First Majestic Silver Corp.: 2007 Year End Financial Results
April 17, 2008
MAJESTIC SILVER CORP. (FR-T) (the “Company”) is pleased to announce the
annual financial results for the Company’s year ended December 31,
2007. The Company’s prior annual audited results were for the six month
transitional year ended December 31, 2006, as the Company changed its
fiscal year in 2006. 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 year end and
fourth quarter. Shareholders or interested parties are encouraged to
review the complete financial statements for further details.
FINANCIAL PERFORMANCE AND HIGHLIGHTS
|Total Revenue for 2007 -||$42.9 million|
|Total Revenue for 4th Quarter -||$11.6million|
|Mine Earnings (excluding amortization and depletion)||$15.9million|
|Mine Earnings for 4th Quarter (excluding amortization and depletion)||$5.3 million|
|Positive Operating Cash Flow for 2007 (before working capital changes)||$8.6 million|
|Total Equivalent Silver Production for 2007||3,561,171 ounces|
|Total Cash Costs per Silver Ounce for the year||US$7.06|
|Total Mining Costs per Tonne for the year||US$42.96|
|Cash in Treasury, currently||$53 million|
- Sales revenues for the year were $42.9 million; an annualized
increase of 68% compared to $12.8 million for the six month provisional
year ended December 31, 2006.
- Mine earnings (excluding amortization and depreciation)
for the year amounted to $15.9 million, compared to $1.7 million for the
six month transitional year ended December 31, 2006.
- The Company generated cash flow from operating
activities (before working capital changes) of $8.6 million for the
year, compared to cash used in operations (before working capital
changes) of $1.9 million for the six months ended December 31, 2006.
- The Company currently has more than $53 million in its
treasury, is generating significant cash flows from operations, and has
sufficient capital to support its operating requirements for the
foreseeable future provided it does not undertake any major
- Total annual production for 2007 consisted of 3,561,171
ounces of silver equivalents, including 3,170,139 ounces of silver,
2,049 ounces of gold, and 2,924,146 pounds of lead.
- The Company invested $18.9 million in capital
expenditures on its mineral properties, a further $11.8 million on
additions to plant and equipment, and an additional $4.9 million on
acquisitions during 2007.
- Net loss for the year ended December 31, 2007, was
$7,230,122 compared to $7,588,195 for the six month provisional year
ended December 31, 2006 (the prior audited period), representing a 52%
decrease from the annualized prior year’s net loss. The net loss for the
year included non-cash stock-based compensation expense of $3,865,689,
and a write-down of a mineral property of $1,703,591.
- Sales revenues for the fourth quarter were $11,631,476, a
43% increase compared to $8,138,284 in the final quarter of 2006.
Shipments in the final quarter of 2007 included 908,688 equivalent
ounces of silver, an increase of 58% over the 574,547 equivalent ounces
shipped in the final quarter of 2006.
- Net loss for the quarter ended December 31, 2007, was
$1,292,632 representing a 38% decrease from the third quarter’s net loss
- Silver production in the fourth quarter ending December
31, 2007, has increased to 1,008,299 equivalent ounces of silver, an
increase of 7.2% over the prior quarter’s production of 940,225
equivalent ounces of silver, and increase of 75% over the 574,547
produced in the quarter ending December 31, 2006.
- Direct cash costs per ounce of silver for the year ended
December 31, 2007, were US$7.06 per ounce, and for the quarter they
were US$7.97 per ounce of silver, with the increase due to increases in
energy costs, reagent costs, and increases in equipment maintenance
costs. The Company has taken steps which are expected to positively
impact cash costs throughout 2008.
President and CEO, commented, “First
Majestic continued its strong growth in revenues and mine earnings
during 2007. With our recent financing and cash flow generated from our
mines we are in a positive position to continue our growth through 2008
and into 2009. We are continuing toward our goal of becoming a senior
silver producer and I am assured that with continued performance like we
have delivered in 2007 that we will continue to add value for our
As the Company continues to grow, we will focus on expansion of our
mills. In 2008, management at First Majestic will focus on executing our
business plan by continuing the ongoing improvements at each mine and
achieving our production and resource targets.
As a result of the work we completed in 2007, the additions to our
management team, and the improvements made at each of our mines, we are
targeting production of 5.5 million ounces of silver equivalent for
2008. We are very focused on the success of the company and
improvements are expected to include: the completion of the flotation
circuit at the San Martin, the replacement of the secondary crusher at
the La Encantada, new filter presses at the La Parrilla, and we are
currently reviewing expansion plans for our mining operations. We are in
the third year of an equipment replacement program where 20 additional
pieces of underground equipment are expected to be delivered and be
operational this year. These deliveries include scoop-trams, underground
trucks and jumbos. We expect this new equipment to provide more
efficient underground operations.
First Majestic anticipates that silver, gold, and lead prices will
continue to be volatile in 2008 but will continue their upward trends.
We expect all three of our producing mines to deliver positive cash
flows from production, and mine operating earnings during 2008.
First Majestic is a producing silver company focused in Mexico 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 email@example.com
, visit our website at www.firstmajestic.com
or call our toll free number 1.866.529.2807.
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 Silver 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