BMO Capital Cuts Majestic First Silver Price Target by 7%

  • BMO Capital analyst Ryan Thompson lowered the price target to First Majestic Silver Corp IN NYSE: AG) at CA$12 instead of CA$13 while maintaining market performance rating on stocks.
  • First Majestic is an intermediate primary silver producer with three operating mines in Mexico.
  • The analyst says first-quarter consolidated gold and silver production missed estimates by 14% and 19%, respectively. 1Q22 production represents ~20% of the midpoint of the full year silver forecast and ~22% of the gold forecast.
  • Thompson adds that silver production was lower than expected at Santa Elena and San Dimas due to an increase in COVID-19 cases early in the quarter.
  • On the gold side, Jerritt Canyon grades were below expectations. Thompson reduced the BPA expectation of 1Q22.
  • Recently, First Majestic released first quarter production results, with total production up 59% year-over-year. The company produced 7.2 million ounces of silver equivalent, consisting of 2.6 million ounces of silver and 58,892 ounces of gold.
  • Meanwhile, production was down 16% sequentially due to a high absenteeism rate linked to an increase in COVID-19 cases in January and February, which led to lower tons processed in all regions. Mexican operational units.
  • Price action: FR shares are trading down 4.44% at C$16.77 on the TSX, and AG is down 4.64% at $13.25 on the NYSE when last checked on Tuesday.

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