Gatos Silver, Inc. (NYSE:GATO) Q2 2024 Results Conference Call August 7, 2024 11:00 AM ET
Company Participants
Dale Andres - Chief Executive Officer
Andre Van Niekerk - Chief Financial Officer
Conference Call Participants
Kevin O'Halloran - BMO Capital Markets
Operator
Ladies and gentlemen, thank you for standing by, and welcome to Gatos Silver Second Quarter 2024 Results Conference Call. Presenting today will be Dale Andres, CEO of Gatos Silver; and Andre Van Niekerk, Chief Financial Officer. We will conclude today's session with a question-and-answer period where other members of Gatos Silver management team will be available. [Operator Instructions]. At this time, all participants are placed on mute to prevent any background noise.
Turning your attention to Slide 2. Please note today's call contains forward-looking statements. Various risks and uncertainties may cause actual results to vary. Gatos Silver does not assume the obligation to update any forward-looking statements.
And now I would like to turn the call over to Dale Andres. Please go ahead, sir.
Dale Andres
Thank you, operator, and good morning, everyone. Turning to Slide 3. I'd like to start with highlighting the excellent financial performance in the quarter. The Los Gatos joint venture had record revenues, record cash flow from operations and record free cash flow. This was primarily due to the strong operating performance and higher metal prices in the quarter.
As previously announced, the Los Gatos joint venture set yet another record for mill throughput during the quarter and we continue to make meaningful progress towards achieving our medium-term target of sustaining a 3,500 tonne per day rate through the mill. Second quarter production results puts us in a strong position to achieve our annual guidance.
As a result of the strong operating performance this quarter, our all-in sustaining cost metrics for the full year are expected to remain in the lower half of our guidance range despite the continued strong peso, although that is starting to weaken and inflationary pressures in the first half of the year. I would also like to highlight the Los Gatos joint ventures free cash flow of almost $41 million in the second quarter of 2024, a 60% increase compared to the first quarter.
Keeping to our quarterly cadence, the joint venture made a $40 million distribution in July. And as a result, Gatos Silver had a cash balance of nearly $109 million at the end of July. Work on our new life of mine plan is progressing well, and we are on track to announce the results in September. We are aiming to increase throughput and also extend the mine life.