First Majestic Silver (AG) Q2 2025 Earnings Call August 14, 2025 11:00 AM ET Company ParticipantsKeith Neumeyer - Founder, President, CEO & DirectorSamir Patel - General Counsel & Corporate SecretaryDavid Soares - CFOWayne Lam - Director - Mining ResearchSteve Holmes - COODarrell Rae - IROOperatorThank you for standing by. This is the conference operator. Welcome to the First Majestic Silver twenty twenty five Q2 Financial Results Conference Call. As a reminder, all participants are in listen only mode and ...

First Majestic Silver (AG) Q2 2025 Earnings Call August 14, 2025 11:00 AM ET Speaker0Thank you for standing by. This is the conference operator. Welcome to the First Majestic Silver twenty twenty five Q2 Financial Results Conference Call. As a reminder, all participants are in listen only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions.If you are participating through the webcast, you can submit a question in writing by using the form in the l ...

Vancouver, British Columbia--(Newsfile Corp. - August 7, 2025) - First Majestic Silver Corp. (NYSE: AG) (TSX: AG) (FSE: FMV) (the "Company" or "First Majestic") will host a conference call and webcast on Thursday, August 14, 2025, at 8:30 a.m. (PT) / 11:30 a.m. (ET) to discuss its second quarter production and earnings results and updated 2025 guidance. Please note this is 30 minutes later than previously announced.The Company's second quarter results will be announced before markets open on Thursday, Augu ...

Core Viewpoint - First Majestic Silver Corp. has achieved a new 52-week high in stock price, driven by strong silver-equivalent production and rising metal prices [1] Group 1: Production Performance - In Q2 2025, First Majestic reported total production of 7.9 million AgEq ounces, which includes 3.7 million silver ounces and 33,865 gold ounces, marking a 48% year-over-year increase due to a 76% surge in silver production [2][10] - The increase in production was primarily driven by the San Dimas and La Encantada mines, along with contributions from the Cerro Los Gatos mine [3] - The Cerro Los Gatos mine contributed 1.5 million ounces of silver to the Q2 output [6][10] - Following the strong performance, the company raised its full-year production guidance to 30.6-32.6 million AgEq ounces from the previous estimate of 27.8-31.2 million AgEq ounces [6][10] Group 2: Strategic Developments - In January 2025, First Majestic completed the acquisition of Gatos Silver, gaining a 70% interest in the Cerro Los Gatos mine, which is expected to enhance the company's production profile [3][5] - The combined production from Cerro Los Gatos, San Dimas, and Santa Elena mines is projected to reach 30-32 million ounces of silver equivalent annually, including 15-16 million ounces of silver [4] Group 3: Market Trends - Silver prices have increased by 28% this year, while gold prices have risen by 29%, driven by safe-haven demand, geopolitical tensions, and supply deficits [7] - Current silver prices are around $38 per ounce, while gold prices are approximately $3,361 per ounce [7][8] Group 4: Stock Performance - First Majestic's stock has risen by 42.2% over the past year, outperforming the industry average growth of 15.5% [9]

Core Insights - Silver prices have reached a peak of $38 per ounce, marking the highest level in the past decade, with a bull market beginning in early 2024 when prices were around $22 per ounce [1] Group 1: Market Performance - The rise in silver prices occurred in two phases during the first six months of 2024 [1] Group 2: Analyst Background - The analyst, Harrison, has been writing on Seeking Alpha since 2018 and has over a decade of market experience, with a professional background in private equity, real estate, and economic research [1]

Core Insights - First Majestic Silver Corp. reported a total production of 7.9 million silver-equivalent ounces in Q2 2025, marking a 48% year-over-year increase driven by a 76% rise in silver production [1][7]. Production Details - The production included 3.7 million ounces of silver and 33,865 ounces of gold [1]. - The San Dimas mine produced 2.46 million AgEq ounces, with 1.24 million ounces of silver and 12,472 ounces of gold, reflecting a 17% year-over-year increase [3]. - The Santa Elena mine produced 2.32 million AgEq ounces, down 10% year-over-year, consisting of 306,224 ounces of silver and 20,637 ounces of gold [3]. - La Encantada produced 628,105 ounces of silver, up 7% from Q2 2024, driven by a 20% increase in ore processed and an 8% rise in silver recovery [4]. - Cerro Los Gatos contributed 2.4 million AgEq ounces, including 1.52 million ounces of silver and key base metals [4][7]. Acquisition Impact - In January 2025, First Majestic completed the acquisition of Gatos Silver, Inc., gaining a 70% interest in the Cerro Los Gatos mine, which solidified its position as an intermediate primary silver producer [2]. Updated Guidance - Following strong Q2 performance, the company raised its full-year consolidated production guidance to 30.6-32.6 million AgEq ounces, up from the previous guidance of 27.8-31.2 million AgEq ounces [5][7]. Stock Performance - First Majestic's shares have increased by 26.9% over the past year, outperforming the industry average growth of 20.1% [6].

Core Viewpoint - First Majestic Silver Corp. reported strong production results for Q2 2025, achieving 7.9 million silver equivalent ounces, a significant increase from the previous year, and has revised its 2025 production and cost guidance positively due to improved operational performance and metal prices [1][2][3]. Production Highlights - Total production in Q2 2025 reached 7.9 million AgEq ounces, consisting of 3.7 million silver ounces and 33,865 gold ounces, along with 16.1 million pounds of zinc and 9.0 million pounds of lead [1][3]. - Silver production increased by 76% year-over-year, from 2.1 million ounces in Q2 2024 to 3.7 million ounces in Q2 2025 [3]. - Silver equivalent production rose by 48% year-over-year, from 5.3 million AgEq ounces in Q2 2024 to 7.9 million AgEq ounces in Q2 2025 [3]. Operational Performance - The integration of the Los Gatos Silver Mine is progressing well, with identified synergies and opportunities [2]. - Operational performance at Santa Elena and San Dimas mines continues to meet or exceed expectations, benefiting from favorable metal prices [2]. - La Encantada is expected to improve in the second half of the year after a slower start [2]. Safety Performance - The consolidated Q2 2025 Total Reportable Incident Frequency Rate (TRIFR) was 0.52, below the target KPI of 0.70, indicating strong safety performance [4]. Mine-by-Mine Production Details - Los Gatos produced 2,436,722 AgEq ounces, including 1,524,949 ounces of silver and 706 ounces of gold, despite a weather-related power outage [6][9]. - Santa Elena produced 2,318,618 AgEq ounces, a decrease of 10% year-over-year, due to lower grade ores [12]. - San Dimas produced 2,464,029 AgEq ounces, a 17% increase year-over-year, with silver production up by 9% and gold production by 4% [12]. - La Encantada produced 628,105 ounces of silver, a 7% increase year-over-year, driven by a 20% increase in ore processed [12]. Updated 2025 Guidance - The company has increased its 2025 production guidance to 30.6 - 32.6 million AgEq ounces, a 7% increase from the original guidance [14]. - Silver production is now estimated to range between 14.8 to 15.8 million ounces, a 6% increase at the mid-point [18]. - Gold production is estimated to range between 135,000 to 144,000 ounces, a 2% increase at the mid-point [21]. - The 2025 capital budget has been increased by 7% to $193 million to support growth initiatives [24][19]. Capital Investments - The company plans to invest approximately $193 million in capital expenditures in 2025, with $76 million for sustaining activities and $117 million for expansionary projects [24]. - Key initiatives include upgrades at Santa Elena and early-stage development at the Navidad discovery [24].

Core Argument - The silver sector is gaining attention as a potentially more explosive investment opportunity compared to gold, driven by unique fundamentals and increasing demand for green technology [1][2]. Industry Overview - Silver serves as an industrial workhorse, with over 50% of annual consumption linked to industrial applications, making it essential for sectors like photovoltaic cells and electric vehicles [3]. - The silver market is facing a structural supply deficit for the fifth consecutive year, where demand consistently exceeds supply from mining and recycling, providing strong price support [4]. - Favorable macroeconomic trends, including potential interest rate cuts by the U.S. Federal Reserve and a downtrend in the U.S. dollar, are expected to boost silver demand [5][6]. Investment Opportunities - The Gold/Silver ratio remains above historical averages, suggesting that silver may be undervalued compared to gold, indicating potential for price appreciation [7]. - Direct exposure to silver can be achieved through investment vehicles like the iShares Silver Trust, which has shown a year-to-date net asset value total return of approximately 33% [11][12]. - Mining companies such as First Majestic Silver and Pan American Silver present opportunities for leveraged returns, with First Majestic benefiting from significant revenue leverage to silver prices and Pan American pursuing strategic acquisitions to enhance its portfolio [14][17].

Core Insights - Pan American Silver (PAAS) and First Majestic Silver (AG) are prominent players in the silver mining sector, both headquartered in Vancouver, Canada, and providing exposure to silver and gold [1][2] - Silver prices have increased by 28% and gold prices by 29% this year, driven by safe-haven demand, geopolitical tensions, and supply deficits [1] - The silver market is projected to face another deficit in 2025, which is expected to positively impact prices [1] Company Overview: Pan American Silver - Pan American Silver is a leading silver and gold producer in the Americas, operating 12 mines across several countries [3] - As of June 30, 2024, Pan American's mineral reserves included 468 million ounces of silver and 6.7 million ounces of gold, with an expected increase of 58 million ounces from the acquisition of MAG Silver Corp. [4][5] - The company reported a 28.6% year-over-year revenue increase to $773 million in Q1, with record mine operating earnings of $250.8 million [6][10] - Silver production was 5 million ounces in Q1, with expectations to meet 2025 guidance of 20-21 million ounces of silver [8][9] Company Overview: First Majestic Silver - First Majestic Silver focuses on silver and gold production primarily in Mexico and the U.S., operating four underground mines [13] - Proven and probable mineral reserves are estimated at 86.8 million ounces of silver and 594,000 ounces of gold as of December 31, 2024 [14] - The company achieved a 130% increase in Q1 revenues to $243.9 million, driven by the Cerro Los Gatos Silver Mine and higher silver prices [16][10] - Total production reached 7.7 million silver-equivalent ounces in Q1, marking a 49% year-over-year increase [15] Financial Performance Comparison - Pan American's adjusted earnings per share for 2025 are estimated at $1.47, reflecting an 86.1% year-over-year growth [21] - First Majestic's earnings estimate for 2025 is 12 cents per share, an improvement from a loss of 14 cents in 2024 [22] - PAAS stock has increased by 40% over the past year, outperforming the industry's growth of 18.5%, while AG has gained 30.7% [23] Valuation and Market Position - Pan American is trading at a forward price-to-sales multiple of 3.39X, below the industry average of 4.06X, while AG trades at 4.48X [25] - Pan American offers a dividend yield of 1.38%, significantly higher than First Majestic's 0.22% [27] - The average price target for Pan American suggests a 9% increase, while First Majestic's average price target implies a 2% decline [28] Investment Outlook - Both companies are positioned to benefit from rising silver and gold prices, with strong production expectations and expansion efforts [29] - Pan American has shown better performance in share price gains and dividend yield, along with positive earnings estimate revisions [30] - With a more attractive valuation and higher growth potential, Pan American Silver is viewed as a more compelling investment choice compared to First Majestic [33]

Group 1: Market Overview - Commodities and safe haven assets are gaining attention on Wall Street amid ongoing tariff issues [1] - The focus is on three mining companies: Newmont Corporation, First Majestic Silver Corp, and Rio Tinto plc [1] Group 2: Newmont Corporation (NEM) - Newmont's stock is currently down 0.4% at $52.63, having stabilized near a $52 floor and its 20-day moving average [2] - Despite a 41% gain projected for 2025, Newmont stock appears vulnerable to downgrades, with 13 out of 20 analysts maintaining a "buy" or better rating [2] Group 3: First Majestic Silver Corp (AG) - First Majestic is down 2.4% at $6.18, struggling to surpass the $6.50 mark, and is facing its first potential loss in four sessions [3] - The stock has a year-to-date gain of 12%, but short interest has increased by 39.3%, representing 5.3% of the stock's float, indicating potential for a short squeeze [3] Group 4: Rio Tinto plc (RIO) - Rio Tinto's shares are attempting a rebound, currently up 0.6% at $60.33, recovering from a two-year low of $51.67 [4] - The stock is now above its year-to-date breakeven point, and options are considered affordable, with a Schaeffer's Volatility Index (SVI) of 24% ranking in the 11th annual percentile [4]