Guanajuato Silver Records $11.3M Working Capital Increase in Q3 2025 Positive cash flows from operations of over $3M for the first three quarters 2025.
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Guanajuato Silver Records $11.3M Working Capital Increase in Q3 2025
Positive cash flows from operations of over $3M for the first three quarters 2025.
November 28, 2025 – Vancouver, British Columbia – Guanajuato Silver Company Ltd. (the “Company” or
“GSilver”) ( TSXV:GSVR) (OTCQX:GSVRF) is pleased to announce financial information and production
results for the nine months ended September 30, 2025. The Company’s condensed consolidated interim
financial statements for the nine months ended September 30, 2025 and Management’s Discussion and
Analysis (“MD&A”) thereon can be viewed under the Company’s profile at www.sedarplus.ca. All dollar
amounts are in US dollars (US$) 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 Q3 2025 Highlights:
➢ Working capital improved over the quarter by $11.3M or 168% compared to Q2; working capital
for Q3 2025 was $4.6M compared to negative $6.7M in Q2 2025.*
➢ The Company reported positive operating cash flows of $3,065,567 for the first nine months of
2025; in Q3 the Company generated positive cash flow from mining operations of $712,271 with
realized metal prices of $39.03 for Silver and $3,441 for gold.
➢ Production for the quarter of 457,525 silver -equivalent ounces (AgEq) comprising 245,369
ounces of silver, 2,025 ounces of gold, 597,269 pounds of lead and 741,595 pounds of zinc. Silver
equivalents are calculated using a n 87.70:1 (Ag/Au), 0.02:1 (Ag/Pb) and 0.03:1 (Ag/Zn) ratio for
Q3 2025.
➢ Increased capital expenditures over the quarter are expected to generate improved efficiencies
into 2026. Capital expenditures were 97% higher in Q3 over Q2. The investments included
additions to the mining fleet, relining of Mill 3 at El Cubo, continued work to install a Falcon gravity
concentrator at the Topia plant designed to further increase gold recoveries in concentrates, pre-
development work at Pinguico, and dewatering programs at both Valenciana and El Cubo.
➢ As of the end of the quarter, the Company held cash and cash equivalents of US$11.6 million .
Subsequent to the end of the quarter, o n October 9, 2025, the Company announced the closing
of a bought deal public offering for gross proceeds of C$43.5M (Approximately US$31.1M) (See
GSilver news release).
*Working capital is a non -IFRS financial measure. F or 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.
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James Anderson, CEO & Chairman, said, “Since purchasing our first mine in 2021, this was the first quarter
where we have had sufficient capital to fully fund development, exploration and vital infrastructure
improvements. The funding has allowed us to make the necessary adjustments and upgrades that will
have Guanajuato Silver on-track and poised to generate prolonged success at all our producing Mexican
mining assets.”
Rick Trotman, Senior Vice President, added, “ Capital development is the lifeblood of any underground
operation, and ensures the work completed today will positively impact production and cost outcomes in
the short, medium, and long term. Guanajuato Silver’s history of undercapitalization impacted production
during the third quarter of 2025 ; however, we are now steadily increasing our operation al investments
and at the same time ushering in a new era of higher standards, technical excellence and a revitalized
sense of fiscal and operational discipline.”
Q3 2025 OPERATING AND FINANCIAL HIGHLIGHTS
Commercial production at the El Cubo Mines Complex (“CMC”) commenced on October 1, 2021. The
Valenciana Mines Complex (“VMC”), the San Ignacio mine (“San Ignacio”) and the Cata mill facility, and
the Topia Mines Complex (“Topia”) were acquired on August 4, 2022. Topia had continuous production
throughout the acquisition. The San Ignacio mine recommenced production in August 2022 and
production at the Valenciana mine also began in August 2022. Recommissioning of the Cata plant began
in December 2022 with processing commencing in January 2023.
The following table summarizes the Company’s consolidated operating results for the three months ended
September 30, 2025 and June 30, 2025:
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1. Silver equivalents are calculated using 87.70:1 (Ag/Au), 0.02:1 (Ag/Pb) and 0.03:1 (Ag/Zn) ratio for Q3 2025; an
84.04:1 (Ag/Au), 0.03:1 (Ag/Pb) and 0.04:1 (Ag/Zn) ratio for Q3 2024, respectively.
2. Cash cost per silver equivalent ounce includes mining, processing, and direct overhead.
3. AISC per Ag/Eq 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.
4. Mine Operating Cashflow Before Taxes, Cash cost per silver equivalent, cost per tonne, AISC per Ag/Eq 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 the "Non-IFRS Financial Measures" section of this news release.
Consolidated September 30
2025
June 30,
2025 % Change
Operating
Tonnes mined 85,017 113,299 (25%)
Tonnes milled 85,060 112,107 (24%)
Average tonnes milled per day 1,013 1,335 (24%)
Average silver grade (g/t) 103.48 107.43 (4%)
Average gold grade (g/t) 0.91 1.02 (11%)
Average silver recovery (%) 86.71 83.15 4%
Average gold recovery (%) 81.10 79.00 3%
Silver ounces produced 245,369 321,990 (24%)
Gold ounces produced 2,025 2,913 (30%)
Lead produced (lbs) 597,269 683,163 (13%)
Zinc produced (lbs) 741,595 853,646 (13%)
Silver equivalent (“Ag/Eq”) ounces produced (1) 457,525 659,237 (31%)
Silver ounces sold 280,511 312,867 (10%)
Gold ounces sold 2,263 2,948 (23%)
Lead sold (lbs) 676,615 652,382 4%
Zinc sold (lbs) 967,247 686,621 41%
Ag/Eq ounces sold (1) 521,929 648,313 (19%)
Cost per tonne ($) (4) 170.77 125.64 36%
Cash cost per Ag/Eq ounce ($) (1)(2)(4) 32.10 21.67 48%
AISC per Ag/Eq ounce ($) (1)(3)(4) 40.64 26.38 54%
Diamond Drilling
Villalpando/El Cubo Drilling (mtrs) 1,403 669 110%
Valenciana Mine (mtrs) - - 0%
San Ignacio Mine (mtrs) 642 1,171 (45%)
Topia Mine (mtrs) 395 319 24%
Three months ended
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The financial results were as follows for the three months ended September 30, 2025 and June 30, 2025.
The Company notes that 44% of the net loss consists of non-cash items, including foreign exchange loss,
share-based compensation, and loss on derivatives stemming from the Company’s sole outstanding loan.
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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.
Consolidated September 30
2025
June 30,
2025 % Change
$ $
Revenue 16,277,135 18,458,010 (12%)
Cost of Sales (17,754,771) (15,077,872) 18%
Production costs (14,525,408) (14,085,257) 3%
Transportation and selling costs (558,055) (653,856) (15%)
Inventory changes (1,483,699) 1,041,786 242%
Mine operating cashflow before taxes (5)(7) (290,027) 4,760,683 (106%)
Depreciation and depletion (1,187,609) (1,380,545) (14%)
Mine operating income (loss) (1,477,636) 3,380,138 (144%)
General and Administration (2,328,990) (2,063,810) 13%
SBC Compensation (167,507) (280,708) (40%)
Exploration (290,188) (408,079) (29%)
Foreign exchange gain (loss) (327,009) (1,836,234) (82%)
Other operating income (expenses) 825,579 43,263 1,808%
Interest and finance (costs) income, net (297,973) (1,032,037) (71%)
Gain (loss) on derivatives (2,039,703) (747,585) 173%
Other finance (expense) income, net 12,354 79,004 (84%)
Loss before income taxes (6,091,073) (2,866,048) 113%
Current income tax (expense) 267,394 (816,175) 133%
Net loss (5,823,679) (3,682,223) 58%
Loss per share - basic and diluted (0.01) (0.01) 0%
Weighted Average Shares Outstanding 509,834,173 473,222,722 8%
EBITDA (1) (5) (4,583,109) (430,380) 965%
Adjusted EBITDA (2) (5) (2,221,364) 1,898,951 (217%)
Cash cost Ag/Eq per ounce (3) (5) 32.10 21.67 48%
AISC cost per Ag/Eq ounce (4) (5) 40.64 26.38 54%
Realized silver price per ounce (6) 39.03 33.58 16%
Realized gold price per ounce (6) 3,441.75 3,278.96 5%
Realized lead price per pound (6) 0.89 0.88 1%
Realized zinc price per pound (6) 1.28 1.19 7%
Sustaining capital expenditures 1,477,618 750,827 97%
Working capital (5) 5,391,714 (6,745,721) 180%
Three months ended
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3. Cash cost per silver equivalent ounce include mining, processing, and direct overhead. See Reconciliation to
IFRS in the "Non-IFRS Financial Measures" section of this news release.
4. AISC per Ag/Eq oz include 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 Ag/Eq 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.
The table below presents a summary of the Company’s consolidated cash flow for the three -month and
nine-month periods ended September 30, 2025 and 2024.
NON-IFRS FINANCIAL MEASURES
The Company has disclosed certain non -IFRS financial measures and ratios in this news release , 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 -122”) as a financial measure disclosed that (a) depicts the historical or
expected future financial performance, financial position or cash flow of an entity, (b) with respect to its
composition, excludes an amount that is included in, or includes an amount that is excluded from, the
composition of the most directly comparable financial measure disclosed in the primary financial
Three Months Ended Nine Months Ended
September 30,
2025
September 30,
2024 % Change September 30,
2025
September 30,
2024 % Change
Cash Flow $ $ $ $
Cash flow from (used in) operations 712,271 1,685,408 (58%) 3,065,567 (2,732,310) 212%
Cash flow used in investing activities (2,392,954) (1,037,275) 131% (4,296,259) (4,158,767) 3%
Cash flow from (used in) financing activities 11,235,345 (1,258,251) 993% 9,831,243 6,477,685 52%
Effect of exchange rate changes on cash 189,234 43,020 340% 103,074 87,979 (17%)
Change in cash 9,743,897 (567,098) 1,818% 8,703,626 (325,413) 2,775%
Cash, beginning of period 1,896,901 2,198,301 (14%) 2,937,172 1,956,616 50%
Cash, end of period 11,640,798 1,631,203 614% 11,640,798 1,631,203 614%
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statements of the entity, (c) is not disclosed in the financial statements of the entity, and (d) is not a ratio,
fraction, percentage or similar representation.
A non-IFRS ratio is defined by NI 52-112 as a financial measure disclosed that (a) is in the form of a ratio,
fraction, percentage, or similar representation, (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 liabilities. Working capital is c alculated by deducting current liabilities 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.
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 a s a
measure of the Company’s operating performance.
September 30, June 30,
2025 2025
$ $
Current assets 35,146,705 23,931,996
Current liabilities 29,754,991 30,677,717
Working capital 5,391,714 (6,745,721)
As at
September 30, June 30,
2025 2025
$ $
Revenues 16,277,135 18,458,010
Production cost (14,525,408) (14,085,257)
Transportation and other support cost (558,055) (653,856)
Inventory changes (1,483,699) 1,041,786
Mine operating cash flows before taxes (290,027) 4,760,683
Three months ended
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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;
• Non-recurring impairments (reversals);
• Loss (gain) on derivative;
• Unrealized foreign exchange (gain)/loss relating to ARO
• Significant other non-routine 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 accordanc e 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.