First Majestic reports Q2 production 5.1M Ag eq oz., raises 2018 guidance
First Majestic reported Q2 total production from its seven operating silver mines reached a new company record of 5.1M equivalent ounces of silver. Total production consisted of 2.8M ounces of silver, 25,449 ounces of gold, 3.9M pounds of lead and 1.4M pounds of zinc. The company has increased its 2018 annual silver production to a new range of 12.0M-13.2M ounces, or 20.5M-22.6M silver equivalent ounces primarily due to the addition of the San Dimas Silver/Gold mine which was acquired on May 10. This compares to the previous annual production guidance of 10.6M-11.8M ounces of silver, or 15.7M-17.5M silver equivalent ounces. In 2018, all-in sustaining costs at San Dimas are projected to be between $6.99 to $8.19 per ounce. In 2H18, production rates at San Dimas are expected to average 1,700 tpd with estimated average silver and gold grades of 345 g/t and 3.9 g/t, respectively. Many of the anticipated benefits from these mine and mill modifications are not yet reflected in the forecasted operating results and is expected to take several operating quarters to materialize. In 2H18, the company expects silver production of 7.6M-8.4M ounces, a 55%-71% increase vs. 4.9M silver ounces produced in 1H18. Additionally, total expected production is 12.4M-13.8M silver equivalent ounces in 2H18, a 38% to 53% increase when compared to 9.0M silver equivalent ounces produced in 1H18.