Gatos Silver Investor Presentation Deck
Endnotes
Slide 11: Organic Growth Strategy
(1)
Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability.
The quantity and grade of reported Inferred Mineral Resources are uncertain in nature and there has
been insufficient exploration to define these Inferred Mineral Resources as an Indicated or Measured
Mineral Resource. It is uncertain if further exploration will result in upgrading Inferred Mineral
Resources to an Indicated or Measured Mineral Resource category. Inferred mineral resources are
subject to uncertainty as to their existence and as to their economic and legal feasibility. The level of
geological uncertainty associated with an inferred mineral resource is too high to apply relevant
technical and economic factors likely to influence the prospects of economic extraction in a manner
useful for evaluation of economic viability.
Please refer to forward looking statements on slide 2 regarding potential conversion of inferred
resources to indicated or measured.
(3) Drill intercepts shown are for drilling completed since the database cutoff date for the 2023 Mineral
Reserve and Resource. Please refer to our press releases dated July 18, 2023 and October 23, 2023
for complete drill intercepts and additional information.
Slide 12: Organic Growth Strategy - South-East Deeps
(1)
Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability.
The quantity and grade of reported Inferred Mineral Resources are uncertain in nature and there has
been insufficient exploration to define these Inferred Mineral Resources as an Indicated or Measured
Mineral Resource. It is uncertain if further exploration will result in upgrading Inferred Mineral
Resources to an Indicated or Measured Mineral Resource category. Inferred mineral resources are
subject to uncertainty as to their existence and as to their economic and legal feasibility. The level of
geological uncertainty associated with an inferred mineral resource is too high to apply relevant
technical and economic factors likely to influence the prospects of economic extraction in a manner
useful for evaluation of economic viability.
Slide 13: Organic Growth Strategy - South-East Deeps
(1)
Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability.
The quantity and grade of reported Inferred Mineral Resources are uncertain in nature and there has
been insufficient exploration to define these Inferred Mineral Resources as an Indicated or Measured
Mineral Resource. It is uncertain if further exploration will result in upgrading Inferred Mineral
Resources to an Indicated or Measured Mineral Resource category. Inferred mineral resources are
subject to uncertainty as to their existence and as to their economic and legal feasibility. The level of
geological uncertainty associated with an inferred mineral resource is too high to apply relevant
technical and economic factors likely to influence the prospects of economic extraction in a manner
useful for evaluation of economic viability.
(2)
Drill intercepts shown are for drilling completed since the database cutoff date for the 2023 Mineral
Reserve and Resource. Please refer to our press releases dated July 18, 2023 and October 23, 2023
for complete drill intercepts and additional information.
Slide 16: Outlook and Future Catalysts
See Non-GAAP Performance Measures slides.
Figures are shown on a 100% basis. Gatos Silver ownership of the LGJV is 70%. Free cash flow is after-tax
and is calculated using base case prices of $22/oz Ag, $1.20/lb Zn, $0.90/lb Pb, $1,700/oz Au, $3.50/lb Cu
and an exchange rate of 20.00 Mexican Pesos per US$1.00.
Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. The
quantity and grade of reported Inferred Mineral Resources are uncertain in nature and there has been
insufficient exploration to define these Inferred Mineral Resources as an Indicated or Measured Mineral
Resource. It is uncertain if further exploration will result in upgrading Inferred Mineral Resources to an
Indicated or Measured Mineral Resource category. Inferred mineral resources are subject to uncertainty
as to their existence and as to their economic and legal feasibility. The level of geological uncertainty
associated with an inferred mineral resource is too high to apply relevant technical and economic factors
likely to influence the prospects of economic extraction in a manner useful for evaluation of economic
viability.
(1)
(2)
(3)
Slide 20: Providing Essential Metals
(1)
Production contribution is based on the value of metal contained in concentrate (contained metal,
multiplied by price) using long-term assumptions of $22/ oz silver, $1.20 / lb zinc, $0.90 / lb lead and
$1,700/oz gold. No adjustment is made for differences in payable factors or smelter terms.
Source: The Silver Institute & Metals Focus Ltd, "World Silver Survey 2023", published in 2023.
Source: The Silver Institute & Metals Focus Ltd, "Market Trend Report: Silver's Growing Role in the
Automotive Industry", published in 2021.
(2)
GATOS
SILVER
Slide 22: Summary of the 2023 LOM Plan
(1)
Silver production is silver contained in Pb and Zn concentrates, zinc production is zinc contained in Zn
concentrate, lead production is lead contained in Pb concentrate.
(2)
(3)
(2)
See Non-GAAP Financial Performance Measures slides. By-product AISC and Co-product AISC include the
LGJV management fee and administrative costs of $1.09 / oz Ag payable and $0.59 / oz AgEq payable,
respectively in the 2023 LOM Plan and $0.89 / oz Ag payable and $0.50 /oz AgEq payable, respectively in
the 2022 LOM Plan from July 1, 2023. Refer to slide 34 for AISC details.
Net Present Value ("NPV") is as of July 1, 2023 using a 5% discount rate and is shown on an after-tax basis.
NPV and free cash flow assume base case prices of $22/oz Ag, $1.20/lb Zn, $0.90/lb Pb, $1,700/oz Au,
$3.50/lb Cu and an exchange rate of 20.00 Mexican Pesos per US$1.00.
See Non-GAAP Performance Measures slides.
(4)
Slide 27: 2023 LOM Plan - Free Cash Flow
(1)
See Non-GAAP Financial Performance Measures slides. Free cash flow and Net Present Value (NPV) are on
an after-tax basis, and NPV is calculated as of July 1, 2023 using a 5% discount rate. Sensitivity to silver
prices use the silver price indicated; zinc, lead, gold and copper prices remain at base case prices.
See Non-GAAP Financial Performance Measures slides. Cumulative after-tax cash flows are from July 1
2023 onwards.
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