First Majestic Silver Reports Wider Loss in Q3

Shares of First Majestic Silver, a precious metals miner, experienced a significant decline following the release of its third-quarter financial results. The company reported a larger loss, which can be attributed to lower production and restructuring costs.

Share Performance

During morning trading, the company's shares dropped by 14% to C$6.22 on the Toronto Stock Exchange, resulting in a year-to-date decline of 45%. On the New York Stock Exchange, First Majestic Silver's stock weakened by 15% to $4.43, translating to a year-to-date decline of 47%.

Financial Results

First Majestic Silver's net loss for the quarter was $27.1 million, or 9 cents per share. This represents an increase from the year-ago loss of $20.7 million, or 8 cents per share. The larger loss was primarily driven by restructuring costs, additional mine holding costs related to the temporary suspension of its Jerritt Canyon operation, and a one-time loss of $1.6 million from the sale of its mining interest after disposing of La Parrilla. On an adjusted basis, the per-share loss narrowed to 4 cents.

Revenue and Production

Revenue for the three-month period decreased by 17% to $133.2 million. Production of silver and gold also declined compared to the same period in 2022, with silver-equivalent output totaling 6.3 million ounces, down from 8.8 million ounces. However, the production cost per ton decreased by 7% compared to last year, and the company's average realized price per silver equivalent ounce increased by 14%.