100% Owned Silver Mines
Darren Blasutti, President and CEO of Americas Silver Corporation talks about the company’s 100 percent owned silver mines.
Americas Silver is a silver producer and we’re focused on low-cost silver production. The company’s key projects are our two operating mines, the Galena Complex in the Silver Valley in Idaho and the Coastal Operations in Sinaloa Mexico. Both of our properties are 100 percent owned, both operations are significant silver producers. Our primary asset is our coastal properties in Mexico. We have built a new mine, it’s called the San Rafael mine. It’s a poly metallic so it includes silver, zinc and lead. The mine has just gone into production and it will drive significant earnings and cash flow for the company. I think the most unique aspect of the company is that in both Mexico in the United States we have high-grade silver, low-grade base metal projects and we also have high-grade base metal with lower grade silver. The reason that’s important is it allows us to take advantage of whatever commodity is doing well. America’s Silver has gone through a four-year turnaround. Management has decreased all in sustaining costs by over 70 percent, that has increased reserves by 30 percent and overall resources by 30 percent. We’re going to have a significant free cash flow coming out of our new mine that again will allow us to be the lowest cost silver producer in the world and it will allow us to not only put free cash flow on the balance sheet but allow us to explore and develop and grow our company.
Americas Silver aims to deliver a compelling value proposition, leading silver leverage among junior silver producers and an attractive relative valuation. There are several components to this strategy:
Diversified production base:
We expect our Cosalá District operations in Sinaloa, Mexico and our Galena Complex in Idaho, USA to deliver sustainable annual production of approximately 5.0 – 5.6 million silver equivalent ounces.
Improving cash cost profile:
We anticipate a decline in cash costs as current operations and brownfield development assets are optimized and cost synergies are realized following the completion of our recent business combination with U.S. Silver & Gold.
Robust reserve and resource base:
Our reserves and resources will support sustainable operations at current prices with further potential for profitable expansion at higher prices from existing earlier stage projects.
Enhanced market presence:
Americas Silver is considering listing its common shares on the NYSE “MKT” (a U.S. securities exchange) to increase trading volume and liquidity and to access a significantly deeper pool of new capital, greater international recognition and increased retail interest.
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