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Gatos Silver (GASO) investor relations material
Gatos Silver Q3 2024 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
Executive summary
Entered into a merger agreement with First Majestic, expected to close in Q1 or early 2025, consolidating three major Mexican silver districts.
Net income for Q3 2024 was $9.9M, up from $3.3M in Q3 2023; adjusted net income was $15.2M.
Record free cash flow and cash balance position the company strongly ahead of the merger.
Updated life of mine plan extends operations to 2032, increasing expected silver equivalent production by 36%.
Ongoing exploration drilling yielded promising results, particularly at Central Deeps and SE Deeps.
Financial highlights
Q3 2024 LGJV revenue was $93.8M, up 40% year-over-year; YTD revenue was $260.3M, up 33%.
Q3 2024 free cash flow was $42.6M, up 199% year-over-year; YTD free cash flow was $108.8M.
Q3 2024 net income at LGJV was $25.7M, up 71% year-over-year; EBITDA was $57.2M.
Ended Q3 with a cash balance of $116.7M, up 40% sequentially; company and JV remain debt free.
Q3 2024 cost of sales decreased 1% to $31.2M.
Outlook and guidance
Full-year 2024 silver production guidance raised to 9.2–9.7M ounces; silver equivalent production guidance increased to 14.7–15.5M ounces.
All-in sustaining costs per ounce of silver revised down to $8.50–$10; co-product AISC guidance unchanged at $14–$16/oz.
Sustaining capital expenditure guidance at $45M and exploration/resource drilling at $18M for 2024.
Zinc, lead, and gold production expected near high end of original guidance.
Merger with First Majestic expected to create a leading intermediate silver producer.
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