Currently viewing Global edition

Gatos gains as it regains full grid power

Gatos Silver has welcomed a return to full power from Mexico’s national grid at the Cerro Los Gatos mine in Chihuahua state.
Gatos gains as it regains full grid power Gatos gains as it regains full grid power Gatos gains as it regains full grid power Gatos gains as it regains full grid power Gatos gains as it regains full grid power

Inside the plant at Gatos Silver’s Cerro Los Gatos JV mine in Mexico

Staff reporter

It said given the expedited restoration, the outage had "minimal impact" on the company's mining and processing activities.

Gatos had said on Friday power had been restricted due to severe winter storms in Texas, with northern Mexico highly dependent on natural gas from the US state for power.

At the time, it said underground mining would continue at a reduced rate and a planned shutdown for processing plant maintenance would be accelerated and completed during the temporary restriction.

Gatos said yesterday it was now operating the surface facilities and "full complement" of underground mining and infrastructure activities.

It expected the process plant would resume operation early this week once the maintenance activities were completed.

The company wrapped up its first full year of production in 2020 at its flagship mine, a joint venture with Dowa Metals & Mining. 

Cerro Los Gatos produced 4.2 million silver ounces in concentrate, 34.2M pounds of zinc in concentrate, 27.4Mlb lead in concentrate and 4,900oz of gold in lead concentrate over 2020.

Gatos had completed an IPO on the NYSE and TSX in October, priced at US$7 per share, which it described as "the largest of its kind in the last decade".

Gatos shares (NYSE: GATO) closed up 15% to $15.26 yesterday, capitalising it at $903 million.