TORONTO (miningweekly.com) – Vancouver-based First Majestic Silver increased its second-quarter net income by more than 700%, to C$8,9-million, compared with C$1-million a year earlier, helped by higher silver prices and production.

First Majestic, which operates three mines in Mexico, reported net revenue of C$29-million for the quarter, up 122% year-on-year.

The company increased silver production by 86%, to 1,5-million ounces, while total cash costs an ounce declined 10%, to $8,20/oz.

Output was boosted by the start-up of the firm's new cyanidation plant at its La Encantada silver mine, as well as improved operating levels at the La Parrilla operation, First Majestic said.

In the second quarter of 2010, the company sold 1,6-million ounces of silver equivalent at an average price of $18,68/oz, compared with 1,07-million ounces at $12,60/oz in the same quarter of 2009.

Shares in First Majestic rose 6,64% on Monday, to C$4,50 apiece by 15:59 in Toronto.

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