Guanajuato Silver Company Ltd. (GSVR) AI Stock Analysis

• Market Cap: C$81.69M
• Dividend Yield: N/A
• Average Volume (3M): 758.41K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.79
• Revenue Growth: 13.54%
• EPS Growth: 42.14%
• Country: CA
• Employees: 1,307
• Sector: Basic Materials
• Sector Strength: 62
• Industry: Mining
• EPS (TTM): -0.08
• Shares Outstanding: 472,176,970
• 10 Day Avg. Volume: 913,501
• 30 Day Avg. Volume: 758,410
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.74
• Price to Cash Flow (P/CF): 8.10
• P/FCF Ratio: 6.30
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$0.30
• Price Target Upside: 76.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

Guanajuato Silver Company Ltd. faces significant financial challenges, with negative profitability and high leverage posing risks. However, the strong increase in inferred resources at the El Cubo mine provides a positive outlook for future exploration and potential operational improvements. The technical indicators suggest short-term positive momentum, but overall valuation remains weak due to negative earnings.

Guanajuato Silver Company Ltd. Business Overview & Revenue Model

Company Description

Guanajuato Silver Company Ltd. (GSVR) is a mining company that engages primarily in the exploration, development, and production of precious metals in Mexico. The company focuses on silver and gold extraction and operates within the mining and metals sector. It is committed to responsible mining practices and aims to deliver value through efficient operations and leveraging its mineral-rich properties.

How the Company Makes Money

Guanajuato Silver Company Ltd. generates revenue through the sale of silver and gold extracted from its mining operations in Mexico. The company operates mines that produce these precious metals, which are then sold to refineries and metal traders. Key revenue streams include the sale of bullion and concentrates. The company's earnings are significantly influenced by the market prices of silver and gold, operational efficiencies, and the quality and yield of their mining properties. Partnerships with other mining companies, suppliers, and local communities can also play a role in enhancing operational capacities and ensuring a steady revenue flow.

Guanajuato Silver Company Ltd. Financial Statement Overview

Summary

Guanajuato Silver Company Ltd. is facing profitability challenges, with negative margins and declining revenue. The balance sheet shows high leverage, posing financial risks, while cash flow issues indicate operational cash constraints. The company needs to address these financial weaknesses to improve its financial health.

Income Statement

Guanajuato Silver Company Ltd. displays negative profit margins, with a Gross Profit Margin of -3.50% and a Net Profit Margin of -31.93% for TTM. The company has shown volatility in revenue, with a significant decline of 10.36% from the previous annual report. Although EBITDA has improved in TTM, indicating potential operational improvements, overall profitability remains a concern.

Balance Sheet

The company has a high Debt-to-Equity ratio of 2.48, indicating significant leverage, which could pose financial risk. Stockholders' Equity has decreased over time, impacting financial stability. However, the Equity Ratio stands at 10.15%, suggesting that there is still some equity buffer.

Cash Flow

Free Cash Flow has improved marginally in TTM but remains negative. The Operating Cash Flow to Net Income Ratio is negative, indicating cash flow issues. The company relies heavily on financing activities to support operations, which could be unsustainable in the long term.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
78.60M	87.67M	36.88M	4.12M	0.00	0.00
	Gross Profit
-2.75M	-15.63M	-6.88M	-2.23M	-15.92K	-3.64K
	EBIT
-6.83M	-35.00M	-23.18M	-10.90M	-2.12M	-652.01K
	EBITDA
4.33M	-19.21M	-13.71M	-9.07M	-2.18M	-506.13K
	Net Income Common Stockholders
-25.10M	-42.32M	-28.03M	-13.40M	-2.24M	-438.65K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
41.02K	2.59M	8.83M	8.23M	5.32M	544.28K
	Total Assets
1.71M	99.64M	85.65M	51.32M	10.24M	2.37M
	Total Debt
0.00	23.30M	20.43M	8.76M	27.70K	0.00
	Net Debt
-41.02K	20.70M	11.60M	525.05K	-5.29M	-544.28K
	Total Liabilities
429.70K	85.34M	53.14M	20.52M	274.86K	330.93K
	Stockholders Equity
1.28M	14.30M	32.51M	30.80M	9.97M	2.04M
Cash Flow		Free Cash Flow
-11.12M	-15.06M	-18.67M	-15.34M	-2.47M	-755.77K
	Operating Cash Flow
-6.24M	-8.15M	-15.06M	-8.93M	-2.07M	-588.36K
	Investing Cash Flow
-4.90M	-7.57M	-11.85M	-13.96M	-1.03M	-167.41K
	Financing Cash Flow
8.53M	6.52M	27.13M	27.12M	7.88M	1.26M

Guanajuato Silver Company Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.17
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GSVR, the sentiment is Positive. The current price of 0.17 is below the 20-day moving average (MA) of 0.18, below the 50-day MA of 0.19, and below the 200-day MA of 0.23, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 58.34 is Neutral, neither overbought nor oversold. The STOCH value of 64.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:GSVR.

Guanajuato Silver Company Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AGI	80 Outperform	C$14.53B	36.21	8.74%	0.42%	33.75%	32.86%
SIL	76 Outperform	$2.18B	18.49	18.48%	―	25.05%	0.44%
EDR	60 Neutral	$1.60B	―	-7.77%	―	-4.65%	-304.16%
MAG	51 Neutral	$2.27B	22.31	14.03%	―	―	134.17%
Sector *	47 Neutral	$2.64B	-3.82	-29.05%	3.32%	2.72%	-29.50%
USA	44 Neutral	$422.06M	―	-87.37%	―	15.71%	-4.75%
GSVR	41 Neutral	C$81.69M	―	-183.31%	―	13.54%	42.14%

Guanajuato Silver Company Ltd. Corporate Events

Guanajuato Silver Reports Significant Resource Increase at El Cubo Mine

Guanajuato Silver Company Ltd. has announced a significant update to the mineral resource estimate for its El Cubo mine complex in Guanajuato, Mexico. The new NI 43-101 Technical Report highlights an 85% increase in inferred silver-equivalent resources to 35.6 million ounces, and a 179% rise in inferred mineral resource tonnes. Despite three years of extensive mining, the indicated resources have only declined by 23%. This update is part of GSilver’s strategy to continually refresh its technical reports and resource estimates across all its Mexican mining operations, indicating strong exploration potential and ongoing efforts to enhance the company’s resource base.

Guanajuato Silver Expands El Cubo Mineral Resources

Guanajuato Silver Company Ltd. has announced a significant expansion in the mineral resources of its El Cubo mine in Mexico, increasing inferred resources by 85% to 35.6 million silver-equivalent ounces. This expansion underscores the mine’s resilience and highlights the company’s strategy to focus on El Cubo as a central element in its mining operations.

Guanajuato Silver Updates on Pinguico Project Progress

Guanajuato Silver Company Ltd. has announced significant progress in its 2024 drilling program at the Pinguico Project, with high-grade intercepts expanding resource potential and successful intersections in key veins. The company is advancing underground mining activities, generating revenue from silver and gold production, and aims to reach a sizeable underground stockpile by Q2 2025.

Guanajuato Silver Reports Strong Financial Performance

Guanajuato Silver Company Ltd. has reported its second consecutive quarter of positive mine operating income, achieving a mine operating income of $515,576 and a significant adjusted EBITDA of $892,277. The company has also improved its all-in sustaining cost and cash cost per silver-equivalent ounce, alongside an increase in silver production compared to the previous quarter. Furthermore, Guanajuato Silver has successfully repaid significant pre-payment facilities, signaling strong financial management and operational efficiency.

Guanajuato Silver Reports Promising Drill Results

Guanajuato Silver has reported promising results from its 2024 drilling program at the Valenciana Mines Complex in Mexico, revealing significant silver equivalent grades. The company aims to leverage these exploration successes to boost its production growth in the rich Veta Madre silver mining district.