First Majestic Silver: 1Q Results Helped By San Dimas Output
(Kitco News) - First Majestic Silver Corp. (NYSE: AG; TSX: FR) said Thursday that results improved from a year ago – a narrower adjusted loss and reversal to a net profit – as production was boosted by the acquisition of the San Dimas gold and silver mine.
The company generated net earnings of $2.9 million, or a penny per share, a turnaround from a loss of $5.6 million, or 3 cents, in the first quarter of 2018.
However, the company listed an adjusted net loss of $2.9 million, or a penny per share, after excluding non-cash and non-recurring items. Still, this was better than the adjusted loss of 6 cents per share in the year-ago quarter.
Revenues rose 48% year-on-year to $86.8 million, helped by the acquisition of the San Dimas mine that was completed in May 2018. However, this was partly offset by a decline in the average realized silver price to $15.73 from $16.76 a year ago.
Mine-operating earnings improved to $10.3 million, compared to a $0.4 million loss a year ago, due to a boost from the San Dimas and Santa Elena mines, the company said. This offset losses at the Del Toro and La Parrilla mines due to reduced production.
First Majestic reported silver production of 3.33 million ounces, up from 3.25 million in the fourth quarter and 2.17 million in the first quarter of 2018. Silver-equivalent output of 6.27 million ounces was down slightly from 6.49 million in the fourth quarter but up from 3.88 million in the year-ago period.
All-in sustaining costs were $12.91 an ounce, up marginally from $12.83 in the fourth quarter but down from $16.01 in the year-ago period.
“Strong gold production from our San Dimas and Santa Elena mines helped to record better-than-expected consolidated cash costs and AISC per ounce,” said Keith Neumeyer, president and chief executive officer. “Costs are expected to continue to trend lower in the second half of 2019 due to higher production levels at various operations, including the commercialization of several cost-saving projects which are expected to further increase margins and profitability.”