First Majestic Silver Corp. (NYSE : AG) is pleased to announce the audited consolidated financial results for the Company’s fourth quarter and year ending December 31, 2011.
2011 HIGHLIGHTS
2012 Production Outlook
Production in 2012 is expected to increase from 2011 levels with the following upcoming developments:
2011 HIGHLIGHTS
- AG Cash Flow of $1.55 per share (non-GAAP) representing a 147% increase from 2010
- AG earnings per share (basic) amounted to $1.00 representing a 167% increase over 2010
- Adjusted Earnings per Share (non-GAAP) of $0.24 for the quarter and $1.04 for the year
- Total Cash Cost increased by 9% to $8.24 per ounce (equivalent to $368 per ounce of gold based on average annual gold to silver ratio)
- Net Revenue after smelting and refining of $245.5 million, resulting in a 108% increase from 2010
- Mine Operating Earnings of $163.3 million showing an increase of 174% from 2010
- AG Net Earnings After Taxes amounted to $103.6 million, a 195% increase from 2010
- Silver only production increased by 11% to 7.22 million ounces compared to 6.53 million ounces in 2010
- AG 2012 guidance ranging from 8.8 to 9.3 million ounces of silver equivalent production
- Fully un-hedged to silver prices and no debt
- Invested US$10 million into Sprott Physical Silver Trust , “US:PSLV”, after year end
2012 Production Outlook
Production in 2012 is expected to increase from 2011 levels with the following upcoming developments:
- Commercial production at the newly expanded 1,000 tpd cyanidation circuit was achieved on March 1, 2012. The new 2,000 tpd plant at La Parrilla is expected to reach full production by the end of March 2012. Final improvements include the new induction furnaces which are currently in testing stage and the new tailings filters which will recirculate over 80% of the water back through the milling process.
- Once the new expansion at La Parrilla is fully operational, commercial production by the end of the first quarter is expected to reach approximately 3.2 million equivalent ounces of silver per year.
- Construction and development of the Del Toro Silver Mine is well underway and is expected to commence production at 1,000 tpd in the fourth quarter of 2012 and reaching 4,000 tpd by mid-2014.
- At La Encantada, intensive metallurgical tests are being conducted with the objective of improving recoveries by eliminating or reducing the manganese in the ore feed prior to the cyanidation process. Also, a new ball mill has been installed and is expected to be fully operational by the end of the first quarter. This new mill will allow for a higher percentage of fresh ore being processed which is anticipated to improve the head-grade at the mill and also have a positive impact on overall recoveries.
