Guanajuato Silver’s Mine Operating Income Up 416% in 4Q24

Canada-based precious metals company Guanajuato Silver increased its mine operating income by 416% in 4Q24, making the third consecutive positive quarterly results. During 2024, the company’s revenue gained more exposure to silver and reduced its exposure to gold. 

Guanajuato Silver reported positive mine operating income of US$2.6 million in 4Q24, representing a 416% improvement over 3Q24. This marked the third consecutive quarter of positive mine operating income, the company reports. EBITDA for the quarter was US$2.2 million, an increase of 587% from 3Q24. Adjusted EBITDA was US$1.7 million, up 96% over the same period, also representing the third consecutive positive quarter. "Guanajuato Silver's path toward establishing full mine profitability was confirmed during 4Q24; results in 4Q24 continued their positive trajectory as CAPEX investments made over the previous 12 months continued to positively impact the business,” said James Anderson, CEO and Chairperson, Guanajuato Silver. 

Revenue for 4Q24 totaled US$19 million, a 4% increase compared to 3Q24 and a 15% increase over 4Q23. The average realized silver price during the quarter was US$31.44/oz, while the average realized gold price was US$2,664.4/oz. Guanajuato Silver's revenue composition shifted in 2024, with a greater contribution from silver.

Silver accounted for 56% of the company’s revenue in 2024, up from over 49% in 2023. Gold’s contribution decreased from 43% in 2023 to 36% in 2024, while lead and zinc provided smaller contributions of 3% and 5%, respectively, in 2024. Guanajuato Silver produced 730,485oz AgEq in 4Q24. This volume consisted of 385,342oz of silver, 3,298oz of gold, 739,440lb of lead, and 985,895lb of zinc.   

For 2024, the company reported positive mine operating cashflow of US$12.6 million, compared to a negative US$156,000 in 2023. Working capital improved by US$3.1 million in 2024. The company retired two debt facilities during the year and currently has one gold-denominated loan outstanding with Ocean Partners UK. The company noted that 27% of its net loss for the year was attributed to this instrument.   

Amendments to Ocean Partners’ Credit Facility

Guanajuato Silver announced amended terms for its Gold Credit Facility with Ocean Partners. Subject to final documentation, two-thirds of the outstanding balance will be amortized over 36 months starting April 2025, repayable in fixed installments of 131.7oz of gold bullion, approximately 10% of the company's monthly modelled gold production. The remaining third, totaling 2,366oz, will be paid after the 36-month term. The company stated this new facility reduces monthly payments by over 206oz of gold, approximately US$700,000 based on current gold prices. Guanajuato Silver's silver production remains completely unhedged, the company reported. “Our association with Ocean Partners has been among the most successful partnerships we have formed to date in Mexico. In addition to providing for improved financial flexibility, the new facility will allow for increased capital deployment toward exploration and development opportunities. We look forward to continuing our relationship with Ocean Partners as we build Mexico's next mid-tier precious metals producer,” Anderson concluded.