\nGatos Silver, Inc. (NYSE\/TSX: GATO) (\u201cGatos Silver\u201d or the \u201cCompany\u201d) today filed its quarterly reports on Forms 10-Q for the quarters ended March 31, June 30, and September 30, 2022, which include its unaudited condensed consolidated financial statements for such periods. The 10-Qs were filed on both the EDGAR and SEDAR systems and are posted on the Gatos Silver website at https:\/\/gatossilver.com<\/a>.\n<\/p>\n
\nThe Company expects that it will file its annual report on Form 10-K for the year ended December 31, 2022, on March 30, 2023, after markets close, which will include its financial results and its audited consolidated financial statements for the period.\n<\/p>\n
\nThe Company plans to host an investor and analyst call on March 31, 2023, details of which are provided below.\n<\/p>\n
\nAs previously disclosed, the unaudited condensed consolidated financial statements for the first three quarters of 2022 were delayed following Gatos Silver\u2019s January 25, 2022, announcement of errors in the 2020 Technical Report that ultimately resulted in a reduction in the metal content of its previously estimated mineral reserves. With the filing of the Form 10-Qs for the first three quarters of 2022, Gatos Silver is current on its U.S. and Canadian securities regulatory filing requirements. The Company has, therefore, requested the Ontario Securities Commission to revoke the related Management Cease Trade Orders.\n<\/p>\n
\nGatos Silver\u2019s net income for the nine months ended September 30, 2022, was $18.3 million1<\/sup> or $0.26 per basic and diluted share compared with a year-earlier net loss of $3.1 million or $0.05 per basic and diluted share. The improvement in net income was primarily due to an increase in revenue for the 70%-owned Los Gatos Joint Venture (\u201cLGJV\u201d) driven by strong production. Production results for the nine months ended September 30, 2022, were disclosed on October 11, 2022.\n<\/p>\n \nIn summary, the LGJV achieved the following results for the nine months ended September 30, 2022, compared with the same period a year earlier (100% basis):\n<\/p>\n \nFor additional details please see the Company\u2019s quarterly filings on the Company\u2019s website, or on EDGAR and SEDAR.\n<\/p>\n \nThe Company remains well-positioned to achieve its guidance and disclosed plans for 2023, including the further optimization of the Cerro Los Gatos (“CLG\u201d) operation, advancing mine life extension opportunities, accelerating the drilling on the mineralization recently discovered at depth in the new South-East Deeps zone, and continuing exploration of the highly prospective Los Gatos district.\n<\/p>\n \n______________\n<\/p>\n 1<\/sup> The Company\u2019s reporting currency is US dollars. Financial Results Webcast and Conference Call<\/b><\/p>\n \nInvestors and analysts are invited to attend the year-end financial results webcast and conference call as follows:\n<\/p>\n \nDate: Friday, March 31, 2023 \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n Nine Months Ended<\/b><\/p>\n<\/td>\n<\/tr>\n (in thousands, except unit costs)<\/i><\/b><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n September \n\u00a0\n<\/p>\n<\/td>\n September \nCost of sales\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$81,550\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$70,275\n<\/p>\n<\/td>\n<\/tr>\n \nRoyalties\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n2,739\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n3,480\n<\/p>\n<\/td>\n<\/tr>\n \nExploration\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n6,235\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n3,505\n<\/p>\n<\/td>\n<\/tr>\n \nGeneral and administrative\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n9,846\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n9,493\n<\/p>\n<\/td>\n<\/tr>\n \nDepreciation, depletion and amortization\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n52,340\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n36,388\n<\/p>\n<\/td>\n<\/tr>\n \nExpenses\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$152,710\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$123,141\n<\/p>\n<\/td>\n<\/tr>\n \nDepreciation, depletion and amortization\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(52,340)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(36,388)\n<\/p>\n<\/td>\n<\/tr>\n \nExploration1<\/sup><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(6,235)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(3,505)\n<\/p>\n<\/td>\n<\/tr>\n \nTreatment and refining charges2<\/sup><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n15,668\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n16,372\n<\/p>\n<\/td>\n<\/tr>\n \nCash costs (A)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$109,803\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$99,620\n<\/p>\n<\/td>\n<\/tr>\n \nSustaining capital\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n57,036\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n51,864\n<\/p>\n<\/td>\n<\/tr>\n \nAISC (B)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$166,839\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$151,484\n<\/p>\n<\/td>\n<\/tr>\n \nBy-product credits3<\/sup><\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(101,200)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n(73,402)\n<\/p>\n<\/td>\n<\/tr>\n \nAISC, net of by-product credits (C)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$65,639\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$78,082\n<\/p>\n<\/td>\n<\/tr>\n \nCash costs, net of by-product credits (D)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$8,603\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$26,218\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \nPayable ounces of silver equivalent4 <\/sup>(E)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n11,877\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n7,837\n<\/p>\n<\/td>\n<\/tr>\n \nCo-product cash cost per ounce of payable silver equivalent (A\/E)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$9.25\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$12.71\n<\/p>\n<\/td>\n<\/tr>\n \nCo-product AISC per ounce of payable silver equivalent (B\/E)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$14.05\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$19.33\n<\/p>\n<\/td>\n<\/tr>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n<\/tr>\n \nPayable ounces of silver (F)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n6,912\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n4,782\n<\/p>\n<\/td>\n<\/tr>\n \nBy-product cash cost per ounce of payable silver (D\/F)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$1.24\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$5.48\n<\/p>\n<\/td>\n<\/tr>\n \nBy-product AISC per ounce of payable silver (C\/F)\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$9.50\n<\/p>\n<\/td>\n \n\u00a0\n<\/p>\n<\/td>\n \n$16.33\n<\/p>\n<\/td>\n<\/tr>\n 1<\/sup> Exploration costs are not related to current operations.\n<\/p>\n<\/td>\n<\/tr>\n 2<\/sup> Represent reductions on customer invoices and included in Sales of the LGJV combined statement of income (loss).\n<\/p>\n<\/td>\n<\/tr>\n 3<\/sup> By-product credits reflect realized metal prices of zinc, lead and gold for the applicable period, which includes any final settlement adjustments from prior periods.\n<\/p>\n<\/td>\n<\/tr>\n 4<\/sup> Silver equivalents utilize the average realized prices during the nine months ended September 30, 2022, of $20.38\/oz silver, $1.55\/lb zinc, $0.98\/lb lead and $1,837\/oz gold and the average realized prices during the three months ended September 30, 2022 of $17.25\/oz silver, $1.52\/lb zinc, $0.91\/lb lead and $1,790\/oz gold. Silver equivalents utilize the average realized prices during the nine months ended September 30, 2021 of $24.03\/oz silver, $1.29\/lb zinc, $0.97\/lb lead and $1,799\/oz gold and the average realized prices during the three months ended September 30, 2021 of $23.31\/oz silver, $1.40\/lb zinc, $0.99\/lb lead and $1,776\/oz gold.\n<\/p>\n<\/td>\n<\/tr>\n Forward-Looking Statements<\/b><\/p>\n \nThis press release contains statements that constitute \u201cforward looking information\u201d and \u201cforward-looking statements\u201d within the meaning of U.S. and Canadian securities laws. All statements other than statements of historical facts contained in this press release that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future, including statements regarding completion and filing of the Company\u2019s Form 10-K, its ability to achieve guidance and disclosed plans for 2023, further optimization of the CLG operation, the advancement of mine life extension opportunities including definition drilling in the South-East Deeps zone, and exploration in the Los Gatos district are forward-looking statements. Forward-looking statements are based on management\u2019s beliefs and assumptions and on information currently available to management, which include, but is not limited to, management\u2019s belief that continued exploration of the Los Gatos district will yield positive results and that the conversion of the higher-grade portion of the current mineral resources into reserves can be achieved on a timely basis or at all. Actual results may differ materially from those expressed or implied in the forward-looking statements. Risks and uncertainties that could cause actual results to differ materially from the forward-looking statements include, but are not limited to, changes in development or mining plans due to changes in logistical, technical or other factors, the possibility that future exploration results will not be consistent with the Company’s expectations, assumptions regarding the availability of required permits, changes in world silver markets and silver prices and other risks described in our filings with the U.S. Securities and Exchange Commission and Canadian securities commissions. Gatos Silver expressly disclaims any obligation or undertaking to update the forward-looking statements contained in this press release to reflect any change in its expectations or any change in events, conditions, or circumstances on which such statements are based unless required to do so by applicable law. No assurance can be given that such future results will be achieved. Forward-looking statements speak only as of the date of this press release.\n<\/p>\n View source version on businesswire.com: <\/span>https:\/\/www.businesswire.com\/news\/home\/20230330005518\/en\/<\/a><\/span><\/p>\n Investors and Media Contact KEYWORDS:<\/b> North America Canada<\/p>\n INDUSTRY KEYWORDS:<\/b> Mining\/Minerals Natural Resources<\/p>\n\n
\n
2<\/sup> See \u201cNon-GAAP Financial Performance Measures\u201d for additional information.\n<\/p>\n
\n
Time: 8:00 a.m. PT \/ 11:00 a.m. ET
\n
Listen-Only Webcast: https:\/\/events.q4inc.com\/attendee\/175852880
\n<\/a>
Dial In for Analysts only: 1 (888) 330-2513\n<\/p>\n\n
\n \n \n \n \n \n \n \n
\n
30, 2022<\/b><\/p>\n<\/td>\n\n \n
\n
30, 2021<\/b><\/p>\n<\/td>\n<\/tr>\n\n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \n \u00a0<\/td>\n<\/tr>\n \n \n \n \n \n \n \n \n \n <\/tr>\n<\/table>\n <\/p>\n
\n<\/b>
Andr\u00e9 van Niekerk
\n
Chief Financial Officer
\n
investors@gatossilver.com
\n<\/a>
(604) 424-0984\n<\/p>\n
![\"Logo\"](\"https:\/\/mms.businesswire.com\/media\/20230330005518\/en\/1506722\/3\/Logo_TM.jpg\"){kind=logo}
<\/td>\n<\/tr>\n