VANCOUVER (miningweekly.com) – Mexico-focused silver miner First Majestic Silver on Wednesday reported record output for the three months ended September which, in combination with higher silver prices and ounces sold, lifted revenues 78% over the comparable period in 2015.

The Vancouver-based company, which owns and operates six mines in Mexico and derives about 64% of its sales from silver, generated revenues of $79.3-million in the quarter, boosted by a 30% increase in the average realised silver price and a 30% upsurge in silver equivalent ounces sold on the back of First Majestic's acquisition of the Santa Elena mine in October 2015.

The average realised price of $19.72/oz of silver represented the highest price the company had achieved in the past ten quarters.

First Majestic reported net earnings of $8.1-million, or $0.05 a share, compared with a net loss of $1.8-million, or $0.01 a share, in the third quarter of 2015.

During the third quarter, First Majestic produced a quarterly record of 3.11-million ounces of silver, an increase of 9% quarter-on-quarter, which is mainly attributable to a 5% increase in tonnes milled and a 3% improvement in average silver recoveries.

Total output in the third quarter was 4.52-million ounces of silver equivalent, which was 3% lower over the prior quarter, as lower by-product output at the La Parrilla and Santa Elena mines, owing to planned mine sequencing, weighed on overall output. This was further compounded by a decline in the silver equivalent conversion ratio, as a result of the price of silver outperforming other metals during the quarter.

The all-in sustaining cost per ounce in the third quarter of $10.52 represented a decrease of 4%, or $0.45/oz, over the prior quarter and 27% year-on-year; it is also below the revised annual guidance of $11.50/oz to $12.35/oz.

President and CEO Keith Neumeyer stated that the cost reduction was driven mainly by renegotiated smelting and refining agreements, the continued weakness in the Mexican peso, and record silver output.

The company’s TSX-listed stock gained about 16% on Wednesday to C$12.54 apiece, as precious metals producers benefited from safe-haven buying in light of economic uncertainty generated by the US electoral victory of Donald Trump.