First Majestic Announces Record Free Cash Flow for Q4 2024, FY 2024 Financial Results and Quarterly Dividend Payment
First Majestic Announces Record Free Cash
Flow for Q4 2024, FY 2024 Financial Results
and Quarterly Dividend Payment
Vancouver, British Columbia--(Newsfile Corp. - February 20, 2025) - First Majestic Silver Corp. (NYSE:
AG) (TSX: AG) (FSE: FMV) (the
"
Company
"
or "First Majestic") is pleased to announce the Company's
audited consolidated financial results for the fourth quarter ended December 31, 2024. 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 under the Company's profile on SEDAR+ at
www.sedarplus.ca
and on EDGAR at
www.sec.gov/edgar.
All amounts are in U.S. dollars unless stated
otherwise.
FOURTH QUARTER HIGHLIGHTS
Record Free Cash Flow (+119% Q/Q):
The Company realized $68.4 million in free cash flow in
the fourth quarter, compared to $31.3 million in the previous quarter. The improvement in free cash
flow was driven by improved silver equivalent ("AgEq") production, higher realized silver prices
and lower costs during the quarter.
Strengthened Cash Position (+19% Q/Q):
At the end of the year, the Company had a cash and
restricted cash balance of $308.3 million consisting of $202.2 million cash and cash equivalents
and $106.1 million of restricted cash. The Company also ended the year with a strong liquidity
position of $364.2 million consisting of $224.5 million in working capital and $139.6 million of
available, undrawn revolving credit facility.
Increased Revenue (+18% Q/Q):
In the fourth quarter, the Company generated revenues of
$172.3 million, up 18% compared to the third quarter of 2024.
Improved Mine Operating Earnings (+69% Q/Q):
The Company realized mine operating
earnings of $48.2 million compared to $28.5 million in the previous quarter.
Increased Earnings Before Income Tax, Depreciation and Amortization ("EBITDA") (+68%
Q/Q):
EBITDA for the quarter was $62.0 million compared to $36.9 million in the previous quarter.
Improved Cash Cost (-9% Q/Q):
Consolidated cash cost of $13.82 per AgEq ounce for the
quarter represented a 9% improvement from $15.17 per AgEq ounce in the previous quarter.
Decreased All-in Sustaining Cost ("AISC") (-3% Q/Q):
Consolidated AISC in the fourth quarter
was $20.34 per AgEq ounce, representing a 3% decrease from $21.03 per AgEq ounce in the
previous quarter.
Record Quarterly Sales at First Mint (+237% Q/Q)
: First Mint, LLC, the Company's 100%-
owned minting facility, set a new record for quarterly sales of $9.1 million compared to $2.7 million
in the previous quarter.
Purchased Common Shares:
The Company purchased and cancelled an aggregate of 50,000
common shares at an average price of CAD$7.81 per share during the quarter.
Fourth Quarter Dividend:
The Company declared a cash dividend of $0.0057 per common
share for the fourth quarter of 2024 for shareholders of record as of the close of business on
February 28, 2025, to be paid out on or about March 14, 2025.
2024 HIGHLIGHTS
Achieved Annual Production and Cost Guidance:
The Company produced 21.7 million AgEq
ounces, consisting of 8.4 million silver ounces and 156,542 gold ounces at an average AISC of
$21.11 while setting "best in class" record safety performance.
Increased Cash Flow from Operations (+40% Y/Y):
The Company realized strong operating
cash flows before working capital and taxes of $138.6 million, compared to $99.2 million in 2023.
Realized Strong Revenues (-2% Y/Y):
The Company generated annual revenues of $560.6
million, compared to $573.8 million in 2023.
Improved Mine Operating Earnings (+259% Y/Y):
The Company realized mine operating
earnings of $91.9 million compared to $25.6 million in 2023.
Increased EBITDA (+404% Y/Y):
EBITDA for the year ended December 31, 2024 was $127.1
million, compared to a $41.8 million loss in 2023.
Held silver and gold inventory
: At the end of the year, the Company held 539,153 ounces of
silver and 2,595 ounces of gold bullion inventory with a total fair value of $22.4 million.
Improved Sustainability Score:
First Majestic achieved a score of 37 in the S&P Global
Corporate Sustainability Assessment ("CSA") published on October 31, 2024, a 32%
improvement over our 2023 performance. The Company's 2024 score places First Majestic in the
top third of the mining and metals industry. Improvements were equally reflected across all three
categories of the CSA - Environmental, Social, and Governance & Economic. The assessment
noted significant improvements in First Majestic's Risk & Crisis Management, Business Ethics, IT
Security, Water Management, Human Rights and Labour Practices.
Cash Paid Dividends:
The Company paid $5.3 million in quarterly dividends to shareholders
during 2024.
Acquired Gatos Silver, Inc. ("Gatos"):
On January 16, 2025, the Company completed the
acquisition of 100% of the issued and outstanding shares of common stock of Gatos, in exchange
for 177,433,006 common shares of First Majestic for a total merger consideration of $1.07 billion,
pursuant to a Merger Agreement previously announced on
September 5, 2024
. Gatos holds a 70%
joint venture interest in the Cerro Los Gatos Silver Mine, an underground silver mine in Chihuahua,
Mexico together with Japan's Dowa Metals & Mining Co., Ltd., which holds the remaining 30%
interest.
OPERATIONAL AND FINANCIAL HIGHLIGHTS
Key Performance Metrics
2024-Q4
2024-Q3
Change
Q4 vs Q3
2023-Q4
Change Q4 vs
Q4
Operational
Ore Processed / Tonnes Milled
745,124
678,397
10%
652,731
14%
Silver Ounces Produced
2,353,865
1,967,574
20%
2,612,416
(10%)
Gold Ounces Produced
39,506
41,761
(5%)
46,585
(15%)
Silver Equivalent Ounces Produced
5,713,289
5,490,416
4%
6,640,550
(14%)
Cash Costs per Silver Equivalent Ounce
(1)
$13.82
$15.17
(9%)
$13.01
6%
All-in Sustaining Cost per Silver Equivalent Ounce
(1)
$20.34
$21.03
(3%)
$18.50
10%
Total Production Cost per Tonne
(1)
$96.63
$109.81
(12%)
$122.76
(21%)
Average Realized Silver Price per Silver Equivalent Ounce
(1)
$30.80
$29.84
3%
$24.16
27%
Financial (in $millions)
Revenues
$172.3
$146.1
18%
$136.9
26%
Mine Operating Earnings
$48.2
$28.5
69%
$17.9
169%
Net (Loss) Earnings
($13.5)
($26.6)
49%
$10.2
NM
Operating Cash Flows before Non-Cash Working Capital and Taxes
$62.4
$39.8
57%
$36.3
72%
Capital Expenditures
$36.1
$34.7
4%
$31.6
14%
Cash and Cash Equivalents
$202.2
$154.7
31%
$125.6
61%
Restricted Cash
$106.1
$103.9
2%
$125.6
(16%)
Working Capital
(1)
$224.5
$238.2
(6%)
$188.9
19%
Earnings before Interest, Tax, Depreciation and Amortization ("EBITDA")
(1)
$62.0
$36.9
68%
$33.4
85%
Adjusted EBITDA
(1)
$64.8
$39.8
63%
$37.0
75%
Free Cash Flow
(1)
$68.4
$31.3
119%
$3.8
NM
Shareholders
(Loss) Earnings per Share ("EPS") - Basic
($0.04)
($0.09)
56%
$0.04
(200%)
Adjusted EPS
(1)
$0.03
($0.03)
200%
($0.03)
200%
NM - Not meaningful
(1)
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.
FOURTH QUARTER FINANCIAL RESULTS
The Company generated revenues of $172.3 million during the quarter, a 26% increase compared
to $136.9 million of revenues generated in the fourth quarter of 2023. This was primarily attributed
to higher average realized silver prices, partially offset by a decrease in payable AgEq ounces
sold primarily due to lower production levels at San Dimas and higher inventory levels held at the
end of the fourth quarter of 2024.
The Company realized mine operating earnings of $48.2 million compared to $17.9 million in the
fourth quarter of 2023, representing an increase of 169%. The increase in mine operating earnings
was primarily attributed to a 51% increase in operating earnings at Santa Elena when compared
to the fourth quarter of 2023, driven by higher average realized silver prices in the fourth quarter of
2024.
EBITDA for the quarter was $62.0 million compared to $33.4 million in the fourth quarter of 2023.
The increase in EBITDA was primarily attributable to the increase in mine operating earnings and
lower restructuring costs related to workforce optimization mainly at San Dimas, compared to the
fourth quarter of 2023.
Adjusted EBITDA, excluding non-cash or non-recurring items such as share-based payments and
unrealized losses on marketable securities for the quarter ended December 31, 2024, was $64.8
million compared to $37.0 million in the fourth quarter of 2023.
Net loss for the quarter was $13.5 million (EPS of ($0.04)) compared to net earnings of $10.2
million (EPS of $0.04) in the fourth quarter of 2023. Net loss for the quarter includes non-cash
foreign exchange loss of $3.1 million (EPS of ($0.01)) and non-cash deferred income tax expense
of $18.3 million (EPS of ($0.06)), relating primarily to the weakening of the Mexican peso at the
end of the quarter compared to the fourth quarter of 2023 and valuation of certain Mexican tax loss
carryforwards. On December 31, 2024, the Company held $151.4 million of its cash and value
added taxes receivable in Mexican pesos (there is a $9.3 million non-cash impact on the
Company's reported net earnings or loss per 10% change in the value of the Mexican peso against
the U.S. dollar). The net loss this quarter was primarily attributed to a $40.5 million increase in non-
cash deferred income tax expense partially offset by a $30.3 million increase in mine operating
earnings as compared to the same quarter of the prior year.
Adjusted net earnings, normalized for non-cash or non-recurring items such as share-based
payments, unrealized losses on marketable securities, and deferred income tax for the quarter
ended December 31, 2024, was $7.6 million (adjusted EPS of $0.03) compared to an adjusted
net loss of $8.3 million (adjusted EPS of ($0.03)) in the fourth quarter of 2023.
The Company's total capital expenditures in the fourth quarter of 2024 were $36.1 million (Q4 2023
- $31.6 million) consisting of $13.6 million for underground development (Q4 2023 - $12.4 million),
$11.9 million in exploration (Q4 2023 - $5.3 million), and $10.7 million in property, plant and
equipment (Q4 2023 - $13.8 million).
2024 FINANCIAL RESULTS
The Company generated annual revenues of $560.6 million in 2024, 2% lower compared to 2023
due to a 20% decrease in the total number of payable AgEq ounces sold, primarily as a result of
the temporary suspension of mining operations at Jerritt Canyon in March 2023. This was partially
offset by an increase in payable AgEq ounces produced at Santa Elena, and a 21% increase in
the average realized silver price.
Annual mine operating earnings increased to $91.9 million compared to $25.6 million in 2023. The
significant improvement in mine operating earnings was primarily driven by a 73% increase in
operating earnings at Santa Elena compared to the prior year, attributable to stronger metal
recoveries and throughput from Ermitaño that enabled the mine to achieve a new annual
production record. In addition, cost efficiency measures implemented by the Company helped
offset the strengthening of the Mexican peso in the first half of the year.
Operating cash flow before changes in working capital and taxes during the year was $138.6
million compared to $99.2 million in the prior year, representing a 40% increase.
Adjusted net earnings for the year, excluding non-cash or non-recurring items such as share-based
payments, unrealized losses on marketable securities, and deferred income tax were $(41.8)
million, or $(0.14) per share, compared to $(23.8) million, or $(0.08) per share in 2023.
The Company ended 2024 with a strong treasury of $308.3 million, consisting of $202.2 million in
cash and cash equivalents, as well as $106.1 million in restricted cash. The Company also ended
the year with working capital of $224.5 million.
AMENDMENTS TO SHARE REPURCHASE PROGRAM
The Company also announces that it has amended its existing Normal Course Issuer Bid (the "Share
Repurchase Program"). As a result of the amendments, in addition to repurchases over the facilities of
the Toronto Stock Exchange and/or alternative Canadian trading systems, the Share Repurchase
Program now permits the Company to purchase its common shares pursuant to off-market transactions.
The purchase price for such off-market transactions may be below the market price of the Company's
common shares. All purchases made pursuant to the Share Repurchase Program will be completed in
accordance with applicable securities laws.
CONFERENCE CALL DETAILS
The Company will host a conference call and webcast on
Thursday, February 20, 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 2024
earnings and production results and 2025 production and cost guidance.
To participate in the conference call, please use the following dial-in numbers:
Canada & USA Toll-Free:
1-844-763-8274
Outside of Canada & USA:
+1-647-484-8814
Toll-Free Germany:
+49-69-17415718
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.
A live webcast of the call will be accessible through the "February 20, 2025 Webcast Link" on the First
Majestic home page at
www.firstmajestic.com
. 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:
+1-412-317-0088
Access Code:
7307775
The telephone replay will be available for seven days following the end of the event.
Q4 2024 DIVIDEND ANNOUNCEMENT
The Company is pleased to announce that its Board of Directors has declared a cash dividend in the
amount of $0.0057 per common share for the fourth quarter of 2024. The dividend will be paid to holders
of record of First Majestic's common shares as of the close of business on February 28, 2025, and will
be paid out on or about March 14, 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 number of the Company's
common shares outstanding on the record date.
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.
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 Cerro 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 fourth
quarter dividend payment and the shareholder record and payable dates in connection with such
dividend payment; and the timing for the consolidation of Gatos' financial and operating results into the
Company's financial statements. 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, 2023 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, 2023 filed with the United States Securities and
Exchange Commission on EDGAR at
http://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/241607