TORONTO (miningweekly.com) – Mexico-focused miner First Majestic Silver has narrowed its fourth-quarter loss after lifting silver-equivalent output and managing to significantly reduce costs.
The NYSE- and TSX-listed miner reported a net loss after taxes for the three months ended December 31 of $64.6-million, or $0.55 a share, compared with a net loss of $81.2-million, or $0.69 a share, in the comparable period a year earlier.
The company on Monday said the bottom line was impacted by noncash impairment charges of $102-million, consisting of $58.7-million at La Guitarra, $21.7-million at San Martin and $21.6-million at Del Toro, before tax.
Excluding special items, First Majestic reported adjusted net earnings of $4.2-million, or $0.04 a share, beating analyst expectations of earning $0.03 a share.
Cash flow from operations for the period was $21.1-million, or $0.18 a share.
For the period, First Majestic recorded silver equivalent output of 4.2-million ounces, a 24% increase over the same period a year earlier.
Silver output rose to 3.1-million ounces, up 12% year-over-year.
All-in sustaining costs (AISC) for the three months declined 27% to $14.43 a payable silver ounce.
Revenues after smelting and refining costs amounted to $72.5-million, up 23% when compared with the fourth quarter of 2013.
For 2015, First Majestic expected to lift silver output to a new record range of between 11.8-million ounces and 13.2-million ounces compared with 11.75-million ounces of silver in 2014. This would form part of the expected output of 15.3-million to 17.1-million silver equivalent ounces, at an AISC range of $13.96/oz to $15.48/oz for the year.
The Del Toro, La Encantada and La Guitarra mines were expected to underpin the improved performance outlook.
First Majestic’s NYSE-listed stock was buoyant on Tuesday, gaining more than 6% at $5.75 in the morning session.