08/13/2013 07:50 EDT | Updated 10/13/2013 05:12 EDT

First Majestic takes profit, revenue hit from suspension of silver sales

VANCOUVER - First Majestic Silver Corp. (TSX:FR) says its second-quarter net income was down 99 per cent from the same time last year, due to the suspension of silver sales amid a sharp drop in market prices for the metal.

The Vancouver-based company's net income fell to $200,000 from $15.3 million.

The profit would have been about $7.6 million higher, or six cents per share, without the sales curtailment, First Majestic said.

As it was, it had zero cents per share of net income or adjusted earnings of seven cents per share, after excluding non-cash and non-recurring items.

Revenue was $48.4 million, down 12 per cent.

"Despite the weak silver price environment, First Majestic achieved a new quarterly record in silver production and continues to demonstrate its commitment to maximizing shareholder value," said Keith Neumeyer, First Majestic's CEO and president.

"The silver price fell 31 per cent during the second quarter which is equal to the largest quarterly drop during the 2008 financial crisis and the third-largest quarterly drop in the past 50 years.

"As such, management decided to suspend a portion of silver sales to await a rebound in prices. While the suspension had a negative impact on this quarter's revenues and earnings, we are confident the silver price will revert back to the mean in the near future."