Guanajuato Silver – Operational And Financial Update From Their 4 Producing Silver Mines In Mexico
James Anderson, CEO of Guanajuato Silver (TSX.V:GSVR – OTCQX:GSVRF), joins us to provide a comprehensive operational and financial update from their 4 producing silver-gold mines and 3 processing facilities in central Mexico.
The Company produces silver and gold concentrates from the El Cubo Mine Complex, 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. In addition, the Company produces silver, gold, lead, and zinc concentrates from the Topia mine in northwestern Durango.
James highlighted the consistent quarter over quarter growth in the Company since beginning operations in 2021, with the exception of the tough 3rd quarter of 2023, and their strategy to get production ramped back up since then in Q4 of last year and Q1 of this year, in addition to bringing down costs in a meaningful way. 2023 saw record production of 3.5 million silver-equivalent ounces (“AgEq”) representing a 64% increase over 2022; where total AgEq ounces are derived from 1,756,911 ounces of silver, 16,987 ounces of gold, 3,555,466 pounds of lead and 3,868,262 pounds of zinc. There were also record revenues for 2023 of $66.1M representing a 79% increase over 2022.
We discussed the investment back into the 4 operating mines, which took cash costs to $18.22 per AgEq ounce, and all-in sustaining costs (AISC) to $22.91 per AgEq ounce. These costs reflected higher capital expenditures during the year as the Company made significant investments designed to improve efficiencies across all operations. James also outlined the further mill enhancements that they’d like to add at 2 mines, and the focused company strategy the last couple quarters that has paid off at raising the grades at their El Cubo Mine. These improvements in efficiencies, paired with a higher silver price, help set the company up for even more growth in 2024.
If you have any follow up questions for James or want more information on any of the assets please email us at Fleck@kereport.com and Shad@kereport.com.
* In full disclosure, Shad has a position in Guanajuato Silver at the time of this recording.
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This is a producer of Au-Ag-lead-Zi and with an Ag AISC of 22,91, still it has not participated in this baby bull. At all.
What is going on?
I have it in my PF and it has been a real disappointment.
Are there other factors beside the usual (inflation, georisk, sentiment, sector interest etc) that keep this stock this low? Investments in the company shouldn’t be holding it back so much