First Majestic Silver Corp. (AG)

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First Majestic Silver -12% after larger than expected Q2 loss

https://seekingalpha.com/news/3382057-first-majestic-silver-minus-12-percent-larger-expected-q2-loss?app=1#email_link

Aug. 13, 2018 11:25 AM ET|About: First Majestic Silver Corp. (AG)|By: Carl Surran, SA News Editor

First Majestic Silver (AG -12.2%) slumps after reporting a wider than expected Q2 loss despite record silver equivalent production, which was previously reported.

AG says Q2 revenue rose by a third from the prior-year quarter, helped by a 43% jump in silver equiv. oz. sold to 5.1M and a 3% rise in the average realized silver price to $16.74/oz.

AG says total production for July reached a new monthly record of 2.2M silver equiv. oz., a trend it expects to continue throughout the rest of 2018 and into H1 2019.

But all-in sustaining costs climbed 16% Y/Y and 3% Q/Q to $16.43/oz., as AG cited higher G&A expenses and sustaining capex tied to the Primero Mining acquisition, the integration of the San Dimas mine into its portfolio, and lower production from La Encantada and Del Toro.

AG says AISC should decrease in H2 to $13.28-$14.84 due to expected operational improvements at La Encantada, Del Toro and San Dimas; already, AISC at San Dimas was $5.41/oz., making it the company's lowest cost and largest producing mine.