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First Majestic increases quarterly net earnings as silver equivalent production up 59% in Q1

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(Kitco News) - First Majestic Silver (TSX: FR) announced today that its total production in Q1 2022 reached 7.2 million silver equivalent ounces consisting of 2.6 million ounces of silver and 58,892 ounces of gold.

The company said that its total silver equivalent production increased 59% when compared to the first quarter of 2021 primarily due to the acquisition of Jerritt Canyon.

Cash cost for the quarter was $14.94 per AgEq ounce, compared to $12.32 AgEq per ounce in the previous quarter. First Majestic noted that it experienced a company-wide inflationary cost pressures in first quarter.

According to the company’s statement, revenues generated in the first quarter totaled $156.8 million compared to $100.5 million in the first quarter of 2021, representing a 56% increase primarily due to acquisition of the Jerritt Canyon mine and initial production from the Ermitaño mine at Santa Elena.

The company also reported net earnings of $7.3 million (EPS of $0.03) compared to $1.9 million (EPS of $0.01) in the first quarter of 2021. The increase in net earnings was primarily attributed to a net income tax recovery of $11.7 million.

Adjusted net earnings for the quarter were ($6.2) million (adjusted EPS of ($0.02)) compared to $7.0 million (adjusted EPS of $0.03) in the first quarter of 2021, after excluding non-cash and non-recurring items.

Cash flow from operations before movements in working capital and income taxes in the quarter was $35.3 million compared to $31.1 million in the first quarter of 2021.

Cash and cash equivalents as of March 31, 2022 was $192.8 million. In addition, the company said it has a strong working capital position of $194.4 million and total available liquidity of $294.4 million.

First Majestic also announced that its Board of Directors has declared a cash dividend payment in the amount of $0.006 per common share for the first quarter of 2022.

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President and CEO Keith Neumeyer said that cost-cutting measures are underway across the company to improve profitability, adding that efforts to improve efficiencies at Jerritt Canyon remain a key focus.

First Majestic is a publicly traded mining company focused on silver and gold production in Mexico and the United States. The company presently owns and operates the San Dimas silver/gold mine, the Jerritt Canyon gold mine, the Santa Elena silver/gold mine and the La Encantada silver mine.

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