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)
|
Form 20-F
|
☐
|
Form 40-F
|
☒ |
|
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.
|
|
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.
|
|
AMERICAS GOLD AND SILVER CORPORATION | |
|
|
|
|
|
|
|
/s/ Peter McRae | |
Date: May 15, 2023 | Peter McRae | |
Chief Legal Officer and Senior Vice President Corporate Affairs |
99.1 |
Interim Financial Statements |
99.2 |
Interim Management Discussion and Analysis |
99.3 |
Certification of Interim Filings - CEO |
99.4 |
Certification of Interim Filings - CFO |
|
March 31,
|
December 31,
|
||||||
As at
|
2023
|
2022
|
||||||
Assets
|
||||||||
Current assets
|
||||||||
Cash and cash equivalents
|
$
|
3,393
|
$
|
1,964
|
||||
Trade and other receivables (Note 5)
|
9,656
|
11,552
|
||||||
Inventories (Note 6)
|
9,727
|
8,835
|
||||||
Prepaid expenses
|
2,529
|
3,030
|
||||||
|
$
|
25,305
|
$
|
25,381
|
||||
Non-current assets
|
||||||||
Restricted cash
|
4,190
|
4,139
|
||||||
Property, plant and equipment (Note 7)
|
162,497
|
161,299
|
||||||
Total assets
|
$
|
191,992
|
$
|
190,819
|
||||
|
||||||||
Liabilities
|
||||||||
Current liabilities
|
||||||||
Trade and other payables
|
$
|
27,711
|
$
|
27,060
|
||||
Metals contract liability (Note 8)
|
12,236
|
11,324
|
||||||
Derivative instruments (Note 9)
|
868
|
991
|
||||||
Shares pending issuance from retraction (Note 9)
|
502
|
-
|
||||||
Pre-payment facility (Note 10)
|
2,250
|
-
|
||||||
Promissory note (Note 11)
|
1,250
|
2,500
|
||||||
Government loan
|
222
|
222
|
||||||
|
45,039
|
42,097
|
||||||
Non-current liabilities
|
||||||||
Other long-term liabilities
|
1,765
|
1,815
|
||||||
Metals contract liability (Note 8)
|
21,887
|
19,665
|
||||||
RoyCap convertible debenture (Note 9)
|
9,852
|
9,621
|
||||||
Promissory note (Note 11)
|
1,250
|
-
|
||||||
Post-employment benefit obligations
|
7,487
|
6,969
|
||||||
Decommissioning provision
|
12,407
|
11,715
|
||||||
Deferred tax liabilities (Note 18)
|
371
|
348
|
||||||
Total liabilities
|
100,058
|
92,230
|
||||||
|
||||||||
Equity
|
||||||||
Share capital (Note 12)
|
451,692
|
449,374
|
||||||
Equity reserve
|
51,710
|
50,905
|
||||||
Foreign currency translation reserve
|
9,652
|
9,797
|
||||||
Deficit
|
(438,841
|
)
|
(428,849
|
)
|
||||
Attributable to shareholders of the Company
|
74,213
|
81,227
|
||||||
Non-controlling interests (Note 14)
|
17,721
|
17,362
|
||||||
Total equity
|
$
|
91,934
|
$
|
98,589
|
||||
|
||||||||
Total liabilities and equity
|
$
|
191,992
|
$
|
190,819
|
|
For the three-month period ended
|
|||||||
|
March 31,
|
March 31,
|
||||||
|
2023
|
2022
|
||||||
|
||||||||
Revenue (Note 15)
|
$
|
22,093
|
$
|
26,436
|
||||
|
||||||||
Cost of sales (Note 16)
|
(17,784
|
)
|
(16,619
|
)
|
||||
Depletion and amortization (Note 7)
|
(5,117
|
)
|
(5,760
|
)
|
||||
Care and maintenance costs
|
(1,136
|
)
|
(1,323
|
)
|
||||
Corporate general and administrative (Note 17)
|
(2,351
|
)
|
(2,649
|
)
|
||||
Exploration costs
|
(655
|
)
|
(1,086
|
)
|
||||
Accretion on decommissioning provision
|
(141
|
)
|
(84
|
)
|
||||
Interest and financing expense
|
(2,330
|
)
|
(1,027
|
)
|
||||
Foreign exchange gain (loss)
|
(451
|
)
|
710
|
|||||
Loss on metals contract liability (Note 8)
|
(2,554
|
)
|
(2,752
|
)
|
||||
Other gain on derivatives (Note 9)
|
92
|
22
|
||||||
Gain on government loan forgiveness
|
-
|
4,277
|
||||||
Income (loss) before income taxes
|
(10,334
|
)
|
145
|
|||||
Income tax expense (Note 18)
|
(190
|
)
|
(441
|
)
|
||||
Net loss
|
$
|
(10,524
|
)
|
$
|
(296
|
)
|
||
|
||||||||
Attributable to:
|
||||||||
Shareholders of the Company
|
$
|
(9,738
|
)
|
$
|
(1,412
|
)
|
||
Non-controlling interests (Note 14)
|
(786
|
)
|
1,116
|
|||||
Net loss
|
$
|
(10,524
|
)
|
$
|
(296
|
)
|
||
|
||||||||
Other comprehensive income (loss)
|
||||||||
Items that will not be reclassified to net loss
|
||||||||
Remeasurement of post-employment benefit obligations
|
$
|
(424
|
)
|
$
|
2,998
|
|||
Items that may be reclassified subsequently to net loss
|
||||||||
Foreign currency translation reserve
|
(145
|
)
|
145
|
|||||
Other comprehensive income (loss)
|
(569
|
)
|
3,143
|
|||||
Comprehensive income (loss)
|
$
|
(11,093
|
)
|
$
|
2,847
|
|||
|
||||||||
Attributable to:
|
||||||||
Shareholders of the Company
|
$
|
(10,137
|
)
|
$
|
532
|
|||
Non-controlling interests (Note 14)
|
(956
|
)
|
2,315
|
|||||
Comprehensive income (loss)
|
$
|
(11,093
|
)
|
$
|
2,847
|
|||
|
||||||||
Loss per share attributable to shareholders of the Company
|
||||||||
Basic and diluted
|
(0.05
|
)
|
(0.01
|
)
|
||||
|
||||||||
Weighted average number of common shares
|
||||||||
outstanding
|
||||||||
Basic and diluted (Note 13)
|
206,204,961
|
172,903,384
|
|
Foreign
|
|||||||||||||||||||||||||||||||
|
Share capital
|
currency
|
Attributable
|
Non-
|
||||||||||||||||||||||||||||
|
Common
|
Equity
|
translation
|
to shareholders
|
controlling
|
Total
|
||||||||||||||||||||||||||
|
Shares
|
Amount
|
reserve
|
reserve
|
Deficit
|
of the Company
|
interests
|
equity
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||
Balance at January 1, 2023
|
204,456
|
$
|
449,374
|
$
|
50,905
|
$
|
9,797
|
$
|
(428,849
|
)
|
$
|
81,227
|
$
|
17,362
|
$
|
98,589
|
||||||||||||||||
Net loss for the period
|
-
|
-
|
-
|
-
|
(9,738
|
)
|
(9,738
|
)
|
(786
|
)
|
(10,524
|
)
|
||||||||||||||||||||
Other comprehensive loss for the period
|
-
|
-
|
-
|
(145
|
)
|
(254
|
)
|
(399
|
)
|
(170
|
)
|
(569
|
)
|
|||||||||||||||||||
Contribution from non-controlling interests
|
-
|
-
|
-
|
-
|
-
|
-
|
1,315
|
1,315
|
||||||||||||||||||||||||
At-the-market offering
|
4,548
|
2,318
|
-
|
-
|
-
|
2,318
|
-
|
2,318
|
||||||||||||||||||||||||
Retraction of RoyCap convertible debenture
|
-
|
-
|
(66
|
)
|
-
|
-
|
(66
|
)
|
-
|
(66
|
)
|
|||||||||||||||||||||
Share-based payments
|
-
|
-
|
871
|
-
|
-
|
871
|
-
|
871
|
||||||||||||||||||||||||
Balance at March 31, 2023
|
209,004
|
$
|
451,692
|
$
|
51,710
|
$
|
9,652
|
$
|
(438,841
|
)
|
$
|
74,213
|
$
|
17,721
|
$
|
91,934
|
||||||||||||||||
|
||||||||||||||||||||||||||||||||
Balance at January 1, 2022
|
165,145
|
$
|
423,098
|
$
|
51,088
|
$
|
6,833
|
$
|
(387,949
|
)
|
$
|
93,070
|
$
|
10,765
|
$
|
103,835
|
||||||||||||||||
Net income (loss) for the period
|
-
|
-
|
-
|
-
|
(1,412
|
)
|
(1,412
|
)
|
1,116
|
(296
|
)
|
|||||||||||||||||||||
Other comprehensive income for the period
|
-
|
-
|
-
|
145
|
1,799
|
1,944
|
1,199
|
3,143
|
||||||||||||||||||||||||
Contribution from non-controlling interests
|
-
|
-
|
-
|
-
|
-
|
-
|
974
|
974
|
||||||||||||||||||||||||
At-the-market offering
|
12,213
|
10,184
|
-
|
-
|
-
|
10,184
|
-
|
10,184
|
||||||||||||||||||||||||
Sandstorm private placement
|
2,120
|
2,476
|
-
|
-
|
-
|
2,476
|
-
|
2,476
|
||||||||||||||||||||||||
Retraction of RoyCap convertible debenture
|
1,065
|
932
|
(191
|
)
|
-
|
-
|
741
|
-
|
741
|
|||||||||||||||||||||||
Share-based payments
|
-
|
-
|
1,054
|
-
|
-
|
1,054
|
-
|
1,054
|
||||||||||||||||||||||||
Balance at March 31, 2022
|
180,543
|
$
|
436,690
|
$
|
51,951
|
$
|
6,978
|
$
|
(387,562
|
)
|
$
|
108,057
|
$
|
14,054
|
$
|
122,111
|
|
March 31,
|
March 31,
|
||||||
|
2023
|
2022
|
||||||
Cash flow generated from (used in)
|
||||||||
|
||||||||
Operating activities
|
||||||||
Net loss for the period
|
$
|
(10,524
|
)
|
$
|
(296
|
)
|
||
Adjustments for the following items:
|
||||||||
Depletion and amortization
|
5,117
|
5,760
|
||||||
Income tax expense
|
190
|
441
|
||||||
Accretion and decommissioning costs
|
141
|
84
|
||||||
Share-based payments
|
871
|
1,054
|
||||||
Provision on other long-term liabilities
|
33
|
14
|
||||||
Interest and financing expense
|
1,202
|
684
|
||||||
Net charges on post-employment benefit obligations
|
94
|
217
|
||||||
Inventory write-downs
|
322
|
38
|
||||||
Loss on metals contract liability
|
2,554
|
2,752
|
||||||
Other gain on derivatives
|
(92
|
)
|
(22
|
)
|
||||
Gain on government loan forgiveness
|
-
|
(4,277
|
)
|
|||||
Changes in non-cash working capital items:
|
||||||||
Trade and other receivables
|
1,896
|
(3,202
|
)
|
|||||
Inventories
|
(1,675
|
)
|
346
|
|||||
Prepaid expenses
|
501
|
258
|
||||||
Trade and other payables
|
1,030
|
(5,674
|
)
|
|||||
Net cash generated from (used in) operating activities
|
1,660
|
(1,823
|
)
|
|||||
|
||||||||
Investing activities
|
||||||||
Expenditures on property, plant and equipment
|
(5,764
|
)
|
(3,480
|
)
|
||||
Net cash used in investing activities
|
(5,764
|
)
|
(3,480
|
)
|
||||
|
||||||||
Financing activities
|
||||||||
Glencore pre-payment facility
|
-
|
|||||||
Pre-payment facilities
|
2,250
|
(1,451
|
)
|
|||||
Lease payments
|
(629
|
)
|
(841
|
)
|
||||
At-the-market offerings
|
2,318
|
10,184
|
||||||
Sandstorm private placement
|
-
|
2,476
|
||||||
Metals contract liability
|
389
|
(1,980
|
)
|
|||||
Contribution from non-controlling interests
|
1,315
|
974
|
||||||
Net cash generated from financing activities
|
5,643
|
9,362
|
||||||
|
||||||||
Effect of foreign exchange rate changes on cash
|
(110
|
)
|
185
|
|||||
Increase in cash and cash equivalents
|
1,429
|
4,244
|
||||||
Cash and cash equivalents, beginning of period
|
1,964
|
2,900
|
||||||
Cash and cash equivalents, end of period
|
$
|
3,393
|
$
|
7,144
|
||||
|
||||||||
Cash and cash equivalents consist of:
|
||||||||
Cash
|
$
|
3,393
|
$
|
7,144
|
||||
|
||||||||
Interest paid during the period
|
$
|
475
|
$
|
492
|
|
March 31,
|
December 31,
|
||||||
|
2023
|
2022
|
||||||
|
||||||||
Trade receivables
|
$
|
5,882
|
$
|
5,624
|
||||
Value added taxes receivable
|
208
|
-
|
||||||
Other receivables
|
3,566
|
5,928
|
||||||
|
$
|
9,656
|
$
|
11,552
|
|
March 31,
|
December 31,
|
||||||
|
2023
|
2022
|
||||||
|
||||||||
Concentrates
|
$
|
1,912
|
$
|
1,694
|
||||
Finished goods
|
123
|
368
|
||||||
In-circuit work in progress
|
329
|
205
|
||||||
Ore stockpiles
|
1,571
|
898
|
||||||
Spare parts and supplies
|
5,792
|
5,670
|
||||||
|
$
|
9,727
|
$
|
8,835
|
|
Corporate
|
|||||||||||||||||||||||
|
Mining
|
Non-producing
|
Plant and
|
Right-of-use
|
office
|
|||||||||||||||||||
|
interests
|
properties
|
equipment
|
lease assets
|
equipment
|
Total
|
||||||||||||||||||
|
||||||||||||||||||||||||
Cost
|
||||||||||||||||||||||||
Balance at January 1, 2022
|
$
|
208,266
|
$
|
12,469
|
$
|
110,273
|
$
|
11,373
|
$
|
240
|
$
|
342,621
|
||||||||||||
Asset additions
|
9,302
|
-
|
10,304
|
720
|
(4
|
)
|
20,322
|
|||||||||||||||||
Change in decommissioning provision
|
(2,156
|
)
|
-
|
-
|
-
|
-
|
(2,156
|
)
|
||||||||||||||||
Balance at December 31, 2022
|
215,412
|
12,469
|
120,577
|
12,093
|
236
|
360,787
|
||||||||||||||||||
Asset additions
|
2,328
|
-
|
3,436
|
-
|
-
|
5,764
|
||||||||||||||||||
Change in decommissioning provision
|
551
|
-
|
-
|
-
|
-
|
551
|
||||||||||||||||||
Balance at March 31, 2023
|
$
|
218,291
|
$
|
12,469
|
$
|
124,013
|
$
|
12,093
|
$
|
236
|
$
|
367,102
|
||||||||||||
|
||||||||||||||||||||||||
Accumulated depreciation
|
||||||||||||||||||||||||
and depletion
|
||||||||||||||||||||||||
Balance at January 1, 2022
|
$
|
(101,091
|
)
|
$
|
-
|
$
|
(57,755
|
)
|
$
|
(5,732
|
)
|
$
|
(130
|
)
|
$
|
(164,708
|
)
|
|||||||
Depreciation/depletion for the year
|
(9,918
|
)
|
-
|
(10,077
|
)
|
(1,306
|
)
|
(39
|
)
|
(21,340
|
)
|
|||||||||||||
Impairment for the year
|
(3,539
|
)
|
-
|
(9,901
|
)
|
-
|
-
|
(13,440
|
)
|
|||||||||||||||
Balance at December 31, 2022
|
(114,548
|
)
|
-
|
(77,733
|
)
|
(7,038
|
)
|
(169
|
)
|
(199,488
|
)
|
|||||||||||||
Depreciation/depletion for the period
|
(2,796
|
)
|
-
|
(1,980
|
)
|
(332
|
)
|
(9
|
)
|
(5,117
|
)
|
|||||||||||||
Balance at March 31, 2023
|
$
|
(117,344
|
)
|
$
|
-
|
$
|
(79,713
|
)
|
$
|
(7,370
|
)
|
$
|
(178
|
)
|
$
|
(204,605
|
)
|
|||||||
|
||||||||||||||||||||||||
Carrying value
|
||||||||||||||||||||||||
at December 31, 2022
|
$
|
100,864
|
$
|
12,469
|
$
|
42,844
|
$
|
5,055
|
$
|
67
|
$
|
161,299
|
||||||||||||
at March 31, 2023
|
$
|
100,947
|
$
|
12,469
|
$
|
44,300
|
$
|
4,723
|
$
|
58
|
$
|
162,497
|
|
Three-month
|
Year
|
||||||
|
period ended
|
ended
|
||||||
|
March 31,
|
December 31,
|
||||||
|
2023
|
2022
|
||||||
|
||||||||
Net metals contract liability, beginning of period
|
$
|
30,989
|
$
|
40,905
|
||||
Advance increase (net of financing expense)
|
3,372
|
-
|
||||||
Delivery of metals produced
|
(461
|
)
|
(3,278
|
)
|
||||
Delivery of metals purchased
|
(2,361
|
)
|
(7,436
|
)
|
||||
Revaluation of metals contract liability
|
2,584
|
798
|
||||||
Net metals contract liability, end of period
|
$
|
34,123
|
$
|
30,989
|
||||
|
||||||||
Current portion
|
$
|
12,236
|
$
|
11,324
|
||||
Non-current portion
|
21,887
|
19,665
|
||||||
|
$
|
34,123
|
$
|
30,989
|
|
March 31,
|
December 31,
|
||||||
|
2023
|
2022
|
||||||
|
||||||||
Issued
|
||||||||
209,004,009 (2022: 204,455,721) common shares
|
$
|
451,692
|
$
|
449,374
|
||||
Nil (2022: Nil) preferred shares
|
-
|
-
|
||||||
|
$
|
451,692
|
$
|
449,374
|
|
Three-month
|
Year
|
||||||||||||||
|
period ended
|
ended
|
||||||||||||||
|
March 31,
|
December 31,
|
||||||||||||||
|
2023
|
2022
|
||||||||||||||
|
Weighted
|
Weighted
|
||||||||||||||
|
average
|
average
|
||||||||||||||
|
exercise
|
exercise
|
||||||||||||||
|
Number
|
price
|
Number
|
price
|
||||||||||||
|
(thousands)
|
CAD
|
(thousands)
|
CAD
|
||||||||||||
|
||||||||||||||||
Balance, beginning of period
|
12,367
|
$
|
2.40
|
12,579
|
$
|
2.81
|
||||||||||
Granted
|
4,275
|
0.90
|
3,750
|
1.20
|
||||||||||||
Expired
|
(372
|
)
|
3.10
|
(3,962
|
)
|
2.56
|
||||||||||
Balance, end of period
|
16,270
|
$
|
1.99
|
12,367
|
$
|
2.40
|
|
Weighted
|
|||||||||||||||||||
|
average
|
Weighted
|
Weighted
|
|||||||||||||||||
|
remaining
|
average
|
average
|
|||||||||||||||||
Exercise
|
contractual
|
exercise
|
exercise
|
|||||||||||||||||
price
|
life
|
Outstanding
|
price
|
Exercisable
|
price
|
|||||||||||||||
CAD
|
(years)
|
(thousands)
|
CAD
|
(thousands)
|
CAD
|
|||||||||||||||
|
||||||||||||||||||||
$0.01 to $1.00
|
2.77
|
4,575
|
$
|
0.89
|
1,525
|
$
|
0.89
|
|||||||||||||
$1.01 to $2.00
|
1.61
|
6,785
|
1.47
|
4,523
|
1.47
|
|||||||||||||||
$3.01 to $4.00
|
1.13
|
4,910
|
3.74
|
4,910
|
3.74
|
|||||||||||||||
|
16,270
|
$
|
1.99
|
10,958
|
$
|
2.40
|
Three-month
|
Three-month
|
|||||||
period ended
|
period ended
|
|||||||
March 31,
|
March 31,
|
|||||||
2023
|
2022
|
|||||||
Expected stock price volatility (1)
|
68
|
%
|
68
|
%
|
||||
Risk free interest rate
|
3.48
|
%
|
1.64
|
%
|
||||
Expected life
|
3 years
|
3 years
|
||||||
Expected forfeiture rate
|
3.85
|
%
|
3.48
|
%
|
||||
Expected dividend yield
|
0
|
%
|
0
|
%
|
||||
Share-based payments included in cost of sales
|
$
|
-
|
$
|
-
|
||||
Share-based payments included in general and
|
||||||||
administrative expenses
|
806
|
993
|
||||||
Total share-based payments
|
$
|
806
|
$
|
993
|
Number of
|
Exercise
|
Issuance
|
Expiry
|
|||
warrants
|
price (CAD)
|
date
|
date
|
|||
1,074,999
|
3.12
|
Oct 2018
|
Oct 1, 2023
|
|||
200,793
|
0.94
|
Nov 2021
|
Nov 22, 2023
|
|||
1,275,792
|
|
|
|
Three-month
|
Three-month
|
|||||
|
period ended
|
period ended
|
|||||
|
March 31,
|
March 31,
|
|||||
|
2023
|
2022
|
|||||
|
|||||||
Basic weighted average number of shares
|
206,204,961
|
172,903,384
|
|||||
Effect of dilutive stock options and warrants
|
-
|
-
|
|||||
Diluted weighted average number of shares
|
206,204,961
|
172,903,384
|
|
March 31,
|
March 31,
|
||||||
|
2023
|
2022
|
||||||
|
||||||||
Silver
|
||||||||
Sales revenue
|
$
|
14,406
|
$
|
10,279
|
||||
Derivative pricing adjustments
|
257
|
769
|
||||||
|
14,663
|
11,048
|
||||||
Zinc
|
||||||||
Sales revenue
|
$
|
9,955
|
$
|
15,600
|
||||
Derivative pricing adjustments
|
(44
|
)
|
1,648.00
|
|||||
|
9,911
|
17,248
|
||||||
Lead
|
||||||||
Sales revenue
|
$
|
6,997
|
$
|
8,666
|
||||
Derivative pricing adjustments
|
(121
|
)
|
76
|
|||||
|
6,876
|
8,742
|
||||||
Other by-products
|
||||||||
Sales revenue
|
$
|
322
|
$
|
189
|
||||
Derivative pricing adjustments
|
36
|
82
|
||||||
|
358
|
271
|
||||||
|
||||||||
Total sales revenue
|
$
|
31,680
|
$
|
34,734
|
||||
Total derivative pricing adjustments
|
128
|
2,575
|
||||||
Gross revenue
|
$
|
31,808
|
$
|
37,309
|
||||
Treatment and selling costs
|
(9,715
|
)
|
(10,873
|
)
|
||||
|
$
|
22,093
|
$
|
26,436
|
|
March 31,
|
March 31,
|
||||||
|
2023
|
2022
|
||||||
|
||||||||
Salaries and employee benefits
|
$
|
8,405
|
$
|
6,825
|
||||
Contract services on site
|
3
|
3
|
||||||
Raw materials and consumables
|
8,159
|
6,276
|
||||||
Utilities
|
1,061
|
1,002
|
||||||
Other costs
|
1,509
|
2,129
|
||||||
Changes in inventories
|
(1,675
|
)
|
346
|
|||||
Inventory write-downs
|
322
|
38
|
||||||
|
$
|
17,784
|
$
|
16,619
|
|
March 31,
|
March 31,
|
||||||
|
2023
|
2022
|
||||||
|
||||||||
Salaries and employee benefits
|
$
|
549
|
$
|
554
|
||||
Directors’ fees
|
86
|
97
|
||||||
Share-based payments
|
806
|
993
|
||||||
Professional fees
|
340
|
606
|
||||||
Office and general
|
570
|
399
|
||||||
|
$
|
2,351
|
$
|
2,649
|
March 31,
|
December 31,
|
|||||||
2023
|
2022
|
|||||||
Property, plant and equipment
|
$
|
808
|
$
|
815
|
||||
Other
|
380
|
333
|
||||||
Total deferred tax liabilities
|
1,188
|
1,148
|
||||||
Provisions and reserves
|
(817
|
)
|
(800
|
)
|
||||
Net deferred tax liabilities
|
$
|
371
|
$
|
348
|
|
March 31, 2023
|
|||||||||||||||||||
|
Less than
|
Over 5
|
||||||||||||||||||
|
Total
|
1 year
|
2-3 years
|
4-5 years
|
years
|
|||||||||||||||
|
||||||||||||||||||||
Trade and other payables
|
$
|
27,711
|
$
|
27,711
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||
Pre-payment facility
|
2,250
|
2,250
|
-
|
-
|
-
|
|||||||||||||||
Promissory note
|
2,500
|
1,250
|
1,250
|
-
|
-
|
|||||||||||||||
Interest on promissory note
|
184
|
147
|
37
|
-
|
-
|
|||||||||||||||
RoyCap convertible debenture
|
12,636
|
-
|
12,636
|
-
|
-
|
|||||||||||||||
Interest on RoyCap convertible debenture
|
1,302
|
1,204
|
98
|
-
|
-
|
|||||||||||||||
Government loan
|
222
|
222
|
-
|
-
|
-
|
|||||||||||||||
Metals contract liability
|
34,123
|
12,236
|
21,887
|
-
|
-
|
|||||||||||||||
Projected pension contributions
|
5,196
|
930
|
1,709
|
1,836
|
721
|
|||||||||||||||
Decommissioning provision
|
20,155
|
-
|
-
|
-
|
20,155
|
|||||||||||||||
Other long-term liabilities
|
1,765
|
-
|
741
|
456
|
568
|
|||||||||||||||
|
$
|
108,044
|
$
|
45,950
|
$
|
38,358
|
$
|
2,292
|
$
|
21,444
|
|
March 31, 2023
|
|||||||||||||||||||
|
Less than
|
Over 5
|
||||||||||||||||||
|
Total
|
1 year
|
2-3 years
|
4-5 years
|
years
|
|||||||||||||||
|
||||||||||||||||||||
Trade and other payables
|
$
|
1,945
|
$
|
1,945
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||
Other long-term liabilities
|
1,197
|
-
|
741
|
456
|
-
|
|||||||||||||||
|
$
|
3,142
|
$
|
1,945
|
$
|
741
|
$
|
456
|
$
|
-
|
|
Three-month
|
Year
|
||||||
|
period ended
|
ended
|
||||||
|
March 31,
|
December 31,
|
||||||
|
2023
|
2022
|
||||||
|
||||||||
Lease liabilities, beginning of period
|
$
|
3,142
|
$
|
4,774
|
||||
Additions
|
-
|
720
|
||||||
Lease principal payments
|
(581
|
)
|
(2,352
|
)
|
||||
Lease interest payments
|
(48
|
)
|
(1,040
|
)
|
||||
Accretion on lease liabilities
|
629
|
1,040
|
||||||
Lease liabilities, end of period
|
$
|
3,142
|
$
|
3,142
|
(1)
|
Interest rate risk
|
(2)
|
Currency risk
|
|
As at March 31, 2023
|
|||||||
|
CAD
|
MXN
|
||||||
|
||||||||
Cash and cash equivalents
|
$
|
27
|
$
|
1,347
|
||||
Trade and other receivables
|
45
|
1,954
|
||||||
Trade and other payables
|
2,318
|
13,832
|
|
CAD/USD
|
MXN/USD
|
||||||
|
Exchange rate
|
Exchange rate
|
||||||
|
+/- 10%
|
|
+/- 10%
|
|
||||
|
||||||||
Approximate impact on:
|
||||||||
Net loss
|
$
|
393
|
$
|
789
|
||||
Other comprehensive loss
|
27
|
(12
|
)
|
(3)
|
Price risk
|
•
|
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.
|
•
|
Metals contract liability: Fixed and variable deliveries of precious metals are classified and measured as financial liabilities at fair value through profit or loss determined using forward commodity pricing
curves at end of the reporting period.
|
•
|
Convertible debenture and promissory note: The principal portion of the convertible debenture and promissory note are initially measured at fair value and subsequently carried at amortized cost.
|
•
|
Embedded derivatives: Revenues from the sale of metals produced from silver sales contracts since the commencement of commercial production are based on provisional prices at the time of shipment. Variations
between the price recorded at the time of sale and the actual final price received from the customer are caused by changes in market prices for metals sold and result in an embedded derivative in revenues and accounts receivable.
|
•
|
Derivatives: The Company uses derivative and non-derivative instruments to manage financial risks, including commodity, interest rate, and foreign exchange risks. The use of derivative contracts is governed
by documented risk management policies and approved limits. The Company does not use derivatives for speculative purposes. The fair value of the Company’s derivative instruments is based on quoted market prices for similar instruments and
at market prices at the valuation date.
|
•
|
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.
|
•
|
Level 2 inputs are quoted prices in markets that are not active, quoted prices for similar assets or liabilities in active markets, inputs other than quoted prices that are observable for the asset or
liability (for example, interest rate and yield curves observable at commonly quoted intervals, forward pricing curves used to value currency and commodity contracts and volatility measurements used to value option contracts), or inputs
that are derived principally from or corroborated by observable market data or other means.
|
•
|
Level 3 inputs are unobservable (supported by little or no market activity).
|
|
March 31,
|
December 31,
|
||||||
|
2023
|
2022
|
||||||
|
||||||||
Level 1
|
||||||||
Cash and cash equivalents
|
$
|
3,393
|
$
|
1,964
|
||||
Restricted cash
|
4,190
|
4,139
|
||||||
|
||||||||
Level 2
|
||||||||
Trade and other receivables
|
9,656
|
11,552
|
||||||
Derivative instruments
|
868
|
991
|
||||||
Metals contract liability
|
34,123
|
30,989
|
||||||
|
||||||||
Amortized cost
|
||||||||
Pre-payment facility
|
2,250
|
-
|
||||||
Promissory note
|
2,500
|
2,500
|
||||||
Government loan
|
222
|
222
|
||||||
RoyCap convertible debenture
|
9,852
|
9,621
|
|
As at March 31, 2023
|
As at December 31, 2022
|
||||||||||||||||||||||||||||||||||||||
|
Cosalá
Operations
|
Galena
Complex
|
Relief
Canyon
|
Corporate
and Other
|
Total
|
Cosalá
Operations
|
Galena
Complex
|
Relief
Canyon
|
Corporate
and Other
|
Total
|
||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents
|
$
|
1,752
|
$
|
984
|
$
|
475
|
$
|
182
|
$
|
3,393
|
$
|
317
|
$
|
204
|
$
|
717
|
$
|
726
|
$
|
1,964
|
||||||||||||||||||||
Trade and other receivables
|
5,916
|
3,694
|
1
|
45
|
9,656
|
3,921
|
7,593
|
-
|
38
|
11,552
|
||||||||||||||||||||||||||||||
Inventories
|
6,364
|
2,771
|
592
|
-
|
9,727
|
5,390
|
2,727
|
718
|
-
|
8,835
|
||||||||||||||||||||||||||||||
Prepaid expenses
|
744
|
690
|
746
|
349
|
2,529
|
745
|
1,232
|
452
|
601
|
3,030
|
||||||||||||||||||||||||||||||
Restricted cash
|
151
|
53
|
3,986
|
-
|
4,190
|
141
|
53
|
3,945
|
-
|
4,139
|
||||||||||||||||||||||||||||||
Property, plant and equipment
|
51,525
|
73,194
|
37,064
|
714
|
162,497
|
52,141
|
70,479
|
37,927
|
752
|
161,299
|
||||||||||||||||||||||||||||||
Total assets
|
$
|
66,452
|
$
|
81,386
|
$
|
42,864
|
$
|
1,290
|
$
|
191,992
|
$
|
62,655
|
$
|
82,288
|
$
|
43,759
|
$
|
2,117
|
$
|
190,819
|
||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
Trade and other payables
|
$
|
14,869
|
$
|
6,445
|
$
|
3,224
|
$
|
3,173
|
$
|
27,711
|
$
|
12,861
|
$
|
8,029
|
$
|
2,658
|
$
|
3,512
|
$
|
27,060
|
||||||||||||||||||||
Derivative instruments
|
-
|
-
|
-
|
868
|
868
|
-
|
-
|
-
|
991
|
991
|
||||||||||||||||||||||||||||||
Shares pending issuance from retraction
|
-
|
-
|
-
|
502
|
502
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||
Pre-payment facility
|
-
|
2,250
|
-
|
-
|
2,250
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||
Other long-term liabilities
|
-
|
1,173
|
-
|
592
|
1,765
|
-
|
1,192
|
-
|
623
|
1,815
|
||||||||||||||||||||||||||||||
Metals contract liability
|
-
|
-
|
-
|
34,123
|
34,123
|
-
|
-
|
-
|
30,989
|
30,989
|
||||||||||||||||||||||||||||||
RoyCap convertible debenture
|
-
|
-
|
-
|
9,852
|
9,852
|
-
|
-
|
-
|
9,621
|
9,621
|
||||||||||||||||||||||||||||||
Promissory note
|
-
|
-
|
-
|
2,500
|
2,500
|
-
|
-
|
-
|
2,500
|
2,500
|
||||||||||||||||||||||||||||||
Government loan
|
-
|
222
|
-
|
-
|
222
|
-
|
222
|
-
|
-
|
222
|
||||||||||||||||||||||||||||||
Post-employment benefit obligations
|
-
|
7,487
|
-
|
-
|
7,487
|
-
|
6,969
|
-
|
-
|
6,969
|
||||||||||||||||||||||||||||||
Decommissioning provision
|
2,276
|
5,941
|
4,190
|
-
|
12,407
|
2,070
|
5,603
|
4,042
|
-
|
11,715
|
||||||||||||||||||||||||||||||
Deferred tax liabilities
|
371
|
-
|
-
|
-
|
371
|
348
|
-
|
-
|
-
|
348
|
||||||||||||||||||||||||||||||
Total liabilities
|
$
|
17,516
|
$
|
23,518
|
$
|
7,414
|
$
|
51,610
|
$
|
100,058
|
$
|
15,279
|
$
|
22,015
|
$
|
6,700
|
$
|
48,236
|
$
|
92,230
|
Three-month period ended March 31, 2023
|
Three-month period ended March 31, 2022
|
|||||||||||||||||||||||||||||||||||||||
Cosalá
Operations
|
Galena
Complex
|
Relief
Canyon
|
Corporate
and Other
|
Total
|
Cosalá
Operations
|
Galena
Complex |
Relief
Canyon
|
Corporate
and Other
|
Total
|
|||||||||||||||||||||||||||||||
Revenue
|
$
|
11,012
|
$
|
11,009
|
$
|
72
|
$
|
-
|
$
|
22,093
|
$
|
16,111
|
$
|
10,297
|
$
|
28
|
$
|
-
|
$
|
26,436
|
||||||||||||||||||||
Cost of sales
|
(7,582
|
)
|
(9,897
|
)
|
(305
|
)
|
-
|
(17,784
|
)
|
(7,859
|
)
|
(8,695
|
)
|
(65
|
)
|
-
|
(16,619
|
)
|
||||||||||||||||||||||
Depletion and amortization
|
(1,955
|
)
|
(2,150
|
)
|
(973
|
)
|
(39
|
)
|
(5,117
|
)
|
(1,763
|
)
|
(2,144
|
)
|
(1,814
|
)
|
(39
|
)
|
(5,760
|
)
|
||||||||||||||||||||
Care and maintenance costs
|
-
|
(111
|
)
|
(1,025
|
)
|
-
|
(1,136
|
)
|
-
|
(188
|
)
|
(1,135
|
)
|
-
|
(1,323
|
)
|
||||||||||||||||||||||||
Corporate general and administrative
|
-
|
-
|
-
|
(2,351
|
)
|
(2,351
|
)
|
-
|
-
|
-
|
(2,649
|
)
|
(2,649
|
)
|
||||||||||||||||||||||||||
Exploration costs
|
(119
|
)
|
(514
|
)
|
(22
|
)
|
-
|
(655
|
)
|
(434
|
)
|
(571
|
)
|
(81
|
)
|
-
|
(1,086
|
)
|
||||||||||||||||||||||
Accretion on decommissioning provision
|
(49
|
)
|
(53
|
)
|
(39
|
)
|
-
|
(141
|
)
|
(38
|
)
|
(29
|
)
|
(17
|
)
|
-
|
(84
|
)
|
||||||||||||||||||||||
Interest and financing expense
|
(65
|
)
|
(64
|
)
|
(620
|
)
|
(1,581
|
)
|
(2,330
|
)
|
(27
|
)
|
(14
|
)
|
(159
|
)
|
(827
|
)
|
(1,027
|
)
|
||||||||||||||||||||
Foreign exchange gain (loss)
|
(493
|
)
|
-
|
-
|
42
|
(451
|
)
|
62
|
-
|
-
|
648
|
710
|
||||||||||||||||||||||||||||
Loss on metals contract liability
|
-
|
-
|
-
|
(2,554
|
)
|
(2,554
|
)
|
-
|
-
|
-
|
(2,752
|
)
|
(2,752
|
)
|
||||||||||||||||||||||||||
Other gain on derivatives
|
-
|
-
|
-
|
92
|
92
|
-
|
-
|
-
|
22
|
22
|
||||||||||||||||||||||||||||||
Gain on government loan forgiveness
|
-
|
-
|
-
|
-
|
-
|
-
|
4,277
|
-
|
-
|
4,277
|
||||||||||||||||||||||||||||||
Income (loss) before income taxes
|
749
|
(1,780
|
)
|
(2,912
|
)
|
(6,391
|
)
|
(10,334
|
)
|
6,052
|
2,933
|
(3,243
|
)
|
(5,597
|
)
|
145
|
||||||||||||||||||||||||
Income tax expense
|
(190
|
)
|
-
|
-
|
-
|
(190
|
)
|
(441
|
)
|
-
|
-
|
-
|
(441
|
)
|
||||||||||||||||||||||||||
Net income (loss) for the period
|
$
|
559
|
$
|
(1,780
|
)
|
$
|
(2,912
|
)
|
$
|
(6,391
|
)
|
$
|
(10,524
|
)
|
$
|
5,611
|
$
|
2,933
|
$
|
(3,243
|
)
|
$
|
(5,597
|
)
|
$
|
(296
|
)
|
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
|
12
|
Capital Resources
|
14
|
Off-Balance Sheet Arrangements
|
15
|
Transactions with Related Parties
|
15
|
Risk Factors
|
15
|
Accounting Standards and Pronouncements
|
16
|
Financial Instruments
|
16
|
Capital Structure
|
16
|
Controls and Procedures
|
16
|
Technical Information
|
17
|
Non-GAAP and Other Financial Measures
|
17
|
•
|
Revenue of $22.1 million for Q1-2023 representing a decrease of $4.3 million in revenue primarily due to lower realized metals prices during the period, and lower zinc and lead production at the Cosalá Operations and a 17-day maintenance shutdown.
|
•
|
A net loss of $10.5 million for Q1-2023, or an attributable loss of $0.05 per share representing an increase in net loss of $10.2 million compared to Q1-2022, primarily due to $4.3 million lower prices and
lower net revenue, $4.3 million prior period gain on government loan forgiveness, and $1.3 million higher financing expense and lease accretion.
|
•
|
Consolidated attributable production of approximately 1.2 million ounces of silver equivalent1, including 0.5 million ounces of silver, 7.2 million pounds of zinc and 5.5 million pounds of lead, with
cost of sales of $11.43/oz silver equivalent produced1, cash costs of $11.18/oz silver produced1 and all-in sustaining costs of $16.87/oz silver produced1 during the quarter.
|
•
|
Despite a large increase in silver production during the quarter, the Cosalá Operations was impacted by a 17-day maintenance shutdown of its tailings facility in February in order to perform remedial work on a
decant tunnel.
|
•
|
The Galena hoist project remains on track to be completed and be fully operational by the end of Q2-2023. This improvement will support plans to increase production, improve operational flexibility, and improve
operational economics due to the benefits of scaling production on the existing cost base.
|
•
|
Net cash generated from operating activities1 improved by $3.5 million to $1.7 million during Q1-2023 compared to net cash used in operating activities of $1.8 million during Q1-2022.
|
•
|
The Company had a cash and cash equivalents balance of $3.4 million and working capital1 deficit of $19.7 million as at March 31, 2023.
|
o
|
49-626: 650 g/t silver and 11.0% lead (1,054 g/t AgEq2) over 7.7 m3
|
o
|
49-627: 203 g/t silver and 12.5% lead (653 g/t AgEq) over 1.8 m
|
o
|
46-324: 400 g/t silver and 15.0% lead (942 g/t AgEq) over 1.1 m
|
|
2023 Guidance1
|
2024 Outlook1
|
Silver Production (oz)
|
2.2 - 2.6 Moz
|
3.5 - 4 Moz
|
Zinc Production (lb)
|
33 - 37 Mlb
|
23 - 27 Mlb
|
Lead Production (lb)
|
22 - 26 Mlb
|
18 - 22 Mlb
|
Copper Production (lb)
|
-
|
1.5 - 2 Mlb
|
Silver Equivalent Production (oz)
|
5.5 - 6 Moz
|
6.5 - 7 Moz
|
Cash Costs/Ag Oz Production ($/oz)
|
$8.00 - $9.00/oz
|
|
Capital Expenditures - Sustaining ($)
|
$9 - $10 M
|
|
Capital Expenditures - Discretionary ($)
|
$3 - $4 M
|
|
Exploration Drilling - Discretionary ($)
|
$3 - $4 M
|
|
|
Q1-2023
|
Q1-2022
|
||||||
Revenue ($ M)
|
$
|
22.1
|
$
|
26.4
|
||||
Silver Produced (oz)1
|
499,677
|
300,316
|
||||||
Zinc Produced (lb)1
|
7,224,532
|
9,573,243
|
||||||
Lead Produced (lb)1
|
5,542,369
|
6,367,477
|
||||||
Total Silver Equivalent Produced ($/oz)1,2
|
1,183,125
|
1,274,470
|
||||||
Cost of Sales/Ag Eq Oz Produced ($/oz)1,3
|
$
|
11.43
|
$
|
10.26
|
||||
Cash Costs/Ag Oz Produced ($/oz)1,3
|
$
|
11.18
|
$
|
(9.55
|
)
|
|||
All-In Sustaining Costs/Ag Oz Produced ($/oz)1,3
|
$
|
16.87
|
$
|
(2.67
|
)
|
|||
Net Loss ($ M)
|
$
|
(10.5
|
)
|
$
|
(0.3
|
)
|
||
Comprehensive Income (Loss) ($ M)
|
$
|
(11.1
|
)
|
$
|
2.8
|
|
Q1-2023
|
Q1-2022
|
||||||
Tonnes Milled
|
126,281
|
140,592
|
||||||
Silver Grade (g/t)
|
90
|
52
|
||||||
Zinc Grade (%)
|
3.27
|
3.96
|
||||||
Lead Grade (%)
|
1.38
|
1.78
|
||||||
Silver Recovery (%)
|
72.6
|
53.9
|
||||||
Zinc Recovery (%)
|
79.3
|
78.1
|
||||||
Lead Recovery (%)
|
70.9
|
70.1
|
||||||
Silver Produced (oz)
|
265,121
|
126,767
|
||||||
Zinc Produced (lb)
|
7,224,532
|
9,573,243
|
||||||
Lead Produced (lb)
|
2,716,797
|
3,878,247
|
||||||
Total Silver Equivalent Produced ($/oz)1,2
|
827,568
|
990,200
|
||||||
Silver Sold (oz)
|
238,199
|
123,277
|
||||||
Zinc Sold (lb)
|
7,042,978
|
9,148,830
|
||||||
Lead Sold (lb)
|
2,612,243
|
3,764,955
|
||||||
Cost of Sales/Ag Eq Oz Produced ($/oz)2
|
$
|
9.16
|
$
|
7.94
|
||||
Cash Costs/Ag Oz Produced ($/oz)2
|
$
|
4.61
|
$
|
(48.86
|
)
|
|||
All-In Sustaining Costs/Ag Oz Produced ($/oz)2
|
$
|
9.52
|
$
|
(42.51
|
)
|
|
Q1-2023
|
Q1-2022
|
||||||
Tonnes Milled
|
31,201
|
29,800
|
||||||
Silver Grade (g/t)
|
400
|
311
|
||||||
Lead Grade (%)
|
7.30
|
6.66
|
||||||
Silver Recovery (%)
|
97.5
|
97.2
|
||||||
Lead Recovery (%)
|
93.8
|
94.9
|
||||||
Silver Produced (oz)
|
390,927
|
289,249
|
||||||
Lead Produced (lb)
|
4,709,287
|
4,148,717
|
||||||
Total Silver Equivalent Produced ($/oz)1,2
|
592,595
|
473,783
|
||||||
Silver Sold (oz)
|
400,400
|
304,897
|
||||||
Lead Sold (lb)
|
4,639,219
|
4,420,752
|
||||||
Cost of Sales/Ag Eq Oz Produced ($/oz)2
|
$
|
16.70
|
$
|
18.35
|
||||
Cash Costs/Ag Oz Produced ($/oz)2
|
$
|
18.59
|
$
|
19.17
|
||||
All-In Sustaining Costs/Ag Oz Produced ($/oz)2
|
$
|
25.18
|
$
|
26.44
|
||||
All-In Sustaining Costs with Galena
|
||||||||
Recapitalization Plan/Ag Oz Produced ($/oz)2
|
$
|
31.74
|
$
|
31.79
|
Q1
|
Q4
|
Q3
|
Q2
|
Q1
|
Q4
|
Q3
|
Q2
|
|||||||||||||||||||||||||
2023
|
2022
|
2022
|
2022
|
2022
|
2021
|
1,5
|
2021
|
1,5
|
2021
|
1,5
|
||||||||||||||||||||||
Revenue ($ M)
|
$
|
22.1
|
$
|
20.3
|
$
|
18.3
|
$
|
20.0
|
$
|
26.4
|
$
|
14.2
|
$
|
10.9
|
$
|
9.5
|
||||||||||||||||
Net Loss ($ M)
|
(10.5
|
)
|
(11.0
|
)
|
(24.6
|
)
|
(9.3
|
)
|
(0.3
|
)
|
(32.4
|
)
|
(18.6
|
)
|
(17.8
|
)
|
||||||||||||||||
Comprehensive Income (Loss) ($ M)
|
(11.1
|
)
|
(14.3
|
)
|
(20.1
|
)
|
(7.0
|
)
|
2.8
|
(34.9
|
)
|
(19.1
|
)
|
(18.7
|
)
|
|||||||||||||||||
Silver Produced (oz)2
|
499,677
|
377,353
|
331,304
|
299,228
|
300,316
|
61,001
|
-
|
-
|
||||||||||||||||||||||||
Zinc Produced (lb)2
|
7,224,532
|
10,369,679
|
9,434,924
|
9,941,949
|
9,573,243
|
4,164,185
|
-
|
-
|
||||||||||||||||||||||||
Lead Produced (lb)2
|
5,542,369
|
5,926,134
|
5,865,288
|
6,447,775
|
6,367,477
|
1,672,806
|
-
|
-
|
||||||||||||||||||||||||
Cost of Sales/Ag Eq Oz Produced ($/oz)2,3,4
|
$
|
11.43
|
$
|
9.20
|
$
|
10.33
|
$
|
9.76
|
$
|
10.26
|
$
|
7.47
|
-
|
-
|
||||||||||||||||||
Cash Costs/Ag Oz Produced ($/oz)2,3,4
|
$
|
11.18
|
$
|
3.62
|
$
|
10.01
|
$
|
(2.72
|
)
|
$
|
(9.55
|
)
|
$
|
(18.53
|
)
|
-
|
-
|
|||||||||||||||
All-In Sustaining Costs/Ag Oz Produced ($/oz)2,3,4
|
$
|
16.87
|
$
|
14.89
|
$
|
18.66
|
$
|
5.37
|
$
|
(2.67
|
)
|
$
|
(14.67
|
)
|
-
|
-
|
||||||||||||||||
|
||||||||||||||||||||||||||||||||
Current Assets (qtr. end) ($ M)
|
$
|
25.3
|
$
|
25.4
|
$
|
19.3
|
$
|
29.1
|
$
|
29.0
|
$
|
23.5
|
$
|
28.3
|
$
|
29.4
|
||||||||||||||||
Current Liabilities (qtr. end) ($ M)
|
45.0
|
42.1
|
36.0
|
38.1
|
33.5
|
45.6
|
38.2
|
39.0
|
||||||||||||||||||||||||
Working Capital (qtr. end) ($ M)
|
(19.7
|
)
|
(16.7
|
)
|
(16.7
|
)
|
(9.0
|
)
|
(4.5
|
)
|
(22.1
|
)
|
(9.9
|
)
|
(9.6
|
)
|
||||||||||||||||
Total Assets (qtr. end) ($ M)
|
$
|
192.0
|
$
|
190.8
|
$
|
186.5
|
$
|
209.4
|
$
|
215.8
|
$
|
213.4
|
$
|
205.5
|
$
|
207.7
|
||||||||||||||||
Total Liabilities (qtr. end) ($ M)
|
100.1
|
92.2
|
81.0
|
90.2
|
93.7
|
109.6
|
80.8
|
83.3
|
||||||||||||||||||||||||
Total Equity (qtr. end) ($ M)
|
91.9
|
98.6
|
105.5
|
119.2
|
122.1
|
103.8
|
124.7
|
124.4
|
Opening cash balance as at December 31, 2022
|
$
|
2.0
|
||
Cash used in operations
|
(0.1
|
)
|
||
Expenditures on property, plant and equipment
|
(5.8
|
)
|
||
Lease payments
|
(0.6
|
)
|
||
At-the-market offering
|
2.3
|
|||
Pre-payment facility
|
2.2
|
|||
Metals contract liability
|
0.4
|
|||
Contribution from non-controlling interests
|
1.3
|
|||
Decrease in trade and other receivables
|
1.9
|
|||
Change in inventories
|
(1.7
|
)
|
||
Change in prepaid expenses
|
0.5
|
|||
Change in trade and other payables
|
1.0
|
|||
Closing cash balance as at March 31, 2023
|
$
|
3.4
|
|
Less than
|
Over 5
|
||||||||||||||||||
|
Total
|
1 year
|
2-3 years
|
4-5 years
|
years
|
|||||||||||||||
Trade and other payables
|
$
|
27,711
|
$
|
27,711
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||
Pre-payment facility
|
2,250
|
$
|
2,250
|
-
|
-
|
-
|
||||||||||||||
Promissory note
|
2,500
|
1,250
|
1,250
|
-
|
-
|
|||||||||||||||
Interest on promissory note
|
184
|
147
|
37
|
-
|
-
|
|||||||||||||||
RoyCap convertible debenture
|
12,636
|
-
|
12,636
|
-
|
-
|
|||||||||||||||
Interest on RoyCap convertible debenture
|
1,302
|
1,204
|
98
|
-
|
-
|
|||||||||||||||
Government loan
|
222
|
222
|
-
|
-
|
-
|
|||||||||||||||
Metals contract liability
|
34,123
|
12,236
|
21,887
|
-
|
-
|
|||||||||||||||
Projected pension contributions
|
5,196
|
930
|
1,709
|
1,836
|
721
|
|||||||||||||||
Decommissioning provision
|
20,155
|
-
|
-
|
-
|
20,155
|
|||||||||||||||
Other long-term liabilities
|
1,765
|
-
|
741
|
456
|
568
|
|||||||||||||||
Total
|
$
|
108,044
|
$
|
45,950
|
$
|
38,358
|
$
|
2,292
|
$
|
21,444
|
•
|
average realized silver, zinc and lead prices;
|
•
|
cost of sales/Ag Eq oz produced;
|
•
|
cash costs/Ag oz produced;
|
•
|
all-in sustaining costs/Ag oz produced;
|
•
|
net cash generated from operating activities;
|
•
|
working capital; and
|
•
|
silver equivalent production (Ag Eq).
|
Reconciliation of Average Realized Silver, Zinc and Lead Prices
|
||||||||
|
Q1-2023
|
Q1-2022
|
||||||
Gross silver sales revenue ('000)
|
$
|
14,406
|
$
|
10,247
|
||||
Payable metals and fixed pricing adjustments ('000)
|
1
|
(15
|
)
|
|||||
Payable silver sales revenue ('000)
|
$
|
14,407
|
$
|
10,232
|
||||
Divided by silver sold (oz)
|
638,599
|
428,174
|
||||||
Average realized silver price ($/oz)
|
$
|
22.56
|
$
|
23.90
|
||||
|
||||||||
|
Q1-2023
|
Q1-2022
|
||||||
Gross zinc sales revenue ('000)
|
$
|
9,955
|
$
|
15,600
|
||||
Payable metals and fixed pricing adjustments ('000)
|
9
|
13
|
||||||
Payable zinc sales revenue ('000)
|
$
|
9,964
|
$
|
15,613
|
||||
Divided by zinc sold (lb)
|
7,042,978
|
9,148,830
|
||||||
Average realized zinc price ($/lb)
|
$
|
1.41
|
$
|
1.71
|
||||
|
||||||||
|
Q1-2023
|
Q1-2022
|
||||||
Gross lead sales revenue ('000)
|
$
|
6,997
|
$
|
8,666
|
||||
Payable metals and fixed pricing adjustments ('000)
|
7
|
(7
|
)
|
|||||
Payable lead sales revenue ('000)
|
$
|
7,004
|
$
|
8,659
|
||||
Divided by lead sold (lb)
|
7,251,462
|
8,185,707
|
||||||
Average realized lead price ($/lb)
|
$
|
0.97
|
$
|
1.06
|
Reconciliation of Consolidated Cost of Sales/Ag Eq Oz Produced1
|
||||||||
|
Q1-2023
|
Q1-2022
|
||||||
Cost of sales ('000)
|
$
|
17,479
|
$
|
16,554
|
||||
Less non-controlling interests portion ('000)
|
(3,959
|
)
|
(3,478
|
)
|
||||
Attributable cost of sales ('000)
|
$
|
13,520
|
$
|
13,076
|
||||
Divided by silver equivalent produced (oz)
|
1,183,125
|
1,274,470
|
||||||
Cost of sales/Ag Eq oz produced ($/oz)
|
$
|
11.43
|
$
|
10.26
|
Reconciliation of Cosalá Operations Cost of Sales/Ag Eq Oz Produced
|
||||||||
|
Q1-2023
|
Q1-2022
|
||||||
Cost of sales ('000)
|
$
|
7,582
|
$
|
7,859
|
||||
Divided by silver equivalent produced (oz)
|
827,568
|
990,200
|
||||||
Cost of sales/Ag Eq oz produced ($/oz)
|
$
|
9.16
|
$
|
7.94
|
Reconciliation of Galena Complex Cost of Sales/Ag Eq Oz Produced
|
||||||||
|
Q1-2023
|
Q1-2022
|
||||||
Cost of sales ('000)
|
$
|
9,897
|
$
|
8,695
|
||||
Divided by silver equivalent produced (oz)
|
592,595
|
473,783
|
||||||
Cost of sales/Ag Eq oz produced ($/oz)
|
$
|
16.70
|
$
|
18.35
|
Reconciliation of Consolidated Cash Costs/Ag Oz Produced1
|
||||||||
|
Q1-2023
|
Q1-2022
|
||||||
Cost of sales ('000)
|
$
|
17,479
|
$
|
16,554
|
||||
Less non-controlling interests portion ('000)
|
(3,959
|
)
|
(3,478
|
)
|
||||
Attributable cost of sales ('000)
|
13,520
|
13,076
|
||||||
Non-cash costs ('000)
|
279
|
(1,796
|
)
|
|||||
Direct mining costs ('000)
|
$
|
13,799
|
$
|
11,280
|
||||
Smelting, refining and royalty expenses ('000)
|
5,242
|
5,627
|
||||||
Less by-product credits ('000)
|
(13,457
|
)
|
(19,775
|
)
|
||||
Cash costs ('000)
|
$
|
5,584
|
$
|
(2,868
|
)
|
|||
Divided by silver produced (oz)
|
499,677
|
300,316
|
||||||
Cash costs/Ag oz produced ($/oz)
|
$
|
11.18
|
$
|
(9.55
|
)
|
Reconciliation of Cosalá Operations Cash Costs/Ag Oz Produced
|
||||||||
|
Q1-2023
|
Q1-2022
|
||||||
Cost of sales ('000)
|
$
|
7,582
|
$
|
7,859
|
||||
Non-cash costs ('000)
|
292
|
(1,441
|
)
|
|||||
Direct mining costs ('000)
|
$
|
7,874
|
$
|
6,418
|
||||
Smelting, refining and royalty expenses ('000)
|
4,188
|
4,699
|
||||||
Less by-product credits ('000)
|
(10,839
|
)
|
(17,311
|
)
|
||||
Cash costs ('000)
|
$
|
1,223
|
$
|
(6,194
|
)
|
|||
Divided by silver produced (oz)
|
265,121
|
126,767
|
||||||
Cash costs/Ag oz produced ($/oz)
|
$
|
4.61
|
$
|
(48.86
|
)
|
Reconciliation of Galena Complex Cash Costs/Ag Oz Produced
|
||||||||
|
Q1-2023
|
Q1-2022
|
||||||
Cost of sales ('000)
|
$
|
9,897
|
$
|
8,695
|
||||
Non-cash costs ('000)
|
(21
|
)
|
(592
|
)
|
||||
Direct mining costs ('000)
|
$
|
9,876
|
$
|
8,103
|
||||
Smelting, refining and royalty expenses ('000)
|
1,757
|
1,547
|
||||||
Less by-product credits ('000)
|
(4,364
|
)
|
(4,106
|
)
|
||||
Cash costs ('000)
|
$
|
7,269
|
$
|
5,544
|
||||
Divided by silver produced (oz)
|
390,927
|
289,249
|
||||||
Cash costs/Ag oz produced ($/oz)
|
$
|
18.59
|
$
|
19.17
|
Reconciliation of Consolidated All-In Sustaining Costs/Ag Oz Produced1
|
||||||||
|
Q1-2023
|
Q1-2022
|
||||||
Cash costs ('000)
|
$
|
5,584
|
$
|
(2,868
|
)
|
|||
Capital expenditures ('000)
|
2,419
|
1,623
|
||||||
Exploration costs ('000)
|
427
|
444
|
||||||
All-in sustaining costs ('000)
|
$
|
8,430
|
$
|
(801
|
)
|
|||
Divided by silver produced (oz)
|
499,677
|
300,316
|
||||||
All-in sustaining costs/Ag oz produced ($/oz)
|
$
|
16.87
|
$
|
(2.67
|
)
|
Reconciliation of Cosalá Operations All-In Sustaining Costs/Ag Oz Produced
|
||||||||
|
Q1-2023
|
Q1-2022
|
||||||
Cash costs ('000)
|
$
|
1,223
|
$
|
(6,194
|
)
|
|||
Capital expenditures ('000)
|
1,183
|
371
|
||||||
Exploration costs ('000)
|
119
|
434
|
||||||
All-in sustaining costs ('000)
|
$
|
2,525
|
$
|
(5,389
|
)
|
|||
Divided by silver produced (oz)
|
265,121
|
126,767
|
||||||
All-in sustaining costs/Ag oz produced ($/oz)
|
$
|
9.52
|
$
|
(42.51
|
)
|
Reconciliation of Galena Complex All-In Sustaining Costs/Ag Oz Produced
|
||||||||
|
Q1-2023
|
Q1-2022
|
||||||
Cash costs ('000)
|
$
|
7,269
|
$
|
5,544
|
||||
Capital expenditures ('000)
|
2,060
|
2,086
|
||||||
Exploration costs ('000)
|
514
|
17
|
||||||
All-in sustaining costs ('000)
|
$
|
9,843
|
$
|
7,647
|
||||
Galena Complex Recapitalization Plan costs ('000)
|
2,565
|
1,547
|
||||||
All-in sustaining costs with Galena Recapitalization Plan ('000)
|
$
|
12,408
|
$
|
9,194
|
||||
Divided by silver produced (oz)
|
390,927
|
289,249
|
||||||
All-in sustaining costs/Ag oz produced ($/oz)
|
$
|
25.18
|
$
|
26.44
|
||||
All-in sustaining costs with Galena Recapitalization Plan/Ag oz produced ($/oz)
|
$
|
31.74
|
$
|
31.79
|
Reconciliation of Net Cash Generated from Operating Activities
|
||||||||
|
Q1-2023
|
Q1-2022
|
||||||
Cash generated from (used in) operating activities ('000)
|
$
|
(92
|
)
|
$
|
6,449
|
|||
Changes in non-cash working capital items ('000)
|
1,752
|
(8,272
|
)
|
|||||
Net cash generated from (used in) operating activities ('000)
|
$
|
1,660
|
$
|
(1,823
|
)
|
Reconciliation of Working Capital
|
||||||||
|
Q1-2023
|
Q1-2022
|
||||||
Current Assets ('000)
|
$
|
25,305
|
$
|
28,974
|
||||
Less current liabilities ('000)
|
(45,039
|
)
|
(33,540
|
)
|
||||
Working capital ('000)
|
$
|
(19,734
|
)
|
$
|
(4,566
|
)
|
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 March 31, 2023.
|
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
|
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 January 1, 2023 and
ended on March 31, 2023 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.
|
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 March 31, 2023.
|
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
|
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 January 1, 2023 and
ended on March 31, 2023 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.
|