Q2 2024 First Majestic Silver Corp Earnings Call Transcript
Key Points
- First Majestic Silver Corp (AG) produced 5.3 million silver equivalent ounces in Q2 2024, including 2.1 million ounces of silver and nearly 40,000 ounces of gold.
- The company has increased its CapEx by 9% and development expenses by 11%, primarily at the San Dimas mine.
- Exploration activities have been ramped up, with an increase from 95,000 meters to 115,000 meters at San Dimas and the initiation of exploration at Jerritt Canyon.
- H2 2024 is expected to be robust, with a projected 26% increase in silver production and a 7% increase in gold production.
- La Encantada mine is expected to see a 38% increase in silver production and a 16% reduction in costs in H2 2024.
- Gold production guidance has been reduced by 3% due to lower grades, primarily at the San Dimas mine.
- There is a slight increase in consolidated costs, with a 3% rise in cash costs and a 4% rise in all-in sustaining costs.
- The stronger-than-expected Mexican peso negatively impacted the company by over $10 million in H1 2024.
- San Dimas is facing challenges with lower grades and union workforce issues, affecting ore throughput.
- The Jerritt Canyon mill requires significant investment for upgrades and winterization, which is not budgeted until possibly 2026.
Thank you for standing by. This is the conference operator. Welcome to the First Majestic Silver second-quarter production results and H2 2024 guidance conference call. (Operator Instructions) The conference is being recorded. (Operator Instructions)
I would now like to turn the conference over to Mr. Keith Neumeyer, President and Chief Executive Officer of First Majestic. Keith, please go ahead.
Thank you, operator, and welcome, everyone, to our mid-year conference call, which we do every July, and I'm surrounded by a number of our key staff today here in Vancouver. I just want to quickly go through the names of each individual.
We have Samir Patel, who's our General Counsel and Corporate Secretary. We also have David Soares, our CFO, Chief Financial Officer. We also have Mani Alkhafaji, VP, Corporate Development and Investor Relations. We also have James Dickson, Director of Finance; [Del Ray], Investor Relations Manager; Joel Faltinsky, Investor
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