UPDATE 2-First Majestic cuts spending as silver prices fall

Wed May 15, 2013 11:36am EDT
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* Cuts capital expenditure by 16 pct to $162.3 mln

* Says capex cut will not affect 2013 production outlook

* First-quarter revenue rises 16 pct

* Canada-listed shares fall 8 pct; US-listed down 9 pct (Adds analyst comment, background, share movement)

By Krithika Krishnamurthy

May 15 (Reuters) - Canada's First Majestic Silver Corp cut its 2013 capital expenditure estimate and warned of further cuts later this year as it looks to blunt the effects of falling prices of silver, sending its shares down to a two-year low.

Miners around the world have slashed spending in an effort to control runaway development budgets. The world's No. 1 gold producer, Barrick Gold Corp, said in April it planned to further cut capital spending.

"If silver prices do not improve prior to the third quarter, further cuts in capital commitments will be made," First Majestic said in a statement.

Silver prices have dropped 23 percent, while gold prices have fallen 15 percent this year.   Continued...