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Guanajuato Silver Announces Q2 2022 Financial and Operating Results

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Guanajuato Silver Announces Q2 2022 Financial and Operating Results

 

 

 

 

 

Q2 Production of 337,760 Silver Equivalent ounces

 

Guanajuato Silver Company Ltd. (TSX-V:GSVR) (OTCQX:GSVRF) is pleased to announce financial and operating results for the three months ended June 30, 2022. All dollar amounts are expressed in US dollars. Production results are from the Company’s wholly owned El Cubo Mine Complex and El Pinguico project in Guanajuato, Mexico.

 

“Month over month improvements in precious metals production, recoveries, and tonnes milled during Q2 were the hallmarks of a positive trend that we see continuing through the remainder of the year as we complete the ramp-up phase at El Cubo,” said James Anderson, Chairman and CEO of Guanajuato Silver. “We remain on-track to accomplish all of our original objectives at El Cubo as we now look to our Mexican operations teams to mirror the same success at our newly acquired mining assets of San Ignacio, Valenciana, and Topia, where production activities have already begun; the details of which will be discussed in a subsequent news release.”

 

 

Q2 2022 – Demonstrating Month over Month Operations Improvements

 

Second quarter 2022
April May June
Operating
Tonnes milled 29,384 31,813 33,015
Silver ounces produced 49,275 51,921 54,716
Gold ounces produced 721 711 729
Silver equivalent (“Ag/Eq”) oz produced (1) 108,815 111,965 116,979
Average silver recovery (%) 79.7 81.0 81.9
Average gold recovery (%) 80.8 83.1 83.5
  1. Silver equivalents are calculated using an average of 83.4:1 (Ag/Au) ratio for the second quarter of 2022.

 

Q2 2022 Selected Highlights

  • Increasing production: 155,912 ounces of silver and 2,161 oz of gold for 337,760 oz silver equivalent1 , representing a 22% increase over Q1.
  • Milled tonnage increasing with significant capacity still available: In Q2, 94,212 tonnes were milled at El Cubo; the average rate for the quarter was approximately 30,000 tonnes per month, which is well below El Cubo’s maximum milling capacity of over 45,000 tonnes per month. Therefore, El Cubo has abundant capacity available to accommodate mineralized material from the recently purchased San Ignacio and Valenciana Mines Complex ( See GSilver news release dated August 4, 2022 – GSilver Closes Acquisition of Great Panther’s Mexican Mining Assets ).
  • Cash cost per AgEq ounce produced continues to improve: Cash costs 2 were 16% lower in Q2 at $16.98 compared to $20.12 for Q1, 2022. This result was in-line with expectations; improving costs per AgEq ounce produced is primarily due to increasing optimization of operations at the Villalpando and Santa Cecilia mine areas of El Cubo. AISC per AgEq ounce produced was also lower by 6% , which was also in-line with Company projections.
  • Revenue marginally lower: Q2 revenue of $6,133,989 was 4% lower compared to Q1; this was largely reflective of a 6% decrease in silver prices over the same period.

 

Three Months Ended
June 30 2022 March 31 2022 Dec 31
2021
Change
Q2 vs Q1
Change Q1-22 vs Q4-2021
Production
Tonnes mined 90,045 81,338 89,082 11 % (9 %)
Tonnes milled 94,212 86,288 77,524 9 % 11 %
Silver ounces produced 155,912 125,423 124,750 24 % 1 %
Gold ounces produced 2,161 1,880 1,440 15 % 31 %
Silver equivalent (Ag/Eq) oz

produced (1)

337,760 275,823 235,609 22 % 17 %
Cost per tonne (2) 61.22 64.70 63.35 (5 %) 2 %
Cash cost per Ag/Eq ounce (1)(2) 16.98 20.12 20.36 (16 %) (1 %)
AISC per Ag/Eq ounce (1)(2) 24.06 25.67 33.31 (6 %) (23 %)
Financial $ $ $
Revenue 6,133,989 6,386,638 4,116,811 (4 %) 55 %
Cost of Sales 7,790,285 8,123,761 6,350,863 (4 %) 28 %
Mine operating loss (1,656,296 ) (1,737,123 ) (2,234,052 ) (5 %) (22 %)
Net loss (3,521,391 ) (4,939,152 ) (4,746,245 ) (29 %) 4 %
EBITDA (2) (1,130,710 ) (2,503,405 ) (2,858,086 ) (55 %) (12 %)
Silver ounces sold 159,840 134,281 105,203 19 % 28 %
Gold ounces sold 2,195 2,007 1,179 9 % 70 %
Ag/Eq ounces sold (1) 342,987 294,842 199,526 16 % 48 %
Realized silver price per oz (2) (3) 22.56 23.97 23.35 (6 %) 3 %
Realized gold price per oz (2) (3) 1,873.26 1,864.26 1,784.02 >1% 4 %
Working capital (2) (2,046,261 ) (1,198,721 ) 1,670,108 (71 %) (172 %)
Shareholders
Loss per share – basic and diluted $ (0.02 ) $ (0.02 ) $ (0.02 ) (0 %) (0 %)
Weighted Average Shares

Outstanding

226,033,272 224,556,314 210,531,741 1 % 7 %
  1. Silver equivalents are calculated using an 83.4:1 (Ag/Au) ratio for Q2 2022 and 80:1 for Q1 2022 and Q4 2021 respectively.
  2. The Company reports non-IFRS performance measures which include cash costs per silver equivalent ounce produced, all-in sustaining cost per silver equivalent ounce produced, total production cost per tonne, realized silver price per ounce sold, realized gold price per ounce sold, working capital and EBITDA. These measures are widely used in the mining industry as a benchmark for performance, but do not have a standardized meaning under IFRS and the methods used by the Company to calculate such measures may differ from methods used by other companies with similar descriptions. For a complete description of how the Company calculates such measures and a reconciliation of certain measures to IFRS terms please see the applicable description in the Company’s management discussion and analysis for the three months ended June 30, 2022, filed on SEDAR at www.sedar.com .
  3. Based on provisional sales before final price adjustments, before payable metal deductions, treatment, and refining charges.

 

The complete interim financial statements and management’s discussion & analysis for the three months ended June 30, 2022, can be viewed on SEDAR at www.sedar.com and at the Company`s website at gsilver.com.

 

Technical Information

 

Hernan Dorado Smith, a director and officer of GSilver and a “qualified person” as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects, has approved the scientific and technical information contained in this news release.

 

About Guanajuato Silver

 

GSilver is a precious metals producer engaged in reactivating past producing silver and gold mines near the city of Guanajuato, Mexico, which has an established 480-year mining history. With five mines and three processing facilities, the Company is one of the fastest growing silver producers in Mexico.

 

Posted August 24, 2022

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