Guanajuato Silver Provides Q3 2026 Production Results

Guanajuato Silver Company Ltd. (GSVR) reported consolidated third-quarter 2026 silver-equivalent production of 683,675 oz for the three months ended September 30, 2026. This represents a 13.7% increase from the 601,249 oz produced in the second quarter of 2026 and a 49.4% rise compared to the 457,525 oz produced in the third quarter of 2025.

The company milled 131,774 tonnes of ore, an increase of 14.6% from the previous quarter. Metal output for the period included 392,138 oz of silver, 3,771 oz of gold, 716,561 lb of lead, and 908,759 lb of zinc. Recovery rates remained essentially flat to marginally lower, with silver recovery at 87% compared to 88% in the second quarter, and gold recovery at 85% compared to 86%.

Production performance varied by mine site. Bolanitos produced 255,146 AgEq oz, up 38.4% quarter-over-quarter. El Cubo contributed 154,320 AgEq oz, a 20.9% increase, while San Ignacio produced 50,852 AgEq oz, up 22.3%. Topia output was 200,697 AgEq oz, a slight decrease of 1.1%, and VMC produced 22,660 AgEq oz, down 49.2%. The decline at VMC was a deliberate and pre-announced action; extraction was paused in August 2026 to shift operations from mining to exploration, as referenced in the company’s August 26, 2026 release.

Management highlighted significant progress in underground capital development as a key focus. Since April 2026, over 3,500 meters of underground capital development have been completed at Bolanitos, exceeding the total for all of 2025. The El Cubo 2026 development program is described as nearly tripling the 2025 total, while San Ignacio’s 2026 development has already surpassed its full-year 2025 figures.

The company stated it remains committed to outpacing the current mine plan regarding capital development. Management noted that monthly advance rates are expected to eventually drop to a sustainable long-term level, indicating that the current elevated capital expenditure is not permanent, though no specific date or quantum for this reduction was provided. The release did not include AISC, cash cost per AgEq oz, realized prices, cash balance, debt, or hedging updates.

Guanajuato Silver Company Ltd. (GSVR) reported a 38.4% quarter-over-quarter increase in Bolanitos production, providing the first quantified evidence that the company is addressing its 2025 development deficit. This delivery aligns with guidance issued in August regarding improved Bolanitos output as faces open up prior to year-end, representing execution against a flagged plan rather than a positive surprise.

Headline silver-equivalent (AgEq) growth was partially driven by a definitional change in the Ag/Au equivalence ratio, which increased from 61.61:1 in Q2 to 68.04:1 in Q3. Applying the Q2 ratio to Q3’s metals would result in 652,840 AgEq oz, compared to the 601,249 AgEq oz reported in Q2, representing a like-for-like increase of 8.6% rather than the 13.7% headline figure. The difference of approximately 5.1 percentage points, or roughly 31,000 AgEq oz, reflects price-ratio arithmetic rather than production volume.

Silver ounces, considered the cleanest measure, rose 12.9% quarter-over-quarter to 392,138 oz from 347,481 oz. The 49.4% year-over-year headline growth is acquisition-driven; Bolanitos, which closed on January 15, 2026, contributed 255,146 AgEq oz, or 37% of the quarter. Excluding Bolanitos, Q3 2026 production was 428,529 AgEq oz versus 457,525 reported in Q3 2025, a decline of 6.3%. Restating Q3 2025 at the current 68.04:1 ratio yields approximately 411,755 AgEq oz, indicating a like-for-like increase of about 4%.

The release did not include cost data. In Q2 2026, cash cost per AgEq oz was $49.08, a 127% year-over-year increase, while all-in sustaining costs (AISC) were $71.66, up 172% year-over-year. Against Q2 revenue of $42.5 million on 601,249 AgEq oz, the company generated roughly $70.7 of revenue per AgEq oz, placing it at or below all-in breakeven. It remains unclear whether the 14.6% increase in tonnes addressed these cost pressures.

Market expectations into the print were negative, with shares falling from C$0.53 on August 26, 2026, the date of the Q2 release, to C$0.34 on October 15, 2026, a decline of approximately 36%.

Guanajuato Silver Company Ltd. (GSVR) is a precious metals producer consolidating the Guanajuato mining district in central Mexico. The company operates a hub-and-spoke model featuring three processing plants within roughly a 20 km radius: Bolanitos, which handles 1,600 tpd flotation; El Cubo; and the Cata plant, which was placed on care and maintenance in December 2025. Additionally, the company operates the Topia flotation plant in Durango with a capacity of 7,500 t/month.

The company’s five producing assets include Bolanitos, San Ignacio, El Cubo Mines Complex (which includes Pinguico), Valenciana Mines Complex, and Topia. Bolanitos was acquired from Endeavour Silver, with the transaction closing on January 15, 2026. The deal involved a US$40M upfront payment, comprising US$30M in cash and US$10M in shares, plus up to US$10M in contingent payments. San Ignacio is now physically connected underground to Bolanitos.

Operating in Mexico, a 450-480 year mining district with established infrastructure, the company faces real exposure to cartel-era security costs, permitting delays, labor issues, and the ongoing Mexican government stance on concessions and royalties. Exploration assets include El Horcon in Jalisco, covering 7,908 ha with a 5,000 m drill program underway. The Lourdes property is being optioned out to Zacatecas Silver for US$225k cash, US$600k in shares, and a retained 2% NSR.

Leadership includes Chairman and CEO James Anderson, who has a capital-markets background, and CFO Danny Lee. Rick Trotman, a professional geologist, serves as SVP Mining Operations, having been promoted after COO Carlos Silva retired on December 31, 2025. The board includes Director and Qualified Person Bill Gehlen, along with recent addition David Paxton, who brings over 40 years of underground mining experience.