First Majestic Silver profit up, but below estimates
First Majestic Silver’s shares (NYSE:AG) (TSX:FR) were down almost 7% Wednesday morning in Toronto as the Mexico-focused posted second quarter results below analyst estimates.
The Canadian miner reported higher earnings of $7.6 million, and $0.06 per basic share, compared to $0.2 million and break even per basic share in the same quarter last year.
Mine operating earnings, however, were down to $9.5 million from $14.3 million in the previous year.
In terms of production, silver output at First Majestic’s mines reached a record 3,855,223 silver equiv. oz., up 6% from the previous quarter, mainly due to higher throughput rates at Del Toro mine, in Zacatecas, and the San Martin asset in the San Martin de Bolaños mining district, after expansions at both operations.
Due to the revised timing of its northern Mexico’s La Encantada mine expansion project, First Majestic has adjusted its expected FY 2014 cost guidance. Cash costs are now projected to remain in line with previous $8.67-$9.12 per payable silver oz., but all-in sustaining costs are estimated to increase to $16.66-$16.96 from previous guidance of $15.87-$16.69.
The Vancouver-based company is maintaining its previously announced 2014 production guidance of 12.7 to 13.3 million ounces of silver (14.8 to 15.6 million SEOs).