Guanajuato Silver(TSXV: GSVR) stayed profitable for a second consecutive quarter, though only narrowly, posting net income of $557,000 for the three months ended June 30 against $5.7 million in the prior quarter.
Revenue held roughly flat at $42.5 million, a 1% decline from $43.1 million. Earnings amounted to $0.00 per share on a basic and diluted basis, down from $0.01. Adjusted EBITDA fell 61% to $5.8 million and mine operating income dropped 36% to $9.2 million.
Cash, cash equivalents and short-term investments closed the quarter at $19.9 million, down from $30.5 million. Working capital swung to a deficit of $3.9 million from a $5.5 million surplus.
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Debt moved the other way. The company delivered 3,029 ounces of gold against its loan with Ocean Partners UK Ltd., an accelerated repayment valued at $12.1 million using the quarter-end gold price of $4,026 an ounce, clearing all remaining monthly instalments at a discount to spot. A single payment remains outstanding, due in April 2028 and valued at $9.5 million.
Silver production rose 2% to 347,481 ounces. Gold slipped 15% to 3,653 ounces, lead fell 11% to 727,370 pounds and zinc gained 4% to 956,217 pounds. Mills processed 114,967 tonnes, 6% fewer than in the first quarter, as silver grades improved 9% to 106.70 g/t and gold grades eased 10% to 1.14 g/t.
Unit costs climbed on both measures. Cash costs rose 18% to $49.08 per silver equivalent ounce and all-in sustaining costs rose 34% to $71.66, set against a realized silver price of $73.68 that was 13% lower quarter over quarter. Sustaining capital nearly tripled to $9.5 million.
James Anderson, chief executive officer and chairman, attributed the softer gold output to the newly acquired Bolanitos mine, where “operating costs remained elevated during the quarter primarily due to an inherited lack of development.” Roughly 2,500 metres of capital development had been completed there as of August 15, and Anderson said he expects production to improve as more mining faces open up before year end.
Guidance was left intact, with capital expenditures of approximately $35 million for 2026 alongside a 75,000-metre drill program and 16,000 metres of underground development. The company drilled 10,018 metres and advanced 3,192 metres of development in the quarter, leaving the bulk of both programs to the back half of the year. Extraction at the Valenciana Mines Complex has been paused in favour of a drilling campaign aimed at expanding resources there.
Guanajuato Silver last traded at $0.59 on the TSX Venture.
