VANCOUVER, British Columbia, March 31, 2023 (GLOBE NEWSWIRE) — Gatos Silver, Inc. GATO (“Gatos Silver” or the “Company”) today explained the delay in filing its annual report on Form 10-K for the year ended December 31, 2022 (“Form 10-K 2022”). The Company also announced that it has filed previously released financial statements of the Company and the Los Gatos joint venture (the “LGJV”) for the year ended December 31, 2021 and for the years ended March 31, 2022, September 30, 2022 (the ” affected periods”).

Based on a preliminary analysis, the required adjustments are non-cash and relate primarily to the timing and recognition of net deferred tax assets at the 70% owned LGJV. The Company anticipates that the net effect of these adjustments would decrease by approximately $4 to $6¹ million of its reported net income of $18.3 million for the nine months ended September 30, 2022. As the Company continues to work to finalize the necessary adjustments, these preliminary results are subject to change.

The Company is now working to restate the previously released financial statements, including a recalculation of the net deferred tax assets at LGJV. The Company currently plans to complete the restatements and submit its 2022 Form 10-K by April 17, 2023, but advises that this schedule is subject to change. The restatements and financial results for the full year 2022 are subject to completion review and audit by the Company’s independent registered public accounting firm, Ernst & Young LLP.

The adjustments have no impact on production or cash flows for affected periods and will not impact the 2023 guidance issued on February 23, 2023. There is no change to the Company’s cash on hand of $15.6 million and LGJV’s cash on hand of $55.5 million as of February 28, 2023.

preliminary examination

The company’s preliminary analysis shows that the understatement of net deferred tax assets dates from 2021. The company believes that…