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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, consolidating three major silver districts in Mexico; expected to close in Q1 2025, pending regulatory, shareholder, and other approvals.
Q3 2024 net income was $9.9M, up from $3.3M in Q3 2023; adjusted net income was $15.2M.
Earnings per share for Q3 2024 rose 200% to $0.14, with adjusted EPS at $0.22.
Updated life of mine plan extends mine life to October 2032 and increases silver equivalent production by 36%.
Record free cash flow and cash balance position the company strongly ahead of the merger.
Financial highlights
LGJV generated $58.2M in operating cash flow and $42.6M in free cash flow in Q3 2024, up 199% year-over-year.
Revenues rose 40% to $93.8M in Q3 2024, driven by higher metal prices and sales volumes.
LGJV net income for Q3 2024 was $25.7M, up from $15.1M in Q3 2023; EBITDA was $57.2M.
By-product AISC per ounce of silver was $9.61, down 35% year-over-year; co-product AISC was $16.13, down 9%.
Ended Q3 with $116.7M in cash; both the company and LGJV remain debt-free, with $50M available on credit facility.
Outlook and guidance
Raised 2024 silver production guidance to 9.2–9.7M oz (from 8.4–9.2M); silver equivalent production guidance to 14.7–15.5M oz.
By-product AISC guidance lowered to $8.50–$10.00/oz (from $9.50–$11.50/oz); co-product AISC guidance unchanged at $14.00–$16.00/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.
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