Well, hello there, my friends! Chris Marcus here with you for Arcadia Economics, and a quick update on First Majestic Silver, as they had their third-quarter results out before the open today. I just wanted to walk you through the highlights.

First, note that earnings for the third quarter came in at a net loss of nine cents per share. Adjusted for non-cash and non-recurring items, it came in at a three-cent loss per share. We’ll walk through how we got there.

To begin, they had increased production at 5.5 million silver equivalent ounces, which was a four percent increase versus the second quarter this year. They generated $146.1 million in revenue versus $133.2 million in the third quarter of 2023. They are currently holding 767,000 silver ounces in finished inventory, valued at $23.8 million.

Mine operating earnings came in at $28.5 million, up from $13 million in the third quarter of 2023, largely due to a 67 percent increase in operating earnings at Santa Elena. Operating cash flow before changes in working capital and taxes was $39.8 million, compared to $14.1 million in the third quarter of last year, driven primarily by the increase in mine operating earnings.

They also had improved cash costs and all-in sustaining costs. The consolidated cash cost decreased from $15.29 in the second quarter to $15.17 in the third quarter, while the all-in sustaining cost dropped from $21.64 in the second quarter to $21.03 in the current quarter.

In early September, they announced their deal to acquire Gato Silver, which they expect to close in early 2025. As mentioned, they saw a ten percent increase in revenue, driven primarily by the higher silver price, partially offset by a decrease in silver equivalent ounces sold due to lower production at San Dimas and higher inventory levels. However, the 67 percent increase in operating earnings at Santa Elena helped them raise their mine operating earnings to $28.5 million this quarter, up from $13 million in the third quarter of last year.

Adjusted EBITDA, after normalizing non-cash and non-recurring items such as share-based payments or losses on marketable securities, came in at $39.8 million in the third quarter. There was a net loss for the quarter due to non-cash foreign exchange expenses of $5.8 million and a non-cash deferred income tax expense of $13.2 million.

The decrease in net loss was primarily due to a $13 million increase in mine operating earnings, offset by a $20.9 million income tax expense. The earnings per share reflected a nine-cent loss, and after adjusting for unrealized losses on marketable securities and deferred income tax, the adjusted net loss was three cents per share.

I’ll leave the link to this in the description field below so you can take a look through it, but I just wanted to pass that along. We will see you again tomorrow!

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