The deal, expected to close after shareholder votes next week, will merge Gatos’ main Cerro Los Gatos mine with First Majestic’s San Dimas mine in Durango, and its Santa Elena operation in Sonora.
BMO Capital Markets mining analyst Kevin O’Halloran noted the mine’s strong cash flow and exploration potential. But he warned of limited short-term upside for Gatos shares, which closed at $14.96 apiece in New York on Jan. 9 and were at $14.91 on Friday afternoon. BMO has a $16.50 per share price target.
Growth
Cerro Los Gatos sustained growth for the eighth consecutive quarter, setting records while increasing silver, zinc and lead grades, the company said.
CEO Dale Andres said the progress positions the company to deliver value as it merges with First Majestic.
In the three months to Dec. 31, Cerro Los Gatos produced 4.2 million silver-equivalent ounces. This was due to higher-than-expected grades and…
