FR:CC - First Majestic Silver: Another Disappointing Year

2024-02-25 03:55:52 ET

Summary

• First Majestic Silver reported a significant decline in annual gold production, with Jerritt Canyon taken offline, resulting in a sharp drop in silver-equivalent production and revenue.
• Meanwhile, the company saw another free cash outflow and continued to be quite active on its ATM, resulting in continued declines in per-share metrics with lower production/higher share count.
• In this update, we'll dig into the Q4 and FY2023 results, recent developments, and see whether First Majestic is finally sitting at a level where it's worthy of investment.

We're more than halfway through the Q4 earnings season for the precious metals sector, and one of the most recent companies to report its results is First Majestic Silver ( AG ). The company had another difficult year with annual silver production declining yet again to ~10.3 million ounces, and gold production also declined sharply, resulting in a significant decrease in silver-equivalent production [SEO] and annual revenue. For those following the story, much of the dip in gold and SEO production can be attributed to moving Jerritt Canyon into care & maintenance, which has improved the company's operating costs given that this was its highest-cost operation....

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