First Majestic Silver launches “First Mint” in Nevada

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First Majestic Silver Corp. [FR-TSX, AG-NYSE, FMV-Frankfurt] on Tuesday announced the completed commissioning and the start of bullion sales from its 100%-owned and operated “First Mint” minting facility in Nevada.

At the end of 2023, First Majestic said it held 300,000 silver bullion ounces in finished goods inventory, material that is dedicated to build an initial inventory balance for the minting facility. The fair value of this inventory as of December 31, 2023 was $7.1 million.

First Mint vertically integrates a manufacturing plant for investment-grade fine silver bullion into the First Majestic portfolio. The company said the eco-friendly and high efficiency production line allows the mint to produce over 10% of the company’s current silver production, coming from the Mexican operations.

Plans are currently under way to expand the operation by adding additional equipment and personnel as required. In its press release Tuesday, First Majestic noted that “as production ramps up, investors can expect the mint to provide a steady supply of cast bars and one-ounce silver rounds, with additional capacity to service third-party projects.’’

The company went on to say that the inaugural production run of bullion bars will be commemorated and sold as collectibles, complete with certificates and authenticity and exclusive packaging. “These limited edition “First Strike” products will include 1,000 one-kilogram bars, 2,500 10-ounce bars, and 5,000 five-ounce bars.

First Majestic is a Mexico and United States-focused mining company. It owns and operates the San Dimas silver-gold mine, the Santa Elena silver-gold mine and the Le Encantada silver mine as well as a portfolio of development and exploration projects, including the Jerritt Canyon gold project in Nevada. Production from these mines amounted to 26.9 million silver equivalent (AgEq) ounces in 2023, consisting of 10.3 million ounces of silver and 198,921 ounces of gold.

Revenue in 2023 was $573.8 million, compared to $624.2 million in 2022. The drop in revenue was mainly due to the temporary suspension of mining activity at Jerritt Canyon in March, 2023.

The decision to suspend operations at Jerritt Canyon was attributed to a combination of ongoing challenges at the mine, which include contractor inefficiencies, inflationary cost pressures, lower than expected head grades and multiple extreme weather events affecting northern Nevada.

Jerritt Canyon is located in Elko County, Nevada and accounted for about 30% of the company’s silver equivalent production. As a result of the suspension, the company realized a 10% decrease in the number of payable AgEq ounces sold.

First Majestic shares ease 0.83% or $0.06 to $7.18 on Tuesday. The shares are currently trading in a 52-week range of $10.79 and $5.67.

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