Breaking News: Gatos Silver Secures Enhanced Management Rights and Consolidates Financial Statements in Joint Venture with Dowa

VANCOUVER, British Columbia, Dec. 19, 2024 (GLOBE NEWSWIRE) —

Gatos Silver, Inc. (NYSE/TSX: GATO) (“Gatos Silver” or the “Company”) today announced that it has entered into amended and restated agreements (the “Amended Agreements”) with Dowa Metals & Mining Co., Ltd. (“Dowa”) regarding the Los Gatos Joint Venture (the “LGJV”). The Amended Agreements, which are effective on January 1, 2025, expand Gatos Silver’s management rights within the LGJV which will result in the Company being able to fully consolidate the financial statements of the LGJV rather than accounting for its investment in the LGJV under the equity method of accounting as is currently required.

The ownership interests of the Company and Dowa in the LGJV are unchanged, at 70% and 30%, respectively.

What Does This Mean?

With the enhanced management rights secured by Gatos Silver in its joint venture with Dowa, the Company will now have more control and visibility over the financial activities of the LGJV. By being able to consolidate the financial statements of the LGJV, Gatos Silver can now present a clearer picture of its financial position to shareholders and stakeholders. This move could potentially lead to better decision-making and strategic planning for the Company going forward.

Additionally, the unchanged ownership interests of Gatos Silver and Dowa indicate a continued strong partnership between the two companies, showcasing a commitment to the success and growth of the joint venture.

Overall, this development seems to be a positive step for Gatos Silver, as it provides the Company with greater autonomy and transparency in its financial reporting within the LGJV.

How Will This Affect Me?

As an investor or stakeholder in Gatos Silver, you can expect a more detailed and comprehensive financial reporting structure from the Company following the consolidation of the LGJV financial statements. This increased transparency may give you greater confidence in the Company’s financial health and performance, potentially impacting your investment decisions.

How Will This Affect the World?

While the impact of Gatos Silver’s enhanced management rights and consolidated financial statements may not be felt directly on a global scale, it does set a positive example for other companies in terms of transparent financial reporting and strong joint venture partnerships. By showcasing a commitment to clarity and collaboration, Gatos Silver and Dowa are contributing to a more transparent and trustworthy business environment.

Conclusion

In conclusion, the news of Gatos Silver securing enhanced management rights and consolidating financial statements in its joint venture with Dowa signifies a significant step towards greater transparency and control for the Company. By fully consolidating the financial statements of the LGJV, Gatos Silver is poised to provide stakeholders with a clearer view of its financial performance and strategic direction. This development bodes well for the Company’s future growth and stability, showcasing a commitment to responsible financial management and partnership building.