11:20 AM EDT, 04/10/2024 (MT Newswires) -- Gatos Silver ( GATO ) late Tuesday reported first-quarter production at its 70%-owned Cerro Los Gatos mine of 3.7 million silver-equivalent ounces, remaining steady year over year.

Silver-equivalent production for the quarter puts the company on track to hit the top end of its guidance for the year, Gatos said.

Mill throughput at the mine rose about 11% to 3,210-tonnes per day in the first quarter, up from 2,894-tonnes per day in the year-ago quarter. It was the fifth straight quarterly increase in throughput with March setting a record for the company's best monthly production ever.

Higher-than-expected silver grades and higher mill throughput rates contributed to the strong production level compared with first-quarter guidance, Gatos noted.

Dale Andres, Gatos' chief executive, in a statement said: "The CLG mine delivered another strong quarter of operational results. Mill throughput for the quarter was more than 3,200 tonnes per day, an increase of 11% from the first quarter of 2023, and another quarterly record. Silver equivalent production for the quarter was at the top end of guidance with the higher throughput offsetting lower grades for silver, lead and gold as expected in the mine plan.

"We made good progress on mine debottlenecking and productivity improvements as we continue to advance towards our medium-term target to sustain throughput rates of 3,500 tonnes per day. We are also progressing our life extension opportunities beyond 2030, with an updated life of mine plan expected in the third quarter of 2024 and increased exploration efforts on near mine targets in the Los Gatos district during the quarter."

Gatos shares were last seen up C$0.60 to C$13.28 on the Toronto Stock Exchange.

Price: 13.28, Change: +0.60, Percent Change: +4.73