First Majestic Silver (AG) Q4 2023 earnings summary

Executive summary

• 2023 production totaled 26.9 million AgEq ounces; revenue was $573.8 million, down 8% YoY, and adjusted net loss was $23.8 million.

• Q4 revenue rose 3% QoQ to $136.9 million, with mine operating earnings of $17.9 million and operating cash flow before working capital and taxes of $36.3 million.

Financial highlights

• FY2023 mine operating earnings increased to $25.6 million from $16.8 million in 2022; operating cash flow before working capital and taxes was $99.2 million versus $109.4 million.

• FY2023 net loss was $135.1 million, or $0.48 per share, versus a $114.3 million loss, or $0.43 per share, in 2022; adjusted net loss was $23.8 million, or $0.08 per share.

• Q4 net earnings were $10.2 million, or $0.04 per share; adjusted net loss was $8.3 million, or $0.03 per share.

• Q4 free cash flow was $3.8 million; FY2023 free cash flow was negative $9.0 million.

Outlook and guidance

• FY2023 silver production of 10.3 million ounces was below revised guidance of 10.5–11.2 million, mainly due to lower H2 output at La Encantada; gold production of 198,921 ounces was near the upper end of revised guidance of 190,000–201,000 ounces.

• First Mint was expected to begin bullion production in Q1 2024; 300,000 silver ounces valued at $7.1 million were held at year-end for its initial finished-goods inventory.

• Renewed ATM program permits discretionary share sales of up to $150 million through September 3, 2025; potential proceeds are intended for mine development or improvements and working capital.