Silver Producer First Majestic (AG) Reports Q3 Financial Results
First Majestic (AG: NYSE; FR: TSX) is a mining company focused on silver production in Mexico and is aggressively pursuing the development of its existing mineral property assets. The Company presently owns and operates the San Dimas Silver/Gold Mine, the Santa Elena Silver/Gold Mine, the La Encantada Silver Mine, the La Parrilla Silver Mine, the San Martin Silver Mine and the Del Toro Silver Mine. Production from these mines are projected to be between 12.0 to 13.2 million silver ounces or 20.5 to 22.6 million silver equivalent ounces in 2018.
This week First Majestic announced their unaudited interim consolidated financial results of the Company for Q3 ended September 30, 2018. The full version of the financial statements and the management discussion and analysis can be viewed on the Company’s website at www.firstmajestic.com or on SEDAR at www.sedar.com and on EDGAR at www.sec.gov. All amounts are in U.S. dollars unless stated otherwise.
Q3 2018 HIGHLIGHTS as reported:
- Record silver equivalent production of 6.7 million ounces, a 31% increase compared to Q2 2018
- Record silver production of 3.5 million ounces, a 27% increase compared to Q2 2018
- Revenues of $88.5 million, an 11% increase compared to Q2 2018
- Mine operating earnings of ($0.1) million
- Cash flow per share was $0.11 per share (non-GAAP)
- Cash costs were $6.85 per payable silver ounce (net of by-product credits), a 10% decrease compared to Q2 2018
- All-in sustaining costs (“AISC”) were $15.12 per payable silver ounce, an 8% decrease compared to Q2 2018
- Realized average silver price reached a nine-year low of $14.66 per ounce, a 12% decrease compared to Q2 2018
- Adjusted net earnings of ($6.4) million or ($0.03) per share
- Invested $34.7 million on capital expenditures
- Ended the quarter with $72.4 million in cash and cash equivalents
Keith Neumeyer, President, and CEO of First Majestic stated, “During the third quarter, we delivered record silver production resulting in higher revenues and cash flows compared to the previous quarter even when we experienced a nine-year low in average quarterly silver prices. Consolidated cash costs and AISC decreased nicely to $6.85 and $15.12, respectively, due to improved economies of scale and higher production from San Dimas. Cost cutting efforts remain a focus of the Company by reducing capital investments at our smaller mines, innovation projects, layoffs and overall curtailment of spending.”