Guanajuato Silver Achieves Second Quarter of Positive Operating Income

Guanajuato Silver Company Ltd. announced its financial results, marking a second consecutive quarter of positive mine operating income and adjusted EBITDA. For the quarter ending September 30, 2024, the company reported a mine operating income of $515,576 and an adjusted EBITDA of $892,277. The company's production facilities, located across Mexico, produced 779,797 silver-equivalent ounces in Q3, bolstered by increased silver output and significant production of gold, lead, and zinc.

Improvements in operational efficiency were noted, with a silver-equivalent ounce cost reduction to $23.88—all within an economic climate presenting various challenges. Despite these successes, Guanajuato Silver faced a net loss of $4.8 million, driven largely by non-cash items like a $1.66 million derivative loss tied to a gold loan. Revenue grew 17% from Q3 2023, yet declined compared to the last quarter, influenced partly by maintenance efforts at its facilities.

Although the company faced a negative working capital of $20.4 million, a positive equity financing of C$8.72 million was secured post-quarter. The financial performance reflects a strategic focus on sustaining and possibly boosting production capabilities. Despite challenges, the company remains optimistic about future efficiencies and output.