FULL DISCLOSURE: This is sponsored content for First Majestic Silver Corp.
First Majestic Silver (TSX: AG) (NYSE: AG) has reported its first quarter financial results, with the company setting several new records in the quarter as their financial performance continues to improve. The results were toplined by record revenue of $243.9 million, an increase of 130% on a year over year basis from $106.0 million in Q1 of 2024.
Revenue during the quarter was largely derived from silver sales, with the metal accounting for 57% of all metal sales. First Mint also saw substantial growth during the first quarter, posting revenue of $7.9 million, versus $1.0 million in the first quarter last year. The ounces sold through First Mint accounted for 7% of the company’s total silver production this quarter.
First Majestic’s record revenue meanwhile led to record mine operating earnings, which came in at $63.8 million, versus negative $0.3 million in the year ago period. The dramatic improvement here was credited to a 64% improvement in silver equivalent ounces sold, a result of First Majestic closing on the purchase of Gatos Silver during the first quarter, and improved production at San Dimas, as well as a higher average realized silver price.
Net earnings came in at $6.2 million, or $0.01 per share, as compared to a loss of $13.6 million, or $0.05 per share, in the first quarter of 2024. On an adjusted basis, earnings per share rose to $0.05, versus negative $0.06 in the year ago period. EBITDA meanwhile improved 1,397%, moving from $6.6 million to $98.8 million on a year over year basis, setting a new record for the company, while Adjusted EBITDA, excluding share-based payments, unrealized losses on marketable securities, and acquisition costs, improved from $12.0 million to $109.7 million.
Cash flows also hit a new record in the first quarter, with cash flows from operations hitting $110.0 million, an improvement of 773% year over year from $12.6 million. Free cash flow meanwhile grew from $0.9 million in the first quarter of 2024 to $43.5 million in the first quarter of 2025, which is after paying out $28.0 million in income taxes during the quarter.
The strong improvement in cash flows lead to First Majestic hitting an all time high in terms of cash and restricted cash on the balance sheet, which came in at $462.6 million as of quarter end. Total liquidity meanwhile sits at a record $544.4 million, which consists of $404.8 million in working capital and $139.6 million from an undrawn credit facility, while excluding $111.3 million of restricted cash.
In terms of shareholder returns, 262,500 shares were repurchased under a buyback program during the quarter at an average price of C$8.20 a share. Post quarter-end a further 331,000 shares were repurchased at an average price of C$8.00 per share. First Majestic also declared a $0.0045 dividend for the first quarter to be paid out on or about May 30, 2025.
“We have hit multiple record financial metrics including a record $110 million in cash flow from operations and the highest treasury balance in the Company’s 21+ year history, our balance sheet has never been stronger, and we are on track to have a stellar year. Our focus remains to deliver on our commitments in producing safe and profitable ounces,” commented Keith Neumeyer, CEO of First Majestic.
From an operational perspective. First Majestic produced 7.7 million silver equivalent ounces in the first quarter, including a record 3.7 million silver ounces alongside 36,469 gold ounces. Overall production improved by 52% on year over year basis, while accounting for 26% of the midpoint of 2025 guidance.
Cost efficiency also improved during the quarter, with cash costs per silver equivalent ounce falling 9% year over year from $15.00 to $13.68 an ounce. All in sustaining costs also improved, dropping from $21.53 to $19.24 an ounce, an 11% improvement. Average realized silver prices meanwhile ballooned 37% year over year, climbing from $23.72 to $32.50 an ounce in the first quarter.
First Majestic Silver last traded at $8.64 on the TSX.
FULL DISCLOSURE: First Majestic Silver Corp. is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of First Majestic Silver Corp. 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. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.
