Gatos Silver Reports Q2 2024 Production Results With Record Mill Throughput and Zinc Production

Production Performance - The company achieved a mill throughput average of 3,240 tonnes per day in Q2 2024, up 1% from Q1 2024 and 11% from Q2 2023, moving closer to the medium-term target of 3,500 tonnes per day [3] - Silver equivalent production in Q2 2024 was 3.88 million ounces, an 18% increase from Q2 2023 [4] - Silver production reached 2.30 million ounces in Q2 2024, a 15% increase from Q2 2023 [4] - Zinc production hit a record 19.1 million pounds in Q2 2024, a 29% increase from Q2 2023 due to higher throughput, grades, and recovery [4] - Lead and gold production increased by 24% and 14% respectively in Q2 2024 compared to Q2 2023 [4] Financial Position - As of June 30, 2024, the company reported cash and cash equivalents of $82.5 million, while the Los Gatos Joint Venture (LGJV) held $45.5 million [6] Operational Developments - The company is working on an updated life of mine plan, expected to be completed in Q3 2024, with a target to further extend the mine life [3] - Exploration drilling efforts increased in Q2 2024, focusing on near-mine targets and the San Luis prospect located 5 kilometers from the CLG mine [3] - The processing plant is reliably performing above 3,500 tonnes per operating day with no reduction in metallurgical recoveries [15] - The company is implementing optimization and improvement projects across maintenance and mine operation functions to increase daily production rates over the next 6 to 12 months [15] Company Overview - Gatos Silver is a silver-dominant exploration, development, and production company operating the Cerro Los Gatos mine in Mexico, with a 70% ownership in the LGJV [7] - The LGJV holds approximately 103,000 hectares of mineral rights in a highly prospective and under-explored district with numerous silver-zinc-lead epithermal mineralized zones [7]