You. Well, hello there and good morning. Chris Marcus here with you for Arcadia Economics. And today we have a quick video because there was news out from first Majestic last night as they released their earnings after the close. This is the fourth quarter earnings as well as the full financial results for 2023. So wanted to walk you through the highlights and let you know what first majestic came back with.

We will start with the 2023 full year highlights, where production of 26. 9 million silver equivalent ounces breaks down into 10. 3 million silver ounces, 198. 9 thousandoz of gold. Annual revenues at 573. 8 million, compared to 624 in 2022. And we’ll dig into the driver behind that. Obviously, a big part of that was the shutdown of Jarrett Canyon. They did have operating cash flows before working capital taxes of 99.

2 million. And that was up at 109. 4. In 2022. Consolidated cash costs were 1449 per silver equivalent ounce. And all in sustaining came in at $20. 16 on the year. The adjusted net earnings of a $23. 8 million loss was an eight cent loss per share. And this was based on a realized silver price of 23 29 per silver equivalent ounce. And they have 300,000 silver billion ounces in their finished goods inventory, which will be used to build up the inventory for the minting facility, which is getting closer to going online.

And they also paid out 5. 9 million in dividends in 2023, which left them with a cash and restricted cash balance of 251. 2 million. And they also ended the year with a liquidity position of 313. 6 million, consisting of 188. 9 million in working capital and 124. 6 million available on an undrawn revolving credit facility. Terms of the fourth quarter, the production figures came in at 6.

6 million silver equivalent ounces. That’s 2. 6 millionoz of silver, 46,585 gold ounces, with the silver equivalent production being a 6% increase compared to the third quarter. Quarterly revenues were up to 136. 9 million, slightly higher than the 133. 2 in the third quarter. Mine operating earnings at 17. 9 million compared to 13 million. And operating cash flows before changes in working capital and taxes came to 36.

3 million. As the consolidated cash cost is down, you can see that’s lower than the full year at 13. One with the all in sustaining at 1850. And that resulted in a loss of share in the fourth quarter, along with a zero point share dividend. As I mentioned before, you had the shutdown of Jarrett Canyon. So that did result in lower revenue and a 10% decrease in total number of silver equivalent ounces sold, partly offset by an increase in production at Santa Lena, along with a 4% increase in the average realized silver price.

First, Majestic also had an increase in mine operating earnings going up to 25. 6 million versus 16. 8 in 2022, which is primarily a result of a decrease in the operating losses at Jared Canyon after the mine was shut down, as well as a 19% increase at Santa Elena where they achieved a new annual production record. And as I mentioned, they had a net loss of 135,000,000 in the full year, which comes largely from the Jarrett Canyon shutdown where they had an impairment charge of 125.

2 million. One time cost of 13. 4 million for a standby at Jarrett Canyon, as well as a $7. 2 million non cash charge around the sale of La Paria, as well as $6. 9 million in severance and restructuring costs. Silver production on the year was 10. 3 million, slightly below the revised guidance range of 10. 5 to 11. 2 million. And that was based on lower silver production at Latin Quintata, while gold production was 198.

9 thousandoz. On the upper end of their 190 to 201,000 ounce range. Cash costs on the year were 1449 and all in sustaining was at $20. 16. Yet that did come down to 1850 by the fourth quarter, which was also helped by a higher quarterly average realized silver price of 20 416. While the mine operating earnings were at 17. 9 versus 13 million in the third quarter. As a result of the increase in operating earnings at Santa Elena which came in at 8 million and was 41% higher than what we saw in the third quarter.

And the net earnings for the quarter amounted to a loss of 10. 2 million earnings per share of when factoring in non recurring items that brought that down to 8. 3 million. With an adjusted EPS of a three cent loss per share. Cash costs in the fourth quarter continued to improve down to 13 one versus 1413 in the previous quarter. And that was largely based on the increase in production at Santa Elena where it was 67% higher than in the third quarter and also left the all in sustaining cost as I mentioned earlier at 1850 versus 1974 in the third quarter.

So beginning to see some of the costs go down, which is something that first majestic had talked about following the shutdown of Jared Canyon. And obviously that was the big challenge of 2023. But good to see some progress being made, especially at a time where the silver price not necessarily on the higher end of its range, but first majestic did have a higher realized silver price in the fourth quarter and still floating around there now.

And the last note here, as I mentioned, they did have the zero point 48 cent per share common dividend and they also did renew their ATM sales agreement, which does give them the ability to issue common shares in the amount of up to $150,000,000. So there are the results for first Majestic in the fourth quarter and full year of 2023. Link to this press release in the description field below.

If you would like to take a closer look at that. Hope your morning’s off to a great start and we will see you again soon. You it’s. .

See more of Arcadia Economics on their Public Channel and the MPN Arcadia Economics channel.