2 weeks Ago By Staff report
First Majestic Silver Corp., owner of the Jerritt Canyon property north of Elko and producing mines in Mexico, reported an adjusted net loss of $10.5 million, or a loss of 3 cents per share, for the third quarter, on production of 5.
5 million silver equivalent ounces. The Vancouver-based company reported that the adjusted net loss, normalized for share-based payments, unrealized losses on marketable securities and deferred income tax, compared with an adjusted net loss of $10.9 million, or 4 cents per share, in the 2023 quarter.
Mine operating earnings were up, however, at $28.5 million, compared with $13 million in the third quarter of last year, an increase of 119% and attributed to a 67% increase in operating earnings at the Santa Elena Mine, driven by higher silver prices. The average realized silver price in the quarter was $29.
84, up from $22.41 per ounce in the 2023 quarter. First Majestic produced 5.
49 million silver equivalent ounces, including 41,761 ounces of gold and 1.97 million ounces of silver in the third quarter. The production compared with 2.
46 million silver ounces and 46,720 gold ounces in the 2023 quarter, a total of nearly 6.29 million silver equivalent ounces, according to the Nov. 7 financial results.
The all-in sustaining costs were $21.03 per silver equivalent ounce in the third quarter of this year, about a 3% decrease from $21.64 per silver equivalent ounce in the previous quarter.
The Santa Elena Mine produced nearly 2.69 million silver equivalent ounces in the third quarter, while the San Dimas Mine produced 2.11 million silver equivalent ounces and La Encantada produced 550,042 silver equivalent ounces.
A limited water supply affected production at La Encantada in the quarter but has since been resolved, according to First Majestic. The Jerritt Canyon Mine, where mining ended in March of last year, produced 1,684 ounces of gold from circuit recovery efforts at the mill. Exploration continues at the mine 50 miles north of Elko.
The company said in its production announcement that exploration for the season started in the third quarter, with three drilling rigs. The company also stated that the company held 767,386 silver ounces in finished goods inventory as of Sept. 30, including coins and bullion.
First Majestic, which has a new silver minting facility in Las Vegas called First Mint, said that the fair value of the inventory, if sold, would have added $23.8 million in revenue for the quarter. First Majestic sells coins and bars on its website and the First Mint website.
First Mint LCC in Las Vegas held a grand opening celebration on Sept. 26. Additionally, First Majestic reported that the company entered into a definitive agreement in the third quarter to acquire Gatos Silver Inc.
in an all-stock arrangement. The merger is expected to close in early 2025 once shareholders approve and the companies have clearance under Mexican anti-trust laws. Vancouver-based Gatos operates the Cerro Los Gatos Mine in Mexico and has an office in Greenwood Village, Colo.
First Majestic’s board declared a quarterly dividend of 0.0048 cents per share. The company reported it ended the third quarter with a strong cash and cash equivalents position of $154.
7 million, compared with $138.3 million in the 2023 quarter. Get the latest local business news delivered FREE to your inbox weekly.
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