Gatos Silver cuts net loss tenfold as sales jump in first quarter
(Kitco News) - Gatos Silver (NYSE: GATO; TSX: GATO) announced Friday that during the quarter, the Cerro Los Gatos mine in Mexico recovered 1.5 million ounces of silver, 1.1 thousand ounces of gold, 7.6 million pounds of lead and 8.6 million pounds of zinc at an all-in sustaining cost, net of by-product credits, of $19.76/Ag oz. Sales revenue of the Los Gatos joint venture in Q1 2021 was $46.3 million compared to $18.9 million in Q1 2020.
The company's net loss for Q1 2021 was $1.6 million ($0.03 per share) compared to $16 million ($0.40 per share) in the first quarter of 2020 from continuing operations. The company said that the improved results were primarily due to substantial improvement in the profitability of the Los Gatos joint venture, in which Gatos Silver holds a 70% interest, partially offset by higher public company costs related to increased G&A compensation, insurance, consulting expenses, and increased stock-based compensation expense.
CEO Stephen Orr commented, "Q1 established a strong foundation for 2021 operations. The CLG project provided record revenue for the LGJV and the mine operated at its designed 2,500 tpd throughput for each operating day. So far, in the second quarter of 2021, the CLG project is performing above expectation as development during Q1 allowed CLG to access higher grade ore zones, yielding above budget metal production and revenue."
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. The company recently built and commissioned its first operating mine and mineral processing plant at the Cerro Los Gatos deposit.