Gatos Silver Files Financial Results For The First Three Quarters Of 2022 And Announces Investor Conference Call For 2022 Year-End Results; Net Income For First Three Months Ended September 30, 2022 $0.26/Share; Revenue $218.7M Up 23% YoY

Author: Happy Mohamed | March 30, 2023 10:01am

Gatos Silver, Inc. (TSX:GATO) ("Gatos Silver" or the "Company") today filed its quarterly reports on Forms 10-Q for the quarters ended March 31, June 30, and September 30, 2022, which include its unaudited condensed consolidated financial statements for such periods. The 10-Qs were filed on both the EDGAR and SEDAR systems and are posted on the Gatos Silver website at https://gatossilver.com.

The Company expects that it will file its annual report on Form 10-K for the year ended December 31, 2022, on March 30, 2023, after markets close, which will include its financial results and its audited consolidated financial statements for the period.

The Company plans to host an investor and analyst call on March 31, 2023, details of which are provided below.

As previously disclosed, the unaudited condensed consolidated financial statements for the first three quarters of 2022 were delayed following Gatos Silver's January 25, 2022, announcement of errors in the 2020 Technical Report that ultimately resulted in a reduction in the metal content of its previously estimated mineral reserves. With the filing of the Form 10-Qs for the first three quarters of 2022, Gatos Silver is current on its U.S. and Canadian securities regulatory filing requirements. The Company has, therefore, requested the Ontario Securities Commission to revoke the related Management Cease Trade Orders.

Gatos Silver's net income for the nine months ended September 30, 2022, was $18.3 million1 or $0.26 per basic and diluted share compared with a year-earlier net loss of $3.1 million or $0.05 per basic and diluted share. The improvement in net income was primarily due to an increase in revenue for the 70%-owned Los Gatos Joint Venture ("LGJV") driven by strong production. Production results for the nine months ended September 30, 2022, were disclosed on October 11, 2022.

In summary, the LGJV achieved the following results for the nine months ended September 30, 2022, compared with the same period a year earlier (100% basis):

• Revenue of $218.7 million, up 23% from $178.3 million
• Cost of sales of $81.6 million, up 16% from $70.3 million
• Net income of $53.0 million, up 27% from $41.7 million
• Cash flow from operations of $118.3 million, up 39% from $85.0 million
• By-product cash cost2 of $1.24 per payable ounce of silver, down 77% from $5.48
• By-product AISC2 of $9.50 per ounce of payable silver, down 42% from $16.33

For additional details please see the Company's quarterly filings on the Company's website, or on EDGAR and SEDAR.

The Company remains well-positioned to achieve its guidance and disclosed plans for 2023, including the further optimization of the Cerro Los Gatos ("CLG") operation, advancing mine life extension opportunities, accelerating the drilling on the mineralization recently discovered at depth in the new South-East Deeps zone, and continuing exploration of the highly prospective Los Gatos district.

Posted In: GATO TSX:GATO