First Majestic Posts Record Silver-Equivalent Output In 3Q
(Kitco News) -First Majestic Silver Corp.’s (TSX: FR; NYSE: AG) third-quarter productionhit a company record of 6.7 million silver-equivalent ounces, which was up 69%from 4 million in the same quarter of 2017, the company said Monday.
The company also announced an effort to cut costs by 20%,although specifics were not released. Officials said this was a response toweak silver prices.
Total July-September production consisted of 3.5 million ouncesof silver, 35,260 ounces of gold, 4.4 million pounds of lead and 1.2 millionpounds of zinc.
The silver-equivalent output was up 31% from 5.1 million ouncesin the second quarter, said Keith Neumeyer, president and chief executiveofficer.
“The record quarter was primarily due to the company receiving afull quarter of production from the San Dimas operation, along with increasesin consolidated silver and gold grades of 19% and 35%, respectively,” the CEOcontinued. “In fact, five of our six mines recorded higher production levels asa result of these significant grade improvements.
“However, due to the prolonged weakness in the silver price, wehave implemented a 20% cost-reduction program across all areas of the business,which is expected to be fully realized by the first quarter of 2019.”
Silver production for the first three quarters of 2018 totaled8.4 million ounces, or 15.8 million silver-equivalent ounces. Officials saidthis was in line with 2018 production guidance of between 12 million to 13.2million silver ounces or 20.5 million to 22.6 million silver-equivalentounces.
First Majestic operates six mines in Mexico.
By Allen Sykora
For Kitco News
Follow @AllenSykora
asykora@kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication. |