Gatos Silver, Inc. (NYSE:GATO) Q3 2023 Earnings Call Transcript

Dale Andres: Yes. Thanks again, Cosmos. And just on the answer to the cost question first, we’re doing a good job containing costs, obviously, and we’re no different than any of the other mine companies in Mexico. We’re exposed to the Mexican — much stronger Mexican peso over the last 12 or so months. So that is obviously applying some pressure and inflation, standard inflationary pressures. On our continuous improvement program, I’m really proud of our team and the work that we’ve done. We’ve got some great initiatives this year. We’re really focusing on the back half of this year on maintenance improvement, including equipment availabilities and utilizations, continuing to see some great impacts from that work. And that work will continue that in other projects as we head into 2024.

So I’m confident that we can offset these pressures. I would just like on a quarter by quarter basis, it’s important not to read too much into our site costs. There can be slight variations depending on inventory adjustments or timing of expenditures. But in general, if you look at our cost of sales profile for the last 12 months, it sits quite well. And we don’t expect any big swings with continued cost savings and reduction initiatives that we have underway. Just to answer the question on Mexico, and security in particular, we’re comfortable operating where we are. I think this is quite regional based. We know other companies have had some concerns. We’re always cautious, and — but we’re in an area that is relatively safe on a comparable basis compared to other areas in Mexico.

We have a great relationship with our local community, San José del Sitio. And as I said, we have no security concerns at the mine side at all.

Operator: [Operator Instructions]/ There are no further questions at this time. Mr. Andres, I turn the call back over to you.

Dale Andres: Thanks, operator. And thanks to everyone who participated in the call. We look forward to continuing to update you as we progress with our operating performance and most importantly, as we head into 2024, updating you on our exploration results and continued progress on our life extension work. So, thank you all.

Operator: This concludes today’s conference call. Thank you for joining. You may now disconnect your lines.