Guanajuato Silver Company Ltd. (TSX-V:GSVR) (OTCQX:GSVRF ) has released financial and operating results for the three and nine months ended September 30, 2023. All dollar amounts are in US dollars and prepared in accordance with IFRS Accounting Standards as issued by the International Accounting Standards Board. Production results are from the Company’s wholly owned El Cubo Mines Complex, Valenciana Mines Complex and San Ignacio mine in Guanajuato, Mexico, and the Topia mine located in Durango, Mexico.

James Anderson, Chairman & CEO of Guanajuato Silver, said, “Guanajuato Silver remains committed to achieving mid-tier producer status through a rapid combination of accretive mine acquisitions and the optimization of our existing mine portfolio. Over the third quarter we conducted a shift in operating tactics as we adjusted mining operations to target higher grades at Valenciana and El Cubo, and to achieve better efficiencies at Topia through an entirely new business model. All of our mines continue to progress through the ramp-up phase, and as we move our assets forward, we will continue to rely heavily on the business and technical acumen of our 100% Mexican operating team. The fourth quarter represents a turning point in our operations, and we are already seeing better performance at all our mines; with the precious metals market entering a new phase, we see tremendous opportunities to significantly expand upon our production profile so that we are able to offer investors direct exposure to silver and gold production.”

Q3 2023 Highlights

• Metals production during the quarter of 787,086 AgEq (silver equivalent) ounces derived from 425,488 ounces of silver; 3,441 ounces of gold; 935,738 pounds of lead; and 857,660 pounds of zinc (see footnote to table below for assumptions regarding the calculation of silver equivalents).
• Net loss decreased by 21% in Q3 to $7.0M compared to $8.5M in Q2; revenue of $15.6M for the quarter was down 7% compared to Q2.
• All-in sustaining cost (“AISC”) ¹ of $26.22 per AgEq ounce produced was higher than $22.47 for Q2 2023 because of lower mined tonnage during the quarter due to a reworking of stope rotation at El Cubo, the initial capital costs in changing the business model at Topia, and a temporary mine closure at San Ignacio; realized metal prices in Q3 were 3% lower for silver, 3% lower for gold, 2% higher for lead, and 4% lower for zinc as compared to Q2.
• Tonnes mined and milled decreased 23% and 24% respectively from Q2 to Q3; over the third quarter; a total of 134,865 tonnes were mined across the four producing silver mines, and a total of 132,484 tonnes were milled.
• Average silver and gold recoveries were 83.3% and 81.5% respectively for Q3 as compared to 88.5% silver recovery and 86.3% gold recovery in Q2, 2023.

¹AISC is a non-IFRS financial measure with no standardized meaning under IFRS, and therefore they may not be comparable to similar measures presented by other issuers. For further information and detailed reconciliations of non-IFRS financial measures to the most directly comparable IFRS measures see “Non-IFRS Financial Measures” in this News Release.

1. Silver equivalents are calculated using an 81.83:1 (Ag/Au), 0.04:1 (Ag/Pb) and 0.05:1 (Ag/Zn) ratio for Q3 2023, an 89.97:1 (Ag/Au), 0.05:1 (Ag/Pb) and 0.08:1 (Ag/Zn) ratio for Q3 2022; an 82.21:1 (Ag/Au), 0.04:1 (Ag/Pb) and 0.05:1 (Ag/Zn) ratio for YTD 2023 and an 82:22:1 (Ag/Au) ratio for YTD 2022.
2. Cash cost per silver equivalent ounce include mining, processing, and direct overhead. This is a non-IFRS financial measure with no standardized meaning under IFRS, and therefore they may not be comparable to similar measures presented by other issuers. For further information and detailed reconciliations of non-IFRS financial measures to the most directly comparable IFRS measures see “Non-IFRS Financial Measures” in this News Release.
3. AlSC per Ag/Eq oz include mining, processing, direct overhead, corporate general and administration expenses, on-site exploration, reclamation, and sustaining capital. This is a non-IFRS financial measure with no standardized meaning under IFRS, and therefore they may not be comparable to similar measures presented by other issuers. For further information and detailed reconciliations of non-IFRS financial measures to the most directly comparable IFRS measures see “Non-IFRS Financial Measures” in this News Release
4. EBITDA and Adjusted EBITDA are non-IFRS financial measure with no standardized meaning under IFRS, and therefore they may not be comparable to similar measures presented by other issuers. For further information and detailed reconciliations of non-IFRS financial measures to the most directly comparable IFRS measures see “Non-IFRS Financial Measures” in this News Release
5. Cost per tonne and working capital are non-IFRS financial measures with no standardized meaning under IFRS, and therefore they may not be comparable to similar measures presented by other issuers. For further information and detailed reconciliations of non-IFRS financial measures to the most directly comparable IFRS measures see “Non-IFRS Financial Measures” in this News Release.
6. Based on provisional sales before final price adjustments, before payable metal deductions, treatment, and refining charges.
7. Mine operating cash flow before taxes is calculated by adding back depreciation, depletion, and inventory write-downs to mine operating loss. This is a non-IFRS financial measure with no standardized meaning under IFRS, and therefore they may not be comparable to similar measures presented by other issuers. For further information and detailed reconciliations of non-IFRS financial measures to the most directly comparable IFRS measures see “Non-IFRS Financial Measures” in this News Release.

This news release should be read in conjunction with the Company’s condensed interim consolidated financial statements for the six-month period ended June 30, 2023 and related Management’s Discussion and Analysis available at www.sedarplus.com.

About Guanajuato Silver

GSilver is a precious metals producer engaged in reactivating past producing silver and gold mines in central Mexico. The Company produces silver and gold concentrates from the El Cubo Mine, Valenciana Mines Complex, and the San Ignacio mine; all three mines are located within the state of Guanajuato, which has an established 480-year mining history. Additionally, the Company produces silver, gold, lead, and zinc concentrates from the Topia mine in northwestern Durango. With four operating mines and three processing facilities, Guanajuato Silver is one of the fastest growing silver producers in Mexico.

Technical Information

Reynaldo Rivera, VP of Exploration of GSilver, has approved the scientific and technical information contained in this news release. Mr. Rivera is a member of the Australasian Institute of Mining and Metallurgy (AusIMM – Registration Number 220979) and a “qualified person” as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects.