Gatos Silver ( NYSE: GATO ) +3.8% post-market Tuesday after reporting record quarterly production from its 70%-owned Cerro Los Gatos mine, while also raising production guidance and lowering cost guidance for 2022.
Cerro Los Gatos achieved record production for silver, zinc and lead in Q3: Silver production surged 59% Y/Y to 2.7M oz, zinc output jumped 32% to 17.8M lbs, and lead production climbed 13% to 12.2M lbs.
Gatos ( GATO ) said the higher production was due mostly to record mill throughput rates averaging 2,862 metric tons/day and significantly higher ore grades processed during the quarter.
Based on the CLG's continued strong operating performance, the company said it is raising FY 2022 production guidance for silver to 9.35M-9.65M oz from 8.5M-9M oz previously, while also increasing guidance for zinc to 58M-61M lbs, lead to 43M-46M lbs, and gold to 5K-5.3K oz.
At the same time, Gatos ( GATO ) also reduced its estimate for full-year all-in sustaining costs to $15.50-$16.50 per silver equivalent oz from $16.50-$18.50 previously.
Gatos Silver ( GATO ) "could be getting ready to purr," Gold Panda writes in an analysis posted recently on Seeking Alpha .
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Gatos Silver raises production guidance, cuts cost guidance for full year