First Majestic Silver (AG) AI Stock Analysis

• Market Cap: $3.83B
• Dividend Yield: 0.34%
• Average Volume (3M): 1.21M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.06
• Revenue Growth: -0.64%
• EPS Growth: 28.24%
• Country: CA
• Employees: 4,000
• Sector: Basic Materials
• Sector Strength: 59
• Industry: Silver
• EPS (TTM): -0.47
• Shares Outstanding: 484,090,330
• 10 Day Avg. Volume: 1,067,303
• 30 Day Avg. Volume: 1,209,961
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.71
• Price to Cash Flow (P/CF): 6.40
• P/FCF Ratio: 12.50
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$10.86
• Price Target Upside: 37.06% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

First Majestic Silver's stock score is 51, reflecting a challenging financial performance with negative net margins and leverage issues. While technical analysis indicates a bearish trend, the company has promising strategic plans and significant achievements in recent quarters. The negative P/E ratio and low dividend yield suggest valuation concerns, but strong future guidance provides some optimism.

Positive Factors

Acquisition Impact

Ongoing operational improvements and the acquisition of Gatos Silver, Inc. are expected to have a significant positive impact throughout 2025.

Operational Improvements

Santa Elena produced a new annual record of 10.3M silver equivalent ounces, with increased recovery rates and throughput from optimization efforts.

Renewable Energy

The Las Truchas hydroelectric plant is now operating at full capacity, providing renewable energy to the San Dimas mine at a lower cost.

Negative Factors

Capital Expenditures

Total capital expenditures are expected to increase by 34%, primarily due to investments related to Los Gatos.

Net Loss

The company reported a net loss of $101.9M for 2024, mainly due to a 20% drop in payable Silver Equivalent Ounces sold.

Production Decline

The company produced 21.7M silver equivalent ounces, representing a 14% decrease YoY, driven by a 21% YoY decrease in gold ounces and an 18% decrease in silver production.

First Majestic Silver Business Overview & Revenue Model

Company Description

First Majestic Silver Corp. engages in the acquisition, exploration, development, and production of mineral properties with a focus on silver and gold production in North America. It holds 100% interests in the San Dimas Silver/Gold Mine covering an area of 71,868 hectares located in Durango and Sinaloa states; the Santa Elena Silver/Gold Mine covering an area of 102,244 hectares located in Sonora; Jerritt Canyon gold mine that covers an area of approximately of 30,821 hectares located in Elko County, Nevada; and the La Encantada Silver Mine covering an area of 4,076 hectares situated in Coahuila, as well as surface land ownership of 1,343 hectares. The company also holds 100% interests in the La Parrilla Silver Mine that covers an area of 69,478 hectares located in Durango; the Del Toro Silver Mine consisting of 3,815 hectares of mining concessions and 219 hectares of surface rights located in Zacatecas; the San Martin Silver Mine includes 33 mining concessions covering an area of 12,795 hectares located in Jalisco; and the La Guitarra Silver Mine that covers an area of 39,714 hectares located in Mexico. In addition, it holds interest in the Springpole project, a gold and silver project covering an area of approximately 41,913 hectares in Ontario, Canada. The company was formerly known as First Majestic Resource Corp. and changed its name to First Majestic Silver Corp. in November 2006. First Majestic Silver Corp. was incorporated in 1979 and is headquartered in Vancouver, Canada.

How the Company Makes Money

First Majestic Silver makes money through the extraction and sale of precious metals, primarily silver and gold, from its mining operations in Mexico. The company's revenue is generated by selling the silver and gold it mines to various customers, including smelters, refiners, and other buyers in the precious metals market. The company's earnings are influenced by factors like global silver and gold prices, production volumes, and operational efficiencies at its mines. Additionally, First Majestic may engage in strategic partnerships or joint ventures to optimize its mining operations and expand its resource base, further contributing to its revenue streams.

First Majestic Silver Financial Statement Overview

Summary

The financial performance of First Majestic Silver reflects ongoing challenges. Despite an improved gross profit margin and positive EBITDA, the company continues to face net losses and revenue declines, indicating operational inefficiencies. The balance sheet shows moderate stability with low leverage and a strong equity base, but cash flow remains negative, reflecting difficulties in cash generation.

Income Statement

The income statement reflects significant challenges. Gross profit margin improved to 11.66% in TTM, showing a recovery from the prior year's 4.45%. However, the net profit margin remains negative at -14.81% due to ongoing net losses. Revenue has decreased by 8.39% from the previous year, highlighting a declining trend. EBIT margin is negative, indicating operational inefficiencies, although EBITDA margin shows positive traction at 16.82%.

Balance Sheet

The balance sheet shows moderate stability. The debt-to-equity ratio is 0.17, indicating low leverage, which is a positive aspect. Return on Equity is negative due to net losses, but the equity ratio is healthy at 69.64%, suggesting a strong asset base funded by equity.

Cash Flow

Cash flow performance is mixed. Free cash flow improved from negative $90.37 million to negative $25.80 million, showing improvement but still negative. The operating cash flow to net income ratio is negative due to losses, while free cash flow to net income ratio also remains negative, reflecting challenges in cash generation relative to net losses.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
527.97M	576.38M	626.85M	587.23M	366.68M	368.83M
	Gross Profit
61.56M	25.64M	16.75M	101.42M	105.05M	67.86M
	EBIT
-26.99M	-178.78M	-50.54M	49.20M	40.36M	28.38M
	EBITDA
88.81M	-54.50M	88.95M	165.56M	105.02M	40.22M
	Net Income Common Stockholders
-78.18M	-135.11M	-114.28M	-4.92M	23.09M	-40.47M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
8.32M	187.96M	185.97M	264.41M	274.90M	175.51M
	Total Assets
259.91M	1.98B	2.11B	2.12B	1.24B	1.03B
	Total Debt
4.63M	256.51M	247.94M	221.09M	173.28M	177.75M
	Net Debt
-3.68M	130.93M	96.51M	-16.83M	-65.30M	8.74M
	Total Liabilities
55.11M	618.24M	698.71M	714.02M	387.28M	365.60M
	Stockholders Equity
204.80M	1.36B	1.41B	1.41B	850.24M	662.32M
Cash Flow		Free Cash Flow
-25.80M	-90.37M	-198.69M	-120.24M	-34.78M	21.42M
	Operating Cash Flow
90.24M	55.61M	18.99M	68.72M	79.71M	140.03M
	Investing Cash Flow
-121.31M	-154.00M	-213.80M	-180.75M	-127.11M	-116.93M
	Financing Cash Flow
43.65M	64.65M	113.89M	111.82M	116.57M	87.68M

First Majestic Silver Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AG, the sentiment is Negative. The current price of 7.92 is below the 20-day moving average (MA) of 9.53, below the 50-day MA of 8.65, and below the 200-day MA of 8.50, indicating a bearish trend. The MACD of 0.41 indicates Positive momentum. The RSI at 56.43 is Neutral, neither overbought nor oversold. The STOCH value of 24.27 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:AG.

First Majestic Silver Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AG	51 Neutral	$3.83B	―	-7.52%	0.34%	-0.64%	28.24%
Sector *	47 Neutral	$2.36B	-3.00	-21.73%	3.58%	3.97%	-28.71%

First Majestic Silver Corporate Events

First Majestic Silver Achieves Record Mineral Reserves and Resources in 2024

First Majestic Silver Corp. announced significant increases in its 2024 Mineral Reserve and Mineral Resource estimates, marking a record milestone for the company. The strategic acquisition of Gatos Silver and a successful exploration program led to a 45% increase in Proven and Probable Reserves and a 25% increase in Measured and Indicated Resources. These developments enhance the company’s operational capacity and strengthen its position in the silver and gold mining industry.

First Majestic Silver Strengthens Board with New Appointment

First Majestic Silver Corp. has appointed Daniel Muñiz Quintanilla to its Board of Directors, bringing his extensive experience in international law, mergers and acquisitions, capital markets, and finance in the mining and infrastructure industries. This strategic move is expected to enhance First Majestic’s operations and relationships in Mexico, supporting its vision of becoming the leading primary silver company globally.

First Majestic Expands Mineralization at Navidad Discovery

First Majestic Silver has significantly expanded the high-grade gold and silver mineralization at the Navidad discovery within its Santa Elena Mine in Sonora, Mexico. Recent drilling results have shown substantial growth in the mineralization footprint, with metallurgical testing confirming excellent recovery rates. This advancement enhances the potential for increasing the mineral resource and reserve base at Santa Elena and aligns with First Majestic’s strategic goals to optimize its operations and resource quality.

First Majestic Reports Positive Exploration Results at San Dimas Mine

First Majestic Silver Corp. has announced successful results from its 2024 exploration program at the San Dimas mine, revealing significant silver and gold mineralization across several veins. These results have expanded and upgraded mineral resources, de-risking future mining operations planned for 2025 and 2026, thereby enhancing the company’s resource base and operational stability.

First Majestic Completes Acquisition of Gatos Silver, Enhancing Silver Production Portfolio

First Majestic Silver Corp. has successfully completed its acquisition of Gatos Silver, Inc., which will now operate as a wholly-owned subsidiary. This acquisition includes the integration of the Cerro Los Gatos mining district, known for its robust production and exploration potential, into First Majestic’s portfolio. The transaction is expected to enhance First Majestic’s operations in Mexico, positioning it as a leading silver producer. The Gatos Silver shares will cease trading on the NYSE and TSX, and stockholders will receive First Majestic shares as part of the merger consideration.

First Majestic Secures Shareholder Approval for Gatos Silver Acquisition

First Majestic Silver Corp. has received shareholder approval for its acquisition of Gatos Silver, Inc., with 98.44% of votes in favor of issuing up to 190 million common shares to Gatos Silver shareholders. The merger, approved by Gatos Silver stakeholders with 71.3% voting in favor, will be finalized on January 16, 2025, subject to customary closing conditions. This acquisition strengthens First Majestic’s position in the mining industry, potentially expanding its market presence and operational capabilities.

First Majestic Silver Corp. Marks Increased Production and Record Safety Performance in Q4 2024

First Majestic Silver Corp. announced a total production of 5.7 million silver equivalent ounces in Q4 2024, with the full-year production reaching 21.7 million AgEq ounces, aligning with their revised guidance. The company experienced a 4% increase in quarterly production driven by a 20% rise in consolidated silver output. Notably, the La Encantada mine achieved its highest quarterly production since Q2 2023, contributing to these results. Additionally, First Majestic’s safety performance set a new benchmark, with significant improvements in the Total Reportable Incident Frequency Rate and the Lost Time Incident Frequency Rate, establishing an all-time record and peer-leading safety performance.