First Majestic reports record revenues

Tax fight continues

Staff reporter
 First Majestic Silver’s Jerritt Canyon gold mine in Nevada

First Majestic Silver’s Jerritt Canyon gold mine in Nevada

President and CEO Keith Neumeyer also cited improved production rates from the company's three precious metals mines in Mexico and higher metal prices.

"As a result of the higher revenues, our quarterly dividend [of 0.6c] increased by approximately 33% when compared to the prior quarterly payment," he said.

Earnings per share rose from 1c in the previous quarter to 6c.

The company produced 3.3 million ounces of silver and 46,544oz of gold during the period, or 6.4Moz silver-equivalent, with all-in sustaining costs in-line with the previous quarter at $19.42/oz.

Neumeyer said AISC were expected to be higher than normal in the third quarter due to a $12.3 million lift on the tailing impoundment being constructed at Jerritt Canyon

The company increased its 2021 capital budget by 22% to $205.3 million, primarily due to the inclusion of Jerritt Canyon and further investments in underground development at Santa Elena.

In its MD&A, First Majestic said it would continue legal action over tax disputes in Mexico but was also "seeking to resolve matters and bring tax certainty through a negotiated solution".

The company ended June with $227.1 million in cash and equivalents.

First Majestic shares (TSX: FR) have returned to the same level as 12 months ago, after spiking unexpectedly to C$30.75 in February.

They closed down 3.8% to $15.23, valuing it at $3.9 billion (US$3.1 billion).

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