First Majestic Silver (AG) Stock: Gaining On Production Update


First Majestic Silver Corp. (NYSE: AG) is having an overwhelmingly strong start to the trading session this morning, and for good reason. The company announced production results for the fourth quarter and full year, leading to excitement among investors. Today, we’ll talk about the news, what we’re seeing from AG, and what we’ll be watching for ahead.

AG Gains Big On Production Update

As mentioned above, First Majestic Silver is having an incredibly strong time in the market today after the company issued a press release announcing fourth quarter and full year 2017 production results. The release also included production and cost guidance for 2018. It is expected that production costs will be released on February 28th with the company’s full year and fourth quarter 2017 financial results.

In the press release, AG said that production in 2017 reached a total of 16.2 million equivalent ounces of silver. That represents a 13% decrease of 2016 but is in line with the company’s guidance of 15.7 to 16.6 million silver equivalent ounces.

In the PR, AG said that total production consisted of 9.7 million ounces of silver, 62,991 ounces of gold, 24.5 million pounds of lead and 3.9 million pounds of zinc. As far as silver production in particular, the company’s production fell 3% below the company’s guidance of 10.0 to 10.6 million ounces of silver. However, with improved production in other areas, the total came in line with expectations.

In the press release, First Majestic Silver said that total production in the fourth quarter came to 4.1 million equivalent ounces of silver. This figure included 2.3 million ounces of silver, 17,344 ounces of gold, 4.3 million pounds of lead and 1.3 million pounds of zinc. In a statement, Keith Neumeyer, President and CEO at AG, had the following to offer:

“Santa Elena and San Martin were the star performers in 2017. In 2018, we expect higher grades, throughputs and recoveries to improve the operations at La Encantada, La Parrilla, La Guitarra and Del Toro due to the concerted investments in exploration and development that commenced in late 2016. In addition, the acquisition of the San Dimas mine comes at a great time with all our other operations benefiting simultaneously from increased investments. As a result, the business will benefit from improved operating margins, increased cash flows and greater economies of scale into the coming quarters.”

What We’re Seeing From The Stock

As investors, one of the first things that we learn is that the news moves the market. With the news released by First Majestic Silver Corp being so positive, it only makes sense that we’re seeing strong gains in the value of the stock today. Currently (12:05), AG is trading at $7.26 per share after a gain of $0.47 per share or 6.93% thus far today.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on AG. In particular, we’re interested in following the company’s growth in production and fruits of recent investments and development. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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