Guanajuato Silver Co Ltd: A Strong Start to 2025 with Positive Mine Operating Income

In a remarkable display of resilience and strategic execution, Guanajuato Silver Company Ltd. (GSilver) has reported a positive mine operating income of US$4.8 million for the first quarter of 2025. This financial milestone marks a significant 82% increase quarter-over-quarter, underscoring the company’s robust operational performance amidst fluctuating market conditions.

Financial Highlights and Operational Efficiency

The company’s financial prowess is further highlighted by a record quarterly revenue of US$21.3 million, marking a 12% increase from the previous quarter. This revenue surge is primarily attributed to the strong performance of precious metals, with silver and gold prices standing at US$31.88/oz and US$2,842.80/oz, respectively. These favorable market conditions have played a pivotal role in bolstering GSilver’s financial outcomes.

Operational efficiency has been a key focus for GSilver, as evidenced by a 3% reduction in cash costs and a 6% decrease in all-in sustaining costs (AISC). These improvements have contributed to a remarkable 135% increase in adjusted EBITDA, reaching US$4.1 million. Such financial discipline and operational excellence have enabled GSilver to maintain four consecutive quarters of positive mine operating income, a testament to the company’s strategic management and operational capabilities.

Production and Market Dynamics

Despite a modest 1% quarter-over-quarter increase in production, reaching 738,006 AgEq ounces, GSilver has managed to navigate the complexities of the global metals market effectively. The company’s production strategy, centered around its wholly owned El Cubo Mines Complex, Valenciana Mines Complex, and the San Ignacio Mine, has been instrumental in achieving these results.

However, it’s important to note that GSilver reported a net loss for the quarter, albeit 6% lower than the fourth quarter of 2024. This outcome reflects the significant portion of revenue dependent on precious metals prices, with over 90% of revenue derived from silver and gold. The volatility of these markets poses challenges, yet GSilver’s strategic positioning and operational efficiencies have mitigated potential impacts.

Looking Ahead

As GSilver continues to navigate the dynamic landscape of the metals and mining sector, its recent financial performance and operational achievements set a positive tone for the remainder of 2025. The company’s focus on cost management, operational efficiency, and strategic exploration and development of silver and gold projects positions it well for sustained growth and success.

Investors and stakeholders can look forward to GSilver’s continued efforts to capitalize on favorable market conditions and its commitment to operational excellence. With a solid foundation and a clear strategic direction, GSilver is poised to build on its recent successes and further solidify its position in the global metals and mining industry.

For more detailed financial information and production results, stakeholders are encouraged to review GSilver’s condensed consolidated interim financial statements and Management’s Discussion and Analysis (MD&A) available on www.sedarplus.ca .