Gatos Silver Reports Second Quarter 2024 Results
Gatos Silver (NYSE/TSX: GATO) reported strong Q2 2024 financial results for its 70% owned Los Gatos Joint Venture (LGJV). Highlights include:
- Record revenue of $94.2 million, up 62% year-over-year
- Record net income of $20.5 million, up from $0.7 million
- Silver production of 2.30 million ounces, up 15%
- By-product AISC of $6.57 per ounce of payable silver, down 54%
Gatos Silver's Q2 2024 results showed net income of $9.2 million, up from a net loss of $3.6 million in Q2 2023. The company's cash balance increased to $82.5 million as of June 30, 2024. Gatos Silver remains on track to achieve its 2024 production and cost guidance.
Gatos Silver (NYSE/TSX: GATO) ha riportato risultati finanziari solidi per il secondo trimestre del 2024 per la sua joint venture Los Gatos (LGJV) di cui possiede il 70%. I punti salienti includono:
- Entrate record di 94,2 milioni di dollari, in aumento del 62% rispetto all’anno precedente
- Utile netto record di 20,5 milioni di dollari, in crescita rispetto ai 0,7 milioni di dollari
- Produzione di argento di 2,30 milioni di once, in aumento del 15%
- Costo per produzione AISC da sottoprodotto di 6,57 dollari per oncia di argento pagabile, in calo del 54%
I risultati del secondo trimestre del 2024 di Gatos Silver hanno mostrato un utile netto di 9,2 milioni di dollari, in aumento rispetto a una perdita netta di 3,6 milioni di dollari nel Q2 2023. Il saldo di cassa dell’azienda è aumentato a 82,5 milioni di dollari al 30 giugno 2024. Gatos Silver è ancora in linea per raggiungere i suoi obiettivi di produzione e costo per il 2024.
Gatos Silver (NYSE/TSX: GATO) reportó resultados financieros sólidos para el segundo trimestre de 2024 de su joint venture Los Gatos (LGJV) en la que posee el 70%. Los aspectos destacados incluyen:
- Ingresos récord de 94,2 millones de dólares, un aumento del 62% interanual
- Ingreso neto récord de 20,5 millones de dólares, en comparación con 0,7 millones
- Producción de plata de 2,30 millones de onzas, un aumento del 15%
- Costo AISC por subproducto de 6,57 dólares por onza de plata pagadera, una disminución del 54%
Los resultados del segundo trimestre de 2024 de Gatos Silver mostraron un ingreso neto de 9,2 millones de dólares, en comparación con una pérdida neta de 3,6 millones en el segundo trimestre de 2023. El saldo de caja de la empresa aumentó a 82,5 millones de dólares al 30 de junio de 2024. Gatos Silver sigue en camino de lograr su guía de producción y costos para 2024.
Gatos Silver (NYSE/TSX: GATO)는 70% 지분을 소유한 Los Gatos 합작 투자(LGJV)의 2024년 2분기 강력한 재무 결과를 보고했습니다. 주요 내용은 다음과 같습니다:
- 기록적인 매출 9420만 달러로 전년 대비 62% 증가
- 기록적인 순이익 2050만 달러로 70만 달러에서 상승
- 은 생산량 230만 온스로 15% 증가
- 부산물 AISC 온스당 6.57달러로 54% 감소
Gatos Silver의 2024년 2분기 결과는 순이익 920만 달러를 보여주었으며, 이는 2023년 2분기 순손실 360만 달러에서 증가한 수치입니다. 회사의 현금 잔고는 2024년 6월 30일 기준으로 8250만 달러로 증가했습니다. Gatos Silver는 2024년 생산 및 비용 지침을 성공적으로 달성할 계획입니다.
Gatos Silver (NYSE/TSX: GATO) a annoncé des résultats financiers solides pour le deuxième trimestre 2024 de sa joint-venture Los Gatos (LGJV) dont il détient 70%. Les faits marquants incluent:
- Revenus records de 94,2 millions de dollars, en hausse de 62% par rapport à l'année précédente
- Résultat net record de 20,5 millions de dollars, en augmentation par rapport à 0,7 million de dollars
- Production d'argent de 2,30 millions d'onces, en hausse de 15%
- AISC par sous-produit de 6,57 dollars par once d'argent payable, en baisse de 54%
Les résultats du deuxième trimestre 2024 de Gatos Silver ont montré un résultat net de 9,2 millions de dollars, contre une perte nette de 3,6 millions de dollars au deuxième trimestre 2023. La trésorerie de l'entreprise a augmenté à 82,5 millions de dollars au 30 juin 2024. Gatos Silver reste sur la bonne voie pour atteindre ses objectifs de production et de coûts pour 2024.
Gatos Silver (NYSE/TSX: GATO) berichtete über starke Finanzzahlen für das zweite Quartal 2024 seiner 70% Beteiligung an dem Los Gatos Joint Venture (LGJV). Die Höhepunkte sind:
- Rekordumsatz von 94,2 Millionen Dollar, ein Anstieg von 62% im Vergleich zum Vorjahr
- Rekordnettoeinkommen von 20,5 Millionen Dollar, im Vergleich zu 0,7 Millionen Dollar
- Silberproduktion von 2,30 Millionen Unzen, ein Anstieg von 15%
- By-Produkt AISC von 6,57 Dollar pro Unze zahlbarem Silber, ein Rückgang um 54%
Die Ergebnisse von Gatos Silver für das zweite Quartal 2024 zeigten ein Nettogewinn von 9,2 Millionen Dollar, im Vergleich zu einem Nettoverlust von 3,6 Millionen Dollar im zweiten Quartal 2023. Der Bargeldbestand des Unternehmens stieg zum 30. Juni 2024 auf 82,5 Millionen Dollar. Gatos Silver ist auf dem richtigen Weg, um seine Produktions- und Kostenziele für 2024 zu erreichen.
- Record revenue of $94.2 million for LGJV, up 62% year-over-year
- Record net income of $20.5 million for LGJV, up from $0.7 million
- Silver production increased 15% to 2.30 million ounces
- By-product AISC decreased 54% to $6.57 per ounce of payable silver
- Gatos Silver reported net income of $9.2 million, up from a net loss of $3.6 million
- Company cash balance increased to $82.5 million as of June 30, 2024
- LGJV distributed $95 million to partners through July 2024
- Cost of sales increased 24% to $32.0 million for LGJV
- General and administrative expenses increased for Gatos Silver
Gatos Silver's Q2 2024 results are highly positive, demonstrating significant financial and operational improvements. Key highlights include:
- Record revenue of
$94.2 million , up62% year-over-year - Record net income of
$20.5 million , a substantial increase from$0.7 million in Q2 2023 - EBITDA doubled to
$54.1 million - Free cash flow more than doubled to
$40.8 million
The company's improved performance is driven by higher production volumes, lower unit costs and favorable metal prices. The by-product AISC of
Gatos Silver's operational performance at the Cerro Los Gatos mine is noteworthy. The company has successfully increased throughput to 3,240 tonnes per day in Q2, surpassing the upper end of their 2024 guidance range. This demonstrates effective debottlenecking and operational optimization.
The grade profile remains strong, with silver grade at 273 g/t and improvements in zinc and lead grades. The
Looking ahead, Gatos Silver's focus on extending the mine life through exploration and their upcoming updated life of mine plan could potentially enhance the asset's long-term value. The company's ability to consistently outperform its guidance while reducing costs bodes well for future operational stability and growth potential.
Gatos Silver's Q2 results present a compelling investment case in the silver mining sector. The company's debt-free status, growing cash position (
The LGJV's ability to distribute
However, investors should note the volatility inherent in precious metals markets. While current metal prices are favorable, any significant downturn could impact profitability. Additionally, the company's single-asset focus presents concentration risk.
Overall, Gatos Silver's operational improvements and financial strength position it well in the silver mining landscape, but diversification and sustained cost management will be key to long-term success.
VANCOUVER, British Columbia, Aug. 06, 2024 (GLOBE NEWSWIRE) -- Gatos Silver, Inc. (NYSE/TSX: GATO) (“Gatos Silver” or the “Company”) today announced its second quarter 2024 financial and operating results. The Company will host an investor and analyst call on August 7, 2024, details of which are provided below.
The Company has a
Dale Andres, CEO of Gatos Silver, commented: “The LGJV generated record revenue and free cash flow in quarter, reflecting significantly lower unit operating costs and higher metal prices combined with the strong previously reported production at CLG. The LGJV has distributed
“We remain on track to achieve 2024 production and cost guidance and we continue to expect that our updated life of mine plan scheduled for the third quarter of 2024 will further extend CLG’s mine life. We are also continuing to follow-up on the exciting initial exploration results we announced on July 23, as we continue to advance our district exploration program.”
Summary
LGJV Q2 2024 results compared to Q2 2023 (
- Record revenue of
$94.2 million , up62% from$58.3 million - Cost of sales
$32.0 million , up24% from$25.8 million - Record net income
$20.5 million , up from$0.7 million - Record EBITDA
$54.1 million 1, up101% from$27.0 million - Record cash flow from operations of
$54.5 million , up59% from$34.3 million - Record free cash flow
$40.8 million 1, up107% from$19.7 million - Silver production 2.30 million ounces, up
15% from 2.00 million ounces - Silver equivalent production of 3.88 million ounces2, up
18% from 3.30 million ounces - By-product AISC of
$6.57 1 per ounce of payable silver, down54% from$14.32 - Co-product AISC of
$15.26 1 per ounce of payable silver, down13% from$17.55
Gatos Silver Q2 2024 results compared to Q2 2023:
- Net income of
$9.2 million , up from net loss of$3.6 million - Basic and diluted earnings per share of
$0.13 , up from loss of$0.05 - EBITDA of
$8.2 million 1, up from a$3.5 million loss - Cash flow provided by operating activities and free cash flow of
$11.8 million 1, compared to cash flow used by operating activities and free cash outflow of$3.8 million 1
_________________________________
1 See “Non-GAAP Financial Measures” below.
2 See definition of silver equivalent production below
At the LGJV, the
For Gatos Silver, higher net income, earnings per share and EBITDA1 for Q2 2024 were primarily attributable to the higher equity income from the LGJV. This was partially offset by an increase in general and administrative expenses, mainly due to higher non-cash stock-based compensation expenses of
As of June 30, 2024, the Company had a cash balance of
Financial and Operating Results
Below is select operational and financial information for the three and six months ended June 30, 2024 and 2023. For a detailed discussion of financial and operating results refer to the Form 10-Q for the three months ended June 30, 2024, filed on August 6, 2024 on both the EDGAR and SEDAR+ systems and posted on the Company’s website at https://gatossilver.com.
Los Gatos Joint Venture
| LGJV Selected Financial Information (Unaudited) | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
| (in millions, except where otherwise stated) | 2024 | 2023 | 2024 | 2023 | ||||||||
| Revenue | $ | 94.2 | $ | 58.3 | $ | 166.4 | $ | 128.1 | ||||
| Cost of sales | 32.0 | 25.8 | 62.7 | 51.8 | ||||||||
| Royalties and duties | 0.7 | 0.3 | 1.0 | 0.7 | ||||||||
| Exploration | 1.6 | 0.7 | 3.0 | 1.1 | ||||||||
| General and administrative | 4.1 | 4.4 | 8.4 | 8.3 | ||||||||
| Depreciation, depletion and amortization | 20.8 | 22.0 | 41.1 | 42.8 | ||||||||
| Other expense (income) | 2.0 | (0.4 | ) | 2.2 | (0.9 | ) | ||||||
| Income tax expense | 12.5 | 4.7 | 17.3 | 10.7 | ||||||||
| Net income and comprehensive income2 | $ | 20.5 | $ | 0.7 | $ | 30.7 | $ | 13.4 | ||||
| Sustaining capital1 | $ | 11.4 | $ | 13.1 | $ | 20.3 | $ | 20.7 | ||||
| Resource development drilling expenditures1 | $ | 1.9 | $ | 4.0 | $ | 5.1 | $ | 7.0 | ||||
| EBITDA1 | $ | 54.1 | $ | 27.0 | $ | 89.3 | $ | 66.6 | ||||
| Cash provided by operating activities | $ | 54.5 | $ | 34.3 | $ | 91.8 | $ | 74.4 | ||||
| Free cash flow1 | $ | 40.8 | $ | 19.7 | $ | 66.3 | $ | 48.4 | ||||
| Operating Results (CLG | ||||||||||||
| Tonnes milled (dmt) | 294,869 | 265,342 | 586,983 | 525,770 | ||||||||
| Tonnes milled per day (dmt) | 3,240 | 2,916 | 3,225 | 2,905 | ||||||||
| Average Grades | ||||||||||||
| Silver grade (g/t) | 273 | 265 | 279 | 296 | ||||||||
| Zinc grade (%) | 4.55 | 4.00 | 4.27 | 3.96 | ||||||||
| Lead grade (%) | 2.06 | 1.85 | 1.92 | 1.86 | ||||||||
| Gold grade (g/t) | 0.29 | 0.26 | 0.29 | 0.28 | ||||||||
| Production - Contained Metal | ||||||||||||
| Silver ounces (millions) | 2.30 | 2.00 | 4.67 | 4.43 | ||||||||
| Zinc pounds – in zinc conc. (millions) | 19.1 | 14.8 | 34.9 | 28.9 | ||||||||
| Lead pounds – in lead conc. (millions) | 12.0 | 9.7 | 22.2 | 19.1 | ||||||||
| Gold ounces – in lead conc. (thousands) | 1.36 | 1.20 | 2.75 | 2.58 | ||||||||
| Silver equivalent ounces (millions)2 | 3.88 | 3.30 | 7.58 | 6.99 | ||||||||
| Co-product cash cost per ounce of payable silver equivalent1 | $ | 11.83 | $ | 12.72 | $ | 11.70 | $ | 11.49 | ||||
| By-product cash cost per ounce of payable silver1 | $ | 0.96 | $ | 7.10 | $ | 3.66 | $ | 4.66 | ||||
| Co-product AISC per ounce of payable silver equivalent1 | $ | 15.26 | $ | 17.55 | $ | 14.73 | $ | 14.94 | ||||
| By-product AISC per ounce of payable silver1 | $ | 6.57 | $ | 14.32 | $ | 8.42 | $ | 9.80 | ||||
| Sales volumes by payable metal | ||||||||||||
| Silver ounces (millions) | 2.03 | 1.81 | 4.27 | 4.03 | ||||||||
| Zinc pounds – in zinc conc. (millions) | 15.9 | 11.7 | 29.6 | 23.7 | ||||||||
| Lead pounds – in lead conc. (millions) | 11.0 | 9.0 | 21.0 | 17.9 | ||||||||
| Gold ounces – in lead conc. (thousands) | 0.97 | 0.93 | 2.15 | 2.06 | ||||||||
| Copper pounds – in lead conc. (millions) | 0.03 | — | 0.10 | — | ||||||||
| Average realized price by payable metal | ||||||||||||
| Average realized price per silver ounce4 | $ | 29.00 | $ | 24.11 | $ | 25.80 | $ | 25.48 | ||||
| Average realized price per zinc pound4 | $ | 1.53 | $ | 0.99 | $ | 1.32 | $ | 1.21 | ||||
| Average realized price per lead pound4 | $ | 0.96 | $ | 0.92 | $ | 0.91 | $ | 0.99 | ||||
| Average realized price per gold ounce4 | $ | 2,200 | $ | 1,817 | $ | 2,057 | $ | 1,801 | ||||
| Average realized price per copper pound4 | $ | 3.74 | $ | — | $ | 3.83 | $ | — | ||||
1 See Non-GAAP Financial Measures below
2 Totals may not add up due to rounding
3 Silver equivalent production for 2024 is calculated using prices of
4 Realized prices include the impact of final settlement adjustments from sales
Gatos Silver, Inc.
| Selected Financial Information (Unaudited) | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
| (in millions, except where otherwise stated) | 2024 | 2023 | 2024 | 2023 | ||||||||
| General and Administrative | $ | 7.9 | $ | 6.1 | $ | 14.8 | $ | 11.7 | ||||
| Total expenses | 7.9 | 6.1 | 14.9 | 11.8 | ||||||||
| Equity income in affiliates | 14.5 | 1.5 | 21.8 | 6.5 | ||||||||
| Other income, net | 2.7 | 1.1 | 5.0 | 2.5 | ||||||||
| Total net other income | 17.2 | 2.6 | 26.8 | 9.0 | ||||||||
| Net income (loss) and comprehensive income (loss)2 | $ | 9.2 | $ | (3.6 | ) | $ | 11.7 | $ | (2.8 | ) | ||
| Net income (loss) and comprehensive income (loss) per share (basic and diluted) | $ | 0.13 | $ | (0.05 | ) | $ | 0.17 | $ | (0.04 | ) | ||
| EBITDA1 | $ | 8.2 | $ | (3.5 | ) | $ | 10.0 | $ | (2.6 | ) | ||
| Cash provided (used) by operating activities | $ | 11.8 | $ | (3.8 | ) | $ | 26.9 | $ | (7.9 | ) | ||
| Free cash flow1 | $ | 11.8 | $ | (3.8 | ) | $ | 26.9 | $ | (7.9 | ) | ||
1 See Non-GAAP Financial Measures below
2 Totals may not add up due to rounding
2024 Guidance (CLG
Gatos Silver continues to expect plant throughput in 2024 to average in the top half of our previously announced guidance range of 3,000 and 3,300 tonnes processed per day and compares to 2,935 tonnes per day in 2023. Mine debottlenecking efforts are continuing to help achieve our medium-term target of sustaining 3,500 tonnes per day beyond 2024, or
We continue to expect both silver equivalent and silver production to be in the top half of our previously announced guidance ranges of 13.5 to 15.0 million ounces and 8.4 to 9.2 million ounces respectively for the full year in 2024, and full year co-product and by-product AISCs to remain in the lower half of our original guidance ranges of
Financial Results Webcast and Conference Call
Investors and analysts are invited to attend the financial results webcast and conference call as follows:
Date: Wednesday, August 7, 2024
Time: 11:00 a.m. ET
Listen-Only Webcast: https://events.q4inc.com/attendee/924567096
Direct Event Registration Link (for Analysts only): https://registrations.events/direct/Q4I98433134
An archive of the webcast will be available on the Company’s website at: https://gatossilver.com within 24 hours.
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
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.
Non-GAAP Financial Measures
We use certain measures that are not defined by GAAP to evaluate various aspects of our business. These non-GAAP financial measures are intended to provide additional information only and do not have any standardized meaning prescribed by GAAP and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. The measures are not necessarily indicative of operating profit or cash flow from operations as determined under GAAP.
Cash Costs and All-In Sustaining Costs
Cash costs and all-in sustaining costs (“AISC”) are non-GAAP measures. AISC was calculated based on guidance provided by the World Gold Council (“WGC”). WGC is not a regulatory industry organization and does not have the authority to develop accounting standards for disclosure requirements. Other mining companies may calculate AISC differently as a result of differences in underlying accounting principles and policies applied, as well as definitional differences of sustaining versus expansionary (i.e. non-sustaining) capital expenditures based upon each company’s internal policies. Current GAAP measures used in the mining industry, such as cost of sales, do not capture all of the expenditures incurred to discover, develop and sustain production. Therefore, we believe that cash costs and AISC are non-GAAP measures that provide additional information to management, investors and analysts that aid in the understanding of the economics of the Company’s operations and performance compared to other producers and provides investors visibility by better defining the total costs associated with production.
Cash costs include all direct and indirect operating cash costs related directly to the physical activities of producing metals, including mining, processing and other plant costs, treatment and refining costs, general and administrative costs, royalties and mining production taxes. AISC includes total production cash costs incurred at the LGJV’s mining operations plus sustaining capital expenditures. The Company believes this measure represents the total sustainable costs of producing silver from current operations and provides additional information of the LGJV’s operational performance and ability to generate cash flows. As the measure seeks to reflect the full cost of silver production from current operations, new project and expansionary capital at current operations are not included. Certain cash expenditures such as exploration, new project spending, tax payments, dividends, and financing costs are not included.
EBITDA
Management uses earnings before interest, income tax, depreciation, depletion and amortization (“EBITDA”) to evaluate the Company’s operating performance, to plan and forecast its operations, and assess leverage levels and liquidity measures. The Company believes the use of EBITDA reflects the underlying operating performance of our core mining business and allows investors and analysts to compare results of the Company to similar results of other mining companies. EBITDA do not represent, and should not be considered an alternative to, net income (loss) or cash flow from operations as determined under GAAP.
Free Cash Flow
Management uses free cash flow as a non-GAAP measure to analyze cash flows generated from operations. Free cash flow is cash provided by (used in) operating activities less cash flow from (used in) investing activities, as presented on the condensed consolidated statements of cash flows. The Company believes free cash flow is also useful as one of the bases for comparing the Company’s performance with its competitors. Although free cash flow and similar measures are frequently used as measures of cash flows generated from operations by other companies, the Company’s calculation of free cash flow is not necessarily comparable to such other similarly titled captions of other companies.
Reconciliation of GAAP to non-GAAP measures
The table below presents a reconciliation between the most comparable GAAP measure of the LGJV’s expenses to the non-GAAP measures of (i) cash costs, (ii) cash costs, net of by-product credits, (iii) co-product AISC and (iv) by-product AISC for our operations.
| CLG Financial | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
| (in thousands, except where otherwise stated) | 2024 | 2023 | 2024 | 2023 | ||||||||
| Expenses | $ | 59,180 | $ | 53,215 | $ | 116,193 | $ | 104,839 | ||||
| Depreciation, depletion and amortization | (20,821 | ) | (22,027 | ) | (41,077 | ) | (42,846 | ) | ||||
| Exploration1 | (1,601 | ) | (657 | ) | (2,972 | ) | (1,120 | ) | ||||
| Treatment and refining costs2 | 2,339 | 3,917 | 6,296 | 8,072 | ||||||||
| Cash costs (A) | $ | 39,097 | $ | 34,448 | $ | 78,440 | $ | 68,945 | ||||
| Sustaining capital3 | 11,357 | 13,100 | 20,301 | 20,742 | ||||||||
| Co-product AISC (B) | $ | 50,454 | $ | 47,548 | $ | 98,741 | $ | 89,687 | ||||
| By-product credits4 | (37,144 | ) | (21,574 | ) | (62,818 | ) | (50,161 | ) | ||||
| AISC, net of by-product credits (C) | $ | 13,310 | $ | 25,974 | $ | 35,923 | $ | 39,526 | ||||
| Cash costs, net of by-product credits (D) | $ | 1,953 | $ | 12,874 | $ | 15,622 | $ | 18,784 | ||||
| Payable ounces of silver equivalent5 (E) | 3,306 | 2,709 | 6,703 | 6,002 | ||||||||
| Co-product cash cost per ounce of payable silver equivalent (A/E) | $ | 11.83 | $ | 12.72 | $ | 11.70 | $ | 11.49 | ||||
| Co-product AISC per ounce of payable silver equivalent (B/E) | $ | 15.26 | $ | 17.55 | $ | 14.73 | $ | 14.94 | ||||
| Payable ounces of silver (F) | 2,025 | 1,814 | 4,268 | 4,033 | ||||||||
| By-product cash cost per ounce of payable silver (D/F) | $ | 0.96 | $ | 7.10 | $ | 3.66 | $ | 4.66 | ||||
| By-product AISC per ounce of payable silver (C/F) | $ | 6.57 | $ | 14.32 | $ | 8.42 | $ | 9.80 | ||||
1 Exploration costs are not related to current mining operations.
2 Represent reductions on customer invoices and are included in revenue of the LGJV combined statement of operations and comprehensive income.
3 Sustaining capital excludes resource development drilling costs related to resource development drilling of the South- East Deeps zone.
4 By-product credits reflect realized metal prices of zinc, lead and gold for the applicable period, which includes any final settlement adjustments from prior periods.
5 Silver equivalents utilize the average realized prices during the six months ended June 30, 2024, of
The following table provides a breakdown of cash flows used by investing activities of the LGJV and a reconciliation of sustaining capital and resource development drilling to that measure:
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||
| Cash flow used by investing activities | $ | 13,729 | $ | 14,626 | $ | 25,557 | $ | 25,992 | ||||
| Sustaining capital | 11,357 | 13,100 | 20,301 | 20,742 | ||||||||
| Resource development drilling | 1,885 | 4,041 | 5,107 | 7,047 | ||||||||
| Materials & supplies | — | 914 | — | 1,426 | ||||||||
| Change in capital-related accounts payable | 487 | (3,429 | ) | 149 | (3,223 | ) | ||||||
| Total | $ | 13,729 | $ | 14,626 | $ | 25,557 | $ | 25,992 | ||||
The table below reconciles EBITDA, a non-GAAP measure to net income (loss) and comprehensive income (loss) for the Company:
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||
| Net income (loss) and comprehensive income (loss) | $ | 9,156 | $ | (3,593 | ) | $ | 11,688 | $ | (2,758 | ) | ||
| Interest expense | — | 183 | — | 347 | ||||||||
| Interest income | (1,117 | ) | (126 | ) | (1,884 | ) | (287 | ) | ||||
| Income tax expense | 129 | — | 172 | — | ||||||||
| Depreciation, depletion and amortization | 3 | 34 | 7 | 71 | ||||||||
| EBITDA | $ | 8,171 | $ | (3,502 | ) | $ | 9,983 | $ | (2,627 | ) | ||
The table below reconciles of EBITDA, a non-GAAP measure, to the LGJV’s net income and comprehensive income:
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||
| Net income and comprehensive income | $ | 20,487 | $ | 746 | $ | 30,659 | $ | 13,447 | ||||
| Interest expense | 554 | 15 | 749 | 141 | ||||||||
| Interest income | (270 | ) | (555 | ) | (543 | ) | (555 | ) | ||||
| Income tax expense | 12,544 | 4,741 | 17,319 | 10,698 | ||||||||
| Depreciation, depletion and amortization | 20,821 | 22,027 | 41,077 | 42,846 | ||||||||
| EBITDA | $ | 54,136 | $ | 26,974 | $ | 89,261 | $ | 66,577 | ||||
The following table sets forth a reconciliation of free cash flow, a non-GAAP financial measure, to net cash provided (used) by operating activities operating activities for the Company, which the Company believes to be the GAAP financial measure most directly comparable to free cash flow.
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||
| Net cash provided (used) by operating activities | $ | 11,799 | $ | (3,762 | ) | $ | 26,935 | $ | (7,865 | ) | ||
| Net cash used by investing activities | — | — | — | — | ||||||||
| Free cash flow | $ | 11,799 | $ | (3,762 | ) | $ | 26,935 | $ | (7,865 | ) | ||
The following table sets forth a reconciliation of free cash flow, a non-GAAP financial measure, to net cash provided by operating activities for the LGJV.
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
| (in thousands) | 2024 | 2023 | 2024 | 2023 | ||||||||
| Net cash provided by operating activities | $ | 54,483 | $ | 34,321 | $ | 91,808 | $ | 74,365 | ||||
| Net cash used by investing activities | (13,729 | ) | (14,626 | ) | (25,557 | ) | (25,992 | ) | ||||
| Free cash flow | $ | 40,754 | $ | 19,695 | $ | 66,251 | $ | 48,373 | ||||
Please see Appendix A for the unaudited condensed consolidated balance sheets of the Company and the LGJV as of June 30, 2024 and December 31, 2023, the related unaudited condensed consolidated statements of income (loss) and comprehensive income (loss) of the Company, unaudited combined statements of operations and comprehensive income of the LGJV for the three and six months ended June 30, 2024 and 2023, and unaudited statements of cash flows for the six months ended June 30, 2024 and 2023.
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 prospective exploration, timing of an updated life of mine plan, guidance for 2024 including processing rates, production and AISC 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
APPENDIX A
GATOS SILVER, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
| June 30, | December 31, | ||||||
| (US$ in thousands) | 2024 | 2023 | |||||
| ASSETS | |||||||
| Current Assets | |||||||
| Cash and cash equivalents | $ | 82,476 | $ | 55,484 | |||
| Related party receivables | 155 | 560 | |||||
| Other current assets | 1,593 | 22,642 | |||||
| Total current assets | 84,224 | 78,686 | |||||
| Non-Current Assets | |||||||
| Investment in affiliates | 305,228 | 321,914 | |||||
| Deferred tax assets | 200 | 266 | |||||
| Other non-current assets | 382 | 38 | |||||
| Total Assets | $ | 390,034 | $ | 400,904 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| Current Liabilities | |||||||
| Accounts payable and other accrued liabilities | $ | 8,938 | $ | 33,357 | |||
| Non-Current Liabilities | |||||||
| Lease liability | 218 | — | |||||
| Stockholders’ Equity | |||||||
| Common Stock, | 117 | 117 | |||||
| Paid-in capital | 554,962 | 553,319 | |||||
| Accumulated deficit | (174,201 | ) | (185,889 | ) | |||
| Total stockholders’ equity | 380,878 | 367,547 | |||||
| Total Liabilities and Stockholders’ Equity | $ | 390,034 | $ | 400,904 | |||
GATOS SILVER, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS)
(UNAUDITED)
| (US$ in thousands, except for share data) | Three Months Ended June 30, | Six months ended June 30, | |||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| Expenses | |||||||||||||||
| Exploration | $ | 44 | $ | — | $ | 75 | $ | 26 | |||||||
| General and administrative | 7,872 | 6,127 | 14,835 | 11,663 | |||||||||||
| Amortization | 3 | 34 | 7 | 71 | |||||||||||
| Total expenses | 7,919 | 6,161 | 14,917 | 11,760 | |||||||||||
| Other income | |||||||||||||||
| Equity income in affiliates | 14,526 | 1,474 | 21,814 | 6,485 | |||||||||||
| Interest expense | — | (183 | ) | — | (347 | ) | |||||||||
| Interest income | 1,117 | 126 | 1,884 | 287 | |||||||||||
| Other income | 1,561 | 1,151 | 3,079 | 2,577 | |||||||||||
| Other income | 17,204 | 2,568 | 26,777 | 9,002 | |||||||||||
| Income (loss) before taxes | 9,285 | (3,593 | ) | 11,860 | (2,758 | ) | |||||||||
| Income tax expense | 129 | — | 172 | — | |||||||||||
| Net income (loss) and comprehensive income (loss) | $ | 9,156 | $ | (3,593 | ) | $ | 11,688 | $ | (2,758 | ) | |||||
| Net income (loss) per share: | |||||||||||||||
| Basic and diluted | $ | 0.13 | $ | (0.05 | ) | $ | 0.17 | $ | (0.04 | ) | |||||
| Weighted average shares outstanding: | |||||||||||||||
| Basic | 69,217,512 | 69,162,223 | 69,199,280 | 69,162,223 | |||||||||||
| Diluted | 71,096,361 | 69,162,223 | 70,793,043 | 69,162,223 | |||||||||||
GATOS SILVER, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
| Six months ended June 30, | |||||||
| (US$ in thousands) | 2024 | 2023 | |||||
| OPERATING ACTIVITIES | |||||||
| Net income (loss) and comprehensive income (loss) | $ | 11,688 | $ | (2,758 | ) | ||
| Adjustments to reconcile net income to net cash provided (used) by operating activities: | |||||||
| Amortization | 7 | 71 | |||||
| Stock-based compensation expense | 3,295 | 1,205 | |||||
| Equity income in affiliates | (21,814 | ) | (6,485 | ) | |||
| Deferred tax recovery | 57 | — | |||||
| Other | 60 | — | |||||
| Distributions received from affiliate | 38,500 | — | |||||
| Changes in operating assets and liabilities: | |||||||
| Receivables from related‑parties | 405 | (389 | ) | ||||
| Accounts payable and other accrued liabilities | (26,338 | ) | (648 | ) | |||
| Other current assets | 21,075 | 1,139 | |||||
| Net cash provided (used) by operating activities | 26,935 | (7,865 | ) | ||||
| INVESTING ACTIVITIES | |||||||
| Net cash used by investing activities | — | — | |||||
| FINANCING ACTIVITIES | |||||||
| Proceeds from exercise of stock options | 111 | — | |||||
| Lease payments | (54 | ) | — | ||||
| Net cash used by financing activities | (57 | ) | — | ||||
| Net increase (decrease) in cash and cash equivalents | 26,992 | (7,865 | ) | ||||
| Cash and cash equivalents, beginning of period | 55,484 | 17,004 | |||||
| Cash and cash equivalents, end of period | $ | 82,476 | $ | 9,139 | |||
| Interest paid | $ | 11 | $ | 364 | |||
| Interest earned | $ | 1,884 | $ | 287 | |||
LOS GATOS JOINT VENTURE
COMBINED BALANCE SHEETS
(UNAUDITED)
| June 30, | December 31, | ||||||
| (US$ in thousands) | 2024 | 2023 | |||||
| ASSETS | |||||||
| Current Assets | |||||||
| Cash and cash equivalents | $ | 45,523 | $ | 34,303 | |||
| Receivables | 12,559 | 12,634 | |||||
| Inventories | 15,782 | 16,397 | |||||
| VAT receivable | 12,781 | 12,610 | |||||
| Income tax receivable | 13,580 | 20,185 | |||||
| Other current assets | 2,652 | 1,253 | |||||
| Total current assets | 102,877 | 97,382 | |||||
| Non-Current Assets | |||||||
| Mine development, net | 231,138 | 234,980 | |||||
| Property, plant and equipment, net | 161,171 | 171,965 | |||||
| Deferred tax assets | 2,783 | 9,568 | |||||
| Total non-current assets | 395,092 | 416,513 | |||||
| Total Assets | $ | 497,969 | $ | 513,895 | |||
| LIABILITIES AND OWNERS’ CAPITAL | |||||||
| Current Liabilities | |||||||
| Accounts payable and accrued liabilities | $ | 47,293 | $ | 38,704 | |||
| Related party payable | 192 | 560 | |||||
| Total current liabilities | 47,485 | 39,264 | |||||
| Non-Current Liabilities | |||||||
| Lease liability | 172 | 208 | |||||
| Asset retirement obligation | 12,027 | 11,593 | |||||
| Deferred tax liabilities | 3,681 | 3,885 | |||||
| Total non-current liabilities | 15,880 | 15,686 | |||||
| Owners’ Capital | |||||||
| Capital contributions | 400,638 | 455,638 | |||||
| Paid-in capital | 18,186 | 18,186 | |||||
| Retained earnings (accumulated deficit) | 15,780 | (14,879 | ) | ||||
| Total owners’ capital | 434,604 | 458,945 | |||||
| Total Liabilities and Owners’ Capital | $ | 497,969 | $ | 513,895 | |||
LOS GATOS JOINT VENTURE
COMBINED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(UNAUDITED)
| Three months ended June 30, | Six months ended June 30, | ||||||||||||||
| (US$ in thousands) | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Revenue | $ | 94,198 | $ | 58,259 | $ | 166,416 | $ | 128,124 | |||||||
| Expenses | |||||||||||||||
| Cost of sales | 31,956 | 25,821 | 62,727 | 51,809 | |||||||||||
| Royalties and duties | 713 | 308 | 1,043 | 726 | |||||||||||
| Exploration | 1,601 | 657 | 2,972 | 1,120 | |||||||||||
| General and administrative | 4,089 | 4,402 | 8,374 | 8,338 | |||||||||||
| Depreciation, depletion and amortization | 20,821 | 22,027 | 41,077 | 42,846 | |||||||||||
| Total expenses | 59,180 | 53,215 | 116,193 | 104,839 | |||||||||||
| Other expense (income) | |||||||||||||||
| Accretion expense | 218 | 296 | 435 | 593 | |||||||||||
| Interest expense | 554 | 15 | 749 | 141 | |||||||||||
| Interest income | (270 | ) | (555 | ) | (543 | ) | (555 | ) | |||||||
| Other expense | 653 | 43 | 648 | 31 | |||||||||||
| Foreign exchange loss (gain) | 832 | (242 | ) | 956 | (1,070 | ) | |||||||||
| 1,987 | (443 | ) | 2,245 | (860 | ) | ||||||||||
| Income before taxes | 33,031 | 5,487 | 47,978 | 24,145 | |||||||||||
| Income tax expense | 12,544 | 4,741 | 17,319 | 10,698 | |||||||||||
| Net income and comprehensive income | $ | 20,487 | $ | 746 | $ | 30,659 | $ | 13,447 | |||||||
LOS GATOS JOINT VENTURE
COMBINED STATEMENTS OF CASH FLOWS
(UNAUDITED)
| Six months ended June 30, | |||||||
| (US$ in thousands) | 2024 | 2023 | |||||
| Cash flows from operating activities: | |||||||
| Net income and comprehensive income | $ | 30,659 | $ | 13,447 | |||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
| Depreciation, depletion and amortization | 41,077 | 42,846 | |||||
| Accretion | 435 | 593 | |||||
| Deferred taxes | 6,691 | 5,453 | |||||
| Unrealized gain on foreign currency rate change | 1,016 | (55 | ) | ||||
| Other | — | (7 | ) | ||||
| Changes in operating assets and liabilities: | |||||||
| VAT receivable | (442 | ) | 5,828 | ||||
| Receivables | 75 | 20,910 | |||||
| Inventories | 178 | (400 | ) | ||||
| Other current assets | (1,404 | ) | (1,281 | ) | |||
| Income tax receivable | 4,912 | (2,459 | ) | ||||
| Accounts payable and other accrued liabilities | 8,978 | (10,884 | ) | ||||
| Payables to related parties | (367 | ) | 374 | ||||
| Net cash provided by operating activities | 91,808 | 74,365 | |||||
| Cash flows from investing activities: | |||||||
| Mine development | (21,071 | ) | (18,597 | ) | |||
| Purchase of property, plant and equipment | (4,486 | ) | (8,718 | ) | |||
| Materials and supplies inventory | — | 1,323 | |||||
| Net cash used by investing activities | (25,557 | ) | (25,992 | ) | |||
| Cash flows from financing activities: | |||||||
| Equipment loan and lease payments | (31 | ) | (503 | ) | |||
| Capital distributions | (55,000 | ) | — | ||||
| Net cash used by financing activities | (55,031 | ) | (503 | ) | |||
| Net Increase in cash and cash equivalents | 11,220 | 47,870 | |||||
| Cash and cash equivalents, beginning of period | 34,303 | 34,936 | |||||
| Cash and cash equivalents, end of period | $ | 45,523 | $ | 82,806 | |||
| Interest paid | $ | 419 | $ | 132 | |||
| Interest earned | $ | 543 | $ | 555 | |||
FAQ
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