First Majestic Silver (AG) Q4 2024 earnings summary

Executive summary

• Achieved record free cash flow of $68.4 million in Q4 2024, driven by higher silver equivalent production, improved prices, and lower costs.

• Ended 2024 with a strong cash balance of $308.3 million and total liquidity of $364 million, excluding Gatos assets.

• Completed the $1.07 billion acquisition of Gatos Silver, increasing employee count from 4,100 to 5,300 and adding a 70% interest in the Cerro Los Gatos Silver Mine.

• Maintained a share buyback program, repurchasing and cancelling 50,000 shares in December at an average price of CAD $7.81, with the program continuing into 2025.

• Declared a Q4 2024 dividend of $0.0057 per share, with $5.3 million paid in dividends during the year.

Financial highlights

• Q4 2024 revenue rose 18% sequentially to $172.3 million and 26% year-over-year, with annual revenue at $560.6 million.

• Mine operating earnings in Q4 were $48.2 million, up 69% sequentially and 169% year-over-year.

• Q4 EBITDA reached $62.0 million, up 68% sequentially and 85% year-over-year; adjusted EBITDA was $64.8 million.

• Free cash flow reached record levels in Q4, with expectations for continued strong performance.

• Q4 net loss was $13.5 million (EPS $(0.04)), mainly due to non-cash deferred tax expense and FX losses.

Outlook and guidance

• Achieved 2024 production and cost guidance, producing 21.7 million AgEq ounces at an average AISC of $21.11 per ounce.

• 2025 production guidance set at 29 million silver equivalent ounces, with 53% silver, 30%+ gold, and the remainder in lead and zinc.

• Planned 270,000 meters of exploration drilling in 2025, up from 180,000 meters in 2024.

• Focus on integrating Gatos and realizing cost synergies over the next few quarters.

• Capital expenditures for 2025 are budgeted and expected to remain unchanged, with a priority on treasury growth.