First Majestic Silver Corp. (NYSE:AG) shares fell 2.7% on Wednesday after the precious metals producer reported third-quarter earnings that missed Wall Street forecasts, even as it delivered record revenue and output.
The miner posted adjusted earnings of $0.07 per share, below the analyst consensus of $0.11 per share. Revenue rose 95% year-over-year to a record $285.1 million, but still came in short of the $311.86 million estimate.
Growth in sales was fueled by a 45% jump in silver equivalent ounces sold and a 31% rise in the average realized silver price, which reached $39.03 per ounce.
Production hit a new high, with 3.9 million ounces of silver produced during the quarter — up 96% year-over-year — including 1.4 million attributable ounces from the Los Gatos mine, where First Majestic holds a 70% stake.
“We generated a quarterly record of $98.8 million in free cash flow in the third quarter compared to $31.3 million in the third quarter of 2024,” said Keith Neumeyer, President and CEO of First Majestic. “Part of the free cash flow is being reinvested in growth capital activities focused on exploration and development to improve resource confidence, extend mine life, and boost throughput and production.”
Operational efficiency also improved, with cash costs per silver equivalent ounce down 2% year-over-year to $14.83, while all-in sustaining costs (AISC) fell 1% to $20.90 per ounce.
First Majestic ended the quarter with a record cash position of $568.8 million, including $435.4 million in cash and equivalents and $133.4 million in restricted cash. The company also declared a quarterly dividend of $0.0052 per share.