RBC upgrades Gatos Silver after strong production, shares rise

Gatos Silver

08/04/2022 10:33

** RBC upgrades Gatos Silver  GATO.N  to "sector perform"
from "underperform", following co's qtrly production results
    ** Shares of silver miner up 3.6% at $4.65 premarket
    ** GATO, on Thursday, announced record silver production
from its 70%-owned Cerro Los Gatos mine during Q1 2022
 urn:newsml:reuters.com:*:nBw4y21sBa
    ** Co also announced Dale Andres, who currently serves as
President, appointed as CEO following Stephen Orr's retirement 
    ** Brokerage says Q1 production is modestly better than its
had forecast, and is at run-rate above FY22 guidance, which
increases its confidence in near-term operations and FCF
generation in 2022
    ** "While we expect solid operating results and cash flow
generation in 2022, we remain cautious until there is more
visibility into 2023 and beyond" - RBC
    ** Brokerage also sees uncertainty weighing on stock and
capping potential upside until then
    ** Four brokerages covering the stock rate "hold"; their
median PT is $4.63 - Refinitiv data
    ** Stock down 56.7% this year, as of last close, after
losing 20.3% in 2021

 (Reporting By Geetha Panchaksharam)
 ((geetha.panchaksharam@thomsonreuters.com))