First Majestic Announces Strong Net Income of 26,4 Million $ in First Quarter 2012 - an Increase of 10% Compared to First Quarter 2011; Sales of 57,8 million $ - an increase of 5% compared to the first quarter 2011
VANCOUVER (BRITISH COLUMBIA), 10. May 2012. FIRST MAJESTIC SILVER CORP. (TSX: FR, NYSE: AG, FRANKFURT: FMV) ("First Majestic" or the "Company") is pleased to announce the company's preliminary unaudited and condensed consolidated financial results for the first quarter, which will be on 31. March 2012 came to an end, announce. The full version of the financial statements and the Management Discussion and Analysis are available on the Company's website at www.firstmajestic.com, on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.
HIGHLIGHTS OF THE FIRST QUARTER 2012
• Earnings of 0,25 $ per share (adjusted) - an increase of 5% compared to the first quarter 2011
• Cash flow of 0,35 $ per share (not according to GAAP) - no change compared to the first quarter 2011
• Adjusted profit of 0,26 $ per share (not in accordance with GAAP) after deduction of unrealized silver losses
• 57,8 Million $ Gross Sales - an increase of 5% compared to first quarter 2011
• Net income after tax deduction of a total of 26,4 million $ - an increase of 10% compared to the first quarter of 2011
• Profit from the mining operation of 35,7 million $
• Production costs total 29,24 $ per ton - a decrease of 3% compared to the first quarter 2011
• Total investment of 8,96 $ per ounce - an increase of 8% compared to the first quarter of 2011
• Increased production of silver ounces on 1.826.803 - an increase of 3% compared to the first quarter 2011 (1.769.208)
• Cash and cash equivalents of 85,3 million $, working capital of 108,3 million $
• Apart from cash, First Majestic also had 596.520 PSLV (Sprott Physical Silver Trust) at the end of the quarter.
TABLE OF THE HIGHLIGHTS OF THE FIRST QUARTER 2012
Keith Neumeyer, President and CEO of First Majestic, said, "The first quarter was another successful period for the company, which continues to meet its growth targets. Our financial strength ensures the timely construction of our Del Toro mine, where the first production is scheduled for the fourth quarter of this year. An updated Preliminary Economic Assessment ("PEA") under NI 43-101 will also be published in the coming weeks. "
"Although cost inflation in the mining industry continues to be a major headwind, First Majestics operations team did an excellent job of keeping costs down. Year-over-year, 3% reduced total production costs to industry-leading 29,24 $ / tonne, while many comparable companies saw cost increases from 25 to 50% / tonne. First Majestic remains in line with its production guidelines for the year 2012, and the management plans to impose further guidelines on the acquisition of Silvermex as soon as the deal is completed in the coming months. "
FINANCIAL HIGHLIGHTS
• In the quarter on 31. March 2012 came to an end, the company recorded sales of 57,8 million $ - an increase of 2,5 million $ or 5% compared to the first quarter of 2011 (55,3 million $), based on higher production costs.
• Mining profit of $ 35,7 million was approximately equivalent to 2011 (35,6 million $) in the first quarter.
• The net income after tax deduction was in the three months on 31. March 2012 came to an end, on 26,4 million $ - an increase of 10% compared to the first quarter 2011 (23,9 million $).
• Earnings per share for the three months ended on 31. March 2012 came to an end on 0,25 $ - an increase of 5% compared to the three months on 31. March 2011 came to an end (0,24 $).
• During the quarter, the Company transformed the unrecognized losses of 4,2 million in connection with 1 million ounces of silver into profit for 5,475 million $. At the end of the first quarter, the Company had a stock of 500.000 ounces at an average price of 34,063 $ per ounce on 31. March 2012 had a market value of 32,484 $ and resulted in an unrealized loss of 0,8 million $.
• The net profit for the quarter, that on 31. March 2012 reflects the unrealized silver losses of $ 0,8 million. Adjusted earnings per share (not in accordance with GAAP) after deduction of unrecognized silver losses of 0,26 $ for the quarter.
• In January 2012, the company acquired 757.500 Trust Units from Sprott Physical Silver Trust (PSLV) at a price of 13,20 $ per unit (total cost of 9.999.000 $). In the first quarter of 2012, the company also sold 160.980 Trust units at an average price of 15,45 $ per unit (total revenue of 2,5 million $) and posted a profit of 362.677 $ on this sale. By 31. In March 2012 there was a recognized unremarked profit of 255.601 $ in connection with the remaining 596.520 Trust units, which were upgraded to 13,63 $.
• Cash flow from operations before movements in non-cash working capital and income taxes increased in the first quarter from 2012 to 37,1 million (0,35 $ per share) - an increase of 6% compared to the first quarter 2011 (35,0 million $, 0,35 $ per share).
• Investment cost per ounce (non-GAAP) in the first quarter of 2012 was 8,96 $, an increase of 8% compared to the first quarter of 2011 (8,26 $). Investment costs were higher in the first quarter mainly due to lower grades and recovery rates at the La Encantada mine. Since the installation of a new ball mill in mid-April, recoveries have increased due to a higher proportion of processed fresh ore.
• Production costs per tonne were 29,24 $ - a decrease of 3% compared to the first quarter 2011 (30,04 $), which reflects lower production costs at the La Parrilla Mine in connection with the increase in production.
• The new cyanidation cycle at the La Parrilla Silver Mine, with a capacity of 1.000 tpd, was made by 1. March 2012 put into operation. The new parallel flotation and cyanidation cycles, each with a capacity of 1.000 tpd (shared by 2.000 tpd), which replaced the old mill with capacity of 850 tpd, are now fully up and running in March with 2012 at an average throughput of 1.850 tpd operated.
ZUSAMMENFASSUNG
First Majestic saw another solid quarter, with earnings and cash flow partially driven by an increase in total production of 2.007.219 ounces of silver equivalent, an increase of 10% over the first quarter of 2011 (1.825.366 ounces of silver equivalent produced). Silver production remained solid in the first quarter with 1.826.803 produced silver ounces - an increase of 3% compared to the first quarter 2011 (1.769.208 produced ounces of silver).
On the 1. In March 2012, the recently expanded 1.000 tpd oxide cycle at the La Parrilla Silver Mine went into operation, allowing for an increase in the production of silver Doré ingots. The second quarter of 2012 will be the first full quarter in which both extended production cycles (1.000 tpd flotation + 1.000 tpd cyanidation) are in commercial operation. As a result, the investment cost per ounce at La Parrilla is expected to decrease due to the increase in production on 2.000 tpd, while the share of silver Doré will be higher in comparison to concentrates of lower refinery costs.
The recent installation of the third ball mill at the La Encantada silver mine has a positive effect on the silver recovery rate. The third ball mill was on 19. April 2012 with the goal to increase the recovery rates and the average maximum levels by increasing the production rate of fresh ore. Management has decided to increase 1.500's share of 1.800's fresh ore to 2012 tpd due to ore retention in recent months and the mine's successful development. In addition, metallurgical tests continue to be conducted to evaluate the economy. Mill construction at Del Toro's exciting corporate silver mine remains on schedule; the first production is scheduled for the fourth quarter XNUMX.
First Majestic is a silver manufacturing company focused on silver production in Mexico, and consistently focuses its business strategy on becoming a leading silver producer by unlocking its existing commodity licenses and acquiring additional commodity concessions and achieving its growth targets.
FIRST MAJESTIC SILVER CORP.
Keith Neumeyer, President & CEO
SPECIAL NOTE ON FUTURE-ORIENTED INFORMATION
This press release contains certain "forward-looking statements" or "forward-looking information" in accordance with the United States Private Securities Litigation Reform Act of 1995 or applicable Canadian securities laws. The terms "accept," "believe," "estimate," "expect," "target," "plan," "forecast," "could" and similar terms or expressions in this press release identify forward-looking statements or information. These forward-looking statements or information include: accuracy of mineral reserve and mineral resource estimates; the estimated cost and schedule of development of our development projects; the timing of the completion of the exploration programs and the preparation of "technical reports"; the effects of laws, regulations or regulatory requirements on our operations, including, but not limited to, the laws in Mexico, which currently provide for significant restrictions in the mining industry; obtaining the necessary licenses, licenses and permits from the authorities; Continued access to the necessary infrastructure, including, but not limited to, access to electricity, land, water and roads in order to complete the work as planned.
These statements reflect the Company's current views as to future events and are necessarily based on a number of assumptions and estimates that involve significant business, economic, political and social uncertainties and contingencies, even if the Company believes they are reasonable. Many known and unknown factors could cause actual results, performance or achievements to be materially different from the results, performance or achievements expressed or implied by such forward-looking statements or information. The assumptions and estimates of the company are based on or are related to many of these factors. Such factors include, but are not limited to: fluctuations in the 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 the Mexican peso versus the US dollar); Changes in national or local government, jurisdiction and tax policy or in political and economic developments in Canada and Mexico; the operation or technical problems associated with mining or development works; Risks and hazards associated with mineral exploration, exploitation and exploitation (including environmental hazards, industrial accidents, unusual or unexpected developments, collapses or floods); Risks related to the creditworthiness or financial condition of suppliers, refineries and other parties with which the company conducts business; the inability to take out appropriate insurance to cover risks and dangers; Laws and regulations that could restrict mining operations, including those that have just been introduced in Mexico; the relationship with the employees; Relationships with local communities and indigenous people; the availability and increased costs associated with dismantling and work; the speculative nature of mineral exploration and exploitation, including the risks of obtaining from the authorities the necessary licenses, concessions and permits; decreasing amounts or levels of mineral reserves in mining concessions; the company's right to ownership of the property; and Factors identified in the Risk Factors section of the Company's Annual Information Form under Risks Relating to First Majestic's Business.
Investors are cautioned not to rely unconditionally on forward-looking statements or information. The Company has endeavored to identify important factors that could cause actual results to differ materially. However, other factors may cause results not to be as expected, estimated or intended. The Company has no intention or obligation to adjust these forward looking statements or information to reflect changed assumptions or circumstances or other events that may affect such statements or information except as may be made in the relevant statements Laws required.
Contact information:
First Majestic Silver Corp.
Toll Free: 1.866.529.2807
or
(604) 688-3033
(604) 639-8873 (FAX)
[email protected]
www.firstmajestic.com
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