Gatos Silver, Inc. reported significant financial performance improvements in its latest 10-Q filing for the quarter ending September 30, 2024. The company achieved total revenue of $93.8 million for Q3 2024, marking a 40% increase from $67.0 million in Q3 2023. For the nine months ended September 30, 2024, revenue reached $260.3 million, up 33% from $195.2 million in the same period last year. This growth was driven by increased sales volumes of silver, zinc, lead, and gold, alongside higher average realized prices for silver and zinc.

Net income for Q3 2024 was reported at $9.9 million, or $0.14 per share, compared to $3.3 million, or $0.05 per share, in Q3 2023. For the nine-month period, net income surged to $21.6 million from $0.5 million in the prior year. Adjusted net income for the same nine-month period was $28.3 million, significantly higher than $0.5 million in 2023. The increase in profitability was attributed to higher equity income from the Los Gatos Joint Venture (LGJV), which reported net income of $56.4 million for the nine months ended September 30, 2024, compared to $28.5 million in 2023.

The company’s total expenses for Q3 2024 were $55.2 million, slightly up from $53.8 million in Q3 2023. General and administrative expenses increased to $10.4 million from $7.5 million year-over-year, primarily due to costs associated with a strategic review for a proposed merger with First Majestic Silver Corp. The merger agreement, announced on September 5, 2024, will see Gatos Silver become a wholly-owned subsidiary of First Majestic, with stockholders receiving 2.55 shares of First Majestic common stock for each share of Gatos Silver.

Cash and cash equivalents as of September 30, 2024, stood at $116.7 million, a substantial increase from $55.5 million at the end of 2023. The company reported net cash provided by operating activities of $61.2 million for the nine months ended September 30, 2024, compared to $25.5 million in the same period last year. Free cash flow also improved significantly, reaching $61.2 million, up from $25.5 million in 2023.

Gatos Silver's operational metrics showed increased production levels, with the Cerro Los Gatos mine producing 2.42 million ounces of silver in Q3 2024, compared to 2.22 million ounces in Q3 2023. The mine's life was extended to October 2032, and the company raised its full-year silver production guidance to between 9.2 million and 9.7 million ounces.

Overall, Gatos Silver's financial results reflect a robust operational performance and strategic developments, particularly the upcoming merger with First Majestic, which is expected to close in early 2025.