First Majestic Silver Q3 adjusted EPS rises 171%, meets estimates
AG•First Majestic Silver reported Q3 adjusted EPS of $0.19, up 171% year over year and in line with estimates, while revenue rose 38% to $394.1 million, below the $423 million estimate. The company withdrew San Dimas annual production and cost guidance because of ongoing labor disruption.
1. Quarterly results
First Majestic Silver reported Q3 revenue of $394.1 million, up 38% year over year but below the $423 million estimate. Adjusted EPS was $0.19, matching estimates and rising 171% year over year; adjusted net income was $92.5 million.
2. Revenue and costs
The company said revenue growth was primarily driven by realized silver and gold prices that were 59% and 23% higher year over year, respectively. Increased silver ounces sold at La Encantada and Santa Elena also supported revenue, partly offset by fewer ounces sold elsewhere. Cash costs and all-in sustaining costs per silver equivalent ounce rose sharply, mainly due to lower production, San Dimas labor disruptions and higher direct production costs.
3. San Dimas guidance
First Majestic withdrew San Dimas annual production and cost guidance due to ongoing labor disruption. It said guidance would be reassessed once there is visibility on a resumption of operations, and the disruption’s impact will depend on its duration and the timing of a restart. The company declared a Q3 dividend nearly three times higher year over year and repurchased 100,000 shares.
