REG - Guanajuato Silver Co - Q3 2022 Operating and Financial Results

Guanajuato SilverAnnouncement

30/11/2022 09:00

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RNS Number : 0694I  Guanajuato Silver Company Ltd.  30 November 2022

30 November 2022

 

Guanajuato Silver Company Ltd

("GSilver" or the "Company")

 

 

Q3 2022 Operating and Financial Results

 

Guanajuato Silver Company Ltd. (TSXV:GSVR)(OTCQX:GSVRF)(AQSE:GSVR), a precious
metals producer in Mexico, is pleased to announce operating and financial
results for the three months ended September 30, 2022. The full version of the
financial statements and management's discussion and analysis can be viewed on
the Company's website or on SEDAR at www.sedar.com. The following production
results are from the Company's wholly owned El Cubo Mines Complex ("El Cubo")
and the San Ignacio Mine ("San Ignacio") in Guanajuato, Mexico, and the Topia
Mine ("Topia") in Durango, Mexico. All amounts are in U.S. dollars unless
stated otherwise.

Third Quarter 2022 Highlights:

·     Record Production: 700,264 silver equivalent ("AgEq") ounces, up
107% from Q2 2022. Total production consisted of 329,298 ounces of silver,
3,226 ounces of gold, 537,608 pounds of lead and 677,127 pounds of zinc.

·     Cash Costs: $13.86 per AgEq ounce representing a decrease of 19%
compared to Q2.

·     All-in Sustaining Costs ("AISC"): $19.53 per AgEq ounce, also a 19%
decrease compared to Q2.

·     Cash on Hand: At quarter end, the Company had cash of $6,365,025.

·     Opportunistically purchased Silver and Gold: At depressed prices to
use to extinguish a portion of the OCIM loan payment requirements.

·     Cost per tonne: increased 48% for the quarter because of the
addition of the Topia Mine, where the mining of narrow, exceptionally
high-grade veins requires a number of changes to mining and milling method,
especially to reduce dilution.

·     Net loss: increase of 139% was partly attributed to lower realized
silver and gold prices, legal and professional fee costs associated with the
acquisition of MMR (See GSilver news release dated August 4, 2022 - GSilver
Closes Acquisitions of Great Panther's Mexican Mining Assets
(https://gsilver.com/news/2022c/794-ilverlosescquisitionofreatanthersexicanin20220804)
), and production costs from the integration of the San Ignacio and Topia
operations.

"We continue to achieve quarterly increases measured both in tonnage mined,
and precious metals produced, which reflects the efficacy of our ramp-up
programs at our four producing silver mines," said James Anderson, Chairman
and CEO of GSilver. "In parallel, we are successfully driving down production
cash costs and all-in sustaining costs. As silver equivalent production
continues to increase each quarter, we expect to see corresponding operating
costs continue to decline."

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.

 

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((1))

 

VSA Capital - AQSE Corporate Adviser

T: +44 (0) 20 3005 5000

Simon Barton - 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 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.

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