San Dimas Standoff Unresolved as Q3 Revenue Misses, Guidance Pulled
AG sits 47% above its 52-week low of $10.19.
Summary
San Dimas is still shut in by a labor dispute that began Sept. 18 and cost 12 production days in Q3, and management has withdrawn guidance for the mine. The union wants First Majestic to cover 100% of workers' income taxes on bonuses; CEO Keith Neumeyer says the company rejected that and is pursuing legal proceedings while holding daily talks. Q3 revenue rose 38% to $394.1M but missed the $423M consensus, and adjusted EPS of $0.19 only matched estimates. Higher metal prices did the heavy lifting — realized silver up 59%, EBITDA up 78% to $228.8M — but cash costs jumped to $21.75 per ounce from $14.83. The balance sheet is strong with $1.23B in treasury holdings, and the dividend was raised 176% to 1.42 cents. The stock fell 4.48% to $14.70 on the print. Exploration results across four assets, including Jerritt Canyon, are expected in the coming weeks.
At the time of this announcement, AG was trading at $14.94 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $7.4B. The 52-week trading range was $10.19 to $32.04. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Benzinga.