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Actionable news in AG: FIRST MAJESTIC SILVER CORP,

First Majestic Produces a Record 18.7M Silver Eqv. Oz in 2016 (4.4M Silver Eqv. Oz in Q4); Announces 2017 Production Outlook and Cost Guidance

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan 17, 2017) - First Majestic Silver Corp. ("First Majestic" or the "Company") (FMV.F)(FR.TO)(AG.MX)(AG.MX) is pleased to announce the Company's fourth quarter and full year 2016 production results, as well as production and cost guidance for 2017. Production costs are scheduled to be released on February 22, 2017 with the Company's full-year and fourth quarter 2016 financial results.

Total production in 2016 reached a new record of 18.7 million equivalent ounces of silver, representing a 16% increase over 2015, consisting of 11.9 million ounces of silver, 62,436 ounces of gold, 33.2 million pounds of lead and 10.6 million pounds of zinc.

Production in the fourth quarter of 2016 totaled 4.4 million equivalent ounces of silver consisting of 2.8 million ounces of silver, 14,743 ounces of gold, 7.7 million pounds of lead and 1.2 million pounds of zinc.

As of December 31, 2016, the Company held US$129.0 million of cash in its treasury.

"2016 was an extremely volatile year with silver prices increasing from $13 per ounce in January to $21 per ounce in July before settling around $16 per ounce at year end," said Keith Neumeyer, President & CEO. "This extreme volatility continued to drive our cost reduction strategy by adopting best practice policies throughout all areas of the business. Improvements in our operating procedures and the continuous search and use of new technologies allowed us to achieve new production records in 2016. Our record ending balance of cash and our increased investments in exploration and development in 2017 is expected to result in significant silver production growth in 2018 and beyond."

Production Details Table:

Q4
2016
Q3
2016
Q/Q
Change

Consolidated Production Results
FY
2016
FY
2015
Y/Y
Change
844,155 838,233 1% Ore processed/tonnes milled 3,270,162 2,852,655 15%
4,380,477 4,524,619 -3% Total production - ounces of silver equivalent 18,669,800 16,086,271 16%
2,819,708 3,114,627 -9% Total silver ounces produced 11,853,438 11,142,109 6%
137 150 -9% Silver grade (g/t) 149 168 -12%
76 77 -2% Silver recovery (%) 76 72 5%
14,743 14,452 2% Gold ounces produced 62,436 25,467 145%
7,684,876 8,038,206 -4% Pounds of lead produced 33,185,745 40,149,170 -17%
1,190,713 1,519,143 -22% Pounds of zinc produced 10,577,967 17,524,223 -40%

Quarterly Operational Review:

Total ore processed during the quarter at the Company's six operating silver mines: Santa Elena, La Encantada, La Parrilla, Del Toro, San Martin and La Guitarra, amounted to 844,155 tonnes which is consistent compared to the previous quarter.

Silver grades in the quarter averaged 137 g/t compared to 150 g/t in the previous quarter. The slight decrease in silver grades is primarily due to lower grades at Del Toro in the month of October due to limited production at the high grade Dolores mine. As a result, the Company increased production rates at the San Juan mine to offset the decrease in ore production from Dolores. Beginning in November, production at the Dolores mine returned to normal operating levels.

Combined silver recoveries averaged 76%, relatively unchanged compared to the previous quarter's average of 77%.

The Company's underground development in the fourth quarter consisted of 14,918 metres, reflecting a 17% increase compared to 12,764 metres completed in the previous quarter. The Company also completed 36,351 metres of diamond drilling in the quarter, representing a slight increase compared to 36,290 metres in the prior quarter. A substantial portion of the current drilling and development is for the purpose of updating Mineral Reserves and Resources which the Company expects to release in late March 2017. In addition, updated NI 43-101 Technical Reports for San Martin, Del Toro and La Parrilla are expected to be released in the first half of 2017.

Mine by Mine Quarterly Production Table:

...
Mine Ore
Processed
Tonnes
per Day
Silver
Grade
(g/t)
Silver
Recovery
%
Silver Oz
Produced
Gold Oz
Produced
Pounds
of Lead
Pounds
of Zinc
Equivalent
Silver
Ounces
Santa Elena 257,771 2,802 89 89% 660,207 11,430 - - 1,470,612
La Encantada 235,039 2,555 132

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