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First Majestic reports Q1 2021 production setback, blames lower grades and cold weather

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(Kitco News) - First Majestic Silver announced Wednesday that the company produced 4.5 million silver equivalent ounces in Q1 2021, consisting of 2.9 million ounces of silver and 23,873 ounces of gold.

According to the statement, the company’s silver equivalent production in Q1 2021 was 27% lower compared to the corresponding period of 2020 (6.2 million ounces) and 17% lower than in Q4 2020 (5.5 million ounces).

First Majestic said that silver production in the first quarter came in below budget primarily due to lower average silver grades and an extreme cold weather event in the month of February which reduced milling rates at La Encantada.

Consolidated silver and gold grades in the quarter averaged 166 g/t and 1.26 g/t, respectively, compared to 194 g/t and 1.37 g/t, respectively, in the previous quarter. The decrease in consolidated grades was primarily due to lower ore grades at the La Encantada and San Dimas mines.

Total ore processed during the quarter at the company's mines amounted to 614,245 tonnes, representing a 2% decrease compared to the previous quarter. The decrease in tonnes processed was primarily due to a severe winter ice storm in the month of February which temporarily reduced plant throughput rates at La Encantada.

First Majestic is a publicly traded 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 and the La Encantada silver mine. Production from these mines are projected to be between 12.5 to 13.9 million silver ounces or 20.6 to 22.9 million silver equivalent ounces in 2021.

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