First Majestic Silver (NYSE:AG) Corp. reported a widened net loss in the third quarter of 2023, leading to a significant drop in its stock price. The company's net loss grew to $27.1 million, up from $20.7 million in the same period last year. This news resulted in a 14% decrease in the stock price to C$6.22 in Toronto and a 15% fall to $4.43 on the New York Stock Exchange (NYSE).
This increased loss was largely due to lower production, restructuring costs, additional expenses from the temporary suspension of the Jerritt Canyon operation, and a one-time $1.6 million loss from the disposal of La Parrilla. These factors have contributed to year-to-date declines of 45% and 47% on the Toronto and New York exchanges respectively.
Despite these challenges, First Majestic Silver managed to narrow its adjusted per-share loss to 4 cents. However, revenue fell by 17% to $133.2 million as silver-equivalent output dropped to 6.3 million ounces.
This decline occurred despite a 7% decrease in production cost per ton and a 14% rise in the realized price per silver equivalent ounce, indicating that the company's financial woes are not solely due to market conditions but also internal operational issues.
The company's financial performance this quarter underscores the challenges faced by mining companies amidst fluctuating commodity prices and operational disruptions.
InvestingPro Insights
According to InvestingPro, First Majestic Silver Corp. has been facing a declining trend in earnings per share and its revenue has been declining at an accelerating rate. These InvestingPro Tips are consistent with the company's reported widened net loss and decreased revenue in the third quarter of 2023.
In terms of InvestingPro Data, as of Q3 2023, the company's P/E Ratio stands at -7.68, reflecting the company's lack of profitability. The company's revenue for the last twelve months as of Q3 2023 was 611.58M USD, showing a decrease of 5.3%. The company's Gross Profit Margin for the same period was 20.02%, which could be seen as a result of the company's operational disruptions and fluctuating commodity prices.
InvestingPro offers a wealth of additional tips and data for those interested in delving deeper into the financial performance of First Majestic Silver Corp. and other companies.
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