Good point 10S. SMF

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Wednesday February 26, 2014 1:35 PM

First Majestic Silver Corp. (TSX:FR) reports a net loss of $81.2 million for the fourth quarter, down from net earnings of $22.4 million in the fourth quarter of 2012, as well as a loss of $38.2 million in 2013, compared to net earnings of $88.9 million in 2012. Impairment charges were absorbed in the fourth quarter: $38.8 million to deferred income tax liabilities as a result of the recently enacted Mexican tax reforms, $24.6 million of goodwill and $4.2 million related to the properties acquired in the Silvermex Resources deal. "Last year was a big wake-up call to all mining companies due to the extreme price volatility throughout the metals market,” says Keith Neumeyer, president and chief executive officer of First Majestic. “However, I'm proud to say First Majestic's team took quick action to reduce capital costs and delivered one of its best performances over the company's 10-year history.” The company saw silver equivalent production rise 33% quarter-on-quarter to 3.4 million ounces while full-year silver equivalent production totaled 12.8 million ounces, a 40% increase year-on-year. "Having successfully commissioned the new Del Toro operation in 2013, which became our fifth producing silver mine in Mexico, First Majestic delivered record annual production and achieved the milestone of producing over 10 million ounces of pure silver in a single year all while maintaining our low cost profile,” Neumeyer says. The company also points out by reaching the 10 million silver ounce threshold, they step into senior producer territory. Revenues dipped to $59 million in the fourth quarter of 2013, a decrease of $12 million or 17% compared to $71 million quarter-on-quarter, while revenues in 2013 were up at $251.3 million, an increase of $4.1 million compared to $247.2 million year-on-year. Record production in 2013 resulted in a 41% increase in payable equivalent silver ounces sold, however, the increase in ounces sold was offset by a 26% decrease in average realized silver price per ounce compared to 2012, the company says.