First Majestic Silver produces 7.22 million ounces AgEq in Q1
First Majestic's San Dimas Mine on the border of Durango and Sinaloa states, Mexico. Source: First Majestic Silver Corp.
First Majestic Silver Corp.‘s [FR-TSX; AG-NYSE; FMV-FSE] total production in the first quarter of 2022 from the company’s four producing operations – the San Dimas silver/gold mine in Mexico, the Jerritt Canyon gold mine in Nevada, the Santa Elena silver/gold mine and the La Encantada silver mines in Mexico – reached 7.2 million silver equivalent ounces (AgEq), consisting of 2.6 million ounces of silver and 58,892 ounces of gold. The company’s financial results for the first quarter of 2022 are scheduled to be released on May 12, 2022.
The company produced 7.2 million silver equivalent ounces consisting of 2.6 million ounces of silver and 58,892 ounces of gold. Total production increased 59% when compared to the first quarter of 2021 primarily due to the acquisition of Jerritt Canyon. However, compared to a record breaking Q4, production decreased by 16% due to high absenteeism related to an increase in COVID-19 cases in January and February which resulted in lower processed tonnes across all Mexican operating units.
During the quarter, the company processed 114,190 tonnes of ore from the Ermitano mine at the Santa Elena processing plant, representing a 10% increase compared to the prior quarter. The higher volumes were the result of strong underground development rates as the mine continues its planned ramp up in 2022. The Company anticipates higher production rates as new production stopes are prepared and brought into production by year end.
First Majestic began the construction of the LNG power plant expansion project and powerline at Santa Elena to provide low-cost, clean energy to the Ermitano mine. The Company is planning to install four additional LNG generators to increase its power generation capacity to approximately 24 MW from the current 14 MW. In addition, construction of the new powerline to connect the LNG plant to Ermitano began during the quarter.
The Mexican Center for Philanthropy (CEMEFI) and the Alliance for Corporate Social Responsibility (AliaRSE) has awarded First Majestic’s San Dimas, Santa Elena and La Encantada mining units the Socially Responsible Business Distinction for 2022 (Distintivo Empressa Socialmente Responsible 2022). This annual award of distinction was accomplished after having demonstrated continued responsibility, transparency and sustainability at its operations in Mexico.
The company completed a total of 75,224 metres of exploration drilling across the Company’s mines during the quarter. Throughout the quarter, a total of 29 exploration drill rigs were active consisting of 11 rigs at San Dimas, 11 rigs at Jerritt Canyon, five rigs at Santa Elena and two rigs at La Encantada.
| “Our new Ermitano mine at Santa Elena has definitely become the highlight for the business in the past two quarters,” said Keith Neumeyer, President and CEO. “Having just completed its first full quarter in production, we continue to anticipate additional growth at Ermitano as the mine ramps up to higher throughput levels over the next few quarters. In addition, we are in the process of converting Ermitano over to LNG power which is expected to reduce energy costs and lower emissions by the end of 2022. The Jerritt Canyon Gold mine, our latest acquisition, has been receiving a lot of attention over the past year which has shown steady improvements in mining, exploration and processing. Furthermore, many of these efforts are expected to begin showing positive results in the second half of 2022 as we bring two past producing underground areas, West Generator and Saval II, back into production.” |
First Majestic offers a portion of its silver production for sale to the public. Bars, ingots, coins and medallions are available for purchase online at its Bullion Store at some of the lowest possible premiums.