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(Kitco News) - First Majestic Silver (TSX: FR) (NYSE: AG) announced Thursday that in Q2 2023, the company produced 6.3 million silver equivalent ounces (consisting of 2.6 million silver ounces and 45,022 gold ounces), down 18% compared to Q2 2022 (7.7 million silver equivalent ounces).
First Majestic said that its Jerritt Canyon mine in Nevada, USA, processed most of its remaining ore stockpiles and work in process inventory throughout April and May and produced 4,364 ounces of gold during its partial quarter.
As of April 24, 2023, all activities at the Jerritt Canyon processing plant were discontinued following the company’s previously announced temporary suspension of mining operations on March 20, 2023.
The company also reported that revenues generated in the second quarter totaled $146.7 million compared to $159.4 million in the second quarter of 2022.
First Majestic explained that the decrease in revenues was primarily due to the temporary suspension of Jerritt Canyon which processed the majority of its remaining stockpiles and work in process inventory during the quarter.
Cash flow from operations before movements in working capital and income taxes in the quarter was $26.9 million, representing an 18% decrease compared to the second quarter of 2022 and a 23% increase compared to the prior quarter.
The company reported mine operating earnings of $1.1 million compared to $11.6 million in the second quarter of 2022, adding that the decrease in mine operating earnings was primarily attributed to a stronger Mexican Peso against the U.S. dollar which has increased production costs.
First Majestic also reported net earnings of ($17.5) million (EPS of ($0.06)) compared to ($84.1) million (EPS of ($0.32)) in the second quarter of 2022, and declared a cash dividend payment of $0.0051 per common share for the second quarter of 2023.
Previously, First Majestic announced its updated 2023 production guidance of between 26.2 to 27.8 million silver equivalent ounces compared to the prior guidance of 33.2 to 37.1 million silver equivalent ounces.
First Majestic is a 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 Santa Elena silver/gold mine, and the La Encantada silver mine as well as a portfolio of development and exploration assets, including the Jerritt Canyon gold project located in northeastern Nevada.
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