Guanajuato Silver (TSXV: GSVR) flipped to a quarterly profit in the three months ended March 31, posting net income of $5.7 million as the recently closed Bolanitos acquisition and firmer precious metals prices reshaped the producer’s income statement.
Revenue climbed 89% from the prior quarter to $43.1 million, with silver and gold accounting for more than 97% of the top line. Silver alone generated 58% of total revenue, leaving the company unusually leveraged to the white metal compared with most peers that lean heavily on gold.
Mine operating income jumped 252% to $14.3 million, while EBITDA swung to a positive $13.1 million from a $21.8 million loss in the fourth quarter. The Q4 result had been weighed down by roughly $25.0 million in non-cash items, including a legal provision tied to the NucTech Mexico lawsuit and a derivative loss on the Ocean Partners gold loan.
Cash and short-term investments stood at $30.5 million at the end of March, down from $41.5 million three months earlier. The drawdown reflects the $30.0 million net cash outlay to close the Bolanitos transaction on January 15, a deal that adds a gold rich asset to a portfolio previously skewed toward silver.
Consolidated output for the quarter totalled 339,104 ounces of silver, 4,295 ounces of gold, 815,100 pounds of lead and 921,516 pounds of zinc. Silver production rose 15% sequentially from 295,836 ounces, while gold output more than doubled from 2,110 ounces, largely on the addition of Bolanitos. In terms of cost, cash costs increased 20% quarter over quarter to $41.57 an ounce, while all in sustaining costs jumped 24% to $53.43 an ounce.
The Bolanitos acquisition has yet to be fully integrated, and management has flagged that work as the next lever for unit costs. Chief Executive James Anderson said the integration would eventually allow the company to “materially drive operations costs lower” alongside higher metal output, though he acknowledged there is more work ahead.
Capital spending is set to climb to roughly $35 million in 2026, the largest budget in the company’s history, funded entirely from operating cash flow. The program includes a 75,000-metre drill campaign, 16,000 metres of underground development and a $5 million upgrade of the Topia mill, which remains the highest-grade asset in the portfolio. Most of that spending is front-loaded into the first half, and is expected to keep all-in sustaining costs elevated in the near term.
Guanajuato Silver last traded at $0.61 on the TSX Venture.
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