First Majestic Posts Record Silver-Equivalent Output In 3Q
(Kitco News) - First Majestic Silver Corp.’s (TSX: FR; NYSE: AG) third-quarter production hit a company record of 6.7 million silver-equivalent ounces, which was up 69% from 4 million in the same quarter of 2017, the company said Monday.
The company also announced an effort to cut costs by 20%, although specifics were not released. Officials said this was a response to weak silver prices.
Total July-September production consisted of 3.5 million ounces of silver, 35,260 ounces of gold, 4.4 million pounds of lead and 1.2 million pounds of zinc.
The silver-equivalent output was up 31% from 5.1 million ounces in the second quarter, said Keith Neumeyer, president and chief executive officer.
“The record quarter was primarily due to the company receiving a full quarter of production from the San Dimas operation, along with increases in consolidated silver and gold grades of 19% and 35%, respectively,” the CEO continued. “In fact, five of our six mines recorded higher production levels as a result of these significant grade improvements.
“However, due to the prolonged weakness in the silver price, we have implemented a 20% cost-reduction program across all areas of the business, which is expected to be fully realized by the first quarter of 2019.”
Silver production for the first three quarters of 2018 totaled 8.4 million ounces, or 15.8 million silver-equivalent ounces. Officials said this was in line with 2018 production guidance of between 12 million to 13.2 million silver ounces or 20.5 million to 22.6 million silver-equivalent ounces.
First Majestic operates six mines in Mexico.