Gatos Silver delivers record silver production in Q2, boosts net income
(Kitco News) - Gatos Silver (NYSE:GATO;TSX: GATO) today reported that the company produced a quarterly record of 2.1 million ounces of silver from the Cerro Los Gatos mine in Mexico, as well as record production of lead (11.2 million pounds) and zinc (14.5 million pounds) based on record throughput and recoveries.
The company added that its net income for Q2 2021 was $13.5 million, or $0.23 per share, compared to a net loss of ($10.6) million, or ($0.26) per share, in the second quarter of 2020. The improved net income, compared to the same period in 2020, was primarily due to substantial improvement in the profitability of the Los Gatos Joint Venture, partially offset by higher public company costs related to increased compensation, insurance, consulting expenses, and increased stock-based compensation expense.
CEO Stephen Orr stated, "We are extremely pleased with Gatos Silver's performance improvement during the first half of 2021. Q2 was a record quarter on many financial and operational fronts, with Cerro Los Gatos achieving record tonnes, recoveries, metal production and revenue. Through the first half of 2021, we improved production consistency while progressing strategic infrastructure initiatives and exploration drilling programs."
"These efforts will continue into the second half of 2021 and, together with improved financial flexibility achieved through the recent debt repayment, should further expand Cerro Los Gatos's potential and enhance long-term value for our shareholders," added Orr.
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 70%-owner of the Los Gatos Joint Venture, the company recently built and commissioned its first operating mine and mineral processing plant at the Los Gatos Joint Venture's Cerro Los Gatos deposit.