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Gatos Silver Inc. (GATO0.00%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing an increase in net income to $9.9 million from $3.3 million in the same quarter the previous year. This increase is attributed to higher equity income from affiliates and increased interest income.
General and administrative expenses for the quarter were $10.4 million, up from $7.5 million in the previous year. The increase is primarily due to costs related to a strategic review resulting in a proposed merger with First Majestic Silver Corp. (AG-3.65%)
Net cash provided by operating activities was $34.2 million, compared to $33.3 million in the same period last year. The company reported free cash flow of $34.2 million for the quarter.
The Los Gatos Joint Venture (LGJV) produced 2.42 million ounces of silver, 11.4 million pounds of lead, and 16.5 million pounds of zinc for the quarter, with revenue increasing by 40% to $93.8 million.
Cost of sales for the LGJV was $31.2 million, slightly down from $31.4 million in the previous year. Co-product all-in-sustaining cost per ounce of payable silver equivalent decreased to $16.13.
The company announced an updated mineral reserve and resource estimate for the Cerro Los Gatos mine, extending the mine life to October 2032 and increasing the mineral reserve estimate.
A merger agreement was entered with First Majestic Silver Corp. on September 5, 2024, under which Gatos Silver stockholders will receive 2.55 First Majestic common shares for each Gatos Silver share.
The company identified material weaknesses in its internal controls over financial reporting, consistent with disclosures in its 2023 10-K.
The filing also details legal proceedings, including the settlement of U.S. and Canadian class action lawsuits related to false and misleading statements regarding mineral resources and reserves.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Gatos Silver Inc. quarterly 10-Q report dated November 12, 2024. To report an error, please email earnings@qz.com.