Gatos Silver‘s silver production fell at a year-on-year rate of 10.7% in 2023, to 9.2 million ounces.

Why? The decline is due to lower grades, as expected in the mine plan. 

The lower grades were partly offset by higher mill throughput, which averaged 2,935 tonnes per day in 2023, a 10% increase over 2022. 

To remember: Gatos Silver is a Canadian-based precious metals exploration, development and production company incorporated in Delaware with the goal of becoming a leading silver producer. 

Its main efforts are focused on the operation of the Los Gatos Joint Venture (LGJV) in Chihuahua, Mexico.

What other results did the company report? Its lead and zinc production for 2023 was 38.9 million pounds and 57.3 million pounds, respectively, 11 and 6% lower than in 2022 due to lower grades of processed metals.

Silver production

The Cerro Los Gatos mining unit was the fifth largest in Mexico, measured by production volume, behind Peñasquito (Newmont), San Julián (Fresnillo plc), Fresnillo (Fresnillo plc) and Saucito (Fresnillo plc).

After earning revenues of US$311.7 million in 2022, Gatos Silver reduced that indicator to US$268.7 million in 2023.

Considering those same two years, its net income went from US$72.2 million to US$53.4 million.

Generally, the term mining unit refers to a specific facility or area where the extraction of minerals or mineral resources takes place. 

These mining units can vary in size and complexity depending on the type of operation, the ore extracted and the technology used.

Mexico is the world’s largest silver producer and has played a significant role in the silver mining industry.

The Los Gatos District (LGD) is approximately 120 kilometers south of the city of Chihuahua and is comprised of 103,087 hectares. 

The LGD consists of multiple mineralized zones. Two of the identified mineralized zones, Cerro Los Gatos and Esther, have reported mineral resources.