| | Published : March 01st, 2011 | 2010 Audited Financial Results show Record Earnings & Cash Flows A Breakout Year for First Majestic |
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2010 Audited
Financial Results show Record Earnings & Cash Flows A
Breakout Year for First Majestic
FIRST MAJESTIC SILVER CORP. (AG: NYSE; FR: TSX) (the "Company" or
"First Majestic") is pleased to announce the audited consolidated
financial results for the Company for the year ending and fourth quarter ending
December 31, 2010. The full version of the financial statements and the
management discussion and analysis can be viewed on the Company's web site at www.firstmajestic.com, on SEDAR at www.sedar.com and EDGAR at www.sec.gov.
2010 HIGHLIGHTS
- Cash Flow per share (non-GAAP)
of $0.62 per share representing a 676% increase from 2009
- Earnings per share (basic)
amounted to $0.39 representing a 410% over 2009
- Total Cash Cost were US$7.94
per ounce, down 6% compared to 2009
- Gross Revenue of $132.2 million
showing an 85% increase from 2009
- Net Revenue of $120.8 million
showing a 103% increase from 2009
- Mine Operating Earnings of
$61.2 million showing an increase of 231% from 2009
- Net Income after Taxes amounted
to $36.1 million, a 472% increase from 2009
- Silver only production
increases by 72% to 6.53 million ounces compared to 3.8 million ounces
silver in 2009
- 2011 guidance of 7.5 million
ounces of silver or 8.0 million ounces of silver equivalent production
- Fully un-hedged to silver
prices
2010
ANNUAL AND FOURTH QUARTER HIGHLIGHTS
- Generated Gross Revenue of
$132.2 million for the year ended 2010 compared to $71.5 million in
2009, an increase of $60.6 million or 85%.
- Generated Gross Revenue of
$42.4 million for the fourth quarter of 2010 compared to $21.4 million in
the fourth quarter of 2009, an increase of $20.9 million or 98%.
- Generated Net Revenue
(excluding smelting & refining changes) of $120.8 million for 2010, an
increase of 103% compared to $59.5 million for 2009. Smelting and refining
charges and metal deductions decreased to 9% of gross revenue in 2010
compared to 17% of gross revenue in 2009. Average smelting charges for dor� in 2010 were US$0.43 per equivalent silver ounce
whereas for concentrates they were US$3.58 per equivalent silver ounce.
- Generated Net Revenue
(excluding smelting & refining changes) of $40.1 million for the
fourth quarter of 2010 compared to $18.4 million for the fourth quarter of
2009, an increase of $21.7 million or 118%.
- Recognized Mine Operating
Earnings of $61.2 million for 2010 compared to $18.5 million for 2009, an
increase of 231%. The increase was attributed to an increase in sales
volume from 4.2 million ounces of silver equivalent in 2009 to 7.0 million
ounces of silver equivalent in 2010, combined with an increase in sales
revenue per ounce from $16.89 (US$14.79) in 2009 to $20.39 (US$19.79) in
2010.
- Recognized Mine Operating
Earnings of $23.9 million for the fourth quarter of 2010 compared to $8.1
million for the fourth quarter of 2009, an increase of $15.8 million or
195%.
- Earned cash flows from
operations of $58.4 million or $0.62 per share (a non-GAAP measure) for
2010 compared to $6.7 million or $0.08 per share for 2009, an increase of
771%.
- The Company generated net
income of $36.1 million for 2010 compared to net income of $6.3 million,
for 2009.
- The Company generated basic
earnings per common share ("EPS") after current tax provision (a
non-GAAP measure) of $0.50 for 2010. EPS for 2010 after current and future
taxes was $0.39, compared to EPS of $0.08 for 2009.
- As the new La Encantada plant was not in commercial production until
April 1, 2010, under Canadian GAAP, revenues and production costs are
offset against the carrying value of the assets rather than being recorded
as income up to the date the plant achieves commercial production. If the
revenues and expenses of the new plant were recorded as income rather than
capital, then earnings would have been adjusted upwards in 2010 for the
$2.3 million of capitalized net profits resulting in $0.42 per share basic
EPS, or $0.53 excluding the future income tax provision (non-GAAP
measures).
- Net income after taxes was
$13.9 million for the fourth quarter of 2010 compared to $2.5 million for
the fourth quarter of 2009, an increase of $11.4 million or 459%.
- Increased production from
4,337,103 silver equivalent ounces in 2009 to 7,024,056 silver equivalent
ounces in 2010, an increase of 62%.
- Increased production from
1,249,568 silver equivalent ounces in the fourth quarter of 2009 to
1,827,987 silver equivalent ounces in the fourth quarter of 2010, an
increase of 46%.
- Direct Cash Costs per ounce of
silver (a non-GAAP measure) for 2010 increased to US$5.85 per ounce of
silver, compared to US$5.61 per ounce of silver for 2009 due to an
appreciation of the Mexican Peso relative to the US dollar and
inflationary pressures.
- Direct Cash Costs per ounce of
silver for the fourth quarter of 2010 increased to US$6.50 per ounce of
silver, compared to US$5.69 per ounce of silver for the fourth quarter of
2009 due to a 6% appreciation in the value of the Mexican Peso relative to
the US dollar and other increased costs due to inflationary pressures.
- Total Cash Costs per ounce (a
non-GAAP measure) was reduced by 6% to US$7.94 in 2010 from US$8.49 in
2009 due to a reduction in smelting and refining costs associated with
higher dor� production at the La Encantada mine.
- Total Cash Costs per ounce for
the fourth quarter of 2010 was reduced by 5% to US$8.16 compared to
US$8.61 in the fourth quarter of 2009.
- Cash and cash equivalents
compared to 2009 increased by $35.1 million to $40.9 million and improved
working capital by $43.3 million to $48.1 million.
- Repaid all of the Company's
debt facilities with cash flows from mining operations to reduce interest
expense.
- The new cyanidation
process plant at the La Encantada Silver Mine
achieved commercial production effective April 1, 2010 and reached full
production capacity of 3,750 tonnes per day
("tpd") by the end of the year. With
the expansion of the La Encantada, production at
the mine increased from 1.44 million ounces of silver equivalent in 2009
to 4.0 million ounces of silver equivalent in 2010.
2011 PRODUCTION OUTLOOK
The Company would like to provide the following forward-looking estimates
regarding its production outlook for 2011. Production in 2011 is expected to
increase by 13% from 2010 levels as the 3,750 tpd La Encantada mill experiences a full year of commercial
production and the expansion currently underway at La Parrilla
is anticipated to begin to ramp up in the third quarter from 850 tpd to 1,600 tpd by year end.
Estimated production on a mine-by-mine basis for 2011,
and associated anticipated operating costs are included in the following table.
These figures are based on existing installed capacity at the Company's operations
in the La Encantada and the San Martin mines, and
increasing capacities at the La Parrilla mine for the
second half of 2011. Pricing assumptions for equivalent silver production from
gold, lead and zinc are provided below the table.
ANTICIPATED
OPERATING PARAMETERS
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La Encantada
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La Parrilla
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San Martin
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2011 Outlook
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Total
Tonnes Processed
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1,144,125
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346,032
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252,450
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1,742,607
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Ag
ounces from production
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4,414,133
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1,947,047
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1,153,887
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7,515,067
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Ag
Equivalent Ounces (Au, Pb, Zn)
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-
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332,200
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81,533
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413,733
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Total
Equivalent Ounces Production*
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4,414,133
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2,279,247
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1,235,420
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7,928,800
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Ag
Grade (g/t) Flotation
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-
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246
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-
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246
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Ag
Recovery % Flotation
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-
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80%
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-
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80%
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Ag
Grade (g/t) Cyanidation
|
200
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193
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178
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196
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Ag
Recovery % Cyanidation
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60%
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70%
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80%
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64%
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Lead Concentrate (tonnes)
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-
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7,815
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-
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7,815
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Zinc
Concentrate (tonnes)
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-
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1,922
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-
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1,922
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Total
Cash Costs
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$ 6.64
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$ 7.44
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$ 8.47
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$ 7.09
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Direct Mining Cost per Silver Ounce
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$ 6.09
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$ 7.05
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$ 8.63
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$ 6.73
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Direct Mining Cost per Equivalent Silver Ounce
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$ 6.09
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$ 6.02
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$ 8.06
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$ 6.38
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Direct Mining Cost per tonne
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$ 23.51
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$ 39.66
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$ 39.46
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$ 29.03
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|
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*Assumptions:
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Operating
Days
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339
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331
|
330
|
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Price of Silver $22.00/oz., Gold $1,300/oz., Lead
$1.00/Lb., Zinc $1.00/Lb.
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IN SUMMARY
First Majestic has experienced a breakout year in 2010 due to the overlapping
effect of a 72% increase in silver production and a 34% increase in average
silver prices compared to 2009. Further silver price increases and an
anticipated production increase in 2011 bode well for continued earnings growth
and robust cash flows for fiscal 2011.
"This past year has clearly been a watershed year for First Majestic, and
we're continuing to push aggressively forward in expanding our silver
production into 2011 and beyond. I would like to extend my personal thanks and
appreciation to all of our employees, managers, and our board of directors for
everyone's support in working together in achieving such a fantastic year. We
are proud of our growth and our ability to continue growing each and every year
since founding this company. We will continue to focus on an aggressive growth
strategy combined with minimizing costs as we move First Majestic toward
becoming a senior silver producer" commented Keith Neumeyer,
President and CEO of First Majestic.
First Majestic is a producing silver company focused on silver production in
M�xico and is aggressively pursuing its business plan of becoming a senior
silver producer through the development of its existing mineral property assets
and the pursuit through acquisition of additional mineral assets which
contribute to the Company achieving its aggressive corporate growth objectives.
FOR FURTHER INFORMATION contact info@firstmajestic.com, visit our website at
www.firstmajestic.com or call our toll free number 1.866.529.2807.
FIRST MAJESTIC SILVER CORP.
"signed"
Keith Neumeyer, President & CEO
SPECIAL NOTE
REGARDING FORWARD-LOOKING INFORMATION
This news release includes certain "Forward-Looking Statements"
within the meaning of the United States Private Securities Litigation Reform
Act of 1995 and applicable Canadian securities laws. When used in this news
release, the words "anticipate", "believe",
"estimate", "expect", "target", "plan",
"forecast", "may", "schedule" and similar words
or expressions, identify forward-looking statements or information. These
forward-looking statements or information relate to, among other things: the
price of silver and other metals; the accuracy of mineral reserve and resource
estimates and estimates of future production and costs of production at our
properties; estimated production rates for silver and other payable metals
produced by us, the estimated cost of development of our development projects;
the effects of laws, regulations and government policies on our operations,
including, without limitation, the laws in Mexico which currently have
significant restrictions related to mining; obtaining or maintaining necessary
permits, licences and approvals from government
authorities; and continued access to necessary infrastructure, including,
without limitation, access to power, land, water and roads to carry on
activities as planned.
These statements reflect the Company's current views with respect to future
events and are necessarily based upon a number of assumptions and estimates
that, while considered reasonable by the Company, are inherently subject to
significant business, economic, competitive, political and social uncertainties
and contingencies. Many factors, both known and unknown, could cause actual
results, performance or achievements to be materially different from the
results, performance or achievements that are or may be expressed or implied by
such forward-looking statements or information and the Company has made
assumptions and estimates based on or related to many of these factors. Such
factors include, without limitation: fluctuations in the spot and forward price
of silver, gold, base metals or certain other commodities (such as natural gas,
fuel oil and electricity); fluctuations in the currency markets (such as the
Canadian dollar and Mexican peso versus the U.S. dollar); changes in national
and local government, legislation, taxation, controls, regulations and
political or economic developments in Canada, Mexico; operating or technical
difficulties in connection with mining or development activities; risks and
hazards associated with the business of mineral exploration, development and
mining (including environmental hazards, industrial accidents, unusual or
unexpected formations, pressures, cave-ins and flooding); risks relating to the
credit worthiness or financial condition of suppliers, refiners and other
parties with whom the Company does business; inability to obtain adequate
insurance to cover risks and hazards; and the presence of laws and regulations
that may impose restrictions on mining, including those currently enacted in
Mexico; employee relations; relationships with and claims by local communities
and indigenous populations; availability and increasing costs associated with
mining inputs and labour; the speculative nature of
mineral exploration and development, including the risks of obtaining necessary
licenses, permits and approvals from government authorities; diminishing
quantities or grades of mineral reserves as properties are mined; the Company's
title to properties; and the factors identified under the caption "Risk
Factors" in the Company's Annual Information Form, under the caption
"Risks Relating to First Majestic's Business".
Investors are cautioned against attributing undue certainty to forward-looking
statements or information. Although the Company has attempted to identify
important factors that could cause actual results to differ materially, there
may be other factors that cause results not to be anticipated, estimated or
intended. The Company does not intend, and does not assume any obligation, to
update these forward-looking statements or information to reflect changes in
assumptions or changes in circumstances or any other events affecting such statements
or information, other than as required by applicable law.
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PRODUCER |
CODE : FR.TO |
ISIN : CA32076R1029 |
CUSIP : 32076R1029 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
First Majestic is a silver producing company based in Canada. First Majestic produces silver, gold, lead and zinc in Mexico, and holds various exploration projects in Canada and in Mexico. Its main assets in production are LA PARRILLA SILVER MINE, LA ENCANTADA (FIRST MAJESTIC SILVER), SAN MARTIN and LA ENCANTADA SILVER MINE in Mexico and its main exploration properties are REAL DE CATORCE, DEL TORO and CUITABOCA in Mexico and PITT ISLAND, PINCOURT, DOMPIERRE and DESJARDINS in Canada. First Majestic is listed in Canada, in Germany and in United States of America. Its market capitalisation is 465.4 millions as of today (US$ 340.6 millions, € 313.9 millions). Its stock quote reached its lowest recent point on November 02, 2001 at 0.01, and its highest recent level on May 17, 2024 at 9.99. First Majestic has 47 442 200 shares outstanding. |
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