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• Record Cash Flow: $68 million in Q4 2024.

• Silver Equivalent Production: 21.7 million ounces in 2024.

• Record Production at Santinana: Over 10 million ounces in 2024.

• Cash Balance: $308 million at year-end 2024.

• Liquidity: $36 million, excluding Gatos.

• Cash Costs: Down by 8% from Q1 to Q4 2024.

• Share Buyback: 50,000 shares repurchased in December 2024.

• Mint Revenue: Over $9 million in Q4 2024.

• 2025 Production Guidance: Approximately 29 million silver equivalent ounces.

• Exploration Program 2025: Planned 270,000 meters of drilling.

• Employee Increase: From 4,100 to 5,300 due to Gatos integration.

• Warning! GuruFocus has detected 3 Warning Sign with AG.

Release Date: February 20, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• First Majestic Silver Corp (NYSE:AG) reported record cash flow of $68 million in Q4 2024.

• The company achieved a record production milestone at Santinana, surpassing 10 million ounces for the first time.

• First Majestic Silver Corp (NYSE:AG) ended the year with a strong cash balance of $308 million and $36 million in liquidity.

• The company successfully reduced cash costs by 8% from Q1 to Q4 2024.

• A significant exploration program is planned for 2025, with 270,000 meters of drilling anticipated.

Negative Points

• The integration of Gatos is expected to take several quarters, which may delay realizing full synergies.

• The company experienced underperformance in stock due to liquidity events and investor sell-offs.

• Currency fluctuations, particularly with the Mexican peso, continue to impact reported earnings.

• There are ongoing challenges with inflation and equipment pricing in Mexico.

• The company faces complexities in merging different technologies and operations post-acquisition.

Q & A Highlights

Q: What long-term exchange rate and inflation factors are considered in your cost guidance, and what are you seeing with pricing for equipment in Mexico? A: Steve Holmes, COO, stated that they are using a 19.5:1 peso to dollar ratio for next year's guidance. They are seeing a general inflation rate of about 4% to 4.5% and have worked to offset this inflation and the impact of the peso from last year. They do not anticipate any unusual inflation from government policies.

Q: Can you provide some color on your longer-term margin expectations for the First Majestic Mint? A: Steve Holmes, COO, explained that the mint is still young, having only reached its one-year anniversary. They are selling silver at about $3 over spot, with some special products selling at $5 over spot. The goal for 2025 is to process 10% of total production through the mint, up from 5% in 2024.