First Majestic production climbs on record silver output

[Redator]

First Majestic Silver (TSX, NYSE: AG) said total production rose 39% in the third quarter as the Canadian miner churned out the most silver in its history. Shares hit their highest intraday level in more than four years before retreating.

Total production of 7.7 million attributable silver-equivalent oz. in the July-September period included a record 3.9 million oz. silver, 35,681 oz. gold, 13.9 million lb. zinc and 7.7 million lb. lead, Vancouver-based First Majestic said late Wednesday. This compares with 5.5 million silver-equivalent oz. in the same period a year ago.

Driving the record quarterly silver output was attributable production of 1.4 million oz. at Los Gatos – one of the company’s four operating mines in Mexico. First Majestic acquired its 70% stake in the mine in January, and integration is almost complete, according to the company.

Silver-equivalent production of 23.2 million oz. through nine months represents about 73% of the company’s full-year target. First Majestic is expected to produce between 30.6 million and 32.6 million oz. silver this year at an all-in sustaining cost of $20.02-$20.82 per ounce.

‘On track’

First Majestic “is on track to achieve 2025 guidance,” BMO Capital Markets mining analyst Kevin O’Halloran said Thursday in a note. He raised his target price on the stock to C$21.

Shares of the company fell 0.6% to C$19.59 Thursday afternoon in Toronto, cutting the company’s market value to about C$9.8 billion ($7 billion). Earlier they hit C$20.55, their highest level since June 2021. The stock has more than doubled since the start of the year as silver rose.

Silver has soared about 75% since the start of the year, topping gold’s 53% gain, amid mounting political and economic uncertainty – which lifts the metal’s appeal as a safe haven – and rising demand for use in green energy technology. Spot silver surged more than 4% Thursday to an all-time high of $51 an ounce.

Other production highlights from First Majestic during the period included 1.47 million oz. silver and 13,945 oz. gold from San Dimas, 412,669 oz. silver and 20,979 oz. gold from Santa Elena and 575,193 oz. silver from La Encantada.

First Majestic completed about 79,500 metres of drilling across its mines in the third quarter. It has 30 active drill rigs, including five at Los Gatos, 13 at San Dimas, eight at Santa Elena, two at La Encantada and another two at Jerritt Canyon, a Nevada gold mine that the company is looking at potentially restarting.

Drilling at Jerritt Canyon began during the third quarter, with 12,522 metres completed on the property. The work, which focuses on greenfield exploration and resource addition, is ahead of plan, according to the company. First Majestic plans to release results from the 2025 drilling program by Dec. 31.