Gatos posts record silver production in Q4 2021, beats annual guidance
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The company said that its silver production in Q4 was 2.3 million ounces, an increase of 35% compared to Q3, primarily due to higher mined silver ore grades as well as higher throughput and recoveries. Lead and zinc production in Q4 were slightly below Q3 levels, due to lower mined lead and zinc ore grades.
Gatos added that CLG's 2021 silver production of 7.6 million ounces exceeded the company's guidance of 7.4 million ounces and was 81% higher compared to 2020 (4.2 million ounces).
The company's 2021 zinc and lead production of 50 million and 40 million pounds, respectively, were both consistent with its 2021 guidance range.
Importantly, the company said that due to record 2021 production, and elimination of debt service requirements by the early retirement of the Los Gatos Joint Venture working capital facility and term loan during 2021, the LGJV had over $20 million of cash at December 31, 2021.
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CEO Stephen Orr added, "CLG's record performance in Q4 reflects the progressive enhancements to processing and mining productivity throughout 2021, which had a compounding effect that contributed to the outstanding Q4 performance. The CLG operation is now positioned for further production improvement initiatives and cost reduction in 2022."
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 LGJV, the company recently built and commissioned its first operating mine and mineral processing plant at the LGJV's CLG deposit.