Guanajuato Silver Reports Third Consecutive Quarter of Positive Mine Operating Income Company Announces Improved Q4 and Year-End Financial Results
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Guanajuato Silver Reports Third Consecutive Quarter of Positive Mine
Operating Income
Company Announces Improved Q4 and Year-End Financial Results
April 28th, 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 three and twelve months ended December 31, 2024. The Company’s consolidated financial
statements for the fourth quarter and the year ended December 31, 2024 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 2024 Highlights:
Positive mine operating income of $ 2,662,682 represents a 416% improvement over the
previous quarter and is the third consecutive quarter of positive mine operating income.
EBITDA* up 587% over the previous quarter to $2,256,538. Adjusted EBITDA* up 96% over the
same period to $1,750,081; this is also the third consecutive quarter of positive Adjusted
EBITDA*.
Re v e n u e f o r t h e q u a r t e r o f $ 1 9 , 0 3 8 , 3 1 1 r e p r e s e n t s a 4 % i n c r e a s e o v e r Q 3 2 0 2 4; this also
represents a 15% increase in revenue over Q4, 2023. The average realized silver price for the
quarter was $31.44. The average realized gold price for the quarter was $ 2664.40. Over 90% of
the Company’s revenue is derived from the production and sale of silver and gold.
Production for the quarter was 730,485 silver equivalent ounces (“AgEq”). Production consisted
of 385,342 ounces of silver, 3,298 ounces of gold, 739,440 pounds of lead and 985,895 pounds of
zinc. See Footnote 1 to the table in “Operating and Financial Highlights” for the details of the
assumptions for the AgEq calculation.
Operating costs remained consistent with the previous quarter; cash cost of $19.84 per AgEq
ounce was 6% higher than the previous quarter; All-In Sustaining Cost (AISC)* of $24.98 per AgEq
ounce was 5% higher than Q3 2024; cost per tonne of $106.21 was 4% higher than Q3 2024.
James Anderson, CEO & Chairman, said, “Guanajuato Silver’s path towards establishing full mine
profitability was confirmed during the 4th quarter; results in Q4 continued their positive trajectory as capex
investments made over the previous 12-months continued to positively impact the business. Further
evidence is shown in Mine Operating Cashflow moving from a negative $156K in 2023 to a positive $12.6M
in 2024; importantly, Working Capital* also improved in 2024 by US$ 3.1M. Buoyed by higher precious
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metals prices, Guanajuato Silver completely retired two debt facilities in 2024, and with only one gold
denominated loan still outstanding, our ultimate g o a l i s t o b e a g r o w i n g , d e b t-free precious metals
producer.”
*EBITDA, (Earnings Before Interest, Taxes, Depreciation and Amortization) Adjusted EBITDA , AISC 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” in this News Release.
Q4 2024 OPERATING AND FINANCIAL HIGHLIGHTS
The following table summarizes the Company’s consolidated operating and financial results for the three
months ended December 31, 2024 as compared to the three months ended September 30, 2024.
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1. Silver equivalents are calculated using an 84.86:1 (Ag/Au), 0.03:1 (Ag/Pb) and 0.04:1 (Ag/Zn) ratio for
Q4 2024; and 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. See
Reconciliation to IFRS in the Non-IFRS Financial Measures section of this news release.
3. AlSC 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.
4. See Reconciliation of earnings before interest, taxes, depreciation, and amortization in the Non -IFRS
Financial Measures section of this news release.
Three months ended
CONSOLIDATED December 31,
2024
September 30,
2024
%
Change
Operating
Tonnes mined 136,962 138,575 (1%)
Tonnes milled 135,584 144,537 (6%)
Silver ounces produced 385,342 413,607 (7%)
Gold ounces produced 3,298 3,617 (9%)
Lead produced (lbs) 739,440 806,945 (8%)
Zinc produced (lbs) 985,895 926,056 6%
Silver equivalent (“AgEq”) ounces produced (1) 730,485 779,797 (6%)
Silver ounces sold 405,786 390,361 4%
Gold ounces sold 3,122 3,625 (14%)
Lead sold (lbs) 788,759 701,512 12%
Zinc sold (lbs) 1,139,781 799,318 43%
AgEq ounces sold(1) 743,153 748,747 (1%)
Cost per tonne ($)(5) 106.21 102.58 4%
Cash cost per AgEq ounce ($) (1)(2)(5) 19.84 18.78 6%
AISC per AgEq ounce ($) (1)(3)(5) 24.98 23.88 5%
Financial $ $
Revenue 19,038,311 18,309,105 4%
Cost of Sales 16,375,629 17,793,529 (8%)
Mine operating income 2,662,682 515,576 416%
Mine operating cashflow before taxes(7) 3,941,776 3,300,039 19%
Net loss (2,413,440) (4,863,549) 50%
EBITDA(4)(5) 2,256,538 (462,880) 587%
Adjusted EBITDA(4)(5) 1,750,081 892,277 96%
Realized silver price per ounce(6) 31.44 29.43 7%
Realized gold price per ounce(6) 2,664.40 2,477.39 8%
Realized lead price per pound (6) 0.91 0.93 (2%)
Realized zinc price per pound(6) 1.38 1.25 11%
Working capital(5) (15,389,179) (20,473,059) (25%)
Shareholders
Loss per share – basic and diluted (0.01) (0.01) 0%
Weighted Average Shares Outstanding 455,223,199 418,241,356 9%
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5. Mine Operating Cashflow Before Taxes, Cash cost per silver equivalent, cost per tonne, AISC per AgEq
ounce, EBITDA, Adjusted EBITDA and working capital are non -IFRS financial measure s 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” in the
Non-IFRS Financial Measures section of this news release.
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.
Year-end 2024 OPERATING AND FINANCIAL HIGHLIGHTS
The following table summarizes the Company’s consolidated operating and financial results for the years
ended December 31, 2024 and 2023:
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1. Silver equivalents are calculated using 84.48:1 (Ag/Au), 0.03:1 (Ag/Pb) and 0.05:1 (Ag/Zn) ratio for
2024 and an 82.91:1 (Ag/Au), 0.04:1 (Ag/Pb) and 0.05:1 (Ag/Zn) ratio for 2023, respectively.
2. 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.
Year ended
CONSOLIDATED December 31,
2024
December 31,
2023
%
Change
Operating
Tonnes mined 611,128 600,352 2%
Tonnes milled 606,656 593,798 2%
Silver ounces produced 1,625,912 1,756,911 (7%)
Gold ounces produced 16,554 16,967 (2%)
Lead produced (lbs) 3,231,921 3,555,466 (9%)
Zinc produced (lbs) 3,901,785 3,868,262 1%
Silver equivalent (“AgEq”) ounces produced(1) 3,321,273 3,516,684 (6%)
Silver ounces sold 1,613,121 1,761,832 (8%)
Gold ounces sold 16,250 17,061 (5%)
Lead sold (lbs) 3,119,518 3,580,029 (13%)
Zinc sold (lbs) 3,948,597 3,831,509 3%
AgEq ounces sold(1) 3,280,436 3,524,389 (7%)
Cost per tonne ($)(5) 101.52 106.27 (4%)
Cash cost per AgEq ounce ($) (1)(2)(5) 18.64 18.22 2%
AISC per AgEq ounce ($) (1)(3)(5) 23.44 22.91 2%
Financial $ $
Revenue 75,663,538 66,167,081 14%
Cost of Sales 73,193,450 77,966,369 (6%)
Mine operating income (loss) 2,470,088 (11,799,288) 121%
Mine operating cashflow before taxes(7) 12,490,262 (156,654) 8,073%
Net loss (17,408,613) (31,943,447) 46%
EBITDA(4)(5) 1,022,698 (14,232,397) 107%
Adjusted EBITDA(4)(5) 3,630,276 (10,883,541) 133%
Realized silver price per ounce(6) 28.21 23.41 20%
Realized gold price per ounce(6) 2,342.36 1,947.59 20%
Realized lead price per pound(6) 0.94 0.97 (3%)
Realized zinc price per pound(6) 1.27 1.22 3%
Working capital(5) (15,389,179) (18,441,013) 17%
Shareholders
Loss per share – basic and diluted (0.04) (0.10) (60%)
Weighted Average Shares Outstanding 404,036,955 335,853,982 20%
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3. AISC per AgEq 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.
4. See Reconciliation of earnings before interest, taxes, depreciation, and amortization in the Non-
IFRS Financial Measures section of this news release.
5. Mine Operating Cashflow Before Taxes, Cash cost per silver equivalent, cost per tonne, 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 the Non-IFRS Financial
Measures section of this news release.
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.
DERIVATIVES NOTE
27% of the net loss for the year was generated by the derivative stemming from the Gold Credit Facility
with Ocean Partners UK Ltd. ("Ocean Partners"); this is a non-cash loss that has no impact on the
operations of the Company.
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Silver equivalents are calculated using 84.48:1 (Ag/Au), 0.03:1 (Ag/Pb) and 0.05:1 (Ag/Zn) ratio for
2024, and 82.91:1 (Ag/Au), 0.04:1 (Ag/Pb) and 0.05:1 (Ag/Zn) ratio for 2023, and 83.22:1 (Ag/Au),
0.05:1 (Ag/Pb) and 0.07:1 (Ag/Zn) ratio for YTD 2022, respectively. Silver equivalents for 2021 are
calculated using 80:1 (Ag/Au) for Q4 2021.
NEW GOLD CREDIT FACILITY
The Company is also pleased to announce that amended terms of the Gold Credit Facility with Ocean
P a r t n e r s U K L t d . ( "Ocean Partners ") have been agreed (subject to final documentation) to provide
Guanajuato Silver with greater financial flexibility over the duration of the new Gold Loan Credit Facility
(the “New Facility”). Under the terms of the New Facility, two-thirds of the outstanding balance will be
amortized over 36 months starting April 2025, and repayable in equal fixed installments of 131.7 ounces
of gold bullion, representing approximately 10% of Guanajuato Silver’s monthly modelled gold production.
The remaining one-third of the outstanding balance, 2,366 gold ounces, will be paid on conclusion of the
36-month term. The New Facility will reduce payments by over 206 gold ounces per month, or
approximately $700,000 monthly based on current gold prices. The Company’s silver production remains
completely unhedged.
James Anderson, Chairman & CEO, said, “Our association with Ocean Partners has been among the most
successful partnerships we have formed to date in Mexico. The willingness of Ocean Partners to help
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create solutions that improve our business has been an important component of our success. In addition
to providing for improved financial flexibility, the New Facility will allow for increased capital deployment
toward exploration and development opportunities. We look forward to continuing our relationship with
Ocean Partners as we build Mexico’s next mid-tier precious metals producer.”
In connection with the terms of the New Facility, and subject to TSX Venture Exchange approval, 4,550,000
warrants with an exercise price of C$0.24 will be issued to Ocean Partners; the warrants have a 36-month
term.
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 a n d r a ti o s t o e v a l u a t e t h e C o m p a n y ’ s p e r f o r m a n c e . H o w e v e r , t h e m e a s u r e s d o n o t h a v e 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 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
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 calculated 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.