Highlights from 3rd Quarter Financial Statements
November 29, 2007
FIRST MAJESTIC SILVER CORP. (FR-V) (the “Company”) is pleased to
announce the financial results of the Company’s third quarter ending
September 30th, 2007. The full version of the financial statements can
be viewed on the Company’s web site at www.firstmajestic.com
or on SEDAR
at www.sedar.com. The following are highlights from the third quarter
financial results of the Company and shareholders or interested parties
are encouraged to review the complete statements for further details.
- Sales revenues for the third quarter were $10,288,478, a 123%
increase compared to $4,616,681 in the corresponding period in 2006.
Shipments in the third quarter included a record 911,916 equivalent
ounces of silver, an increase of 106% over the 441,879 equivalent ounces
shipped in the corresponding period in 2006.
- Sales revenues for the three quarters ended September
30, 2007, were $31,293,444 an increase of 290% compared to the
$8,013,470 sales revenues in the corresponding period in 2006. Shipments
year to date included 2,427,935 equivalent ounces of silver, an
increase of 202% over the 805,157 equivalent ounces of silver shipped in
the corresponding period in 2006.
- Silver production in the third quarter ending September
30, 2007, has increased to 940,225 equivalent ounces of silver, an
increase of 10% over the prior quarter’s production of 852,721
equivalent ounces of silver, and an increase of 113% over the 441,919
produced in the quarter ending September 30, 2006. The equivalent silver
production for the quarter consisted of 810,106 ounces of silver, 436
ounces of gold, and 942,844 pounds of lead.
- Mine earnings (excluding amortization and depreciation)
for the third quarter were $4,142,060 making a year to date total of
$10,639,370 for the nine months ended September 30, 2007 compared to
$1,419,481 and $2,061,000 for the three and nine months ended September
30, 2006. During the quarter ended September 30, 2007, the Company
changed its accounting policy with respect to the treatment of
underground mining costs. Further clarification can be reviewed in
Section 1.11(iv) - Change in Accounting Policy Relating to Cost of
Production in the Company’s Management’s Discussion and Analysis.
- Net loss for the quarter ended September 30, 2007, was
$2,070,082 representing a 44% decrease from the prior year’s net loss of
$3,694,434 for the corresponding quarter in 2006. The net loss for the
quarter ended September 30, 2007, included a $1,703,591 one time write
down of the carrying value of the Candameña property which management
decided to option to Prospector Consolidated Resources Inc. in the
- Direct cash costs per ounce of silver increased to
US$6.73 per ounce for the quarter ended September 30, 2007, from US$6.59
per ounce from the prior quarter. Cash costs increased due to a 20%
increase in diesel costs in the quarter as well as an increase in labour
costs at La Encantada.
| First Majestic Consolidated Operations
| Quarter Ended September 30
|| Year to date September 30
|| Ore processed/tonnes milled
|| Average silver grade (g/tonne)
|| Recovery (%)
|| Silver ounces produced
|| Gold ounces produced
|| Equivalent ounces from gold
|| Pounds of lead produced
|| Equivalent ounces from lead
|| Total production - ounces of silver equivalents
|| Shipments - Payable ounces of silver equivalents
|| Total USD cash cost per ounce
|| Underground development (m)
|| Diamond drilling (m)
|| Total USD production cost per tonne
- On July 31, 2007, the Company incorporated a new wholly
owned Mexican subsidiary, Corporacion First Majestic, S.A. de C.V.,
(“CFM”) and on August 14, 2007, effected a corporate restructuring of
Desmin, La Encantada and FM Plata, such that the Company now holds the
shares of FM Plata, Desmin and La Encantada, through CFM, a Mexican
holding company for Mexican tax consolidation purposes.
- During the period July 1st to the date of this
announcement 176,323 warrants priced at $2.25 and 1,400,000 warrants
priced at $2.60 were exercised. Also, 3,464,999 warrants priced at
$5.00 and 420,000 warrants priced at $4.00 expired without being
The Company is continuing to focus on reducing its
operating costs at each of its three primary producing silver mines.
These improvements in operations are partially a result of the
continuous program of replacing old equipment in the mines and mills
with new or rebuilt equipment. This ongoing program has begun to show
results as can be seen in the financial results ending September 30,
2007. Other important areas of focus have been and continue to be; grade
control and mine dilution. These areas generally take the longest to
achieve and need to be accomplished in line with equipment upgrades and
improvements in mining techniques and standards. As a result of these
efforts, the La Parrilla and La Encantada financial results are
beginning to show significant signs of improvement. The San Martin is
anticipated to begin to show similar improvements by year end.
In addition to improvements in operations anticipated as the three mines
mature over the coming quarters, increases in silver production is also
expected to continue at each mine as further improvements and
expansions of the mills are achieved and as Reserves and Resources
increase with the release of updated NI 43-101 reports.
First Majestic is a producing silver company focused in México and is
aggressively pursuing its business plan to become a senior silver
producer through the development of its existing assets and the pursuit
through acquisition of additional assets that contribute to achieving
its corporate growth objectives.
FOR FURTHER INFORMATION contact firstname.lastname@example.org, visit our
website at www.firstmajestic.com
or call our toll free number
FIRST MAJESTIC SILVER CORP.
Keith Neumeyer, President & CEO
This press release includes certain “Forward-Looking Statements” within
the meaning of section 21E of the United States Securities Exchange Act
of 1934, as amended. All statements, other than statements of historical
fact, included herein, including without limitation, statements
regarding potential mineralization and reserves, exploration results and
future plans and objectives of First Majestic Resource Corp. are
forward-looking statements that involve various risks and uncertainties.
There can be no assurance that such statements will prove to be
accurate and actual results and future events could differ materially
from those anticipated in such statements.
The TSX Venture Exchange has in no way passed upon the merits of the
proposed transaction and the TSX Venture Exchange does not accept
responsibility for the adequacy or accuracy of this release.