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 |
||
Date: August 14, 2023
|
/s/ Peter McRae
|
|
Peter McRae | ||
Chief Legal Officer and Senior Vice President Corporate Affairs |
Exhibit 99.1 |
|
June 30,
|
December 31,
|
||||||
As at
|
2023
|
2022
|
||||||
Assets
|
||||||||
Current assets
|
||||||||
Cash and cash equivalents
|
$
|
1,627
|
$
|
1,964
|
||||
Trade and other receivables (Note 5)
|
13,043
|
11,552
|
||||||
Inventories (Note 6)
|
8,882
|
8,835
|
||||||
Prepaid expenses
|
3,216
|
3,030
|
||||||
|
$
|
26,768
|
$
|
25,381
|
||||
Non-current assets
|
||||||||
Restricted cash
|
4,247
|
4,139
|
||||||
Property, plant and equipment (Note 7)
|
162,149
|
161,299
|
||||||
Total assets
|
$
|
193,164
|
$
|
190,819
|
||||
|
||||||||
Liabilities
|
||||||||
Current liabilities
|
||||||||
Trade and other payables
|
$
|
25,810
|
$
|
27,060
|
||||
Metals contract liability (Note 8)
|
11,681
|
11,324
|
||||||
Derivative instruments (Note 9)
|
1,320
|
991
|
||||||
Pre-payment facility (Note 10)
|
3,000
|
-
|
||||||
Promissory note (Note 11)
|
625
|
2,500
|
||||||
Royalty payable (Note 12)
|
2,251
|
-
|
||||||
Government loan
|
222
|
222
|
||||||
|
44,909
|
42,097
|
||||||
Non-current liabilities
|
||||||||
Other long-term liabilities
|
1,726
|
1,815
|
||||||
Metals contract liability (Note 8)
|
21,555
|
19,665
|
||||||
RoyCap convertible debenture (Note 9)
|
14,727
|
9,621
|
||||||
Promissory note (Note 11)
|
1,250
|
-
|
||||||
Royalty payable (Note 12)
|
1,838
|
-
|
||||||
Post-employment benefit obligations
|
5,868
|
6,969
|
||||||
Decommissioning provision
|
12,346
|
11,715
|
||||||
Deferred tax liabilities (Note 19)
|
514
|
348
|
||||||
Total liabilities
|
104,733
|
92,230
|
||||||
|
||||||||
Equity
|
||||||||
Share capital (Note 13)
|
453,304
|
449,374
|
||||||
Equity reserve
|
52,168
|
50,905
|
||||||
Foreign currency translation reserve
|
8,499
|
9,797
|
||||||
Deficit
|
(444,218
|
)
|
(428,849
|
)
|
||||
Attributable to shareholders of the Company
|
69,753
|
81,227
|
||||||
Non-controlling interests (Note 15)
|
18,678
|
17,362
|
||||||
Total equity
|
$
|
88,431
|
$
|
98,589
|
||||
|
||||||||
Total liabilities and equity
|
$
|
193,164
|
$
|
190,819
|
|
For the three-month period ended
|
For the six-month period ended
|
||||||||||||||
|
June 30,
|
June 30,
|
June 30,
|
June 30,
|
||||||||||||
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
|
||||||||||||||||
Revenue (Note 16)
|
$
|
24,222
|
$
|
19,948
|
$
|
46,315
|
$
|
46,384
|
||||||||
|
||||||||||||||||
Cost of sales (Note 17)
|
(20,501
|
)
|
(17,718
|
)
|
(38,285
|
)
|
(34,337
|
)
|
||||||||
Depletion and amortization (Note 7)
|
(5,208
|
)
|
(5,959
|
)
|
(10,325
|
)
|
(11,719
|
)
|
||||||||
Care and maintenance costs
|
(860
|
)
|
(1,011
|
)
|
(1,996
|
)
|
(2,334
|
)
|
||||||||
Corporate general and administrative (Note 18)
|
(2,171
|
)
|
(2,051
|
)
|
(4,522
|
)
|
(4,700
|
)
|
||||||||
Exploration costs
|
(945
|
)
|
(914
|
)
|
(1,600
|
)
|
(2,000
|
)
|
||||||||
Accretion on decommissioning provision
|
(140
|
)
|
(102
|
)
|
(281
|
)
|
(186
|
)
|
||||||||
Interest and financing expense
|
(1,821
|
)
|
(1,078
|
)
|
(4,151
|
)
|
(2,105
|
)
|
||||||||
Foreign exchange gain (loss)
|
906
|
(1,903
|
)
|
455
|
(1,193
|
)
|
||||||||||
Gain on disposal of assets
|
85
|
-
|
85
|
-
|
||||||||||||
Gain (loss) on metals contract liability (Note 8)
|
1,701
|
3,186
|
(853
|
)
|
434
|
|||||||||||
Other gain (loss) on derivatives (Note 9)
|
(45
|
)
|
(101
|
)
|
47
|
(79
|
)
|
|||||||||
Fair value loss on royalty payable (Note 12)
|
(240
|
)
|
-
|
(240
|
)
|
-
|
||||||||||
Gain on government loan forgiveness
|
-
|
-
|
-
|
4,277
|
||||||||||||
Loss before income taxes
|
(5,017
|
)
|
(7,703
|
)
|
(15,351
|
)
|
(7,558
|
)
|
||||||||
Income tax expense (Note 19)
|
(2,074
|
)
|
(1,575
|
)
|
(2,264
|
)
|
(2,016
|
)
|
||||||||
Net loss
|
$
|
(7,091
|
)
|
$
|
(9,278
|
)
|
$
|
(17,615
|
)
|
$
|
(9,574
|
)
|
||||
|
||||||||||||||||
Attributable to:
|
||||||||||||||||
Shareholders of the Company
|
$
|
(6,392
|
)
|
$
|
(7,483
|
)
|
$
|
(16,130
|
)
|
$
|
(8,895
|
)
|
||||
Non-controlling interests (Note 15)
|
(699
|
)
|
(1,795
|
)
|
(1,485
|
)
|
(679
|
)
|
||||||||
Net loss
|
$
|
(7,091
|
)
|
$
|
(9,278
|
)
|
$
|
(17,615
|
)
|
$
|
(9,574
|
)
|
||||
|
||||||||||||||||
Other comprehensive income (loss)
|
||||||||||||||||
Items that will not be reclassified to net loss
|
||||||||||||||||
Remeasurement of post-employment benefit obligations
|
$
|
1,692
|
$
|
1,943
|
$
|
1,268
|
$
|
4,941
|
||||||||
Items that may be reclassified subsequently to net loss
|
||||||||||||||||
Foreign currency translation reserve
|
(1,153
|
)
|
251
|
(1,298
|
)
|
396
|
||||||||||
Other comprehensive income (loss)
|
539
|
2,194
|
(30
|
)
|
5,337
|
|||||||||||
Comprehensive loss
|
$
|
(6,552
|
)
|
$
|
(7,084
|
)
|
$
|
(17,645
|
)
|
$
|
(4,237
|
)
|
||||
|
||||||||||||||||
Attributable to:
|
||||||||||||||||
Shareholders of the Company
|
$
|
(6,530
|
)
|
$
|
(6,066
|
)
|
$
|
(16,667
|
)
|
$
|
(5,534
|
)
|
||||
Non-controlling interests (Note 15)
|
(22
|
)
|
(1,018
|
)
|
(978
|
)
|
1,297
|
|||||||||
Comprehensive loss
|
$
|
(6,552
|
)
|
$
|
(7,084
|
)
|
$
|
(17,645
|
)
|
$
|
(4,237
|
)
|
||||
|
||||||||||||||||
Loss per share attributable to shareholders of the Company
|
||||||||||||||||
Basic and diluted
|
(0.03
|
)
|
(0.04
|
)
|
(0.08
|
)
|
(0.05
|
)
|
||||||||
|
||||||||||||||||
Weighted average number of common shares
|
||||||||||||||||
outstanding
|
||||||||||||||||
Basic and diluted (Note 14)
|
211,454,795
|
180,795,755
|
208,844,380
|
176,871,371
|
|
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
|
-
|
-
|
-
|
-
|
(16,130
|
)
|
(16,130
|
)
|
(1,485
|
)
|
(17,615
|
)
|
||||||||||||||||||||
Other comprehensive income (loss) for the period
|
-
|
-
|
-
|
(1,298
|
)
|
761
|
(537
|
)
|
507
|
(30
|
)
|
|||||||||||||||||||||
Contribution from non-controlling interests
|
-
|
-
|
-
|
-
|
-
|
-
|
2,294
|
2,294
|
||||||||||||||||||||||||
At-the-market offering
|
4,548
|
2,310
|
-
|
-
|
-
|
2,310
|
-
|
2,310
|
||||||||||||||||||||||||
Common shares issued
|
679
|
350
|
-
|
-
|
-
|
350
|
-
|
350
|
||||||||||||||||||||||||
Warrants issued
|
-
|
-
|
435
|
-
|
-
|
435
|
-
|
435
|
||||||||||||||||||||||||
Retraction of RoyCap convertible debenture
|
2,424
|
1,270
|
(152
|
)
|
-
|
-
|
1,118
|
-
|
1,118
|
|||||||||||||||||||||||
Amendment of RoyCap convertible debenture
|
-
|
-
|
(272
|
)
|
-
|
-
|
(272
|
)
|
-
|
(272
|
)
|
|||||||||||||||||||||
Share-based payments
|
-
|
-
|
1,252
|
-
|
-
|
1,252
|
-
|
1,252
|
||||||||||||||||||||||||
Balance at June 30, 2023
|
212,107
|
$
|
453,304
|
$
|
52,168
|
$
|
8,499
|
$
|
(444,218
|
)
|
$
|
69,753
|
$
|
18,678
|
$
|
88,431
|
||||||||||||||||
|
||||||||||||||||||||||||||||||||
Balance at January 1, 2022
|
165,145
|
$
|
423,098
|
$
|
51,088
|
$
|
6,833
|
$
|
(387,949
|
)
|
$
|
93,070
|
$
|
10,765
|
$
|
103,835
|
||||||||||||||||
Net loss for the period
|
-
|
-
|
-
|
-
|
(8,895
|
)
|
(8,895
|
)
|
(679
|
)
|
(9,574
|
)
|
||||||||||||||||||||
Other comprehensive income for the period
|
-
|
-
|
-
|
396
|
2,965
|
3,361
|
1,976
|
5,337
|
||||||||||||||||||||||||
Contribution from non-controlling interests
|
-
|
-
|
-
|
-
|
-
|
-
|
1,974
|
1,974
|
||||||||||||||||||||||||
At-the-market offering
|
12,213
|
10,164
|
-
|
-
|
-
|
10,164
|
-
|
10,164
|
||||||||||||||||||||||||
Sandstorm private placements
|
5,290
|
4,630
|
-
|
-
|
-
|
4,630
|
-
|
4,630
|
||||||||||||||||||||||||
Retraction of RoyCap convertible debenture
|
1,629
|
1,377
|
(249
|
)
|
-
|
-
|
1,128
|
-
|
1,128
|
|||||||||||||||||||||||
Share-based payments
|
-
|
-
|
1,717
|
-
|
-
|
1,717
|
-
|
1,717
|
||||||||||||||||||||||||
Balance at June 30, 2022
|
184,277
|
$
|
439,269
|
$
|
52,556
|
$
|
7,229
|
$
|
(393,879
|
)
|
$
|
105,175
|
$
|
14,036
|
$
|
119,211
|
|
June 30,
|
June 30,
|
||||||
|
2023
|
2022
|
||||||
Cash flow generated from (used in)
|
||||||||
|
||||||||
Operating activities
|
||||||||
Net loss for the period
|
$
|
(17,615
|
)
|
$
|
(9,574
|
)
|
||
Adjustments for the following items:
|
||||||||
Depletion and amortization
|
10,325
|
11,719
|
||||||
Income tax expense
|
2,264
|
2,016
|
||||||
Accretion and decommissioning costs
|
281
|
186
|
||||||
Share-based payments
|
1,252
|
1,717
|
||||||
Non-cash expenses from common shares and warrants issued
|
785
|
-
|
||||||
Provision on other long-term liabilities
|
65
|
27
|
||||||
Interest and financing expense
|
1,491
|
860
|
||||||
Net charges on post-employment benefit obligations
|
167
|
361
|
||||||
Inventory write-downs
|
574
|
1,457
|
||||||
Gain on disposal of assets
|
(85
|
)
|
-
|
|||||
Loss (gain) on metals contract liability
|
853
|
(434
|
)
|
|||||
Other loss (gain) on derivatives
|
(47
|
)
|
79
|
|||||
Fair value loss on royalty payable
|
240
|
-
|
||||||
Gain on government loan forgiveness
|
-
|
(4,277
|
)
|
|||||
Changes in non-cash working capital items:
|
||||||||
Trade and other receivables
|
(1,491
|
)
|
3,538
|
|||||
Inventories
|
(1,455
|
)
|
(1,135
|
)
|
||||
Prepaid expenses
|
(186
|
)
|
(1,267
|
)
|
||||
Trade and other payables
|
(1,702
|
)
|
(124
|
)
|
||||
Net cash generated from (used in) operating activities
|
(4,284
|
)
|
5,149
|
|||||
|
||||||||
Investing activities
|
||||||||
Expenditures on property, plant and equipment
|
(11,394
|
)
|
(7,965
|
)
|
||||
Proceeds from disposal of assets
|
810
|
-
|
||||||
Net cash used in investing activities
|
(10,584
|
)
|
(7,965
|
)
|
||||
|
||||||||
Financing activities
|
||||||||
Pre-payment facilities
|
3,000
|
(1,451
|
)
|
|||||
Lease payments
|
(1,956
|
)
|
(1,701
|
)
|
||||
Promissory note repayments
|
(625
|
)
|
(1,250
|
)
|
||||
At-the-market offerings
|
2,310
|
10,164
|
||||||
Sandstorm private placements
|
-
|
4,630
|
||||||
Financing from RoyCap convertible debenture
|
6,020
|
-
|
||||||
Metals contract liability, net
|
681
|
(4,079
|
)
|
|||||
Royalty agreement, net
|
3,849
|
-
|
||||||
Contribution from non-controlling interests
|
2,294
|
1,974
|
||||||
Net cash generated from financing activities
|
15,573
|
8,287
|
||||||
|
||||||||
Effect of foreign exchange rate changes on cash
|
(1,042
|
)
|
453
|
|||||
Increase (decrease) in cash and cash equivalents
|
(337
|
)
|
5,924
|
|||||
Cash and cash equivalents, beginning of period
|
1,964
|
2,900
|
||||||
Cash and cash equivalents, end of period
|
$
|
1,627
|
$
|
8,824
|
||||
|
||||||||
Cash and cash equivalents consist of:
|
||||||||
Cash
|
$
|
1,627
|
$
|
8,824
|
||||
|
||||||||
Interest paid during the period
|
$
|
1,060
|
$
|
965
|
|
June 30,
|
December 31,
|
||||||
|
2023
|
2022
|
||||||
|
||||||||
Trade receivables
|
$
|
9,734
|
$
|
5,624
|
||||
Other receivables
|
3,309
|
5,928
|
||||||
|
$
|
13,043
|
$
|
11,552
|
|
June 30,
|
December 31,
|
||||||
|
2023
|
2022
|
||||||
|
||||||||
Concentrates
|
$
|
1,976
|
$
|
1,694
|
||||
Finished goods
|
199
|
368
|
||||||
In-circuit work in progress
|
259
|
205
|
||||||
Ore stockpiles
|
656
|
898
|
||||||
Spare parts and supplies
|
5,792
|
5,670
|
||||||
|
$
|
8,882
|
$
|
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
|
||||||||||||
Acquisition of Pershing Gold
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
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
|
5,448
|
-
|
5,930
|
171
|
-
|
11,549
|
||||||||||||||||||
Asset disposals
|
-
|
-
|
(79
|
)
|
(646
|
)
|
-
|
(725
|
)
|
|||||||||||||||
Change in decommissioning provision
|
351
|
-
|
-
|
-
|
-
|
351
|
||||||||||||||||||
Balance at June 30, 2023
|
$
|
221,211
|
$
|
12,469
|
$
|
126,428
|
$
|
11,618
|
$
|
236
|
$
|
371,962
|
||||||||||||
|
||||||||||||||||||||||||
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
|
(5,707
|
)
|
-
|
(3,992
|
)
|
(610
|
)
|
(16
|
)
|
(10,325
|
)
|
|||||||||||||
Balance at June 30, 2023
|
$
|
(120,255
|
)
|
$
|
-
|
$
|
(81,725
|
)
|
$
|
(7,648
|
)
|
$
|
(185
|
)
|
$
|
(209,813
|
)
|
|||||||
|
||||||||||||||||||||||||
Carrying value
|
||||||||||||||||||||||||
at December 31, 2022
|
$
|
100,864
|
$
|
12,469
|
$
|
42,844
|
$
|
5,055
|
$
|
67
|
$
|
161,299
|
||||||||||||
at June 30, 2023
|
$
|
100,956
|
$
|
12,469
|
$
|
44,703
|
$
|
3,970
|
$
|
51
|
$
|
162,149
|
|
Six-month
|
Year
|
||||||
|
period ended
|
ended
|
||||||
|
June 30,
|
December 31,
|
||||||
|
2023
|
2022
|
||||||
|
||||||||
Net metals contract liability, beginning of period
|
$
|
30,989
|
$
|
40,905
|
||||
Advance increase (net of financing expense)
|
7,029
|
-
|
||||||
Delivery of metals produced
|
(834
|
)
|
(3,278
|
)
|
||||
Delivery of metals purchased
|
(4,819
|
)
|
(7,436
|
)
|
||||
Revaluation of metals contract liability
|
871
|
798
|
||||||
Net metals contract liability, end of period
|
$
|
33,236
|
$
|
30,989
|
||||
|
||||||||
Current portion
|
$
|
11,681
|
$
|
11,324
|
||||
Non-current portion
|
21,555
|
19,665
|
||||||
|
$
|
33,236
|
$
|
30,989
|
|
June 30,
|
December 31,
|
||||||
|
2023
|
2022
|
||||||
|
||||||||
Issued
|
||||||||
212,107,575 (2022: 204,455,721) common shares
|
$
|
453,304
|
$
|
449,374
|
||||
Nil (2022: Nil) preferred shares
|
-
|
-
|
||||||
|
$
|
453,304
|
$
|
449,374
|
|
Six-month
|
Year
|
||||||||||||||
|
period ended
|
ended
|
||||||||||||||
|
June 30,
|
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
|
2.52
|
4,575
|
$
|
0.89
|
1,525
|
$
|
0.89
|
|||||||||||||
$1.01 to $2.00
|
1.36
|
6,785
|
1.47
|
4,523
|
1.47
|
|||||||||||||||
$3.01 to $4.00
|
0.88
|
4,910
|
3.74
|
4,910
|
3.74
|
|||||||||||||||
|
16,270
|
$
|
1.99
|
10,958
|
$
|
2.40
|
Three-month
|
Three-month
|
Six-month
|
Six-month
|
|||||||||||||
period ended
|
period ended
|
period ended
|
period ended
|
|||||||||||||
June 30,
|
June 30,
|
June 30,
|
June 30,
|
|||||||||||||
2023
|
2022
|
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
|
314
|
598
|
1,120
|
1,591
|
||||||||||||
Total share-based payments
|
$
|
314
|
$
|
598
|
$
|
1,120
|
$
|
1,591
|
Number of
warrants
|
Exercise
price (CAD)
|
Issuance
date
|
Expiry
date
|
1,074,999
|
3.12
|
Oct 2018
|
Oct 1, 2023
|
200,793
|
0.94
|
Nov 2021
|
Nov 22, 2023
|
3,500,000
|
0.80
|
Jun 2023
|
Jun 21, 2026
|
4,775,792
|
|
|
|
|
Three-month
|
Three-month
|
Six-month
|
Six-month
|
||||||||||||
|
period ended
|
period ended
|
period ended
|
period ended
|
||||||||||||
|
June 30,
|
June 30,
|
June 30,
|
June 30,
|
||||||||||||
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
|
||||||||||||||||
Basic weighted average number of shares
|
211,454,795
|
180,795,755
|
208,844,380
|
176,871,371
|
||||||||||||
Effect of dilutive stock options and warrants
|
-
|
-
|
-
|
-
|
||||||||||||
Diluted weighted average number of shares
|
211,454,795
|
180,795,755
|
208,844,380
|
176,871,371
|
|
Three-month
|
Three-month
|
Six-month
|
Six-month
|
||||||||||||
|
period ended
|
period ended
|
period ended
|
period ended
|
||||||||||||
|
June 30,
|
June 30,
|
June 30,
|
June 30,
|
||||||||||||
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
|
||||||||||||||||
Silver
|
||||||||||||||||
Sales revenue
|
$
|
17,307
|
$
|
8,766
|
$
|
31,713
|
$
|
19,045
|
||||||||
Derivative pricing adjustments
|
358
|
(579
|
)
|
615
|
189
|
|||||||||||
|
17,665
|
8,187
|
32,328
|
19,234
|
||||||||||||
Zinc
|
||||||||||||||||
Sales revenue
|
$
|
10,071
|
$
|
15,984
|
$
|
20,026
|
$
|
31,584
|
||||||||
Derivative pricing adjustments
|
(77
|
)
|
(118
|
)
|
(121
|
)
|
1,530
|
|||||||||
|
9,994
|
15,866
|
19,905
|
33,114
|
||||||||||||
Lead
|
||||||||||||||||
Sales revenue
|
$
|
7,192
|
$
|
7,333
|
$
|
14,189
|
$
|
15,999
|
||||||||
Derivative pricing adjustments
|
27
|
(407
|
)
|
(94
|
)
|
(331
|
)
|
|||||||||
|
7,219
|
6,926
|
14,095
|
15,668
|
||||||||||||
Other by-products
|
||||||||||||||||
Sales revenue
|
$
|
292
|
$
|
206
|
$
|
614
|
$
|
395
|
||||||||
Derivative pricing adjustments
|
78
|
99
|
114
|
181
|
||||||||||||
|
370
|
305
|
728
|
576
|
||||||||||||
|
||||||||||||||||
Total sales revenue
|
$
|
34,862
|
$
|
32,289
|
$
|
66,542
|
$
|
67,023
|
||||||||
Total derivative pricing adjustments
|
386
|
(1,005
|
)
|
514
|
1,569
|
|||||||||||
Gross revenue
|
$
|
35,248
|
$
|
31,284
|
$
|
67,056
|
$
|
68,592
|
||||||||
Treatment and selling costs
|
(11,026
|
)
|
(11,336
|
)
|
(20,741
|
)
|
(22,208
|
)
|
||||||||
|
$
|
24,222
|
$
|
19,948
|
$
|
46,315
|
$
|
46,384
|
|
Three-month
|
Three-month
|
Six-month
|
Six-month
|
||||||||||||
|
period ended
|
period ended
|
period ended
|
period ended
|
||||||||||||
|
June 30,
|
June 30,
|
June 30,
|
June 30,
|
||||||||||||
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
|
||||||||||||||||
Salaries and employee benefits
|
$
|
8,214
|
$
|
7,748
|
$
|
16,619
|
$
|
14,573
|
||||||||
Raw materials and consumables
|
8,436
|
7,051
|
16,595
|
13,327
|
||||||||||||
Utilities
|
961
|
1,169
|
2,022
|
2,171
|
||||||||||||
Other costs
|
2,418
|
1,807
|
3,930
|
3,944
|
||||||||||||
Changes in inventories
|
220
|
(1,481
|
)
|
(1,455
|
)
|
(1,135
|
)
|
|||||||||
Inventory write-downs
|
252
|
1,424
|
574
|
1,457
|
||||||||||||
|
$
|
20,501
|
$
|
17,718
|
$
|
38,285
|
$
|
34,337
|
|
Three-month
|
Three-month
|
Six-month
|
Six-month
|
||||||||||||
|
period ended
|
period ended
|
period ended
|
period ended
|
||||||||||||
|
June 30,
|
June 30,
|
June 30,
|
June 30,
|
||||||||||||
|
2023
|
2022
|
2023
|
2022
|
||||||||||||
|
||||||||||||||||
Salaries and employee benefits
|
$
|
531
|
$
|
490
|
$
|
1,080
|
$
|
1,044
|
||||||||
Directors’ fees
|
84
|
102
|
170
|
199
|
||||||||||||
Share-based payments
|
314
|
598
|
1,120
|
1,591
|
||||||||||||
Professional fees
|
710
|
227
|
1,050
|
833
|
||||||||||||
Office and general
|
532
|
634
|
1,102
|
1,033
|
||||||||||||
|
$
|
2,171
|
$
|
2,051
|
$
|
4,522
|
$
|
4,700
|
June 30,
|
December 31,
|
|||||||
2023
|
2022
|
|||||||
Property, plant and equipment
|
$
|
800
|
$
|
815
|
||||
Other
|
548
|
333
|
||||||
Total deferred tax liabilities
|
1,348
|
1,148
|
||||||
Provisions and reserves
|
(834
|
)
|
(800
|
)
|
||||
Net deferred tax liabilities
|
$
|
514
|
$
|
348
|
|
June 30, 2023
|
|||||||||||||||||||
|
Less than
|
Over 5
|
||||||||||||||||||
|
Total
|
1 year
|
2-3 years
|
4-5 years
|
years
|
|||||||||||||||
|
||||||||||||||||||||
Trade and other payables
|
$
|
25,810
|
$
|
25,810
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||
Pre-payment facility
|
3,000
|
3,000
|
-
|
-
|
-
|
|||||||||||||||
Promissory note
|
1,875
|
625
|
1,250
|
-
|
-
|
|||||||||||||||
Interest on promissory note
|
126
|
88
|
38
|
-
|
-
|
|||||||||||||||
RoyCap convertible debenture
|
18,353
|
-
|
18,353
|
-
|
-
|
|||||||||||||||
Interest on RoyCap convertible debenture
|
2,022
|
1,856
|
166
|
-
|
-
|
|||||||||||||||
Government loan
|
222
|
222
|
-
|
-
|
-
|
|||||||||||||||
Royalty payable
|
5,749
|
2,475
|
3,274
|
-
|
-
|
|||||||||||||||
Metals contract liability
|
33,236
|
11,681
|
21,555
|
-
|
-
|
|||||||||||||||
Projected pension contributions
|
5,056
|
998
|
1,724
|
1,853
|
481
|
|||||||||||||||
Decommissioning provision
|
20,369
|
-
|
-
|
-
|
20,369
|
|||||||||||||||
Other long-term liabilities
|
1,726
|
-
|
751
|
374
|
601
|
|||||||||||||||
|
$
|
117,544
|
$
|
46,755
|
$
|
47,111
|
$
|
2,227
|
$
|
21,451
|
|
June 30, 2023
|
|||||||||||||||||||
|
Less than
|
Over 5
|
||||||||||||||||||
|
Total
|
1 year
|
2-3 years
|
4-5 years
|
years
|
|||||||||||||||
|
||||||||||||||||||||
Trade and other payables
|
$
|
910
|
$
|
910
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||
Other long-term liabilities
|
1,125
|
-
|
751
|
374
|
-
|
|||||||||||||||
|
$
|
2,035
|
$
|
910
|
$
|
751
|
$
|
374
|
$
|
-
|
|
Six-month
|
Year
|
||||||
|
period ended
|
ended
|
||||||
|
June 30,
|
December 31,
|
||||||
|
2023
|
2022
|
||||||
|
||||||||
Lease liabilities, beginning of period
|
$
|
3,142
|
$
|
4,774
|
||||
Additions
|
156
|
720
|
||||||
Lease principal payments
|
(1,859
|
)
|
(2,352
|
)
|
||||
Lease interest payments
|
(97
|
)
|
(1,040
|
)
|
||||
Accretion on lease liabilities
|
693
|
1,040
|
||||||
Lease liabilities, end of period
|
$
|
2,035
|
$
|
3,142
|
(1)
|
Interest rate risk
|
(2)
|
Currency risk
|
|
As at June 30, 2023
|
|||||||
|
CAD
|
MXN
|
||||||
|
||||||||
Cash and cash equivalents
|
$
|
66
|
$
|
124
|
||||
Trade and other receivables
|
3,084
|
210
|
||||||
Trade and other payables
|
3,405
|
11,063
|
|
CAD/USD
|
MXN/USD
|
||||||
|
Exchange rate
|
Exchange rate
|
||||||
|
+/- 10%
|
|
+/- 10%
|
|
||||
|
||||||||
Approximate impact on:
|
||||||||
Net loss
|
$
|
773
|
$
|
2,124
|
||||
Other comprehensive loss
|
105
|
25
|
(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.
|
●
|
Royalty payable: The financial liability is measured at fair value through profit or loss determined using discounted cash flows of expected future royalty payments at end of the reporting period.
|
●
|
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).
|
|
June 30,
|
December 31,
|
||||||
|
2023
|
2022
|
||||||
|
||||||||
Level 1
|
||||||||
Cash and cash equivalents
|
$
|
1,627
|
$
|
1,964
|
||||
Restricted cash
|
4,247
|
4,139
|
||||||
|
||||||||
Level 2
|
||||||||
Trade and other receivables
|
13,043
|
11,552
|
||||||
Derivative instruments
|
1,320
|
991
|
||||||
Metals contract liability
|
33,236
|
30,989
|
||||||
|
||||||||
Level 3
|
||||||||
Royalty payable
|
4,089
|
-
|
||||||
|
||||||||
Amortized cost
|
||||||||
Pre-payment facility
|
3,000
|
-
|
||||||
Promissory note
|
1,875
|
2,500
|
||||||
Government loan
|
222
|
222
|
||||||
RoyCap convertible debenture
|
14,727
|
9,621
|
|
As at June 30, 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
|
$
|
182
|
$
|
1,125
|
$
|
225
|
$
|
95
|
$
|
1,627
|
$
|
317
|
$
|
204
|
$
|
717
|
$
|
726
|
$
|
1,964
|
||||||||||||||||||||
Trade and other receivables
|
6,281
|
3,678
|
-
|
3,084
|
13,043
|
3,921
|
7,593
|
-
|
38
|
11,552
|
||||||||||||||||||||||||||||||
Inventories
|
5,388
|
2,898
|
596
|
-
|
8,882
|
5,390
|
2,727
|
718
|
-
|
8,835
|
||||||||||||||||||||||||||||||
Prepaid expenses
|
839
|
959
|
397
|
1,021
|
3,216
|
745
|
1,232
|
452
|
601
|
3,030
|
||||||||||||||||||||||||||||||
Restricted cash
|
161
|
53
|
4,033
|
-
|
4,247
|
141
|
53
|
3,945
|
-
|
4,139
|
||||||||||||||||||||||||||||||
Property, plant and equipment
|
51,639
|
74,512
|
35,310
|
688
|
162,149
|
52,141
|
70,479
|
37,927
|
752
|
161,299
|
||||||||||||||||||||||||||||||
Total assets
|
$
|
64,490
|
$
|
83,225
|
$
|
40,561
|
$
|
4,888
|
$
|
193,164
|
$
|
62,655
|
$
|
82,288
|
$
|
43,759
|
$
|
2,117
|
$
|
190,819
|
||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||
Trade and other payables
|
$
|
12,557
|
$
|
6,552
|
$
|
1,331
|
$
|
5,370
|
$
|
25,810
|
$
|
12,861
|
$
|
8,029
|
$
|
2,658
|
$
|
3,512
|
$
|
27,060
|
||||||||||||||||||||
Derivative instruments
|
-
|
-
|
-
|
1,320
|
1,320
|
-
|
-
|
-
|
991
|
991
|
||||||||||||||||||||||||||||||
Pre-payment facility
|
-
|
3,000
|
-
|
-
|
3,000
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||
Other long-term liabilities
|
-
|
1,153
|
-
|
573
|
1,726
|
-
|
1,192
|
-
|
623
|
1,815
|
||||||||||||||||||||||||||||||
Metals contract liability
|
-
|
-
|
-
|
33,236
|
33,236
|
-
|
-
|
-
|
30,989
|
30,989
|
||||||||||||||||||||||||||||||
RoyCap convertible debenture
|
-
|
-
|
-
|
14,727
|
14,727
|
-
|
-
|
-
|
9,621
|
9,621
|
||||||||||||||||||||||||||||||
Promissory note
|
-
|
-
|
-
|
1,875
|
1,875
|
-
|
-
|
-
|
2,500
|
2,500
|
||||||||||||||||||||||||||||||
Royalty payable
|
-
|
-
|
-
|
4,089
|
4,089
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||
Government loan
|
-
|
222
|
-
|
-
|
222
|
-
|
222
|
-
|
-
|
222
|
||||||||||||||||||||||||||||||
Post-employment benefit obligations
|
-
|
5,868
|
-
|
-
|
5,868
|
-
|
6,969
|
-
|
-
|
6,969
|
||||||||||||||||||||||||||||||
Decommissioning provision
|
2,514
|
5,765
|
4,067
|
-
|
12,346
|
2,070
|
5,603
|
4,042
|
-
|
11,715
|
||||||||||||||||||||||||||||||
Deferred tax liabilities
|
514
|
-
|
-
|
-
|
514
|
348
|
-
|
-
|
-
|
348
|
||||||||||||||||||||||||||||||
Total liabilities
|
$
|
15,585
|
$
|
22,560
|
$
|
5,398
|
$
|
61,190
|
$
|
104,733
|
$
|
15,279
|
$
|
22,015
|
$
|
6,700
|
$
|
48,236
|
$
|
92,230
|
Three-month period ended June 30, 2023
|
Three-month period ended June 30, 2022
|
|||||||||||||||||||||||||||||||||||||||
Cosalá Operations
|
Galena Complex
|
Relief Canyon
|
Corporate and Other
|
Total
|
Cosalá Operations
|
Galena Complex
|
Relief Canyon
|
Corporate and Other
|
Total
|
|||||||||||||||||||||||||||||||
Revenue
|
$
|
13,235
|
$
|
10,956
|
$
|
31
|
$
|
-
|
$
|
24,222
|
$
|
12,681
|
$
|
7,256
|
$
|
11
|
$
|
-
|
$
|
19,948
|
||||||||||||||||||||
Cost of sales
|
(10,959
|
)
|
(9,398
|
)
|
(144
|
)
|
-
|
(20,501
|
)
|
(7,953
|
)
|
(8,599
|
)
|
(1,166
|
)
|
-
|
(17,718
|
)
|
||||||||||||||||||||||
Depletion and amortization
|
(1,968
|
)
|
(2,313
|
)
|
(886
|
)
|
(41
|
)
|
(5,208
|
)
|
(1,890
|
)
|
(2,270
|
)
|
(1,759
|
)
|
(40
|
)
|
(5,959
|
)
|
||||||||||||||||||||
Care and maintenance costs
|
-
|
(99
|
)
|
(761
|
)
|
-
|
(860
|
)
|
-
|
(107
|
)
|
(904
|
)
|
-
|
(1,011
|
)
|
||||||||||||||||||||||||
Corporate general and administrative
|
-
|
-
|
-
|
(2,171
|
)
|
(2,171
|
)
|
-
|
-
|
-
|
(2,051
|
)
|
(2,051
|
)
|
||||||||||||||||||||||||||
Exploration costs
|
(312
|
)
|
(599
|
)
|
(34
|
)
|
-
|
(945
|
)
|
(266
|
)
|
(571
|
)
|
(77
|
)
|
-
|
(914
|
)
|
||||||||||||||||||||||
Accretion on decommissioning provision
|
(52
|
)
|
(51
|
)
|
(37
|
)
|
-
|
(140
|
)
|
(41
|
)
|
(37
|
)
|
(24
|
)
|
-
|
(102
|
)
|
||||||||||||||||||||||
Interest and financing expense
|
(75
|
)
|
(81
|
)
|
(39
|
)
|
(1,626
|
)
|
(1,821
|
)
|
(47
|
)
|
(14
|
)
|
(143
|
)
|
(874
|
)
|
(1,078
|
)
|
||||||||||||||||||||
Foreign exchange gain (loss)
|
(45
|
)
|
-
|
-
|
951
|
906
|
(540
|
)
|
-
|
-
|
(1,363
|
)
|
(1,903
|
)
|
||||||||||||||||||||||||||
Gain on disposal of assets
|
-
|
-
|
85
|
-
|
85
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||
Gain on metals contract liability
|
-
|
-
|
-
|
1,701
|
1,701
|
-
|
-
|
-
|
3,186
|
3,186
|
||||||||||||||||||||||||||||||
Other loss on derivatives
|
-
|
-
|
-
|
(45
|
)
|
(45
|
)
|
-
|
-
|
-
|
(101
|
)
|
(101
|
)
|
||||||||||||||||||||||||||
Fair value loss on royalty payable
|
-
|
-
|
-
|
(240
|
)
|
(240
|
)
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||
Income (loss) before income taxes
|
(176
|
)
|
(1,585
|
)
|
(1,785
|
)
|
(1,471
|
)
|
(5,017
|
)
|
1,944
|
(4,342
|
)
|
(4,062
|
)
|
(1,243
|
)
|
(7,703
|
)
|
|||||||||||||||||||||
Income tax expense
|
(2,074
|
)
|
-
|
-
|
-
|
(2,074
|
)
|
(1,575
|
)
|
-
|
-
|
-
|
(1,575
|
)
|
||||||||||||||||||||||||||
Net income (loss) for the period
|
$
|
(2,250
|
)
|
$
|
(1,585
|
)
|
$
|
(1,785
|
)
|
$
|
(1,471
|
)
|
$
|
(7,091
|
)
|
$
|
369
|
$
|
(4,342
|
)
|
$
|
(4,062
|
)
|
$
|
(1,243
|
)
|
$
|
(9,278
|
)
|
Six-month period ended June 30, 2023
|
Six-month period ended June 30, 2022
|
|||||||||||||||||||||||||||||||||||||||
Cosalá Operations
|
Galena Complex
|
Relief Canyon
|
Corporate and Other
|
Total
|
Cosalá Operations
|
Galena Complex
|
Relief Canyon
|
Corporate and Other
|
Total
|
|||||||||||||||||||||||||||||||
Revenue
|
$
|
24,247
|
$
|
21,965
|
$
|
103
|
$
|
-
|
$
|
46,315
|
$
|
28,792
|
$
|
17,553
|
$
|
39
|
$
|
-
|
$
|
46,384
|
||||||||||||||||||||
Cost of sales
|
(18,541
|
)
|
(19,295
|
)
|
(449
|
)
|
-
|
(38,285
|
)
|
(15,812
|
)
|
(17,294
|
)
|
(1,231
|
)
|
-
|
(34,337
|
)
|
||||||||||||||||||||||
Depletion and amortization
|
(3,923
|
)
|
(4,463
|
)
|
(1,859
|
)
|
(80
|
)
|
(10,325
|
)
|
(3,653
|
)
|
(4,414
|
)
|
(3,573
|
)
|
(79
|
)
|
(11,719
|
)
|
||||||||||||||||||||
Care and maintenance costs
|
-
|
(210
|
)
|
(1,786
|
)
|
-
|
(1,996
|
)
|
-
|
(295
|
)
|
(2,039
|
)
|
-
|
(2,334
|
)
|
||||||||||||||||||||||||
Corporate general and administrative
|
-
|
-
|
-
|
(4,522
|
)
|
(4,522
|
)
|
-
|
-
|
-
|
(4,700
|
)
|
(4,700
|
)
|
||||||||||||||||||||||||||
Exploration costs
|
(431
|
)
|
(1,113
|
)
|
(56
|
)
|
-
|
(1,600
|
)
|
(700
|
)
|
(1,142
|
)
|
(158
|
)
|
-
|
(2,000
|
)
|
||||||||||||||||||||||
Accretion on decommissioning provision
|
(101
|
)
|
(104
|
)
|
(76
|
)
|
-
|
(281
|
)
|
(79
|
)
|
(66
|
)
|
(41
|
)
|
-
|
(186
|
)
|
||||||||||||||||||||||
Interest and financing expense
|
(140
|
)
|
(145
|
)
|
(659
|
)
|
(3,207
|
)
|
(4,151
|
)
|
(74
|
)
|
(28
|
)
|
(302
|
)
|
(1,701
|
)
|
(2,105
|
)
|
||||||||||||||||||||
Foreign exchange gain (loss)
|
(538
|
)
|
-
|
-
|
993
|
455
|
(478
|
)
|
-
|
-
|
(715
|
)
|
(1,193
|
)
|
||||||||||||||||||||||||||
Gain on disposal of assets
|
-
|
-
|
85
|
-
|
85
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||||
Gain (loss) on metals contract liability
|
-
|
-
|
-
|
(853
|
)
|
(853
|
)
|
-
|
-
|
-
|
434
|
434
|
||||||||||||||||||||||||||||
Other gain (loss) on derivatives
|
-
|
-
|
-
|
47
|
47
|
-
|
-
|
-
|
(79
|
)
|
(79
|
)
|
||||||||||||||||||||||||||||
Fair value loss on royalty payable
|
-
|
-
|
-
|
(240
|
)
|
(240
|
)
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||||||
Gain on government loan forgiveness
|
-
|
-
|
-
|
-
|
-
|
-
|
4,277
|
-
|
-
|
4,277
|
||||||||||||||||||||||||||||||
Income (loss) before income taxes
|
573
|
(3,365
|
)
|
(4,697
|
)
|
(7,862
|
)
|
(15,351
|
)
|
7,996
|
(1,409
|
)
|
(7,305
|
)
|
(6,840
|
)
|
(7,558
|
)
|
||||||||||||||||||||||
Income tax expense
|
(2,264
|
)
|
-
|
-
|
-
|
(2,264
|
)
|
(2,016
|
)
|
-
|
-
|
-
|
(2,016
|
)
|
||||||||||||||||||||||||||
Net income (loss) for the period
|
$
|
(1,691
|
)
|
$
|
(3,365
|
)
|
$
|
(4,697
|
)
|
$
|
(7,862
|
)
|
$
|
(17,615
|
)
|
$
|
5,980
|
$
|
(1,409
|
)
|
$
|
(7,305
|
)
|
$
|
(6,840
|
)
|
$
|
(9,574
|
)
|
Exhibit 99.2 |
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
|
11 |
Liquidity
|
13 |
Capital Resources
|
15 |
Off-Balance Sheet Arrangements
|
15 |
Transactions with Related Parties
|
15 |
Risk Factors
|
16 |
Accounting Standards and Pronouncements
|
16 |
Financial Instruments
|
16 |
Capital Structure
|
17 |
Controls and Procedures
|
17 |
Technical Information
|
17 |
Non-GAAP and Other Financial Measures
|
17 |
•
|
Revenue of $24.2 million for Q2-2023 representing an increase of $4.2 million compared to Q2-2022 primarily due to higher silver and lead production from the Galena
Complex, and higher silver production from the Cosalá Operations for a combined increase in silver production of 92%.
|
•
|
A net loss of $7.1 million for Q2-2023, or an attributable loss of $0.03 per share representing a decrease in net loss of $2.2 million compared to Q2-2022, primarily due to
$4.2 million higher net revenue offset in part by $2.8 million higher cost of sales.
|
•
|
Consolidated attributable production of approximately 1.3 million ounces of silver equivalent1, including 0.6 million ounces of silver, 9.6 million pounds of
zinc and 5.9 million pounds of lead, with cost of sales of $13.12/oz silver equivalent produced1, cash costs of $10.00/oz silver produced1 and all-in sustaining costs of $16.78/oz silver produced1 during
the quarter.
|
•
|
The Company successfully installed the Galena Hoist which is now operational as of the end of Q2-2023 with only shaft repair remaining before final certification can be
obtained. These repairs are expected to be completed in Q4-2023.
|
•
|
Cash generated from operating activities1 improved by $2.9 million to $0.6 million during Q2-2023 compared to cash used in operating activities of $2.3 million
during Q2-2022 before changes in non-cash working capital items.
|
•
|
The Company had a cash and cash equivalents balance of $1.6 million and working capital1 deficit of $18.1 million as at June 30, 2023.
|
o
|
49-626:
|
650 g/t silver and 11.0% lead (1,054 g/t AgEq) over 7.7 m2,3
|
|
including: | 1,209 g/t silver and 16.3% lead (1,815 g/t AgEq) over 0.6 m |
|
including: |
521 g/t silver and 6.4% lead (759 g/t AgEq) over 1.1 m
|
|
including:
|
1,797 g/t silver and 27.5% lead (2,817 g/t AgEq) over 1.0 m
|
|
including:
|
1,005 g/t silver and 25.1% lead (1,914 g/t AgEq) over 0.8 m
|
o
|
49-627:
|
203 g/t silver and 12.5% lead (653 g/t AgEq) over 1.8 m |
|
and: |
335 g/t silver and 12.3% lead (777 g/t AgEq) over 0.9 m
|
|
and: |
185 g/t silver and 8.3% lead (484 g/t AgEq) over 1.3 m
|
|
and:
|
744 g/t silver and 35.8% lead (2,033 g/t AgEq) over 0.7 m
|
o
|
46-324:
|
400 g/t silver and 15.0% lead (942 g/t AgEq) over 1.1 m
|
|
and: |
299 g/t silver and 12.0% lead (731 g/t AgEq) over 7.3 m
|
|
including: |
415 g/t silver and 14.4% lead (934 g/t AgEq) over 1.1 m
|
|
including:
|
521 g/t silver and 24.5% lead (1,404 g/t AgEq) over 1.1 m
|
|
2023 Guidance1
|
2024 Outlook1
|
Silver Production (oz)
|
2.2 - 2.6 Moz
|
3.5 - 4 Moz
|
Zinc Production (lb)
|
33 - 37 Mlb
|
23 - 27 Mlb
|
Lead Production (lb)
|
22 - 26 Mlb
|
18 - 22 Mlb
|
Copper Production (lb)
|
-
|
1.5 - 2 Mlb
|
Silver Equivalent Production (oz)
|
5.5 - 6 Moz
|
6.5 - 7 Moz
|
Cash Costs/Ag Oz Production ($/oz)
|
$8.00 - $9.00/oz
|
|
Capital Expenditures - Sustaining ($)
|
$9 - $10 M
|
|
Capital Expenditures - Discretionary ($)
|
$3 - $4 M
|
|
Exploration Drilling - Discretionary ($)
|
$3 - $4 M
|
|
1 |
Throughout this MD&A, guidance for 2023 and outlook for 2024 was based on production of the Cosalá Operations at 100% and the Galena Complex at 60% (40% owned by Sprott), and silver equivalent production for guidance and outlook was
calculated based on $22.00/oz silver, $1.45/lb zinc, $1.00/lb lead, and $3.75/lb copper.
|
|
Q2-2023
|
Q2-2022
|
YTD-2023
|
YTD-2022
|
||||||||||||
Revenue ($ M)
|
$
|
24.2
|
$
|
20.0
|
$
|
46.3
|
$
|
46.4
|
||||||||
Silver Produced (oz)1
|
573,382
|
299,228
|
1,073,059
|
599,544
|
||||||||||||
Zinc Produced (lb)1
|
9,574,772
|
9,941,949
|
16,799,304
|
19,515,192
|
||||||||||||
Lead Produced (lb)1
|
5,873,499
|
6,447,775
|
11,415,868
|
12,815,252
|
||||||||||||
Total Silver Equivalent Produced ($/oz)1,2
|
1,264,646
|
1,343,062
|
2,447,771
|
2,617,532
|
||||||||||||
Cost of Sales/Ag Eq Oz Produced ($/oz)1,3
|
$
|
13.12
|
$
|
9.76
|
$
|
12.30
|
$
|
10.00
|
||||||||
Cash Costs/Ag Oz Produced ($/oz)1,3
|
$
|
10.00
|
$
|
(2.72
|
)
|
$
|
10.55
|
$
|
(6.13
|
)
|
||||||
All-In Sustaining Costs/Ag Oz Produced ($/oz)1,3
|
$
|
16.78
|
$
|
5.37
|
$
|
16.82
|
$
|
1.34
|
||||||||
Net Loss ($ M)
|
$
|
(7.1
|
)
|
$
|
(9.3
|
)
|
$
|
(17.6
|
)
|
$
|
(9.6
|
)
|
||||
Comprehensive Income (Loss) ($ M)
|
$
|
(6.5
|
)
|
$
|
(7.0
|
)
|
$
|
(17.6
|
)
|
$
|
(4.2
|
)
|
1 |
Throughout this MD&A, consolidated production results and consolidated operating metrics are based on the attributable ownership percentage of each operating segment (100% Cosalá Operations and 60% Galena Complex).
|
2 |
Throughout this MD&A, silver equivalent production was calculated based on all metals production at average realized silver, zinc, and lead prices during each respective period.
|
3 |
This is a supplementary or non-GAAP financial measure or ratio. See “Non-GAAP and Other Financial Measures” section for further information.
|
|
Q2-2023
|
Q2-2022
|
YTD-2023
|
YTD-2022
|
||||||||||||
Tonnes Milled
|
150,370
|
147,583
|
276,651
|
288,175
|
||||||||||||
Silver Grade (g/t)
|
93
|
50
|
91
|
51
|
||||||||||||
Zinc Grade (%)
|
3.56
|
3.96
|
3.43
|
3.96
|
||||||||||||
Lead Grade (%)
|
1.38
|
1.65
|
1.38
|
1.71
|
||||||||||||
Silver Recovery (%)
|
74.9
|
53.7
|
73.8
|
53.8
|
||||||||||||
Zinc Recovery (%)
|
81.1
|
77.2
|
80.3
|
77.6
|
||||||||||||
Lead Recovery (%)
|
70.7
|
73.1
|
70.8
|
71.6
|
||||||||||||
Silver Produced (oz)
|
334,992
|
127,803
|
600,113
|
254,570
|
||||||||||||
Zinc Produced (lb)
|
9,574,772
|
9,941,949
|
16,799,304
|
19,515,192
|
||||||||||||
Lead Produced (lb)
|
3,221,616
|
3,915,273
|
5,938,413
|
7,793,520
|
||||||||||||
Total Silver Equivalent Produced ($/oz)1,2
|
918,354
|
1,063,644
|
1,745,922
|
2,053,844
|
||||||||||||
Silver Sold (oz)
|
349,165
|
116,564
|
587,364
|
239,841
|
||||||||||||
Zinc Sold (lb)
|
8,955,472
|
9,280,165
|
15,998,450
|
18,428,995
|
||||||||||||
Lead Sold (lb)
|
3,152,439
|
3,570,350
|
5,764,682
|
7,335,305
|
||||||||||||
Cost of Sales/Ag Eq Oz Produced ($/oz)2
|
$
|
11.93
|
$
|
7.48
|
$
|
10.62
|
$
|
7.70
|
||||||||
Cash Costs/Ag Oz Produced ($/oz)2
|
$
|
4.51
|
$
|
(35.97
|
)
|
$
|
4.56
|
$
|
(42.39
|
)
|
||||||
All-In Sustaining Costs/Ag Oz Produced ($/oz)2
|
$
|
11.10
|
$
|
(25.89
|
)
|
$
|
10.41
|
$
|
(34.17
|
)
|
1 |
Throughout this MD&A, silver equivalent production was calculated based on all metals production at average realized silver, zinc, and lead prices during each respective period.
|
2 |
This is a supplementary or non-GAAP financial measure or ratio. See “Non-GAAP and Other Financial Measures” section for further information.
|
|
Q2-2023
|
Q2-2022
|
YTD-2023
|
YTD-2022
|
||||||||||||
Tonnes Milled
|
30,721
|
28,585
|
61,922
|
58,385
|
||||||||||||
Silver Grade (g/t)
|
412
|
319
|
406
|
315
|
||||||||||||
Lead Grade (%)
|
6.94
|
6.99
|
7.12
|
6.82
|
||||||||||||
Silver Recovery (%)
|
97.8
|
97.5
|
97.6
|
97.3
|
||||||||||||
Lead Recovery (%)
|
94.1
|
95.8
|
93.9
|
95.3
|
||||||||||||
Silver Produced (oz)
|
397,316
|
285,707
|
788,243
|
574,956
|
||||||||||||
Lead Produced (lb)
|
4,419,805
|
4,220,837
|
9,129,092
|
8,369,554
|
||||||||||||
Total Silver Equivalent Produced ($/oz)1,2
|
577,154
|
465,697
|
1,169,749
|
939,480
|
||||||||||||
Silver Sold (oz)
|
379,653
|
274,162
|
780,053
|
579,059
|
||||||||||||
Lead Sold (lb)
|
4,412,416
|
4,029,850
|
9,051,635
|
8,450,602
|
||||||||||||
Cost of Sales/Ag Eq Oz Produced ($/oz)2
|
$
|
16.28
|
$
|
18.46
|
$
|
16.49
|
$
|
18.41
|
||||||||
Cash Costs/Ag Oz Produced ($/oz)2
|
$
|
17.74
|
$
|
22.09
|
$
|
18.17
|
$
|
20.62
|
||||||||
All-In Sustaining Costs/Ag Oz Produced ($/oz)2
|
$
|
24.74
|
$
|
28.67
|
$
|
24.96
|
$
|
27.55
|
||||||||
All-In Sustaining Costs with Galena
|
||||||||||||||||
Recapitalization Plan/Ag Oz Produced ($/oz)2
|
$
|
28.89
|
$
|
36.75
|
$
|
30.30
|
$
|
34.25
|
1 |
Throughout this MD&A, silver equivalent production was calculated based on all metals production at average realized silver, zinc, and lead prices during each respective period.
|
2 |
This is a supplementary or non-GAAP financial measure or ratio. See “Non-GAAP and Other Financial Measures” section for further information.
|
Q2
|
Q1
|
Q4
|
Q3
|
Q2
|
Q1
|
Q4
|
Q3
|
|||||||||||||||||||||||||
2023
|
2023
|
2022
|
2022
|
2022
|
2022
|
2021
|
1,5
|
2021
|
1,5
|
|||||||||||||||||||||||
Revenue ($ M)
|
$
|
24.2
|
$
|
22.1
|
$
|
20.3
|
$
|
18.3
|
$
|
20.0
|
$
|
26.4
|
$
|
14.2
|
$
|
10.9
|
||||||||||||||||
Net Loss ($ M)
|
(7.1
|
)
|
(10.5
|
)
|
(11.0
|
)
|
(24.6
|
)
|
(9.3
|
)
|
(0.3
|
)
|
(32.4
|
)
|
(18.6
|
)
|
||||||||||||||||
Comprehensive Income (Loss) ($ M)
|
(6.5
|
)
|
(11.1
|
)
|
(14.3
|
)
|
(20.1
|
)
|
(7.0
|
)
|
2.8
|
(34.9
|
)
|
(19.1
|
)
|
|||||||||||||||||
Silver Produced (oz)2
|
573,382
|
499,677
|
377,353
|
331,304
|
299,228
|
300,316
|
61,001
|
-
|
||||||||||||||||||||||||
Zinc Produced (lb)2
|
9,574,772
|
7,224,532
|
10,369,679
|
9,434,924
|
9,941,949
|
9,573,243
|
4,164,185
|
-
|
||||||||||||||||||||||||
Lead Produced (lb)2
|
5,873,499
|
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
|
$
|
13.12
|
$
|
11.43
|
$
|
9.20
|
$
|
10.33
|
$
|
9.76
|
$
|
10.26
|
$
|
7.47
|
-
|
|||||||||||||||||
Cash Costs/Ag Oz Produced ($/oz)2,3,4
|
$
|
10.00
|
$
|
11.18
|
$
|
3.62
|
$
|
10.01
|
$
|
(2.72
|
)
|
$
|
(9.55
|
)
|
$
|
(18.53
|
)
|
-
|
||||||||||||||
All-In Sustaining Costs/Ag Oz Produced ($/oz)2,3,4
|
$
|
16.78
|
$
|
16.87
|
$
|
14.89
|
$
|
18.66
|
$
|
5.37
|
$
|
(2.67
|
)
|
$
|
(14.67
|
)
|
-
|
|||||||||||||||
|
||||||||||||||||||||||||||||||||
Current Assets (qtr. end) ($ M)
|
$
|
26.8
|
$
|
25.3
|
$
|
25.4
|
$
|
19.3
|
$
|
29.1
|
$
|
29.0
|
$
|
23.5
|
$
|
28.3
|
||||||||||||||||
Current Liabilities (qtr. end) ($ M)
|
44.9
|
45.0
|
42.1
|
36.0
|
38.1
|
33.5
|
45.6
|
38.2
|
||||||||||||||||||||||||
Working Capital (qtr. end) ($ M)
|
(18.1
|
)
|
(19.7
|
)
|
(16.7
|
)
|
(16.7
|
)
|
(9.0
|
)
|
(4.5
|
)
|
(22.1
|
)
|
(9.9
|
)
|
||||||||||||||||
Total Assets (qtr. end) ($ M)
|
$
|
193.2
|
$
|
192.0
|
$
|
190.8
|
$
|
186.5
|
$
|
209.4
|
$
|
215.8
|
$
|
213.4
|
$
|
205.5
|
||||||||||||||||
Total Liabilities (qtr. end) ($ M)
|
104.7
|
100.1
|
92.2
|
81.0
|
90.2
|
93.7
|
109.6
|
80.8
|
||||||||||||||||||||||||
Total Equity (qtr. end) ($ M)
|
88.5
|
91.9
|
98.6
|
105.5
|
119.2
|
122.1
|
103.8
|
124.7
|
1 |
Production results are nil for the Cosalá Operations from Q2-2020 to Q3-2021 due to it being placed under care and maintenance effective February 2020 as a result of the illegal blockade and exclude the Galena Complex due to suspension
of certain operating metrics during the Galena Recapitalization Plan implementation.
|
2 |
Throughout this MD&A, consolidated production results and consolidated operating metrics are based on the attributable ownership percentage of each operating segment (100% Cosalá Operations and 60% Galena Complex).
|
3 |
Costs per ounce measurements during Q4-2021 were based on operating results starting from December 1, 2021 following return to nameplate production of the Cosalá Operations. Throughout this MD&A, all other production results from the
Cosalá Operations during Q4-2021 were determined based on total production during the period.
|
4 |
This is a supplementary or non-GAAP financial measure or ratio. See “Non-GAAP and Other Financial Measures” section for further information.
|
5 |
Certain fiscal 2021 amounts were adjusted through changes in accounting policies. See “Accounting Standards and Pronouncements” section for further information.
|
Opening cash balance as at December 31, 2022
|
$
|
2.0
|
||
Cash generated from operations
|
0.6
|
|||
Expenditures on property, plant and equipment
|
(11.4
|
)
|
||
Lease payments
|
(2.0
|
)
|
||
Repayments to promissory note
|
(0.6
|
)
|
||
At-the-market offering
|
2.3
|
|||
Pre-payment facility
|
3.0
|
|||
Financing from RoyCap convertible debenture
|
6.0
|
|||
Metals contract liability
|
0.7
|
|||
Royalty payable
|
3.8
|
|||
Contribution from non-controlling interests
|
2.3
|
|||
Proceeds from disposal of assets
|
0.8
|
|||
Decrease in trade and other receivables
|
(1.5
|
)
|
||
Change in inventories
|
(1.5
|
)
|
||
Change in prepaid expenses
|
(0.2
|
)
|
||
Change in trade and other payables
|
(1.7
|
)
|
||
Change in foreign exchange rates
|
(1.0
|
)
|
||
Closing cash balance as at June 30, 2023
|
$
|
1.6
|
|
Less than
|
Over 5
|
||||||||||||||||||
|
Total
|
1 year
|
2-3 years
|
4-5 years
|
years
|
|||||||||||||||
Trade and other payables
|
$
|
25,810
|
$
|
25,810
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||
Pre-payment facility
|
3,000
|
$
|
3,000
|
-
|
-
|
-
|
||||||||||||||
Promissory note
|
1,875
|
625
|
1,250
|
-
|
-
|
|||||||||||||||
Interest on promissory note
|
126
|
88
|
38
|
-
|
-
|
|||||||||||||||
RoyCap convertible debenture
|
18,353
|
-
|
18,353
|
-
|
-
|
|||||||||||||||
Interest on RoyCap convertible debenture
|
2,022
|
1,856
|
166
|
-
|
-
|
|||||||||||||||
Government loan
|
222
|
222
|
-
|
-
|
-
|
|||||||||||||||
Royalty payable
|
5,749
|
2,475
|
3,274
|
-
|
-
|
|||||||||||||||
Metals contract liability
|
33,236
|
11,681
|
21,555
|
-
|
-
|
|||||||||||||||
Projected pension contributions
|
5,056
|
998
|
1,724
|
1,853
|
481
|
|||||||||||||||
Decommissioning provision
|
20,369
|
-
|
-
|
-
|
20,369
|
|||||||||||||||
Other long-term liabilities
|
1,726
|
-
|
751
|
374
|
601
|
|||||||||||||||
Total
|
$
|
117,544
|
$
|
46,755
|
$
|
47,111
|
$
|
2,227
|
$
|
21,451
|
●
|
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
|
||||||||||||||||
|
Q2-2023
|
Q2-2022
|
YTD-2023
|
YTD-2022
|
||||||||||||
Gross silver sales revenue ('000)
|
$
|
17,269
|
$
|
8,748
|
$
|
31,675
|
$
|
18,995
|
||||||||
Payable metals and fixed pricing adjustments ('000)
|
(87
|
)
|
25
|
(86
|
)
|
10
|
||||||||||
Payable silver sales revenue ('000)
|
$
|
17,182
|
$
|
8,773
|
$
|
31,589
|
$
|
19,005
|
||||||||
Divided by silver sold (oz)
|
728,818
|
390,726
|
1,367,417
|
818,900
|
||||||||||||
Average realized silver price ($/oz)
|
$
|
23.58
|
$
|
22.45
|
$
|
23.10
|
$
|
23.21
|
||||||||
|
||||||||||||||||
|
Q2-2023
|
Q2-2022
|
YTD-2023
|
YTD-2022
|
||||||||||||
Gross zinc sales revenue ('000)
|
$
|
10,071
|
$
|
15,984
|
$
|
20,026
|
$
|
31,584
|
||||||||
Payable metals and fixed pricing adjustments ('000)
|
(24
|
)
|
(115
|
)
|
(15
|
)
|
(102
|
)
|
||||||||
Payable zinc sales revenue ('000)
|
$
|
10,047
|
$
|
15,869
|
$
|
20,011
|
$
|
31,482
|
||||||||
Divided by zinc sold (lb)
|
8,955,472
|
9,280,165
|
15,998,450
|
18,428,995
|
||||||||||||
Average realized zinc price ($/lb)
|
$
|
1.12
|
$
|
1.71
|
$
|
1.25
|
$
|
1.71
|
||||||||
|
||||||||||||||||
|
Q2-2023
|
Q2-2022
|
YTD-2023
|
YTD-2022
|
||||||||||||
Gross lead sales revenue ('000)
|
$
|
7,192
|
$
|
7,333
|
$
|
14,189
|
$
|
15,999
|
||||||||
Payable metals and fixed pricing adjustments ('000)
|
4
|
(49
|
)
|
11
|
(56
|
)
|
||||||||||
Payable lead sales revenue ('000)
|
$
|
7,196
|
$
|
7,284
|
$
|
14,200
|
$
|
15,943
|
||||||||
Divided by lead sold (lb)
|
7,564,855
|
7,600,200
|
14,816,317
|
15,785,907
|
||||||||||||
Average realized lead price ($/lb)
|
$
|
0.95
|
$
|
0.96
|
$
|
0.96
|
$
|
1.01
|
Reconciliation of Consolidated Cost of Sales/Ag Eq Oz Produced1
|
||||||||||||||||
|
Q2-2023
|
Q2-2022
|
YTD-2023
|
YTD-2022
|
||||||||||||
Cost of sales ('000)
|
$
|
20,357
|
$
|
16,552
|
$
|
37,836
|
$
|
33,106
|
||||||||
Less non-controlling interests portion ('000)
|
(3,759
|
)
|
(3,440
|
)
|
(7,718
|
)
|
(6,918
|
)
|
||||||||
Attributable cost of sales ('000)
|
16,598
|
13,112
|
30,118
|
26,188
|
||||||||||||
Divided by silver equivalent produced (oz)
|
1,264,646
|
1,343,062
|
2,447,771
|
2,617,532
|
||||||||||||
Cost of sales/Ag Eq oz produced ($/oz)
|
$
|
13.12
|
$
|
9.76
|
$
|
12.30
|
$
|
10.00
|
Reconciliation of Cosalá Operations Cost of Sales/Ag Eq Oz Produced
|
||||||||||||||||
|
Q2-2023
|
Q2-2022
|
YTD-2023
|
YTD-2022
|
||||||||||||
Cost of sales ('000)
|
$
|
10,959
|
$
|
7,953
|
$
|
18,541
|
$
|
15,812
|
||||||||
Divided by silver equivalent produced (oz)
|
918,354
|
1,063,644
|
1,745,922
|
2,053,844
|
||||||||||||
Cost of sales/Ag Eq oz produced ($/oz)
|
$
|
11.93
|
$
|
7.48
|
$
|
10.62
|
$
|
7.70
|
Reconciliation of Galena Complex Cost of Sales/Ag Eq Oz Produced
|
||||||||||||||||
|
Q2-2023
|
Q2-2022
|
YTD-2023
|
YTD-2022
|
||||||||||||
Cost of sales ('000)
|
$
|
9,398
|
$
|
8,599
|
$
|
19,295
|
$
|
17,294
|
||||||||
Divided by silver equivalent produced (oz)
|
577,154
|
465,697
|
1,169,749
|
939,480
|
||||||||||||
Cost of sales/Ag Eq oz produced ($/oz)
|
$
|
16.28
|
$
|
18.46
|
$
|
16.49
|
$
|
18.41
|
1 |
Throughout this MD&A, consolidated production results and consolidated operating metrics are based on the attributable ownership percentage of each operating segment (100% Cosalá Operations and 60% Galena Complex).
|
Reconciliation of Consolidated Cash Costs/Ag Oz Produced1
|
||||||||||||||||
|
Q2-2023
|
Q2-2022
|
YTD-2023
|
YTD-2022
|
||||||||||||
Cost of sales ('000)
|
$
|
20,357
|
$
|
16,552
|
$
|
37,836
|
$
|
33,106
|
||||||||
Less non-controlling interests portion ('000)
|
(3,759
|
)
|
(3,440
|
)
|
(7,718
|
)
|
(6,918
|
)
|
||||||||
Attributable cost of sales ('000)
|
16,598
|
13,112
|
30,118
|
26,188
|
||||||||||||
Non-cash costs ('000)
|
(822
|
)
|
71
|
(543
|
)
|
(1,725
|
)
|
|||||||||
Direct mining costs ('000)
|
$
|
15,776
|
$
|
13,183
|
$
|
29,575
|
$
|
24,463
|
||||||||
Smelting, refining and royalty expenses ('000)
|
5,867
|
6,447
|
11,109
|
12,074
|
||||||||||||
Less by-product credits ('000)
|
(15,901
|
)
|
(20,440
|
)
|
(29,358
|
)
|
(40,215
|
)
|
||||||||
Cash costs ('000)
|
$
|
5,742
|
$
|
(810
|
)
|
$
|
11,326
|
$
|
(3,678
|
)
|
||||||
Divided by silver produced (oz)
|
573,382
|
299,228
|
1,073,059
|
599,544
|
||||||||||||
Cash costs/Ag oz produced ($/oz)
|
$
|
10.00
|
$
|
(2.72
|
)
|
$
|
10.55
|
$
|
(6.13
|
)
|
Reconciliation of Cosalá Operations Cash Costs/Ag Oz Produced
|
||||||||||||||||
|
Q2-2023
|
Q2-2022
|
YTD-2023
|
YTD-2022
|
||||||||||||
Cost of sales ('000)
|
$
|
10,959
|
$
|
7,953
|
$
|
18,541
|
$
|
15,812
|
||||||||
Non-cash costs ('000)
|
(793
|
)
|
20
|
(501
|
)
|
(1,421
|
)
|
|||||||||
Direct mining costs ('000)
|
$
|
10,166
|
$
|
7,973
|
$
|
18,040
|
$
|
14,391
|
||||||||
Smelting, refining and royalty expenses ('000)
|
4,839
|
5,485
|
9,027
|
10,184
|
||||||||||||
Less by-product credits ('000)
|
(13,493
|
)
|
(18,055
|
)
|
(24,332
|
)
|
(35,366
|
)
|
||||||||
Cash costs ('000)
|
$
|
1,512
|
$
|
(4,597
|
)
|
$
|
2,735
|
$
|
(10,791
|
)
|
||||||
Divided by silver produced (oz)
|
334,992
|
127,803
|
600,113
|
254,570
|
||||||||||||
Cash costs/Ag oz produced ($/oz)
|
$
|
4.51
|
$
|
(35.97
|
)
|
$
|
4.56
|
$
|
(42.39
|
)
|
Reconciliation of Galena Complex Cash Costs/Ag Oz Produced
|
||||||||||||||||
|
Q2-2023
|
Q2-2022
|
YTD-2023
|
YTD-2022
|
||||||||||||
Cost of sales ('000)
|
$
|
9,398
|
$
|
8,599
|
$
|
19,295
|
$
|
17,294
|
||||||||
Non-cash costs ('000)
|
(49
|
)
|
85
|
(70
|
)
|
(507
|
)
|
|||||||||
Direct mining costs ('000)
|
$
|
9,349
|
$
|
8,684
|
$
|
19,225
|
$
|
16,787
|
||||||||
Smelting, refining and royalty expenses ('000)
|
1,713
|
1,603
|
3,470
|
3,150
|
||||||||||||
Less by-product credits ('000)
|
(4,012
|
)
|
(3,975
|
)
|
(8,376
|
)
|
(8,081
|
)
|
||||||||
Cash costs ('000)
|
$
|
7,050
|
$
|
6,312
|
$
|
14,319
|
$
|
11,856
|
||||||||
Divided by silver produced (oz)
|
397,316
|
285,707
|
788,243
|
574,956
|
||||||||||||
Cash costs/Ag oz produced ($/oz)
|
$
|
17.74
|
$
|
22.09
|
$
|
18.17
|
$
|
20.62
|
1 |
Throughout this MD&A, consolidated production results and consolidated operating metrics are based on the attributable ownership percentage of each operating segment (100% Cosalá Operations and 60% Galena Complex).
|
Reconciliation of Consolidated All-In Sustaining Costs/Ag Oz Produced1
|
||||||||||||||||
|
Q2-2023
|
Q2-2022
|
YTD-2023
|
YTD-2022
|
||||||||||||
Cash costs ('000)
|
$
|
5,742
|
$
|
(810
|
)
|
$
|
11,326
|
$
|
(3,677
|
)
|
||||||
Capital expenditures ('000)
|
3,205
|
2,138
|
5,624
|
3,761
|
||||||||||||
Exploration costs ('000)
|
672
|
278
|
1,099
|
722
|
||||||||||||
All-in sustaining costs ('000)
|
$
|
9,619
|
$
|
1,606
|
$
|
18,049
|
$
|
806
|
||||||||
Divided by silver produced (oz)
|
573,382
|
299,228
|
1,073,059
|
599,544
|
||||||||||||
All-in sustaining costs/Ag oz produced ($/oz)
|
$
|
16.78
|
$
|
5.37
|
$
|
16.82
|
$
|
1.34
|
Reconciliation of Cosalá Operations All-In Sustaining Costs/Ag Oz Produced
|
||||||||||||||||
|
Q2-2023
|
YTD-2022
|
YTD-2023
|
YTD-2022
|
||||||||||||
Cash costs ('000)
|
$
|
1,512
|
$
|
(4,597
|
)
|
$
|
2,735
|
$
|
(10,791
|
)
|
||||||
Capital expenditures ('000)
|
1,896
|
1,022
|
3,079
|
1,393
|
||||||||||||
Exploration costs ('000)
|
312
|
266
|
431
|
700
|
||||||||||||
All-in sustaining costs ('000)
|
$
|
3,720
|
$
|
(3,309
|
)
|
$
|
6,245
|
$
|
(8,698
|
)
|
||||||
Divided by silver produced (oz)
|
334,992
|
127,803
|
600,113
|
254,570
|
||||||||||||
All-in sustaining costs/Ag oz produced ($/oz)
|
$
|
11.10
|
$
|
(25.89
|
)
|
$
|
10.41
|
$
|
(34.17
|
)
|
Reconciliation of Galena Complex All-In Sustaining Costs/Ag Oz Produced
|
||||||||||||||||
|
Q2-2023
|
YTD-2022
|
YTD-2023
|
YTD-2022
|
||||||||||||
Cash costs ('000)
|
$
|
7,050
|
$
|
6,312
|
$
|
14,319
|
$
|
11,856
|
||||||||
Capital expenditures ('000)
|
2,181
|
1,860
|
4,241
|
3,946
|
||||||||||||
Exploration costs ('000)
|
599
|
20
|
1,113
|
37
|
||||||||||||
All-in sustaining costs ('000)
|
$
|
9,830
|
$
|
8,192
|
$
|
19,673
|
$
|
15,839
|
||||||||
Galena Complex Recapitalization Plan costs ('000)
|
1,648
|
2,308
|
4,213
|
3,855
|
||||||||||||
All-in sustaining costs with Galena Recapitalization Plan ('000)
|
$
|
11,478
|
$
|
10,500
|
$
|
23,886
|
$
|
19,694
|
||||||||
Divided by silver produced (oz)
|
397,316
|
285,707
|
788,243
|
574,956
|
||||||||||||
All-in sustaining costs/Ag oz produced ($/oz)
|
$
|
24.74
|
$
|
28.67
|
$
|
24.96
|
$
|
27.55
|
||||||||
All-in sustaining costs with Galena Recapitalization Plan/Ag oz produced ($/oz)
|
$
|
28.89
|
$
|
36.75
|
$
|
30.30
|
$
|
34.25
|
1 |
Throughout this MD&A, consolidated production results and consolidated operating metrics are based on the attributable ownership percentage of each operating segment (100% Cosalá Operations and 60% Galena Complex).
|
Reconciliation of Net Cash Generated from Operating Activities
|
||||||||||||||||
|
Q2-2023
|
Q2-2022
|
YTD-2023
|
YTD-2022
|
||||||||||||
Cash generated from (used in) operating activities ('000)
|
$
|
642
|
$
|
(2,312
|
)
|
$
|
550
|
$
|
4,137
|
|||||||
Changes in non-cash working capital items ('000)
|
(6,586
|
)
|
9,284
|
(4,834
|
)
|
1,012
|
||||||||||
Net cash generated from (used in) operating activities ('000)
|
$
|
(5,944
|
)
|
$
|
6,972
|
$
|
(4,284
|
)
|
$
|
5,149
|
Reconciliation of Working Capital
|
||||||||
|
Q2-2023
|
Q2-2022
|
||||||
Current Assets ('000)
|
$
|
26,768
|
$
|
29,091
|
||||
Less current liabilities ('000)
|
(44,909
|
)
|
(38,061
|
)
|
||||
Working capital ('000)
|
$
|
(18,141
|
)
|
$
|
(8,970
|
)
|
Exhibit 99.3 |
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 Jume 30, 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
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(a)
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designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that
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(i)
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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
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(ii)
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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
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(b)
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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.
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5.1
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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.
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5.2
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ICFR – material weakness relating to design: N/A
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5.3
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Limitation on scope of design:
The issuer has disclosed in its interim MD&A
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6.
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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, 2023 and
ended on June 30, 2023 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.
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Exhibit 99.4 |
1.
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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, 2023.
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2.
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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.
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3.
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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.
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4.
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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.
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5.
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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
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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.
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5.2
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ICFR – material weakness relating to design: N/A
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5.3
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Limitation on scope of design:
The issuer has disclosed in its interim MD&A
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6.
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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, 2023 and
ended on June 30, 2023 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.
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