VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 7, 2015) - FIRST MAJESTIC SILVER CORP. (FR.TO)(AG)(FMV.F)(AG) (the "Company" or "First Majestic") is pleased to announce the unaudited interim consolidated financial results of the Company for the first quarter ended March 31, 2015. The full version of the financial statements and the management discussion and analysis can be viewed on the Company's web site at www.firstmajestic.com or on SEDAR at www.sedar.com and on EDGAR at www.sec.gov. All amounts are in U.S. dollars unless stated otherwise.
FIRST QUARTER 2015 FINANCIAL HIGHLIGHTS
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Generated revenues of $54.6 million
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Mine operating earnings amounted to $5.0 million
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Net earnings after taxes amounted to a loss of $1.1 million or earnings per share of ($0.01)
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Adjusted earnings per share (a non-GAAP measure) of $0.00, after excluding non-cash and non-recurring items
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Cash flow per share (a non-GAAP measure) of $0.15
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All-in sustaining cost ("AISC") was $13.88 per payable silver ounce
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Total cash cost, net of by-product credits, was $8.22 per payable silver ounce
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Average realized selling price for silver was $17.05 per ounce compared to the quarterly COMEX average price of $16.70
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Cash and cash equivalents of $22.4 million held at the end of the quarter
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Subsequent to quarter end, the Company completed a CAD$30.0 million bought deal private placement, issuing 4,620,000 common shares at a price of CAD$6.50 per share
Keith Neumeyer, CEO and President of First Majestic, stated: "Our operations delivered solid operational and cost results for the first quarter of 2015. The Del Toro Silver Mine has grown to become the Company's new workhorse. Total production at Del Toro exceeded 1.3M silver equivalent ounces during the quarter, representing an increase of 66% compared to 0.8M in the first quarter of 2014. This significant growth, along with the lower energy cost due to the new power line, has begun to generate healthy profits for the Company. Our quarterly consolidated AISC per ounce of $13.88 came in below our annual cost guidance range of $13.96 to $15.48 and we anticipate achieving further cost improvements in the second half of the year as the plant expansion at La Encantada begins to contribute higher profit margin ounces."
| FIRST QUARTER 2015 HIGHLIGHTS | |||||||||||||||
| Q1 | Q4 | Q/Q | Q3 | Q2 | Q1 | ||||||||||
| HIGHLIGHTS | 2015 | 2014 | Change | 2014 | 2014 | 2014 | |||||||||
| Operating | |||||||||||||||
| Ore Processed / Tonnes Milled | 631,609 | 683,528 | (8 | %) | 621,196 | 671,024 | 637,663 | ||||||||
| Silver Ounces Produced | 2,776,855 | 3,074,567 | (10 | %) | 2,680,439 | 3,098,218 | 2,895,497 | ||||||||
| Silver Equivalent Ounces Produced | 3,905,270 | 4,247,527 | (8 | %) | 3,523,536 | 3,855,223 | 3,631,672 | ||||||||
| Cash Costs per Ounce(1) | $ | 8.22 | $ | 8.51 | (3 | %) | $ | 10.41 | $ | 9.63 | $ | 9.88 | |||
| All-in Sustaining Cost per Ounce(1) | $ | 13.88 | $ | 14.43 | (4 | %) | $ | 19.89 | $ | 18.18 | $ | 18.71 | |||
| Total Production Cost per Tonne(1) | $ | 46.90 | $ | 47.15 | (1 | %) | $ | 54.34 | $ | 51.81 | $ | 53.20 | |||
| Average Realized Silver Price per Ounce ($/eq. oz.)(1) | $ | 17.05 | $ | 16.30 | 5 | % | $ | 19.10 | $ | 19.59 | $ | 20.90 | |||
| Financial ($ millions) | |||||||||||||||
| Revenues | $ | 54.6 | $ | 72.5 | (25 | %) | $ | 40.8 | $ | 66.9 | $ | 65.3 | |||
| Mine Operating Earnings (2) | $ | 5.0 | $ | 5.8 | (14 | %) | $ | (1.8 | ) | $ | 9.5 | $ | 16.6 | ||
| Net Earnings | $ | (1.1 | ) | $ | (64.6 | ) | 98 | % | $ | (10.5 | ) | $ | 7.6 | $ | 6.0 |
| Operating Cash Flows before Working Capital and Taxes (2) | $ | 17.3 | $ | 21.1 | (18 | %) | $ | 9.0 | $ | 19.0 | $ | 25.4 | |||
| Cash and Cash Equivalents | $ | 22.4 | $ | 40.3 | (45 | %) | $ | 34.7 | $ | 66.7 | $ | 41.5 | |||
| Working Capital (1) | $ | (12.6 | ) | $ | (2.9 | ) | (339 | %) | $ | 11.4 | $ | 46.1 | $ | 18.7 | |
| Shareholders | |||||||||||||||
| Earnings per Share ("EPS") - Basic | $ | (0.01 | ) | $ | (0.55 | ) | 98 | % | $ | (0.09 | ) | $ | 0.06 | $ | 0.05 |
| Adjusted EPS(1) | $ | 0.00 | $ | 0.04 | (108 | %) | $ | (0.04 | ) | $ | 0.02 | $ | 0.06 | ||
| Cash Flow per Share(1) | $ | 0.15 | $ | 0.18 | (18 | %) | $ | 0.08 | $ | 0.16 | $ | 0.22 | |||
| (1) | The Company reports non‐GAAP measures which include cash costs per ounce, all‐in sustaining cost per ounce, total production cost per ounce,total production cost per tonne, average realized silver price per ounce, working capital, adjusted EPS and cash flow per share. These measures are widely used in the mining industry as a benchmark for performance, but do not have a standardized meaning and may differ from methods used by other companies with similar descriptions. | ||
| (2) | The Company reports additional GAAP measures which include mine operating earnings and operating cash flows before movements in working capital and income taxes. These additional financial measures are intended to provide additional information and do not have a standardized meaning prescribed by IFRS. |
FINANCIAL REVIEW
The Company generated revenues of $54.6 million for the first quarter of 2015, a decrease of 16% compared to the first quarter of 2014 primarily due to an 18% decrease in silver prices, partially offset by an 8% increase in silver equivalent ounces sold. Compared to the prior quarter, revenues decreased 25% primarily due an 8% decrease in total production as well as the sale of approximately 934,000 ounces of silver that had been temporary suspended in the third quarter of 2014 and later sold in the fourth quarter of 2014.