First Majestic Reports Decline In Total Production, In Line With Guidance
(Kitco News)- FirstMajestic Silver (NYSE: AG,TSX: FR) reported a drop in silver and silverequivalent production for 2017 as the company saw mostly lower ore grades.
Tuesday,the company said that production last year totaled 16.2 million equivalentsilver ounces, down 13% from 2016 production levels. The company added thattotal production was in line with its guidance.
The reportsaid that total production consisted of 9.7 million ounces of silver, 62,991 ouncesof gold, 24.5 million pounds of lead and 3.9 million pounds of zinc. Annualsilver production of 9.7 million ounces was 3% below the Company’s guidance of10.0 to 10.6 million ounces of silver.
“Highersilver grades were mined and processed at Santa Elena and San Martin, however,consolidated silver grades were offset by lower grades at La Encantada and LaParrilla,” the company said.
As of year-end2017, First Majestic held $118.1 million of cash in its treasury.
KeithNeumeyer, president & CEO of First Majestic, said in the report that heexpects to see a strong performance in 2018.
“In 2018,we expect higher grades, throughputs and recoveries to improve the operationsat La Encantada, La Parrilla, La Guitarra and Del Toro due to the concerted investmentsin exploration and development that commenced in late 2016,” he said. “Inaddition, the acquisition of the San Dimas mine comes at a great time with allour other operations benefiting simultaneously from increased investments.”
For 2018,the company said that it projects silver production to range between 10.6 to11.8 million ounces.
“Companyexpects a 15% increase in silver production compared to 2017, primarily due tohigher silver grades from caving and the start-up of the new roasting circuitat La Encantada,” first Majestic said.
Total production in2018 is estimated to be between 15.7 to 17.5 million silver equivalent ounces,representing a slight increase from 2017.
By Neils ChristensenFor Kitco News
Follow neils_C
nchristensen@kitco.comwww.kitco.com Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.