REG - Guanajuato Silver Co - First Full Year of Production Completed

Guanajuato SilverAnnouncement

11/04/2023 07:00

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RNS Number : 7251V  Guanajuato Silver Company Ltd.  11 April 2023

 
 

Guanajuato Silver Successfully Completes First Full Year of Precious Metals
Production

~ GSilver Reports Year End 2022 Financial Results; Provides 2023 Production
Guidance ~

 

April 10, 2023 - Vancouver, British Columbia - Guanajuato Silver Company Ltd.
(the "Company" or "GSilver") (TSXV:GSVR)(AQUIS:GSVR)(OTCQX:GSVRF) is pleased
to announce selected financial information and consolidated production results
for the year ended December 31, 2022.  The Company's consolidated financial
statements for the year ended December 31, 2022 and Management's Discussion
and Analysis ("MD&A") thereon can be viewed under the Company's profile at
www. (http://www.sedar.com) sedar.com (http://www.sedar.com) . Production
results are from the Company's wholly owned El Cubo Mines Complex ("El Cubo"),
Valenciana Mines Complex (VMC), and San Ignacio Mine ("San Ignacio") located
in Guanajuato, Mexico, and the Topia Mine ("Topia") located in Durango,
Mexico.

 

Selected 2022 Highlights:

(All figures in US Dollars)

·      Record production for 2022 of 2.15 million silver-equivalent
ounces ("AgEq"); this included record production for the fourth quarter of
836,375 AgEq ounces derived from 401,244 ounces of silver, 3,907 ounces of
gold, 811,492 pounds of lead and 1,261,554 pounds of zinc.((1)) GSilver has
delivered continuous quarter-over-quarter increases in AgEq production since
the inception of precious metals processing in 2021.

·      Record silver production of over one-million ounces; GSilver is a
primary silver producer.

·      Successful ramp-up across all four producing silver mines remains
in-line with modeled expectations.

·      Record revenue for 2022 of $36.8M generated by a realized average
price of $21.23 per silver ounce, $1,783 per gold ounce, $0.92 per pound of
lead, and $1.42 per pound of Zinc.

·      Silver recoveries continue to exceed historical rates; the
average silver recovery for 2022 was 86%; the average gold recovery over the
same period was 84.5%.

·      Cash costs of $15.84 per AgEq ounce, and AISC of $21.55 per AgEq
ounce remain in-line with the Company's projections; AISC was influenced in
2022 by significant capital expenditures during ramp-up across all four
producing assets.

·      Positive mine operating cash flow((7)) of over $2M.

·      Over 60% of the net loss for 2022 comprises either non-cash or
one-time items((9)); net loss for the year totaled $26.7M.

·      As of December 31, 2022, the Company had cash and cash
equivalents of $8,832,936 and negative working capital of $5,972,704 compared
with cash of $8,234,043 and positive working capital of $1,670,108 as of
December 31, 2021.

"Having achieved producer status in late 2021, we have now successfully
completed our first full year of precious metals production from our expanding
portfolio of silver mines in central Mexico," said James Anderson, Chairman
and CEO. "Throughout 2022 we have exceeded many of our ramp-up targets, such
as very strong process plant recoveries, and consistently larger throughput
volumes of mineralized material. Our Company's rapid growth is demonstrated by
our strong quarter over quarter silver and gold production increases, which we
plan to accelerate throughout 2023. Our operations team remains focused on
delivering even greater success for 2023 as we aim to further enhance
Guanajuato Silver's status as one of the fastest growing silver producers in
Mexico."

2023 Production and Cost Guidance

In 2023, silver equivalent production is expected to range from 4.6 to 4.8
million ounces. Consolidated cash costs per ounce are expected to be slightly
lower compared to 2022; whereas AISC is expected to be similar to 2022 as the
Company completes several strategic capex initiatives in 2023; most notably
the Topia mill expansion and modernization, the reintegration of the central
Cata production shaft at Valenciana, and the installation of a dry stack
tailings facility at El Cubo.

 

1.     Silver equivalents are calculated using an 83.22:1 (Ag/Au), 0.05:1
(Ag/Pb) and 0.07:1 (Ag/Zn) ratio for 2022; and 80:1 (Ag/Au) ratio for 2021,
respectively.

2.     Cash cost per silver equivalent ounce include mining, processing,
and direct overhead. See Reconciliation to IFRS in the Company's Management
Discussion and Analysis.

3.     AlSC per oz include mining, processing, direct overhead, corporate
general and administration expenses, on-site exploration, reclamation and
sustaining capital. The production costs for the year ended December 31, 2021,
include mining cost from July to September 2021, prior to the commencement of
milling and concentrate production, and therefore differ from the production
costs for the three months ended December 31, 2021. See Reconciliation to IFRS
in the Company's Management Discussion and Analysis.

4.     See Reconciliation of earnings before interest, taxes,
depreciation, and amortization in the Company's Management Discussion and
Analysis

5.     See "Non-IFRS Financial Measures in the Company's Management
Discussion and Analysis.

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. See Reconciliation to IFRS in the Company's Management Discussion and
Analysis.

8.     These are non-IFRS financial measures and ratios. Further details
on these non-IFRS financial measures and ratios are provided at the end of
this press release and in the MD&A accompanying the Company's financial
statements on SEDAR at www.sedar.com (https://www.sedar.com) .

9.     Non-cash items include depreciation, stock-based compensation, loss
or gain on derivatives, change of fair value on contingent payments and
unrealized FX; one-time items include transaction costs associated with the
acquisition of MMR, and a one-time charge for care & maintenance of the
Valenciana Mines Complex prior to production restart.

 

 

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.

 

ON BEHALF OF THE BOARD OF DIRECTORS

"James Anderson"

Chairman and CEO

 

For further information regarding Guanajuato Silver Company Ltd., please
contact:

 

JJ Jennex, Gerente de Comunicaciones, T: 604 723 1433

E: jjj@Gsilver.com

Gsilver.com

 

VSA Capital - AQSE Corporate Adviser

T: +44 (0) 20 3005 5000

Simon Barton - Corporate Finance

Thomas Jackson - Corporate Finance

Andrew Monk - Corporate Broking

David Scriven - Corporate Broking

 

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.

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