Guanajuato Silver Co. Ltd. [GSVR-TSXV] reported record revenue and positive mine operating income in the second quarter ended June 30, 2024. GSilver is a primary silver and gold producer with over 90% of revenue generated from the sale of precious metals.
Revenue for the quarter of US$20.5 million, marked a 16% increase over the previous quarter, and a 22% increase over the second quarter of 2023. Consolidated revenue for the quarter was generated by a realized average price of US$28.78 per silver ounce, US$2,334 per gold ounce and US$0.98 per pound of lead, plus US$1.29 per pound of zinc.
GSilver reported its first ever positive income (US$947,433) from mining operations.
Production for the quarter of 823,697 silver-equivalent ounces (AgEq) derived from 398,685 ounces of silver, 4,255 ounces of gold, 806,295 pounds of lead and 1,067,538 pounds of zinc.
The company said the net loss for the quarter of US$2.7 million was a marked US$4.6 million improvement over the previous quarter and continues the company’s path towards cash-flow profitability.
Total tonnes milled at the company’s production facilities was 161,457, which was a decrease of 2.0% from the previous quarter. All of GSilver’s mining operations continue to be in the process of ramping up to full production.
However, on Thursday, the shares eased 2.17% or $0.005 to 22.5 cents. The shares currently trade in a 52-week range of 36 cents and 15 cents.
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 (VMC) and San Ignacio mine. All three are located in 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. All of the company’s lead and zinc production comes exclusively from the Topia mine. The portfolio includes four operating mines and three processing facilities.
San Ignacio is a high-grade epithermal vein underground mine. Mineralized material from San Ignacio is transferred to the Valenciana Mines Complex for processing at the Cata mill.
GSilver recently announced a news mineral resource estimate for San Ignacio.
The company said the measured and indicated silver equivalent resource (AgEq) has increased by 130% from a previous estimate, while the resources in the inferred category are up by 283%.
GSilver says the measured and indicated resource now stands at 7.6 million ounces at 300 g/t AgEq within 790,000 tonnes, including 3.13 million ounces of silver and 53,000 ounces of gold. The inferred resource now stands at 22.16 million ounces, grading 318 g/t” AgEq within 2.16 million tonnes, including 8.9 million ounces of silver, and 158,000 ounces of gold.
