Gatos Silver Reports Q2 2024 Production Results With Record Mill Throughput And Zinc Production; Silver Equivalent Production For Q2 2024 Was 3.88M Ounces, 18% Higher YoY
Gatos Silver, Inc. (TSX:GATO) ("Gatos Silver" or the "Company") today announced production results for the quarter and six months ended June 30, 2024 at its 70%-owned Cerro Los Gatos ("CLG") mine in Mexico.
Dale Andres, CEO of Gatos Silver, commented: "In the second quarter of 2024 the CLG mine delivered strong operational results, with record zinc production and the sixth consecutive quarterly record for mill throughput. Silver equivalent production for the quarter was 3.88 million ounces, an increase of 18% from the second quarter of 2023, and we continue to track at the top end of 2024 guidance."
"Our mine debottlenecking efforts delivered a mill throughput average of 3,240 tonnes per day, up 1% from the first quarter of 2024 and up 11% from the second quarter of 2023, as we advanced towards our medium-term target of sustained throughput rates of 3,500 tonnes per day. We expect to complete an updated life of mine plan in the third quarter of 2024 with a target to further extend the mine life. We also increased exploration drilling efforts during the second quarter on both near mine targets and at the San Luis prospect located five kilometers from the CLG mine."
Production Results (100% basis)
CLG comparative production highlights are summarized below:
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||
| CLG Production (100% Basis) | 2024 | 2023 | 2024 | 2023 | ||||
| Tonnes milled (dmt) | 294,869 | 265,342 | 586,983 | 525,770 | ||||
| Tonnes milled per day (dmt) | 3,240 | 2,916 | 3,225 | 2,905 | ||||
| Feed Grades | ||||||||
| Silver (g/t) | 273 | 265 | 279 | 296 | ||||
| Zinc (%) | 4.55 | 4.00 | 4.27 | 3.96 | ||||
| Lead (%) | 2.06 | 1.85 | 1.92 | 1.86 | ||||
| Gold (g/t) | 0.29 | 0.26 | 0.29 | 0.28 | ||||
| Contained Metal | ||||||||
| Silver ounces (millions) | 2.30 | 2.00 | 4.67 | 4.43 | ||||
| Zinc pounds - in zinc conc. (millions) | 19.1 | 14.8 | 34.9 | 28.9 | ||||
| Lead pounds - in lead conc. (millions) | 12.0 | 9.7 | 22.2 | 19.1 | ||||
| Gold ounces - in lead conc. (thousands) | 1.36 | 1.20 | 2.75 | 2.58 | ||||
| Silver Equivalent ounces (millions)1 | 3.88 | 3.30 | 7.58 | 6.99 | ||||
| Recoveries | ||||||||
| Silver - in both lead and zinc concentrates | 88.9% | 88.6% | 88.9% | 88.4% | ||||
| Zinc - in zinc concentrate | 64.6% | 63.5% | 63.1% | 62.8% | ||||
| Lead - in lead concentrate | 89.5% | 89.1% | 89.4% | 88.9% | ||||
| Gold - in lead concentrate | 48.8% | 53.9% | 50.4% | 54.7% | ||||
1 For 2024, silver equivalent production is calculated using prices of $23/oz silver, $1.20/lb zinc, $0.90/lb lead and $1,800/oz gold to "convert" zinc, lead and gold production contained in concentrate to "equivalent" silver ounces (contained metal, multiplied by price, divided by silver price). For 2023, silver equivalent production was calculated using prices of $22/oz silver, $1.20/lb zinc, $0.90/lb lead and $1,700/oz gold. For comparative purposes, the calculated silver equivalent production for the three and six months ended June 30, 2023 would be 3.24 million ounces and 6.89 million ounces, respectively, using price assumptions for 2024.
Silver equivalent1 production for the second quarter of 2024 was 3.88 million ounces, 18% higher than the second quarter of 2023. Silver production was 2.30 million ounces, 15% higher than the comparable quarter of 2023. Zinc production increased by 29% compared with the second quarter of 2023 as a result of higher throughput, higher grades and higher recovery resulting in a record quarterly production of 19.1 million pounds. Lead production and gold production increased by 24% and 14%, respectively, compared with the second quarter of 2023 due to higher throughput and grades. We continue to expect both silver equivalent and silver production to be in the top half of our previously announced guidance ranges of 13.5 to 15.0 million ounces and 8.4 to 9.2 million ounces respectively for the full year in 2024.