First Majestic Announces Financial Results for Q2 2024, Increased Silver Inventory, and Quarterly Dividend Payment
First Majestic Silver Corp. (NYSE: AG) announced Q2 2024 financial results, highlighting production of 5.3 million silver equivalent ounces, a 2% increase from Q1. Quarterly revenues were $136.2 million, down 7% year-over-year due to higher silver inventory and lower production at some mines. The company reported improved mine operating earnings of $15.5 million, up from $1.1 million in Q2 2023. Cash costs were $15.29 per AgEq ounce, a 2% improvement year-over-year. First Majestic held 712,539 silver ounces in inventory valued at $20.9 million. The company declared a quarterly dividend of $0.0046 per share. Management anticipates further improvements in H2 2024 due to planned higher ore grades and throughput rates.
First Majestic Silver Corp. (NYSE: AG) ha annunciato i risultati finanziari del secondo trimestre 2024, evidenziando una produzione di 5,3 milioni di once equivalenti d'argento, con un incremento del 2% rispetto al primo trimestre. Le entrate trimestrali sono state di 136,2 milioni di dollari, in calo del 7% rispetto all'anno precedente a causa di un maggiore inventario di argento e di una produzione ridotta in alcune miniere. L'azienda ha riportato un miglioramento degli utili operativi minerari di 15,5 milioni di dollari, in crescita rispetto a 1,1 milioni nel secondo trimestre 2023. I costi in contante sono stati di 15,29 dollari per oncia AgEq, con un miglioramento del 2% rispetto all'anno precedente. First Majestic ha detenuto 712.539 once d'argento in inventario valutate 20,9 milioni di dollari. L'azienda ha dichiarato un dividendo trimestrale di 0,0046 dollari per azione. La direzione prevede ulteriori miglioramenti nella seconda metà del 2024 grazie a tassi di ore e gradi del minerale programmati più elevati.
First Majestic Silver Corp. (NYSE: AG) anunció los resultados financieros del segundo trimestre de 2024, destacando una producción de 5.3 millones de onzas equivalentes de plata, un aumento del 2% con respecto al primer trimestre. Los ingresos trimestrales fueron de 136.2 millones de dólares, una disminución del 7% interanual debido a un mayor inventario de plata y una menor producción en algunas minas. La compañía reportó ganancias operativas mineras mejoradas de 15.5 millones de dólares, en comparación con 1.1 millones en el segundo trimestre de 2023. Los costos en efectivo fueron de 15.29 dólares por onza AgEq, una mejora del 2% interanual. First Majestic mantuvo 712,539 onzas de plata en inventario valoradas en 20.9 millones de dólares. La compañía declaró un dividendo trimestral de 0.0046 dólares por acción. La dirección anticipa mejoras adicionales en la segunda mitad de 2024 debido a mayores leyes de mineral y tasas de producción planificadas.
퍼스트 마제스틱 실버 Corp. (NYSE: AG)는 2024년 2분기 재무 결과를 발표하며 530만 온스의 은 등가 생산을 강조했습니다. 이는 1분기 대비 2% 증가한 수치입니다. 분기 수익은 1억 3,620만 달러로, 은 재고 증가와 일부 광산의 생산 감소로 인해 전년 대비 7% 감소했습니다. 회사는 1550만 달러의 광산 운영 이익 개선을 보고했으며, 이는 2023년 2분기의 110만 달러에서 증가한 것입니다. 현금 비용은 AgEq 온스당 15.29달러로, 전년 대비 2% 개선되었습니다. 퍼스트 마제스틱은 712,539온스의 은 재고를 보유하고 있으며, 이는 2,090만 달러의 가치가 있습니다. 회사는 주당 0.0046 달러의 분기 배당금을 선언했습니다. 경영진은 계획된 더 높은 광석 등급과 처리 속도로 인해 2024년 하반기에도 추가적인 개선을 기대하고 있습니다.
First Majestic Silver Corp. (NYSE: AG) a annoncé les résultats financiers du deuxième trimestre 2024, mettant en avant une production de 5,3 millions d'onces équivalentes d'argent, soit une augmentation de 2% par rapport au premier trimestre. Les revenus trimestriels ont été de 136,2 millions de dollars, en baisse de 7% d'une année sur l'autre en raison de l'augmentation des stocks d'argent et de la diminution de la production dans certaines mines. La société a rapporté des bénéfices d'exploitation minière améliorés de 15,5 millions de dollars, contre 1,1 million au T2 2023. Les coûts en espèces étaient de 15,29 dollars par once AgEq, soit une amélioration de 2% d'une année sur l'autre. First Majestic a détenu 712 539 onces d'argent en inventaire évaluées à 20,9 millions de dollars. La société a déclaré un dividende trimestriel de 0,0046 dollar par action. La direction anticipe de nouvelles améliorations au second semestre de 2024 grâce à des teneurs en minerai et des taux de traitement prévus plus élevés.
First Majestic Silver Corp. (NYSE: AG) hat die Finanzergebnisse für das 2. Quartal 2024 veröffentlicht und hebt hervor, dass 5,3 Millionen Silberäquivalentunzen produziert wurden, was einem Anstieg von 2% im Vergleich zum 1. Quartal entspricht. Die Quartalsumsätze betrugen 136,2 Millionen USD, ein Rückgang von 7% im Jahresvergleich, bedingt durch höhere Silberbestände und eine niedrigere Produktion in einigen Minen. Das Unternehmen meldete verbesserte Betriebsergebnisse von 15,5 Millionen USD, ein Anstieg von 1,1 Millionen im 2. Quartal 2023. Die Barzahlungen betrugen 15,29 USD pro AgEq-Unze, eine Verbesserung um 2% im Jahresvergleich. First Majestic hielt 712.539 Silberunzen im Inventar, bewertet mit 20,9 Millionen USD. Das Unternehmen erklärte eine vierteljährliche Dividende von 0,0046 USD pro Aktie. Die Geschäftsführung erwartet weitere Verbesserungen in der 2. Hälfte des Jahres 2024 aufgrund geplanter höherer Erzgehalte und Durchsatzraten.
- Production increased to 5.3 million silver equivalent ounces, up 2% from Q1 2024
- Mine operating earnings improved to $15.5 million from $1.1 million in Q2 2023
- Cash costs per AgEq ounce decreased 2% year-over-year to $15.29
- Average realized silver price increased 11% year-over-year to $27.81 per AgEq ounce
- Cash and restricted cash balance of $269.7 million as of June 30, 2024
- Quarterly revenues decreased 7% year-over-year to $136.2 million
- Net loss increased to $48.3 million compared to $17.5 million in Q2 2023
- Total production decreased 16% year-over-year to 5.3 million AgEq ounces
- All-in sustaining costs increased slightly to $21.64 per AgEq ounce
- Production at San Dimas impacted by union worker slowdowns and ongoing negotiations
Insights
First Majestic's Q2 2024 results present a mixed financial picture with some positive developments amidst ongoing challenges. The company reported
- Mine operating earnings improved significantly to
$15.5 million from$1.1 million in Q2 2023. - The average realized silver price increased by
11% year-over-year to$27.81 per AgEq ounce. - Cash costs per AgEq ounce decreased by
2% to$15.29 .
The company's financial position remains solid with
The dividend declaration of
First Majestic's Q2 2024 operational results reveal both challenges and opportunities. Total production of 5.3 million AgEq ounces shows a
- Silver production increased by
7% and gold by9% compared to Q1 2024, indicating a positive trend. - The
15% increase in ore processed suggests improved operational efficiency. - Santa Elena's strong performance partially offset declines at other mines.
- The temporary suspension at Jerritt Canyon continues to impact overall production.
The All-in Sustaining Cost (AISC) of
Looking ahead, management's expectations for improved grades and throughput in H2 2024 are positive, but execution will be crucial. The ongoing union negotiations at San Dimas present a near-term risk that investors should monitor closely. The expansion of First Mint's capabilities could provide a new revenue stream and potentially higher margins through retail sales.
First Majestic's Q2 2024 results highlight the company's resilience in a challenging market environment. Despite lower production, the company has managed to improve its financial performance through strategic initiatives:
- The
11% increase in average realized silver price to$27.81 per AgEq ounce demonstrates effective pricing strategies and market timing. - Holding 712,539 silver ounces in inventory (valued at
$20.9 million ) suggests a strategic approach to maximize returns in a volatile price environment. - The planned expansion of First Mint, with new coin presses and laser-engraving equipment, indicates a focus on diversifying revenue streams and capturing higher margins in the retail market.
The silver market outlook remains positive, with industrial demand expected to grow due to green energy initiatives. First Majestic's focus on silver production positions it well to capitalize on these trends.
However, investors should be aware of potential headwinds:
- Ongoing labor negotiations at San Dimas could impact production in the short term.
- The temporary suspension at Jerritt Canyon continues to affect overall production levels.
- Market volatility and geopolitical factors could influence silver prices.
The company's cost reduction initiatives and expected production improvements in H2 2024 will be important in maintaining competitiveness and profitability in the evolving precious metals market.
Vancouver, British Columbia--(Newsfile Corp. - August 1, 2024) - First Majestic Silver Corp. (NYSE: AG) (TSX: AG) (FSE: FMV) (the "Company" or "First Majestic") is pleased to announce the Company's unaudited condensed interim consolidated financial results for the second quarter ended June 30, 2024. The full version of the financial statements and the accompanying management's discussion and analysis can be viewed on the Company's website at www.firstmajestic.com or on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov/edgar. All amounts are in U.S. dollars unless stated otherwise.
SECOND QUARTER HIGHLIGHTS
Production of 5.3 million silver equivalent ("AgEq") ounces, consisting of 2,104,181 silver ("Ag") ounces and 39,339 gold ("Au") ounces, a
7% and9% increase, respectively, when compared to Q1 2024. Management anticipates further improvements in the second half ("H2") of the year due to planned higher ore grades and throughput rates.Quarterly revenues of
$136.2 million , compared to$146.7 million in Q2 2023. The7% decrease in revenue was driven by a15% decrease in the total number of payable AgEq ounces sold due to higher silver inventory levels held at quarter end, lower production levels at San Dimas and La Encantada, and the temporary suspension of mining activities at Jerritt Canyon in March 2023, partially offset by increased production at Santa Elena and an increase in the average realized silver price.The Company held 712,539 silver ounces in finished goods inventory as of June 30, 2024, inclusive of coins and bullion. The fair value of this inventory, which is not included in Q2 revenues, as of June 30, 2024 was
$20.9 million .Improved mine operating earnings of
$15.5 million compared to$1.1 million in Q2 2023. The year over year increase in mine operating earnings was primarily attributed to an increase in operating earnings from Santa Elena and a decrease in operating losses from Jerritt Canyon, partially offset by higher operating costs at San Dimas and La Encantada.Operating cash flows before movements in working capital and taxes amounted to
$23.8 million .Consolidated cash costs of
$15.29 per AgEq ounce and all-in sustaining costs ("AISC") of$21.64 per AgEq ounce represented an improvement of2% and a slight increase of1% , respectively, compared to Q2 2023. Management continues to undertake a series of cost reduction initiatives across the organization aimed at improving efficiencies, and lowering production costs and other expenses while also increasing production.At the end of the quarter, the Company had a cash and restricted cash balance of
$269.7 million consisting of$152.2 million cash and cash equivalents and$117.5 million of restricted cash. Subsequent to the end of the quarter, there was a transfer of$11.0 million from restricted cash to unrestricted cash (see Note 19 in the financial statements for further details).Declared a cash dividend of
$0.00 46 per common share for the second quarter of 2024 for shareholders of record as of the close of business on August 16, 2024, to be paid out on or about August 30, 2024.During the quarter, ramp-up activities continued at First Mint, with new coin presses and laser-engraving equipment received at the facility. Subsequent to the quarter, installation of the equipment has commenced, and the Company expects to launch several new products including coins in the second half of 2024. These added capabilities will increase minting throughput by over
50% and provide new sales channels with an expected increase in retail sales.
OPERATIONAL AND FINANCIAL HIGHLIGHTS
| Key Performance Metrics | 2024-Q2 | | | 2024-Q1 | | | Change Q2 vs Q1 | | | 2023-Q2 | | | Change Q2 vs Q2 | |||
| Operational | | | | | ||||||||||||
| Ore Processed / Tonnes Milled | 674,570 | 588,651 | 733,170 | ( | ||||||||||||
| Silver Ounces Produced | 2,104,181 | 1,975,176 | 2,633,411 | ( | ||||||||||||
| Gold Ounces Produced | 39,339 | 35,936 | 45,022 | ( | ||||||||||||
| Silver Equivalent Ounces Produced | 5,289,439 | 5,162,283 | 6,320,971 | ( | ||||||||||||
| Cash Costs per Silver Equivalent Ounce(1) | $ | 15.29 | $ | 15.00 | $ | 15.58 | ( | |||||||||
| All-in Sustaining Cost per Silver Equivalent Ounce(1) | $ | 21.64 | $ | 21.53 | $ | 21.52 | ||||||||||
| Total Production Cost per Tonne(1) | $ | 113.16 | $ | 128.23 | ( | $ | 128.21 | ( | ||||||||
| Average Realized Silver Price per Silver Equivalent Ounce(1) | $ | 27.81 | $ | 23.72 | $ | 24.95 | ||||||||||
| Financial (in $millions) | ||||||||||||||||
| Revenues | $ | 136.2 | $ | 106.0 | $ | 146.7 | ( | |||||||||
| Mine Operating Earnings (Loss) | $ | 15.5 | ( | ) | NM | $ | 1.1 | NM | ||||||||
| Net Loss | ( | ) | ( | ) | NM | ( | ) | |||||||||
| Operating Cash Flows before Non-Cash Working Capital and Taxes | $ | 23.8 | $ | 12.6 | $ | 26.9 | ( | |||||||||
| Capital Expenditures | $ | 28.3 | $ | 28.2 | $ | 30.6 | ( | |||||||||
| Cash and Cash Equivalents | $ | 152.2 | $ | 102.1 | $ | 160.2 | ( | |||||||||
| Restricted Cash | $ | 117.5 | $ | 127.2 | ( | $ | 146.1 | ( | ||||||||
| Working Capital(1) | $ | 229.9 | $ | 159.6 | $ | 237.2 | ( | |||||||||
| Free Cash Flow(1) | $ | 6.4 | $ | 0.9 | NM | $ | 7.4 | ( | ||||||||
| Shareholders | ||||||||||||||||
| Loss per Share ("EPS") - Basic | ( | ) | ( | ) | NM | ( | ) | ( | ||||||||
| Adjusted EPS(1) | ( | ) | ( | ) | ( | ( | ) | NM |
(1) The Company reports non-GAAP measures which include cash costs per AgEq ounce produced, cash costs per Au ounce produced, all-in sustaining cost per AgEq ounce produced, all-in sustaining cost per Au ounce produced, total production cost per tonne, average realized silver price per AgEq ounce sold, average realized Au price per ounce sold, working capital, adjusted EPS and free cash flow. These measures are widely used in the mining industry as a benchmark for performance, but do not have a standardized meaning under the Company's financial reporting framework and the methods used by the Company to calculate such measures may differ from methods used by other companies with similar descriptions. See "Non-GAAP Measures" below for further details of these measures.
SECOND QUARTER FINANCIAL RESULTS
Revenues generated during the quarter totaled
The Company realized an average selling price of
Operating cash flows before movements in working capital and taxes in the quarter was
The Company reported mine operating earnings of
Net loss for the quarter amounted to
As at June 30, 2024, the Company had a cash and restricted cash balance of
OPERATIONAL HIGHLIGHTS
The table below represents the quarterly operating and cost performance at each of the Company's three producing mines during the quarter.
| Second Quarter Production Summary | Santa Elena | San Dimas | La Encantada | Jerritt Canyon(1) | Consolidated |
| Ore Processed / Tonnes Milled | 256,427 | 183,188 | 234,955 | - | 674,570 |
| Silver Ounces Produced | 376,947 | 1,141,906 | 585,329 | - | 2,104,181 |
| Gold Ounces Produced | 27,176 | 12,043 | 46 | 74 | 39,339 |
| Silver Equivalent Ounces Produced | 2,580,497 | 2,114,072 | 589,060 | 5,811 | 5,289,439 |
| Cash Costs per Silver Equivalent Ounce(2) | |||||
| All-in Sustaining Cost per Silver Equivalent Ounce(2) | |||||
| Cash Cost per Gold Ounce(2) | N/A | N/A | N/A | N/A | |
| All-In Sustaining Costs per Gold Ounce(2) | N/A | N/A | N/A | N/A | |
| Total Production Cost per Tonne(2) | $- |
(1) Jerritt Canyon was placed on temporary suspension in March 2023. In-circuit recovery efforts performed in Q2 2024 resulted in the production of 74 gold ounces.
(2) See "Non-GAAP Financial Measures" below for further details regarding these measures.
Total production in the second quarter was 5.3 million AgEq ounces consisting of 2.1 million Ag ounces and 39,339 Au ounces, a
Cash costs for the quarter were
AISC in the second quarter was
Capital expenditure in the second quarter totaled
Q2 2024 DIVIDEND ANNOUNCEMENT
The Company is pleased to announce that its Board of Directors has declared a cash dividend in the amount of
Under the Company's dividend policy, the quarterly dividend per common share is targeted to equal approximately
The amount and distribution dates of future dividends remain at the discretion of the Board of Directors. This dividend qualifies as an "eligible dividend" for Canadian income tax purposes. Dividends paid to shareholders outside Canada (non-resident investors) may be subject to Canadian non-resident withholding taxes.
ABOUT FIRST MAJESTIC
First Majestic is a publicly traded mining company focused on silver and gold production in Mexico and the United States. The Company presently owns and operates the San Dimas Silver/Gold Mine, the Santa Elena Silver/Gold Mine, and the La Encantada Silver Mine as well as a portfolio of development and exploration assets, including the Jerritt Canyon Gold project located in northeastern Nevada, U.S.A.
First Majestic is proud to own and operate its own minting facility, First Mint, LLC, and to offer a portion of its silver production for sale to the public. Bars, ingots, coins and medallions are available for purchase online at www.firstmint.com, at some of the lowest premiums available.
For further information, contact info@firstmajestic.com, visit our website at www.firstmajestic.com or call our toll-free number 1.866.529.2807.
FIRST MAJESTIC SILVER CORP.
"signed"
Keith Neumeyer, President & CEO
Non-GAAP Financial Measures
This news release includes reference to certain financial measures which are not standardized measures under the Company's financial reporting framework. These measures include cash costs per silver equivalent ounce produced, all-in sustaining cost (or "AISC") per silver equivalent ounce produced, cash costs per gold ounce produced, AISC per gold ounce produced, total production cost per tonne, average realized silver price per ounce sold, average realized gold price per ounce sold, working capital, adjusted net earnings and EPS and free cash flow. The Company believes that these measures, together with measures determined in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance of the Company. These measures are widely used in the mining industry as a benchmark for performance but do not have any standardized meaning prescribed under IFRS, and therefore they may not be comparable to similar measures disclosed by other companies. The data is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. For a complete description of how the Company calculates such measures and a reconciliation of certain measures to GAAP terms please see "Non-GAAP Measures" in the Company's most recent management discussion and analysis filed on SEDAR+ at www.sedarplus.ca and EDGAR at www.sec.gov/edgar.
Cautionary Note Regarding Forward Looking Statements
This news release contains "forward‐looking information" and "forward‐looking statements" under applicable Canadian and U.S. securities laws (collectively, "forward‐looking statements"). These statements relate to future events or the Company's future performance, business prospects or opportunities that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management made in light of management's experience and perception of historical trends, current conditions and expected future developments. Forward‐looking statements in this news release include, but are not limited to, statements with respect to: improvements in production and efficiencies anticipated in H2 2024 due to planned higher ore grades and throughput rates in H2; and timing for the payment of the Company's cash dividend for the second quarter of 2024. Assumptions may prove to be incorrect and actual results may differ materially from those anticipated. Consequently, guidance cannot be guaranteed. As such, investors are cautioned not to place undue reliance upon guidance and forward‐looking statements as there can be no assurance that the plans, assumptions or expectations upon which they are placed will occur. All statements other than statements of historical fact may be forward‐looking statements. Statements concerning proven and probable mineral reserves and mineral resource estimates may also be deemed to constitute forward‐looking statements to the extent that they involve estimates of the mineralization that will be encountered as and if the property is developed, and in the case of measured and indicated mineral resources or proven and probable mineral reserves, such statements reflect the conclusion based on certain assumptions that the mineral deposit can be economically exploited. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives or future events or performance (often, but not always, using words or phrases such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict", "forecast", "potential", "target", "intend", "could", "might", "should", "believe" and similar expressions) are not statements of historical fact and may be "forward‐looking statements".
Actual results may vary from forward‐looking statements. Forward‐looking statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results to materially differ from those expressed or implied by such forward‐looking statements, including but not limited to: the duration and effects of the COVID‐19, and any other pandemics on our operations and workforce, and the effects on global economies and society; general economic conditions including inflation risks; actual results of exploration activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; commodity prices; variations in ore reserves, grade or recovery rates; availability of sufficient water for operating purposes; actual performance of plant, equipment or processes relative to specifications and expectations; accidents; labour relations; relations with local communities; changes in national or local governments; changes in applicable legislation or application thereof; delays in obtaining approvals or financing or in the completion of development or construction activities; exchange rate fluctuations; requirements for additional capital; government regulation; environmental risks; reclamation expenses; outcomes of pending litigation; limitations on insurance coverage as well as those factors discussed in the section entitled "Description of the Business ‐ Risk Factors" in the Company's most recently filed AIF, available under the Company's profile on SEDAR+ at www.sedarplus.ca, and as an exhibit to the Company's most recently filed Form 40‐F available on EDGAR at www.sec.gov/edgar. Although First Majestic has attempted to identify important factors that could cause actual results to differ materially from those contained in forward‐looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.
The Company believes that the expectations reflected in these forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included herein should not be unduly relied upon. These statements speak only as of the date hereof. The Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by applicable laws.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/218501
FAQ
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