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First Majestic (AG) 2023 Silver-Equivalent Production Falls Y/Y

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First Majestic Silver Corp. (AG - Free Report) announced that its total production reached 6.6 million silver equivalent (AgEq) ounces in the fourth quarter of 2023. The figure consists of 2.6 million silver ounces and 46,585 gold ounces.

AgEq ounces produced moved up 6% from the third quarter of 2023. The 4% rise in gold output was offset by a 7% drop in silver production. The increased production was driven by Santa Elena's record quarterly production, somewhat offset by lower silver production at La Encantada due to persistent water scarcity.

In the fourth quarter of 2023, the San Dimas mine produced 3,110,677 AgEq ounces consisting of 1,513,791 ounces of silver and 18,468 ounces of gold. This marked a 2% decrease and a 3% increase, respectively, sequentially.

The Santa Elena mine produced a record 3,008,449 AgEq ounces, consisting of 582,484 ounces of silver and 28,056 ounces of gold. The silver production marked a 67% increase from the third quarter of 2023, backed by higher silver grades and recoveries in the period, whereas the gold production fell 1% sequentially.

Lastly, La Encantada produced 516,141 ounces of silver, down 9% from the third  of 2023. The mine was impacted by limited water supply to the mill throughout the second half of the year.

2023 Details

Total production for 2023 came in at 26.9 million AgEq ounces, consisting of 10.3 million silver ounces and 198,921 gold ounces. The figure marked a 14% fall from the 2022 reported figure, driven by the temporary suspension of Jerritt Canyon. However, the total production came within the company’s revised guidance of 26.2-27.8 million AgEq ounces.

2024 Guidance

Total production is expected to be 21.1-23.5 million AgEq ounces  in 2024, comprising 8.6-9.6 million ounces of silver and 150,000-167,000 ounces of gold.

The mid-point of the guidance suggests a decline of 17% from the 26.9 million AgEq ounces reported in 2023. The decline will be driven mainly by the suspension of the Jerritt Canyon Gold Mine.

All-in sustaining costs are anticipated between $19.32 and $20.68 per AgEq ounce.

Price Performance

AG shares have declined 39.5% in the past year compared with industry's 9.1% fall.


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Zacks Rank & Stocks to Consider

First Majestic currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the basic materials space are Carpenter Technology Corporation (CRS - Free Report) , Ternium S.A. (TX - Free Report) and Osisko Gold Royalties Ltd (OR - Free Report) . CRS and TX sport a Zacks Rank #1 (Strong Buy), and OR carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Carpenter Technology’s 2024 earnings is pegged at $3.96 per share. The consensus estimate for 2024 earnings has moved 11% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 14.3%. CRS shares have gained 71.2% in a year.

The Zacks Consensus Estimate for Ternium’s 2023 earnings is pegged at $7.98 per share. It has an average trailing four-quarter earnings surprise of 38.6%. TX’s shares have gained 36.5% in a year.

Osisko Gold has an average trailing four-quarter earnings surprise of 13.4%. The Zacks Consensus Estimate for OR’s 2023 earnings is pegged at 43 cents per share. Earnings estimates have been unchanged in the past 60 days. OR shares rallied 13.4% last year.

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