Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Del Toro mine, in Zacatecas. Courtesy of First Majestic.
Mexico-focused First Majestic Silver (TSX:FR)(NYSE:AG) logged Tuesday a company record of 4,247,527 silver equivalent ounces produced in the fourth quarter of 2014 along with a full-year silver equivalent production record of 15.3 million ounces.
“Our fourth quarter production results show that our operations are back on track following a brief period of operational adjustments,” Keith Neumeyer, president and chief executive officer, said in a statement.
“We have made difficult but necessary changes to adapt to the current market environment and our recent cost cutting is beginning to be realized at the operations,” he added.
The Vancouver-based miner’s 2016 silver equivalent production guidance is expected to be between 15.3 million to 17.1 million ounces at all-in sustaining cash costs (AISC) — defined by the World Gold Council — between $13.96 and $15.48 per ounce. Excluding non-cash items, that range drops to between $13.50 and $14.96 per silver equivalent ounce, the company said.
