RE:First Majestic Silver: Strong Production Growth In 2019SwissResourceCapital wrote:
First Majestic (AG +3.3%) reports Q1 sales of $86.8M, +48% Y/Y, primarily due San Dimas mine acquisition, which resulted in a 60% increase in silver equivalent ounces sold, partially offset by a 6% decrease in average realized silver price to $15.73/ounce.
Production reached 6.3M silver equivalents ounces (+62%), consisting of 3.3M ounces of silver (+54%), 32,037 ounces of gold, 2.7M pounds lead and 1.3M pounds of zinc.
Pure silver production increased as a result of higher grades at the San Dimas and La Encantada mines.
Reported mine operating earnings of $10.3M vs. loss of $0.4M last year, attributable to San Dimas and Santa Elenamines, offset by losses at the Del Toro and La Parrilla mines due to reduced production levels.
Reports net income of $2.9M vs. loss of $5.6M in Q1 2018. Cash cost per ounce was $6.34, a decrease of 19%;
All-in sustaining cost per ounce in the first quarter was $12.91 down 19% from $16.01.
Cash flow from operations improved from $15.6M to $23.7M.
The company says that costs are expected to trend lower in H2 2019 due to higher production levels.