Shares of First Majestic Silver Corp. (AG 10.33%) took off in March, rising 10.9% for the month after reporting solid fourth-quarter results, getting a favorable shareholder vote on a key acquisition, and renewing its stock repurchase program.
First Majestic Silver reported its fourth-quarter and full-year results after the market closed on the last day of February. On the one hand, that report was a bit disappointing since the company reported an adjusted loss of $0.04 per share, which was $0.02 per share worse than analysts' expectations due to higher costs and lower production. However, the company also noted that it sees a reversal of fortunes ahead as the investments it made last year should deliver a double-digit increase in its silver production this year.
The company also reported positive news on the strategic front in March after shareholders of Primero Mining voted in favor of First Majestic's acquisition of the company. The deal will add one of Mexico's largest and richest mines to First Majestic's portfolio when it closes at the end of April.
First Majestic also renewed its share repurchase program last month after the previous one expired in March. While the company only repurchased 230,000 shares under its prior authorization, it could buy back nearly 8.3 million shares over the next year under its latest program, or 5% of its outstanding stock.
First Majestic Silver is starting to turn the corner after a challenging year when production declined and took its shares down with it. This year, however, looks much more promising thanks to the investments it made last year as well as its upcoming acquisition, which when combined with its share repurchase program could enable this silver stock to maintain its upward momentum.