First Majestic Hikes Dividend 217% Despite Missing Q2 Earnings Estimates

Key Facts

In a move reflecting the benefits of surging precious metals prices, First Majestic Silver announced a massive 217% hike in its quarterly dividend. This decision follows a 57% surge in Q2 revenue to $415.5 million, driven by increased cash reserves resulting from a rally in silver prices. Despite this robust top-line growth, the results fell short of Wall Street estimates for both revenue and earnings, with adjusted earnings hitting 21 cents per share against a consensus of 30 cents.

This shift in capital return policy was supported by a 90% year-over-year rise in average realized silver prices and a 40% increase in gold prices. This performance helped adjusted EBITDA more than double to $257.1 million. The company further strengthened its financial position with $1.25 billion in treasury assets, enabling the repurchase of 1.2 million shares during the period.

Looking ahead, markets are monitoring production consistency as first-half silver production reached 7.3 million ounces, representing 50% of revised full-year guidance. Upcoming economic catalysts include Mexico's Balance of Trade data on July 27, which may impact the operating environment for the company's primary mining assets.