Inside Americas Gold & Silver: The U.S. Antimony Edge and Silver Growth Story in Today’s Supercycle

Key Concepts

America's Gold and Silver: A mining company focused on silver and gold production, with a significant turnaround story and a focus on critical minerals.
Galina Asset (Idaho, USA): The company's primary silver mine, located in the Silver Valley, known for its high-grade silver, gold, copper, antimony, and lead production.
Kosola Asset (Mexico): The company's second producing asset, focused on gold and silver concentrate production.
Antimony: A critical mineral for the US Department of Defense and Department of War, used in munitions and missiles. The US currently has very limited domestic production, with China being a major supplier.
Critical Minerals: Metals and elements deemed essential for national security and economic prosperity, including gold, silver, copper, lead, and antimony in the context of America's Gold and Silver's operations.
Longhole Mining Method: A more efficient and safer mining technique compared to traditional jackleg drilling and blasting, which America's Gold and Silver is implementing.
Turnaround Story: Refers to a company that has faced financial difficulties and operational challenges but is undergoing a significant improvement and growth phase.
Organic Growth: Growth generated from a company's existing operations and assets, such as increased production from its mines.
SCP Resource Finance: An investment firm that provides coverage and analysis for resource companies, including America's Gold and Silver.
Wealthon: A platform for investors, hosting conferences and providing resources related to the precious metals sector.

America's Gold and Silver: A Turnaround Story and Critical Mineral Focus

This summary details an interview with Paul Hewitt, CEO of America's Gold and Silver, discussing the company's strategic direction, operational improvements, and its significant role in the production of critical minerals, particularly antimony. The interview highlights the company's transformation from a capital-starved entity to a growing producer with substantial growth potential.

Galina Asset: Revitalization and Production Growth

Location and Jurisdiction: The Galina asset is situated in the Silver Valley of Idaho, USA, described as one of the premier silver jurisdictions globally.
Resource Base: The mine boasts over 150 million ounces of silver in reserves.
Production Targets: The company aims to increase production from its current 1.2 million ounces per year to 5 million ounces annually, with a long-term vision of reaching 7 to 10 million ounces per year. This level of production, combined with the reserve base, suggests a mine life of 15 to 20 years.
Historical Underinvestment: For over two decades, the Galina asset has suffered from a lack of capital investment, leading to no exploration or drilling for a decade.
Recent Exploration Success: Drilling has resumed in the last three months, yielding "spectacular hits" with grades more than double and triple the average. Specific examples include intercepts of 3.4 meters grading 983 grams per tonne and a remarkable hit of 25,000 grams per tonne, which is 60 times the average grade.
Grade: The current mill grade is exceptionally high, ranking as the third highest globally in the last quarter, averaging 480 grams per tonne.

Operational Turnaround: Four Key Steps

Paul Hewitt outlines a four-step plan to revitalize the Galina mine:

Shaft Repair: Phase one of two phases for shaft repair has been completed. This work, costing approximately $4 million, involved changing motors and has doubled the shaft's capacity from 1,750 to 2,250 tons. This is a significant cost saving compared to sinking a new shaft, which would cost an estimated $600 to $800 million.
Braking System Upgrade: The next step involves adding a new braking system to the shaft, which will further increase capacity by an additional 40 tons per hour.
Mining Method Change: The company is transitioning from traditional jackleg drilling and blasting to the longhole mining method. This method is more labor-efficient, safer, and has a higher productivity rate. Neighbors six miles away are successfully employing this method at deeper levels.
- Longhole Mining Details: This method requires a good plan and competent rock. The steep veins at Galina are well-suited for this technique. The company has experienced longhole mining professionals.
- Demonstrated Success: A 7,000-ton stope was mined using the longhole method in just 28 days, a process that would have taken approximately 14 months using conventional methods. This demonstrates a significant improvement in efficiency.
Batch Plan Implementation: The final step involves implementing a batch plan, expected by mid-2026, which will integrate the completed shaft upgrades and the new longhole mining method with new equipment. This will enable consistent and efficient production.

Kosola Asset: Consistent Performance and New Discoveries

Location and Production: The Kosola asset in Mexico produces gold and silver concentrate, which is then trucked out.
Team and Performance: The company highlights a "rockstar team" in Mexico, and the asset is described as the "Energizer Bunny" for its consistent performance.
Record Production: The mine achieved its best month of production in its history in the previous month.
New Zone Discovery: The company is entering a new area, EC120, discovered recently, which is generating significant encouragement.
Historical Underinvestment: Similar to Galina, the Kosola asset has also been starved for capital for years.

Capitalization and Investor Relations

Initial Funding: America's Gold and Silver raised $50 million on day one of its new management's tenure.
SCP Resource Finance Partnership: SCP Resource Finance has provided assistance and has recently launched coverage on the company, with analyst Justin Chan producing a highly positive report with a strong target price.
Wealthon Collaboration: The company is actively involved with Wealthon, participating in their silver conference and benefiting from their investor outreach.

The Antimony Opportunity: A Strategic Imperative

Critical Mineral Status: Antimony is identified as a critical mineral for the US Department of Defense and Department of War, essential for munitions and missiles.
US Production Gap: The US currently produces very little antimony, and America's Gold and Silver is the only producing antimony mine in the US.
China's Export Ban: China has announced a cessation of antimony sales to the US starting in November 2024, creating a significant supply shortage for the US.
Government Interest: The US government is actively engaging with mining companies like America's Gold and Silver to secure domestic antimony supply.
Antimony as a Byproduct: Antimony is a byproduct of the ore at the Galina mine, meaning it is extracted during the silver mining process without additional mining costs. This makes its production highly profitable.
Revenue Potential: The antimony byproduct could potentially reduce the company's overall production costs by $10 to $15 per ounce of silver, translating to an estimated $50 million in annual revenue at 5 million ounces of silver production.
Current Processing and Future Plans: Currently, the antimony concentrate is shipped to Canada, and the company receives a small payment for it. However, the company is exploring options to process the antimony domestically, potentially through a leaching facility, to capture its full value. This could involve discussions with the government and private sector partners.
No Equity Raise Required: The CEO emphasizes that the antimony opportunity will not necessitate an equity raise, as the value is already present in the ore. The focus is on optimizing the extraction and sale of this valuable byproduct.
Modeling Oversight: Notably, the antimony component is not yet factored into financial models by analysts like Justin Chan, indicating a potential upside surprise for investors.

Other Critical Minerals and Investor Outlook

Five Critical Minerals: In addition to silver and gold, the Galina mine produces copper and lead, and the antimony production makes it a producer of all five critical minerals on the US list from a single mine.
Investor Signposts for 2026: Investors should monitor:
- Project Progress: Specifically, the ongoing shaft work and its impact on capacity.
- Production Guidance: The company will issue guidance early next year and aims to achieve it, drawing on a track record of consistent delivery.
- Antimony Story: The development and realization of the antimony byproduct's value.
- Production Ramp-up: The increase in silver production towards the 5 million ounce per year target.

Silver Market Outlook

Strong Conviction: The interview references the SCP Silver Conference where speakers, including Eric Sprott, expressed strong conviction in a significant silver rally.
Price Targets: Price targets for silver range from $50 to $100-$150 per ounce, indicating that the current market is considered to be in the "first inning" of a bull market.
Investment Opportunity: Given the projected rally, silver is presented as a compelling investment, with America's Gold and Silver being a prime candidate due to its significant silver production (80% of revenue).

Collaboration with Eric Sprott and New Found Gold

Ongoing Relationship: Paul Hewitt continues to collaborate with Eric Sprott, serving as Chairman of the Board for New Found Gold.
New Found Gold: While not as actively involved as at America's Gold and Silver, Hewitt expresses high regard for New Found Gold's management, particularly CEO Keith Ball, and its strong performance.

Conclusion

America's Gold and Silver is presented as a company undergoing a significant transformation, driven by operational improvements at its Galina mine, a strong silver market outlook, and a unique opportunity in antimony production. The company's focus on critical minerals, coupled with its strategic revitalization plan and experienced management, positions it for substantial growth and value creation for investors. The antimony byproduct, in particular, is highlighted as a significant, yet largely unmodeled, upside potential.