Guanajuato Silver Company Ltd Stock Price, News & Analysis

Guanajuato Silver reported positive Q3 2024 results with mine operating income of $515,576, marking the second consecutive quarter of positive performance. The company achieved production of 779,797 AgEq ounces, including 413,607 ounces of silver and 3,617 ounces of gold. Revenue reached $18.3M, a 17% increase over Q3 2023. The company reported positive adjusted EBITDA of $892,277 and improved operational metrics with AISC of $23.88 per AgEq ounce, a 7% improvement over the previous quarter. Notable achievements include the complete repayment of its $7.5M OCIM facility and reaching over 3M AgEq ounces produced at El Cubo since late 2021.

Guanajuato Silver has reported significant drilling results from its Valenciana Mines Complex in Mexico. The company completed 679 meters of infill drilling across seven holes at the Cata mine area, and 615 meters of diamond drilling at the Maravillas zone. Notable results include an intercept of 3.19m grading 492 g/t AgEq, including 0.42m of 2808 g/t AgEq at Maravillas. The drilling program focused on the upper vein system of Veta Madre, identifying four main veins: Alto1, Alto2, Alto3, and Alto4. The Maravillas section, despite being centrally located, remains the most under-explored area of the complex.

Guanajuato Silver (TSXV:GSVR)(OTCQX:GSVRF) reported a fatal accident at its San Ignacio mine in Guanajuato, Mexico, on October 22. Operations in the immediate area have been temporarily suspended while the company cooperates with Mexican authorities in the investigation. The company stated it will review and potentially implement additional safety protocols based on the investigation's findings. Management expressed commitment to workforce safety and support for those affected by the incident.

Guanajuato Silver Company (GSVR) has achieved a significant production milestone at its El Cubo mill, producing over 3,000,000 ounces of silver-equivalent (AgEq). This triggers the final contingent payment of US$1,000,000 owed to Endeavour Silver Corp. as part of the El Cubo mine and mill complex purchase in 2021. The company will settle half of this payment through the issuance of shares.

Additionally, Ocean Partners UK , a metals off-take and trading firm, has agreed to accept shares for debt for two months of outstanding payments on the existing Gold Loan Credit Facility. This will result in Ocean Partners receiving approximately 9,771,635 shares for a total consideration of about US$1.8 million. The company has also arranged to settle approximately US$250,000 in outstanding liabilities through share issuance to an arm's length third party.

Guanajuato Silver Company (TSXV:GSVR)(OTCQX:GSVRF) has fully repaid its US$7,500,000 silver and gold pre-payment facility to OCIM Metals & Mining S.A. This repayment signifies the company's improving financial position and frees up significant monthly cash flows. The loan from OCIM was instrumental in GSilver's acquisition of the El Cubo mine and milling facility, enabling its rapid transition to producer status.

With this repayment, GSilver now has only one outstanding loan - the Expanded Facility with Ocean Partners UK , repayable in fixed monthly installments of approximately 338 troy ounces of gold over 30 months. The company's production averaged over 1600 ounces of gold and 137,000 ounces of silver monthly during the first half of 2024, demonstrating its growing capacity as a significant precious metals producer in Mexico.

Guanajuato Silver Company (TSXV:GSVR)(OTCQX:GSVRF) has announced significant changes to its executive team. Juan Martin Pena, a 36-year veteran of the Mexican mining industry, has been appointed as VP Operations in Mexico. Pena brings extensive experience from roles at major mining companies like Grupo Mexico, First Majestic Silver, and Industrias Penoles.

Concurrently, the company announced the retirement of Gerardo and Hernan Dorado. Hernan Dorado has resigned as Director and Chief Strategy Officer, while Gerardo Dorado will retire as VP of Projects at the end of September. The company has also granted 300,000 stock options to an Officer at $0.25 per share, exercisable over five years.

Guanajuato Silver Company (GSVR) reported record revenue of $20.5M in Q2 2024, a 16% increase from the previous quarter and 22% year-over-year. The company achieved its first positive mine operating income of $947,433 and positive EBITDA of $2,007,907. Production reached 823,679 silver-equivalent ounces, derived from 398,685 oz silver, 4,255 oz gold, 806,295 lbs lead, and 1,067,538 lbs zinc. Cash costs were $19.93 per AgEq ounce, with AISC at $25.55. The company's working capital position improved by 21% over Q1. Despite these improvements, GSilver reported a net loss of $2.7M for the quarter, though this represents a $4.6M improvement from Q1.

Guanajuato Silver Company (GSVR:TSXV, GSVRF:OTCQX) has provided an operations update for several projects. At the Topia Mine, a new filter system for silver-gold-lead concentrates has been commissioned, with a second filter for silver-zinc concentrate production planned. These filters are expected to increase production capacity and potentially improve concentrate grades.

At the San Ignacio Mine, a new ore sorter is nearing commissioning, which is anticipated to improve efficiencies and increase silver-equivalent production. The El Horcon Mine project has resumed processing surface stockpile material, generating over 125,159 silver-equivalent ounces from November 2023 to June 2024. An underground sampling program has been completed at Horcon, with plans for a drill campaign to potentially restart commercial operations in the future.

Guanajuato Silver Company (TSXV:GSVR) has filed and received a receipt for a final short form base shelf prospectus with securities regulatory authorities across Canada. This prospectus allows GSilver to offer up to US$65 million of various securities over the next 25 months, providing financial flexibility for the company's growth plans.

CEO James Anderson emphasized that this move will support the company's efforts to increase precious metals production at their four producing silver mines in Mexico. The specific terms of any offering will be detailed in future shelf prospectus supplements. Currently, GSilver has not entered into any agreements for the sale of securities and has no immediate plans to issue them under this prospectus.