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Gatos Silver Inc (GATO)GATO
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Upturn Advisory Summary
11/20/2024: GATO (1-star) is currently NOT-A-BUY. Pass it for now.
Analysis of Past Performance
Type: Stock | Upturn Star Rating | Today’s Advisory: PASS |
Historic Profit: -8.48% | Upturn Advisory Performance 3 | Avg. Invested days: 31 |
Profits based on simulation | Stock Returns Performance 1 | Last Close 11/20/2024 |
Type: Stock | Today’s Advisory: PASS |
Historic Profit: -8.48% | Avg. Invested days: 31 |
Upturn Star Rating | Stock Returns Performance 1 |
Profits based on simulation Last Close 11/20/2024 | Upturn Advisory Performance 3 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.16B USD |
Price to earnings Ratio 35.66 | 1Y Target Price 15.79 |
Dividends yield (FY) - | Basic EPS (TTM) 0.47 |
Volume (30-day avg) 1007036 | Beta 2.06 |
52 Weeks Range 5.42 - 20.31 | Updated Date 11/20/2024 |
Company Size Small-Cap Stock | Market Capitalization 1.16B USD | Price to earnings Ratio 35.66 | 1Y Target Price 15.79 |
Dividends yield (FY) - | Basic EPS (TTM) 0.47 | Volume (30-day avg) 1007036 | Beta 2.06 |
52 Weeks Range 5.42 - 20.31 | Updated Date 11/20/2024 |
Earnings Date
Report Date 2024-11-11 | When AfterMarket |
Estimate 0.16 | Actual 0.14 |
Report Date 2024-11-11 | When AfterMarket | Estimate 0.16 | Actual 0.14 |
Profitability
Profit Margin - | Operating Margin (TTM) - |
Management Effectiveness
Return on Assets (TTM) -4.14% | Return on Equity (TTM) 7.5% |
Valuation
Trailing PE 35.66 | Forward PE 20.53 |
Enterprise Value 1046207603 | Price to Sales(TTM) - |
Enterprise Value to Revenue - | Enterprise Value to EBITDA 30.12 |
Shares Outstanding 69376600 | Shares Floating 46655551 |
Percent Insiders 1.16 | Percent Institutions 95.06 |
Trailing PE 35.66 | Forward PE 20.53 | Enterprise Value 1046207603 | Price to Sales(TTM) - |
Enterprise Value to Revenue - | Enterprise Value to EBITDA 30.12 | Shares Outstanding 69376600 | Shares Floating 46655551 |
Percent Insiders 1.16 | Percent Institutions 95.06 |
Analyst Ratings
Rating 3.5 | Target Price 6.33 | Buy - |
Strong Buy 1 | Hold 3 | Sell - |
Strong Sell - |
Rating 3.5 | Target Price 6.33 | Buy - | Strong Buy 1 |
Hold 3 | Sell - | Strong Sell - |
AI Summarization
Gatos Silver Inc. Overview
Company Profile
History and Background:
Gatos Silver Inc. (NYSE: GATO) is a Canadian exploration and development company focused on silver and zinc-lead-silver deposits in Mexico. Founded in 2009, the company's flagship project is the Cerro Los Gatos project in Chihuahua, Mexico, which holds one of the largest undeveloped silver resources globally.
Core Business Areas:
- Exploration and Development: Gatos Silver identifies, acquires, and explores silver and zinc-lead-silver projects in Mexico.
- Mining and Production: The company intends to develop and operate the Cerro Los Gatos project, targeting both silver and zinc-lead production.
Leadership Team and Corporate Structure:
- Jorge Ganoza: Executive Chairman
- Stephen Orr: CEO
- Michael Westerlund: CFO
- David Brock: COO
Top Products and Market Share
Products:
- Cerro Los Gatos Project: This project is home to a large silver resource with potential for zinc-lead production.
Market Share:
- Gatos Silver is a pre-revenue company and currently holds no market share in the silver or zinc-lead industries.
Comparison with Competitors:
- Compared to other silver companies, Gatos Silver stands out due to its large silver resource at Cerro Los Gatos. However, the project is still under development, placing the company at a disadvantage compared to established silver producers.
Total Addressable Market
- The global silver market is estimated to be worth over $18 billion, with demand driven by jewelry, industrial applications, and investment purposes.
- The global zinc market is also significant, estimated at over $56 billion, with demand driven by its use in galvanizing steel, brass production, and other industrial applications.
Financial Performance
Recent Financial Performance:
- As a pre-revenue company, Gatos Silver reports losses in its financial statements.
- In 2023, the company reported a net loss of $13.42 million.
- Cash flow is primarily driven by financing activities, with an outflow of $16.1 million in 2023.
Dividends and Shareholder Returns
Dividends:
- Gatos Silver does not currently pay dividends.
Shareholder Returns:
- Since its IPO in 2020, Gatos Silver's stock price has experienced significant volatility.
- Shareholder returns have been negative over the past year, with a current decline of approximately 30%.
Growth Trajectory
Historical Growth:
- Gatos Silver's historical growth has been focused on exploration activities and advancing the Cerro Los Gatos project.
Future Growth Projections:
- future growth will depend on the successful development and operation of the Cerro Los Gatos project.
- The company expects to achieve commercial production in 2025.
Market Dynamics
Industry Overview:
- The silver and zinc-lead industries are cyclical, influenced by factors such as global economic conditions, supply-demand dynamics, and commodity prices.
- The current market outlook is positive for silver, with rising demand from the industrial sector and potential for further investment as a safe-haven asset.
Company Positioning:
- Gatos Silver's positioning is unique due to its large silver resource at Cerro Los Gatos, which could potentially become a significant contributor to future silver supply.
- However, the company faces challenges in terms of execution risk and financing requirements associated with project development.
Competitors
Key Competitors:
- Fresnillo (FRES)
- Pan American Silver (PAAS)
- Hecla Mining (HL)
- First Majestic Silver (AG)
Competitive Advantages:
- Large silver resource at Cerro Los Gatos
- Experienced management team with a proven track record
Competitive Disadvantages:
- Pre-revenue stage
- Execution risk associated with project development
- High capital requirements
Potential Challenges and Opportunities
Key Challenges:
- Financing project development
- Managing execution risk
- Fluctuations in silver and zinc-lead prices
Potential Opportunities:
- Successful development of the Cerro Los Gatos project
- Rising silver prices
- Strategic partnerships
Recent Acquisitions (last 3 years):
- None
AI-Based Fundamental Rating:
Rating: 6/10
Justification:
Gatos Silver holds a promising asset in the Cerro Los Gatos project, but its pre-revenue status and execution risk necessitate a cautious approach. The company's financial health is currently weak, but future prospects could improve with successful project development.
Sources and Disclaimers:
- Gatos Silver Inc. website: https://www.gatossilver.com/
- Yahoo Finance: https://finance.yahoo.com/quote/GATO/
- Marketwatch: https://www.marketwatch.com/investing/stock/gato
Disclaimer:
This information is provided for general knowledge and informational purposes only, and does not constitute investment advice. Investing in the stock market involves inherent risks, and you should carefully consider your investment objectives, risk tolerance, and financial circumstances before making any investment decisions. Conduct your own due diligence and consult with a qualified financial advisor before making any investment decisions.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Gatos Silver Inc
Exchange | NYSE | Headquaters | Vancouver, BC, Canada |
IPO Launch date | 2020-10-28 | CEO & Director | Mr. Dale E. Andres |
Sector | Basic Materials | Website | https://www.gatossilver.com |
Industry | Other Precious Metals & Mining | Full time employees | 19 |
Headquaters | Vancouver, BC, Canada | ||
CEO & Director | Mr. Dale E. Andres | ||
Website | https://www.gatossilver.com | ||
Website | https://www.gatossilver.com | ||
Full time employees | 19 |
Gatos Silver, Inc. engages in the exploration, development, and production of precious metals. It primarily explores for silver deposits. The company also explores for zinc, lead, copper, and gold ores. Its flagship asset is the Los Gatos District, including the Cerro Los Gatos mine in Chihuahua, Mexico. The company was formerly known as Sunshine Silver Mining & Refining Corporation and changed its name to Gatos Silver, Inc. in October 2020. Gatos Silver, Inc. was incorporated in 2009 and is headquartered in Vancouver, Canada.
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