First Majestic to Acquire Gatos Silver in a 1.66x NAV Deal, Set to Boost Revenue

First Majestic Acquires Gato NEW

On September 5, First Majestic Silver Corp (TSE: AG) and Gatos Silver (NYSE: GATO), both Canadian silver mining companies, announced a definitive merger agreement, with the closing of the deal expected early next year. Gatos holds a 70% stake in the Los Gatos joint venture and operates the Cerro Los Gatos underground silver mine in Chihuahua, Mexico, giving First Majestic access to high-quality silver deposits in the region.

Under the terms of the deal, First Majestic will acquire all outstanding common shares of Gatos. Gatos shareholders will receive 2.550 shares of First Majestic for each Gatos share. This offer values Gatos shares at $13.49 each, based on First Majestic’s closing price on September 4, 2024. According to Visible Alpha consensus, Gatos Silver’s net asset value (NAV) per share is $8.10 as of October 15, 2024, representing an acquisition multiple of 1.66x NAV. Furthermore, the Cerro Los Gatos mine has an attributable NAV of $444.3 million, while Gatos Silver’s exploration assets carry an attributable NAV of $49.5 million. Analysts anticipate the deal to boost First Majestic’s revenue, NAV, and cash flow.

For further insights into the asset-level performance of First Majestic Silver, Gatos Silver, and other mining companies, please visit our Net Asset Value page on Visible Alpha Insights.