VANCOUVER (miningweekly.com) – NYSE- and TSX-listed precious metals producer first Majestic Silver has swung to a net loss of $56.1-million, or $0.34 a share, for the three months ended December, mainly owing to a $65.5-million impairment charge on the Del Toro Silver mine.

The Vancouver-headquartered miner reported an adjusted loss, which typically excludes special items, of $6.2-million, or $0.04 a share, sliding a hair under average analyst forecasts calling for a headline loss of $0.03 a share.

Revenues for the period fell 8% year-on-year to $61.2-million, mainly owing to a 7% decrease in silver equivalent ounces sold and a 3% fall in average realised silver prices to $16.61/oz.

During the fourth quarter, First Majestic saw output dip 17% over the prior-year period to 2.3-million ounces of silver, while silver-equivalent output fell 7% to 4.1-million ounces. All-in sustaining costs (AISC) rose 10% year-over-year to $14.13/oz of payable silver.

"2017 remained a catch-up year in underground development and exploration due to the lack of investment over the past three years. Nevertheless, we were still able to deliver the second-highest production level in the company's 15-year history primarily due to the continued operational strength of the Santa Elena and San Martin mines," president and CEO Keith Neumeyer noted in a press release.

The company reported total production of 16.21-million silver-equivalent ounces in 2017, which was in line with its full-year guidance of 15.7-million to 16.6-million silver-equivalent ounces despite being down 13% over 2016.

First Majestic reported a net loss of $75.3-million for 2017, compared with a profit of $25.5-million in 2016.

Neumeyer added that he expects the investments the company made during 2017 to generate double-digit growth in silver output in 2018, mainly owing to higher underground production rates at Santa Elena and Del Toro, higher silver grades from caving and the start-up of the new roasting circuit at La Encantada.

First Majestic has guided for total 2018 production ranging between 15.7-million and 17.5-million silver-equivalent ounces, representing a slight increase from 2017, mainly attributable to higher silver output at La Encantada, which will be offset by less gold by-product credits at Santa Elena. The company cautioned that the guidance is subject to revision once it has closed the acquisition of Primero Mining's San Dimas mine, which is expected to close in late March or early April.

On Thursday, First Majestic's NYSE-listed equity closed up 3.77%, before adding another per cent in after-market trading to change hands at $5.56 apiece.