First Majestic slashed 10% in grim day for silver sector

First Majestic Silver Corp (TSE:FR, NYSE:AG) shed more than 10% on Tuesday on higher than usual trading volumes bringing losses for the week to 14%.

By the close the silver producer had lost $1.47 at $12.60 on the Toronto big board, near its lowest for the day and at a new 52-week low. The counter is now down 26% year to date bringing its market value $1.3 billion.

The mining sector was generally weak on the day with the S&P/TSX Diversified Metals & Mining Index down 3.6%.

Silver counters where hardest hit with industry bellwethers Silver Wheaton and Pan American Silver both losing more than 4% and also hitting 52-week lows. Silver Wheaton is worth $8.2 billion and Pan American $2.3 billion.

Silver futures lost 2.4% closing at $27.69 an ounce on Tuesday, the lowest price for 2012 and within site of 12 month lows of $26.38 hit on December 29.

Last week First Majestic announced that it remains on track to meet production guidance for 2012 of between 8.8 million ounces and 9.3 million ounces of silver equivalent at its three Mexican mines.

In April the company bought Silvermex Resources (TSX:SLX) in a deal valued at $175 million.

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