Yahoo Finance First Majestic (AG) Reveals 2022 Mineral Resource Update
First Majestic Silver Corp. AG announced that it completed 249,201 meters of exploration drilling in 2022, marking an increase of 9% from 2021. The company focused around 80% of its drilling activities near mine or brownfield targets and the rest on greenfield targets in search of the latest discoveries.
Currently, First Majestic has the San Dimas Silver/Gold Mine, the Santa Elena Silver/Gold Mine and the La Encantada Silver Mine in operation. The Jerritt Canyon Gold Mine, the fourth material property, was recently temporarily suspended to concentrate on mineral resource exploration, definition and expansion, as well as mine preparation and plant operation enhancement.
Estimated Proven and Probable Mineral Reserves for First Majestic’s producing material assets totaled 136.8 million silver-equivalent ounces, which included 61.5 million ounces of silver and 781,000 ounces of gold. Silver ounces decreased 2% year over year, whereas gold ounces decreased 41%.
Estimated Measured and Indicated Mineral Resource for the company’s four material assets totaled 351.5 million silver-equivalent ounces, which included 101.7 million ounces of silver and 2.82 million ounces of gold. Silver and gold output fell 8% and 2% year-over-year, respectively. As a result of the 2022 drilling campaign, Jerritt Canyon increased its estimates for the SSX and Smith mines by 67,000 ounces of gold.
Estimated Inferred Mineral Resources for AG’s four material assets totaled 280.8 million silver-equivalent ounces, with 73.6 million ounces of silver and 2.36 million ounces of gold. Expansionary drilling at Jerritt Canyon completed in 2022 improved the Inferred Mineral Resource estimates by 307,000 ounces of gold at the SSX, Smith and West Generator mines. Drilling at San Dimas over the last year also improved the Inferred Resource figures, adding 8.6 million ounces of silver and 25,000 ounces of gold.
In the fourth quarter of 2022, the company delivered an adjusted loss per share of 7 cents. The company had reported earnings of 2 cents per share in the year-ago quarter. Revenues plunged 28% year over year to $148 million in the quarter under review. The average realized silver price was $23.24 per payable silver-equivalent ounce in the quarter, down 4% year over year.
However, AG generated record annual revenues totaling $624.2 million in 2022, 7% higher than that reported in 2021. This was primarily due to the first full year of production from the Ermitaño mine at Santa Elena. Production was a record 31.3 million silver-equivalent ounces in 2022, up 16% from the 2021 levels. The figure consisted of 10.5 million silver ounces and 248,394 gold ounces.
Following the record annual production, First Majestic's Mineral Resource estimates show an increase in contained silver-equivalent ounces that will more than offset mine depletion in the year.
Price Performance
Shares of the company have lost 0.1% in the past year compared with the industry’s 3.3% decline.
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Zacks Rank & Stocks to Consider
First Majestic currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space are Olympic Steel ZEUS, Steel Dynamics STLD, and Yamana Gold AUY. ZEUS and STLD currently flaunt a Zacks Rank #1 (Strong Buy), and AUY carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Olympic Steel’s fiscal 2023 earnings per share is pegged at $3.50. Earnings estimates have moved 61% north in the past 60 days. ZEUS has a trailing four-quarter earnings surprise of 26.2%, on average. Its shares have gained 43.3% in the past year.
The Zacks Consensus Estimate for Steel Dynamics’ earnings per share is pegged at $14.84 for 2023. Earnings estimates have been revised 37% upward in the past 60 days. STLD has a trailing four-quarter average surprise of 11.2%, on average. The company has gained 26.9% in a year.
The Zacks Consensus Estimate for Yamana Gold’s 2023 earnings per share is pegged at 27 cents. Earnings estimates have moved 3.8% north in the past 60 days. AUY’s shares have gained 7.4% in the past year.
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