a repurchase option for the Company exercisable at any time to reduce the variable deliveries to Sandstorm from 4% to 2% by delivering 4,000 ounces of gold plus additional ounces of gold compounded annually at 10%. On initial recognition and as at June 30, 2020, the fair value of the repurchase option was nil.

On January 16, 2020, the Company entered into a $5 million precious metals delivery and purchase agreement with Macquarie Bank Ltd. (“Macquarie”) for working capital purposes at the Relief Canyon Mine. The $5 million advance was amended to be settled through monthly fixed cash payments totaling $7.2 million payable over a 6 month period commencing October 2020 (see Note 23).

The Company recorded the advances received on precious metals delivery, net of transaction costs, as deferred revenue and will recognize the amounts in revenue as performance obligations to metals delivery are satisfied over the term of the metals delivery and purchase agreements. The advances received on precious metals delivery is expected to reduce to nil through deliveries of the Company’s own production to Sandstorm and Macquarie. The Company determined the amortization of deferred revenue on a per unit basis to be equal to the expected total deliveries of gold ounces over the term of the precious metals delivery and purchase agreements.

Interest expense of $0.5 million was capitalized as borrowing costs to property, plant and equipment during the three-month period ended June 30, 2020 (2019: nil) and $1.1 million (2019: nil) during the six-month period ended June 30, 2020 in connection with the accretion of a significant financing component determined from the advances received on precious metals delivery.

The following are components of deferred revenue as at June 30, 2020:

Advances received	$	30,000
Recognition of revenue		(688	)
Deferred revenue		29,312
Deferred transaction costs		(447	)
Accretion on significant financing component		1,327
Net deferred revenue		30,192
Less: current portion		(8,988	)
Non-current portion	$	21,204

P a g e   8

Americas Gold and Silver Corporation

Notes to the condensed interim consolidated financial statements

For the three-month and six-month periods ended June 30, 2020 and 2019

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

10. Convertible debenture

On April 3, 2019, the Company issued a $10 million convertible debenture (the “Convertible Debenture”) to Sandstorm due April 3, 2023 with interest payable at 6% per annum and repayable at the Company’s option prior to maturity. The funds available under the Convertible Debenture included the principal amount of the $3 million unsecured, promissory note previously issued to Sandstorm by the Company.

The Convertible Debenture may be converted into common shares of the Company at Sandstorm’s option at a conversion price of $2.14 and may be prepaid at the Company’s option at any time prior to the maturity date. The Company recorded a net derivative liability of nil on initial recognition based on the estimated fair value of the conversion and prepayment option and recognized a loss of $1.9 million in the consolidated statements of loss and comprehensive loss for the three-month period ended June 30, 2020 (2019: loss of $1.6 million) and a gain of $2.1 million during the six-month period ended June 30, 2020 (2019: loss of $1.6 million) as a result of the change in the estimated fair value of the conversion and prepayment option.

Interest expense of $0.2 million was capitalized as borrowing costs to property, plant and equipment for the three-month period ended June 30, 2020 (2019: $0.1 million), and $0.3 million (2019: $0.1 million) during the six-month period ended June 30, 2020 in connection with the Convertible Debenture.

The initial fair value of the principal portion of the Convertible Debenture was determined using a market interest rate for an equivalent non-convertible instrument at the issue date. The principal portion is subsequently recognized on an amortized cost basis until extinguished on conversion or maturity. The remainder of the proceeds are allocated to the conversion option.

11. Glencore pre-payment facility

On January 29, 2017, the Company entered into a pre-payment facility for $15.0 million with Metagri S.A. de C.V., a subsidiary of Glencore PLC (“Glencore”), to fund a portion of the development costs for the San Rafael project within the Cosalá district of Sinaloa, Mexico (the “Pre-Payment Facility”). The Pre-Payment Facility was drawn in full on March 30, 2017, has a term of four years at an interest of U.S. LIBOR rate plus 5% per annum, and is secured by a promissory note in the amount of up to $15.0 million issued by the Company, a corporate guarantee in favour of Glencore, and limited asset level security on the San Rafael project. The Company has also entered into four-year offtake agreements with Glencore for the zinc and lead concentrates produced from the San Rafael Mine where Glencore will pay for the concentrates at the prevailing market prices for silver, zinc and lead, less customary treatment, refining and penalty charges. Repayment of principal on the Pre-Payment Facility began in January 2018 as an additional tonnage charge on shipments of concentrate where $3.9 million and $5.5 million were paid during the year ended December 31, 2018, and 2019, respectively. The Company paid $1.5 million during the six-month period ended June 30, 2020.

12. Government loan

On May 11, 2020, the Company received approximately $4.5 million in loan through the Paycheck Protection Program from the U.S. CARES Act (the “Government Loan”) to assist with payroll and other expenses at the Galena Complex during the COVID-19 pandemic. The Government Loan has a term of two years at an interest rate of 1% per annum and may be forgiven if proceeds are used for payroll and other specifically defined expenses and employee and compensation levels are maintained. The Government Loan will be recognized as a reduction of related payroll and other expenses incurred once forgiveness is reasonably assured.

13. Share capital

On April 3, 2019, the Company entered into a subscription agreement with Sandstorm to issue $10 million CAD of the Company’s common shares based on the 5-day volume weighted average price at approximately $2.09 CAD per share, resulting in the issuance of 4,784,689 of the Company’s common shares.

On July 26, 2019, the Company closed a non-brokered private placement with Mr. Eric Sprott for gross proceeds of $10 million through issuance of 3,955,454 of the Company’s common shares priced at approximately $3.30 CAD per share. As part of the non-brokered private placement, $0.4 million in transaction costs was incurred and 118,664 warrants were issued to the Company’s advisor where each warrant is exercisable for one common share at an exercise price of $3.37 CAD for a period of three years starting July 25, 2019.

P a g e   9

Americas Gold and Silver Corporation

Notes to the condensed interim consolidated financial statements

For the three-month and six-month periods ended June 30, 2020 and 2019

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

On April 16, 2020, the Company closed an at-the-market offering agreement (the “February 2020 ATM Agreement”) for gross proceeds of $15.0 million through issuance of 9,014,953 common shares. As part of the February 2020 ATM Agreement, approximately $0.7 million in transaction costs were incurred and offset against share capital.

On May 13, 2020, the Company completed a bought deal public offering of 10,269,500 common shares at a price of $2.80 CAD per common share for aggregate gross proceeds of approximately $28.75 million CAD, which included the exercise by the underwriters, in full, of the over-allotment option granted by the Company to the underwriters. As part of the bought deal public offering, approximately $1.2 million in transaction costs were incurred and offset against share capital.

a. Authorized

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

	June 30, 2020		December 31, 2019
Issued
106,010,335 (2019: 86,607,305) common shares	$	318,163	$	284,512
Nil (2019: 103,824) preferred shares		—		161
	$	318,163	$	284,673

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.

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

				June 30, 2020					December 31, 2019
	Number			Weighted average exercise price		Number			Weighted average exercise price
	(thousands)			CAD		(thousands)			CAD
Balance, beginning of period		8,021		$	3.29		3,160		$	3.77
Granted		120			3.10		5,915			2.86
Exercised		—			—		(1,014	)		2.33
Expired		(839	)		3.86		(40	)		2.39
Balance, end of period		7,302		$	3.22		8,021		$	3.29

P a g e   10

Americas Gold and Silver Corporation

Notes to the condensed interim consolidated financial statements

For the three-month and six-month periods ended June 30, 2020 and 2019

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

The following table summarizes information on stock options outstanding and exercisable as at June 30, 2020:

Exercise price	Weighted average remaining contractual life		Outstanding		Weighted average exercise price		Exercisable		Weighted average exercise price
CAD	(years)		(thousands)		CAD		(thousands)		CAD
$2.00 to $3.00		1.77		3,292	$	2.39		2,152	$	2.39
$3.01 to $4.00		4.26		2,615		3.53		912		3.55
$4.01 to $5.00		0.52		1,355		4.58		1,355		4.58
$5.01 to $6.00		0.57		40		5.55		40		5.55
			7,302		$ 3.22		4,459		$ 3.32

c. Share-based payments

The weighted average fair value at grant date of the Company’s stock options granted during the six-month period ended June 30, 2020 was $0.93 per option (2019: $0.72).

The Company uses the Black-Scholes Option Pricing Model to estimate fair value using the following weighted average assumptions for the three-month and six-month periods ended June 30, 2020 and 2019:

	Three-month period ended June 30, 2020			Three-month period ended June 30, 2019			Six-month period ended June 30, 2020			Six-month period ended June 30, 2019
Expected stock price volatility (1)		61	%		58	%		61	%		58	%
Risk free interest rate		0.27	%		1.60	%		0.27	%		1.60	%
Expected life		3 years			3 years			3 years			3 years
Expected forfeiture rate		2.12	%		2.72	%		2.12	%		2.72	%
Expected dividend yield		0	%		0	%		0	%		0	%
Share-based payments included in cost of sales	$	—		$	—		$	—		$	—
Share-based payments included in general and administrative expenses		543			1,190			1,242			1,289
Total share-based payments	$	543		$	1,190		$	1,242		$	1,289

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

P a g e   11

Americas Gold and Silver Corporation

Notes to the condensed interim consolidated financial statements

For the three-month and six-month periods ended June 30, 2020 and 2019

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

d. Warrants

The warrants that are issued and outstanding as at June 30, 2020 are as follows:

Number of warrants	Exercise price (CAD)		Issuance date		Expiry date
1,447,426		4.68		Jun 2016		Jun 9, 2021
799,065		4.68		Jul 2016		Jun 14, 2021
1,074,999		3.12		Oct 2018		Oct 1, 2023
15,889		11.32		Apr 2019		May 6, 2022
389,771		2.40		May 2019		May 13, 2022
1,241,200		2.40		May 2019		May 29, 2022
118,664		3.37		Jul 2019		Jul 25, 2022
177,506		4.45		Oct 2019		Oct 30, 2022
5,264,520

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. 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 cash settled award charged to compensation expense over the period of vesting. At each reporting date, the compensation expense and associated liability (which is included in trade and other long-term liabilities in the consolidated statement of financial position) are adjusted to reflect changes in market value. As at June 30, 2020, 276,762 (December 31, 2019: 89,196) restricted share units are outstanding at an aggregate value of $0.7 million (December 31, 2019: $0.3 million).

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 20% 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 June 30, 2020, 435,116 (December 31, 2019: 323,333) deferred share units are issued and outstanding.

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

	Three-month period ended June 30, 2020		Three-month period ended June 30, 2019		Six-month period ended June 30, 2020		Six-month period ended June 30, 2019
Basic weighted average number of shares		101,010,995		74,017,916		94,415,191		59,450,433
Effect of dilutive stock options and warrants		—		—		—		—
Diluted weighted average number of shares		101,010,995		74,017,916		94,415,191		59,450,433

Diluted weighted average number of common shares for the three-month and six-month periods ended June 30, 2020 excludes nil anti-dilutive preferred shares (2019: 3,678,135), 7,302,290 anti-dilutive stock options (2019: 5,948,500) and 5,264,520 anti-dilutive warrants (2019: 4,968,350).

P a g e   12

Americas Gold and Silver Corporation

Notes to the condensed interim consolidated financial statements

For the three-month and six-month periods ended June 30, 2020 and 2019

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

15. Non-controlling interests

The Company entered into a joint venture agreement with Mr. Eric Sprott effective October 1, 2019 for 40% non-controlling interest of the Company’s Galena Complex with initial contribution of $15 million to fund capital improvements and operations. Mr. Eric Sprott committed to contributing additional funds to support the ongoing operations alongside the Company in proportion of their respective ownership up to $5 million for the first year of operations with the Company contributing any potential excess as necessary. After the first year, contributions revert to the proportional percentage of ownership interests to fund capital projects 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.

16. Revenue

The following is a disaggregation of revenue categorized by commodities sold for the three-month and six-month periods ended June 30, 2020 and 2019:

	Three-month period ended June 30, 2020			Three-month period ended June 30, 2019			Six-month period ended June 30, 2020			Six-month period ended June 30, 2019
Silver
Provisional sales revenue	$	3,176		$	5,282		$	7,694		$	11,229
Derivative pricing adjustments		142			103			57			5
		3,318			5,385			7,751			11,234
Zinc
Provisional sales revenue	$	—		$	13,562		$	3,077		$	26,905
Derivative pricing adjustments		37			(1,226	)		(1,280	)		(909	)
		37			12,336			1,797			25,996
Lead
Provisional sales revenue	$	2,960		$	6,412		$	7,406		$	13,798
Derivative pricing adjustments		(278	)		(183	)		(425	)		(126	)
		2,682			6,229			6,981			13,672
Other by-products
Provisional sales revenue	$	—		$	166		$	15		$	348
Derivative pricing adjustments		—			(47	)		36			(80	)
		—			119			51			268
Total provisional sales revenue	$	6,136		$	25,422		$	18,192		$	52,280
Total derivative pricing adjustments		(99	)		(1,353	)		(1,612	)		(1,110	)
Gross revenue	$	6,037		$	24,069		$	16,580		$	51,170
Treatment and selling costs		(1,434	)		(9,133	)		(4,712	)		(18,408	)
	$	4,603		$	14,936		$	11,868		$	32,762

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 20). Revenue from contracts with customers is recognized net of treatment and selling costs if payment of those amounts is enforced at the time of sale.

P a g e   13

Americas Gold and Silver Corporation

Notes to the condensed interim consolidated financial statements

For the three-month and six-month periods ended June 30, 2020 and 2019

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

17. 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 and six-month periods ended June 30, 2020 and 2019:

	Three-month period ended June 30, 2020			Three-month period ended June 30, 2019		Six-month period ended June 30, 2020		Six-month period ended June 30, 2019
Salaries and employee benefits	$	4,954		$	6,863	$	10,356	$	13,453
Raw materials and consumables		1,347			5,658		3,994		10,901
Utilities		728			1,315		1,671		2,649
Other costs		607			570		777		800
Changes in inventories		(112	)		324		561		(603	)
	$	7,524		$	14,730	$	17,359	$	27,200

18. 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 and six-month periods ended June 30, 2020 and 2019:

	Three-month period ended June 30, 2020		Three-month period ended June 30, 2019		Six-month period ended June 30, 2020		Six-month period ended June 30, 2019
Salaries and employee benefits	$	515	$	576	$	1,132	$	1,090
Directors’ fees		88		97		172		191
Share-based payments		747		1,254		1,351		1,354
Professional fees		137		229		263		338
Office and general		311		511		788		924
	$	1,798	$	2,667	$	3,706	$	3,897

The Company recognized a deduction of approximately $0.1 million in the second quarter of 2020 related to wage subsidies received through the Canada Emergency Wage Subsidy during the COVID-19 pandemic.

19. 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 six-month period ended June 30, 2020 was 26.5% and for the year ended December 31, 2019 was 26.5%.

P a g e   14

Americas Gold and Silver Corporation

Notes to the condensed interim consolidated financial statements

For the three-month and six-month periods ended June 30, 2020 and 2019

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

The Company’s net deferred tax asset relates to the U.S. alternative minimum tax credits available:

	June 30, 2020			December 31, 2019
Alternative minimum tax credits	$	343		$	343
Provisions and reserves		2,101			2,101
Net operating losses		4,230			4,230
Total deferred tax assets		6,674			6,674
Property, plant and equipment		(6,331	)		(6,331	)
Net deferred tax assets	$	343		$	343

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

	June 30, 2020			December 31, 2019
Property, plant and equipment	$	839		$	851
Other		(120	)		329
Total deferred tax liabilities		719			1,180
Provisions and reserves		(398	)		(430	)
Net deferred tax liabilities	$	321		$	750

20. 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 June 30, 2020, the Company’s exposure to credit risk with respect to trade receivables amounts to $1.4 million (December 31, 2019: $4.6 million). The Company believes credit risk for Mexican Value Added Taxes of $0.6 million (December 31, 2019: $0.6 million) is not significant as they relate to current amounts receivable from Mexican taxation authorities. There is no significant provision recorded for expected credit losses at June 30, 2020 and December 31, 2019.

(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 expected to be met through a variety of sources, including cash, cash generated from operations (including Relief Canyon Mine upon reaching commercial production), 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.

P a g e   15

Americas Gold and Silver Corporation

Notes to the condensed interim consolidated financial statements

For the three-month and six-month periods ended June 30, 2020 and 2019

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

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

	June 30, 2020
	Total		Less than 1 year		2-3 years		4-5 years		Over 5 years
Trade and other payables	$	18,673	$	18,673	$	—	$	—	$	—
Glencore pre-payment facility		4,112		4,112		—		—		—
Interest on Glencore pre-payment facility		90		90		—		—		—
Convertible debenture		10,000		—		10,000		—		—
Interest on convertible debenture		1,655		600		1,055		—		—
Government loan		4,499		—		4,499		—		—
Projected pension contributions		7,037		1,948		2,521		2,041		527
Decommissioning provision		9,690		15		189		—		9,486
Other long-term liabilities		5,848		—		5,289		—		559
	$61,604		$25,438		$23,553		$2,041		$10,572

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

	June 30, 2020
	Total		Less than 1 year		2-3 years		4-5 years		Over 5 years
Trade and other payables	$	3,348	$	3,348	$	—	$	—	$	—
Other long-term liabilities		5,296		—		5,296		—		—
	$8,644		$3,348		$5,296		$ —		$ —

The following table summarizes the continuity of the Company’s total lease liabilities discounted using an incremental borrowing ranging from 5% to 12% applied during the period:

	June 30, 2020			December 31, 2019
Lease liabilities, beginning of period	$	7,025		$	270
IFRS 16 adoption		—			527
Additions		1,910			6,478
Lease principal payments		(1,338	)		(234	)
Lease interest payments		(414	)		(50	)
Accretion on lease liabilities		406			34
Lease liabilities, end of period	$	7,589		$	7,025

(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 the interest rate risk of U.S. LIBOR rate plus 5% per annum from the existing Pre-Payment Facility. Interest rates of other financial instruments are fixed.

P a g e   16

Americas Gold and Silver Corporation

Notes to the condensed interim consolidated financial statements

For the three-month and six-month periods ended June 30, 2020 and 2019

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

(2) Currency risk

As at June 30, 2020, the Company is exposed to foreign currency risk through financial assets and liabilities denominated in CAD and Mexican pesos (“MXP”):

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

	As at June 30, 2020
	CAD	MXP
Cash and cash equivalents	$4,194	$119
Trade and other receivables	43	878
Trade and other payables	2,287	4,372

As at June 30, 2020, the CAD/USD and MXP/USD exchange rates were 1.36 and 22.97, respectively. The sensitivity of the Company’s net loss and comprehensive loss due to changes in the exchange rates for the six-month period ended June 30, 2020 is included in the following table:

	CAD/ USD		MXP/ USD
	Exchange rate		Exchange rate
	+/- 10%		+/- 10%
Approximate impact on:
Net loss	$	376	$	414
Other comprehensive loss		24		(71	)

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

As at June 30, 2020, the Company does not have any non-hedge foreign exchange forward contracts outstanding (2019: 96.0 million MXP at average exchange rate of 20.00 MXP/USD with unrealized gain of nil recorded during the six-month period). During the six-month period ended June 30, 2020, the Company settled non-hedge foreign exchange forward contracts to buy approximately 26.0 million MXP (2019: 120.0 million MXP) and recorded a realized gain of nil through profit or loss (2019: realized gain of $0.4 million).

(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 June 30, 2020, the Company had certain amounts related to the sales of concentrates that have only been provisionally priced. A ±10% fluctuation in silver, zinc, lead, copper and gold prices would affect trade receivables by approximately $0.1 million.

As at June 30, 2020, the Company does not have any non-hedge commodity forward contracts outstanding (2019: 10.9 million pounds of zinc at $1.22 per pound with unrealized gain of $0.8 million recorded during the six-month period). During the six-month period ended June 30, 2020, the Company settled non-hedge commodity forward contracts for approximately 1.6 million and 3.3 million pounds of pounds of zinc and lead, respectively, (2019: 1.4 million pounds of zinc) and recorded a realized gain of nil through profit or loss (2019: realized loss of $ 0.1 million).

P a g e   17

Americas Gold and Silver Corporation

Notes to the condensed interim consolidated financial statements

For the three-month and six-month periods ended June 30, 2020 and 2019

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

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 six-month period ended June 30, 2020 was nil (2019: gain of $1.1 million). Total amount of gain or loss on derivative instruments including those recognized through profit or loss from the Company’s Convertible Debenture during the six-month period ended June 30, 2020 was gain of $2.1 million (2019: loss of $0.6 million).

b. Fair values

The fair value of cash, restricted cash, trade and other payables, and other long-term liabilities approximate their carrying amounts. The methods and assumptions used in estimating the fair value of other 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. The Company’s cash equivalents consist of money market accounts held at financial institutions which have original maturities of less than 90 days.

• 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.

• Convertible debenture: The principal portion of the Convertible Debenture is carried at amortized cost.

• Embedded derivatives: Revenues from the sale of metals produced 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).

	June 30, 2020		December 31, 2019
Level 1
Cash and cash equivalents	$	16,905	$	19,998
Restricted cash		3,982		4,007
Level 2
Trade and other receivables		2,297		5,269
Derivative instruments		2,358		3,855
Convertible debenture		9,945		9,935
Government loan		4,122		—
Glencore pre-payment facility		4,112		5,602

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Americas Gold and Silver Corporation

Notes to the condensed interim consolidated financial statements

For the three-month and six-month periods ended June 30, 2020 and 2019

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

21. 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 and six-month periods ended June 30, 2020 and 2019 were earned in Mexico and the United States. The following segmented information is presented as at June 30, 2020 and December 31, 2019, and for the three-month and six-month periods ended June 30, 2020 and 2019.

					As at June 30, 2020										As at December 31, 2019
	Cosalá Operations		Galena Complex		Relief Canyon		Corporate and Other		Total		Cosalá Operations		Galena Complex		Relief Canyon		Corporate and Other		Total
Cash and cash equivalents	$	164	$	9,751	$	2,357	$	4,633	$	16,905	$	2,903	$	14,761	$	770	$	1,564	$	19,998
Trade and other receivables		878		1,375		—		44		2,297		3,852		1,374		—		43		5,269
Inventories		5,923		2,014		—		—		7,937		6,361		2,137		—		—		8,498
Prepaid expenses		612		470		555		651		2,288		615		524		471		304		1,914
Derivative instruments		—		—		—		—		—		—		—		—		585		585
Restricted cash		119		53		3,810		—		3,982		145		55		3,807		—		4,007
Property, plant and equipment		54,649		52,078		117,172		453		224,352		56,094		47,672		86,201		422		190,389
Deferred tax assets		—		343		—		—		343		—		343		—		—		343
Total assets	$	62,345	$	66,084	$	123,894	$	5,781	$	258,104	$	69,970	$	66,866	$	91,249	$	2,918	$	231,003
Trade and other payables	$	6,743	$	3,814	$	5,059	$	3,057	$	18,673	$	9,241	$	3,805	$	6,506	$	3,157	$	22,709
Derivative instruments		—		—		—		2,358		2,358		—		—		—		4,440		4,440
Other long-term liabilities		—		559		4,784		505		5,848		—		566		4,495		584		5,645
Deferred revenue		—		—		—		30,192		30,192		—		—		—		25,007		25,007
Convertible debenture		—		—		—		9,945		9,945		—		—		—		9,935		9,935
Glencore pre-payment facility		4,112		—		—		—		4,112		5,602		—		—		—		5,602
Government loan		—		4,499		—		—		4,499		—		—		—		—		—
Post-employment benefit obligations		—		13,808		—		—		13,808		—		10,137		—		—		10,137
Decommissioning provision		1,662		2,419		4,163		—		8,244		1,854		2,156		3,755		—		7,765
Deferred tax liabilities		321		—		—		—		321		750		—		—		—		750
Total liabilities	$	12,838	$	25,099	$	14,006	$	46,057	$	98,000	$	17,447	$	16,664	$	14,756	$	43,123	$	91,990

				Three-month period ended June 30, 2020															Three-month period ended June 30, 2019
	Cosalá Operations			Galena Complex			Relief Canyon			Corporate and Other			Total			Cosalá Operations			Galena Complex			Relief Canyon			Corporate and Other			Total
Revenue	$	(207	)	$	4,810		$	—		$	—		$	4,603		$	10,098		$	4,838		$	—		$	—		$	14,936
Cost of sales		—			(7,524	)		—			—			(7,524	)		(7,160	)		(7,570	)		—			—			(14,730	)
Depletion and amortization		(464	)		(1,219	)		(24	)		(31	)		(1,738	)		(2,483	)		(863	)		(52	)		(32	)		(3,430	)
Care and maintenance costs		(1,558	)		(94	)		—			—			(1,652	)		(9	)		(92	)		—			—			(101	)
Corporate general and administrative		—			—			—			(1,798	)		(1,798	)		—			—			—			(2,667	)		(2,667	)
Transaction costs		—			—			—			—			—			—			—			—			(1,180	)		(1,180	)
Exploration costs		(35	)		(658	)		(106	)		—			(799	)		(102	)		(98	)		(164	)		—			(364	)
Accretion on decommissioning provision		(26	)		(4	)		(7	)		—			(37	)		(37	)		(11	)		(7	)		—			(55	)
Interest and financing income (expense)		(64	)		—			3			(35	)		(96	)		(170	)		15			7			(831	)		(979	)
Foreign exchange gain (loss)		(15	)		—			—			—			(15	)		(20	)		—			—			262			242
Gain on disposal of assets		—			65			—			—			65			—			—			—			—			—
Gain (loss) on derivative instruments		—			—			—			(1,948	)		(1,948	)		—			—			—			447			447
Loss on derivative warrant liability		—			—			—			—			—			—			—			—			(13	)		(13	)
Income (loss) before income taxes		(2,369	)		(4,624	)		(134	)		(3,812	)		(10,939	)		117			(3,781	)		(216	)		(4,014	)		(7,894	)
Income tax recovery (expense)		223			—			—			—			223			(101	)		—			—			—			(101	)
Net income (loss) for the period	$	(2,146	)	$	(4,624	)	$	(134	)	$	(3,812	)	$	(10,716	)	$	16		$	(3,781	)	$	(216	)	$	(4,014	)	$	(7,995	)

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Americas Gold and Silver Corporation

Notes to the condensed interim consolidated financial statements

For the three-month and six-month periods ended June 30, 2020 and 2019

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

				Six-month period ended June 30, 2020															Six-month period ended June 30, 2019
	Cosalá Operations			Galena Complex			Relief Canyon			Corporate and Other			Total			Cosalá Operations			Galena Complex			Relief Canyon			Corporate and Other			Total
Revenue	$	1,183		$	10,685		$	—		$	—		$	11,868		$	22,935		$	9,827		$	—		$	—		$	32,762
Cost of sales		(2,217	)		(15,142	)		—			—			(17,359	)		(12,899	)		(14,301	)		—			—			(27,200	)
Depletion and amortization		(1,430	)		(2,479	)		(81	)		(63	)		(4,053	)		(5,002	)		(1,775	)		(52	)		(63	)		(6,892	)
Care and maintenance costs		(2,375	)		(222	)		—			—			(2,597	)		(20	)		(177	)		—			—			(197	)
Corporate general and administrative		—			—			—			(3,706	)		(3,706	)		—			—			—			(3,897	)		(3,897	)
Transaction costs		—			—			—			(23	)		(23	)		—			—			—			(2,157	)		(2,157	)
Exploration costs		(419	)		(1,554	)		(226	)		—			(2,199	)		(633	)		(169	)		(164	)		—			(966	)
Accretion on decommissioning provision		(58	)		(13	)		(25	)		—			(96	)		(74	)		(23	)		(7	)		—			(104	)
Interest and financing income (expense)		(146	)		—			3			(45	)		(188	)		(370	)		15			7			(1,332	)		(1,680	)
Foreign exchange gain		728			—			—			—			728			70			—			—			213			283
Gain on disposal of assets		—			65			—			—			65			—			—			—			—			—
Gain (loss) on derivative instruments		—			—			—			2,050			2,050			—			—			—			(579	)		(579	)
Gain on derivative warrant liability		—			—			—			—			—			—			—			—			46			46
Income (loss) before income taxes		(4,734	)		(8,660	)		(329	)		(1,787	)		(15,510	)		4,007			(6,603	)		(216	)		(7,769	)		(10,581	)
Income tax recovery (expense)		649			—						—			649			(227	)		—						—			(227	)
Net income (loss) for the period	$	(4,085	)	$	(8,660	)	$	(329	)	$	(1,787	)	$	(14,861	)	$	3,780		$	(6,603	)	$	(216	)	$	(7,769	)	$	(10,808	)

c. Major customers

The Company sold concentrates to one customer during the three-month and six-month periods ended June 30, 2020 (2019: one customer) accounting for 100% (2019: 100%) of revenues.

22. 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 $8.6 million (MXP 196.8 million), of which $3.7 million (MXP 84.4 million) would be applied against available tax losses. The Company appealed this reassessment and the Mexican tax authorities subsequently reversed $4.1 million (MXP 94.6 million) of their original reassessment. The remaining $4.4 million (MXP 102.2 million) consists of $3.7 million (MXP 84.4 million) related to transactions with certain suppliers and $0.8 million (MXP 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 $0.8 million (MXP 17.8 million) to secure the value added tax portion of the reassessment. The deductions of $3.7 million (MXP 84.4 million), if denied, would be offset by available tax losses. The Company accrued $0.9 million (MXP 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.

23. Subsequent events

On July 9, 2020, the Company completed the outstanding option acquisition agreement to acquire a 100% interest of the San Felipe property with Hochschild where the Company has agreed to issue to Hochschild 1,687,401 of the Company’s common shares with a value equal to the outstanding payment of $3.75 million plus VAT using the 5-day volume-weighted average price on the Toronto Stock Exchange as of the date of the parties’ agreement, subject to adjustment in certain circumstances.

On July 31, 2020, the Company amended the $5 million precious metals delivery and purchase agreement with Macquarie which was to be settled through monthly fixed deliveries commencing July 31, 2020 of gold production ounces from the Relief Canyon Mine to monthly fixed cash payments totaling $7.2 million payable over a 6 month period commencing October 2020, among other terms. The Company also entered into gold collar options over the same period as the fixed cash payments.

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EX-99.2

Exhibit 99.2

AMERICAS GOLD AND SILVER CORPORATION

MANAGEMENT’S DISCUSSION AND ANALYSIS

FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2020

DATED AUGUST 14, 2020

Americas Gold and Silver Corporation

Management’s Discussion and Analysis

Table of Contents

Forward-Looking Statements	1
Management’s Discussion and Analysis	2
Overview	3
Recent Developments and Operational Discussion	4
Results of Operations	10
Summary of Quarterly Results	12
Liquidity	13
Capital Resources	15
Off-Balance Sheet Arrangements	15
Transactions with Related Parties	15
Risk Factors	16
Accounting Standards and Pronouncements	18
Financial Instruments	18
Capital Structure	19
Controls and Procedures	19
Non-IFRS Measures: Cash Cost per Ounce and All-In Sustaining Cost per Ounce	19

Unless otherwise indicated, in this Management Discussion and Analysis all reference to “dollar” or the use of the symbol “$” are to the United States of America dollar and all references to “C$” are to the Canadian dollar. Additionally, percentage changes in this Management Discussion and Analysis are based on dollar amounts before rounding.

Americas Gold and Silver Corporation

Management’s Discussion & Analysis

For the three and six months ended June 30, 2020

Forward-Looking Statements

Statements contained in this MD&A of Americas Gold and Silver Corporation (the “Company” or “Americas Gold and Silver”) that are not current or historical factual statements may constitute “forward-looking information” or “forward-looking statements” within the meaning of applicable Canadian and United States securities laws (“forward-looking statements”). These forward-looking statements are presented for the purpose of assisting the Company’s securityholders and prospective investors in understanding management’s views regarding those future outcomes and may not be appropriate for other purposes. When used in this MD&A, the words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “seek”, “propose”, “estimate”, “expect”, and similar expressions, as they relate to the Company, are intended to identify forward-looking statements. Specific forward-looking statements in this MD&A, include, but are not limited to: any objectives, expectations, intentions, plans, results, levels of activity, goals or achievements; estimates of mineral reserves and mineral resources; the realization of mineral resource and mineral reserve estimates; the impairment of mining interests and non-producing properties; the timing and amount of estimated future production, production guidance, costs of production, capital expenditures, costs and timing of development; the success of exploration and development activities; permitting timelines; government regulation of mining operations; environmental risks; labour relations, employee recruitment and retention and pension funding; the timing and possible outcomes of pending disputes or litigation; negotiations or regulatory investigations; exchange rate fluctuations; cyclical or seasonal aspects of our business; capital expenditures; the Company’s ability to finance, develop, achieve commercial production at and operate Relief Canyon (as defined herein) on expected timelines and any impact of the COVID-19 pandemic and any resurgence thereof affecting the achievement of those milestones; issues relating to the COVID-19 pandemic and any resurgence thereof affecting the Company’s Cosalá Operations; the resolution and removal of the illegal blockade at the Company’s Cosalá Operations and the resumption of mining and processing operations, including any associated costs and timing related to such resolution, and resumption of operations; the Company’s ability to obtain sufficient access to capital and cash flow to fund its 2020 operations, development, and exploration plans while meeting production targets at current commodity price levels; the Company’s ability to obtain any additional financing and the terms of any such financing; the expected timing and completion of the Company’s exercise of its option to acquire a 100% interest in the San Felipe development project in Sonora, Mexico; statements relating to the financial condition, assets, liabilities (contingent or otherwise), business, operations or prospects of the Company; the liquidity of the common shares; and other events or conditions that may occur in the future.

Inherent in the forward-looking statements are known and unknown risks, uncertainties and other factors beyond the Company’s ability to control or predict that may cause the actual results, performance or achievements of the Company, or developments in the Company’s business or in its industry, to differ materially from the anticipated results, performance, achievements or developments expressed or implied by such forward-looking statements. Some of the risks and other factors (some of which are beyond the Company’s control) that could cause results to differ materially from those expressed in the forward-looking statements and information contained in this MD&A, include, but are not limited to: risks associated with market fluctuations in commodity prices; risks related to changing global economic conditions, including market reaction to the COVID-19 pandemic, which may affect the Company’s results of operations and financial condition; actual and potential risks and uncertainties relating to the ultimate geographic spread of COVID-19, the severity of the disease and the duration of the COVID-19 pandemic and issues relating to its resurgence, including potential material adverse effects on our business, operations and financial performance; actions that have been and may be taken by governmental authorities to contain COVID-19 or to treat its impact on our business; the actual and potential negative impacts of COVID-19 on the global economy and financial markets; the Company is dependent on the success of Relief Canyon, the San Rafael project as well as its Cosalá Operations and the Galena Complex, which are exposed to operational risks; risks related to mineral reserves and mineral resources, development and production and the Company’s ability to sustain or increase present production; risks related to global financial and economic conditions; risks related to government regulation and environmental compliance; risks related to mining property claims and titles, and surface rights and access; risks related to labour relations, disputes and/or disruptions, employee recruitment and retention and pension funding; some of the Company’s material properties are located in Mexico and are subject to changes in political and economic conditions and regulations in that country; risks related to the Company’s relationship with the communities where it operates; risks related to actions by certain non-governmental organizations; substantially all of the Company’s assets are located outside of Canada, which could impact the enforcement of civil liabilities obtained in Canadian and U.S. courts; risks related to currency fluctuations that may adversely affect the financial condition of the Company; the Company may need additional capital in the future and may be unable to obtain it or to obtain it on favourable terms; risks associated with the Company’s outstanding debt and its ability to make scheduled payments of interest and principal thereon; the Company may engage in hedging activities; risks associated with the Company’s business objectives; and risks related to competition in the mining industry.

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Americas Gold and Silver Corporation

Management’s Discussion & Analysis

For the three and six months ended June 30, 2020

This is not an exhaustive list of the risks and other factors that may affect any of the Company’s forward-looking statements. Some of these risks and other factors are discussed in more detail in the Company’s Annual Information Form (as defined herein). Investors and others should carefully consider these risks and other factors and not place undue reliance on the forward-looking statements. Further information regarding these and other risk factors is included in the Company’s public filings with provincial securities regulatory authorities which can be found on SEDAR at www.sedar.com, on EDGAR at www.sec.gov, and on the Company’s website at www.americas-gold.com.

The forward-looking statements contained in this MD&A represent the Company’s views only as of the date such statements were made. Forward-looking statements contained in this MD&A are based on management’s plans, estimates, projections, beliefs and opinions as at the time such statements were made and the assumptions related to these plans, estimates, projections, beliefs and opinions may change. Such assumptions, which may prove to be incorrect, include: our budget, including expected costs and the assumptions regarding market conditions and other factors upon which we have based our expenditure expectations; our ability to raise additional capital to proceed with our exploration, development and operations plans, including any additional capital required to bring Relief Canyon to commercial production, for our Recapitalization Plan for the Galena Complex and in connection with the resumption of operations at the Cosalá Operations; financial markets will not in the long term be adversely impacted by the COVID-19 pandemic; our operations and key suppliers are essential services or business, (or, in the case of our Cosalá Operations, will be deemed to be essential business activities), and our employees, contractors and subcontractors will be available to continue exploration, development and operation activities; our ability to obtain all necessary regulatory approvals, permits and licenses for our planned activities under governmental and other applicable regulatory regimes; our expectations regarding the demand for, and supply and price of, precious metals; our expectations regarding tax rates, currency exchange rates, and interest rates; our mineral reserve and resource estimates, and the assumptions upon which they are based; our ability to comply with current and future environmental, safety and other regulatory requirements and to obtain and maintain required regulatory approvals; our operations are not significantly disrupted as a result of political instability, nationalization, terrorism, sabotage, pandemics, social or political activism, breakdown, natural disasters, governmental or political actions, litigation or arbitration proceedings, equipment or infrastructure failure, labour shortages, transportation disruptions or accidents, or other development, exploration or operational risks. Although the Company believes that the assumptions and expectations reflected in those forward-looking statements were reasonable at the time such statements were made, there can be no assurance that such assumptions and expectations will prove to be correct. The Company cannot guarantee future results, levels of activity, performance or achievements and actual results or developments may differ materially from those contemplated by the forward-looking statements. The Company does not undertake to update any forward-looking statements, except to the extent required by applicable securities laws.

In addition, forward-looking financial information with respect to potential outlook and future financial results contained in this MD&A is based on assumptions about future events, including economic conditions and proposed courses of action, based on management’s reasonable assessment of the relevant information available as at the date of such forward-looking financial information. Readers are cautioned that any such forward-looking financial information should not be used for purposes other than for which it is disclosed.

Management’s Discussion and Analysis

This MD&A of the results of operations, liquidity and capital resources of Americas Gold and Silver constitutes management’s review of the Company’s financial and operating performance for the three and six months ended June 30, 2020, including the Company’s financial condition and future prospects. Except as otherwise noted, this discussion is dated August 14, 2020 and should be read in conjunction with the Company’s unaudited condensed interim consolidated financial statements and the notes thereto for the three and six months ended June 30, 2020 and 2019. The unaudited condensed interim consolidated financial statements for the three and six months ended June 30, 2020 and 2019 are prepared in accordance with International Accounting Standards (“IAS”) 34 under International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board. The Company prepared its latest financial statements in U.S. dollars and all amounts in this MD&A are expressed in U.S. dollars,

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Americas Gold and Silver Corporation

Management’s Discussion & Analysis

For the three and six months ended June 30, 2020

unless otherwise stated. These documents along with additional information relating to the Company are available on SEDAR at www.sedar.com, on EDGAR at www.sec.gov, and on the Company’s website at www.americas-gold.com. The content of the Company’s website and information accessible through the website do not form part of this MD&A.

In this report, the management of the Company presents operating highlights for the three months ended June 30, 2020 (“Q2-2020”) compared to the three months ended June 30, 2019 (“Q2-2019”) and for the six months ended June 30, 2020 (“YTD-2020”) compared to the six months ended June 30, 2019 (“YTD-2019”) as well as comments on plans for the future. Throughout this MD&A, references to gold equivalent ounces produced are based on gold and silver production at average gold spot prices and average silver realized prices during each respective period, and references to silver equivalent ounces produced are based on all metals production at average gold spot prices, and average silver, zinc, and lead realized prices during each respective period, except as otherwise noted.

This MD&A contains statements about the Company’s future or expected financial condition, results of operations and business. See page 1 of this report for more information on forward-looking statements.

Overview

The Company is a precious metals producer advancing the Relief Canyon gold mine (“Relief Canyon”) to full production in Nevada, USA in 2020. It also has two existing operations in the world’s leading silver regions: the Cosalá Operations in Sinaloa, Mexico and the Galena Complex in Idaho, USA.

In Nevada, USA, the Company operates the 100%-owned, Relief Canyon mine located in Pershing County after finalizing the acquisition of Pershing Gold Corporation in April 2019. The mine poured its first gold in February 2020 and is expected to reach commercial production by the end of Q4-2020. The past producing mine includes three historic open-pit mines and a heap-leach processing facility. The landholdings at Relief Canyon and the surrounding area cover over 11,700 hectares, providing the Company with the potential to expand the Relief Canyon deposit and to explore for new discoveries close to existing processing infrastructure.

In Sinaloa, Mexico, the Company operates the 100%-owned San Rafael silver-zinc-lead mine (“San Rafael”) after declaring commercial production in December 2017. Prior to that time, it operated the 100%-owned Nuestra Señora silver-zinc-copper-lead mine after commissioning the Los Braceros processing facility and declaring commercial production in January 2009. The Cosalá area land holdings also host several other known deposits, past-producing mines, and development projects including the Zone 120 silver-copper deposit (“Zone 120”) and the El Cajón silver-copper deposit (“El Cajón”). These properties are located in close proximity to the Los Braceros processing plant.

In Idaho, USA, the Company operates the 60%-owned producing Galena Complex (40%-owned by Mr. Eric Sprott (“Sprott”)) whose primary assets are the operating Galena mine, the Coeur mine, and the contiguous Caladay development project in the Coeur d’Alene Mining District of the northern Idaho Silver Valley. The Galena Complex has recorded production of over 230 million ounces of silver along with associated by-product metals of copper and lead over a production history of more than sixty years. The Company entered into a joint venture agreement with Sprott effective October 1, 2019 for a 40% non-controlling interest of the Galena Complex with initial contribution of $15 million to fund capital improvements and operations. The goal of the joint venture agreement is to position the Galena Complex to significantly grow resources, increase production, and reduce operating costs at the mine over the next two years (the “Recapitalization Plan”). The Company has suspended disclosure of certain operating metrics such as cash costs, and all-in sustaining costs for the Galena Complex until the Recapitalization Plan is substantially completed.

The Company’s mission is to profitably expand its precious metals production through the development of its own projects and consolidation of complementary projects. The Company is focused on advancing the Relief Canyon mine to commercial production by Q4-2020. It is also focused on extending the mine life of its current assets through exploration and charting a path to profitability at the Galena Complex. Exploration will continue evaluating early stage targets with an emphasis on the Relief Canyon area and the Cosalá District, and prospective areas accessible from existing infrastructure at the Galena Complex.

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Americas Gold and Silver Corporation

Management’s Discussion & Analysis

For the three and six months ended June 30, 2020

The Company’s management and Board of Directors (the “Board”) are comprised of senior mining executives who have extensive experience identifying, acquiring, developing, financing, and operating precious metals deposits globally. The Company’s principal and registered office is located at 145 King Street West, Suite 2870, Toronto, Ontario, Canada, M5H 1J8. The Company is a reporting issuer in the jurisdictions of Ontario, British Columbia, Alberta, and Quebec, and is listed on the TSX trading under the symbol “USA” and on the NYSE American trading under the symbol “USAS”.

Recent Developments and Operational Discussion

Q2-2020 Highlights

• Relief Canyon continues to ramp up with tonnage and grade reconciling to the resource model. Mining progressed through the lower grade upper fringe portion of the deposit near the historic North and Lightbulb pits but has now reached a more continuous and higher grade area. Commercial production is expected to be delayed until Q4-2020 due to various start-up challenges including equipment issues with the radial stacker, inconsistent operating practices and variable solution application rates. On August 4, 2020, the operation began stacking ore typical of the Main Zone which management expect to show gold extraction rates consistent with feasibility expectations.

• A legal vote for a new union to represent the Company’s workers at its Cosalá operations is expected by mid-September. The Company is anticipating this vote will allow for the restart of operations before the end of Q3-2020.

• Galena’s Recapitalization Plan is proceeding on time and on budget with the Company expecting higher production in the second half of 2020 from the recapitalization improvements. Drilling to-date on extensions of known resources and historic veins below existing workings is showing promising results to expand resources and production beyond 2020.

• Revenue of $4.6 million and a net loss of $10.8 million for Q2-2020 or a loss of ($0.09) per share.

• Year-to-date operating metrics were largely unchanged in Q2-2020 from Q1-2020 due to the illegal blockade at the Cosalá Operations, suspension of operating metrics during the Galena Recapitalization Plan implementation, and ongoing pre-development at Relief Canyon (omitted below).

• Closed a bought deal public offering for gross proceeds of approximately C$28.75 million in May 2020.

• The Company had a cash balance of $16.9 million and working capital balance of negative ($5.7) million as at June 30, 2020.

COVID-19 Pandemic

The Company has been closely monitoring developments of COVID-19, declared a global pandemic by the World Health Organization on March 11, 2020. Preventive measures to ensure the safety of the Company’s workforce and local communities were implemented and there have been no outbreaks of COVID-19 at any of the Company’s operations to date. During Q2-2020, all of the Company’s mining and corporate operations continue to operate with the exception of mining operations in Cosalá, halted by the illegal blockade and prolonged by temporary closure of government offices due to COVID-19. While operations continue at Relief Canyon during COVID-19, the Company has been limited in its ability to promptly troubleshoot ramp-up issues, common when commissioning a new mine, due to an inability to get key management and consultants to site due to travel restrictions.

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Americas Gold and Silver Corporation

Management’s Discussion & Analysis

For the three and six months ended June 30, 2020

Relief Canyon Update

Relief Canyon successfully poured its first gold in mid-February 2020 with initial construction completed nine months after construction formally commenced in mid-May 2019. The initial capital spend to first production was within the guidance range the Company provided of $28—$30 million.

The Relief Canyon mine continues to ramp up with mined tonnes and grade, reconciling well to the mine plan. Crushing rates have steadily increased to feasibility levels however ore stacking was impacted by a structural failure to the radial stacker resulting in reduced stacking rates from the use of a temporary stacker averaging approximately 8,000 tonnes per day instead of the targeted rate of over 16,000 tonnes per day with the original stacker. Repairs to the damaged stacker are expected to be completed by early Q4-2020. As of August 8, 2020, approximately 8.9 million tonnes of material have been mined, including 7.6 million tonnes of waste and 1.3 million tonnes of ore. Waste movement is ahead of budget and the operation currently has an ore stockpile of approximately 0.2 million tonnes ahead of the crusher waiting to be placed on the leach pad. Approximately 1.2 million tonnes of ore were stacked on the leach pad containing approximately 17,000 gold ounces. The Company is targeting commercial production by the end of Q4-2020. To date, Relief Canyon sold approximately 1,565 ounces of gold and 5,512 ounces of silver. The Company will provide Relief Canyon operating metrics after reaching commercial production.

While the Company was successful in meeting several important commissioning targets including initial construction capital, and planned mining and crushing rates, gold extraction has been slower than planned. While Relief Canyon has experienced start-up challenges typical to a heap leach operation, there are a number of factors impacting gold extraction, notably: the metallurgical characteristics of the initial ore stacked on the leach pad sourced from the existing three pits, inconsistent operating practices, solution application rates on the leach pad, and the failure of the radial stacker. The Company and its’ consultants have systematically analysed recent performance and have implemented a number of procedural changes to address these issues: improved ore control, increased training, standardization of operating practices and reagent optimization. This situation was further exacerbated by the impact of COVID-19 limiting accessibility of consultants and senior staff to site in the first half of the year.

Leach pad 6W has been isolated to implement and monitor changes though leaching continues on all other areas of the leach pad. Liner installation in the 6W area is complete with over 60% of the overliner in place. As of August 4^th, 2020, the operation began stacking higher grade gold ore from below the existing pits on this liner and has commenced with solution application, after receipt of the necessary permits. Separate lysimeters have been installed in this pad to closely track progress and make adjustments, as necessary. Based on preliminary review of this new area, management expects the ore will leach as estimated by the Relief Canyon Feasibility Study.

Notice of Intent for the Phase 2 EIS is expected to be published in the Federal Register in mid-August 2020. This permit will allow the Company to continue mining at depth and expand the footprint of both the heap leach and waste rock storage facilities. Approval of the EIS is expected within 12 months of the NOI being published.

Cosalá Operations: COVID-19 and Illegal Blockade

In February 2020, the Company announced an illegal blockade had been put in place at the Cosalá Operations by a group of individuals including a small minority of the Company’s hourly workforce. As a result, the Operations were put on care and maintenance pending the successful removal of the blockade. Since that time, management has made all possible efforts with the affected workers and the Mexican government to remove the illegal blockade in a safe and timely manner. These efforts were prolonged by the temporarily closure of Mexican government offices as Mexico continues to be significantly impacted by COVID-19.

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Americas Gold and Silver Corporation

Management’s Discussion & Analysis

For the three and six months ended June 30, 2020

With the planned opening of Mexican government offices in August, the Company’s employees will vote by mid-September for new union representation. Following completion of the vote, the Company is expecting it can re-enter the Operations, assess the status of the equipment, mill, and underground workings for restarting operations, and remediate any damage, allowing for the restart of operations by the end of Q3-2020. Once re-started, management expects the current operation to generate positive cash flow during Q4-2020 at current metal prices.

The combination of higher silver prices and the re-opening of the mine will allow the Company to target the higher-grade silver ores in the Upper Zone of San Rafael and develop the silver-copper EC120 area moving forward. Mining these silver-rich areas of the Cosalá Operation is expected to significantly increase silver production in the next few years to over 2.5 million ounces of silver.

Galena Recapitalization Plan

In September 2019, the Company entered into a 60/40 JV with Sprott to recapitalize the Galena Complex. The JV and capital investment by Sprott allowed for a capital redevelopment of the asset in order to best exploit Galena’s existing resources, improve operational performance, and better prepare the Complex for higher silver prices. Further, Americas and Sprott believe there are substantially more silver resources to be discovered at better grades along extensions of existing veins and at depth; a portion of the invested capital was earmarked to explore significant historical veins at depth below current working levels.

The Recapitalization Plan at the Galena Complex is proceeding on time and on budget with the Company expecting increased production in the second half of 2020. This expectation is the result of the refurbishment and purchase of underground mobile equipment, capital investments (machinery, chillers, and development), expansion of known silver resources based on drilling done to date, and mine-wide rehabilitation, including the 5500 Level loading pocket, which will allow ore and waste to skip efficiently off this Level. Further underground development improvements, additional equipment procurements, and an exploration drilling program designed to target high-grade extensions of historic veins extensions below current workings will benefit the operation longer term by discovering additional high-grade silver resources further improving mining efficiency and lowering cash costs. Exploration success has been already realized during YTD-2020.

During the Recapitalization Plan, the Company continues to exclude cost figures from its quarterly disclosure.

Consolidated Operations

Consolidated operating results from Q2-2020 were generally not comparable to Q2-2019 due to the illegal blockade at the Cosalá Operations, and the Recapitalization Plan at the Galena Complex. The Cosalá Operations were put on care and maintenance in response to the illegal blockade at the end of January 2020. Consolidated gross revenue decreased by $10.3 million during Q2-2020 compared to Q2-2019 primarily due to the illegal blockade preventing all access to the Cosalá Operations.

Other Items During Fiscal 2020

On January 16, 2020, the Company entered into a $5 million precious metals delivery and purchase agreement with Macquarie Bank Ltd. (“Macquarie”) for working capital purposes at Relief Canyon. The $5 million advance was to be initially settled through fixed deliveries of gold production from Relief Canyon during the second half of 2020. On July 31, 2020, the Company and Macquarie amended this agreement and converted the delivery schedule to a $7.2 million loan to be repaid in equal monthly installments of $1.2 million over a six month period commencing at the end October 2020, among other terms.

On February 18, 2020, the Company announced it had entered into an at-the-market offering agreement (the “February 2020 ATM Agreement”) with H.C. Wainwright & Co. LLC, acting as the Lead Agent, and Roth Capital Partners, LLC, as agent, pursuant to which the Company established an at-the-market equity program for aggregate gross proceeds to the Company of up to $15.0 million. As of April 16, 2020, the Company completed the February 2020 ATM Agreement and sold approximately 9.0 million common shares for gross proceeds of $15 million or approximately $1.66 per share.

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Americas Gold and Silver Corporation

Management’s Discussion & Analysis

For the three and six months ended June 30, 2020

On May 13, 2020, the Company completed a bought deal public offering of 10,269,500 common shares at a price of C$2.80 per common share for aggregate gross proceeds of approximately C$28.75 million, which included the exercise by the underwriters, in full, of the over-allotment option granted by the Company to the underwriters. Strategic investors led by Mr. Pierre Lassonde and Mr. Eric Sprott subscribed to approximately C$8.75 million of the bought deal public offering. The proceeds of the bought deal public offering have been used primarily to advance development at Relief Canyon, including contractor and operating costs, leach pad construction, payroll and benefits, reagent and other operating supplies, equipment lease payments and land payments. In addition, a portion of the proceeds of the bought deal public offering have been used for care and maintenance at the Cosalá Operations, including payroll and concession payments and for working capital and other general purposes.

On May 11, 2020, the Company received a loan of approximately $4.5 million through the Paycheck Protection Program from the U.S. CARES Act to assist with payroll and other expenses at the Galena Complex during COVID-19. The loan may be forgiven if proceeds are used for payroll and other specifically defined expenses and employee and compensation levels are maintained. The Company expects to apply for forgiveness in Q3-2020 as the loan proceeds were used for the intended purposes under the program.

Additional Subsequent Events

On July 8, 2020, the Company completed the outstanding option acquisition agreement for the San Felipe property located in Sonora, Mexico, with Minera Hochschild Mexico S.A. de C.V. (“Hochschild”) where the Company has agreed to issue to Hochschild 1,687,401 of the Company’s common shares with a value equal to the outstanding payment of $3.75 million plus VAT using the 5-day volume-weighted average price on the TSX as of the date of the parties’ agreement (and for which the Company has obtained price protection from the TSX pursuant to its rules), subject to adjustment in certain circumstances.

Consolidated Results and Developments

Consolidated operating results from Q2-2020 were generally not comparable to Q2-2019 due to the illegal blockade at the Cosalá Operations and the suspension of certain operating metrics for the Galena Complex until the Recapitalization Plan is substantially completed. Specifically, the Cosalá Operations had no production and was put on care and maintenance at the end of January 2020 in response to the illegal blockade. As a result, the consolidated silver and silver equivalent production during Q2-2020 decreased by 100% compared to Q2-2019.

Revenues similarly decreased by 69% to $4.6 million in Q2-2020 from $14.9 million to Q2-2019 primarily due to the illegal blockade at the Cosalá Operations. The net loss was $10.8 million in Q2-2020 compared to a net loss of $8.0 million during Q2-2019, representing a decrease of 35%. The increase in net loss was primarily attributable the illegal blockade at the Cosalá Operations resulting in lower net revenue, higher care and maintenance costs, offset by lower cost of sales, and lower depletion and amortization related to the suspension of operations. In addition, the embedded derivative instrument loss related to the Sandstorm convertible debt was offset by lower transaction costs, and lower interest and financing expense. These variances are further discussed in the following sections.

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Americas Gold and Silver Corporation

Management’s Discussion & Analysis

For the three and six months ended June 30, 2020

The realized silver price increased by 12% from Q2-2019 to Q2-2020 with realized zinc and lead prices both decreasing by 29% and 11%, respectively, during the period. Realized silver prices of $16.66/oz. and $16.63/oz. for Q2-2020 and YTD-2020, respectively (Q2-2019 – $14.87/oz. and YTD-2019 – $15.31/oz.) is comparable to the average London silver spot price of $16.33/oz. and $16.63/oz. for Q2-2020 and YTD-2020, respectively (Q2-2019 – $14.89/oz. and YTD-2019 – $15.23/oz.). Realized silver price is a measurement of gross silver revenues over silver ounces sold during the period, excluding unrealized mark-to-market gains and losses on provisional pricing and concentrate treatment and refining charges.

Cosalá Operations

	Q2 2020		Q2 2019			YTD-2020			YTD-2019
Tonnes Milled		—		156,998			43,253			309,603
Silver Grade (g/t)		—		49			48			53
Zinc Grade (%)		—		3.90			4.26			4.03
Lead Grade (%)		—		1.60			1.70			1.71
Silver Recovery (%)		—		58.6			58.7			60.2
Zinc Recovery (%)		—		82.5			79.3			81.5
Lead Recovery (%)		—		73.0			74.3			74.4
Silver Produced (oz)		—		145,410			39,117			318,579
Zinc Produced (lbs)		—		11,150,174			3,221,744			22,413,797
Lead Produced (lbs)		—		4,052,559			1,203,720			8,678,792
Total Gold Equivalent Produced (oz)1		—		1,649			420			3,734
Total Silver Equivalent Produced (oz)2		—		1,300,009			308,435			2,622,054
Silver Sold (oz)		—		145,891			34,693			318,886
Zinc Sold (lbs)		—		10,799,762			3,083,663			21,664,166
Lead Sold (lbs)		—		4,056,487			988,828			8,739,182
Cost of Sales/Ag Eq Oz Produced ($/oz)		—	$	5.51		$	7.19		$	4.92
Cash Cost/Ag Oz Produced ($/oz)3		—	$	(18.27	)	$	(11.32	)	$	(24.90	)
All-In Sustaining Cost/Ag Oz Produced ($/oz)3		—	$	(11.66	)	$	(0.83	)	$	(19.38	)

¹  Throughout this MD&A, gold equivalent production was calculated based on gold and silver production at average gold spot prices and average silver realized prices during each respective period and excludes base metal production.

²  Throughout this MD&A, silver equivalent production was calculated based on all metals production at average gold spot prices, and average silver, zinc, and lead realized prices during each respective period.

³  Refer to “Non-IFRS Measures: Cash Cost per Ounce and All-In Sustaining Cost per Ounce” section in this MD&A.

In February 2020, the Company announced an illegal blockade had been put in place at the Cosalá Operations by a group of individuals including a small minority of the Company’s hourly workforce. As a result, the Operations were put on care and maintenance pending the successful removal of the blockade. Since that time, management has made all possible efforts with the Mexican government to remove the illegal blockade in a safe and timely manner. These efforts were prolonged by the temporarily closure of Mexican government offices as Mexico continues to be significantly impacted by COVID-19.

With the planned opening of Mexican government offices in August, the Company’s employees will vote by mid-September for new union representation. Following completion of the vote, the Company is hopeful it can re-enter the Operations, assess the status of the equipment, mill, and underground workings for restarting operations, and remediate any damage, allowing for the restart of operations by the end of Q3-2020.

The combination of higher silver prices and the re-opening of the mine will allow the Company to target the higher-grade silver ores in the Upper Zone of San Rafael and develop the silver-copper EC120 area moving forward. Mining these higher-grade areas of the Cosalá Operation is expected to significantly increase silver production in the next few years.

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Americas Gold and Silver Corporation

Management’s Discussion & Analysis

For the three and six months ended June 30, 2020

Galena Complex

	Q2 2020		Q2 2019		YTD-2020		YTD-2019
Tonnes Milled		29,458		29,312		61,368		58,736
Silver Grade (g/t)		211		220		223		231
Lead Grade (%)		6.56		5.34		6.58		5.66
Silver Recovery (%)		96.5		96.4		96.0		96.3
Lead Recovery (%)		92.6		92.3		92.4		92.4
Silver Produced (oz)		192,528		200,285		422,803		420,940
Lead Produced (lbs)		3,942,212		3,185,048		8,222,739		6,770,244
Total Gold Equivalent Produced (oz)1		1,875		2,275		4,284		4,938
Silver Sold (oz)		189,808		208,575		426,967		415,743
Lead Sold (lbs)		3,898,220		3,409,368		8,276,883		6,691,944

¹  Throughout this MD&A, gold equivalent production was calculated based on gold and silver production at average gold spot prices and average silver realized prices during each respective period and excludes base metal production.

The Company announced a strategic joint venture agreement with Sprott in September 2019 to recapitalize the mining operations at the Galena Complex. The goal of the joint venture was to position the Galena Complex to significantly grow resources, increase production, and reduce operating costs at the mine over the next two years. The strategic 60/40 joint venture has allowed the Company take corrective action: to advance development, modernize infrastructure, purchase new mining equipment and exploration to define and expand silver resources. The Company has suspended disclosure of certain operating metrics such as cash costs, and all-in sustaining costs for the Galena Complex until the Recapitalization Plan is substantially completed.

The Recapitalization Plan is proceeding on time and on budget. All new equipment has been purchased and reassembled underground with the #3 shaft expected to be operational extended down to the 5500 level before the end of the third quarter. These improvements are expected to allow for higher production in the second half of 2020

Guidance and Outlook

The Company withdrew full-year 2020 guidance during Q2-2020 due to the rapidly changing and on-going uncertainty caused by COVID-19. The virus has resulted in a reduced ability to efficiently meet normal commissioning challenges at Relief Canyon with COVID-19 limitations in place, and delayed the resolution of the Cosalá Operations blockade, and may continue to impact the Company’s operations for all or part of the remainder of 2020. The Company will continue to target safe and effective execution of its operation and production plans.

Outlook for 2021 continues to be 90,000 to 110,000 gold equivalent ounces. The Company does not expect COVID-19 will materially impact its growth plans for 2021 and beyond, to the extent that commercial production is achieved at Relief Canyon on the currently expected timing in 2020, the effects of COVID-19 are able to be effectively managed, and resumption at the Cosalá Operations of normal operations and production occurs by the end of 2020.

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Americas Gold and Silver Corporation

Management’s Discussion & Analysis

For the three and six months ended June 30, 2020

Results of Operations

Analysis of the three months ended June 30, 2020 vs. the three months ended June 30, 2019

The Company recorded a net loss of $10.8 million for the three months ended June 30, 2020 compared to a net loss of $8.0 million for the three months ended June 30, 2019. The increase in net loss was primarily a consequence of the illegal blockade: lower net revenue ($10.3 million), and higher care and maintenance costs ($1.6 million), were offset by lower cost of sales ($7.2 million), and lower depletion and amortization ($1.7 million). The loss was additionally due to increased loss on derivative instruments ($2.4 million), offset by lower transaction costs ($1.2 million), and lower interest and financing expense ($0.9 million), each of which are described in more detail below.

Revenue decreased by $10.3 million from $14.9 million for the three months ended June 30, 2019 to $4.6 million for the three months ended June 30, 2020. Revenue from the Cosalá Operations fell $10.3 million due to the illegal blockade temporarily halting mining and processing operations beginning in late January.

Cost of Sales decreased by $7.2 million from $14.7 million for the three months ended June 30, 2019 to $7.5 million for the three months ended June 30, 2020. Cost of sales from the Cosalá Operations decreased by $7.2 million due to the illegal blockade temporarily halting mining and processing operations beginning late January.

Depletion and amortization decreased by $1.7 million from $3.4 million for the three months ended June 30, 2019 to $1.7 million for the three months ended June 30, 2020 due to the illegal blockade at the Cosalá Operations during the period resulting in a $2.0 million decrease from lower depletion rate based on units of production. The decrease was partially offset by an $0.3 million increase in depletion and amortization from the Galena Complex.

Care and maintenance costs increased by $1.6 million as the Cosalá Operations were determined to be on care and maintenance since the end of January 2020; the majority of the ongoing carrying costs are classified as care and maintenance costs instead of cost of sales.

Transaction costs decreased by $1.2 million primarily due to legal, accounting, and regulatory charges associated with the Pershing Gold acquisition during Q2-2019 which was completed on April 3, 2019; no similar transactions occurred in Q2-2020.

Interest and financing expense decreased by $0.9 million from $1.0 million for the three months ended June 30, 2019 to $0.1 million for the three months ended June 30, 2020. The change was primarily due to interest and deferred costs related to previously outstanding convertible loan payable converted during to equity during Q2-2019.

Gain on derivative instruments decreased by $2.4 million from a $0.4 million gain for the three months ended June 30, 2019 to a $2.0 million loss for the three months ended June 30, 2020, due to $2.0 million in unrealized loss recognized from derivative instruments embedded within the Sandstorm convertible debenture. This derivative is correlated to the Company’s share price and is expected to fluctuate with the share price until the debt is repaid or converted.

Analysis of the six months ended June 30, 2020 vs. the six months ended June 30, 2019

The Company recorded a net loss of $14.9 million for the six months ended June 30, 2020 compared to a net loss of $10.8 million for the six months ended June 30, 2019. The increase in net loss was primarily a consequence of the illegal blockade: lower net revenue ($20.9 million), and higher care and maintenance costs ($2.4 million), which were offset by lower cost of sales ($9.8 million), and lower depletion and amortization ($2.8 million). The loss was additionally offset by higher gain on derivative instruments ($2.6 million), lower transaction costs ($2.1 million), and lower interest and financing expense ($1.5 million), each of which are described in more detail below.

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Americas Gold and Silver Corporation

Management’s Discussion & Analysis

For the three and six months ended June 30, 2020

Revenue decreased by $20.9 million from $32.8 million for the six months ended June 30, 2019 to $11.9 million for the six months ended June 30, 2020. Revenue from the Cosalá Operations fell $21.8 million due to the illegal blockade temporarily halting mining and processing operations beginning late January. This decrease was offset by an $0.9 million increase in silver and lead revenue at the Galena Complex from increased production due to the Recapitalization Plan during period.

Cost of Sales decreased by $9.8 million from $27.2 million for the six months ended June 30, 2019 to $17.4 million for the six months ended June 30, 2020. Cost of sales from the Cosalá Operations decreased by $10.7 million due to the illegal blockade temporarily halting mining and processing operations beginning late January. This was offset by an $0.9 million increase in cost of sales from the Galena Complex due to an increase in tonnage and processing.

Depletion and amortization decreased by $2.8 million from $6.9 million for the six months ended June 30, 2019 to $4.1 million for the six months ended June 30, 2020 due to the illegal blockade at the Cosalá Operations during the period resulting in a $3.6 million decrease from lower depletion rate based on units of production. The decrease was partially offset by an $0.7 million increase in depletion and amortization from the Galena Complex.

Care and maintenance costs increased by $2.4 million as the Cosalá Operations were determined to be on care and maintenance since the end of January 2020; the majority of the ongoing carrying costs are classified as care and maintenance costs instead of cost of sales.

Transaction costs decreased by $2.1 million primarily due to legal, accounting, and regulatory charges associated with the Pershing Gold acquisition during YTD-2019 which was completed on April 3, 2019.

Interest and financing expense decreased by $1.5 million from $1.7 million for the six months ended June 30, 2019 to $0.2 million for the six months ended June 30, 2020. The change was primarily due to interest and deferred costs related to previously outstanding convertible loans payable during the six months ended June 30, 2019.

Gain on derivative instruments increased by $2.6 million from a $0.6 million loss for the six months ended June 30, 2019 to a $2.0 million gain for the six months ended June 30, 2020, due to $2.1 million in unrealized gain recognized from derivative instruments embedded within the Sandstorm convertible debenture. This derivative is correlated to the Company’s share price and is expected to fluctuate with the share price until the debt is repaid or converted.

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Americas Gold and Silver Corporation

Management’s Discussion & Analysis

For the three and six months ended June 30, 2020

Summary of Quarterly Results

The following table presents a summary of the consolidated operating results for each of the most recent eight quarters ending with June 30, 2020.

	Q2 20201			Q1 20201			Q4 20191			Q3 2019			Q2 2019			Q1 2019			Q4 2018			Q3 2018
Revenues ($ M)	$	4.6		$	7.3		$	13.1		$	12.5		$	15.0		$	17.8		$	18.9		$	11.8
Net Income (Loss) ($ M)		(10.8	)		(4.1	)		(14.6	)		(8.8	)		(8.0	)		(2.8	)		(6.8	)		(5.8	)
Comprehensive Income (Loss) ($ M)		(10.8	)		(7.1	)		(15.0	)		(8.7	)		(8.2	)		(3.2	)		(6.2	)		(5.8	)
Silver Produced (oz)		—			39,117			124,678			299,421			345,695			393,824			395,294			323,497
Zinc Produced (lbs)		—			3,221,744			10,796,517			10,103,688			11,150,174			11,263,623			10,223,692			7,906,601
Lead Produced (lbs)		—			1,203,720			3,977,258			6,766,804			7,237,607			8,211,429			9,088,862			7,536,660
Cost of Sales/Ag Eq Oz Produced ($/oz)		—		$	7.19		$	7.11		$	10.80		$	8.75		$	7.11		$	7.87		$	9.08
Cash Cost/Ag Oz Produced ($/oz)2		—		$	(11.32	)	$	(9.20	)	$	12.83		$	8.28		$	(0.50	)	$	1.14		$	4.95
All-In Sustaining Cost/Ag Oz Produced ($/oz)2		—		$	(0.83	)	$	1.05		$	23.01		$	16.15		$	5.54		$	11.78		$	15.94
Current Assets (qtr. end) ($ M)	$	28.4		$	26.9		$	34.9		$	31.4		$	32.4		$	32.5		$	29.4		$	19.0
Current Liabilities (qtr. end) ($ M)		34.1			34.4			34.8			27.0			27.7			27.3			23.0			15.8
Working Capital (qtr. end) ($ M)		(5.7	)		(7.5	)		0.1			4.4			4.7			5.2			6.4			3.2
Total Assets (qtr. end) ($ M)	$	258.1		$	242.6		$	231.0		$	203.5		$	191.6		$	129.6		$	127.2		$	125.8
Total Liabilities (qtr. end) ($ M)		98.0			94.3			92.0			67.4			57.2			46.5			43.0			36.1
Total Equity (qtr. end) ($ M)		160.1			148.3			139.0			136.1			134.4			83.1			84.2			89.7

¹  Consolidated production results exclude the Galena Complex after Q3-2019 due to the Recapitalization Plan.

²  Refer to “Non-IFRS Measures: Cash Cost per Ounce and All-In Sustaining Cost per Ounce” section in this MD&A.

P a g e   12

Americas Gold and Silver Corporation

Management’s Discussion & Analysis

For the three and six months ended June 30, 2020

Liquidity

The change in cash since December 31, 2019 can be summarized as follows (in millions of U.S. dollars):

Opening cash balance as at December 31, 2019	$	20.0
Cash used in operations		(6.3	)
Expenditures on property, plant and equipment		(6.9	)
Relief Canyon development costs		(28.4	)
At-the-market offering		14.3
Bought deal public offering		19.2
Government loan		4.5
Contribution from non-controlling interests		4.0
Glencore pre-payment facility repayments		(1.5	)
Lease payments		(1.8	)
Decrease in trade and other receivables		3.0
Change in inventories		0.6
Change in prepaid expenses		(0.4	)
Change in trade and other payables		(3.9	)
Change in foreign exchange rates		0.5
Closing cash balance as at June 30, 2020	$	16.9

The Company’s cash balance decreased from $20.0 million to $16.9 million with a working capital deficit of $5.7 million mainly due to development costs at Relief Canyon, expenditures of property, plant and equipment at both the Cosalá Operations and Galena Complex, and repayments on outstanding Glencore pre-payment facility. This decrease was offset by the net proceeds received from the at-the-market offering and bought deal public offering, proceeds from the government loan, contributions received from the joint venture with Sprott, and the deferred revenue from Macquarie. Current liabilities as at June 30, 2020 were $34.1 million which is $0.7 million lower than at December 31, 2019, principally due to decrease in trade and other payables during the period related to the Cosalá Operations, and decreased derivative liability associated with the Sandstorm convertible debenture.

The Company operates in a cyclical industry where cash flow has historically been correlated to market prices for commodities. The Company’s cash flow is dependent upon its ability to achieve profitable operations, obtain adequate equity or debt financing, or, alternatively, dispose of its non-core properties on an advantageous basis to fund its near-term operations, development and exploration plans, while meeting production targets at current commodity price levels. Management evaluates viable financing alternatives to ensure sufficient liquidity including debt instruments, concentrate offtake agreements, sale of non-core assets, private equity financing, sale of royalties on its properties, metal prepayment and streaming arrangements, and the issuance of equity. Despite significant recent increases in the market price of gold and silver, several material uncertainties may impact the Company’s liquidity in the short term, such as: the price of commodities, the ongoing ramp-up of leaching operations and gold recovery at Relief Canyon (including the timing of commercial operations), the illegal blockade at the Cosalá Operations, the Galena Complex Recapitalization Plan, and COVID-19. As a result, the Company does not currently generate sufficient operating cash flow to fund capital expenditures to take its mines to commercial production and, therefore, is required to access capital markets or enter into other transactions including financing with strategic shareholders from time to time. Failure to obtain adequate financing on satisfactory terms could have a material adverse effect to the Company’s results of operations or its financial condition. The Company believes that it has sufficient access to capital and cash flow to fund its 2020 operations, development, and exploration plans while meeting production targets at current commodity price levels. In the longer term, as the Cosalá Operations and Galena Complex are optimized, Relief Canyon achieves commercial production and generates sustaining cash flow, and the outlook for gold, silver, zinc, copper, and lead prices remains positive, the Company believes that cash flow will be sufficient to fund ongoing operations.

The Company’s financial instruments consist of cash, trade receivables, restricted cash, trade and other payables, and other long-term liabilities. The fair value of these financial instruments approximates their carrying values, unless otherwise noted. The Company is not exposed to significant interest or credit risk arising from financial instruments. The majority of the funds of the Company are held in accounts at major banks in Canada, Mexico and the United States.

P a g e   13

Americas Gold and Silver Corporation

Management’s Discussion & Analysis

For the three and six months ended June 30, 2020

The Company’s liquidity has been, and will continue to be, impacted by pension funding commitments as required by the terms of the defined benefit pension plans offered to both its hourly and salaried workers at the Galena Complex (see note 14 in the audited consolidated financial statements of the Company and the notes thereto for the year ended December 31, 2019). Both pension plans are under-funded due to actuarial losses incurred from market conditions and changes in discount rates; the Company intends to fund to the minimum levels required by applicable law. The Company currently estimates total annual funding requirements for both Galena Complex pension plans to be approximately $1.2 million per year for each of the next 5 years, with approximately $1.3 million to spend for the remainder of 2020 (as of August 14, 2020). Effects from COVID-19 adds much volatility to market conditions and changes in discount rates which may or may not impact long term annual funding requirements.

The Company evaluates the pension funding status on an annual basis in order to update all material information in its assessment, including updated mortality rates, investment performance, discount rates, contribution status among other information. The pension valuation was remeasured at the end of Q2-2020 and adjusted by approximately $3.5 million as a result of significant market fluctuations from the recent market downturn related to COVID-19 and lowering of interest rates by central banks and governments globally. The Company expects to review the pension valuation quarterly should the effects to the economy from the pandemic continue.

P a g e   14

Americas Gold and Silver Corporation

Management’s Discussion & Analysis

For the three and six months ended June 30, 2020

Capital Resources

The Company’s cash flow is dependent on delivery of its concentrates to market. The Company’s contracts with the concentrate purchasers provide for provisional payments based on timing of concentrate deliveries. The Company has not had any problems collecting payments from concentrate purchasers in a reliable and timely manner and expects no such difficulties in the foreseeable future. However, this cash flow is dependent on continued mine production which can be subject to interruption for various reasons including fluctuations in metal prices and concentrate shipment difficulties. Additionally, unforeseen cessation in the counterparty’s capabilities could severely impact the Company’s capital resources.

The Company made capital expenditures of $35.4 million during the six months ended June 30, 2020 (2019: $10.4 million), of which $26.3 million was spent towards drilling and underground development costs, while $9.1 million was spent on purchase of property, plant and equipment. The Company expects to have sufficient funding and access to capital for budgeted fiscal 2020 capital expenditures.

The following table sets out the Company’s contractual obligations as of June 30, 2020:

	Total		Less than 1 year		2-3 years		4-5 years		Over 5 years
Trade and other payables	$	18,673	$	18,673	$	—	$	—	$	—
Glencore pre-payment facility		4,112		4,112		—		—		—
Interest on Glencore pre-payment facility		90		90		—		—		—
Convertible debenture		10,000		—		10,000		—		—
Interest on convertible debenture		1,655		600		1,055				—
Government loan		4,499		—		4,499		—		—
Projected pension contributions		7,037		1,948		2,521		2,041		527
Decommissioning provision		9,690		15		189		—		9,486
Other long-term liabilities		5,848		—		5,289		—		559
Total	$	61,604	$	25,438	$	23,553	$	2,041	$	10,572

1 – Minimum lease payments in respect to lease liabilities are included in trade and other payables and other long-term liabilities. Further details available in Note 20 of the unaudited condensed interim consolidated financial statements for the three and six months ended June 30, 2020.

2 – Certain of these estimates are dependent on market conditions and assumed rates of return on assets. Therefore, the estimated obligation of the Company may vary over time.

Off-Balance Sheet Arrangements

As of the date of this filing, the Company does not have any off-balance sheet arrangements that have, or are reasonably likely to have, a current or future effect on the results of operations or financial condition of the Company including, without limitation, such considerations as liquidity and capital resources that have not previously been discussed.

Transactions with Related Parties

There were no related party transactions for the six months ended March 31, 2020.

P a g e   15

Americas Gold and Silver Corporation

Management’s Discussion & Analysis

For the three and six months ended June 30, 2020

Risk Factors

The business of the Company is subject to a substantial number of risks and uncertainties. In addition to considering the information disclosed in the forward-looking statements, financial statements and the other publicly filed documentation regarding the Company available on SEDAR at www.sedar.com, on EDGAR at www.sec.gov, and on the Company’s website at www.americas-gold.com, the reader should carefully consider each of, and the cumulative effect of, the risk factors relating to the Company found under the heading “Risk Factors” in the Company’s Annual Information Form dated March 9, 2020 or the Company’s MD&A for the year ended December 31, 2019 dated March 9, 2020, or the Company’s recent Prospectus Supplement dated May 7, 2020. The Company updated its risk factors for the COVID-19 Public Health Crisis in its Management’s Discussion and Analysis for the three months ended March 31, 2020 dated May 15, 2020. Any of these risk elements could have material adverse effects on the business of the Company. See note 24 – Financial risk management of the Company’s audited consolidated financial statements for the year ended December 31, 2019.

COVID-19 pandemic has and is expected to further negatively affect the Company’s business, operations and financial performance.

In March 2020, COVID-19 was characterized as a pandemic by the World Health Organization. Since December 2019, COVID-19 has spread globally with a high concentration of cases in certain regions in which the Company conducts its business operations and sells its product, including the United States, Canada and Mexico. The spread of COVID-19 and resulting tight government controls and travel bans implemented around the world, such as declarations of states of emergency, business closures, manufacturing restrictions and a prolonged period of travel, commercial and/or other similar restrictions and limitations, have caused disruption to global supply chains and economic activity, and the market has entered a period of significantly increased volatility. Volatility and disruptions in the supply and demand for gold, silver and other metals and minerals, global supply chains and financial markets, as well as declining trade and market sentiment and reduced mobility of people, all of which could affect commodity prices, interest rates, credit ratings, credit risk, share prices and inflation. To date, there have been a large number of temporary business closures, quarantines and a general reduction in consumer activity in a number of countries including Canada, the United States, Mexico and China. In March, the Government of Mexico issued a national COVID-19 related decree for the temporary suspension of all non-essential businesses in the country, including all mining operations, until the end of May 2020, which applied to the Company’s Cosalá Operations. At the end of May 2020, the Government of Mexico declared mining an essential activity and mining operations were generally permitted to resume. However, there can be no assurance that a similar decree will not be issued in the future, that mining activities will continue to be deemed an essential business or that mining activities will not otherwise be suspended in the future if COVID-19 continues to persist or there is a resurgence in Mexico or globally. The spread of COVID-19 is currently having an adverse impact on the global economy, the severity and duration of which are difficult to predict, and has adversely affected and is expected that it may have further adverse effects on our financial performance, as well as our ability to successfully execute our operations and business strategies and initiatives. While the restrictions and limitations noted above may be relaxed or rolled back if and when COVID-19 abates, the actions may be reinstated as the pandemic continues to evolve and in response to actual or potential resurgences. The scope and timing of any such reinstatements are difficult to predict and may materially affect the Company’s business, operations and financial condition, and the market price of its common shares or other securities offered hereunder. The risks to the Company of such public health crises also include certain impacts, restrictions and limitations on activities which may result in delays in bringing Relief Canyon to commercial production on the expected timeline, potential for the impairment of the Company’s assets or writedowns in respect of the Company’s material properties, or any part thereof, as a result of prolonged delays, limitations or restrictions on activities at the Company’s properties due to the COVID-19 pandemic and issues relating to its resurgence, risks to employee health and safety, a slowdown or temporary suspension of, or other material limitations or restrictions on, the Company’s activities and operations in geographic locations impacted by an outbreak, including in Mexico and other jurisdictions in which the Company operates, increased costs, including those related to labor and fuel and any additional capital being required related to bringing Relief Canyon to commercial production, the current temporary

P a g e   16

Americas Gold and Silver Corporation

Management’s Discussion & Analysis

For the three and six months ended June 30, 2020

suspension of operations at Cosalá, the related recommencement of such operations and bringing such operations into full production, and our Recapitalization Plan for the Galena Complex, regulatory changes, political or economic instabilities, civil unrest, the availability of industry experts and personnel. At this point, the full extent to which the COVID-19 pandemic will or may impact the Company remains uncertain and these factors are beyond the Company’s control.

The impact of the COVID-19 pandemic continues to create significant uncertainty in the global economy and for the Company’s business, operations, and financial performance.

The COVID-19 pandemic has significantly impacted health and economic conditions throughout the United States, Canada and globally. The global spread of COVID-19 has been, and continues to be, complex and rapidly evolving, with governments, public institutions and other organizations imposing or recommending, and businesses and individuals implementing, restrictions on various activities or other actions to combat its spread, such as travel restrictions and bans, social distancing, quarantine or shelter-in-place directives, limitations on the size of gatherings, closures of non-essential businesses. These restrictions have disrupted and may continue to disrupt economic activity, resulting in reduced commercial and consumer confidence and spending, increased unemployment, closure or restricted operating conditions for businesses, volatility in the global economy, instability in the credit and financial markets, labor shortages, regulatory recommendations to provide relief for impacted consumers, and disruption in supply chains. The extent to which the COVID-19 pandemic impacts the Company’s business, operations, and financial performance is highly uncertain and will depend on numerous evolving factors that we may not be able to accurately predict or assess, including, but not limited to, the severity, extent and duration of the pandemic or any resurgences in the future, including any economic recession resulting from the pandemic, the development of effective vaccines and treatments, and the continued governmental, business and individual actions taken in response to the pandemic. Impacts related to the COVID-19 pandemic are expected to continue to pose risks to the Company’s business for the foreseeable future, may heighten many of the risks and uncertainties identified herein, and could have a material adverse impact on the Company’s business, operations or financial performance in a manner that is difficult to predict.

The Company may issue additional securities which may affect market prices and subject a holder to dilution.

The Company may issue and sell additional securities of the Company to finance its operations or future acquisitions. The Company cannot predict the size of future issuances of securities of the Company or the effect, if any, that future issuances and sales of securities will have on the market price of any securities of the Company that are issued and outstanding from time to time. Sales or issuances of substantial amounts of securities of the Company, or the perception that such sales or issuances could occur, may adversely affect prevailing market prices for the securities of the Company that are issued and outstanding from time to time. With any additional sale or issuance of securities of the Company, holders will suffer dilution with respect to voting power and may experience dilution in the Company’s earnings per share. Moreover, the Company’s base shelf prospectus filing may create a perceived risk of dilution resulting in downward pressure on the price of the Company’s issued and outstanding Common Shares, which could contribute to progressive declines in the prices of such securities.

The Company is subject to significant capital requirements and operating risks associated with its expanded operations and its expanded portfolio of growth projects.

The Company must generate sufficient internal cash flows and/or be able to utilize available financing sources to finance its growth and sustaining capital requirements. The Company could be required to raise significant additional capital through the capital markets and/or incur significant borrowings to meet its capital requirements. These financing requirements could adversely affect the Company’s ability to access the capital markets in the future to meet any external financing requirements the Company might have. If there are significant delays in terms of when any exploration, development and/or expansion projects are

P a g e   17

Americas Gold and Silver Corporation

Management’s Discussion & Analysis

For the three and six months ended June 30, 2020

completed and producing on a commercial and consistent scale, and/or their capital costs were to be significantly higher than estimated, these events could have a significant adverse effect on the Company’s results of operation, cash flow from operations and financial condition. The Company expects that it may require additional financing in connection with the implementation of its business and strategic plans from time to time. The exploration and development of mineral properties, including bringing Relief Canyon into commercial production, and the ongoing operation of mines require a substantial amount of capital and will depend on the Company’s ability to obtain financing through joint ventures, debt financing, equity financing or other means. The Company may accordingly need further capital depending on exploration, development, production and operational results and market conditions, including the prices at which the Company sells its production, or in order to take advantage of further opportunities or acquisitions.

The Company’s financial condition, general market conditions, volatile metals markets, volatile interest rates, a claim against the Company, a significant disruption to the Company’s business or operations or other factors may make it difficult to secure financing necessary for the expansion of mining activities or to take advantage of opportunities for acquisitions. Further, continuing volatility in the credit markets may affect the ability of the Company, or third parties it seeks to do business with, to access those markets. There is no assurance that the Company will be successful in obtaining required financing as and when needed on acceptable terms, if at all. If the Company raises funding by issuing additional equity securities or securities convertible, exercisable or exchangeable for equity securities, such financing may substantially dilute the interests of the shareholders of the Company and reduce the value of their investment. In addition, the Company’s mining operations and processing and related infrastructure facilities are subject to risks normally encountered in the mining and metals industry. Such risks include, without limitation, environmental hazards, industrial accidents, labor disputes, changes in laws, technical difficulties or failures, late delivery of supplies or equipment, unusual or unexpected geological formations or pressures, cave-ins, pit-wall failures, rock falls, unanticipated ground, grade or water conditions, flooding, periodic or extended interruptions due to the unavailability of materials and force majeure events. Such risks could result in damage to, or destruction of, mineral properties or producing facilities, personal injury, environmental damage, delays in mining or processing, losses and possible legal liability. Any prolonged downtime or shutdowns at the Company’s mining or processing operations could materially adversely affect the Company’s business, results of operations, financial condition and liquidity.

Additional risks and uncertainties not known to the Company or that management currently deems immaterial may also impair the Company’s business, condition (financial or otherwise), results of operations, properties or prospects.

Accounting Standards and Pronouncements

Accounting standards issued but not yet applied

There have been no new accounting pronouncements issued in the first half of 2020 that are expected to impact the Company. For a summary of recent pronouncements, see note 3 in the Company’s unaudited condensed interim consolidated financial statements for the three and six months ended June 30, 2020.

Financial Instruments

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

P a g e   18

Americas Gold and Silver Corporation

Management’s Discussion & Analysis

For the three and six months ended June 30, 2020

As at June 30, 2020, the Company does not have any non-hedge foreign exchange forward contracts outstanding. During the six-month period ended June 30, 2020, the Company settled non-hedge foreign exchange forward contracts to buy approximately 26.0 million MXP and recorded a realized gain of nil through profit or loss.

As at June 30, 2020, the Company does not have any non-hedge commodity forward contracts outstanding. During the six-month period ended June 30, 2020, the Company settled non-hedge commodity forward contracts for approximately 1.6 million and 3.3 million pounds of zinc and lead, respectively, and recorded a realized gain of nil through profit or loss.

Capital Structure

The Company is authorized to issue an unlimited number of common and preferred shares, where each common share provides the holder with one vote while preferred shares are non-voting. As at June 30, 2020, there were 106,010,335 common shares and nil preferred shares issued and outstanding.

As at August 14, 2020, there were 106,010,335 common shares and nil preferred shares issued and outstanding, and 7,302,290 options outstanding which are exchangeable in common shares of the Company. The number of common shares issuable on the exercise of warrants is 6,264,520.

Controls and Procedures

Management is responsible for establishing and maintaining disclosure controls and procedures (“DC&P”) and internal controls over financial reporting (“ICFR”), as those terms are defined in National Instrument 52-109 - Certification of Disclosure in Issuers’ Annual and Interim Filings (“NI 52-109”).

The Company’s DC&P are designed to ensure that all important information about the Company, including operating and financial activities, is communicated fully, accurately and in a timely way and that they provide the Company with assurance that the financial reporting is accurate.

ICFR means a process by or under the supervision of the Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”) to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS.

As at June 30, 2020, the Company’s CEO and CFO have certified that the DC&P are effective and that during the quarter ended June 30, 2020, the Company did not make any material changes in the ICFR that materially affected or are reasonably likely to materially affect the Company’s ICFR.

The internal controls are not expected to prevent and detect all misstatements due to error or fraud.

Non-IFRS Measures: Cash Cost per Ounce and All-In Sustaining Cost per Ounce

The Company reports cash cost per ounce and all-in sustaining cost per ounce of silver produced, non-IFRS measures, in accordance with measures widely reported in the silver mining industry as a benchmark for performance measurement. Management uses these measures internally to better assess performance trends and understands that a number of investors, and others who follow the Company’s performance, also assess performance in this manner.

These measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. These measures do not have any standardized meaning and may differ from methods used by other companies with similar descriptions. The methods do not include depletion, depreciation, exploration or corporate administrative costs and is therefore not directly reconcilable to costs as reported under International Financial Reporting Standards. All-in sustaining cost is the silver mining industry cash cost plus all development, capital expenditures, and exploration spending.

P a g e   19

Americas Gold and Silver Corporation

Management’s Discussion & Analysis

For the three and six months ended June 30, 2020

Reconciliation of Consolidated Cash Cost per Ounce

	Q2-20201		Q2-2019			YTD-20201			YTD-2019
Cost of sales (‘000)	$	—	$	14,730		$	2,217		$	27,200
Non-cash costs (‘000)2		—		(597	)		(166	)		210
Direct mining costs (‘000)	$	—	$	14,133		$	2,051		$	27,410
Smelting, refining and royalty expenses (‘000)		—		5,610			1,621			10,699
Less by-product credits (‘000)		—		(16,882	)		(4,115	)		(35,444	)
Total cash costs (‘000)	$	—	$	2,861		$	(443)		$	2,665
Divided by silver produced (oz)		—		345,695			39,117			739,519
Silver cash costs ($/oz)	$	—	$	8.28		$	(11.32)		$	3.60
Reconciliation of Cosalá Operations Cash Cost per Ounce
	Q2-20201		Q2-2019			YTD-20201			YTD-2019
Cost of sales (‘000)	$	—	$	7,160		$	2,217		$	12,899
Non-cash costs (‘000)2		—		(232	)		(166	)		5
Direct mining costs (‘000)	$	—	$	6,928		$	2,051		$	12,904
Smelting, refining and royalty expenses (‘000)		—		4,774			1,621			8,959
Less by-product credits (‘000)		—		(14,359	)		(4,115	)		(29,797	)
Total cash costs (‘000)	$	—	$	(2,657)		$	(443)		$	(7,934)
Divided by silver produced (oz)		—		145,410			39,117			318,579
Silver cash costs ($/oz)	$	—	$	(18.27)		$	(11.32)		$	(24.90)

Reconciliation of Consolidated All-In Sustaining Cost per Ounce
	Q2-20201		Q2-2019		YTD-20201			YTD-2019
Total cash costs (‘000)	$	—	$	2,861	$	(443	)	$	2,665
Capital expenditures (‘000)		—		2,602		157			4,903
Exploration costs (‘000)		—		121		254			197
Total all-in sustaining costs (‘000)	$	—	$	5,584	$	(32)		$	7,765
Divided by silver produced (oz)		—		345,695		39,117			739,519
Silver all-in sustaining costs ($/oz)	$	—	$	16.15	$	(0.83)		$	10.50

Reconciliation of Cosalá Operations All-In Sustaining Cost per Ounce
	Q2-20201		Q2-2019		YTD-20201		YTD-2019
Total cash costs (‘000)	$	—	$	(2,657)	$	(443)	$	(7,934)
Capital expenditures (‘000)		—		936		157		1,732
Exploration costs (‘000)		—		24		254		29
Total all-in sustaining costs (‘000)	$	—	$	(1,697)	$	(32)	$	(6,173)
Divided by silver produced (oz)		—		145,410		39,117		318,579
Silver all-in sustaining costs ($/oz)	$	—	$	(11.66)	$	(0.83)	$	(19.38)

¹  Q2-2020 and YTD-2020 consolidated production results exclude Q2-2020 and YTD-2020 from the Galena Complex due to the Recapitalization Plan.

²  Non-cash costs consist of non-cash related charges to cost of sales including inventory movements and write-downs to net realizable value of concentrates, ore stockpiles, and spare parts and supplies.

P a g e   20

EX-99.3

Exhibit 99.3

FORM 52-109F2

CERTIFICATION OF INTERIM FILINGS

FULL CERTIFICATE

I, Darren Blasutti, Chief Executive Officer of Americas Gold and Silver Corporation, certify the following:

1. Review: I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of Americas Gold and Silver Corporation (the “issuer”) for the interim period ended June 30, 2020.

2. No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.

3. Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.

4. Responsibility: The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, for the issuer.

5. Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer(s) and I have, as at the end of the period covered by the interim filings

(a) designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

(i) material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and

(ii) information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

(b) designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP.

5.1 Control framework: The control framework the issuer’s other certifying officer(s) and I used to design the issuer’s ICFR is the Committee of Sponsoring Organizations framework.

5.2 ICFR – material weakness relating to design: N/A

5.3 Limitation on scope of design: The issuer has disclosed in its interim MD&A

(a) the fact that the issuer’s other certifying officer(s) and I have limited the scope of our design of DC&P and ICFR to exclude controls, policies and procedures of

(i) N/A;

(ii) N/A; or

(iii) a business that the issuer acquired not more than 365 days before the last day of the period covered by the interim filings; and

(b) summary financial information about the proportionately consolidated entity, special purpose entity or business that the issuer acquired that has been proportionately consolidated or consolidated in the issuer’s financial statements.

6. Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on April 1, 2020 and ended on June 30, 2020 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.

Date: August 14, 2020

/s/ Darren Blasutti

Darren Blasutti

President & Chief Executive Officer

EX-99.4

Exhibit 99.4

FORM 52-109F2

CERTIFICATION OF INTERIM FILINGS

FULL CERTIFICATE

I, Warren Varga, Chief Financial Officer of Americas Gold and Silver Corporation, certify the following:

1. Review: I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of Americas Gold and Silver Corporation (the “issuer”) for the interim period ended June 30, 2020.

2. No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.

3. Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.

4. Responsibility: The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, for the issuer.

5. Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer(s) and I have, as at the end of the period covered by the interim filings

(a) designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

(i) material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and

(ii) information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

(b) designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP.

5.1 Control framework: The control framework the issuer’s other certifying officer(s) and I used to design the issuer’s ICFR is the Committee of Sponsoring Organizations framework.

5.2 ICFR – material weakness relating to design: N/A

5.3 Limitation on scope of design: The issuer has disclosed in its interim MD&A

(a) the fact that the issuer’s other certifying officer(s) and I have limited the scope of our design of DC&P and ICFR to exclude controls, policies and procedures of

(i) N/A;

(ii) N/A; or

(iii) a business that the issuer acquired not more than 365 days before the last day of the period covered by the interim filings; and

(b) summary financial information about the proportionately consolidated entity, special purpose entity or business that the issuer acquired that has been proportionately consolidated or consolidated in the issuer’s financial statements.

6. Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on April 1, 2020 and ended on June 30, 2020 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.

Date: August 14, 2020

/s/ Warren Varga

Warren Varga

Chief Financial Officer