- Quarterly revenues reached a brand new Firm file of $204.9 million, representing a 64% enhance in comparison with Q3 2021.
- Recorded free money circulation of $66.4 million primarily as a result of sale of 1.4 million ounces of silver held in stock, increased gold manufacturing at Santa Elena as a result of introduction of Ermitaño ore to the Santa Elena processing plant in November and file quarterly manufacturing at San Dimas.
- Elevated mine working earnings to $40.4 million, in comparison with $3.5 million in Q3 2021.
- Elevated working money flows earlier than working capital and taxes to $71.8 million, in comparison with $22.6 million in Q3 2021.
- Web earnings of ($4.0) million, or EPS of ($0.02).
- Adjusted web earnings of $4.1 million, or $0.02 per share, after excluding non-cash or uncommon gadgets.
- Money prices of $12.32 per payable silver equal ounce, representing a 13% lower in comparison with Q3 2021.
- All-in sustaining prices (“AISC”) of $17.26 per payable silver equal as soon as, representing a 13% lower in comparison with Q3 2021.
- Realized a median silver worth of $24.18 per payable silver equal ounce, representing a 5% enhance in comparison with Q3 2021.
- Ended the quarter with money and money equivalents of $237.9 million.
2021 HIGHLIGHTS
- Generated file annual revenues of $584.1 million, representing a 61% enhance from 2020, primarily as a result of acquisition of the Jerritt Canyon Gold Mine on April 30, 2021 and a 19% enhance within the realized common silver worth.
- Mine working earnings of $101.4 million representing a 3% lower from the earlier yr because of increased prices at Jerritt Canyon, ramp-up prices at Santa Elena’s Ermitaño mine in addition to a stronger Mexican Peso towards the US Greenback.
- Working money flows earlier than working capital and taxes of $176.8 million.
- Web earnings of ($4.9) million, or fundamental earnings per share (“EPS”) of ($0.02).
- Adjusted web earnings of $6.0 million, or $0.02 per share, after excluding non-cash or uncommon gadgets.
- Money prices of $13.23 per payable silver equal ounce representing a 47% enhance in comparison with 2020 primarily because of increased prices at Jerritt Canyon and Santa Elena.
- All-in sustaining prices (“AISC”) of $18.85 per payable silver equal ounce representing a 34% enhance in comparison with the earlier yr because of increased money prices, mixed with a rise in sustaining prices associated to the $10.4 million funding within the tailings storage elevate venture at Jerritt Canyon which was efficiently accomplished within the fourth quarter of 2021.
- Realized a median silver worth of $25.16 per payable silver equal ounce, representing a 19% enhance in comparison with 2020.
CEO COMMENTS
“Sturdy manufacturing within the fourth quarter together with the sale of 1.4 million silver ounces from stock generated file quarterly revenues, vital free money circulation and AISC reductions throughout most websites,” acknowledged Keith Neumeyer, President and CEO of First Majestic. “One of the vital drivers to this quarters profitability was the beginning of preliminary manufacturing from the brand new Ermitaño mine at Santa Elena which lowered Santa Elena’s general AISC by 34% to $14.02 per silver equal ounce in comparison with the prior quarter. Moreover, we anticipate this pattern in price reductions to proceed as increased grades and throughputs are achieved at Ermitaño all through 2022 and 2023. As well as, on account of the file revenues, our fourth quarter dividend was elevated 61% when in comparison with the prior quarter.”
2021 ANNUAL AND FOURTH QUARTER HIGHLIGHTS
Key Efficiency Metrics | 2021-This fall | 2021-Q3 | Change This fall vs Q3 | 2021 | 2020 | Change ’21 vs ’20 | ||||||||||||
| Operational | ||||||||||||||||||
| Ore Processed / Tonnes Milled | 955,810 | 943,126 | 1% | 3,339,394 | 2,213,954 | 51% | ||||||||||||
| Silver Ounces Produced | 3,358,809 | 3,302,086 | 2% | 12,842,945 | 11,598,380 | 11% | ||||||||||||
| Silver Equal Ounces Produced | 8,561,023 | 7,319,441 | 17% | 26,855,783 | 20,379,010 | 32% | ||||||||||||
| Money Prices per Silver Equal Ounce (1) | $ | 12.32 | $ | 14.09 | (13% | ) | $ | 13.23 | $ | 9.00 | 47% | |||||||
| All-in Sustaining Price per Silver Equal Ounce (1) | $ | 17.26 | $ | 19.93 | (13% | ) | $ | 18.85 | $ | 14.03 | 34% | |||||||
| Complete Manufacturing Price per Tonne (1) | $ | 105.37 | $ | 106.52 | (1% | ) | $ | 102.77 | $ | 79.59 | 29% | |||||||
| Common Realized Silver Worth per Ounce (1) | $ | 24.18 | $ | 23.10 | 5% | 25.16 | $ | 21.15 | 19% | |||||||||
| Monetary (in $thousands and thousands) | ||||||||||||||||||
| Revenues | $ | 204.9 | $ | 124.6 | 64% | $ | 584.1 | $ | 363.9 | 61% | ||||||||
| Mine Working Earnings | $ | 40.4 | $ | 3.5 | NM | $ | 101.4 | $ | 105.1 | (3% | ) | |||||||
| Web (Loss) Earnings | ($4.0 | ) | ($18.4 | ) | (78% | ) | ($4.9 | ) | $ | 23.1 | (121% | ) | ||||||
| Working Money Flows earlier than Working Capital and Taxes | $ | 71.8 | $ | 22.6 | NM | $ | 176.8 | $ | 107.3 | 65% | ||||||||
| Money and Money Equivalents | $ | 237.9 | $ | 192.8 | 23% | $ | 237.9 | $ | 238.6 | 0% | ||||||||
| Working Capital (1) | $ | 224.4 | $ | 262.5 | (15% | ) | $ | 224.4 | $ | 254.4 | (12% | ) | ||||||
| Free Money Circulation (1) | $ | 66.4 | ($24.7 | ) | NM | ($16.9 | ) | $ | 30.7 | (155% | ) | |||||||
| Shareholders | ||||||||||||||||||
| Earnings (Loss) per Share (“EPS”) – Fundamental | ($0.02 | ) | ($0.07 | ) | (71% | ) | ($0.02 | ) | $ | 0.11 | (119% | ) | ||||||
| Adjusted EPS (1) | $ | 0.02 | ($0.07 | ) | NM | $ | 0.02 | $ | 0.18 | (86% | ) |
NM – Not significant
(1) The Firm studies non-GAAP measures which embody money prices per ounce produced, all-in sustaining price per ounce, complete manufacturing price per tonne, common realized silver worth per ounce bought, working capital, adjusted EPS and free money circulation. These measures are extensively used within the mining trade as a benchmark for efficiency, however should not have a standardized which means and will differ from strategies utilized by different corporations with related descriptions. For an entire description of how the Firm calculates such measures please see pages 45 to 53 within the Firm’s administration dialogue and evaluation for the fiscal yr ended December 31, 2021, filed on SEDAR at www.sedar.com and EDGAR at www.sec.gov.
2021 FINANCIAL RESULTS
The Firm generated file revenues totaling $584.1 million in 2021 due primarily to the addition of the Jerritt Canyon Gold Mine through the second quarter, a 32% enhance in payable silver equal ounces and a 19% enhance within the common realized silver worth per ounce which averaged $25.16 per ounce in comparison with $21.15 per ounce in 2020.
Annual mine working earnings totaled $101.4 million in comparison with $105.1 million in 2020. The lower in mine working earnings was primarily pushed by increased prices at Jerritt Canyon to organize the mine for increased throughputs and enhance plant efficiency together with elevated prices at Santa Elena to organize the Ermitaño mine for manufacturing ramp-up within the fourth quarter of 2021 which was partially offset by a rise in income.
Money flows earlier than actions in working capital and taxes through the yr was $176.8 million in comparison with $107.3 million within the prior yr, a 65% enhance.
Adjusted EPS (non-GAAP), normalized for non-cash or uncommon gadgets comparable to impairment of non-current property, share-based funds and deferred earnings taxes for the yr ended December 31, 2021 was $6.0 million, or $0.02 per share in comparison with $37.4 million, or $0.18 per share in 2020.
The Firm ended 2021 with a robust treasury consisting of $237.9 million in money and money equivalents and a working capital place of $224.4 million.
FULL YEAR 2021 OPERATIONAL RESULTS
| Annual Manufacturing Abstract | San Dimas | Santa Elena | La Encantada | Jerritt Canyon | Consolidated | ||||||||||
| Ore Processed / Tonnes Milled | 822,791 | 879,060 | 1,004,144 | 633,400 | 3,339,394 | ||||||||||
| Silver Ounces Produced | 7,646,898 | 1,954,492 | 3,241,555 | – | 12,842,945 | ||||||||||
| Gold Ounces Produced | 81,237 | 42,088 | 460 | 68,567 | 192,353 | ||||||||||
| Silver Equal Ounces Produced | 13,525,049 | 5,041,937 | 3,274,798 | 5,013,999 | 26,855,783 | ||||||||||
| Money Prices per Silver Equal Ounce(1) | $ | 9.01 | $ | 15.40 | $ | 13.49 | $ | 22.21 | $ | 13.23 | |||||
| All-in Sustaining Price per Silver Equal Ounce(1) | $ | 12.70 | $ | 19.20 | $ | 16.66 | $ | 28.01 | $ | 18.84 | |||||
| Money price per Gold Equal Ounce(1) | N/A | N/A | N/A | $ | 1,624 | N/A | |||||||||
| All-in sustaining prices per Gold Equal Ounce AuEq Ounce(1) | N/A | N/A | N/A | $ | 2,048 | N/A | |||||||||
| Complete Manufacturing Price per Tonne(1) | $ | 142.00 | $ | 85.15 | $ | 42.25 | $ | 172.20 | $ | 102.77 |
*Money Price per Ounce and All-in Sustaining Price per Ounce are calculated on a per payable silver equal ounce foundation. For an entire description of how the Firm calculates such measures please see pages 45 to 53 within the Firm’s administration dialogue and evaluation for the fiscal yr ended December 31, 2021, filed on SEDAR at www.sedar.com and EDGAR at www.sec.gov.
Complete silver manufacturing reached 12.8 million ounces barely lacking the decrease finish of the Firm’s revised steering vary of 13.0 to 13.8 million silver ounces. Complete gold manufacturing reached 192,353 ounces and was inside the increased finish of the Firm’s steering vary of manufacturing between 181,000 to 194,000 ounces. This robust efficiency was primarily as a result of processing of Ermitaño ore on the Santa Elena plant and powerful silver and gold grades at San Dimas within the fourth quarter.
Money price per silver equal ounce within the yr was $13.23 in comparison with $9.00 in 2020. The rise in money price per ounce was primarily as a result of addition of Jerritt Canyon which had been producing at the next money price for the reason that acquisition. Moreover, there have been increased prices at Santa Elena because the Ermitaño mine moved from capital funding into manufacturing in November, forward of schedule.
AISC per silver equal ounce in 2021 was $18.84, in comparison with $14.03 within the earlier yr. The rise in AISC per was primarily attributed to increased money prices, mixed with a rise in sustaining capital prices associated to the $10.4 million funding within the tailings storage elevate venture at Jerritt Canyon which was accomplished within the fourth quarter of 2021. The rise in AISC was partially offset by elevated manufacturing at San Dimas, Santa Elena and Jerritt Canyon through the yr.
The Firm’s complete capital expenditures in 2021 was $219.8 million consisting of $70.2 million for underground growth, $69.1 million in exploration (contains $23.1 million in investments at Ermitaño and $7.5 million associated to the Springpole Silver Stream settlement), $56.8 million in property, plant and gear, and $23.7 million in innovation initiatives. Complete investments in 2021, on a mine-by-mine foundation, primarily consisted of $56.4 million at San Dimas, $67.5 million at Santa Elena (together with $37.3 million for the Ermitaño venture), $46.5 million at Jerritt Canyon, $11.4 million at La Encantada and $36.0 million for different strategic initiatives.
This fall 2021 FINANCIAL RESULTS
Revenues generated within the fourth quarter of 2021 reached a brand new Firm file of $204.9 million, representing a 64% enhance in comparison with the third quarter of 2021, primarily as a result of processing of Ermitaño ore by the Santa Elena plant and the sale of 1.4 million silver ounces of stock beforehand withheld from the prior quarter.
The common realized silver worth averaged $24.18 per ounce through the quarter, a 5% enhance in comparison with $23.10 within the third quarter of 2021.
Mine working earnings had been $40.4 million, in comparison with $3.5 million within the third quarter of 2021. The rise was primarily attributed to the sale of the silver stock withheld within the third quarter of 2021.
Working money flows earlier than actions in working capital and earnings taxes had been $71.8 million through the quarter in comparison with $22.6 million within the third quarter of 2021.
The Firm recorded web earnings of ($4.0) million (EPS of ($0.02)) in comparison with ($18.4) million (EPS of ($0.07)) within the third quarter of 2021.
Adjusted web earnings for the fourth quarter was $4.1 million (Adjusted EPS of $0.02) in comparison with ($18.1) million (Adjusted EPS of ($0.07)) within the third quarter of 2021, after excluding non-cash or non-recurring gadgets.
This fall 2021 OPERATIONAL RESULTS
| Fourth Quarter Manufacturing Abstract | San Dimas | Santa Elena | La Encantada | Jerritt Canyon | Consolidated | ||||||||||
| Ore Processed / Tonnes Milled | 206,738 | 224,459 | 268,239 | 256,374 | 955,810 | ||||||||||
| Silver Ounces Produced | 2,174,353 | 426,870 | 757,586 | – | 3,358,809 | ||||||||||
| Gold Ounces Produced | 23,795 | 19,810 | 146 | 23,660 | 67,411 | ||||||||||
| Silver Equal Ounces Produced | 4,015,346 | 1,955,550 | 768,796 | 1,821,331 | 8,561,023 | ||||||||||
| Money Prices per Silver Equal Ounce | $ | 7.98 | $ | 11.56 | $ | 14.51 | $ | 21.71 | $ | 12.32 | |||||
| All-in Sustaining Price per Silver Equal Ounce | $ | 11.29 | $ | 14.02 | $ | 19.41 | $ | 26.95 | $ | 17.26 | |||||
| Money price per Gold Equal Ounce | N/A | N/A | N/A | $ | 1,674 | N/A | |||||||||
| All-In sustaining prices per Gold Equal Ounce | N/A | N/A | N/A | $ | 2,077 | N/A | |||||||||
| Complete Manufacturing Price per Tonne | $ | 146.30 | $ | 93.78 | $ | 39.70 | $ | 151.23 | $ | 105.37 |
For an entire description of how the Firm calculates such measures please see pages 45 to 53 within the Firm’s administration dialogue and evaluation for the fiscal yr ended December 31, 2021, filed on SEDAR at www.sedar.com and EDGAR at www.sec.gov.
Complete manufacturing within the fourth quarter of 2021 reached a file 8.6 million silver equal ounces, consisting of three.4 million ounces of silver and 67,411 ounces of gold. Quarterly silver and gold manufacturing elevated 2% and 24%, respectively, in comparison with the prior quarter.
Money price per ounce for the quarter decreased 13% to $12.32 per payable silver equal ounce when in comparison with the earlier quarter. The lower in money price per silver equal ounce was primarily because of a rise in manufacturing from San Dimas and Santa Elena.
AISC per ounce within the fourth quarter decreased 13% to $17.26 per ounce when in comparison with the earlier quarter. The lower in AISC was primarily attributed to a rise in manufacturing at San Dimas and Santa Elena in addition to decrease sustaining capital expenditures within the fourth quarter as expenditures associated to the tailings storage elevate venture at Jerritt Canyon have now been accomplished.
The Firm’s complete capital expenditures within the fourth quarter of 2021 had been $56.8 million consisting of $17.6 million for underground growth, $14.5 million in exploration (contains $6.1 million in investments at Ermitaño), $23.1 million in property, plant and gear, and $1.6 million in innovation initiatives. Complete investments within the fourth quarter of 2021, on a mine-by-mine foundation, primarily consisted of $12.2 million at San Dimas, $20.2 million at Santa Elena (together with $13.0 million for the Ermitaño venture), $15.9 million at Jerritt Canyon, $3.0 million at La Encantada, and $5.3 million for different strategic initiatives.
This fall 2021 DIVIDEND ANNOUNCEMENT
The Firm is happy to announce that its Board of Administrators has declared a money dividend cost within the quantity of $0.0079 per widespread share for the fourth quarter of 2021. The fourth quarter money dividend shall be paid to holders of file of First Majestic’s widespread shares as of the shut of enterprise on March 21, 2022 and shall be distributed on or about April 4, 2022.
Underneath the Firm’s dividend coverage, the quarterly dividend per widespread share is focused to equal roughly 1% of the Firm’s web quarterly revenues divided by the Firm’s then excellent widespread shares on the file date.
The quantity and distribution dates of future dividends stay on the discretion of the Board of Administrators. This dividend qualifies as an ‘eligible dividend’ for Canadian earnings tax functions. Dividends paid to shareholders exterior Canada (non-resident traders) could also be topic to Canadian non-resident withholding taxes.
APPOINTMENT OF CHIEF FINANICIAL OFFICER
The Firm is happy to announce the appointment of David Soares, a seasoned senior mining govt with confirmed success in main capital-intensive industrial organizations, as the brand new Chief Monetary Officer efficient March 28, 2022.
Mr. Soares not too long ago served because the Chief Monetary Officer of Kirkland Lake Gold the place he performed a key position in main the event and execution of a strategic plan remodeling Kirkland from an Intermediate to a Senior gold producer. Over his profession, Mr. Soares has labored with each base and valuable metals corporations together with Xstrata/Glencore, Barrick Gold and Baffinland Iron Ore. Mr. Soares graduated along with his Bachelor of Commerce and Finance from the College of Toronto and accomplished his CPA by the Institute of Chartered Accountants of Ontario. Mr. Soares additionally holds his MBA by Richard Ivey Faculty of Enterprise on the College of Western Ontario.
“On behalf of First Majestic, I’m happy to welcome David to the manager staff,” acknowledged Keith Neumeyer, President & CEO. “His information and former experiences will play an essential position within the development of the Firm, each internally and externally. I want to thank Andrew Poon, Vice-President of Finance for serving because the Interim Chief Monetary Officer over the past three months.”
ABOUT THE COMPANY
First Majestic is a publicly traded mining firm centered on silver and gold manufacturing in Mexico and america. The Firm presently owns and operates the San Dimas Silver/Gold Mine, the Jerritt Canyon Gold Mine, the Santa Elena Silver/Gold Mine and the La Encantada Silver Mine.
First Majestic is proud to supply a portion of its silver manufacturing on the market to the general public. Bars, ingots, cash and medallions can be found for buy on-line at its Bullion Retailer at a number of the lowest doable premiums.
FOR FURTHER INFORMATION contact information@firstmajestic.com, go to our web site at www.firstmajestic.com or name our toll-free no 1.866.529.2807.
FIRST MAJESTIC SILVER CORP.
“signed”
Keith Neumeyer, President & CEO
Cautionary Be aware Concerning Ahead-Wanting Statements
This press launch accommodates “ahead‐wanting info” and “forward-looking statements” below relevant Canadian and U.S. securities legal guidelines (collectively, “ahead‐wanting statements”). These statements relate to future occasions or the Firm’s future efficiency, enterprise prospects or alternatives which are based mostly on forecasts of future outcomes, estimates of quantities not but determinable and assumptions of administration made in gentle of administration’s expertise and notion of historic developments, present circumstances and anticipated future developments. Ahead-looking statements embody, however are usually not restricted to, statements with respect to: the Firm’s enterprise technique; industrial mining operations; money circulation; budgets; the timing and quantity of estimated future manufacturing; ore grades; restoration charges; and prices; Assumptions might show to be incorrect and precise outcomes might differ materially from these anticipated. Consequently, steering can’t be assured. As such, traders are cautioned to not place undue reliance upon steering and forward-looking statements as there may be no assurance that the plans, assumptions or expectations upon which they’re positioned will happen. All statements apart from statements of historic reality could also be ahead‐wanting statements. Statements regarding confirmed and possible mineral reserves and mineral useful resource estimates can also be deemed to represent ahead‐wanting statements to the extent that they contain estimates of the mineralization that shall be encountered as and if the property is developed, and within the case of measured and indicated mineral assets or confirmed and possible mineral reserves, such statements mirror the conclusion based mostly on sure assumptions that the mineral deposit may be economically exploited. Any statements that specific or contain discussions with respect to predictions, expectations, beliefs, plans, projections, targets or future occasions or efficiency (typically, however not all the time, utilizing phrases or phrases comparable to “search”, “anticipate”, “plan”, “proceed”, “estimate”, “count on”, “might”, “will”, “venture”, “predict”, “forecast”, “potential”, “goal”, “intend”, “may”, “may”, “ought to”, “consider” and related expressions) are usually not statements of historic reality and could also be “ahead‐wanting statements”.
Precise outcomes might range from forward-looking statements. Ahead-looking statements are topic to recognized and unknown dangers, uncertainties and different components which will trigger precise outcomes to materially differ from these expressed or implied by such forward-looking statements, together with however not restricted to: the period and results of the coronavirus and COVID-19, and every other pandemics or public well being crises on our operations and workforce, and the consequences on world economies and society, precise outcomes of exploration actions; conclusions of financial evaluations; modifications in venture parameters as plans proceed to be refined; commodity costs; variations in ore reserves, grade or restoration charges; precise efficiency of plant, gear or processes relative to specs and expectations; accidents; fluctuations in prices; labour relations; availability and efficiency of contractors; relations with native communities; modifications in nationwide or native governments; modifications in relevant laws or software thereof; delays in acquiring approvals or financing or within the completion of growth or development actions; change charge fluctuations; necessities for added capital; authorities regulation; environmental dangers; reclamation bills; outcomes of pending litigation together with appeals of judgments; resolutions of claims and arbitration proceedings; negotiations and regulatory proceedings; limitations on insurance coverage protection in addition to these components mentioned within the part entitled “Description of the Enterprise – Threat Elements” within the Firm’s most up-to-date Annual Data Type, accessible on www.sedar.com, and Type 40-F on file with america Securities and Trade Fee in Washington, D.C. Though First Majestic has tried to establish essential components that would trigger precise outcomes to vary materially from these contained in forward-looking statements, there could also be different components that trigger outcomes to not be as anticipated, estimated or meant.
The Firm believes that the expectations mirrored in these ahead‐wanting statements are affordable, however no assurance may be provided that these expectations will show to be appropriate and such ahead‐wanting statements included herein shouldn’t be unduly relied upon. These statements converse solely as of the date hereof. The Firm doesn’t intend, and doesn’t assume any obligation, to replace these forward-looking statements, besides as required by relevant legal guidelines.
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