Americas Silver aims to deliver a compelling value proposition, leading silver leverage and superior shareholder returns through a focus on operating performance, cash flow generation and financial strength.
There are several components to this strategy:
Diversified Production Base
The Cosalá District in Sinaloa, Mexico and Galena Complex in Idaho, USA are well-established operating platforms that are positioned to deliver sustainable and growing production and free cash flow. With San Rafael in commercial production, silver equivalent production is anticipated to grow materially in 2018.
Improving Cash Cost Profile
Americas Silver has a proven track record in reducing cash costs through operational optimization. San Rafael is anticipated to provide a step-change reduction in cash costs in 2018.
Robust Reserve and Resource Base
Reserves and resources support sustainable operations at current prices, with further potential for profitable brownfield expansion at higher prices. Mine lives are greater than 10 years at both operations, supported by silver reserves of over 28 million ounces.
Focus on Exploration
Americas Silver has numerous attractive precious metals (silver-gold) and base metal (zinc-lead-copper) targets to support long-term operations and future growth. Capital has been dedicated to assess and generate exploration value across San Rafael, Zone 120 and El Cajon areas.
Enhanced Market Presence
Dual listing for increased liquidity, strong endorsement from key institutional investors, and greater access to pools of capital to support ongoing organic and external growth initiatives.
Americas Silver has strong optionality to both silver and base metal prices, better positioning the company to optimize its cash cost structure and future free cash flow generating potential.