Guanajuato Silver Company Ltd. reported operating income of US$9.1M for the second quarter of 2026 alongside positive net income of $557,000, marking the company's second consecutive quarter of positive net income following $6.3M earned in the first half of the year.

Revenue for Q2 reached $42.5M, remaining consistent with the $43.0M recorded in the previous quarter, with over 95% derived from precious metals sales. Silver production rose 2% quarter-over-quarter to 347,481 ounces, while gold production decreased 15% to 3,653 ounces as the gold-rich Bolanitos Mine continues through its ramp-up phase.

The company substantially reduced its debt during the quarter by paying down 3,029 ounces of gold on its loan with Ocean Partners UK Ltd. The accelerated repayment eliminated all future monthly payments at a significant discount and left only one final payment due in April 2028. Cash and short-term investments stood at $19.9M at the end of the quarter.

Underground development across the asset portfolio reached 3,192 metres in Q2. Activity was led by the Cubo operations, where underground development expanded to 508 metres, representing a 429% increase over Q2 2025. Total drilling across the portfolio reached 10,018 metres from 87 completed holes, supported by three newly acquired company-owned diamond drill rigs.

Guanajuato Silver paused extraction activities at the Valenciana Mines Complex to prioritize exploration drilling and life-of-mine planning across the 4.2-kilometre strike length, redeploying equipment to higher-margin areas at Cubo, San Ignacio, and Bolanitos. The company plans to incorporate mineral material from the newly acquired Cebada concessions to the north and recommence full-scale production once a high-margin extraction plan is established.

“Operating costs at Bolanitos remained elevated during the quarter primarily due to an inherited lack of development at the mine; this issue is fully understood, and the Company has been making significant investments into development. As of August 15, Bolanitos operations had completed approximately 2,500 metres of crucial capital development this year; although not yet fully demonstrative in the Q2 daily mining rate, we are confident that production at Bolanitos will improve in subsequent quarters as the number of targeted available mining faces is achieved prior to year-end.”

— James Anderson, CEO & Chairman

Read the full announcement: Guanajuato Silver Reports Second Consecutive Quarter of Positive Net Income