First Majestic Silver Q2: 5.3M Silver Equivalent Ounces, Revenue Drop, 13% Stock Decline

2 min read | August 01, 2024 05:00 PM AEST | By Team Kalkine Media

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First Majestic Silver Q2: 5.3M Silver Equivalent Ounces, Revenue Drop, 13% Stock Decline — Image source: shutterstock.com

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First Majestic Silver produced 5.3 million silver equivalent ounces in Q2, reflecting increases in both silver and gold production.
Quarterly revenues decreased by 7% year-on-year due to lower sales and production disruptions, despite a 28% rise from the previous quarter.
Cash and restricted cash balances totaled $229.3 million, while stock price dropped 13% to $7.31 following the earnings report.

First Majestic Silver (NYSE:AG) reported its second-quarter production figures, announcing a total of 5.3 million silver equivalent ounces. This total includes 2,104,181 silver ounces and 39,339 gold ounces, representing increases of 7% and 9%, respectively, compared to the first quarter of 2024.

However, quarterly revenues experienced a decline compared to the same period last year, falling to $136.2 million from $146.7 million in Q2 2023. This 7% decrease in revenue was attributed to a 15% drop in the total number of payable silver equivalent ounces sold. Contributing factors include higher silver inventory levels at the end of the quarter, reduced production at San Dimas and La Encantada, and the temporary suspension of mining at Jerritt Canyon in March 2023. These factors were partially offset by increased production at Santa Elena and a rise in the average realized silver price.

Revenue for Q2 showed a 28% improvement over the previous quarter, Q1 2024. The company reported holding 729,771 silver ounces in finished goods inventory as of March 31, 2024, including coins and bullion. The fair value of this inventory was noted as $17.9 million.

The consolidated cash costs were $15.00 per silver equivalent ounce, reflecting a 1% decrease, while all-in sustaining costs were $21.53 per silver equivalent ounce, marking a 3% increase compared to Q1 2023.

At the close of the quarter, the company had a cash and restricted cash balance totaling $229.3 million, comprised of $102.1 million in cash and cash equivalents and $127.2 million in restricted cash.

As of noon, First Majestic Silver’s stock had declined by 13%, trading at $7.31.

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