First Majestic Silver Corp. (TSX:FR,NYSE:AG) announced that Q2 2013 production from its five operating Mexico-based silver mines reached a record 3,268,117 silver equivalent ounces. That is a 55-percent increase from the same quarter the previous year.

The company continues to work on reducing its costs in this lower price environment; as of May 15, it had cut over US$30 million from its 2013 capital budget.

As quoted in the press release:

Total silver production for the quarter consisted of 2,767,966 ounces of silver, representing an increase of 44% compared to the same quarter in 2012. In addition, 5,946,539 pounds of lead and 2,898,093 pounds of zinc were produced representing an increase of 98% and 104%, respectively, compared to the same quarter of the previous year. Also, 1,995 ounces of gold were produced, representing an increase of 274% compared to the second quarter of 2012.

Keith Neumeyer, president and CEO of First Majestic, commented:

The second quarter was somewhat bitter-sweet as total production achieved a new quarterly record of over three million ounces for the first time in the Company’s history while at the same time unfortunately experiencing one of the most dramatic and violent drops in the price of silver. This low silver price environment is creating a challenging environment for many higher-cost primary producers. Our management team has responded quickly to the situation by implementing prudent cash management practices and disciplined cost reduction measures to ensure that First Majestic’s profitability and future growth plans remain intact.

Click here to read the full First Majestic Silver Corp. (TSX:FR,NYSE:AG) press release.