(Alliance News) - Guanajuato Silver Co Ltd said on Wednesday it posted a record production of silver equivalent during the third quarter of 2022, while its loss widened.

The Vancouver based mining company with operations near the city of Guanajuato, Mexico, said 700,264 silver equivalent ounces were produced during its third quarter, doubling from 337,760 ounces in its second quarter. Third quarter production consisted of 329,298 ounces of silver, 3,226 ounces of gold, 537,608 pounds of lead and 677,127 pounds of zinc.

Revenue was up 46% to USD8.9m from USD6.1 million in its second quarter, while net loss more than doubled to USD8.4 million from USD3.5 million. This is largely because cost of sales rose by 57% to GBP12.2 million from USD7.8 million, although Guanajuato Silver also partly attributed it to lower realised silver and gold prices.

There were also professional fee costs associated with its closed acquisition of Great Panther Mining Ltd's subsidiary Minera Mexicana Rosario SA de CV on August 4, which owned and operated the Topia mine.

Cost per tonne increased 48% to USD90.37 from USD60.89 following the addition of the Topia mine, where the mining of narrow, high-grade veins required operational changes to Guanajuato Silver's mining and milling method to reduce grade dilution.

"We continue to achieve quarterly increases measured both in tonnage mined, and precious metals produced, which reflects the efficacy of our ramp-up programs at our four producing silver mines," said Chair & Chief Executive Officer James Anderson. "As silver equivalent production continues to increase each quarter, we expect to see corresponding operating costs continue to decline."

Shares in Guanajuato Silver closed at 28.50 pence in London on Tuesday, up 3.6% from when shares were admitted for trading on the Aquis Stock Exchange on October 25.

By Greg Rosenvinge; gregrosenvinge@alliancenews.com

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