August 16, 2010 / 11:19 AM / 8 years ago

UPDATE 1-First Majestic Q2 profit rises on higher silver prices

* Q2 EPS C$0.10 vs C$0.01 yr-ago

* Net revenue up 122 pct

* Silver sales up 51 pct to 1.6 mln oz

* Production up 73 pct

Aug 16 (Reuters) - First Majestic Silver Corp (FR.TO) reported a nearly nine-fold increase in quarterly profit, as the company, which operates silver properties in Mexico, was helped by higher precious metal prices and improved production at its mines.

For the second quarter ended June 30, the company earned C$8.9 million, or 10 Canadian cents a share, compared with net income of C$1.0 million, or 1 Canadian cent a share, a year ago.

The company’s consolidated gross revenue, prior to its smelting and refining charges and metal deductions, more than doubled to C$31.8 million.

Net revenue rose 122 percent to C$29.0 million.

First Majestic said its silver sales rose 51 percent to 1,623,844 silver equivalent ounces at an average price of $18.68 per ounce, compared with $12.60 per ounce a year ago.

The company said its smelting and refining charges and metal deductions fell during the quarter, as its new cyanidation plant at La Encantada in Mexico was helped by a shift in production mix for the silver dore bars.

Shares of the Vancouver, British Columbia-based company, which have gained over 38 percent since late March, closed at C$4.22 Friday on the Toronto Stock Exchange. (Reporting by Ashutosh Joshi in Bangalore; Editing by Roshni Menon)

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