Canada's First Majestic Silver Q3 adjusted EPS rises 171%, meets estimates

Overview

• Canada silver and gold miner's Q3 revenue rose 38% yr/yr

• Adjusted EPS for Q3 met analyst expectations, up 171% yr/yr

• Company declared Q3 dividend nearly three times higher yr/yr; repurchased 100,000 shares

Outlook

• Company withdraws San Dimas annual production and cost guidance due to ongoing labour disruption

• San Dimas annual guidance to be reassessed once there is visibility on resumption of operations

• Company says impact of San Dimas disruption will depend on duration and timing of restart

Result Drivers

• HIGHER METAL PRICES - Co said revenue growth was primarily driven by a 59% higher realized silver price and a 23% higher realized gold price yr/yr

• INVENTORY SALES MIX - Revenue growth was supported by increased silver ounces sold at La Encantada and Santa Elena, partly offset by fewer ounces sold from other operations

• HIGHER COSTS - Cash costs and AISC per silver equivalent ounce rose sharply, mainly due to lower production, labor disruptions at San Dimas, and higher direct production costs

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the non-gold precious metals & minerals peer group is "buy"

• Wall Street's median 12-month price target for First Majestic Silver Corp. is C$31.85, about 48.1% above its November 4 closing price of C$21.51

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 17 three months ago

Reuters Recommended Reads

• Nov 4 - Canada's Pan American Silver Q3 adjusted EPS misses estimates as silver, gold production drop below outlook

• Nov 5 - Canada's Lundin Gold Q3 revenue rises on record gold production, higher prices

• Nov 4 - Canada's B2Gold lowers annual all-in sustaining cost guidance after strong gold production in Q3

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)