First Majestic Q2 Silver Production Rises Sequentially

First Majestic Silver Corp. AG announced that its total production reached 5.3 million silver equivalent ("AgEq") ounces in the second quarter of 2024. The figure consists of 2.1 million silver ounces and 39,339 gold ounces.

On a sequential basis, silver production grew 7%, whereas gold production increased 9%. Overall silver equivalent ounces jumped 2% from the prior quarter. The rise was mainly driven by higher silver production at La Encantada and increased AgEq production at Santa Elena. However, this was partially offset by lower production at the San Dimas mine.

The Santa Elena gold mine generated 2.6 million AgEq ounces. This includes 3.77 million silver ounces and 27,176 gold ounces, marking increases of 6% and 25%, respectively, over the first quarter of 2024. The La Encantada mine produced 5.85 million silver ounces, a 28% increase from the previous quarter.

San Dimas generated 2.1 million AgEq ounces in the quarter. This includes 1.14 million silver ounces and 12,043 gold ounces, 2% and 11% quarter-over-quarter declines, respectively. The dip was led by a decrease in fresh ore processed, which is largely the outcome of First Magestic's continuing labor relation negotiations with unionized workers.

2024 Guidance

To reflect the pick-up in metal prices and upbeat production results in the second quarter, the company updated its 2024 outlook. The updated silver and gold price estimates for the second half of 2024 are $28.00 and $2,300 per ounce, respectively. It expects silver production of 8.9-9.5 million ounces compared with the prior mentioned 8.6-9.6 million ounces.

AG expects 2024 gold production between 150,000 and 158,000 ounces compared with the prior stated 150,000-167,000.

Price Performance

AG shares have lost 9.4% in the past year against the industry's growth of 38.5%.

Image Source: Zacks Investment Research

Zacks Rank

First Majestic currently flaunts a Zacks Rank #1 (Strong Buy).

Some Peer Performances in Q2

Fortuna Mining Corp. FSM reported gold equivalent production of 116,570 ounces in the second quarter of 2024. This reflects a 4% increase from the first quarter of 2024. Gold production was 92,716 ounces and silver production was 990,574 ounces, marking a 44% year-over-year increase and a 22% decrease, respectively.

FSM produced 13 million pounds of Zinc, down 7% from the second quarter of 2023. Lead production increased 3% year over year to 10.5 million pounds.

Endeavour Silver Corp. EXK reported silver equivalent production of 2,156,453 ounces in the second quarter of 2024, down 5% year over year. EKX produced 1,312,572 ounces of silver in the quarter, down 12% from the second quarter of 2023. Gold production increased 7% year over year to 10,549 ounces.

Hecla Mining HL reported producing 4.5 million ounces of silver in the second quarter of 2024. This marked a 16% year-over-year improvement, reflecting a solid performance at Keno Hill. HL's gold production was up 6% at 37,324 ounces from the year-ago quarter, as improved results at Casa Berardi offset lower output at Greens Creek.

Hecla Mining produced 7.9 million ounces of silver in the first half of 2024. It believes that it is on track to produce 17 million ounces of silver in 2024.

To read this article on Zacks.com click here.