Canada's First Majestic Silver Q4 revenue up 169%, helped by  Los Gatos Silver Mine acquisition

Overview

• Canada silver miner's Q4 revenue grew 169% yr/yr, beating analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Company achieved record quarterly silver production, up 77% yr/yr

Outlook

• First Majestic sees continued strong performance from Los Gatos Silver Mine

Result Drivers

• RECORD SILVER PRODUCTION - Co achieved record quarterly silver production of 4.2 mln oz, a 77% increase y/y, driven by increased output at San Dimas and La Encantada

• LOS GATOS CONTRIBUTION - Acquisition of Los Gatos Silver Mine added $187.4 mln to Q4 revenue, significantly boosting overall results

• HIGHER SILVER PRICES - Average realized silver price rose 91% y/y to $58.96 per AgEq oz, supporting revenue growth

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the non-gold precious metals & minerals peer group is "buy"

• Wall Street's median 12-month price target for First Majestic Silver Corp is C$30.26, about 2.3% below its February 18 closing price of C$30.98

• The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 36 three months ago

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