First Majestic Hits Record 7.8M AgEq Oz Production, Boosts Cash by $793M
First Majestic delivered record Q4 production of 7.8 million silver-equivalent ounces (37% year-over-year growth), including 4.2 million silver ounces and 41,417 gold ounces, and generated a record $250.4 million in free cash flow, boosting cash balances to $793.4 million. It closed its Gatos Silver acquisition (70% stake) and doubled its dividend to 2%.
1. Q4 Production Performance
First Majestic produced a record 7.8 million silver-equivalent ounces in Q4, a 37% increase year-over-year. The output comprised 4.2 million silver ounces, 41,417 gold ounces, 14.2 million pounds of zinc, 8.1 million pounds of lead and 235,886 pounds of copper, with Santa Elena, Los Gatos, San Dimas and La Encantada mines contributing 29.1%, 26.7%, 31.2% and 12.8%, respectively.
2. Financial Results and Balance Sheet Strength
The company generated a record $250.4 million in free cash flow during the quarter, a 153% increase from Q3, bringing cash and equivalents to $793.4 million and working capital to $733.6 million. First Majestic’s strong cash generation supports a forward 12-month price-to-sales multiple of 13.07X and follows a 104.2% stock gain over the past three months.
3. Strategic Acquisition and Dividend Increase
In January 2025, First Majestic completed the acquisition of Gatos Silver, securing a 70% interest in the high-grade Cerro Los Gatos underground mine and enhancing its primary silver production profile. The company also raised its quarterly dividend target from 1% to 2% of net quarterly revenues, underlining confidence in its cash flow outlook.