Hot Stock to Track: First Majestic Silver Corp. (NYSE: AG)

VANCOUVER, British Columbia, July 26, 2019 – Shares of () inclined 1.46% to $9.81. The stock traded total volume of 3.086M shares lower than the average volume of 3.79M shares.

First Majestic Silver Corp. () reported first-quarter net income of $2.90M, after reporting a loss in the same period a year earlier. On a per-share basis, the Vancouver, British Columbia-based company said it had net income of 1 cent. Losses, adjusted for non-recurring gains, were 1 cent per share. The results matched Wall Street expectations. The average estimate of four analysts surveyed by Zacks Investment Research was also for a loss of 1 cent per share.


Revenues generated in the first quarter totaled $86.80M, a boost of 48% contrast to $58.60M in the first quarter of 2018 mainly because of the acquisition of the San Dimas mine in the second quarter of 2018, which resulted in a 60% increase in silver equivalent ounces sold, partially offset by a 6% decrease in average realized silver price contrast to the same quarter of the prior year.

The Company reported mine operating earnings of $10.30M contrast to ($0.40)M in the first quarter of 2018. The increase in mine operating earnings in the quarter was attributed to the San Dimas and Santa Elena mines, which generated mine operating earnings of $11.20M and $5.10M, respectively, mainly offset by losses at the Del Toro and La Parrilla mines because of reduced production levels.

Cash flow from operations before movements in working capital and income taxes in the quarter was $23.70M ($0.12 per share) contrast to $15.60M ($0.09 per share) in the first quarter of 2018.

The Company generated net earnings of $2.90M (EPS of $0.01) contrast to ($5.6)0M (EPS of $(0.03)) in the first quarter of 2018. Adjusted net earnings for the quarter was ($2.90)M (adjusted EPS of $(0.01)), after excluding non-cash and non-recurring items.

Cash and cash equivalents at March 31, 2019 was $91.50M, a boost of $34.50M contrast to the previous quarter, while working capital increased to $130.90M. The increase in cash and cash equivalents was mainly attributed to the sale of 5,250.0K common shares of the Company through its “at-the-market distribution” program at an average price of US$6.34 per share for gross proceeds of $33.60M, or net proceeds of $32.50M after costs.


Total production in the first quarter reached 6.273M silver equivalents ounces, consisting of 3,331,388.0M ounces of silver, 32,037 ounces of gold, 2.661M pounds lead and 1.265M pounds of zinc. Contrast to the previous quarter, total production reduced slightly by 3% because of lower throughput and production at the Del Toro and La Parrilla mines, partially offset by a boost in production from the La Encantada mine. Pure silver production increased 2% as a result of higher grades at the San Dimas and La Encantada mines.


Total capital expenditures in the first quarter were $28.70M, mainly consisting of $8.20M at San Dimas, $4.80M at Santa Elena, $2.90M at La Encantada, $2.40M at San Martin, $2.80M at La Parrilla, $1.00M at Del Toro and $6.60M for planned projects which includes about $6.00M for the purchase of two HIG mills.

AG has the market capitalization of $1.99B and its EPS growth ratio for the past five years was -31.03%. Price to sales ratio was 6.03.

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