FULL DISCLOSURE: This is sponsored content for First Majestic Silver Corp.
First Majestic Silver (TSX: AG) (NYSE: AG) today reported its fourth quarter and full year 2024 production figures, highlighted by the company achieving guidance with total production of 21.7 million silver equivalent ounces for the year.
Production in the fourth quarter came in at 5.7 million ounces, consisting of 2.4 million ounces of silver and a further 39,506 ounces of gold. The figures represent a 4% improvement on a quarter over quarter basis when compared to the 5.5 million silver equivalent ounces produced in the third quarter of 2024.
For the full year, silver equivalent production totaled 21.7 million ounces, consisting of 8.4 million ounces of silver and 156,542 ounces of gold. Guidance had called for production between 21.4 to 22.6 million silver equivalent ounces.
The full year performance was highlighted by record production that was achieved at First Majestic’s Santa Elena mine, which produced 10.3 million silver equivalent ounces in 2024. The figure represents 7% growth on a year over year basis, which was attributed to continued optimization of the dual circuit and filter press, which led to higher recovery rates.
The Santa Elena property this year notably saw the discovery of the high-grade gold and silver vein system referred to as Navidad, which was found adjacent to the Ermitaño mine. The discovery, announced this past July, is highlighted by intercepts that include 472 g/t silver and 8.15 g/t gold over 4.78 metres true width in hole EW-24-364, and 86 g/t silver and 10.13 g/t gold over 4.42 metres true width in hole EW-24-370, among other results.
READ: First Majestic Expands Silver Portfolio Amid A Global Supply Deficit
2024 also saw the commissioning and launch of First Mint in Nevada, along with the announced acquisition of Gatos Silver. First Mint, which is First Majestic’s wholly owned and operated minting facility, is expected to enable the company to sell a higher portion of its silver production directly to consumers, while capturing a higher margin than it would otherwise receive on each ounce sold.
The acquisition of Gatos Silver meanwhile is expected to substantially increase First Majestic’s production profile, with the two entities having combined annual production of between 30 and 32 million ounces of silver equivalent. Pro forma production is expected to maintain a peer-leading exposure to silver for investors, with over 50% of revenue expected to be derived from silver, versus an average of 30% among intermediate silver producers.
“First Majestic delivered robust and safe production in 2024. Our team demonstrated improved production and operational discipline quarter-over-quarter, ending the year with 21.7 million silver equivalent ounces and meeting our revised annual production guidance. Santa Elena continues to be the bright spot in our portfolio having produced over 10 million silver equivalent ounces in the year, a significant milestone in this district’s history,” commented Keith Neumeyer, CEO of First Majestic.
Full financial results for the fourth quarter and full year 2024 are expected to be released on February 20, 2025.
First Majestic Silver last traded at $8.31 on the TSX.
FULL DISCLOSURE: First Majestic Silver Corp is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover First Majestic Silver Corp on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.
