First Majestic Silver Corp. ("First Majestic" or the "Company") is
pleased to announce the Company’s fourth quarter and full year 2019
production results. In addition, the Company is expecting to
release its 2020 production, cost and capital guidance, as well as
host a conference call, on January 21, 2020. Fourth quarter and
full year 2019 financial results are scheduled to be released on
February 19, 2020.
2019 HIGHLIGHTS
- Total production reached 25.6 million equivalent ounces of
silver, representing a 15% increase over 2018 and at the top end of
the 2019 guidance range of producing 24.4 to 26.0 million silver
equivalent ounces
- Silver production reached 13.2 million ounces, representing a
13% increase over 2018 and within the 2019 guidance range of
producing 12.8 to 13.5 million ounces
- Achieved record consolidated average silver recoveries of 86%,
the highest in the Company’s 17-year history
- Successfully commissioned the new 3,000 tpd high-intensity
grinding (“HIG”) mill at Santa Elena making it the only whole-ore,
hard-rock mining application of this technology in all of Latin
America
- Commenced earthwork and ramp development activities at Santa
Elena’s Ermitaño project in advance of initial production scheduled
for early 2021
- Ended the year with a strong cash and cash equivalents balance
of US$169.0 million
FOURTH QUARTER HIGHLIGHTS
- Total production reached 6.2 million equivalent ounces of
silver, representing a slight decrease over the prior quarter
primarily due to lower gold grades and a reduction in tonnes milled
at Santa Elena in the month of December due to heavy rains
impacting the ability to produce from the heap leach pads
- Silver production reached 3.3 million ounces, consistent with
the prior quarter
- Record average silver recoveries at Santa Elena of 94%, up from
91% in the prior quarter due to the successful installation of the
HIG mill
- La Encantada produced 987,630 silver ounces, marking a
five-year quarterly production record, up 12% from the prior
quarter
Total production in 2019 consisted of 13.2
million ounces of silver, 134,580 ounces of gold, 7.9 million
pounds of lead and 3.7 million pounds of zinc. Total production in
the fourth quarter of 2019 consisted of 3.3 million ounces of
silver, 33,176 ounces of gold and 0.9 million pounds of lead.
“First Majestic posted another record year in
2019 producing 25.6 million silver equivalent ounces following our
first full year of production from the San Dimas mine and several
successful innovative projects that have significantly increased
metallurgical recoveries at our Santa Elena and La Encantada
operations,” said Keith Neumeyer, President & CEO. “During the
fourth quarter, Santa Elena’s new HIG mill circuit continued to
exceed our expectations with silver and gold recoveries achieving
new records of 94% and 96%, respectively. At La Encantada, silver
production hit another five-year high due to continued improvements
in underground production from the San Javier and La Prieta areas.
Finally, San Dimas had a strong finish to 2019 producing over 3.5
million silver equivalent ounces in the fourth quarter.”
Production Details
Table:
|
|
|
|
|
|
|
|
|
|
Q4 |
Q3 |
Q/Q |
|
FY |
FY |
Y/Y |
|
|
2019 |
2019 |
Change |
Consolidated Production Results |
2019 |
2018 |
Change |
|
|
626,482 |
655,967 |
-4 |
% |
Ore processed/tonnes milled |
2,831,999 |
3,375,452 |
-16 |
% |
|
|
6,233,412 |
6,636,716 |
-6 |
% |
Total
production - ounces of silver equivalent |
25,554,288 |
22,243,071 |
+15 |
% |
|
|
3,348,424 |
3,367,740 |
-1 |
% |
Silver
ounces produced |
13,241,118 |
11,679,452 |
+13 |
% |
|
|
33,176 |
35,791 |
-7 |
% |
Gold
ounces produced |
134,580 |
111,084 |
+21 |
% |
|
|
914,370 |
1,907,305 |
-52 |
% |
Pounds of
lead produced |
7,935,566 |
16,135,438 |
-51 |
% |
|
|
- |
1,026,739 |
-100 |
% |
Pounds of zinc produced |
3,691,100 |
5,695,657 |
-35 |
% |
|
|
|
|
|
|
|
|
|
|
QUARTERLY REVIEWTotal ore
processed during the quarter at the Company's silver mines amounted
to 626,482 tonnes, representing a 4% decrease compared to the
previous quarter. The slight decrease in tonnes processed compared
to the prior quarter was primarily due to processing lower volumes
at Santa Elena from the old heap leach pad due to heavy rains as
well as the temporary suspension of milling activities at La
Parrilla on September 2, 2019, partially offset by higher tonnage
at La Encantada.
Consolidated silver grades in the quarter
averaged 189 g/t compared to 181 g/t in the previous quarter. This
4% increase was primarily due to higher silver grades at Santa
Elena and the first full quarter exclusion of La Parrilla’s
production following the suspension in September 2019. Consolidated
gold grades were relatively unchanged in the quarter averaging 1.71
g/t compared to 1.76 g/t in the prior quarter.
Consolidated silver and gold recoveries averaged
88% and 97% in the fourth quarter of 2019 and consistent with the
previous quarter. The Company continues to expect further
improvements in recoveries associated with the installation of a
new 3,000 tpd HIG mill at San Dimas in 2020.
MINE BY MINE PRODUCTION
TABLE
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|
|
|
|
|
|
|
|
|
Mine |
Ore Processed |
Tonnes per Day |
Silver Oz Produced |
Gold Oz Produced |
Pounds of Lead |
Equivalent Silver Ounces |
|
|
San Dimas |
182,265 |
1,981 |
1,658,721 |
21,713 |
- |
3,516,117 |
|
|
Santa Elena |
196,640 |
2,137 |
619,321 |
11,391 |
- |
1,592,397 |
|
|
La Encantada |
221,049 |
2,403 |
987,630 |
49 |
- |
991,856 |
|
|
Del Toro |
26,528 |
288 |
82,752 |
22 |
914,370 |
133,042 |
|
|
Total |
626,482 |
6,810 |
3,348,424 |
33,176 |
914,370 |
6,233,412 |
|
|
|
|
|
|
|
|
|
|
*Certain amounts shown may not add exactly to
the total amount due to rounding differences.*The following prices
were used in the calculation of silver equivalent ounces: Silver:
$17.32 per ounce; Gold: $1,481 per ounce; Lead: $0.93 per pound.
*The La Parrilla operation was placed on temporary suspension on
September 2, 2019 and thus no production was attributed in the
fourth quarter of 2019.
At the San Dimas Silver/Gold
Mine:
- During the quarter, San Dimas produced 1,658,721 ounces of
silver and 21,713 ounces of gold for a total production of
3,516,117 silver equivalent ounces and consistent compared to the
prior quarter.
- The mill processed a total of 182,265 tonnes with average
silver and gold grades of 305 g/t and 3.83 g/t, respectively. The
high-grade Victoria, Jessica and Roberta veins contributed
approximately 135,620 tonnes during the quarter.
- Silver and gold recoveries were consistent during the quarter
averaging 93% and 97%, respectively.
- During the quarter, rehabilitation efforts continued inside the
past producing Tayoltita mine with ground support, sampling,
mapping and drilling activities in order to prepare for the restart
of production by the end of the first quarter and is expected to
ramp up to 300 tpd by the end of 2020. The Tayoltita mine was the
original mining area at San Dimas and known to contain higher
silver grades. The mine portal is located approximately 150 metres
away from the ore pad used to feed the crushing circuit.
- In October, an agreement was reached with a local ejido group
to gain access to the northwest section of the property covering a
total of 9,000 hectares. This agreement allows the Company to begin
surface exploration activities and install ventilation
infrastructure to assist the underground mining
operations.
At the Santa Elena Silver/Gold
Mine:
- During the quarter, Santa Elena produced 619,321 ounces of
silver and 11,391 ounces of gold for a total production of
1,592,397 silver equivalent ounces, reflecting a 14% decrease
compared to the prior quarter. The decrease was primarily due to a
14% decrease in tonnes milled due to heavy rains during the month
of December.
- The mill processed a total of 196,640 tonnes, consisting of
129,833 tonnes (approximately 66% of production) of underground ore
and 66,807 tonnes (approximately 34% of production) from the above
ground heap leach pad. Due to the heavy rains in December, the
amount of material being sourced from above ground heap leach pads
was significantly reduced.
- Silver and gold grades from underground ore averaged 142 g/t
and 2.52 g/t, respectively. Silver and gold grades from the above
ground heap leach pad averaged 32 g/t and 0.61 g/t,
respectively.
- Silver and gold recoveries reached a new record averaging 94%
and 96%, respectively, during the quarter.
- In December, the Company began the 3,000 metre development
program at the Ermitaño project which is designed to prepare five
production levels with all associated mining infrastructure prior
to commencing production in early 2021. The production from
Ermitaño is expected to displace the current feed from the old heap
pads which is currently making up approximately 40% of the feed to
the mill.
At the La Encantada Silver
Mine:
- During the quarter, La Encantada
produced 987,630 ounces of silver representing a 12% increase from
the previous quarter and the highest quarterly production in over
five years. The increase in silver production was primarily due to
a 15% increase in throughput compared to the prior quarter.
- Silver recoveries averaged 79%
during the quarter.
- Silver grades during the quarter
averaged 176 g/t, consistent with the prior quarter. The
improvement in grade in the second half of the year was the driven
by higher grades from the San Javier and La Prieta sub-level caving
areas.
- During the quarter, ramp
development continued to access the Milagros breccia to prepare the
mine for initial sub-level caving production in the fourth quarter
of 2020. The Milagros breccia contains approximately 360,000 tonnes
of Inferred resources averaging 116 g/t of silver, or 1.34 million
ounces.
At the Del Toro Silver
Mine:
- During the quarter, Del Toro produced a total of 133,042 silver
equivalent ounces reflecting a 6% increase compared to the prior
quarter primarily due to a 14% increase in silver grades and a 17%
increase in lead grades, slightly offset by a 5% decrease in tonnes
milled.
- Silver grades and recoveries during the quarter averaged 131
g/t and 74%, respectively.
- Lead grades and recoveries averaged 2.7% and 58%, respectively,
producing a total of 0.9 million pounds of lead representing a 1%
increase compared to the previous quarter.
APPOINTMENT OF NEW DIRECTOR
The Board of Directors have appointed Dr. Nicole
Adshead-Bell as a Director of the Company effective January 1,
2020.
Dr. Adshead-Bell is a geologist with over 24
years of capital markets and mining sector experience, including a
cumulative of 12 years as an Independent Director for publicly
listed resource companies and six additional years as a Director
for the non-profit Association for Mineral Exploration. Her career
includes being CEO and Director of ASX-listed Beadell Resources
Ltd., a gold mining company, prior to its acquisition in 2019;
Director of Mining Research at Sun Valley Gold LLC (an SEC
registered investment advisor) and Managing Director of Investment
Banking at Haywood Securities. Nicole is currently President of
Cupel Advisory Corp., a company she founded to focus on mining
sector investments and provide strategic advisory, due diligence
and research services to institutional funds and mining companies.
She graduated with a Ph.D. in Structural-Economic Geology from
James Cook University, North Queensland, Australia.
In addition, the Company announces the
retirement of Dr. David Shaw from its Board of Directors effective
December 31, 2019. Dr. Shaw has served as Director of the Company
since 2005.
Keith Neumeyer, President and CEO of First
Majestic states, "On behalf of First Majestic's Board of Directors,
I am very pleased to welcome Nicole to the Company. We are
confident that Nicole's proficiencies, experience and perspective
will be of great value to First Majestic as the Company grows. I
would also like to thank David for his contributions to the Board
and the Company over the last 15 years. He played an instrumental
role in many of the Company’s acquisition due diligence
requirements and I wish him success in all of his future
endeavors."
CONFERENCE CALL
The Company will be holding a conference call
and webcast on Tuesday, January 21, 2020 at 8 am PST
(11 am EST) to discuss the quarterly production results as
well as its 2020 production, cost and capital guidance.
To participate in the conference call, please
dial the following:
Toll Free Canada & USA: |
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1-800-319-4610 |
Outside of Canada & USA: |
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1-604-638-5340 |
Toll Free Germany: |
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0800 180 1954 |
Toll Free UK: |
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0808 101 2791 |
Participants should dial in 10 minutes prior to
the conference.
Click on WEBCAST on the First Majestic homepage
as a simultaneous audio webcast of the conference call will be
posted at www.firstmajestic.com.
The conference call will be recorded and you can
listen to an archive of the conference by calling:
Canada & USA Toll Free: |
|
1-800-319-6413 |
Outside Canada & USA: |
|
1-604-638-9010 |
Access Code: |
|
2864 followed by the # sign |
The replay will be available approximately one
hour after the conference and will available for 7 days following
the conference. The replay will also be available on the
Company’s website for one month.
ABOUT THE COMPANY
First Majestic is a mining company focused on
silver production in Mexico and is aggressively pursuing the
development of its existing mineral property assets. The Company
presently owns and operates the San Dimas Silver/Gold Mine, the
Santa Elena Silver/Gold Mine, the La Encantada Silver Mine and the
Del Toro Silver Mine.
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
Cautionary Note Regarding Forward
Looking Statements
This press release contains “forward‐looking
information” and "forward-looking statements” under applicable
Canadian and U.S. securities laws (collectively, “forward‐looking
statements”). These statements relate to future events or the
Company's future performance, business prospects or opportunities
that are based on forecasts of future results, estimates of amounts
not yet determinable and assumptions of management made in light of
management's experience and perception of historical trends,
current conditions and expected future developments.
Forward-looking statements include, but are not limited to,
statements with respect to: the Company’s business strategy; future
planning processes; commercial mining operations; cash flow;
budgets; the timing and amount of estimated future production;
recovery rates; mine plans and mine life; the future price of
silver and other metals; costs of production; costs and timing of
the development of new deposits; capital projects and exploration
activities and the possible results thereof. Assumptions may
prove to be incorrect and actual results may differ materially from
those anticipated. Consequently, guidance cannot be guaranteed. As
such, investors are cautioned not to place undue reliance upon
guidance and forward-looking statements as there can be no
assurance that the plans, assumptions or expectations upon which
they are placed will occur. All statements other than statements of
historical fact may be forward‐looking statements. Statements
concerning proven and probable mineral reserves and mineral
resource estimates may also be deemed to constitute forward‐looking
statements to the extent that they involve estimates of the
mineralization that will be encountered as and if the property is
developed, and in the case of measured and indicated mineral
resources or proven and probable mineral reserves, such statements
reflect the conclusion based on certain assumptions that the
mineral deposit can be economically exploited. Any statements that
express or involve discussions with respect to predictions,
expectations, beliefs, plans, projections, objectives or future
events or performance (often, but not always, using words or
phrases such as “seek”, “anticipate”, “plan”, “continue”,
“estimate”, “expect”, “may”, “will”, “project”, “predict”,
“forecast”, “potential”, “target”, “intend”, “could”, “might”,
“should”, “believe” and similar expressions) are not statements of
historical fact and may be “forward‐looking statements”.
Actual results may vary from forward-looking
statements. Forward-looking statements are subject to known and
unknown risks, uncertainties and other factors that may cause
actual results to materially differ from those expressed or implied
by such forward-looking statements, including but not limited to:
risks related to the integration of acquisitions; actual results of
exploration activities; conclusions of economic evaluations;
changes in project parameters as plans continue to be refined;
commodity prices; variations in ore reserves, grade or recovery
rates; actual performance of plant, equipment or processes relative
to specifications and expectations; accidents; labour relations;
relations with local communities; changes in national or local
governments; changes in applicable legislation or application
thereof; delays in obtaining approvals or financing or in the
completion of development or construction activities; exchange rate
fluctuations; requirements for additional capital; government
regulation; environmental risks; reclamation expenses; outcomes of
pending litigation; limitations on insurance coverage as well as
those factors discussed in the section entitled "Description of the
Business - Risk Factors" in the Company's most recent Annual
Information Form, available on www.sedar.com, and Form 40-F on file
with the United States Securities and Exchange Commission in
Washington, D.C. Although First Majestic has attempted
to identify important factors that could cause actual results to
differ materially from those contained in forward-looking
statements, there may be other factors that cause results not to be
as anticipated, estimated or intended.
The Company believes that the expectations
reflected in these forward‐looking statements are reasonable, but
no assurance can be given that these expectations will prove to be
correct and such forward‐looking statements included herein should
not be unduly relied upon. These statements speak only as of the
date hereof. The Company does not intend, and does not assume any
obligation, to update these forward-looking statements, except as
required by applicable laws.
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