Guanajuato Silver Announces 4Q21 and Full Year Results
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Guanajuato Silver Announces 4Q21 and Full Year Results

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Fernando Mares By Fernando Mares | Journalist and Industry Analyst - Thu, 04/28/2022 - 15:32

Guanajuato Silver announced its 4Q21 financial results, as well as those for all of 2021. The scores come from the wholly-owned El Cubo Mine Complex and the Pinguico Project, both located in Guanajuato. The results highlight the company’s transition from an exploration-focused company to a full-fledged producing company.


The El Cubo mine reported revenues of US$4.1 million in 4Q21. The mine’s commercial production started on Oct. 1, 2021, so there are no previous operational and financial results for comparative purposes. According to the company, the production results continue to be in line with its ramp-up expectations.


“2021 saw Guanajuato Silver complete its transition from explorer to producer status… After purchasing the El Cubo Mining Complex in April 2021, we were mining and stockpiling mineralized material by August, processing that material in September, and had completed our first sale of precious metals before the end of October,” said James Anderson, CEO and Chairman, Guanajuato Silver about the company’s essential development.


Approximately 105,203oz of silver and 1,178oz of gold were sold during 4Q21, totaling 199,526 AgEq sold at US$23.35/oz. The company reported a cash balance of US$8.23 million, as well as US$1.6 million held as silver and gold bullion. 


“Driven by ongoing sales of silver and gold and a ramp-up process that continues to unfold according to plan, Guanajuato Silver ended 2021 with a strong balance sheet and renewed confidence that we are moving toward becoming a significant Mexican mid-tier producer,” Anderson added. 


Over 89,000 tonnes were mined from El Cubo and existing stockpiles at El Pinguico, with approximately 77,5724 milled, resulting in the production of 124,750oz of silver and 1,440oz of gold. The recovery of silver was around 83 percent, while gold recovery averaged 79 percent, respectively representing 96 percent and 90 percent of the target and historical recovery rate at El Cubo.


Guanajuato Silver is a Canadian mining company, it currently owns two mining projects located in the state of Guanajuato: El Cubo, which is currently in production, and Pinguico, which the company wants to restart. Guanajuato Silver’s business aims to reactivate the past-producing silver and gold mines. Both of its projects are located within 11km of the city of Guanajuato. The company has a projected annual average production of 1.8M AgEq oz. 


On Mar. 16, 2021, Guanajuato Silver signed a definitive asset purchase agreement with Endeavour to acquire the El Cubo Complex, which is currently the only project the company has in production.

Photo by:   Shane McLendon

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