Sunshine Silver Mining & Refining Co., which rebranded as Gatos Silver, Inc. around the time of its public listing, is a mining company dedicated to the exploration, development, and operation of silver-zinc-lead deposits. The company's flagship asset is the Los Gatos District in Chihuahua, Mexico, a prolific mineral belt where it holds a significant land position. The centerpiece of its operations is the Cerro Los Gatos mine, a high-grade underground mine that commenced production in 2019. The company operates the Los Gatos District through the Los Gatos Joint Venture (LGJV), in partnership with Dowa Metals & Mining Co., Ltd. This partnership focuses on maximizing the value of the Cerro Los Gatos mine while aggressively exploring other identified mineralized zones within the district, such as Esther and Amapola. Sunshine Silver's strategy revolves around low-cost production and resource expansion to establish itself as a leading silver producer in North America. The Los Gatos District is characterized by epithermal mineralization, and the company's technical team utilizes advanced geological modeling to identify new targets. With a focus on sustainable mining practices and community engagement in Mexico, the company aims to provide long-term value to shareholders through the extraction of silver, lead, and zinc, while maintaining a robust pipeline of exploration projects.
Gross margin measures the amount of revenue that remains after subtracting costs directly associated with production.
The EBITDA margin is a measure of a company's operating profit desconsidering D&A costs as a percentage of its revenue.
The EBIT margin is a measure of a company's operating profit considering D&A costs as a percentage of its revenue.
The net profit margin, or simply net margin, measures how much net income or profit is generated as a percentage of revenue. It is the ratio of net profits to revenues for a company or business segment.
Many companies have a high D&A in relation to the company's operating profit (EBITDA) and although this indicator does not have an effective cash effect, it ends up influencing the accounting net income, so analyzing this relationship can help to understand when D&A has a relevant impact to the company's results.
Shows the amount spent on investments in research and development in relation to the Net Revenue for the period. The company can use these investments to try to increase its revenue in the future.
Shows the amount spent on investments in Capex in relation to Net Revenue for the period. The company can use these investments to try to increase its revenue in the future.
Indicates a comparison between investments in fixed/intangible assets and the depreciation and amortization of some company assets. It serves to let managers know that the company's assets are devaluing periodically, and whether CAPEX has followed the same pace or not.
It shows the percentage of operating cash flow that the company uses in Capex (investments in fixed and intangible assets). When your result is greater than 100%, it demonstrates that there are expenses greater than what the company produces in its operations.
It demonstrates the percentage cost of Stock-Based Compensation compared to the company's operating cash flow. In some companies, the OCF is positive because of the SBC, which can lead to an incorrect cash flow analysis.
If the company has a lot of D&A, it helps to see if most of it tends to come from fixed assets. The account can include machinery, equipment, vehicles, buildings, land, office equipment, and furnishings, among other things.
If the company has a lot of D&A, it helps to see if most of it tends to come from Goodwill, that is an intangible asset that accounts for the excess purchase price of another company.
Return on equity (ROE) is the measure of a company's net income divided by its shareholders' equity and is a gauge of a corporation's profitability and how efficiently it generates those profits.
Return on invested capital (ROIC) is a calculation used to assess a company's efficiency in allocating capital to profitable investments. The formula for calculating ROIC involves dividing Net Income by the average of invested capital.
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