Gatos Silver Stock Price, News & Analysis

Gatos Silver has appointed Tony Scott as Vice President of Evaluations and Technical Services, effective January 10, 2022. With over 20 years in the resource industry, Scott brings significant expertise from previous roles at Macquarie Group and Teck Resources. He will oversee technical operations and lead strategic planning, particularly for the Los Gatos Joint Venture. Gatos Silver, a leader in silver exploration and production in Mexico, aims to leverage Scott's experience to enhance growth and optimize operations.

Gatos Silver reported its Q3 2021 results, highlighting record throughput at Cerro Los Gatos (CLG) mine, processing 234,054 tonnes. The company achieved silver recovery of 89%, lead recovery of 91%, and zinc recovery of 74%. Gatos raised $133 million through a public offering and secured a $50 million revolving credit facility. Despite a net loss of $15 million for Q3, improved cash flow from LGJV operations led to a net debt-free status. CEO Stephen Orr emphasized progress in optimization and long-term shareholder value, while community initiatives continued despite COVID-19 challenges.

Gatos Silver (NYSE:GATO) reported record plant throughput and mined tonnage from the Cerro Los Gatos (CLG) mine for Q3 2021, mining 242,899 ore tonnes, a 1.2% increase from Q2. Plant processing reached 234,054 tonnes, showing a 1.5% quarterly rise. However, silver production fell by 20% due to lower grades, with zinc and lead also slightly down. For 2021, Gatos expects silver production of 7.4 million ounces, a slight decrease, while maintaining annual capital expenditure guidance of $65-$75 million. Cost performance improved, with all-in sustaining costs projected at $16.00-$17.00 per ounce.

Gatos Silver reports progress in its Cerro Los Gatos drilling campaign, with 27,000 meters drilled to date, and encouraging mineralization results from both SE and NW zones. Highlights include Hole GA404 with 12.5m @ 211.4g Ag/T and Hole GA392 showing 30.0m @ 27.2g Ag/T. The extended strike lengths indicate significant potential for further mineralization, especially in the SE Block #4. Ongoing drilling efforts also continue at the Esther zone, aiming to delineate mineral resources further.

Gatos Silver reported a record net income of $13.5 million for Q2 2021, a significant increase from a net loss of $10.6 million in Q2 2020. Production reached a record 2.1 million ounces of silver, with total sales of $75 million. The company's All-In Sustaining Cost (AISC) was $12.63 per ounce of payable silver. With no debt and cash equivalents of $29.6 million, Gatos Silver is positioned for growth. An exploration program is underway to enhance resource discovery, while community engagement has focused on COVID-19 mitigation and infrastructure support.

Gatos Silver announced the retirement of its 70%-owned Los Gatos Joint Venture's Term Loan as of July 26, 2021, involving approximately $155.9 million. This significant move was funded through a public offering and cash reserves, along with a $13 million draw from a Revolving Credit Facility. The retirement is expected to boost Gatos Silver's balance sheet by eliminating over $31 million in annual principal payments and removing cash reserve requirements. The Cerro Los Gatos mine has achieved record production, contributing to strong cash flows for future initiatives.

Gatos Silver has priced a public offering of 8,930,000 shares at $14.00 each, alongside 2,500,000 shares from selling stockholders, potentially raising $125 million before costs. The offering is set to close on July 19, 2021, pending customary conditions. Underwriters have a 30-day option to purchase additional shares. The registration statement became effective on July 15, 2021. The proceeds will aid in expanding the company's silver and zinc-rich exploration and production initiatives in Mexico's Chihuahua State.

Gatos Silver (NYSE/TSX: GATO) has announced a public offering of 6,500,000 shares, alongside 1,820,000 shares from selling stockholders. The offering includes a 30-day option for underwriters to purchase additional shares. The primary goals are to create a more cost-efficient capital structure and enhance liquidity. Electrum Group will remain the largest shareholder, aiming to diversify Gatos Silver's stockholder base. The offering is subject to market conditions and is made under a preliminary prospectus in the U.S. and Canada.

Gatos Silver has finalized an agreement with Dowa Metals & Mining to retire its approximately $154.8 million Los Gatos Joint Venture Term Loan. This move is expected to close soon and is viewed as a significant deleveraging event for the company. CEO Stephen Orr emphasized that this agreement marks a crucial step in creating value for stakeholders and strengthens Gatos Silver's position in the silver market. The company continues to develop its silver and zinc-rich mineral district in southern Chihuahua, Mexico, where it holds a 70% stake in the joint venture.