July 17, 2012 / 5:08 PM / 5 years ago

First Majestic sees higher 2012 silver output

2 Min Read

TORONTO, July 17 (Reuters) - Shares of First Majestic Silver Corp rose slightly on Tuesday after the Mexico-focused miner reported a 14 percent increase in second-quarter silver production and boosted its outlook for 2012 output.

The miner now expects to produce about 9.1 million to 9.7 million silver equivalent ounces this year, up from earlier estimates of 8.8 million to 9.3 million equivalent ounces.

Most of the increase will come from the La Guitarra mine, which First Majestic acquired in its C$175 million ($172.13 million) takeover of Silvermex Resources. That deal closed on July 3.

The Vancouver-based miner, which owns numerous mines and development projects in Mexico, has also expanded milling capacity at its La Encantada and La Parilla projects.

First Majestic said it produced 2.1 million silver equivalent ounces in the quarter ended June 30, compared with 1.8 million equivalent ounces in year-earlier period.

Its shares were up 1.7 percent at C$14.79 at midday on Tuesday on the Toronto Stock Exchange even as precious metal prices fell on disappointment that U.S. Federal Reserve Chairman Ben Bernanke did not reveal new stimulus to boost economic growth.

$1=$1.017 Canadian Reporting by Julie Gordon; Editing by Peter Galloway

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