First Majestic Posts Solid Q1 Results

Wednesday May 15, 2013 8:30 AM

http://www.kitco.com/reports/KitcoNews20130515_MM.html

First Majestic Silver Corp. (TSX: FR)(NYSE: AG) saw increases in silver and silver-equivalent ounces production and slight increase in net earnings after taxes during the first quarter. Silver production increased by 33% to 2,437,664 ounces from 1,826,803 ounces in last year’s comparative quarter, while silver-equivalent production increased by 36% to 2,731,792 ounces compared to 2,007,219 ounces in the first quarter of last year. Net earnings after taxes rose slightly to $26.5 million, a 1% increase from last year’s comparative quarter, but earnings per basic share totaled 23 cents representing a 9% decrease from the first quarter of 2012, the company says. "Despite the recent fall in silver prices, we remain committed to aggressively growing our business while at the same time monitoring our investments and our production costs,” says Keith Neumeyer, president and chief executive officer of First Majestic Silver. “This year marks a pivotal year for First Majestic with four major expansion projects under way simultaneously. These expansions remain on track and will set the stage for major growth in the coming years.” Neumeyer went to on to add that First Majestic will be smart about capital spending in this current market and is “committed as usual to focus on cost reductions and capital optimization without affecting our aggressive growth plans." Revenues increased 16% in the quarter due to strong production but was still affected by lower average realized silver price per ounce, the company said.

By Alex Létourneau of Kitco News aletourneau@kitco.com