04:51 PM EST, 11/11/2024 (MT Newswires) -- Gatos Silver ( GATO ) was last seen up 1.6% in after-hours New York trading after the company on Monday reported improved earnings for the third quarter on a "strong" production and cost performance together with higher metal prices.

The company, which has a 70% interest in the Los Gatos Joint Venture, owner of the Cerro Los Gatos mine in Mexico reported its adjusted profit, excluding most one-time items, rose to US$15.2 million, or US$0.12 per share, in the period, up from US$3.3 million, or US$0.05, in the year-prior quarter.

Including items, net income rose to US$9.9 million, or US$0.14, from $3.3 million, or US$0.05.

Revenue rose 40% to US$93.8 million from US$67 million.

The company said EBITDA rose to US$9.1 million from US$3.2 million, and adjusted EBITDA of US$14.4 million. Cash flow provided by operating activities and free cash flow edged up to US$34.2 million from US$33.3 million.

Gatos Silver ( GATO ) in September agreed to be acquired by First Majestic (AG.TO). The proposed merger is expected to close in the first quarter of 2025 and would consolidate three world-class, producing silver mining districts in Mexico to create a leading intermediate primary silver producer.

"CLG's strong third quarter 2024 production and cost performance together with higher metal prices resulted in record quarterly free cash flow at the LGJV and a record quarter-end cash balance for Gatos Silver ( GATO )," said chief executive Dale Andres. "We believe we are well positioned to deliver significant value into the combination with First Majestic given the company's strong cash position and free cash flow generation together with CLG's track record of performance, the extended mine plan disclosed in September and ongoing exploration efforts across the broader Los Gatos district."

Gato shares were last seen up US$0.24 to US$15.75 after hours. They closed down $1.49 to $21.13 on the Toronto Stock Exchange.