First Majestic Silver (NYSE:AG, TSX:FR) announced their second quarter results, including net earnings of $0.2 million, down from net earnings of $26.5 million in the first quarter of 2013.
As quoted in the press release:
Silver ounces produced increased by 44% to 2,767,966 ounces compared to 1,917,248 ounces in Q2 2012.
Silver equivalent ounces produced increased by 55% to 3,268,117 ounces compared to 2,102,222 ounces in Q2 2012.
Net Earnings after Taxes amounted to $0.2 million ($0.00 per share) primarily due to the suspension of silver sales in the second quarter which would have added approximately $7.6 million to net earnings or $0.06 per share.
Adjusted Earnings Per Share (non-GAAP) of $0.07 after excluding non-cash and non-recurring items.
Cash Flow Per Share (non-GAAP) of $0.30, representing a 3% increase from Q2 2012.
Generated Revenues of $48.4 million, a 12% decrease compared to Q2 2012 primarily due to the suspension of silver sales late in the second quarter.
First Majestic’s President and CEO, Keith Neumeyer, said:
The silver price fell 31% during the second quarter which is equal to the largest quarterly drop during the 2008 financial crisis and the third largest quarterly drop in the past 50 years. As such, management decided to suspend a portion of silver sales to await a rebound in prices. While the suspension had a negative impact on this quarter’s revenues and earnings, we are confident the silver price will revert back to the mean in the near future. In the meantime, regular sales are now taking place in order to allow silver inventories to return to normal levels.