First Majestic Silver Corp. (AG)

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First Majestic Reports Second Quarter Financial Results

Wed August 10, 2016 7:00 AM|Marketwire | About: AG
Q2 2016 Earnings Summary

http://seekingalpha.com/pr/16574316-first-majestic-reports-second-quarter-financial-results

News
EPS of $0.04 misses by $-0.01 | Revenue of $66.1M (+ 22.0% Y/Y) beats by $66.1M

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 08/10/16 -- FIRST MAJESTIC SILVER CORP. (AG) (NYSE: AG)(TSX: FR)(FRANKFURT: FMV)(BVM: AG) (the "Company" or "First Majestic") is pleased to announce the unaudited interim consolidated financial results of the Company for the second quarter ended June 30, 2016. The full version of the financial statements and the management discussion and analysis can be viewed on the Company's web site at www.firstmajestic.com or on SEDAR at www.sedar.com and on EDGAR at www.sec.gov. All amounts are in U.S. dollars unless stated otherwise.

SECOND QUARTER 2016 HIGHLIGHTS

-- Silver equivalent production of 4.7 million ounces, representing a 23%
increase compared Q2 2015.
-- Silver production of 2.8 million ounces, representing a 5% increase
compared to Q2 2015.
-- Revenues totaled $66.1 million, representing a 22% increase compared to
Q2 2015, primarily due to a 23% increase in total production.
-- Realized average silver price was $17.01, relatively unchanged compared
$16.99 in Q2 2015.
-- Operating cash flows before working capital and taxes of $23.5 million
or $0.15 per share (non-GAAP).
-- Mine operating earnings of $9.9 million compared to $3.4 million in Q2
2015.
-- Net earnings of $6.1 million (EPS of $0.04) compared to a loss of $2.6
million (loss per share of $0.02) in Q2 2015.
-- All-in sustaining costs ("AISC") of $10.97 per payable silver ounce,
representing a 24% reduction compared to Q2 2015.
-- Completed CAD$57.5 million equity financing allowing the Company to
accelerate future growth projects.
-- Cash and cash equivalents totaled $108.2 million at the end of the
quarter, representing a $46.5 million increase compared to the previous
quarter.
-- Increased 2016 capital budget by $20.9 million to expand the underground
development and exploration program, including over 46,000 metres of
additional diamond drilling.
"We had excellent second quarter results with costs significantly beating guidance," stated Keith Neumeyer, President and CEO of First Majestic. "The balance sheet has dramatically improved over the past two quarters, primarily due to the recent equity financing, the elimination of the prepayment facility and the increase in cash flows. As a result, the Company is beginning to accelerate a number of growth projects with high internal rates of return. We are increasing the underground development and exploration at La Guitarra to prepare the mine for its upcoming expansion to 1,000 tpd. We have also allocated capital to the Plomosas silver project, our first investment since its acquisition in 2012, to begin a 5,000 metre exploration program to test high priority targets. Essentially, we are planting the seeds for our next leg of growth."