First Majestic reports US$40mln loss; shares drop

Shares of First Majestic Silver (TSE:FR, NYSE:AG) were down 14.9% to C$7.23 on the Toronto Stock Exchange on Monday after the company released second-quarter earnings, which showed an adjusted net loss of US$11.8 million. 

The company reported a loss of 22 cents on a per-share basis. In terms of one-time gains and costs, losses were 7 cents per share and all-in sustaining costs (AISC) were US$16.43 per payable silver ounce, a 3% increase year-over-year. 

“Looking ahead to the second half of 2018, we expect higher operating margins along with a significant reduction in our consolidated AISC to between US$13.28 to US$14.84 per ounce,” stated president and chief executive officer, Keith Neumeyer.

Silver production for the April-June period was 2.8 million ounces, a 27% increase compared to the first three months of the year, thanks to the addition of the San Dimas mine to the company’s portfolio.

Revenue for the period stood at US$79.7 million, a 36% increase compared to the first quarter of 2018, but operating losses were US$2.3 million compared to earnings of $1.4 million in the second quarter last year.

Shares of First Majestic Silver tumbled 14.9% on the Toronto Stock Exchange on Monday. 

Story by ProactiveInvestors