First Majestic generated 55.3 million USD of revenues in the first quarter of 2011. This is a rise of 211% compared to the 17.7 million USD reported in the first quarter of 2010. It is 38% higher than in the fourth quarter of 2010. Obviously, First Majestic Silver was helped by a 95% rise of silver, as well as by a 13% rise of production.
First Majestic generated 34.4 million USD of operational cashflow (0.34 USD per share) in the first quarter of 2011, compared to 6.3 million USD (0.07 USD per share) for the first quarter of 2010, which is a huge rise of 407%.
The company also reported net earnings of 23.9 million USD in the first quarter of 2011, compared to net profits of 0.4 million USD in the first quarter of 2010 and net earnings of 13.7 million USD in the fourth quarter of 2010.
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It goes without saying that First Majestic Silver is following the right path. In the last quarter, the company clearly profited from the sharp rise in silver prices, while production levels remained stagnant compared to the last quarter, even with two important projects in the pipeline. The expansion of the La Parrilla project is right on track, and the mine development of Del Toro is advancing well.
Nonetheless, as the American dollar has depreciated significantly versus the Mexican peso, cash costs are rising. There is also some core inflation to be seen in material prices and energy costs are on the rise as well. Guidance for production figures remains unchanged, as well as guidance for cash costs, but we are likely to adapt our outlook after the second quarter.