First Majestic Silver, listed on the NYSE as AG, has disclosed its operational and financial performance for the second quarter of 2024. Here is a refined account of the key highlights from the announcement:
In Q2 2024, First Majestic Silver achieved a production output of 5.3 million silver equivalent ounces, comprising 2,104,181 silver ounces and 39,339 gold ounces. This marked a notable 7% increase in silver ounces and a substantial 9% rise in gold ounces compared to the preceding quarter.
However, the company experienced a year-on-year decline in quarterly revenues, reporting $136.2 million in Q2 2024 as opposed to $146.7 million in the same period of 2023. This 7% decrease was primarily attributed to a reduction in sales volume due to elevated silver inventory levels, diminished production levels at specific mines like San Dimas and La Encantada, and the temporary halt of mining operations at Jerritt Canyon in March 2023. These factors were somewhat offset by increased production at Santa Elena and a rise in the average realized silver price.
Despite the annual decline, revenues for Q2 2024 exhibited a significant 28% increase compared to the previous quarter, Q1. The company disclosed that it held 729,771 silver ounces in finished goods inventory as of March 31, 2024, inclusive of coins and bullion, with a fair value of $17.9 million.
Cost-wise, First Majestic Silver reported consolidated cash costs of $15.00 per AgEq ounce, reflecting a marginal 1% reduction from Q1 2023. On the other hand, all-in sustaining costs stood at $21.53 per AgEq ounce, indicating a 3% increase from the preceding quarter.
As the quarter drew to a close, the company maintained a robust financial position, boasting a cash and restricted cash balance of $229.3 million. This sum comprised $102.1 million in cash and cash equivalents and $127.2 million in restricted cash.
In the market, First Majestic Silver’s stock (AG) experienced a 13% decline, trading at $7.31 as of noon.
This comprehensive overview sheds light on First Majestic Silver’s operational efficiency, financial stability, and stock performance during the second quarter of 2024.
