First Majestic Silver Posts 1Q Loss As Lower Grades Dent Output
(Kitco News) - First Majestic Silver Corp. (NYSE: AG; TSX: FR) lateWednesday reported a net loss for the first quarter on lower output, with thecompany’s chief executive reporting that the number of ounces declinedtemporarily due to lower grades.
First Majestic listed a net loss of $5.6 million, or 3 cents per share, compared tonet earnings of $2.7 million, or 2 cents, in the first quarter of 2017.Excluding non-cash and non-recurring items, the company generated an adjustedloss of $10.1 million, or 6 cents, during the quarter.
Revenues totaled $58.6 million, a decrease of 15% compared to $69.1million in the first quarter of 2017 primarily due to an 11% decline in silver-equivalentounces sold and a 5% decrease in the average realized silver price to $16.76 anounce, First Majestic said.
Output came in at 3.9 million silver-equivalent ounces, includingof 2.2 million ounces of silver, 15,887 ounces of gold, 4.4 million poundsof lead and 1.6 million pounds of zinc. Silver-equivalent output was 4.3million ounces in the first quarter of 2017.
“In the first quarter, lowerproduction rates resulted in a slight decrease in revenues and cash flowscompared to the prior quarter,” said Keith Neumeyer, president and chiefexecutive officer. “This temporary decrease in production, which was primarilydue to lower head grades, naturally resulted in higher cash costs per ounce.Nevertheless, we managed to beat our overall cost guidance during the quarterdue to strong gold production at the Santa Elena, San Martin and La Guitarraoperations.
“Looking ahead, we plan toprovide an updated production, costs and capital expenditure guidance in Julyto reflect the integration of the San Dimas operation.”
By Allen SykoraFor Kitco News
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