The severe drop in the white metal’s price forced First Majestic to suspend silver sales until prices rebound, said Keith Neumeyer, president and chief executive officer of the company.

“While the suspension had a negative impact on this quarter's revenues and earnings, we are confident the silver price will revert back to the mean in the near future,” Neumeyer said. “In the meantime, regular sales are now taking place in order to allow silver inventories to return to normal levels.

"Furthermore, as a result of the recent cost-cutting measures and improved operating parameters, cash costs are expected to decrease during the second half of 2013,” Neumeyer added.

Generated revenues totaled $48.4 million for the second quarter of 2013, a decrease of 28% compared to the first quarter of 2013, primarily due to 25% decrease in average realized silver price per ounce and management's decision to suspend approximately 700,000 ounces of silver sales near quarter end in an attempt to maximize future profits, the company said.

While earnings and revenues were hit, silver and silver equivalent production rose substantially in the second quarter.

Silver ounces produced totaled 2,767,966 ounces, a 44% increase over the 1,917,248ounces of silver produced in last year’s second quarter. Silver equivalent ounces rose to 3,268,117 ounces, a 55% increase over the 2,102,222 silver equivalent ounces produced in last year’s comparative quarter.

The company’s Del Toro and San Martin silver mines both had notable quarters.

Del Toro marked its first complete commercial production quarter, posting totals of 369,772 ounces of silver, 1,967,741 pounds of lead, 1,139,583 pounds of zinc and 83 ounces of gold.

San Martin produced 371,301 ounces of silver and 512 ounces of gold in the second quarter, an improvement of 43% and 68%, respectively, compared to the first quarter of 2013 and the highest quarterly production results since the company took over control of the mine in 2006, First Majestic said.

Cash costs of $9.43 increased 7% to $9.43, compared to $8.83 in the second quarter of 2012. The increase in cash costs compared to the same quarter of the prior year was primarily attributed to 9% appreciation of the Mexican peso against the U.S. dollar, the company said.