Guanajauto Silver Co Ltd (TSXV:GSVR) - Q3/26 Production Up 14% QoQ on Underground Development - Research Portal

Guanajauto Silver Co Ltd (TSXV:GSVR) - Q3/26 Production Up 14% QoQ on Underground Development - Research Portal

Guanajuato Silver (GSVR) reported its Q3/26 production results. In Q3/26, GSVR produced 683,675 AgEq oz (+13.7% QoQ), which includes 392,138 oz Ag, 3,771 oz Au, 716,561 lbs Pb, and 908,759 lbs Zn. Milled tonnage rose 14.6% QoQ to 131,774 t, while silver and gold recoveries held at 87% and 85% (88% and 86% in Q2). Production beat our estimate of 655,228 AgEq oz by 4.3%. We initiated coverage of GSVR on October 13, 2026, with a BUY (S) rating and a C$0.80/sh target. We view these results as neutral. Gains at Bolañitos and El Cubo reflect improved access to ore from the underground capital development program. San Ignacio is being integrated into the Bolañitos operation via a new underground haulage tunnel, which should result in lower costs going forward. This is key, as GSVR's operating costs are relatively high due to its reliance on low-productivity cut-and-fill mining. Management plans to keep development ahead of the mine plan until the mines have more operating flexibility, then slow it to a steady pace. GSVR continues to trade at a discount to its silver peers, at 0.28x P/NAV versus peers at 0.41x a gap we believe should narrow as production builds and the drill program establishes reserves across its mines.