First Majestic Silver (AG) - 2024 Q2 - Quarterly Report

Financial Performance - Revenues for Q2 2024 were $136.166 million, a decrease of 7.4% compared to $146.692 million in Q2 2023[8] - Mine operating earnings for Q2 2024 were $15.462 million, significantly improved from $1.138 million in Q2 2023[8] - Net loss for Q2 2024 was $48.251 million, compared to a net loss of $17.534 million in Q2 2023, reflecting a 175.5% increase in losses year-over-year[11] - Total comprehensive loss for Q2 2024 was $39.208 million, compared to a loss of $34.910 million in Q2 2023[11] - Cash generated from operating activities in Q2 2024 was $16.844 million, down from $20.379 million in Q2 2023[12] - Cash and cash equivalents at the end of Q2 2024 were $152.173 million, compared to $160.235 million at the end of Q2 2023[12] - The company reported a basic loss per share of $0.17 for Q2 2024, compared to $0.06 for Q2 2023[8] - Total mine operating costs for Q2 2024 were $120.704 million, down from $145.554 million in Q2 2023[8] - The company incurred finance costs of $7.335 million in Q2 2024, slightly up from $7.326 million in Q2 2023[12] - The company reported a net loss of $61,814 thousand for the six months ended June 30, 2024[16] - For the three months ended June 30, 2024, the consolidated revenue was $136.2 million, a decrease from $146.7 million in the same period of 2023, representing a decline of approximately 7.5%[44] - For the six months ended June 30, 2024, the consolidated revenue was $242.2 million, down from $303.6 million in the same period of 2023, reflecting a decrease of approximately 20.3%[48] Assets and Liabilities - Total assets increased to $1,987,039 thousand as of June 30, 2024, compared to $1,976,355 thousand at December 31, 2023, reflecting a growth of 0.54%[14] - Current assets rose to $341,903 thousand, up from $309,057 thousand, marking an increase of 10.6%[14] - Total liabilities decreased to $613,026 thousand from $618,235 thousand, a reduction of 0.35%[14] - Share capital increased to $1,952,580 thousand as of June 30, 2024, compared to $1,879,971 thousand at the end of 2023, representing a growth of 3.87%[16] - The accumulated deficit widened to $(674,149) thousand from $(609,876) thousand, indicating a decrease in retained earnings[16] - Equity reserves increased to $95,582 thousand from $88,025 thousand, reflecting a growth of 8.8%[16] - As of June 30, 2024, total property, plant, and equipment amounted to $980,267 thousand, an increase from $973,472 thousand at December 31, 2023[107] - Total debt facilities increased to $224.58 million as of June 30, 2024, up from $219.81 million at the end of 2023, representing a growth of approximately 2.1%[129] Operational Performance - The operating loss for the San Dimas mine in Q2 2024 was $2.5 million, a significant decrease from an operating profit of $8.9 million in Q2 2023[44] - The Santa Elena mine reported an operating profit of $26.3 million in Q2 2024, up from $7.4 million in Q2 2023, indicating a year-over-year increase of approximately 254%[44] - The Jerritt Canyon mine incurred an operating loss of $2.6 million in the first half of 2024, compared to a loss of $49.3 million in the same period of 2023, showing improvement in operational efficiency[48] - The company owns three producing mines in Mexico and has placed the Jerritt Canyon Gold Mine in Nevada on temporary suspension for optimization efforts[20] Shareholder Information - The company issued 10,600,000 shares for prospectus offerings, raising $71,154 thousand during the period[16] - The Company sold 10,600,000 common shares under the 2024 ATM program at an average price of $6.89 per share, generating gross proceeds of $73,000,000 and net proceeds of $71,154,000 during the six months ended June 30, 2024[155] - The total share-based payments expense related to stock options was $2,700,000 for the six months ended June 30, 2024, compared to $6,900,000 for the year ended December 31, 2023[159] - A total of 1,127,330 Restricted Share Units (RSUs) were awarded during the six months ended June 30, 2024, with a total expense of $400,000[162] Risk Management - The company is exposed to foreign exchange risk primarily related to Canadian dollars and Mexican pesos, which could impact net earnings[197] - A 10% change in the Canadian dollar could result in an effect of $718 on net earnings, while a similar change in the Mexican peso could impact net earnings by $11,150[198] - The company does not use long-term derivative instruments to hedge its commodity price risk for silver or gold[199] - A 10% change in silver prices could affect net earnings by $2,121, while gold prices could impact net earnings by $570, totaling $2,691[200] - The company manages liquidity risk by monitoring cash flows and matching the maturity profile of financial assets and liabilities[194] Compliance and Governance - The company has applied amendments to IFRS standards effective January 1, 2024, which did not have a material impact on the financial statements[30] - The company is currently evaluating the impact of IFRS 18 on its consolidated financial statements, which is effective for annual reporting periods beginning on or after January 1, 2027[40] - The company was in compliance with all of its debt covenants as of June 30, 2024[186]