Guanajuato Silver (GSVR) Q3 2024 earnings summary

Executive summary

• Achieved second consecutive quarter of positive mine operating income and adjusted EBITDA, signaling improved operational performance.

• Revenue for Q3 2024 was $18.3M, up 17% year-over-year but down 11% sequentially from Q2 2024.

• Net loss for the quarter was $4.8M, with nearly 40% attributed to non-cash items, including a $1.66M derivative loss.

• Over 3 million AgEq ounces produced at El Cubo since late 2021 restart, marking a significant production milestone.

Financial highlights

• Positive mine operating income of $515,576 for Q3 2024, second consecutive positive quarter.

• Adjusted EBITDA was $892,277, also the second consecutive positive quarter.

• Cash and cash equivalents stood at $1.6M as of September 30, 2024, with negative working capital of $20.4M.

• Realized average prices: $29.43/oz silver, $2,477/oz gold, $0.93/lb lead, $1.25/lb zinc.

• Equity financing of C$8.72M closed after quarter-end to bolster liquidity.

Outlook and guidance

• Enhanced maintenance and repairs program initiated in Q3 is expected to continue into Q4, aiming to address fleet and mill maintenance needs.

• Management expects operational efficiencies to improve following recent capex investments.