First Majestic Silver (AG) - 2023 Q4 - Annual Report

Financial Performance - Revenues for 2023 were $573,801, a decrease of 8.1% from$ 624,221 in 2022[37]. - Net loss for the year was $135,112, compared to a loss of$ 114,276 in 2022, indicating a worsening financial performance[37]. - The company reported a total comprehensive loss of $154,410 in 2023, compared to a loss of$ 123,815 in 2022[39]. - The total cost of sales for 2023 was $423.5 million, compared to$ 471.7 million in 2022, reflecting a decrease of about 10.2%[194]. - The Company reported a total capital expenditure of $141.0 million in 2023, down from$ 229.5 million in 2022, which is a reduction of about 38.5%[194]. - The San Dimas mine generated revenue of $243.0 million in 2023, up from$ 228.7 million in 2022, marking an increase of approximately 6.0%[194]. - The Santa Elena mine's revenue increased to $224.4 million in 2023 from$ 190.2 million in 2022, representing a growth of about 18.0%[194]. - The Jerritt Canyon mine reported a revenue drop to $40.5 million in 2023 from$ 130.2 million in 2022, a decline of approximately 68.9%[194]. - The Company sold 290,432 silver ounces in 2023 at an average price of $26.60 per ounce, compared to 444,576 ounces at$ 26.20 per ounce in 2022[194]. - In 2023, the company's gross revenue from silver was $243,682 thousand, accounting for 42% of total revenue, while gold revenue was$ 332,703 thousand, making up 58%[199]. Assets and Liabilities - Total assets decreased to $1,976,355 in 2023 from$ 2,110,009 in 2022, a decline of 6.3%[43]. - Cash and cash equivalents at the end of 2023 were $125,581, down from$ 151,438 in 2022, representing a decrease of 17.1%[43]. - Total liabilities decreased to $618,235 in 2023 from$ 698,711 in 2022, a reduction of 11.5%[43]. - As of December 31, 2023, total equity increased to $1,358,120, compared to$ 1,411,298 as of December 31, 2022, reflecting a net loss for the period of $135,112[45]. - The company reported a total of$ 406,294 thousand in mining assets for 2023, down from $451,335 thousand in 2022, representing a decrease of about 10%[197]. - The Santa Elena mine's total assets increased to$ 363,460 thousand in 2023 from $295,489 thousand in 2022, reflecting a growth of approximately 22.9%[197]. Internal Controls and Audit - The Company's internal control over financial reporting was assessed as effective as of December 31, 2023[6]. - Deloitte LLP expressed an unqualified opinion on the effectiveness of the Company's internal control over financial reporting as of December 31, 2023[10]. - The audit was conducted in accordance with PCAOB standards, ensuring reasonable assurance about the financial statements being free of material misstatement[12]. - The audit included evaluating management's assessment of impairment indicators and the in-situ value of reserves and resources[19]. - The audit procedures involved assessing management's controls over the evaluation of income tax filing positions and disclosures[24]. Tax Matters - The Company has an ongoing tax dispute with the Mexican Tax Authorities, with potential incremental income tax liability estimated at approximately$ 314.2 million for the years 2010-2019[21]. - The Company has not recognized a tax liability related to the Primero tax dispute with the SAT[21]. - Current income tax is based on taxable earnings for the year, with tax rates and laws applied as of the date of the financial position statement[143]. - Deferred tax assets are recognized for deductible temporary differences only if the realization of the related tax benefit is probable[146]. - The Company reassesses recognized and unrecognized income tax assets at the end of each reporting period, considering future taxable income expectations[150]. Impairment and Restructuring - The Company recognized an impairment charge due to the recoverable amount of the Jerritt Canyon Gold Mine being lower than its carrying value[16]. - The Company identified an indicator of impairment following the temporary suspension of operations at Jerritt Canyon, leading to a reassessment of the recoverable amounts of its mining interests[134]. - The fair value of the cash-generating unit (CGU) at Jerritt Canyon was estimated using the market approach, benchmarking against recent transactions for comparable companies[135]. - The company incurred restructuring costs of $6,883 in 2023, indicating ongoing adjustments to its operational strategy[37]. Share Capital and Equity - Share capital increased to$ 1,879,971 in 2023 from $1,781,280 in 2022, reflecting a growth of 5.5%[43]. - The weighted average shares outstanding increased to 282,331,106 in 2023 from 263,122,252 in 2022, an increase of 7.3%[37]. - The balance of shares outstanding increased to 287,146,715 as of December 31, 2023, up from 272,577,979 in 2022[45]. - The company issued 13,919,634 shares through prospectus offerings, raising$ 92,092 in 2023[45]. - The company declared and paid dividends totaling $5,868 in 2023, compared to$ 6,867 in 2022[45]. Exploration and Mining Operations - The Jerritt Canyon Gold Mine in Nevada has been placed on temporary suspension since March 20, 2023, to focus on exploration and optimization[49]. - The company focuses its exploration efforts on mineral deposits near existing operations, ensuring significant potential for economic ore body development[96]. - Management assesses the economic recoverability of exploration costs based on geological information and existing permits[101]. - Exploration and evaluation expenditures are capitalized upon acquisition of mineral rights and are subject to impairment analysis[94].