Gatos Silver, Inc. - GATO STOCK NEWS

Gatos Silver (NYSE/TSX: GATO) announced a delay in filing its Annual Report on Form 10-K and received a notice from the Toronto Stock Exchange regarding a review of its continued listing eligibility. The TSX initiated a Remedial Review Process, granting the Company 120 days to meet listing requirements. Should Gatos Silver fail to comply by August 18, 2023, it faces potential delisting within 30 days. Meanwhile, the Company is working to file its 2022 Form 10-K and restatements of financial statements for previous quarters. Gatos Silver focuses on silver and zinc exploration, holding a 70% stake in the Los Gatos Joint Venture, which covers approximately 103,087 hectares of mineral rights in Mexico.

Gatos Silver (NYSE/TSX: GATO) announced a Q1 2023 update highlighting significant drilling results in the Los Gatos district, Mexico. The company reported high-grade intercepts which indicate robust potential for extending the life of its 70%-owned Cerro Los Gatos (CLG) mine. Notable results include intercepts of 596 g/t silver and 9.75% zinc in the NW zone and 411 g/t silver and 9.29% lead in the SE zone. The ongoing resource conversion and expansion drilling aim to support an updated mineral reserve, expected in Q3 2023. The company also mentioned new high-priority targets and the commencement of follow-up drilling at the Mamba target. The drill results demonstrate strong potential for both new and existing resource areas.

Gatos Silver (NYSE/TSX: GATO) announced on April 18, 2023, a delay in filing its Annual Report on Form 10-K for 2022. The New York Stock Exchange notified the company of non-compliance due to the late filing, initiating a six-month monitoring period for the company's status. During this period, Gatos Silver will continue trading on the NYSE, provided it meets other listing requirements. The company has requested an extension for filing the report with the Toronto Stock Exchange as well. Additionally, Gatos Silver is working to restate previously issued financial statements from 2021 and 2022. The company operates primarily in the Los Gatos Joint Venture, focusing on silver and zinc-rich mineral resources in Mexico.

Gatos Silver (GATO) announced a delay in filing its 2022 Form 10-K and restating its financial statements for prior periods due to ongoing analysis of net deferred tax assets and liabilities related to its 70%-owned Los Gatos Joint Venture. Initially expected by April 17, the filings will take longer than anticipated. The adjustments are considered non-cash and will not impact the company's strong cash position. An extension until May 15, 2023, has been granted for fulfilling financial statements under its credit agreement. Additionally, the Annual Meeting of Stockholders scheduled for May 31, 2023, has been postponed until after the Securities Filings are complete.

Gatos Silver (GATO) provided a bi-weekly default status report on April 14, 2023, addressing delays in filing financial reports due to internal control weaknesses. The company filed its 2021 Annual Report on March 20, 2023, and the 2022 Quarterly Reports on March 30, 2023. However, it announced a delay in the 2022 Annual Report, initially due by March 31, 2023. Gatos Silver acknowledged material weaknesses in reporting controls and engaged a third-party expert to improve its internal control environment. Investors were informed that no material changes occurred since the last Notice, and they expect updates on filings and the annual shareholders’ meeting later this year. The management cease trade orders remain active while the company works on compliance with financial reporting requirements.

Gatos Silver announced its first quarter production results for 2023, highlighting a record mill throughput at its 70%-owned Cerro Los Gatos mine in Mexico. The company reported silver production of 2.43 million ounces, a 2% increase year-over-year, attributed to improved mill throughput, which averaged 2,894 tonnes per day, marking an 11% rise. Zinc production also rose by 2%, while lead production fell by 8%. The company anticipates higher silver output in the first half of 2023, offset by expected grade reductions later. Gatos Silver is focusing on debottlenecking and optimization efforts to enhance productivity and operational flexibility. The construction of the zinc concentrate leach plant is on track for commissioning in Q2 2023.

Gatos Silver (GATO) announced a bi-weekly default status report on March 31, 2023, regarding delays in filing financial documents, including the 2022 Annual Report. The company has faced ongoing issues with internal controls over financial reporting, identifying material weaknesses that could affect its financial statements. The company filed several delayed reports on March 20 and March 30, 2023, and plans to amend prior filings by April 17, 2023. Gatos Silver continues to work on these issues while maintaining compliance with regulatory requirements. A management cease trade order remains in effect, and the company has engaged a third-party expert to improve its internal controls.

Gatos Silver (GATO) reported a delay in filing its Annual Report on Form 10-K for 2022, alongside plans to restate financial statements for 2021 and parts of 2022. The adjustments, primarily related to net deferred tax assets at the Los Gatos Joint Venture, are expected to lower net income for the nine months ending September 30, 2022, by approximately $4 to $6 million from the previously reported $18.3 million. Restatements will not impact the company’s cash balances or production guidance for 2023. The company acknowledged a material weakness in internal controls regarding income tax reporting.