First Majestic hits fresh silver production record, revenue jumps 78 pct

Mexico-focused First Majestic Silver Corp. (TSE:FR) (NYSE:AG) said Wednesday that output of the precious metal in the three months to Sep. 30 increased 20% to 3.1 million ounces — a new quarterly record.

The Vancouver-based miner also said that overall silver equivalent production rose 27% to 4.5 million ounces, when compared to the same period last year.

Silver prices, which increased 30% to an average of $19.72 per ounce in the period, helped boost First Majestic revenues.

Revenues for the period ballooned, jumping 78% to $79.3 million thanks to ongoing disciplined cost management and higher silver prices, which increased 30% to an average of $19.72 per ounce in the period, the firm said.

All-in sustaining costs decreased 27% to $10.52 per payable silver ounce. Renegotiated smelting and refining agreements, the continued weakness in the Mexican Peso, and a record production were the main drivers of the achieved costs reduction, the company’s President and CEO Keith Neumeyer, said in the statement.

Like most silver miners, First Majestic has benefitted from an ongoing silver rally and even more so than many of its peers, as the company chose not to diversify into other metals.

Its shares have also been pushed in recent hours by investors rushing into buying precious metals and stocks in gold and silver miners of in response to Donald Trump being elected president of the US.

The silver producer, which earns more than 63% of its sales from the precious metal, was soaring Wednesday in Toronto by 12.36% to Cdn$12.18 and 13.4% to US$9.23 in the New York Exchange.