|By Marketwired .||
|November 14, 2012 07:30 AM EST||
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/14/12 -- FIRST MAJESTIC SILVER CORP. (TSX:FR)(NYSE:AG)(FRANKFURT:FMV) (the "Company" or "First Majestic") is pleased to announce the unaudited condensed interim consolidated financial results for the Company for the third quarter ending September 30, 2012. 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.
2012 THIRD QUARTER HIGHLIGHTS
-- Silver produced increased by 29% to 2,205,237 ounces compared to 1,708,865 ounces in Q3 2011. -- Increased silver equivalent production by 36% to 2,438,085 ounces compared to Q3 2011. -- Revenue increased to $63.6 million, a 16% increase compared to Q2 2012 and a 4% increase from Q3 2011, despite a 22% decline in silver prices from the same quarter of the prior year. -- Mine Operating Earnings totalled $35.8 million. -- Adjusted Earnings per Share (non-GAAP) amounted to $0.25 after excluding non-cash share-based payments, deferred income tax expense, acquisition costs for the Silvermex Resources Inc., gains from silver futures and marketable securities. -- Basic Earnings per Share (EPS) amounted to $0.22, representing a 49% increase from Q2 2012 and a 19% decrease from Q3 2011. -- Cash Flow per Share (non-GAAP) was $0.31, an increase of 7% compared to Q2 2012 and a decrease of 23% from Q3 2011. -- Total Cash Cost was $9.19 per ounce, a 4% increase compared to Q2 2012 and a 10% increase from Q3 2011 primarily due to the addition of the La Guitarra Silver Mine -- Cash and Cash Equivalents at September 30, 2012 totalled $72.8 million and Working Capital of $84.0 million. 2012 THIRD QUARTER HIGHLIGHTS TABLE Third Third Second Quarter Quarter Quarter 2012 2011 Change 2012 Change ---------------------------------------------------------------------------- Operating ---------------------------------------------------------------------------- Silver Equivalent Ounces Produced 2,438,085 1,791,770 36% 2,102,222 16% Silver Ounces Produced (excluding equivalent ounces from by-products) 2,205,237 1,708,865 29% 1,917,248 15% Payable Silver Ounces Produced(1) 2,127,056 1,655,297 28% 1,888,132 13% Total Cash Costs per Ounce(2) $ 9.19 $ 8.39 10% $ 8.83 4% Total Production Cost per Tonne(2) $ 30.05 $ 26.86 12% $ 26.97 11% Average Revenue per Payable Equivalent Ounces Sold ($/eq. oz.)(2) $ 30.48 $ 38.83 -22% $ 28.69 6% ---------------------------------------------------------------------------- Financial ---------------------------------------------------------------------------- Revenues ($ millions) $ 63.6 $ 61.4 4% $ 54.8 16% Mine Operating Earnings ($ millions) $ 35.8 $ 42.5 -16% $ 31.1 15% Net Earnings ($ millions) $ 24.9 $ 27.8 -10% $ 15.3 62% Operating Cash Flows Generated Before Movements in Working Capital ($ millions) $ 35.9 $ 42.0 -15% $ 30.6 17% Cash and Cash Equivalents at September 30 and June 30 ($ millions) $ 72.8 $ 106.2 -31% $ 70.9 3% Working Capital at September 30 and June 30 ($ millions) $ 84.0 $ 97.9 -14% $ 94.6 -11% ---------------------------------------------------------------------------- Shareholders ---------------------------------------------------------------------------- Earnings Per Share ("EPS") - Basic $ 0.22 $ 0.27 -19% $ 0.14 49% Cash Flow Per Share(2) $ 0.31 $ 0.40 -23% $ 0.29 7% Weighted Average Shares Outstanding for the Periods Ended September 30 and June 30 115,307,418 104,583,335 10% 105,798,950 9% (1) Payable Silver Ounces Produced is equivalent to Silver Ounces Produced less metal deductions from smelters and refineries. (2) The Company reports non-GAAP measures which include Total Cash Costs per Ounce, Total Production Cost per Tonne, Average Revenue per Payable Equivalent Ounces Sold and Cash Flow Per Share. These measures are widely used in the mining industry as a benchmark for performance, but do not have a standardized meaning and may differ from methods used by other companies with similar descriptions.
Keith Neumeyer, President and CEO of First Majestic, states, "With the successful integration of the La Guitarra Silver Mine in the third quarter, First Majestic is now one step closer at reaching its senior producer status. By the end of this year, the Company will have a total of five producing silver mines. Production costs at La Guitarra came in better than expected at $65 per tonne and further cost reductions are anticipated by the end of the year. In addition, the adoption of La Guitarra further enhances First Majestic's strategy of remaining the purest silver producer on the world."
-- Silver equivalent production of 2,438,085 ounces representing an increase of 36% compared to 1,791,770 silver equivalent ounces produced in the third quarter of 2011 which resulted in a 4% increase in revenues despite a 22% decline in silver prices. -- Adjusted EPS (a non-GAAP measure) for the third quarter of 2012 was $0.25, after excluding non-cash share- based payments, deferred income tax expense, acquisition costs for Silvermex Resources Inc., gains from silver futures and marketable securities and legal fees for the First Silver (Bolanos) trial. -- Generated revenues of $63.6 million for the third quarter of 2012, an increase of 4% compared to the third quarter of 2011 and 16% compared to the second quarter of 2012, primarily due to increase in production even though silver prices declined 22% year over year. -- Recognized mine operating earnings of $35.8 million compared to $42.5 million in the third quarter of 2011, a decrease of 16%, due to lower margin as a result of 22% decline in silver prices and higher depreciation, depletion and amortization expense. Mine operating earnings for the quarter increased 15% compared to the second quarter of 2012 as a result of 16% increase in production. -- Generated Net Earnings after Taxes of $24.9 million for the third quarter of 2012 (EPS of $0.22), an increase of 62% compared to $15.3 million (EPS of $0.14) in the second quarter of 2012. -- Cash flows from operations before movements in working capital and income taxes in the third quarter of 2012 increased by 17% to $35.9 million ($0.31 per share) compared to $30.6 million ($0.29 per share) in the second quarter of 2012, and decreased by 15% compared to $42.0 million ($0.40 per share) in the third quarter of 2011. -- The Company completed the acquisition of Silvermex Resources Inc. ("Silvermex") during the quarter resulting in the La Guitarra Silver Mine, located in the State of Mexico, becoming First Majestic's fourth operating mine. Since taking over operations of the mine on July 3, 2012, management has implemented various operational efficiency measures which have resulted in significant cost savings at the mine. Production costs have been reduced to $65.09 per tonne, compared to $128.00 per tonne for the second quarter of 2012, and $115.69 per tonne for the third quarter of 2011. -- The acquisition of Silvermex was achieved by the issuance of approximately 9% of the Company's shares during the quarter ended September 30, 2012, causing a $0.01 reduction of Basic EPS. This acquisition contributed a 10% increase in production of silver equivalents for the quarter which resulted in a reduction of basic earnings per share from $0.23 per share to $0.22 per share. Management believes that this dilutive effect is short-term as the acquisition is expected over time to add significant earnings to the Company as additional expansion of the La Guitarra mine occurs. During the third quarter of 2012, the La Guitarra mine produced 237,803 silver equivalent ounces of silver, 10% higher than the prior quarter and 40% higher than the third quarter of 2011. -- Cash cost per ounce for the third quarter of 2012 was $9.19, an increase of 4% compared to the second quarter of 2012 and 10% compared to the third quarter of 2011. Cash cost per ounce at the La Guitarra mine were $13.62 per ounce during the third quarter compared to average cash cost per ounce of $8.90 for the Company's other three operating mines. Production costs per tonne for the four mines were $30.05 per tonne, impacted by the $65.09 per tonne costs at La Guitarra while the other three operations averaged $27.76 per tonne. The Company continues to focus on operational efficiencies and is confident that further cost reductions will occur at La Guitarra over the next several quarters.
First Majestic experienced another solid financial quarter primarily due to an increase in total production to 2,438,085 silver equivalent ounces, an increase of 36% compared to 1,791,770 silver equivalent ounces produced in the third quarter of 2011. Silver production during the third quarter reached a new record of 2,205,237 ounces of silver being produced, representing an increase of 29% compared to 1,708,865 ounces of silver produced in the third quarter of 2011.
Total ore processed in the quarter reached 666,688 tonnes, an increase of 26% compared to the third quarter of 2011. The increase in milled ore is a direct result of the successful plant expansion at La Parrilla and the additional ore processed at newly acquired La Guitarra Silver Mine. The overall average head grade for the third quarter of 2012 was 167 grams per tonne ("g/t"), a 3% increase compared to 164 g/t in the second quarter. The increase was attributed to the addition of the La Guitarra mine, which had an average head grade of 225 g/t for the quarter.
Since taking over operations of the La Guitarra mine on July 3, 2012, management has been focusing on improving the operational efficiency and cost savings. During the third quarter of 2012, total production at La Guitarra was 237,803 equivalent ounces of silver,10% higher than in the prior quarter, and 40% higher than the third quarter of 2011. In addition, average production cost per tonne for the third quarter was $65.09 per tonne, 49% lower than the prior quarter, and 44% lower than the third quarter of 2011. Production from La Guitarra accounted for approximately 10% of First Majestic's total production during the third quarter of 2012.
Combined recoveries for all mines in the third quarter was 62% compared to 53% in the third quarter of 2011 and 59% in the second quarter of 2012. Since installing a new ball mill at La Encantada in mid-April, recoveries have been consistently improving due to a higher proportion of fresh ore being processed and a better mixture with the tailings of Dam #1. Although, the tailings of Dam #1 have lower grades, processing from Dam #1 has historically resulted in better recoveries. These factors resulted in an increase in La Encantada's recoveries from 44% in the third quarter of 2011 to 50% in the third quarter of 2012. Efforts are continuing to optimize the recoveries at La Encantada. Management is continuing with its efforts on a number of metallurgical studies and pilot tests. The latest metallurgical test are based on roasting, which has shown promising results and a pilot plant is being designed and is expected to start operations in the first quarter of 2013.
Construction and development at the Del Toro Silver Mine is well underway and currently scheduled to commence operations in December 2012. Following the successful platform construction and foundation pouring in the first half of the year, mechanical installations continued in the quarter at the crushing, flotation and thickeners areas. The construction of the 1,000 tpd flotation plant is now 90% completed. Final testing of the sewage water treatment plant was completed during the third quarter. Once the 1,000 tpd mill construction is completed, the Company is looking forward to being able to recirculate the waste water from the town of Chalchihuites back into a collection facility for treatment and reuse, not only saving the environment, but also conserving water in the region. Currently, 96% of the required equipment for the flotation circuit and 65% of the equipment for the cyanidation circuit has either arrived and is already installed on site, or is in the process of being delivered. The new 115,000 kilowatt power line from the town of Vicente Guerrero to Chalchihuites is now in the permitting process with the Mexican Federal Environmental authorities (SEMARNAT). Management is preparing an Environmental Impact Statement, and anticipates having the power line installed and operational by April 1, 2013. In the interim, portable power generators have been leased to enable initial start-up of operations.
At La Guitarra, the Company had a spare ball mill on site at the La Parrilla mine, and this ball mill has been sent to La Guitarra where construction of a new foundation for this mill commenced in October 2012. In addition, a new tailings permit was received in early November 2012 for the expansion of the current tailings pond. With this permit in place and the new ball mill being installed, throughput at La Guitarra is planned to reach 500 tpd from the current 350 tpd by the end of January 2013.
First Majestic is a producing silver company focused on silver production in Mexico and is aggressively pursuing its business plan of becoming a senior silver producer through the development of its existing mineral property assets and the pursuit through acquisition of additional mineral assets which contribute to the Company achieving its aggressive corporate growth objectives.
FIRST MAJESTIC SILVER CORP.
Keith Neumeyer, President & CEO
SPECIAL NOTE REGARDING FORWARD-LOOKING INFORMATION
This news release includes certain "Forward-Looking Statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When used in this news release, the words "anticipate", "believe", "estimate", "expect", "target", "plan", "forecast", "may", "schedule" and similar words or expressions, identify forward-looking statements or information. These forward-looking statements or information relate to, among other things: the price of silver and other metals; the accuracy of mineral reserve and resource estimates and estimates of future production and costs of production at our properties; estimated production rates for silver and other payable metals produced by us, the estimated cost of development of our development projects; the effects of laws, regulations and government policies on our operations, including, without limitation, the laws in Mexico which currently have significant restrictions related to mining; obtaining or maintaining necessary permits, licences and approvals from government authorities; and continued access to necessary infrastructure, including, without limitation, access to power, land, water and roads to carry on activities as planned.
These statements reflect the Company's current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors, both known and unknown, could cause actual results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements or information and the Company has made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: fluctuations in the spot and forward price of silver, gold, base metals or certain other commodities (such as natural gas, fuel oil and electricity); fluctuations in the currency markets (such as the Canadian dollar and Mexican peso versus the U.S. dollar); changes in national and local government, legislation, taxation, controls, regulations and political or economic developments in Canada, Mexico; operating or technical difficulties in connection with mining or development activities; risks and hazards associated with the business of mineral exploration, development and mining (including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins and flooding); risks relating to the credit worthiness or financial condition of suppliers, refiners and other parties with whom the Company does business; inability to obtain adequate insurance to cover risks and hazards; and the presence of laws and regulations that may impose restrictions on mining, including those currently enacted in Mexico; employee relations; relationships with and claims by local communities and indigenous populations; availability and increasing costs associated with mining inputs and labour; the speculative nature of mineral exploration and development, including the risks of obtaining necessary licenses, permits and approvals from government authorities; diminishing quantities or grades of mineral reserves as properties are mined; the Company's title to properties; and the factors identified under the caption "Risk Factors" in the Company's Annual Information Form, under the caption "Risks Relating to First Majestic's Business".
Investors are cautioned against attributing undue certainty to forward-looking statements or information. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements or information, other than as required by applicable law.
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Aug. 24, 2016 05:00 AM EDT Reads: 2,036
Amazon has gradually rolled out parts of its IoT offerings in the last year, but these are just the tip of the iceberg. In addition to optimizing their back-end AWS offerings, Amazon is laying the ground work to be a major force in IoT – especially in the connected home and office. Amazon is extending its reach by building on its dominant Cloud IoT platform, its Dash Button strategy, recently announced Replenishment Services, the Echo/Alexa voice recognition control platform, the 6-7 strategic...
Aug. 24, 2016 04:30 AM EDT Reads: 2,158
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterpri...
Aug. 24, 2016 03:30 AM EDT Reads: 2,899
Akana has announced the availability of version 8 of its API Management solution. The Akana Platform provides an end-to-end API Management solution for designing, implementing, securing, managing, monitoring, and publishing APIs. It is available as a SaaS platform, on-premises, and as a hybrid deployment. Version 8 introduces a lot of new functionality, all aimed at offering customers the richest API Management capabilities in a way that is easier than ever for API and app developers to use.
Aug. 24, 2016 02:00 AM EDT Reads: 1,384
Personalization has long been the holy grail of marketing. Simply stated, communicate the most relevant offer to the right person and you will increase sales. To achieve this, you must understand the individual. Consequently, digital marketers developed many ways to gather and leverage customer information to deliver targeted experiences. In his session at @ThingsExpo, Lou Casal, Founder and Principal Consultant at Practicala, discussed how the Internet of Things (IoT) has accelerated our abil...
Aug. 24, 2016 01:45 AM EDT Reads: 1,848
With so much going on in this space you could be forgiven for thinking you were always working with yesterday’s technologies. So much change, so quickly. What do you do if you have to build a solution from the ground up that is expected to live in the field for at least 5-10 years? This is the challenge we faced when we looked to refresh our existing 10-year-old custom hardware stack to measure the fullness of trash cans and compactors.
Aug. 24, 2016 01:00 AM EDT Reads: 1,572
The emerging Internet of Everything creates tremendous new opportunities for customer engagement and business model innovation. However, enterprises must overcome a number of critical challenges to bring these new solutions to market. In his session at @ThingsExpo, Michael Martin, CTO/CIO at nfrastructure, outlined these key challenges and recommended approaches for overcoming them to achieve speed and agility in the design, development and implementation of Internet of Everything solutions wi...
Aug. 24, 2016 12:30 AM EDT Reads: 1,846
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
Aug. 24, 2016 12:00 AM EDT Reads: 2,800
I wanted to gather all of my Internet of Things (IOT) blogs into a single blog (that I could later use with my University of San Francisco (USF) Big Data “MBA” course). However as I started to pull these blogs together, I realized that my IOT discussion lacked a vision; it lacked an end point towards which an organization could drive their IOT envisioning, proof of value, app dev, data engineering and data science efforts. And I think that the IOT end point is really quite simple…
Aug. 23, 2016 11:30 PM EDT Reads: 2,206
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
Aug. 23, 2016 11:00 PM EDT Reads: 3,482
"My role is working with customers, helping them go through this digital transformation. I spend a lot of time talking to banks, big industries, manufacturers working through how they are integrating and transforming their IT platforms and moving them forward," explained William Morrish, General Manager Product Sales at Interoute, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Aug. 23, 2016 09:00 PM EDT Reads: 2,972
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 19th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world and ThingsExpo Silicon Valley Call for Papers is now open.
Aug. 23, 2016 08:45 PM EDT Reads: 3,747
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
Aug. 23, 2016 08:15 PM EDT Reads: 1,632
The 19th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Digital Transformation, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportuni...
Aug. 23, 2016 07:00 PM EDT Reads: 3,798
SYS-CON Events announced today that Venafi, the Immune System for the Internet™ and the leading provider of Next Generation Trust Protection, will exhibit at @DevOpsSummit at 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Venafi is the Immune System for the Internet™ that protects the foundation of all cybersecurity – cryptographic keys and digital certificates – so they can’t be misused by bad guys in attacks...
Aug. 23, 2016 02:15 PM EDT Reads: 2,500
Smart Cities are here to stay, but for their promise to be delivered, the data they produce must not be put in new siloes. In his session at @ThingsExpo, Mathias Herberts, Co-founder and CTO of Cityzen Data, will deep dive into best practices that will ensure a successful smart city journey.
Aug. 23, 2016 01:45 PM EDT Reads: 1,410
SYS-CON Events announced today that 910Telecom will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and ...
Aug. 23, 2016 01:15 PM EDT Reads: 1,717
In today's uber-connected, consumer-centric, cloud-enabled, insights-driven, multi-device, global world, the focus of solutions has shifted from the product that is sold to the person who is buying the product or service. Enterprises have rebranded their business around the consumers of their products. The buyer is the person and the focus is not on the offering. The person is connected through multiple devices, wearables, at home, on the road, and in multiple locations, sometimes simultaneously...
Aug. 23, 2016 09:30 AM EDT Reads: 2,224
For basic one-to-one voice or video calling solutions, WebRTC has proven to be a very powerful technology. Although WebRTC’s core functionality is to provide secure, real-time p2p media streaming, leveraging native platform features and server-side components brings up new communication capabilities for web and native mobile applications, allowing for advanced multi-user use cases such as video broadcasting, conferencing, and media recording.
Aug. 23, 2016 06:45 AM EDT Reads: 2,040
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, will discuss the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Aug. 23, 2016 06:45 AM EDT Reads: 1,628