GSVRF Guanajuato Silver Company Ltd.

$GSVRF not a bad ER. the valenciana was the biggest cost with lowest yield. now that they put it into pure exploration mode the Q4 ER should be much better. also they got 250k ounces from bolanitos and they just now finished connecting it with san ignacio. again, Q4 will be much better, even if production stays the same, the costs will go down significantly. 683k ounces of AgEq is not bad, but we want 5 Mtpa AgEq from them and that means 1.25 Moz per quarter, which means their production is lagging 50% right now. I can see them doing 4 Mtpa, or 1Moz per quarter in 2027 but am concerned that unless el orcon, which they recently started to work on, does not bring in 250k ounces per quarter, like bolanitos, they will never get to 5 Mtpa. Although there is still el pinguico, which can be a trump card, given its history, but actually starting operations there will take time and a lot of money. definitely nothing for 2027, imo. so yeah, not bad, not good, just barely ok.

$GSVRF i asked gemini to asses the chances of the company discovering new rich deposits, given their mines, their history and location and also considering their large drilling program they have deployed this year and why their opex and aisc is so high. there is a good chance they will come out with some new numbers by the end of the year.

$GSVRF the company will not be acquired, it's not a type of company and assets that are targeted in M&A but there is a good chance we could strike a deal with Sinda to lend them the processing capacity since building your own can easily cost over $100M and takes a lot of time whereas we already have underutilised mills, so a nice deal could be made in the future. Nothing huge but it could easily bring 10M annually.