Core Viewpoint - First Majestic Silver Corp. has appointed Daniel Muñiz Quintanilla to its Board of Directors, effective March 13, 2025, bringing extensive experience in international law, M&A, capital markets, and finance within the mining sector [1][4]. Group 1: Appointment Details - Daniel Muñiz Quintanilla has over 28 years of experience in international law, M&A, capital markets, and finance, particularly in the mining, logistics, and infrastructure industries [2]. - He is currently a board member of Novagold Resources, Inc. and Brookfield Infrastructure Partners L.P., and is a Founding Partner of Axkan Capital Partners S.L. [2]. - His previous roles include directorships at Gatos Silver, Inc. and HudBay Minerals Inc., and he has significant leadership experience with Grupo Mexico, SAB de C.V. and its subsidiaries [3]. Group 2: Company Background - First Majestic Silver Corp. is a publicly traded mining company focused on silver and gold production in Mexico and the United States, operating four producing underground mines in Mexico [5]. - The company also owns a minting facility, First Mint, LLC, offering a portion of its silver production for public sale [6].

Market Overview - As of March 6, 2025, silver prices increased by 11.5% year-to-date, surpassing gold's 9.7% increase, indicating a strong performance for silver in the current market [1] - The S&P 500 index is down nearly 2% year-to-date as of March 7, prompting investors to consider silver mining companies for potential gains [2] Hecla Mining - Hecla Mining Co. reported a 55% year-over-year sales growth in the most recent quarter, with silver production increasing by approximately 32% [3] - The company achieved a gross profit surge of 75% in 2024, driven by strong performance at its Greens Creek and Lucky Friday properties [3] - Hecla's silver reserves reached 240 million ounces, the second highest in its 134-year history, although permitting and infrastructure issues at the Keno Hill property may hinder production growth [4] - Positive free cash flow was recorded in Q4 2024 after several negative quarters, and the company is optimizing its financial health by eliminating the silver-linked component of its dividend payments [5] - Analysts have a consensus price target of $8 for Hecla, indicating a potential upside of 47% as of March 7, with four out of seven analysts rating it a Buy [6] First Majestic Silver - First Majestic Silver Corp. experienced a 14% year-over-year decline in silver equivalent ounces produced, despite a 26% increase in revenues [8] - The company completed a $1.1 billion acquisition of Gatos Silver, which is expected to significantly boost production levels in 2025 and beyond [8] - First Majestic achieved record free cash flow and strengthened its cash position, holding over $308 million in cash and cash equivalents [9] - Analysts predict more than 48% improvement in earnings growth, with a consensus price target of $8.50, representing a 44% upside from current levels [9] Pan American Silver - Pan American Silver Corp. increased its quarterly silver production by nearly 25% in the last quarter of 2024, leading to a 22% year-over-year revenue growth [10] - The company anticipates slightly lower silver production levels for each quarter of 2025 but expects improved operating margins to enhance profitability [10] - Pan American reported record quarterly free cash flow and started the year with $1.6 billion in total available liquidity, renewing a buyback program for up to 5% of outstanding shares [11] - The company offers a compelling dividend yield of 1.63%, supported by additional free cash flow, with three out of four analysts rating it a Buy and a price target indicating 14% upside potential [12]

Industry Overview - The Zacks Mining - Silver industry is experiencing promising prospects due to rising silver prices and increasing global industrial demand, projected to reach around 1.2 billion ounces by 2025 [1][4] - Despite an 11-year high in silver supply, the market is expected to face a fifth consecutive year of deficit, which is likely to support higher prices [1][5] - The industry comprises companies engaged in the exploration, development, and production of silver, with only 20% of silver coming from mining activities where it is the primary revenue source [3] Demand and Price Trends - Total industrial demand for silver is expected to surpass 700 million ounces in 2025, with a year-over-year growth of 3%, driven by strong demand from green economy applications and consumer electronics [4] - Silver prices increased by approximately 22% in 2024 and 10.7% in the current year, supported by economic uncertainties and expectations of tight supply [5] - The silver market is projected to record a significant deficit of 149 million ounces in 2025, further bolstering prices [5] Cost Management and Operational Efficiency - Industry players are facing rising production costs, particularly in energy, which constitutes about 50% of their production costs [6] - Companies are focusing on improving operational efficiency through technological innovations and investments in R&D to manage costs effectively [6] Industry Performance and Valuation - The Zacks Mining - Silver industry currently holds a Zacks Industry Rank of 67, placing it in the top 27% of 246 Zacks industries, indicating bright prospects [7] - Over the past year, the Mining-Silver Industry has outperformed both the Basic Material sector and the Zacks S&P 500 composite, with a collective gain of 79.3% [9] - The industry is trading at a forward 12-month EV/EBITDA ratio of 6.34X, lower than the S&P 500's 13.96X and the Basic Material sector's 6.70X [11] Company Highlights - **Buenaventura Mining**: Reported a 40% increase in revenues and a 1,928% rise in net income for fiscal 2024, with plans for capital expenditure between $330-$355 million for 2025 [14][15] - **Fresnillo**: Produced 107 million silver-equivalent ounces in 2024, with a focus on boosting production through various projects [18][19] - **Hecla Mining**: Achieved record sales of $929.9 million and adjusted EBITDA of $337.9 million in 2024, with a strong focus on operational excellence [20][22] - **First Majestic Silver**: Produced 21.7 million silver-equivalent ounces in 2024 and recently acquired Gatos Silver, expected to enhance free cash flow and production guidance for 2025 [22][23]

Financial Data and Key Metrics Changes - The company reported record cash flow of $68 million in Q4 2024, with an all-in sustaining cost of $21.11 per ounce of silver equivalent production [10][11] - The total silver equivalent production for 2024 was 21.7 million ounces, meeting the company's guidance [11] - The company ended the year with a strong cash balance of $308 million and total liquidity of $364 million [12] Business Line Data and Key Metrics Changes - Santa Elena achieved record production, breaking through 10 million ounces for the first time [11] - The Mint generated over $9 million in revenue during Q4, indicating growth in this segment [16] Market Data and Key Metrics Changes - The company anticipates guiding around 29 million ounces of silver equivalent production for 2025, with approximately 53% from silver and 30% from gold [17] - The company plans to drill about 270,000 meters in 2025, indicating a significant exploration program [18] Company Strategy and Development Direction - The company is focused on integrating the Gatos acquisition and leveraging synergies to reduce costs [19][20] - The management expressed optimism about the new Mexican government being more business-friendly, which could positively impact operations [79] Management's Comments on Operating Environment and Future Outlook - Management noted a general inflation rate of about 4 to 4.5% and has implemented programs to offset this inflation [26] - The management is optimistic about the silver market, suggesting that silver prices could rise significantly in the future [81][84] Other Important Information - The company has a share buyback program in place, having repurchased 50,000 shares in December 2024 [13] - The company is planning to release three additional products through the Mint in 2025 [32] Q&A Session Summary Question: What are the long-term exchange rate expectations and inflation factors? - Management indicated a guidance ratio of 19.5% for the peso and expects a general inflation rate of 4 to 4.5% [25][26] Question: Can you provide insights on longer-term margin expectations for the Mint? - The Mint is still in its early stages, with margins expected to improve as operations stabilize [29][33] Question: How do you expect production and CapEx to shake out in the first half and second half of the year? - Production is expected to be relatively consistent between H1 and H2, with some drop-off in exploration programs in Q4 [42] Question: What are the capital allocation priorities moving forward? - The company aims to strengthen its balance sheet and maintain an aggressive exploration and development program [48] Question: What are the strategies regarding M&A after the Gatos acquisition? - The focus is currently on integrating Gatos, with no immediate plans for further M&A [56] Question: What silver price is needed for positive earnings? - Management indicated that currency fluctuations significantly impact earnings, making it difficult to pinpoint a specific silver price for profitability [64][70] Question: How might the political landscape in Mexico influence operations? - The new government appears more open to foreign investment, which could positively affect the mining sector [79] Question: When will silver catch up to gold prices? - Management believes that silver prices are likely to rise due to supply-demand fundamentals, with potential for significant increases in the future [81][84]

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Core Viewpoint - First Majestic Silver Corp. reported strong financial results for Q4 2024, highlighting record free cash flow, increased revenues, and improved operational metrics, despite a net loss due to non-cash expenses [3][4][10]. Q4 2024 Highlights - Record free cash flow of $68.4 million, a 119% increase from the previous quarter [4] - Cash and restricted cash balance of $308.3 million, with $202.2 million in cash and cash equivalents [4] - Revenues of $172.3 million, an 18% increase from Q3 2024 [4] - Mine operating earnings of $48.2 million, up 69% from the previous quarter [4] - EBITDA of $62.0 million, a 68% increase from Q3 2024 [4] - Consolidated cash cost improved to $13.82 per AgEq ounce, a 9% decrease from the previous quarter [4] - All-in sustaining cost (AISC) decreased to $20.34 per AgEq ounce, down 3% from Q3 2024 [4] - Record quarterly sales at First Mint of $9.1 million, a 237% increase from the previous quarter [4] - Declared a cash dividend of $0.0057 per common share for Q4 2024 [4][17] 2024 Annual Highlights - Achieved annual production of 21.7 million AgEq ounces, with an average AISC of $21.11 [7] - Operating cash flows before working capital and taxes increased by 40% year-over-year to $138.6 million [7] - Annual revenues of $560.6 million, a 2% decrease from 2023 [7] - Mine operating earnings increased by 259% year-over-year to $91.9 million [7] - EBITDA for the year was $127.1 million, compared to a $41.8 million loss in 2023 [7] - Ended 2024 with a cash position of $308.3 million [14] Operational Metrics - Ore processed increased by 10% quarter-over-quarter to 745,124 tonnes [6] - Silver ounces produced rose by 20% quarter-over-quarter to 2,353,865 ounces [6] - Cash costs per silver equivalent ounce improved by 9% quarter-over-quarter [6] - Average realized silver price per silver equivalent ounce increased by 3% quarter-over-quarter to $30.80 [6] Share Repurchase Program - The Company amended its share repurchase program to allow for off-market transactions [12]

Shares of First Majestic Silver (AG) have gained 6% over the past four weeks to close the last trading session at $5.84, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $7.73 indicates a potential upside of 32.4%.The average comprises six short-term price targets ranging from a low of $6 to a high of $11, with a standard deviation of $1.92. While the lowest estimate indicates an ...

Investors interested in Basic Materials stocks should always be looking to find the best-performing companies in the group. First Majestic Silver (AG) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Basic Materials peers, we might be able to answer that question.First Majestic Silver is one of 235 companies in the Basic Materials group. The B ...

First Majestic Silver Corp. (AG) has completed the previously announced acquisition of Gatos Silver, Inc. This deal solidifies First Majestic’s position as an intermediate primary silver producer.Details of AG-Gatos Silver DealOn Sept. 5, 2024, First Majestic announced that it has entered into an agreement to acquire Gatos Silver, under which AG will gain a 70% interest in the high-quality and long-life Cerro Los Gatos Silver underground mine.On Tuesday, the companies announced they received the necessary s ...

Production Performance - Total production in Q4 2024 reached 5.7 million silver-equivalent (AgEq) ounces, consisting of 2.4 million silver ounces and 39,506 gold ounces [1] - AgEq production increased by 4% sequentially, driven by a 20% rise in silver production and growth across the company's three operating mines [1] - San Dimas mine produced 2,235,407 AgEq ounces, with silver production up 14% sequentially and gold production down 3% [2] - Santa Elena mine produced 2,719,702 AgEq ounces, with silver production up 8% sequentially and gold production flat [2] - La Encantada produced 755,963 ounces of silver, up 39% sequentially due to higher silver grades and recovery [3] Annual Performance 2024 - Total production for 2024 was 21.7 million AgEq ounces, consisting of 8.4 million silver ounces and 156,542 gold ounces [4] - AgEq production fell by 19% compared to 2023 but was within the revised guidance of 21.4-22.6 million AgEq ounces [4] - Santa Elena mine achieved an annual record of 10.3 million AgEq ounces, up 7% from 2023 [4] Stock Performance - AG shares gained 7.4% in the past year, underperforming the industry's 42.8% growth [5] Industry Comparison - Carpenter Technology Corporation (CRS) has a Zacks Rank 1 (Strong Buy) with a 162.7% share price increase last year and an average trailing four-quarter earnings surprise of 14.1% [8][9] - Fortuna Mining Corp. (FSM) has a Zacks Rank 2 with a 26.5% share price increase last year and an average trailing four-quarter earnings surprise of 53.6% [8][9] - Equinox Gold Corp. (EQX) has a Zacks Rank 2 with a 9.6% share price increase last year and an average trailing four-quarter earnings surprise of 39.2% [8][10]