Guanajuato Silver Announces Year-End and Q4 2025 Results Cash and cash equivalents totaled $41.5M at the end of the quarter.
April 29, 2026 – VANCOUVER, BRITISH COLUMBIA – Guanajuato Silver Company Ltd. (the “Company” or “GSilver”) (TSXV:GSVR) (OTCQX:GSVRF) is pleased to announce financial information and production results for the three and twelve months ended December 31, 2025. The Company’s consolidated financial statements for the year ended December 31, 2025, and Management’s Discussion and Analysis (“MD&A”) thereon can be viewed under the Company’s profile at www.sedarplus.ca. All dollar amounts are in US dollars (US$) and prepared in accordance with IFRS Accounting Standards (“IFRS”) as issued by the International Accounting Standards Board. Production results are from the Company’s wholly owned El Cubo Mines Complex (“El Cubo”), Valenciana Mines Complex (“VMC”), and the San Ignacio Mine (“San Ignacio”) located in Guanajuato, Mexico, and the Topia Mine (“Topia”) located in Durango, Mexico.
Selected Q4 2025 Highlights
- Mine Operating Income of $4.0M represented a 375% increase over Q3; Working Capital* of $14.2M vs $5.4M, represented a 163% increase over the previous quarter.
- Revenue increased by 40% to $22.7M in Q4 from $16.3M in Q3, 2025.
- Production during Q4 was 295,836 ounces of silver (an increase of 21% over the previous quarter), 2,110 ounces of gold (an increase of 4% over the previous quarter), 807,449 pounds of lead (an increase of 35% over the previous quarter), and 875,798 pounds of zinc (an increase of 18% over the previous quarter).
- Grades of Silver and Gold were 37% and 15% higher respectively, showing a continued trajectory toward higher quality ounces.
- Silver represented 64% of total revenue; with 94% of revenue in Q4 derived from silver and gold sales, Guanajuato Silver remains a genuine precious metals producer with outsized leverage to the silver price.
- Realized prices were $55.54 for silver and $4,161.94 for gold in Q4.
- Cash and cash equivalents totaled $41.5M at the end of the quarter, of which $2M was categorized as restricted cash.
James Anderson, CEO & Chairman, said, “The fourth quarter saw notable production increases across all metals produced; output for silver, gold, zinc and lead were all higher, reflecting the impact of improving mine development and better operational discipline. For Q4 2025, revenue was up by 40%, and mine operating cashflow before taxes* was up over 1800% vs the previous quarter; this highlights the advantageous position we have built as a producer of silver and gold during a rising market for precious metals. We are currently working to fully integrate our newly acquired Bolanitos gold-silver mine into our operations; having closed the Bolanitos acquisition on January 15th, 2026, we eagerly look forward to the public release of our Q1 financial results, projected within the next 30 days; this will be the first time investors will be able to see the impact of production from Bolanitos combined with this new silver and gold pricing environment.”
*Working capital and mine operating cashflow before taxes 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".
The following tables summarize the Company’s consolidated operating and financial results for the three months ended December 31, 2025, as compared to the three months ended September 30, 2025. All amounts are expressed in thousands of United States (“US”) dollars except per share amounts, realized prices, tonnes and ounces or unless otherwise stated.
Three months ended December 31 September 30 Consolidated % Change 2025 2025 Operating
| Tonnes mined | 75,827 | 85,017 | (11%) |
| Tonnes milled | 72,567 | 85,060 | (15%) |
| Average tonnes milled per day | 864 | 1,013 | (15%) |
| Average silver grade (g/t) | 142.05 | 103.48 | 37% |
| Average gold grade (g/t) | 1.05 | 0.91 | 15% |
| Average silver recovery (%) | 87.85 | 86.71 | 1% |
| Average gold recovery (%) | 83.36 | 81.10 | 3% |
| Silver ounces produced | 295,836 | 245,369 | 21% |
| Gold ounces produced | 2,110 | 2,025 | 4% |
| Lead produced (lbs) | 807,449 | 597,269 | 35% |
| Zinc produced (lbs) | 875,798 | 741,595 | 18% |
| Silver ounces sold | 295,414 | 280,511 | 5% |
| Gold ounces sold | 2,218 | 2,263 | (2%) |
| Lead sold (lbs) | 783,418 | 676,615 | 16% |
| Zinc sold (lbs) | 811,587 | 967,247 | (16%) |
The financial results for the three months ended December 31, 2025 included a net loss of $25.6M, of which accounting accruals of non-cash items totalled $25.0M, or over 98% of the net loss for the quarter; the largest of these non-cash items are as follows:
- $10.3 million accrued liability provision for legal costs and losses related to the potential unfavorable outcome in the lawsuit with NucTech Mexico, S.A. de C.V. announced on July 22, 2025 and updated on December 4, 2025; this lawsuit remains under appeal and will continue to be vigorously defended by the Company.
- A non-cash $6.8M derivative accounting loss generated by the gold-loan with Ocean Partners. This non-cash loss accounted for over 25% of the total net loss; the loan structure continues to act as a synthetic hedge to the Company’s gold production.
- $2.8M for other legal accruals.
- A $1.2M write-down of the Cata mill, which was put on care & maintenance in December 2025.
- A $2.4M write-off for legacy Value Added Tax that was determined to be non-recoverable.
| Three months ended December 31 September 30 Consolidated % Change 2025 2025 | |
|---|---|
| $ $ Revenue 22,720 16,277 40% Cost of sales (18,660) (17,755) 5% Production costs (17,433) (14,525) 20% Transportation and selling costs (174) (558) (69%) | |
| Inventory changes (1) (1,484) | (100%) |
| Mine operating cashflow before taxes (5)(7) 5,112 (290) 1,863% Depreciation and depletion (1,052) (1,188) (11%) Mine operating income (loss) 4,060 (1,478) 375% General and administration (2,824) (2,329) 21% SBC compensation (98) (168) (42%) Exploration (501) (290) 73% Care & maintenance (329) - 100% | |
| Foreign exchange loss (182) (327) | (44%) |
| Other operating income (expense) (16,297) 826 (2,073%) Interest and finance (costs) income, net (647) (298) 117% Loss on derivativess (6,793) (2,040) 233% Other finance income, net 41 12 242% Loss before income taxes (23,570) (6,092) 287% Current income tax recovery (expense) (2,040) 267 (864%) Net loss (25,610) (5,825) 340% Loss per share - basic and diluted (0.04) (0.01) 300% Weighted average shares outstanding (thousands) 639,734 509,834 25% EBITDA (1) (5) (21,848) (4,583) 377% Adjusted EBITDA (2) (5) (592) (2,221) (73%) Cost per tonne ($) (4) 240.24 170.77 41% Cash cost AgEq per ounce (3) (5) 34.67 32.10 8% AISC cost per AgEq ounce (4) (5) 43.12 40.64 6% Realized silver price per ounce (6) 55.54 39.03 42% Realized gold price per ounce (6) 4,161.94 3,441.75 21% Realized lead price per pound (6) 0.90 0.89 1% Realized zinc price per pound (6) 1.44 1.28 12% Sustaining capital expenditures 1,049 1,478 (29%) Working capital (5) 14,204 5,392 163% |
1. See Reconciliation of Earnings before interest, taxes, depreciation, and amortization in the "Non-IFRS Financial Measures" section of this news release.
2. See reconciliation of Adjusted EBITDA in the "Non-IFRS Financial Measures" section of this news release.
3. Cash cost per silver equivalent ounce includes mining, processing, and direct overhead. See Reconciliation to IFRS in the "Non-IFRS Financial Measures" section of this news release.
4. AISC per AgEq oz includes mining, processing, direct overhead, corporate general and administration expenses, on-site exploration, reclamation, and sustaining capital. See Reconciliation to IFRS in the "Non-IFRS Financial Measures" section of this news release.
5. Mine Operating Cashflow Before Taxes, Cash cost per silver equivalent, AISC per AgEq ounce, EBITDA, Adjusted EBITDA 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".
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 "Non-IFRS Financial Measures" section of this news release.
8. Silver equivalents (AgEq) are calculated using 75.73:1 (Ag/Au), 0.02:1 (Ag/Pb) and 0.03:1 (Ag/Zn) ratio for Q4 2025; an 87.70:1 (Ag/Au), 0.02:1 (Ag/Pb) and 0.03:1 (Ag/Zn) ratio for Q3 2025, respectively.
The following tables summarize the Company’s consolidated operating and financial results for the year ended December 31, 2025 as compared to the year ended December 31, 2024. All amounts are expressed in thousands of United States (“US”) dollars except per share amounts, realized prices, tonnes and ounces or unless otherwise stated.
Year ended December 31 December 31 Consolidated % Change 2025 2024 Operating
| Tonnes mined | 397,747 | 611,128 | (35%) |
| Tonnes milled | 397,795 | 606,656 | (34%) |
| Average tonnes milled per day | 1,184 | 1,806 | (34%) |
| Average silver grade (g/t) | 114.04 | 97.36 | 17% |
| Average gold grade (g/t) | 1.00 | 1.01 | (1%) |
| Average silver recovery (%) | 84.94 | 85.62 | (1%) |
| Average gold recovery (%) | 80.82 | 84.23 | (4%) |
| Silver ounces produced | 1,243,601 | 1,625,912 | (24%) |
| Gold ounces produced | 10,395 | 16,554 | (37%) |
| Lead produced (lbs) | 2,787,175 | 3,231,921 | (14%) |
| Zinc produced (lbs) | 3,380,069 | 3,901,785 | (13%) |
| Silver ounces sold | 1,265,787 | 1,613,121 | (22%) |
| Gold ounces sold | 10,859 | 16,250 | (33%) |
| Lead sold (lbs) | 2,834,583 | 3,119,518 | (9%) |
| Zinc sold (lbs) | 3,384,149 | 3,948,597 | (14%) |
The financial results were as follows for the year ended December 31, 2025, and December 31, 2024.
| Year ended December 31 December 31 Consolidated % Change 2025 2024 | |
|---|---|
| $ $ Revenue 78,785 75,664 4% Cost of sales (67,977) (73,193) (7%) Production costs (60,027) (61,589) (3%) Transportation and selling costs (1,992) (2,446) (19%) | |
| Inventory changes (851) 862 | (199%) |
| Mine operating cashflow before taxes (5)(7) 15,915 12,491 27% Depreciation and depletion (5,107) (10,020) (49%) Mine operating loss 10,808 2,471 337% General and administration (9,148) (8,445) 8% SBC compensation (644) (1,133) (43%) Exploration (1,527) (1,116) 37% Care & maintenance (329) - 100% | |
| Foreign exchange gain (loss) (2,585) 3,864 | (167%) |
| Other operating expense (15,292) (635) 2,312% Interest and finance costs, net (3,116) (6,335) (51%) Loss on derivatives (12,427) (4,663) 167% Other finance income, net 134 495 (73%) Loss before income taxes (34,126) (15,496) 120% Current income tax expense (3,263) (1,911) 71% Net loss (37,389) (17,407) 115% Loss per share - basic and diluted (0.07) (0.04) 75% Weighted average shares outstanding (thousands) 524,168 404,037 30% EBITDA (1) (5) (25,797) 1,025 (2,617%) Adjusted EBITDA (2) (5) 3,189 3,633 (12%) Cost per tonne ($) (4) 150.90 101.52 49% Cash cost AgEq per ounce (3) (5) 25.67 18.64 38% AISC cost per AgEq ounce (4) (5) 31.76 23.44 35% Realized silver price per ounce (6) 39.43 28.21 40% Realized gold price per ounce (6) 3,356.31 2,342.36 43% Realized lead price per pound (6) 0.89 0.94 (5%) Realized zinc price per pound (6) 1.30 1.27 2% Sustaining capital expenditures 4,203 5,645 (26%) Working capital (5) 14,204 (15,387) 192% |
1. See Reconciliation of Earnings before interest, taxes, depreciation, and amortization in the "Non-IFRS Financial Measures" section of this news release.
2. See reconciliation of Adjusted EBITDA in the "Non-IFRS Financial Measures" section of this news release.
3. Cash cost per silver equivalent ounce includes mining, processing, and direct overhead. See Reconciliation to IFRS in the "Non-IFRS Financial Measures" section of this news release.
4. AISC per AgEq oz includes mining, processing, direct overhead, corporate general and administration expenses, on-site exploration, reclamation, and sustaining capital. See Reconciliation to IFRS in the "Non-IFRS Financial Measures" section of this news release.
5. Mine Operating Cashflow Before Taxes, Cash cost per silver equivalent, AISC per AgEq ounce, EBITDA, Adjusted EBITDA 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".
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 "Non-IFRS Financial Measures" section of this news release.
8. Silver equivalents (AgEq) are calculated using 85.93:1 (Ag/Au), 0.02:1 (Ag/Pb) and 0.03:1 (Ag/Zn) ratio for YTD 2025 and an 84.48:1 (Ag/Au), 0.03:1 (Ag/Pb) and 0.05:1 (Ag/Zn) ratio for YTD 2024, respectively.
| The table below presents a summary of the Company’s consolidated cash flow for the three-month and | |
| twelve-month periods ended December 31, 2025, and 2024. | |
| Three Months Ended (US$ thousands) | Year Ended (US$ thousands) |
| December 31, December 31, % Change 2025 2024 Cash Flow $ $ Cash flow from (used in) operations (2,514) (698) 260% Cash flow used in investing activities (1,764) (1,359) 30% Cash flow from financing activities 34,145 3 ,427 896% Effect of exchange rate changes on cash 55 (64) 186% | December 31, December 31, % Change 2025 2024 $ $ 552 (3,432) 116% (6,059) (5,518) 10% 43,976 9,906 344% 158 24 558% |
| Change in cash 29,922 1,306 2,191% Cash, beginning of period 11,642 1,631 614% Cash, end of period 41,564 2,937 1,315% | 38,627 9 80 3,842% 2,937 1,957 50% 41,564 2,937 1,315% |
NON-IFRS FINANCIAL MEASURES
The Company has disclosed certain non-IFRS financial measures and ratios in this MD&A, as discussed below. These non-IFRS financial measures and non-IFRS ratios are widely reported in the mining industry as benchmarks for performance and are used by Management to monitor and evaluate the Company's operating performance and ability to generate cash. The Company believes that, in addition to financial measures and ratios prepared in accordance with IFRS, certain investors use these non-IFRS financial measures and ratios to evaluate the Company’s performance. However, the measures do not have a standardized meaning under IFRS and may not be comparable to similar financial measures disclosed by other companies. Accordingly, non-IFRS financial measures and non-IFRS ratios should not be considered in isolation or as a substitute for measures and ratios of the Company’s performance prepared in accordance with IFRS.
| Non-IFRS financial measures are defined in National Instrument 52-112 – Non-GAAP and Other Financial | |
| Measures Disclosure (“NI 52-112”) as a financial measure disclosed that (a) depicts the historical or | |
| expected future financial performance, financial positoi n or cash flow of an entity, (b) with respect to its | |
| compositoi n, excludes an amount that is included in, or includes an amount that is excluded from, the | |
| compositoi n of the most directly comparable financial measure disclosed in the primary financial | |
| statements of the entity, (c) is not disclosed in the financial statements of the enttiy, and (d) is not a ratio, | |
| fraction, percentage or similar representatoi n. | |
| A non-IFRS ratoi is defined by NI 52-112 as a financial measure disclosed that (a) is in the form of a ratio, | |
| fraction, percentage, or similar representatoi n, (b) has a non-IFRS financial measure as one or more of its | |
| components, and (c) is not disclosed in the financial statements. | |
| WORKING CAPITAL | |
| Working capital is a non-IFRS measure that is a common measure of liquidity but does not have any | |
| standardized meaning. The most directly comparable measure prepared in accordance with IFRS is current | |
| assets net of current liabiliteis. Working capital is calculated by deducting current liabiliteis from current | |
| assets. Working capital should not be considered in isolation or as a substitute for measures prepared in | |
| accordance with IFRS. The measure is intended to assist readers in evaluating the Company’s liquidity. | |
| December 31, September 30, As at (US$ thousands) 2025 2025 $ $ Current assets 65,820 35,147 Current liabilities 51,616 29,755 Working capital 14,204 5,392 |
MINE OPERATING CASH FLOW BEFORE TAXES
Mine operating cash flow before taxes is a non-IFRS measure that does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. Mine operating cash flow is calculated as revenue minus production costs, transportation and selling costs and inventory changes. Mine operating cash flow is used by management to assess the performance of the mine operations, excluding corporate and exploration activities, and is provided to investors as a measure of the Company’s operating performance.
| Three months ended March 31, June 30, September 30, December 31, (US$ thousands) 2025 2025 2025 2025 | Year ended | |
| December 31, 2025 | ||
| $ $ $ $ $ Revenues 21,330 18,458 16,277 22,720 78,785 Production cost (13,984) (14,085) (14,525) (17,433) (60,027) Transportation and other support cost (606) (654) (558) (174) (1,992) Inventory changes (408) 1,042 (1,484) (1) (851) | ||
| Mine operating cash flows before taxes | 6,332 4,761 (290) 5,112 15,915 |
Three months ended Year ended March 31, June 30, September 30, December 31, December 31, (US$ thousands)
| 2024 | 2024 | 2024 | 2024 | 2024 | |
| $ | $ | $ | $ | $ | |
| Revenues | 17,765 | 20,551 | 18,309 | 19,038 | 75,664 |
| Production cost | (16,142) | (16,220) | (14,826) | (14,401) | (61,589) |
| Transportation and other support cost | (755) | (748) | (315) | (629) | (2,446) |
| Inventory changes | 492 | 305 | 132 | (67) | 862 |
| Mine operating cash flows before taxes | 1,360 | 3,888 | 3,300 | 3,941 | 12,491 |
EBITDA
| EBITDA is a non-IFRS financial measure, which excludes the following from net earnings: | |
| • Income tax expense; | |
| • Finance costs; | |
| • Amortization and depletion. | |
| Adjusted EBITDA excludes the following additional items from EBITDA: | |
| • Share based compensation; | |
| • Impairments (reversals); | |
| • Loss (gain) on derivative; | |
| • Unrealized foreign exchange (gain) loss relating to ARO | |
| • Significant other finance items. | |
| Adjusted EBITDA per share is calculated by dividing Adjusted EBITDA by the basic weighted average | |
| number of shares outstanding for the period. | |
| Management believes EBITDA is a valuable indicator of the Company’s ability to generate liquidity by | |
| producing operating cash flow to fund working capital needs, service debt obligations, and fund capital | |
| expenditures. Management uses EBITDA for this purpose. EBITDA is also frequently used by investors and | |
| analysts for valuation purposes whereby EBITDA is multiplied by a factor or “EBITDA multiple” based on | |
| an observed or inferred relationship between EBITDA and market values to determine the approximate | |
| total enterprise value of a Company. Management believes that Adjusted EBITDA provides useful | |
| information to investors and others in understanding and evaluating our operating results because it is | |
| consistent with the indicators management uses internally to measure the Company's performance and | |
| is an indicator of the performance of the Company's mining operations. | |
| EBITDA is intended to provide additional information to investors and analysts. It does not have any | |
| standardized definition under IFRS and should not be considered in isolation or as a substitute for | |
| measures of operating performance prepared in accordance with IFRS. EBITDA excludes the impact of | |
| cash costs of financing activities and taxes, and the effects of changes in operating working capital | |
| balances and therefore is not necessarily indicative of operating profit or cash flow from operations as | |
| determined by IFRS. Other companies may calculate EBITDA and Adjusted EBITDA differently. |
| Three months ended March 31, June 30, September 30, December 31, (US$ thousands) 2025 2025 2025 2025 | Year ended | |
| December 31, 2025 | ||
| $ $ $ $ $ Net loss per financial statements (2,272) (3,682) (5,824) (25,610) (37,389) Depreciation and depletion – cost of sales 1,486 1,381 1,188 1,052 5,107 Depreciation and depletion – general and administration 37 23 22 23 106 Interest and finance costs (income), net 1,139 1,032 298 647 3,116 Current income tax expense (recovery) 674 816 (267) 2,040 3,263 | $ $ $ $ $ | |
| EBITDA | 1,064 (430) (4,583) (21,848) (25,797) | |
| Share based compensation 98 281 168 98 644 Loss on derivatives 2,847 748 2,040 6,793 12,427 Unrealized foreign exchange (gain) loss relating to ARO 96 1,390 512 453 2,451 Other finance items, net (2) (89) (657) 609 (139) Provision for legal contingencies - - - 13,151 13,151 VAT write-off - - 300 2,425 2,725 Fixed assets impairment - - - 1,232 1,232 Gain on ARO estimate - - - (3,505) (3,505) | ||
| Adjusted EBITDA | 4,103 1,900 (2,220) (592) 3,189 | |
| Three months ended March 31, June 30, September 30, December 31, (US$ thousands) 2024 2024 2024 2024 | Year ended | |
| December 31, 2024 | ||
| $ $ $ $ $ Net loss per financial statements (7,382) (2,750) (4,864) (2,413) (17,407) Depreciation and depletion – cost of sales 3,016 2,940 2,784 1,279 10,020 Depreciation and depletion – general and administration 43 42 4 1 40 166 Interest and finance costs (income), net 1,544 1,776 1,575 1,439 6,335 Current income tax - - - 1,911 1,911 EBITDA (2,779) 2,008 ( 464) 2,256 1,025 Share based compensation 541 259 2 14 118 1,133 Loss on derivatives 1,350 1,489 1,663 160 4,663 Unrealized foreign exchange (gain) loss relating to ARO 2 64 (1,834) (1,447) (785) (3,801) Other finance items, net (453) (16) (23) 60 (432) Endeavour Silver contingent payment - - 1,000 - 1,000 Other (income) expenses (14) 11 (53) (60) (116) VAT write-off 161 - - - 161 | $ $ $ $ $ | |
| Adjusted EBITDA | (930) 1,917 890 1,749 3,633 | |
| Cash Cost per AgEq Ounce, All-In Sustaining Cost per AgEq Ounce and Production Cost per Tonne |
Cash costs per silver equivalent oz and production costs per tonne are measures developed by precious metals companies in an effort to provide a comparable standard; however, there can be no assurance that the Company’s reporting of these non-IFRS measures and ratios are similar to those reported by other mining companies. Cash costs per silver equivalent ounce and total production cost per tonne are non- IFRS performance measures used by the Company to manage and evaluate operating performance at its operating mining unit, in conjunction with the related IFRS amounts. They are widely reported in the silver mining industry as a benchmark for performance, but do not have a standardized meaning and are disclosed in addition to IFRS measures. Production costs include mining, milling, and direct overhead at the operation sites. Cash costs include all direct costs plus royalties and special mining duty. Total production costs include all cash costs plus amortization and depletion, changes in amortization and depletion in finished goods inventory and site share-based compensation. Cash costs per silver equivalent ounce is calculated by dividing cash costs and total production costs by the payable silver ounces produced. Production costs per tonne are calculated by dividing production costs by the number of processed tonnes. The following tables provide a detailed reconciliation of these measures to the Company’s direct production costs, as reported in its consolidated financial statements.
AISC is a non-IFRS performance measure and was calculated based on guidance provided by the World Gold Council (“WGC”). WGC is not a regulatory industry organization and does not have the authority to develop accounting standards for disclosure requirements. Other mining companies may calculate AISC differently as a result of differences in underlying accounting principles and policies applied, as well as differences in definitions of sustaining capital expenditures. AISC is a more comprehensive measure than cash cost per ounce and is useful for investors and management to assess the Company’s operating performance by providing greater visibility, comparability and representation of the total costs associated with producing silver from its current operations, in conjunction with related IFRS amounts. AISC helps investors to assess costs against peers in the industry and helps management assess the performance of its mine.
AISC includes total production costs (IFRS measure) incurred at the Company’s mining operation, which forms the basis of the Company’s total cash costs. Additionally, the Company includes sustaining capital expenditures, corporate general and administrative expense, operating lease payments and reclamation cost accretion. The Company believes this measure represents the total sustainable costs of producing silver and gold concentrate from current operations and provides additional information of the Company’s operational performance and ability to generate cash flows. As the measure seeks to reflect the full cost of silver and gold concentrate production from current operations, new projects capital at current operation is not included. Certain other cash expenditures, including share-based payments, tax payments, dividends and financing costs are also not included.
The following tables provide detailed reconciliations of these measures to cost of sales, as reported in notes to the Company’s consolidated financial statements.
December Three months ended (US$ thousands) December 31, 2025 31, 2024
| El Cubo | VMC San Ignacio | Topia Consolidated | Consolidated | |||
|---|---|---|---|---|---|---|
| $ | $ | $ | $ | $ | $ | |
| Cost of sales | 5,180 | 4,434 | 2,433 | 6,613 | 18,660 | 16,367 |
| Transportation and selling cost | (139) | (96) | (54) | 115 | (174) | (620) |
| Inventory changes | 197 | (593) | (11) | 406 | (1) | (67) |
| Depreciation | (195) | (418) | (114) | (325) | (1,052) | (1,279) |
| Production cost | A 5,043 | 3,327 | 2,254 | 6,809 | 17,433 | 14,401 |
Add (subtract):
| Government royalties and mining taxes | 80 | 35 | 31 | (375) | (229) | 91 | |
| Total cash cost | B | 5,123 | 3,362 | 2,285 | 6,434 | 17,204 | 14,492 |
| General and administrative - corporate | - | - | - | - | 2,824 | 1,980 | |
| Operating lease payments | 2 | 172 | 76 | 50 | 300 | 523 | |
| Sustaining capital expenditures | 143 | 713 | 77 | 116 | 1,049 | 1,251 | |
| Total All-in sustaining cash cost | C | 5,268 | 4,247 | 2,438 | 6,600 | 21,377 | 18,246 |
| Tonnes milled | D | 34,620 | 14,344 | 11,470 | 12,133 | 72,567 | 135,585 |
| Silver equivalent ounces produced | E | 147,008 | 67,284 | 51,474 | 230,475 | 496,241 | 730,485 |
| Production cost per tonne | A/D | 145.66 | 231.98 | 196.43 | 561.30 | 240.24 | 106.21 |
| Cash cost per AgEq ounce produced | B/E | 34.85 | 49.97 | 44.36 | 27.92 | 34.67 | 19.84 |
All-in sustaining cash cost per AgEq ounce
| produced | C/E 35.83 | 63.13 | 47.33 | 28.64 | 43.12 | 24.98 |
| Mining cost per tonne | 70.57 | 103.09 | 142.15 | 444.79 | 150.88 | 64.44 |
| Milling cost per tonne | 47.61 | 42.35 | 41.33 | 77.04 | 50.50 | 25.08 |
| Indirect cost per tonne | 27.48 | 86.54 | 12.94 | 39.46 | 38.86 | 16.69 |
| Production cost per tonne | 145.66 | 231.98 | 196.43 | 561.30 | 240.24 | 106.21 |
| Mining | 2,443 | 1,479 | 1,630 | 5,397 | 10,949 | 8,737 |
| Milling | 1,648 | 607 | 474 | 935 | 3,664 | 3,400 |
| Indirect | 952 | 1,241 | 150 | 477 | 2,820 | 2,264 |
| Production Cost | 5,043 | 3,327 | 2,254 | 6,809 | 17,433 | 14,401 |
1. Silver equivalents (AgEq) are calculated using 75.73:1 (Ag/Au), 0.02:1 (Ag/Pb) and 0.03:1 (Ag/Zn) ratio for Q4 2025 and an 87.70:1 (Ag/Au), 0.02:1 (Ag/Pb) and 0.03:1 (Ag/Zn) ratio for Q3 2025, respectively.
2. Cash cost per silver equivalent ounce includes mining, processing, and direct overhead.
3. AISC per oz includes mining, processing, direct overhead, corporate general and administration expenses, onsite exploration, reclamation, and sustaining capital.
4. Production costs include mining, milling, and direct overhead at the operation sites.
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.