Gatos Silver Reports 2024 Production at the Top End of Guidance
Rhea-AI Summary
Gatos Silver (NYSE/TSX: GATO) reported strong production results for Q4 and full-year 2024 at its 70%-owned Cerro Los Gatos mine in Mexico. The company achieved 9.68 million ounces of silver production, reaching the top end of its upwardly revised 2024 guidance. Silver equivalent production was 15.57 million ounces, slightly exceeding guidance.
The mine achieved its eighth consecutive quarterly record for mill throughput in Q4 2024, averaging 3,324 tonnes per day, 33% above original design capacity. Production metrics were impressive across all metals: 69.7 million pounds of zinc, 46.4 million pounds of lead, and 5.53 thousand ounces of gold, all slightly above guidance.
Mill throughput increased 11% year-over-year, with December averaging 3,760 tonnes per day. Metal production in 2024 surpassed 2023 levels, with zinc and lead production increasing by 22% and 20% respectively.
Positive
- Record mill throughput achieved for 8 consecutive quarters, 33% above design capacity
- Silver production reached top end of upwardly revised guidance at 9.68M oz
- Silver equivalent production exceeded guidance at 15.57M oz
- Significant YoY production increases: zinc +22%, lead +20%
- December 2024 achieved peak mill throughput of 3,760 tonnes per day
Negative
- Lower silver grades compared to 2023
- Slight decline in gold production in Q4 2024 compared to Q4 2023 (-5%)
News Market Reaction
On the day this news was published, GATO declined 0.33%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
VANCOUVER, British Columbia, Jan. 09, 2025 (GLOBE NEWSWIRE) -- Gatos Silver, Inc. (NYSE/TSX: GATO) (“Gatos Silver” or the “Company”) today announced production results for the quarter and year ended December 31, 2024 at its
Dale Andres, CEO of Gatos Silver, commented: “The CLG mine delivered another excellent quarter of production to end another very strong year in 2024. We achieved our eighth consecutive quarterly record for mill throughput in the fourth quarter of 2024, with an average throughput rate of above 3,300 tonnes per day, which is
2024 CLG Production Results Compared with Guidance (
| Contained Metal | Original 2024 Guidance | Updated 2024 Guidance | 2024 Actual |
| Silver ounces (millions) | 8.4 – 9.2 | 9.2 – 9.7 | 9.68 |
| Zinc pounds - in zinc conc. (millions) | 61 – 69 | 61 – 69 | 69.7 |
| Lead pounds - in lead conc. (millions) | 40 – 46 | 40 – 46 | 46.4 |
| Gold ounces - in lead conc. (thousands) | 4.5 – 5.5 | 4.5 – 5.5 | 5.53 |
| Silver Equivalent ounces (millions)1 | 13.5 – 15.0 | 14.7 – 15.5 | 15.57 |
1 Silver equivalent production is calculated using prices of US
As shown in the table above, 2024 silver production was 9.68 million ounces, compared with guidance as upwardly revised in October 2024, of 9.2 million ounces to 9.7 million ounces. Silver equivalent production was 15.57 million ounces, slightly above the high end of guidance at 15.5 million ounces as upwardly revised in October 2024. Zinc production of 69.7 million pounds, lead production of 46.4 million pounds, and gold production of 5.53 thousand ounces were all slightly above the high end of guidance, which did not change during 2024.
Production Results (
CLG comparative production highlights are summarized below:
| Three Months Ended December 31, | Year Ended December 31, | |||
| CLG Production | 2024 | 2023 | 2024 | 2023 |
| Tonnes milled (dmt) | 305,807 | 277,318 | 1,191,377 | 1,071,400 |
| Tonnes milled per day (dmt) | 3,324 | 3,014 | 3,255 | 2,935 |
| Feed Grades | ||||
| Silver (g/t) | 294 | 318 | 284 | 299 |
| Zinc (%) | 4.28 | 3.86 | 4.22 | 3.90 |
| Lead (%) | 2.17 | 1.86 | 2.00 | 1.85 |
| Gold (g/t) | 0.26 | 0.30 | 0.29 | 0.29 |
| Contained Metal | ||||
| Silver ounces (millions) | 2.58 | 2.56 | 9.68 | 9.21 |
| Zinc pounds - in zinc conc. (millions) | 18.3 | 14.6 | 69.7 | 57.3 |
| Lead pounds - in lead conc. (millions) | 12.9 | 10.2 | 46.4 | 38.9 |
| Gold ounces - in lead conc. (thousands) | 1.33 | 1.39 | 5.53 | 5.26 |
| Silver Equivalent ounces (millions)1 | 4.15 | 3.88 | 15.57 | 14.33 |
| Recoveries | ||||
| Silver - in both lead and zinc concentrates | ||||
| Zinc - in zinc concentrate | ||||
| Lead - in lead concentrate | ||||
| Gold - in lead concentrate | ||||
1 Silver equivalent production for 2024 is calculated using prices of US
Mill throughput averaged 3,324 tonnes per day during the fourth quarter of 2024, an increase of
Metal production in 2024 was higher than 2023 across all metals, supported by higher mill throughput rates. Silver production in 2024 increased by
Silver production in the fourth quarter of 2024 was 2.58 million ounces,
Increased fourth quarter and 2024 mill throughput rates were driven by continued debottlenecking and optimization efforts focused on achieving higher mining rates through increased productivity and improved mine plan flexibility.
During December, mill throughput averaged 3,760 tonnes per day with good metallurgical performance, and the mine achieved an average mining rate of 3,502 tonnes per day.
Important Information for Investors and Stockholders about the Merger and Where to Find It
This news release is not intended to and does not constitute an offer to buy or sell or the solicitation of an offer to subscribe for or buy or an invitation to purchase or subscribe for any securities of First Majestic or Gatos Silver or the solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issuance or transfer of securities of First Majestic or Gatos Silver in any jurisdiction in contravention of applicable law. This news release may be deemed to be soliciting material relating to First Majestic’s proposed acquisition of all of the issued and outstanding shares of common stock of Gatos Silver.
In connection with the proposed Merger between First Majestic and Gatos Silver pursuant to the previously announced Agreement and Plan of Merger (the “Merger Agreement”), First Majestic filed with the U.S. Securities and Exchange Commission (the “SEC”) a registration statement on Form F-4 that includes a Proxy Statement of Gatos Silver that also constitutes a Prospectus of First Majestic (the “Proxy Statement/Prospectus”) and other documents. Each of First Majestic and Gatos Silver may also file other relevant documents with the SEC regarding the proposed Merger. The registration statement on Form F-4 was declared effective by the SEC on December 2, 2024. Gatos Silver filed a Proxy Statement/Prospectus with the SEC on December 3, 2024 which it commenced mailing on December 6, 2024 to its stockholders in connection with the proposed Merger. First Majestic filed the Information Circular in connection with the proposed Merger with applicable Canadian securities regulatory authorities on December 10, 2024 and commenced mailing the meeting materials to its shareholders on December 10, 2024. This news release is not a substitute for any registration statement, proxy statement, prospectus or other document First Majestic or Gatos Silver has filed or may file with the SEC or Canadian securities regulatory authorities in connection with the pending Merger. INVESTORS AND SECURITY HOLDERS OF GATOS SILVER AND FIRST MAJESTIC ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS AND MANAGEMENT PROXY CIRCULAR, RESPECTIVELY, AND ANY OTHER RELEVANT DOCUMENTS FILED OR TO BE FILED WITH THE SEC OR CANADIAN SECURITIES REGULATORY AUTHORITIES AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS THERETO CAREFULLY IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE BEFORE MAKING ANY VOTING OR INVESTMENT DECISION WITH RESPECT TO THE MERGER BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT FIRST MAJESTIC, GATOS SILVER, THE TRANSACTION AND RELATED MATTERS. Investors and security holders are able to obtain free copies of the Proxy Statement/Prospectus, the filings with the SEC that are and will be incorporated by reference into the Proxy Statement/Prospectus and other documents filed with the SEC by First Majestic and Gatos Silver containing important information about First Majestic or Gatos Silver and the Transaction through the website maintained by the SEC at www.sec.gov. Investors are also able to obtain free copies of the management proxy circular and other documents filed with Canadian securities regulatory authorities by First Majestic, through the website maintained by the Canadian Securities Administrators at www.sedarplus.com. In addition, investors and security holders are able to obtain free copies of the documents filed by First Majestic with the SEC and Canadian securities regulatory authorities on First Majestic’s website at www.firstmajestic.com or by contacting First Majestic’s investor relations team. Copies of the documents filed with the SEC by Gatos Silver are available free of charge on Gatos Silver’s website or by contacting Gatos Silver’s investor relations team.
Participants in the Merger Solicitation
First Majestic, Gatos Silver and certain of their respective directors, executive officers and employees may be considered participants in the solicitation of proxies in connection with the proposed Merger. Information regarding the persons who may, under the rules of the SEC, be deemed participants in the solicitation of the shareholders of First Majestic and the stockholders of Gatos Silver in connection with the Merger, including a description of their respective direct or indirect interests, by security holdings or otherwise, is included in the Proxy Statement/Prospectus described above and other relevant documents filed with the SEC and Canadian securities regulatory authorities in connection with the Merger. Additional information regarding First Majestic’s directors and executive officers is also included in First Majestic’s Notice of Annual Meeting of Shareholders and 2024 Proxy Statement, which was filed with the SEC and Canadian securities regulatory authorities on April 15, 2024, and information regarding Gatos Silver’s directors and executive officers is also included in Gatos Silver’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the SEC on February 20, 2024, as amended by Amendment No. 1 to such annual report filed with the SEC on May 6, 2024 and Gatos Silver’s 2024 Proxy Statement for its 2024 Annual Meeting of Stockholders, which was filed with the SEC on April 25, 2024. These documents are available free of charge as described above.
About Gatos Silver
Gatos Silver is a silver dominant exploration, development and production company that discovered a new silver and zinc-rich mineral district in southern Chihuahua State, Mexico. As a
On September 5, 2024, Gatos Silver and First Majestic Silver Corp. (“First Majestic”) announced that they entered into a definitive merger agreement pursuant to which First Majestic will acquire all of the issued and outstanding common shares of Gatos Silver (the “Merger”). The proposed Merger would consolidate three world-class, producing silver mining districts in Mexico to create a leading intermediate primary silver producer. Information relating to the proposed Merger can be found at the Company’s website at www.gatossilver.com.
Qualified Person
Scientific and technical disclosure in this press release was approved by Anthony (Tony) Scott, P.Geo., Senior Vice President of Corporate Development and Technical Services of Gatos Silver who is a “Qualified Person” as defined in S-K 1300 and NI 43-101.
Forward-Looking Statements
This press release contains statements that constitute “forward looking information” and “forward-looking statements” within the meaning of U.S. and Canadian securities laws. All statements other than statements of historical facts contained in this press release, including statements regarding the potential for the Company to deliver value into First Majestic following completion of the Merger are forward-looking statements. Forward-looking statements are based on management’s beliefs and assumptions and on information currently available to management. Such statements are subject to risks and uncertainties, and actual results may differ materially from those expressed or implied in the forward-looking statements, and such other risks and uncertainties described in our filings with the U.S. Securities and Exchange Commission and Canadian securities commissions. Gatos Silver expressly disclaims any obligation or undertaking to update the forward-looking statements contained in this press release to reflect any change in its expectations or any change in events, conditions, or circumstances on which such statements are based unless required to do so by applicable law. No assurance can be given that such future results will be achieved. Forward-looking statements speak only as of the date of this press release.
Investors and Media Contact
André van Niekerk
Chief Financial Officer
investors@gatossilver.com
(604) 424-0984
FAQ
What was Gatos Silver's (GATO) total silver production in 2024?
How much did GATO's mill throughput increase in 2024 compared to 2023?
What was GATO's zinc and lead production growth in 2024?
How did GATO's Q4 2024 production compare to Q4 2023?
What was GATO's mill throughput performance in December 2024?
