Copper output from Codelco jumps 17% in November
Cochilco data showed that Codelco production totaled 133,600 metric tons in November.
Gatos Silver (TSX: GATO; NYSE: GATO) has topped its 2024 production guidance at the Cerro Los Gatos mine in Mexico. Record throughput and higher-than-expected silver-equivalent output drove strong results.
The Vancouver-based company, which is being bought by First Majestic Silver (TSX: AG; NYSE: AG) in a $970 million deal, said late on Thursday its Cerro Los Gatos mine produced 9.7 million oz. silver, at the top of its revised forecast of 9.2-9.7 million ounces. The mine also delivered 15.6 million silver-equivalent oz., better than the high end of its updated range of 14.7-15.5 million equivalent ounces.
The deal, expected to close after shareholder votes next week, will merge Gatos’ main Cerro Los Gatos mine with First Majestic’s San Dimas mine in Durango, and its Santa Elena operation in Sonora.
BMO Capital Markets mining analyst Kevin O’Halloran noted the mine’s strong cash flow and exploration potential. But he warned of limited short-term upside for Gatos shares, which closed at $14.96 apiece in New York on Jan. 9 and were at $14.91 on Friday afternoon. BMO has a $16.50 per share price target.
Cerro Los Gatos sustained growth for the eighth consecutive quarter, setting records while increasing silver, zinc and lead grades, the company said.
CEO Dale Andres said the progress positions the company to deliver value as it merges with First Majestic.
In the three months to Dec. 31, Cerro Los Gatos produced 4.2 million silver-equivalent ounces. This was due to higher-than-expected grades and record throughput of 3,324 tonnes per day.
The company said December’s throughput rose to 3,760 tonnes per day. This was due to debottlenecking and mine optimization efforts.
Zinc production reached 69.7 million lb., a 22% increase from 2023, while lead output climbed 20% to 46.4 million pounds. Gold production rose 5% to 5,530 ounces.
The mine’s total throughput averaged 3,255 tonnes per day for the year. This was an 11% improvement over 2023. The company said it reflects gains from ongoing mine and plant optimizations.
The company operates the mine with a 70% ownership stake, with the balance held by Dowa Metals & Mining, a subsidiary of Tokyo-listed Dowa Holdings.
Gatos is advancing exploration across the 1,030-sq.-km Los Gatos district, thought to remain highly prospective with many identified mineralized zones.
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