First Majestic Silver (AG) has received a new Hold rating, initiated by BMO Capital analyst, Kevin O’Halloran.
Kevin O’Halloran has given his Hold rating due to a combination of factors concerning First Majestic Silver’s performance and potential. In the third quarter, First Majestic’s silver-equivalent production was nearly in line with O’Halloran’s estimate, with gold production exceeding expectations due to strong results from the Santa Elena mine. This consistent performance keeps the company on track to meet the projected 2023 guidance. Furthermore, Santa Elena’s throughput and recovery rates continue to impress, achieving record figures and boosting gold and silver recoveries.
However, there were some areas of concern that likely influenced O’Halloran’s decision to maintain a Hold rating. Production at the San Dimas mine was slightly below estimates due to lower throughput and grades, while La Encantada was affected by a water well collapse. Despite these setbacks, ongoing drilling operations and the relocation of the Central Lab to Santa Elena are positive signs for the future. Overall, O’Halloran believes that First Majestic’s shares are appropriately priced, given its high relative valuation compared to its peers, which underpins his Hold rating.
In another report released today, Scotiabank also maintained a Hold rating on the stock with a $7.00 price target.
AG’s price has also changed moderately for the past six months – from $7.650 to $4.920, which is a -35.69% drop .
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First Majestic Silver (AG) Company Description:
First Majestic Silver Corp. engages in the production, development, exploration and acquisition of mineral properties. It owns and operates producing mines in México including La Encantada Silver Mine; La Parrilla Silver Mine; San Martin Silver Mine; Del Toro Silver Mine; Santa Elena Silver & Gold Mine; and San Dimas Silver & Gold Mine. The company was founded by Keith Neumeyer on September 26, 1979 and is headquartered in Vancouver, Canada.
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