First Majestic earns $8.1 million in third quarter
La Encantada silver mine, northern Mexico, 708 km northeast of Torreon, Coahuila, is First Majestic Silver's largest mining operation. Source: First Majestic Silver Corp.
Keith Neumeyer, President & CEO, First Majestic Silver Corp. [FR-TSX; AG-NYSE, BVM; FMV-FSE], reported unaudited interim consolidated financial results for the third quarter ended September 30, 2016. All amounts are in U.S. dollars unless stated otherwise.
The company owns and operates five silver and one silver-gold mine in Mexico plus some exploration and developments projects. Highlights, as compared to Q3 2015, include:
- Silver equivalent production increased 27% to 4.5 million oz
- Silver production increased 20% to 3.1 million oz – a new quarterly record
- All-in sustaining costs (AISC) decreased 27% to $10.52 per payable silver oz
- Revenues increased 78% to $79.3 million
- Realized average silver price increased 30% to $19.72/oz
- Mine operating earnings increased 656% to $20.0 million
- Net earnings increased 556% to $8.1 million (Basic EPS of $0.05)
- Adjusted earnings, excluding non-cash and non-recurring items, increased 254% to $11.7 million (Adjusted EPS of $0.07)
- Operating cash flows before working capital and taxes increased 319% to $35.4 million or $0.22 per share (non-GAAP)
- Cash costs decreased 33% to $5.84 per payable silver ounce (net of by-product credits)
- Cash and cash equivalents totaled $122.5 million at the end of the quarter, representing a $14.3 million increase compared to the previous quarter
“Cash generation accelerated during the quarter due to our ongoing disciplined cost management and higher silver prices,” stated Neumeyer. “Our third quarter AISC came in well below guidance at $10.52 per ounce. The reduction in costs were driven primarily by renegotiated smelting and refining agreements, the continued weakness in the Mexican Peso, and record production of silver. In addition, the company realized an average silver price of $19.72 per ounce, which is the highest price achieved in the past 10 quarters. We have already achieved 80% of our annual production guidance and continue to make great progress towards achieving our financial and strategic objectives for the year.”
The full version of the financial statements and the management discussion and analysis can be viewed on the company’s web site at www.firstmajestic.com or on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.