BMO Capital Cuts First Majestic Silver Price Target By 7%

BMO Capital analyst Ryan Thompson lowered the price target on First Majestic Silver Corp FR NYSE: AG) to C$12 from C$13 while maintaining the Market Perform rating on the shares.
First Majestic is an intermediate primary silver producer with three operating mines in Mexico.
The analyst states that the consolidated Q1 gold and silver production missed estimates by 14% and 19%, respectively. 1Q22 production represents ~20% of the mid-point of full-year silver guidance and ~22% of the gold guidance.
Thompson adds that silver production was lower than expected at Santa Elena and San Dimas due to a rise in COVID-19 cases earlier in the quarter.
On the gold side, Jerritt Canyon grades were lower than expected. Thompson trimmed the 1Q22 EPS expectation.
Recently, First Majestic released Q1 production results, with a total production increase of 59% year-over-year. The company produced 7.2 million silver equivalent ounces consisting of 2.6 million ounces of silver and 58,892 ounces of gold.
Meanwhile, production decreased by 16% sequentially due to high absenteeism related to an increase in COVID-19 cases in January and February, which resulted in lower processed tonnes across all Mexican operating units.
Price Action: FR shares are trading lower by 4.44% at C$16.77 on TSX, and AG is lower by 4.64% at $13.25 on NYSE on the last check Tuesday.

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