VANCOUVER - First Majestic Silver Corp. (NYSE: NYSE:AG) (TSX: AG) (FSE: FMV) has announced significant silver and gold mineralization findings at its San Dimas Silver/Gold Mine in Durango State, Mexico. The exploration program aimed at testing new mineral targets and converting resources to reserves has yielded positive results, according to the company's recent press release.
The drilling campaign at San Dimas has intersected high-grade gold and silver across multiple veins, particularly within the central and western parts of the property. Notable veins include Perez, Sinaloa-Elia, Santa Regina, and Santa Teresa. High-grade intercepts from the Perez vein, for example, showed 7.36 grams per tonne (g/t) of gold and 1,129 g/t of silver over 6.72 meters.
The Sinaloa-Elia vein system also returned significant results, with one intercept containing 39.28 g/t gold and 1,905 g/t silver over 1.76 meters. The Santa Regina vein highlights include an intercept of 13.24 g/t gold and 1,501 g/t silver over 0.94 meters. Drilling at the Santa Teresa vein confirmed the vein's continuity and prospectivity, with results such as 4.86 g/t gold and 511 g/t silver over 2.18 meters.
First Majestic's President & CEO, Keith Neumeyer, expressed satisfaction with the drilling outcomes, noting that the results have exceeded expectations in some cases. The exploration potential of the Perez vein remains open in both directions, and the Sinaloa mineralized system is open down-dip. Similarly, the Santa Teresa mineralization is open for about one kilometer to the west.
The company's exploration data, including sampling, analytical, and test data, has been verified by Gonzalo Mercado, P. Geo., the Vice President of Exploration and Technical Services at First Majestic and a Qualified Person under National Instrument 43-101.
First Majestic Silver Corp. is a mining company focused on silver and gold production in Mexico and the United States. It operates several mines and also owns a minting facility, First Mint, LLC, which sells silver products directly to the public.
In other recent news, First Majestic Silver Corp. experienced a shift in its price target as BMO Capital Markets raised it from Cdn$8.50 to Cdn$10.00. This adjustment follows the company's first-quarter earnings report, which showed a slight miss on estimates. First Majestic Silver reported a loss of Cdn$0.06 per share, a cent off the predicted Cdn$0.05 per share. However, the company's revenue and cost of sales aligned with estimates set by BMO Capital.
The company's all-in sustaining costs (AISC) for the first quarter were reported at $21.53 per ounce of silver equivalent, a rise from $18.50 per ounce in the previous quarter. The management attributed this increase to lower production volumes and the strengthening of the Mexican peso. Despite these challenges, First Majestic Silver remains hopeful, planning to ramp up production in the latter half of the year to meet its annual guidance targets.
InvestingPro Insights
As First Majestic Silver Corp. (NYSE: AG) announces promising exploration results at its San Dimas Silver/Gold Mine, investors and industry watchers are keen to understand the financial health and market performance of the company. According to InvestingPro data, First Majestic Silver Corp. has a market capitalization of approximately 1.8 billion USD, indicating its size and significance in the precious metals market.
Despite the positive exploration news, the company's recent financial performance presents a mixed picture. The P/E Ratio (Adjusted) for the last twelve months as of Q1 2024 stands at -60.56, reflecting market skepticism about the company's profitability in the near term. This is in line with the InvestingPro Tip that analysts do not anticipate the company will be profitable this year. Additionally, the company's revenue has seen a decline of 16.25% over the last twelve months as of Q1 2024, which may raise concerns about its growth trajectory.
On a more positive note, the company's liquid assets exceed short-term obligations, suggesting a solid liquidity position to meet its immediate financial needs. This is further supported by the fact that First Majestic operates with a moderate level of debt, as highlighted in another InvestingPro Tip.
For investors looking to delve deeper into First Majestic Silver Corp.'s financials and market performance, InvestingPro offers additional valuable insights. There are currently 6 additional InvestingPro Tips available at https://www.investing.com/pro/AG. These can provide a more comprehensive understanding of the company's position and prospects. Interested readers can access these tips and take advantage of a special offer using coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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