Silver Futures Dec 2018 (SILVER)

[NYBob]

AMERICAS SILVER CORPORATION REPORTS FOURTH QUARTER AND YEAR-END 2018 FINANCIAL RESULTS AND PROVIDES 2019 GUIDANCE
TORONTO, ONTARIO - March 4, 2019 - Americas Silver Corporation (TSX: USA) (NYSE American: USAS) (“Americas Silver” or the “Company”) today reported consolidated financial and operational results for the fourth quarter and year-end of 2018.

This earnings release should be read in conjunction with the Company’s Management’s Discussion and Analysis, Financial Statements and Notes to Financial Statements for the corresponding period, which have been posted on the Americas Silver Corporation SEDAR profile at www.sedar.com, on its EDGAR profile at www.sec.gov, and are also available on the Company’s website at www.americassilvercorp.com. All figures are in U.S. dollars unless otherwise noted.

Fourth Quarter and Year-End Highlights

Revenue of $68.4 million in 2018 compared to revenue of $54.3 million in 2017, an increase of 26%, despite significantly lower metal prices in the second half of 2018.
Net cash generated from operating activities in 2018 of $9.0 million compared to net cash flow generated from operating activities of $1.6 million in 2017.
Net loss of $10.7 million for the year or ($0.25) per share, compared to a net loss of $3.5 million or ($0.09) per share in 2017, an increase in net loss of 208% and net loss per share of 178% compared to fiscal 2017. The increase in net loss was due to lower metal prices and increases in non-cash and non-reoccurring items, including asset write-downs, a tax contingency, and transaction costs.
The Company entered into a definitive agreement with Pershing Gold Corporation (“Pershing Gold”) to complete a business combination at the end of September 2018 (the “Transaction). The parties to the Transaction are currently awaiting regulatory approval by the Committee of Foreign Investment in the United States (“CFIUS”).
Year-end production of 6.3 million consolidated silver equivalent ounces[1], an increase of 32% year-over-year, including 1.4 million consolidated silver ounces.
Fourth quarter production of 1.8 million consolidated silver equivalent ounces, an increase of 32% year-over-year, including 0.4 million consolidated silver ounces.
Year-end consolidated zinc production of 34.2 million pounds and lead production of 30.5 million pounds, increases of 194% and 20%, respectively.
Cost of sales of $8.29/oz. equivalent silver, by-product cash cost[2] of negative ($0.63/oz.) silver, and all-in sustaining cost3 (“AISC”) of $9.80/oz. silver for the year, representing year-over-year decreases of 18%, 107%, and 26%, respectively.
Cost of sales of $7.87/oz. equivalent silver, by-product cash cost of $1.14/oz. silver, and AISC of $11.78/oz. silver for the fourth quarter of 2018, representing year-over-year decreases of 22%, 87%, and 17%, respectively.
The Company had a cash balance of $3.5 million and working capital balance of $6.4 million as at December 31, 2018.
The Company will be hosting a conference call subsequent to the closing of the Pershing Gold acquisition to discuss the Transaction, financing for the development of Relief Canyon Mine, and year-end 2018 financial results.
“The Company had strong cash flow growth during San Rafael’s ramp-up to full production in 2018 despite the significant decrease in metal prices in the second half of the year,” said Darren Blasutti, President & CEO of Americas Silver. “With the Pershing Gold shareholder votes behind us, we are looking forward to closing the Transaction immediately after CFIUS approval. We expect a concurrent Board construction approval and announcement of fully-funded financing for the Relief Canyon project. The combined company will be focused on increasing silver production and bringing Relief Canyon to first pour before the end of the 2019.”

Pershing Gold Acquisition Update

Respective shareholders of Americas Silver and Pershing Gold provided the requisite approvals for the previously announced Transaction between the two companies on January 9, 2019. The Transaction is currently awaiting regulatory approval from CFIUS. The Company views discussions with CFIUS as progressing well and expects that the necessary approvals before the end of the first quarter.

https://www.americassilvercorp.com/news-releases/2019/americas-silver-corporation-reports-fourth-quarter-and-year-end-2018-financial-results-and-provides-2019-guidance/

https://www.americassilvercorp.com
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