First Majestic swings to loss on lower sales, prices

Vancouver-based First Majestic Silver saw a net loss of US$10.5mn in the third quarter compared to a US$16.3mn profit a year earlier.

In its earnings report, the company reported 47% lower revenue to US$40.8mn from US$76.9mn due to a 37% decrease in silver equivalent ounces sold, as the company held 934,000oz of silver in inventory, and a 12% decrease in average realized silver price to US$19.10/oz gold equivalent.

First Majestic reported a 5% year-on-year increase in Q3 production to 3.52Moz silver equivalent from its five operating mines in Mexico.

Total cash cost, net of byproduct credits, was US$10.41/oz silver, up from US$8.84/oz in 3Q13. This was primarily attributed to higher energy costs from the start‐up of the Del Toro mine. All-in sustaining cost was US$19.89/oz in the period.