First Majestic Silver (AG) - 2025 Q1 - Quarterly Report

Financial Performance - Net income for Gatos Silver in 2024 was $39,460,000, a significant increase from $12,860,000 in 2023, reflecting a growth of 207%[34] - The Company reported total income from operations before income taxes of $39,975 for the year ended December 31, 2024, compared to $12,974 for 2023, representing a year-over-year increase of approximately 208%[104] - Net income for 2024 was $91.32 million, representing a 70.8% increase compared to $53.44 million in 2023[121] - The LGJV's net income and comprehensive income attributable to the Company for 2024 was $63,928, compared to $37,411 in 2023, indicating a significant increase of approximately 71%[114] - The net loss for the year ended December 31, 2024, is reported at $560,781,000[166] Revenue and Expenses - Total revenue for 2024 increased to $352.91 million, up 31.4% from $268.67 million in 2023[121] - Total expenses increased to $35,582,000 in 2024 from $25,793,000 in 2023, marking a rise of 38%[34] - Total expenses for 2024 were $223.34 million, an increase of 7% from $208.68 million in 2023[121] - The company incurred a cost of sales of $122,425,000 and exploration expenses of $7,249,000[161] - The total revenue for the year ended December 31, 2024, is reported at $352,910,000, with total expenses amounting to $479,754,000[161] Assets and Liabilities - The total assets of Gatos Silver rose to $422,571,000 in 2024, up from $400,904,000 in 2023, indicating a growth of approximately 5.3%[32] - Total current assets decreased to $82.79 million in 2024 from $97.38 million in 2023, a decline of 15%[120] - Total liabilities increased to $55.02 million in 2024, up 40% from $39.26 million in 2023[120] - The total assets as of December 31, 2024, amount to $1,817,633,000, with total liabilities of $367,553,000[168] Cash Flow - Gatos Silver's cash and cash equivalents increased to $138,061,000 in 2024 from $55,484,000 in 2023, representing a 148% increase[32] - The company reported net cash provided by operating activities of $80,701,000 in 2024, up from $47,480,000 in 2023, representing a growth of 69.9%[38] - Cash and cash equivalents at the end of 2024 were $35.83 million, a slight increase from $34.30 million in 2023[123] - Cash and cash equivalents are reported at $173,887,000, with receivables at $8,374,000 and inventories at $21,936,000[158] Stockholder Equity - Gatos Silver's stockholders' equity improved to $412,707,000 in 2024 from $367,547,000 in 2023, showing an increase of 12.3%[32] - Total stockholders' equity is reported at $412,707,400, with common stock at $118,000 and paid-in capital at $559,018,000[160] - The total stockholders' equity is reported at $1,450,080,000[168] Stock Options and Compensation - Total stock-based compensation for 2024 was $6,152 million, an increase of 15.3% from $5,336 million in 2023[71] - The company granted 938,822 stock options in 2024 with a weighted-average grant-date fair value of $4.17 per share, compared to 1,266,745 stock options in 2023 at $2.91 per share[73] - The company recognized a cash payout of $1,013 million for Performance Share Units (PSUs) settled on December 20, 2024, representing a 167% payout based on performance metrics[77] - The number of Restricted Stock Units (RSUs) outstanding increased to 1,087,023 by December 31, 2024, with an average price of $6.96 per share[79] Mergers and Acquisitions - The Company has entered into a Merger Agreement with First Majestic Silver Corp., where stockholders will receive 2.55 shares of First Majestic for each share of Gatos Silver[45] - Following the merger, the Company's stockholders will own approximately 38% of the outstanding First Majestic common shares[47] - The acquisition of Gatos by First Majestic was completed on January 16, 2025, with a total of 177,433,006 common shares issued[132] - The total purchase price for the acquisition of Gatos is $1,054,223,000, based on the issuance of 177,433,006 common shares[150] Tax and Deferred Tax - The consolidated income tax expense for the year ended December 31, 2024, was $516, compared to $114 for 2023, reflecting an increase of approximately 354%[104] - The Company recorded a valuation allowance against deferred tax assets of $30,482 and $38,672 for the years ended December 31, 2024 and 2023, respectively[109] - The deferred tax liabilities are recorded at $369,986,000, reflecting significant tax obligations[136] Other Financial Metrics - The Company incurred no interest expense for the year ended December 31, 2024, while it recognized interest expense of $679 and paid $413 in interest for the year ended December 31, 2023[102] - Interest income for the year is $6,360,000, while interest expense totals $939,000[161] - The estimated fee payable to financial advisors in connection with the merger is $19.6 million[93]