First Majestic Silver Corp. (NYSE:AG) Q4 2024 Earnings Call Transcript

Access earnings results, analyst expectations, report, slides, earnings call, and transcript.

Overview

The company achieved record cash flow and met production guidance, indicating strong operational performance. Despite missing EPS expectations, optimistic guidance and cost improvement expectations mitigate concerns. The continuation of the share buyback program signals confidence in the company's value. While integration challenges and market risks exist, the strong cash position and liquidity provide a buffer. The Q&A section reveals a focus on strengthening the balance sheet and a positive outlook on silver prices, enhancing the sentiment. Given the market cap, a moderate positive reaction is expected.

Key Financial Performance

Earnings Per Share (EPS) $0.03 EPS, down from expectations of $0.05.

Cash Flow $68 million in Q4, record cash flow for the quarter.

Silver Equivalent Production 21.7 million ounces, met 2024 guidance.

All-in Sustaining Cost (AISC) $21.11 per ounce, with cash costs down by 8% compared to Q1.

Cash Balance $308 million at year-end, strong cash position.

Liquidity $364 million, strong liquidity position.

Revenue from Mint Over $9 million in revenue from the Mint in Q4.

Employee Count Increased from 4,100 to 5,300 employees due to Gatos acquisition.

You have reached the limit Upgrade to access full content

Get started

Operating Highlights

Record Production: Santa Elena achieved record production, breaking through 10 million ounces for the first time.

Mint Revenue: Generated over $9 million in revenue from the Mint in Q4.

2025 Production Guidance: Guiding around 29 million ounces of silver equivalent production for 2025.

Cash Flow: Reported record cash flow of $68 million in Q4.

Cash Position: Ended the year with a strong cash balance of $308 million and $364 million in liquidity.

Cost Reduction: Cash costs were down by 8% compared to Q1 versus Q4.

Share Buyback: Continued share buyback program, having bought back 50,000 shares in December.

Gatos Integration: Focus on integrating Gatos acquisition, increasing employee count from 4,100 to 5,300.

Exploration Program: Planning to drill about 270,000 meters in 2025, up from 180,000 meters completed in 2024.

You have reached the limit Upgrade to access full content

Get started

Risk or Challenges

Earnings Expectations: First Majestic Silver Corp. missed earnings expectations with a reported EPS of $0.03, below the expected $0.05.

Stock Performance: The stock has faced undue pressure due to investors paring down their positions following the Gatos transaction, leading to underperformance.

Integration Challenges: The integration of Gatos has increased the workforce from 4,100 to 5,300 employees, presenting challenges in merging different technologies and achieving cost-effectiveness.

Exploration Program Risks: The company plans a significant exploration program for 2025, with 270,000 meters of drilling, which carries inherent risks related to resource discovery and operational execution.

Market Conditions: The company operates in a competitive market with economic uncertainties that could impact future performance.

Regulatory Issues: The company acknowledges potential regulatory challenges that could affect operations, as indicated in their cautionary statements.

You have reached the limit Upgrade to access full content

Get started

Guidance & Outlook

Record Cash Flow Q4 2024: Achieved record cash flow of $68 million in Q4 2024.

Production Guidance 2025: Guiding for approximately 29 million ounces of silver equivalent production in 2025.

Exploration Program 2025: Planning to drill about 270,000 meters in 2025, a significant increase from 2024.

Integration of Gatos: Focusing on integrating Gatos acquisition, aiming for cost synergies and operational efficiencies.

Share Buyback Program: Continuing share buyback program initiated in December 2024.

2024 Production: Met 2024 guidance with 21.7 million ounces of silver equivalent production.

Cash Position: Ended 2024 with a strong cash balance of $308 million and $364 million in liquidity.

Cost Expectations: Expecting improvements in costs due to operational efficiencies and synergies from Gatos integration.

You have reached the limit Upgrade to access full content

Get started

Shareholder Return Plan

Share Buyback Program: The company has a share buyback program in place, having bought back 50,000 shares in December 2024. This program continued through January and into February 2025, with expectations to continue.

You have reached the limit Upgrade to access full content

Get started

Key Q&A

Q:What kind of long-term exchange rate, even past 2025, and inflation factors are you seeing with pricing for equipment in Mexico?

A:Our guidance for next year uses a 19.5 to 1 ratio on the peso, with a general inflation rate of about 4 to 4.5%. We have worked hard to offset inflation and do not anticipate unusual inflation from government policies.

Q:Can you provide some color on your longer-term margin expectations for the first mint?

A:Capital is still being spent until September 2024, and the mint has been operating since March. It’s hard to expect major profits from such a new business, but we are selling ounces for about $3 over spot.

Q:Are you expecting production and CapEx to be flattish for the year?

A:Production will be relatively consistent between H1 and H2, with a slight drop-off in Q4 due to slower exploration programs.

Q:What type of exploration work has been done at Jared Canyon?

A:We have an 18,000-meter program targeting areas that haven’t been explored before, focusing on greenfield exploration.

Q:How should we think about your capital allocation priorities moving forward?

A:Our focus is on strengthening the balance sheet, with an expected capital expenditure budget for 2025 that won’t change.

Q:What are your strategies regarding M&A?

A:We are focused on integrating the Gatos acquisition and not rushing into new M&A, although we are always monitoring the market.

Q:What silver price do you think is needed for positive per share earnings?

A:The currency fluctuations significantly impact our earnings, making it hard to pinpoint a specific silver price for positive earnings.

Q:What are your insights on the current political landscape in Mexico?

A:The new government seems more open to business and foreign investment, which is a positive change from the previous administration.

Q:When will silver catch up to gold prices?

A:I believe silver prices will rise due to supply-demand fundamentals, and once we break through certain resistance levels, it could move quickly to higher prices.

Q:Review of Unclear Management Responses

A:Management appeared to avoid giving a direct answer regarding the specific silver price needed for positive per share earnings, citing currency fluctuations and complexities in reporting.

You have reached the limit Upgrade to access full content

Get started

Earnings Word Cloud

The most frequently occurring keywords in this quarter's earning call

AG Transcript

First Majestic Silver Corp. (AG) Q2 2025 Earnings Call Transcript

Positive8-14

Despite revenue miss and cost pressures, the company reported record high revenue, EBITDA, and cash flows, indicating strong financial performance. Increased production and exploration spending suggest growth potential. While there are concerns about costs and integration, these are largely one-time or manageable. The company's dividend policy and positive synergies from integration are additional positives. The market cap of $1.73 billion suggests the stock may react more strongly to positive news, leading to a positive prediction for the stock price movement.

First Majestic Silver Corp. (AG) Mining Forum Europe 2025 Conference - (Transcript)

Neutral4-7

First Majestic Silver Corp. (NYSE:AG) Q4 2024 Earnings Call Transcript

Positive2-21

First Majestic Silver Corp (AG) Presents at 34th Annual Gold Forum Americas 2022 Conference (Transcript)

Neutral9-22

AG Report

FIRST MAJESTIC SILVER CORP 6-K

6-K

2025-08-14

FIRST MAJESTIC SILVER CORP 6-K

6-K

2025-08-07

FIRST MAJESTIC SILVER CORP 6-K

6-K

2025-02-13

FIRST MAJESTIC SILVER CORP 6-K

6-K

2025-02-04

Frequently Asked Questions

Where does this earnings call transcript come from?

All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.

How soon is the transcript available after the earnings call ends?

Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.

Is the transcript edited or altered in any way?

No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.

Why do some answers appear as “Unclear” or “Inaudible”?

When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.

Who creates the AI Summary and Key Q&A highlights shown above the transcript?

They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.