(Kitco News) – Mine closures in the first half of 2020 did not appear to have a material impact on First Majestic Silver’s (NYSE: AG) production as the company said it ended the year on a strong note, hitting the top end of its production guidance.
In a statement Wednesday, the major silver producer said that fourth-quarter production totaled 5.5 million silver equivalent ounces, representing a 5% increase over the prior quarter. Simultaneously, silver production reached 3.5 million ounces, a 9% increase from the previous quarter and the second-best quarterly performance in the company’s history.
The company also said that gold production reached 26,343 ounces, representing a 2% increase from the prior quarter.
For the year, First Majestic said that it produced 11.6 million silver ounces, which was the top end of the company’s revised guidance range between 11.0 to 11.7 million ounces of silver.
“Strong silver production from La Encantada and San Dimas in the second half of 2020 helped to offset some of the production losses resulting from the national COVID-19 shutdowns which occurred in the second quarter of 2020,” the company said.
With its healthy production, the company said that it ended 2020 with a record cash and cash equivalents balance of US$238.6 million.
“First Majestic posted another strong year in 2020 despite the many challenges brought on by the COVID-19 pandemic and Mexico’s two-month national shutdown,” said Keith Neumeyer, president & CEO of the silver producer.
“In 2021, we expect an increase of up to 20% in consolidated silver production across the three operating mines. In addition, our investment in underground development at the Ermitaño project near Santa Elena will kick into high gear in order to prepare the area for production ramp-up in early 2022. Along with a few other projects currently being advanced, we now have a clear path to achieving our goal of producing 30 million silver equivalent ounces by 2023.”
View original article here Source