First Majestic: 1Q Silver-Equivalent Output Falls; Silver Production To Rise
(Kitco News) - First Majestic SilverCorp. (NYSE: AG; TSX: FR) reported Thursdaythat silver-equivalent output eased in the first quarter, but silver output isexpected to rise this year, with most of the increase in the second half.
The companysaid its six operating silver mines churned out 3.9 million silver-equivalentounces. Total production consisted of 2.2 million ounces of silver, 15,887ounces of gold, 4.4 million pounds of lead and 1.6 million pounds of zinc.
Thesilver-equivalent total was down from 4.3 million in the same quarter a yearago and 4.1 million in the fourth quarter.
The totalamount of ore processed rose 10% from the fourth quarter, the company said.However, consolidated silver grades in thequarter averaged 111 grams per tonne, down from 125 in the previous quarter.The 11% decrease in silver grades was primarily the result of a 24% decline atLa Encantada, First Majestic said. Head grades at La Encantada are expected toincrease in the second half due to higher production rates from the San Javierarea, which is known to contain silver grades of between 150 to 200 g/t.
“We areprojecting a 15% increase is silver production in 2018; however, most of thisincrease will be realized in the second half of the year as the new roaster atLa Encantada ramps up to commercial production,” said Keith Neumeyer, presidentand chief executive officer. “Furthermore, with the recent increase in reservegrades, head grades at the mills are expected to improve resulting in higherproduction and lower costs as the year develops.”
By Allen SykoraFor Kitco News
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