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Investing.com - H.C. Wainwright raised its price target on First Majestic Silver (NYSE:AG) to $12.75 from $11.50 on Thursday, while maintaining a Buy rating on the stock. The stock, currently trading at $8.43, has shown remarkable momentum with a 53.84% gain year-to-date, according to InvestingPro data.
The price target increase follows First Majestic’s release of its second-quarter 2025 production results on Wednesday. The company reported production of 7.9 million Silver Equivalent Ounces (SEOs), representing a 48% increase year-over-year. This production growth has contributed to the company’s strong revenue growth, with InvestingPro data showing a 33.6% increase in revenue over the last twelve months.
The production included 3.7 million ounces of silver, up 76% year-over-year, while gold production reached 33,865 ounces, down 14% from the same period last year. The company also produced 16.1 million pounds of zinc and 9.0 million pounds of lead, representing quarter-over-quarter increases of 29% and 20%, respectively.
H.C. Wainwright attributed the significant production growth primarily to First Majestic’s recent acquisition of a 70% ownership stake in the Cerro Los Gatos mine. The firm also highlighted a 17% year-over-year production increase at the San Dimas mine, which it credited to increased mining rates at the site.
During the quarter, First Majestic operated 25 active drill rigs across its properties, with five at Cerro Los Gatos, seven at Santa Elena, 13 at San Dimas, and one at La Encantada. Production at Santa Elena decreased 10% year-over-year due to lower grade ores from the Ermitaño mine, though management indicated these results aligned with mine plan expectations. For deeper insights into First Majestic’s operational performance and financial outlook, including exclusive analysis and 8 additional ProTips, check out the comprehensive Pro Research Report available on InvestingPro.
In other recent news, First Majestic Silver reported a substantial increase in production, with a 49% year-over-year rise in Silver Equivalent Ounces (SEOs) for the quarter. This surge included 7.7 million SEOs, comprising 3.7 million ounces of silver, which marked an 88% increase from the previous year, and 36,469 ounces of gold, showing a modest 1% rise. The company’s revenue growth was significantly driven by its acquisition of a 70% stake in the Cerro Los Gatos mine. Additionally, First Majestic’s other mines, such as Santa Elena, San Dimas, and La Encantada, also saw production increases compared to the previous year.
Operational improvements were noted at the San Dimas mine, resulting in an 11% year-over-year rise in production. The company’s aggressive drilling strategy was highlighted, with 28 active drill rigs across its assets, including Cerro Los Gatos, Santa Elena, San Dimas, and La Encantada. H.C. Wainwright reaffirmed a Buy rating on First Majestic Silver, maintaining a price target of $11, reflecting confidence in the company’s operational efficiencies. The analysts expressed optimism about the smooth integration of the Cerro Los Gatos Mine into First Majestic’s portfolio and its potential for a significant year in 2025.
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