First Majestic reports 46% increase in earnings in Q3
Editor's Note: We are proud to unveil our new mining page, an entire space dedicated to up-to-the-minute news, with exclusive industry interviews and all the relevant information you need, rounded in up in one spot. Who is merging? Who is Buying? Who is Digging? We got you covered!
(Kitco News) - It started with near record production in the third quarter and now First Majestic is reporting a 46% increase in its third quarter earnings.
The silver producer said on Wednesday that its revenue increased 10% to $97.0 million due to increasing silver prices in the quarter. The company said it generated net earnings of $8.6 million, or $0.04 earnings per shares, compared to net earnings of $5.9 million or $0.03 earnings per share in the third quarter of 2018. Adjusted net earnings for the quarter came in at $11.9 million of $0.06 earnings per share, compared to a net loss of $6.4 million or $0.03 per in the third quarter of 2018, after excluding non-cash and non-recurring items.
The earnings increase comes after the company reported third-quarter production of more than 6.6 million silver equivalent ounces.
The company noted that mine operating earnings of $27.8 million, up substantially compared to ($0.1) million in Q3 2018.
“In the third quarter, our strong production results along with lower costs and higher metal prices drove a significant increase in cash generation for the business,” said Keith Neumeyer, president and CEO of First Majestic. “We added $21.4 million to our treasury during the quarter as a result of continued strong production from our San Dimas and Santa Elena mines which together produced approximately 81% of the Company’s total production and generated mine operating earnings of $29.6 million, representing a 108% increase over the previous quarter.”
Along with higher production and increased metals price, the company noted a drop in production costs. The company said that it reduced all-in sustaining costs (“AISC”) by 29% to $10.76 per payable silver ounce compared to $15.12 per ounce in Q3 2018.