First Majestic Announces Record Financial Results for Q2 2025 and Quarterly Dividend Payment
First Majestic Announces Record Financial
Results for Q2 2025 and Quarterly Dividend
Payment
Vancouver, British Columbia--(Newsfile Corp. - August 14, 2025) - First Majestic Silver Corp. (NYSE:
AG) (TSX: AG) (FSE: FMV) (the
"
Company
"
or "First Majestic") is pleased to announce the Company's
unaudited condensed interim consolidated financial results for the second quarter ended June 30, 2025.
The full version of the financial statements and the accompanying management's discussion and
analysis can be viewed on the Company's website at
www.firstmajestic.com
or on SEDAR+ at
www.sedarplus.ca
and on EDGAR at
www.sec.gov/edgar
. All amounts are in U.S. dollars unless stated
otherwise.
SECOND QUARTER HIGHLIGHTS
Robust Silver Equivalent Production (+48% Y/Y):
The Company produced 7.9 million silver
equivalent ("AgEq") ounces, including 3.7 million silver ounces, in Q2 2025 representing a 48%
increase compared to 5.3 million silver equivalent ounces produced in Q2 2024.
Record Quarterly Revenue (+94% Y/Y):
For a second consecutive quarter, the Company
achieved a quarterly revenue record of $264.2 million (54% from silver sales), representing a 94%
increase compared to $136.2 million in the second quarter of 2024. This was primarily attributed to
a 42% increase in AgEq payable ounces sold and a 24% rise in the average realized silver price
which reached $34.62 per AgEq ounce during the quarter.
Higher Mine Operating Earnings (+$33.9 million Y/Y):
The Company achieved quarterly mine
operating earnings of $49.4 million, representing a significant increase compared to $15.5 million
in Q2 2024. Excluding non-cash depletion expense, the Company generated mine operating
earnings of $100.9 million.
Record Earnings Before Income Tax, Depreciation and Amortization ("EBITDA") (+$98.7
million Y/Y):
EBITDA for the quarter was a record $119.9 million, representing a significant
increase compared to $21.2 million in the second quarter of 2024.
Net Earnings (+$104.8 million Y/Y):
Net earnings for the quarter were $56.6 million (EPS of
$0.11) compared to a net loss of $48.3 million (EPS of ($0.17)) in the second quarter of 2024. The
increase in net earnings was primarily driven by higher mine operating earnings and benefitted
from a non-cash deferred income tax recovery of $39.6 million (EPS of $0.08), compared to a non-
cash deferred income tax expense of $22.6 million (EPS of ($0.08)) in the second quarter of 2024,
and was partially offset by a higher non-cash depletion and depreciation expense. Additionally, the
Company, as expected, incurred higher general and administrative costs related to the integration
of the Los Gatos Silver Mine. The Company expects to realize significant synergies and cost
reductions after the integration of Los Gatos is complete.
Adjusted Net Earnings (+$38.8 million Y/Y):
Adjusted net earnings, excluding non-cash or non-
recurring items such as deferred income tax, share-based payments, abnormal costs, and
unrealized gains/losses on marketable securities, were $18.4 million (adjusted EPS of $0.04),
representing a significant increase compared to the adjusted net loss of $20.4 million (adjusted
EPS of ($0.07)) in the second quarter of 2024.
Cash Flow from Operations (+$91.1 million Y/Y):
Operating cash flow before changes in
working capital and taxes in the quarter was a record $114.9 million or $0.24 per share,
representing a significant increase compared to $23.8 million or $0.08 per share in the second
quarter of 2024.
Record Free Cash Flow (+$71.4 million Y/Y):
The Company generated a quarterly record of
$77.9 million in free cash flow in the second quarter after making a $30.6 million income tax true-
up payment related to 2024 taxes, compared to $6.4 million in free cash flow in the second quarter
of 2024. A portion of this free cash flow is being reinvested into growth capital, primarily focused
on exploration and development projects, to enhance confidence in resource estimates and extend
the life-of-mine across the operations.
Record Cash Position:
During the quarter, the Company increased its treasury position to a
record total of $510.1 million, consisting of $384.8 million in cash and cash equivalents and $125.3
million in restricted cash. Liquidity also reached a record $583.8 million, consisting of $444.1
million of working capital and $139.6 million of undrawn revolving credit facility, excluding $125.3
million held in restricted cash.
Cash Costs (-1% Y/Y):
Consolidated cash costs of $15.08 per AgEq ounce for the quarter were
a slight improvement when compared with $15.29 per AgEq ounce in the second quarter of 2024.
All-In Sustaining Cost ("AISC") (-3% Y/Y):
Consolidated AISC in the quarter was $21.02 per
AgEq ounce, representing a 3% decrease from $21.64 per AgEq ounce in the second quarter of
2024.
Continued success at First Mint (+$4.5 million Y/Y)
: First Mint, LLC, the Company's 100%-
owned minting facility, generated quarterly sales of $7.8 million compared to $3.3 million in the
second quarter of 2024.
Held Inventory:
The Company held 424,272 silver ounces in finished goods inventory as at June
30, 2025, inclusive of coins and bullion. The fair value of this inventory at June 30, 2025 was $15.3
million, which was not included in revenue during the second quarter.
Sustainability Recognition:
As of July 2025, ISS ESG upgraded First Majestic to Prime ESG
investment status, recognizing the Company's strong sustainability performance. Additionally, First
Majestic scored 44/100 in the latest S&P Global Corporate Sustainability Assessment, ranking in
the top 26% of companies in the metals and mining industry.
Purchased Common Shares:
The Company purchased and cancelled an aggregate of 506,000
common shares at an average price of CAD$7.94 per share through the facilities of the TSX
pursuant to its normal course issuer bid during the second quarter of 2025.
Second Quarter Dividend:
The Company declared a cash dividend of $0.0048 per common
share for the second quarter of 2025 for shareholders of record as of the close of business on
August 29, 2025, to be paid out on or about September 15, 2025.
OPERATIONAL AND FINANCIAL HIGHLIGHTS
Key Performance Metrics
2025-Q2
2025-Q1
Change
Q2 vs Q1
2024-Q2
Change
Q2 vs Q2
Operational
(1)
Ore Processed / Tonnes Milled
1,003,804
944,373
6%
674,570
49%
Silver Ounces Produced
3,701,995
3,704,503
0%
2,104,181
76%
Gold Ounces Produced
33,865
36,469
(7%)
39,339
(14%)
Silver Equivalent Ounces Produced
7,852,311
7,711,709
2%
5,289,439
48%
Cash Costs per Silver Equivalent Ounce
(2)
$
15.08
$
13.68
10%
$
15.29
(1%)
All-in Sustaining Cost per Silver Equivalent Ounce
(2)
$
21.02
$
19.24
9%
$
21.64
(3%)
Total Production Cost per Tonne
(2)
$
104.45
$
97.71
7%
$
113.16
(8%)
Average Realized Silver Price per Silver Equivalent Ounce
(2)
$
34.62
$
32.50
7%
$
27.81
24%
Financial (in $millions)
Revenues
$
264.2
$
243.9
8%
$
136.2
94%
Mine Operating Earnings
$
49.4
$
63.8
(23%)
$
15.5
NM
Net Earnings (Loss)
$
56.6
$
6.2
NM
($48.3
)
NM
Operating Cash Flows before Non-Cash Working Capital and Taxes
$
114.9
$
110.0
4%
$
23.8
NM
Capital Expenditures
$
56.0
$
36.1
55%
$
28.3
98%
Cash and Cash Equivalents
$
384.8
$
351.3
10%
$
152.2
153%
Restricted Cash
$
125.3
$
106.1
18%
$
117.5
7%
Working Capital
(2)
$
444.1
$
404.8
10%
$
229.9
93%
EBITDA
(2)
$
119.9
$
98.8
21%
$
21.2
NM
Adjusted EBITDA
(2)
$
125.3
$
109.7
14%
$
26.4
NM
Free Cash Flow
(2)
$
77.9
$
43.5
79%
$
6.4
NM
Shareholders
Earnings (Loss) per Share ("EPS") - Basic
$
0.11
$
0.01
NM
($0.17
)
165%
Adjusted EPS
(1)
$
0.04
$
0.05
(20%)
($0.07
)
157%
NM - Not meaningful
1
.
Operational metrics calculated in the table above are reported on an attributable basis to account for the 70% ownership of the Los Gatos
Silver Mine.
2
.
The Company reports certain non-GAAP measures which include cash costs per AgEq ounce produced, cash costs per Au ounce produced,
AISC per AgEq ounce produced, all-in sustaining cost per Au ounce produced, total production cost per tonne, average realized silver price
per AgEq ounce sold, average realized Au price per ounce sold, working capital, adjusted EPS, EBITDA, adjusted EBITDA, and free cash
flow. These measures are widely used in the mining industry as a benchmark for performance, but do not have a standardized meaning under
the Company's financial reporting framework and the methods used by the Company to calculate such measures may differ from methods
used by other companies with similar descriptions. See "Non-GAAP Measures" at the end of this news release for further details of these
measures.
Key Performance Metrics
2025-Q2
2025-Q1
Change
Q2 vs Q1
2024-Q2
Change
Q2 vs Q2
SECOND QUARTER FINANCIAL RESULTS
The Company generated record quarterly revenue of $264.2 million in the second quarter of 2025,
with 54% derived from silver sales, representing a 94% increase compared to $136.2 million of
revenue generated in the same period in the prior year. This was primarily attributable to a 42%
increase in payable AgEq ounces sold, mainly driven by: the addition of the Los Gatos Silver Mine
to the Company's portfolio of operating mines, which contributed $103.1 million in revenue; a
notable 17% production increase at San Dimas, which contributed $65.1 million in revenue; and
continued strong performance at Santa Elena, which contributed $74.5 million in revenue. Further,
the average realized silver price increased by 24% during the quarter to $34.62 per ounce
compared to the second quarter of 2024.
For the second consecutive quarter, the Company reported a record-high treasury balance of
$510.1 million, despite making a $30.6 million tax installment payment and the 2024 annual bonus
payments, consisting of $384.8 million in cash and cash equivalents and $125.3 million in
restricted cash. This represents an increase of 65% compared to a total treasury balance of
$308.3 million at December 31, 2024 (consisting of $202.2 million in cash and cash equivalents
and $106.1 million in restricted cash). Additionally, working capital reached a record high of
$444.1 million, representing a 98% increase compared to $224.5 million in working capital at
December 31, 2024.
The Company achieved mine operating earnings of $49.4 million, representing a significant
increase of $33.9 million compared to mine operating earnings of $15.5 million in the second
quarter of 2024. The increase was mainly driven by the addition of the Los Gatos Silver Mine,
which contributed $20.6 million in mine operating earnings during the quarter. Additionally, the
improvement in performance at San Dimas and La Encantada increased mine operating earnings
by $6.7 million and $4.4 million, respectively, compared to the second quarter of 2024. These
increases in mine operating earnings were partially offset by higher contractor and energy costs at
San Dimas that supported improvements in production. Additionally, maintenance costs were
higher as a result of weather-related power outages at San Dimas, La Encantada and Los Gatos
in late June. Mine operating earnings were further impacted by a higher non-cash depletion
expense, primarily driven by the addition of Los Gatos and increased overall production.
Operating cash flow before changes in working capital and taxes in the quarter was a record
$114.9 million, representing a significant increase compared to $23.8 million in the second quarter
of 2024. This was primarily driven by the $76.0 million increase in mine operating earnings,
excluding depletion, depreciation and amortization, compared to the second quarter of 2024.
EBITDA for the quarter was a record $119.9 million, representing a significant increase compared
to $21.2 million in the second quarter of 2024. The increase in EBITDA was primarily attributable
to the increase in mine operating earnings.
Adjusted EBITDA normalized for non-cash or non-recurring items such as share-based payments,
abnormal costs, and unrealized gains on marketable securities for the quarter was $125.3 million,
representing a significant increase compared to $26.4 million in the second quarter of 2024.
Net earnings for the quarter were $56.6 million (EPS of $0.11) representing a significant increase
compared to a net loss of $48.3 million (EPS of ($0.17)) in the second quarter of 2024. The
increase in net earnings was primarily attributed to higher mine operating earnings compared to
the second quarter of 2024. This was partially offset by a non-cash depletion and depreciation
expense of $73.7 million (EPS of ($0.15)), compared to $31.6 million (EPS of ($0.11)) in the
second quarter of 2024 driven by higher production and the addition of Los Gatos, and a non-cash
deferred income tax recovery of $39.6 million (EPS of $0.08), compared to a non-cash deferred
income tax expense of $22.6 million (EPS ($0.08)) in the second quarter of 2024. Additionally, the
Company incurred higher general and administrative costs related to the integration of the Los
Gatos Silver Mine, including costs associated with insurance, travel, legal fees, system
implementation and consulting services. The Company expects to realize significant synergies and
cost reductions after the integration of Los Gatos is complete.
Adjusted net earnings normalized for non-cash or non-recurring items such as share-based
payments, unrealized losses on marketable securities, acquisition costs and deferred income tax
for the quarter ended June 30, 2025 was $18.4 million (adjusted EPS of $0.04), representing a
significant increase compared to the adjusted net loss of $20.4 million (adjusted EPS of ($0.07)) in
the second quarter of 2024.
SECOND QUARTER OPERATIONAL RESULTS
The table below represents the quarterly operating and cost performance results at each of the
Company's four producing mines during the quarter.
Second Quarter Production Summary
Los Gatos
(1)
Santa Elena
San Dimas
La Encantada
Consolidated
Ore Processed / Tonnes Milled
233,480
269,830
219,198
281,296
1,003,804
Silver Ounces Produced
1,524,949
306,224
1,242,717
628,105
3,701,995
Gold Ounces Produced
706
20,637
12,472
49
33,865
Silver Equivalent Ounces Produced
(2)
2,436,722
(3)
2,318,618
2,464,029
632,942
7,852,311
Cash Costs per Silver Equivalent Ounce
$12.44
$13.57
$15.66
$27.19
$15.08
AISC per Silver Equivalent Ounce
$13.70
$18.58
$20.10
$31.94
$21.02
Total Production Cost per Tonne
$91.65
$107.02
$173.88
$58.53
$104.45
1
.
All production and non-GAAP results shown in the table above are reported on an attributable basis to account for the Company's 70%
ownership of the Los Gatos Silver Mine through its joint venture ownership of the mine.
2
.
The metal prices that were used to calculate the silver equivalent ounces were, silver: $33.46/oz, gold: $3,270.57/oz, lead: $0.88/lb., zinc:
$1.20/lb.
3
.
Attributable silver equivalent ounces for Los Gatos includes 16,063,947 lbs. zinc and 9,014,545 lbs. lead (70%).
The Company produced 7.9 million attributable AgEq ounces in Q2 2025 representing a 48%
increase compared to 5.3 million AgEq ounces produced in Q2 2024.
Furthermore, the Company reported strong quarterly silver production of 3.7 million silver ounces
representing a 76% increase compared to 2.1 million silver ounces produced in Q2 2024. Total
silver production in the quarter included 1.5 million ounces of attributable silver production from Los
Gatos as well as a 9% increase at San Dimas compared to Q2 2024 primarily due to operational
improvements.
Consolidated cash cost per attributable payable AgEq ounce for the quarter was $15.08,
representing a slight improvement when compared with $15.29 per ounce in the second quarter of
2024. The decrease in cash costs per AgEq ounce was primarily due to a 48% increase in AgEq
ounces produced, driven by the attributable production increase of 2.4 million AgEq ounces from
Los Gatos, along with a 17% increase in AgEq production at San Dimas as a result of operational
efficiencies and increased plant throughput rates. The decrease was partially offset by higher
contractor and energy costs at San Dimas that helped improve and support production, as well as
higher maintenance costs as a result of weather-related power outages at San Dimas, La
Encantada and Los Gatos in late June.
AISC per attributable payable AgEq ounce in the second quarter of 2025 was $21.02,
representing a 3% decrease compared to $21.64 per ounce in the second quarter of 2024. This
was primarily attributable to the decrease in cash costs, partially offset by an increase in profit
sharing per AgEq ounce relating to the prior year, which was paid in the quarter.
Q2 2025 DIVIDEND ANNOUNCEMENT
The Company is pleased to announce that its Board of Directors has declared a cash dividend in the
amount of $0.0048 per common share for the second quarter of 2025. The dividend will be paid to
holders of record of First Majestic's common shares as of the close of business on August 29, 2025, and
will be paid out on or about September 15, 2025.
Under the Company's dividend policy, the quarterly dividend per common share is targeted to equal
approximately 1% of the Company's net quarterly revenues divided by the Company's then outstanding
common shares.
Note:
In the case of net revenues generated from the Los Gatos Silver Mine (the
Company holds a 70% interest in the Los Gatos Joint Venture that owns and operates the mine), 70%
of the net revenue from such mine, being the revenue that is attributable to the Company,
is used for
the purposes of the Company's quarterly dividend calculation
.
The amount and distribution dates of future dividends remain at the discretion of the Board of Directors.
This dividend qualifies as an "eligible dividend" for Canadian income tax purposes. Dividends paid to
shareholders outside Canada (non-resident investors) may be subject to Canadian non-resident
withholding taxes.
CONFERENCE CALL DETAILS
The Company will host a conference call and webcast on
Thursday, August 14, 2025, at 8:30 a.m.
(PT) / 11:30 a.m. (ET)
to provide investors and analysts with a business update, and to discuss its
second quarter production and earnings results and updated 2025 guidance.
To participate in the conference call, please use the following dial-in numbers:
Canada & USA Toll-Free:
+1-833-752-3407
Outside of Canada & USA:
+1-647-846-2866
Toll-Free Germany:
+49-69-1741-5718
Toll-Free UK:
+44-20-3795-9972
Participants should dial-in at least 15 minutes prior to the start of the call to ensure placement in the
conference on time.
The live webcast link of the call will be accessible directly at this link,
Q2 2025 Results Conference Call
,
as well as on the First Majestic home page at
www.firstmajestic.com
through the "August 14, 2025
Webcast Link".
A webcast archive will be available approximately one hour after the end of the event and
will be accessible for three months through the same link as the live event.
A recording of the conference call will be available for telephone replay approximately one hour after the
end of the event by calling:
USA & Canada Toll-Free:
+1-855-669-9658
Outside of Canada & US:
+1-412-317-88
Access Code:
1902689
The telephone replay will be available for seven days following the end of the event.
ABOUT FIRST MAJESTIC
First Majestic is a publicly traded mining company focused on silver and gold production in Mexico and
the United States. The Company presently owns and operates four producing underground mines in
Mexico: the Los Gatos Silver Mine (the Company holds a 70% interest in the Los Gatos Joint Venture
that owns and operates the mine), the Santa Elena Silver/Gold Mine, the San Dimas Silver/Gold Mine,
and the La Encantada Silver Mine, as well as a portfolio of development and exploration assets,
including the Jerritt Canyon Gold project located in northeastern Nevada, U.S.A.
First Majestic is proud to own and operate its own minting facility, First Mint, LLC, and to offer a portion
of its silver production for sale to the public. Bars, ingots, coins and medallions are available for
purchase online at
www.firstmint.com
, at some of the lowest premiums available.
For further information, contact
, visit our website at
www.firstmajestic.com
or call
our toll free number 1.866.529.2807.
FIRST MAJESTIC SILVER CORP.
"signed"
Keith Neumeyer, President & CEO
Non-GAAP Financial Measures
This news release includes reference to certain financial measures which are not standardized
measures under the Company's financial reporting framework. These measures include cash costs per
silver equivalent ounce produced, all-in sustaining cost (or "AISC") per silver equivalent ounce produced,
cash costs per gold ounce produced, AISC per gold ounce produced, total production cost per tonne,
average realized silver price per ounce sold, average realized gold price per ounce sold, working
capital, adjusted net earnings and EPS, EBITDA, adjusted EBITDA, and free cash flow. The Company
believes that these measures, together with measures determined in accordance with IFRS, provide
investors with an improved ability to evaluate the underlying performance of the Company. These
measures are widely used in the mining industry as a benchmark for performance but do not have any
standardized meaning prescribed under IFRS, and therefore they may not be comparable to similar
measures disclosed by other companies. The data is intended to provide additional information and
should not be considered in isolation or as a substitute for measures of performance prepared in
accordance with IFRS. For a complete description of how the Company calculates such measures and a
reconciliation of certain measures to GAAP terms please see "Non-GAAP Measures" in the Company's
most recent management discussion and analysis filed on SEDAR+ at
www.sedarplus.ca
and EDGAR
at
www.sec.gov
.
Cautionary Note Regarding Forward-Looking Statements
This news release contains "forward-looking information" and "forward-looking statements" under
applicable Canadian and U.S. securities laws (collectively, "forward-looking statements"). These
statements relate to future events or the Company's future performance, business prospects or
opportunities that are based on forecasts of future results, estimates of amounts not yet determinable
and assumptions of management made in light of management's experience and perception of historical
trends, current conditions and expected future developments. Forward-looking statements in this news
release include, but are not limited to, statements with respect to: the timing for the Company's dividend
payment for the second quarter of 2025 and the shareholder record and payable dates in connection
with such dividend payment; and anticipated future results. Assumptions may prove to be incorrect and
actual results may differ materially from those anticipated. As such, investors are cautioned not to place
undue reliance upon forward-looking statements as there can be no assurance that the plans,
assumptions or expectations upon which they are placed will occur. All statements other than statements
of historical fact may be forward-looking statements. Statements concerning proven and probable
mineral reserves and mineral resource estimates may also be deemed to constitute forward- looking
statements to the extent that they involve estimates of the mineralization that will be encountered as and
if the property is developed, and in the case of measured and indicated mineral resources or proven and
probable mineral reserves, such statements reflect the conclusion based on certain assumptions that the
mineral deposit can be economically exploited. Any statements that express or involve discussions with
respect to predictions, expectations, beliefs, plans, projections, objectives or future events or
performance (often, but not always, using words or phrases such as "seek", "anticipate", "plan",
"continue", "estimate", "expect", "may", "will", "project", "predict", "forecast", "potential", "target",
"intend", "could", "might", "should", "believe" and similar expressions) are not statements of historical
fact and may be "forward-looking statements".
Actual results may vary from forward-looking statements. Forward-looking statements are subject to
known and unknown risks, uncertainties and other factors that may cause actual results to materially
differ from those expressed or implied by such forward-looking statements, including but not limited to:
the duration and effects of the coronavirus and COVID-19, and any other pandemics on our operations
and workforce, and the effects on global economies and society; general economic conditions including
inflation risks; actual results of exploration activities; conclusions of economic evaluations; changes in
project parameters as plans continue to be refined; commodity prices; variations in ore reserves, grade
or recovery rates; actual performance of plant, equipment or processes relative to specifications and
expectations; accidents; labour relations; relations with local communities; changes in national or local
governments; changes in applicable legislation or application thereof; delays in obtaining approvals or
financing or in the completion of development or construction activities; exchange rate fluctuations;
requirements for additional capital; government regulation; environmental risks; reclamation expenses;
outcomes of pending litigation; limitations on insurance coverage as well as those factors discussed in
the section entitled "Description of the Business - Risk Factors" in the Company's most recent Annual
Information Form for the year ended December 31, 2024 filed with the Canadian securities regulatory
authorities under the Company's SEDAR+ profile at
www.sedarplus.ca
, and in the Company's Annual
Report on Form 40-F for the year ended December 31, 2024 filed with the United States Securities and
Exchange Commission on EDGAR at
www.sec.gov/edgar
. Although First Majestic has attempted to
identify important factors that could cause actual results to differ materially from those contained in
forward-looking statements, there may be other factors that cause results not to be as anticipated,
estimated or intended.
The Company believes that the expectations reflected in these forward-looking statements are
reasonable, but no assurance can be given that these expectations will prove to be correct and such
forward-looking statements included herein should not be unduly relied upon. These statements speak
only as of the date hereof. The Company does not intend, and does not assume any obligation, to
update these forward-looking statements, except as required by applicable laws.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/262456