First Majestic Silver (AG) Q3 2024 earnings summary

Executive summary

• Produced 5.5 million silver equivalent ounces in Q3 2024, up 4% sequentially from Q2 2024, with 1,967,574 silver ounces and 41,761 gold ounces.

• Revenue rose 10% year-over-year to $146.1 million, driven by higher realized silver prices despite lower production at San Dimas and higher inventory at quarter-end.

• Mine operating earnings increased 119% year-over-year to $28.5 million, mainly due to higher prices and strong performance at Santa Elena.

• Operating cash flow before working capital and taxes was $39.8 million, up 181% year-over-year, aided by higher mine earnings and reduced restructuring and G&A costs.

• Declared a Q3 2024 dividend of $0.0048 per share, payable November 29, 2024.

Financial highlights

• EBITDA reached $36.9 million, up from $11.5 million in Q3 2023; adjusted EBITDA was $39.8 million, up 66% year-over-year.

• Net loss was $26.6 million (EPS of $(0.09)), nearly flat year-over-year, impacted by non-cash FX losses and deferred tax expense.

• Adjusted net loss was $10.5 million (adjusted EPS of $(0.03)), slightly improved from Q3 2023.

• Cash and cash equivalents stood at $154.7 million, up 12% year-over-year; working capital increased 20% to $238.2 million.

• Free cash flow was $31.3 million, significantly higher than $6.4 million in Q3 2023.

Outlook and guidance

• The merger with Gatos Silver is expected to close in early 2025, pending regulatory and shareholder approvals.

• Dividend policy targets approximately 1% of net quarterly revenues per share, with future dividends at the Board's discretion.