VANCOUVER, British Columbia, Nov. 05, 2020 (GLOBE NEWSWIRE) -- FIRST MAJESTIC SILVER CORP. (AG: NYSE; FR: TSX) (the "Company" or “First Majestic”) is pleased to announce the unaudited interim consolidated financial results of the Company for the third quarter ended September 30, 2020. The full version of the financial statements and the management discussion and analysis can be viewed on the Company's website at www.firstmajestic.com or on SEDAR at www.sedar.com and on EDGAR at www.sec.gov. All amounts are in U.S. dollars unless stated otherwise.

THIRD QUARTER 2020 HIGHLIGHTS
(compared to Q3 2019)
•Achieved record quarterly revenues of $125.9 million, representing a 30% increase due to higher metal prices and the sale of $25.0 million worth of stockpiled metal inventory held over from the prior quarter
•Reduced cash costs to $2.49 per payable silver ounce, representing a 35% decrease
•Reduced All-in sustaining costs (“AISC”) to $9.94 per payable silver ounce, representing an 8% decrease
•Realized an average silver price of $22.58 per equivalent ounce, representing a 28% increase and the highest quarterly average since Q1 2013
•Operating cash flows before movements in working capital and taxes of $52.2 million, or cash flow per share of $0.24 (non-GAAP)
•Mine operating earnings of $48.0 million, representing a 73% increase primarily due to higher metal prices and the sale of stockpiled inventory
•Net earnings of $30.9 million, or basic EPS of $0.14
•Adjusted EPS of $0.12 after excluding non-cash and non-recurring items
•Invested $35.3 million on capital expenditures during the quarter
•Ended the quarter with a record $232.4 million in cash and cash equivalents

“During the third quarter, our industry-leading silver purity as a percentage of revenue increased to 67% as a result of strong silver production at La Encantada and an improved silver to gold ratio,” stated Keith Neumeyer, President and CEO. “We generated record quarterly revenues, cash flows and earnings as a result of higher metal prices, improved production rates, good cost control management and the decision to delay the sale of inventory from the prior quarter. Along with our record cash and working capital position, the Company is poised to close out 2020 as one of its strongest years in the Company’s 18-year history.”

OPERATIONAL AND FINANCIAL HIGHLIGHTS
Key Performance Metrics 2020-Q3 2020-Q2 Change
Q3 vs Q2 2019-Q3 Change
Q3 vs Q3 2020-YTD
Operational
Ore Processed / Tonnes Milled 655,920 333,559 97% 655,967 0% 1,588,621

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NM – Not meaningful

(1) The Company reports non-GAAP measures which include cash costs per ounce, all-in sustaining cost per ounce, total production cost per ounce, total production cost per tonne, average realized silver price per ounce, working capital, adjusted EPS and cash flow per share. These measures are widely used in the mining industry as a benchmark for performance, but do not have a standardized meaning and may differ from methods used by other companies with similar descriptions.

Q3 2020 FINANCIAL RESULTS

The Company realized an average silver price of $22.58 per equivalent ounce during the third quarter of 2020, representing a 28% increase compared the third quarter of 2019 and a 30% increase compared to the prior quarter.

Revenues generated in the third quarter reached a new quarterly record of $125.9 million compared to $97.0 million in the third quarter of 2019. Revenues in the quarter benefited from the sale of $25.0 million worth of withheld inventory from the second quarter of 2020, as well as a 28% increase in average realized silver price.

The Company realized record mine operating earnings of $48.0 million compared to $27.8 million in the third quarter of 2019. Strong operating earnings were primarily attributed to higher metal prices combined with the sale of withheld metal inventory.

Net earnings reached a new quarterly record of $30.9 million (EPS of $0.14) compared to $8.6 million (EPS of $0.04) in the third quarter of 2019.

Adjusted earnings for the quarter was $25.7 million (Adjusted EPS of $0.12) compared to $11.9 million (Adjusted EPS of $0.06) in the third quarter of 2019, after excluding non-cash and non-recurring items.

Cash flow used in operations before movements in working capital and income taxes in the quarter was $52.2 million ($0.24 per share) compared to $34.6 million ($0.17 per share) in the third quarter of 2019.

The Company ended the quarter with cash and cash equivalents of $232.4 million, up $137.2 million from the prior quarter, while working capital increased to $266.7 million. The increase in cash and cash equivalents was attributed to strong cash generation from operations, $112.4 million in proceeds from prospectus offerings, including the $58.3 million investment by Eric Sprott, and $7.3 million in proceeds from exercised stock options. Subsequent to September 30, 2020, the Company repaid its revolving credit facility balance of $9.7 million in full. Subsequent to the repayment, the revolving credit facility has an undrawn balance of $75.0 million.

OPERATIONAL HIGHLIGHTS
The table below represents the quarterly operating and cost parameters at each of the Company’s three producing silver mines.

Third Quarter Production Summary San Dimas Santa Elena La Encantada Consolidated
Ore Processed / Tonnes Milled 189,918 204,577 261,425 655,920
Silver Ounces Produced 1,678,075 502,375 978,416 3,158,866
Gold Ounces Produced 18,268 7,428 76 25,771
Silver Equivalent Ounces Produced 3,125,662 1,091,026 984,397 5,201,085
Cash Costs per Ounce* ($1.50 ) $0.85 $10.14 $2.49
All-in Sustaining Cost per Ounce* $4.09 $6.37 $12.11 $9.94
Total Production Cost per Tonne $120.60 $71.44 $36.04 $71.56