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First Majestic sets metal record

Mexico-focused precious metals miner First Majestic Resources (TSX: FR) achieved a September-quarter production record, lifting output some 69% over the comparable year-earlier period.
First Majestic sets metal record First Majestic sets metal record First Majestic sets metal record First Majestic sets metal record First Majestic sets metal record

First Majestic benefited from a full quarter of production from the San Dimas mine

Staff Reporter

The Toronto-headquartered company produced 6.7 million silver-equivalent ounces (Ag-eq) during the three-month period, up from 4Moz Ag-eq a year earlier.

Production comprised 3.5Moz silver, 35,260oz gold, 4.4M pounds lead and 1.2Mlbs zinc.

Ag-eq output rose 31% from 5.1Moz in the June quarter.

"The record quarter was primarily due to the company receiving a full quarter of production from the San Dimas operation, along with increases in consolidated silver and gold grades of 19% and 35%, respectively," CEO Keith Neumeyer said.

"In fact, five of our six mines recorded higher production levels as a result of these significant grade improvements."

Consolidated silver grades in the quarter averaged 152g/t, compared to 127g/t in the previous period.

Neumeyer also announced a 20% cost-cutting programme across all areas of the business, citing prolonged weakness in the silver price. The company expected to have achieved its austerity measures by the March-quarter of 2019.

Silver output for the three quarters to date totalled 8.4Moz, or 15.8Moz of Ag-eq. The production was in line with full-year guidance of between 12-13.2Moz silver, or 20.5-22.6 Moz Ag-eq.

First Majestic closed in the black Monday, up 2.25% to C$8.19 a share, which gave the company a market valuation of about C$1.58 billion.