First Majestic Silver (TSX: FR) has released its unaudited condensed interim consolidated financial results for the first quarter ending March 31, 2024. Revenue for the quarter stood at $106.0 million, a decline from $157.0 million in Q1 2023. This decrease was primarily attributed to a 37% drop in the total number of payable silver equivalent (AgEq) ounces sold, resulting from the temporary suspension of mining activities at Jerritt Canyon gold mine in March 2023.
Despite the revenue decrease, the company saw positive shifts in other areas. The average price per AgEq ounce during the first quarter increased by 8% compared to Q1 2023, reaching $23.72. Operating cash flows before movements in working capital and taxes amounted to $12.6 million, down from $21.9 million in Q1 2023.
Mine operating earnings showed improvement, standing at $0.3 million loss compared to $6.4 million loss last year, mainly due to a decrease in operating loss of $29.7 million at Jerritt Canyon.
Net loss for the quarter totaled $13.6 million, translating to $0.05 loss per share, an improvement from a $100.7 million net loss, translating to $0.37 loss per share in Q1 2023. Adjusted net earnings, normalized for non-cash or non-recurring items, came in at negative $18.4 million, compared to $0.9 million earnings in Q1 2023.
As of March 31, 2024, the company held a cash and restricted cash balance of $229.3 million. As the firm previously reported, total production for the quarter reached 5.2 million AgEq ounces, in line with the 2024 guidance production plan.
However, cash costs for the quarter rose to $15.00 per AgEq ounce, compared to $13.01 per AgEq ounce in the previous quarter. This increase was mainly due to decreased production from San Dimas and the impact of the strengthening Mexican Peso.
All-in sustaining costs (AISC) for the quarter were $21.53 per AgEq ounce, up from $18.50 per AgEq ounce in the previous quarter, primarily due to higher cash costs, lower production, and the continued strength of the Mexican Peso.
Capital expenditures in the first quarter amounted to $28.2 million, with investments mainly directed towards underground development, exploration, and property, plant, and equipment.
The company also announced a cash dividend payment of $0.0037 per common share for the first quarter of 2024. The dividend will be paid to shareholders of record as of May 17, 2024, with payment expected on or about June 7, 2024.
The Jerritt Canyon gold mine is presently under temporary suspension, the company’s current emphasis lies on exploration, delineation, and expansion of mineral resources, alongside optimizing mine planning and plant operations.
First Majestic last traded at $9.95 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to any organization mentioned. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
