First Majestic

[LongDonSilver]

First Majestic (AG) is on the move this week. Up about a $1.00 (US), good 3rd Qtr results and they are holding back production looking for higher Ag pricing:

"First Majestic Silver's 3Q Gold Production More Than Doubles -- Commodity Comment
October 12, 2021
03:52 PM ETPublished October 12, 2021 03:52 PM Eastern Time
Dow Jones Newswires

First Majestic Silver Corp.'s gold production more than doubled in the third quarter from a year ago due to an increase in output of the precious metal from the company's Jerritt Canyon operation.

On the third quarter:

"The Company produced 7.3 million silver equivalent ounces consisting of 3.3 million ounces of silver and 54,525 ounces of gold, representing an increase of 1% and 17%, respectively, compared to the previous quarter primarily due to a 39% increase in gold production from the Jerritt Canyon operation in Nevada," the silver and gold miner said.

First Majestic Silver produced 3.2 million ounces of silver and 25,771 ounces of gold in the third quarter of 2020.

"At the end of the quarter, the Company held 1.4 million ounces of silver in inventory due to suppressed silver prices in the third quarter. Silver sales are anticipated to resume in the fourth quarter. Furthermore, the Company has not withheld sales of any of its gold production."

President and Chief Executive Keith Neumeyer said, "Due to the relative weakness in the silver price throughout the quarter, we decided to suspend silver sales for the third time in the Company's history in an attempt to realize higher prices."

"Looking ahead, we anticipate higher grades to drive production growth at San Dimas, Jerritt Canyon and Santa Elena in the fourth quarter and into 2022," Mr. Neumeyer said.

On the San Dimas Silver/Gold Mine:

"San Dimas produced 1,888,371 ounces of silver and 20,767 ounces of gold representing an increase of 1% and 8%, respectively, compared to the prior quarter for total production of 3,422,032 silver equivalent ounces," First Majestic Silver said.

"The mill processed a total of 214,205 tonnes with average silver and gold grades of 289 g/t and 3.14 g/t, respectively.

"Silver and gold grades are expected to increase in the fourth quarter as a major high-grade area within the Jessica vein of the Central Block was brought online in September."

"Silver and gold recoveries during the quarter averaged 95% and 96%, respectively."

On the Jerritt Canyon Gold Mine:

"During the quarter, Jerritt Canyon produced 26,145 ounces of gold, representing a 39% increase compared to the prior quarter. The increase was primarily due to achieving a full quarter of production under the Company's ownership as well as improved underground mine and plant production rates."

"The mill processed a total of 230,415 tonnes with an average gold grade and recovery of 4.19 g/t and 84%, respectively. Increased ore development rates and processing of lower ore grade from surface material continued during the quarter which resulted in higher tonnage with lower average ore grades processed in the plant."

On the Santa Elena Silver/Gold Mine:

"During the quarter, Santa Elena produced 508,641 ounces of silver and 7,498 ounces of gold representing a decrease of 10% and 11%, respectively, compared to the prior quarter for a total production of 1,061,657 silver equivalent ounces."

"The mill processed a total of 234,862 tonnes consisting of 160,012 tonnes of underground ore and 74,850 tonnes from the existing heap leach pad. Underground production rates were slightly lower than budget due to the loss of the main ventilation fan in August which restricted mining in the 290 level of the Main vein. A new ventilation fan was successfully installed in September and underground rates returned to normal levels."

"Silver and gold grades from underground ore averaged 92 g/t and 1.23 g/t, respectively, while silver and gold grades from the heap leach pad averaged 37 g/t and 0.63 g/t, respectively."

"Silver and gold recoveries averaged 91% and 96%, respectively, during the quarter."

On the La Encantada Silver Mine:

"During the quarter, La Encantada produced 905,074 ounces of silver, representing an 8% increase in ounces compared to the prior quarter. The increase was primarily due to a 9% increase in tonnes processed."

"The mill processed a total of 263,645 tonnes with an average silver grade and recovery of 134 g/t and 80%, respectively." " - Dow Jones

[yellowsnow]

with rising energy prices, miners have no choice but to raise price or shut in high cost production.
High energy prices raises all commodity boats.

[LongDonSilver]

First Majestic has been pushing other producers of silver to also hold off selling their output until the price of silver increases. So far only a few small producers have been willing (able) to follow the Majestic request. You can find many videos going back several years on Youtube of 1st Majestic's CEO talking about this. I've always thought the chance of this working was slim and none, but I've been wrong before.

[LongDonSilver]

"First Majestic Reports Third Quarter Financial Results and Quarterly Dividend Payment

Vancouver, BC, Canada - FIRST MAJESTIC SILVER CORP. (AG: NYSE; FR: TSX) (the "Company" or “First Majestic”) is pleased to announce the unaudited interim consolidated financial results of the Company for the third quarter ended September 30, 2021. The full version of the financial statements and the management discussion and analysis can be viewed on the Company's website at www.firstmajestic.com or on SEDAR at www.sedar.com and on EDGAR at www.sec.gov. All amounts are in U.S. dollars unless stated otherwise.

THIRD QUARTER 2021 HIGHLIGHTS
(compared to Q3 2020)

Generated revenues of $124.6 million, representing a 1% decrease due to the decision to withhold 1.4 million ounces of silver in inventory in an effort to maximize future profits. Had the Company sold these ounces at the end of the quarter it would have generated approximately $33.2 million in additional revenue using the quarterly average realized price of $23.10 per ounce
Cash costs increased to $14.09 per AgEq ounce due to the addition of Jerritt Canyon
All-in sustaining costs (“AISC”) increased to $19.93 per AgEq ounce primarily due to an increase in sustaining capital costs related to the $12.3 million Tailings Storage Facility 2 (“TSF2”) lift project at Jerritt Canyon
Mine operating earnings of $3.5 million during the quarter, compared to earnings of $48.0 million in Q3 2020, the decrease in earnings was primarily attributed to lower silver ounces sold due to the holdback of 1.4 million ounces of silver along with higher costs attributed to the first full quarter of operations at Jerritt Canyon
Net earnings of ($18.4) million attributed to the reduction in revenue as a result of withholding 1.4 million ounces of silver from sales at quarter end
Adjusted EPS of ($0.07) after excluding non-cash and non-recurring items
Cash flow per share of $0.09 (non-GAAP)
Cash and cash equivalents at September 30, 2021 were $192.8 million with strong working capital of $262.5 million
Declared a third quarter cash dividend payment of $0.0049 per common share for shareholders of record as of the close of business on November 17, 2021 which will be distributed on or about November 30, 2021

“Our decision to inventory a significant amount of silver during the quarter obviously impacted our third quarter financial results but those additional revenues and cash flows are expected to be realized in the coming quarters as prices improve,” stated Keith Neumeyer, President and CEO. “During the quarter, we also invested in two significant capital projects at Jerritt Canyon which temporarily increased our all-in sustaining costs at the site. With the majority of these investments now complete, we expect a reduction in costs starting in the fourth quarter driven by higher production, reduced capital costs and continued improvements in operating efficiencies. At San Dimas, AISC costs decreased by 19% to $11.58 per ounce due to higher production and higher consumption rates of low-cost energy from our hydro dam when compared to diesel or grid power. At Santa Elena, the mill is preparing to begin test batching low-grade stockpiles from the Ermitaño deposit which is expected to further drive down costs and increase overall production. Finally, the Company declared its third quarter dividend which was also impacted by the lower quarterly revenues due to the withholding of the 1.4 million unsold ounces of silver, however, the upcoming future quarter dividends are expected to increase as this large inventory is divested.”'

[LongDonSilver]

Note: the following is a partial report from First Majestic, see their website for full report'

"First Majestic Produces New Quarterly Record of 8.6M Silver Eqv. Oz in Q4 2021 and Achieves FY2021 Guidance with New Annual Production Record of 26.9M Silver Eqv. Oz; Announces 2022 Guidance and Today’s Conference Call Details; Appoints Interim CFO

Vancouver, BC, Canada - First Majestic Silver Corp. ("First Majestic" or the "Company") is pleased to announce fourth quarter production reached a new quarterly record of 8.6 million silver equivalent ounces, consisting of 3.4 million silver ounces and 67,411 gold ounces, representing a 17% increase compared to the prior quarter. Additionally, full year 2021 production reached a new Company record of 26.9 million silver equivalent ounces, consisting of 12.8 million silver ounces and 192,353 gold ounces, or a 32% increase over 2020.

The Company is also pleased to announce its 2022 guidance of producing between 32.2 to 35.8 million silver equivalent ounces, consisting of 12.2 to 13.5 million ounces of silver and 258,000 to 288,000 ounces of gold, with AISC cost guidance of between $16.79 to $18.06 per silver equivalent ounce.

Q4 2021 HIGHLIGHTS

Total production reached 8.6 million silver equivalent ounces, representing a 17% increase over the prior quarter. Silver production reached 3.4 million ounces, representing a 2% increase over the prior quarter and the Company’s third highest quarterly silver production. Gold production reached 67,411 ounces, representing a 24% increase from the prior quarter and the Company’s highest quarterly gold production.
San Dimas produced a record 4.0 million silver equivalent ounces, consisting of 2.2 million ounces of silver and 23,795 ounces of gold, representing a 17% increase in total production from the prior quarter and the highest quarterly production since acquiring the mine in 2018.
In November, the Company began test batching surface stockpiles from Ermitaño at the Santa Elena processing plant and in December declared initial production, ahead of schedule, which resulted in a new quarterly production record at Santa Elena. A total of 2.0 million silver equivalent ounces were produced in the quarter consisting of 426,870 ounces of silver and 19,810 ounces of gold. This represents a significant 84% increase in total production from the prior quarter and the highest quarterly production since acquiring the mine in 2015.
At the end of the fourth quarter, 21 exploration drill rigs were active across the Company’s mines consisting of seven rigs at San Dimas, nine rigs at Jerritt Canyon, three rigs at Santa Elena and two rigs at La Encantada.

FY 2021 HIGHLIGHTS

Silver production in 2021 reached 12.8 million ounces (compared to 11.6 million ounces in 2020) which slightly missed the lower end of the Company’s revised guidance range of producing between 13.0 to 13.8 million ounces of silver.
Gold production in 2021 reached 192,353 ounces (compared to 100,081 in 2020) achieving the higher end of the Company’s revised guidance range of producing between 181,000 to 194,000 ounces. This strong performance was primarily due to the processing of Ermitaño ore at the Santa Elena plant and strong silver and gold grades at San Dimas in the fourth quarter.
Successfully completed the acquisition of the Jerritt Canyon Gold Mine in Nevada, USA adding a fourth operating mine to the Company’s portfolio.
After six years since its initial discovery, the Company successfully began underground ore production from the Ermitaño mine near Santa Elena in the fourth quarter of 2021. This important new mine is expected to significantly increase production and reduce costs at Santa Elena as it ramps up throughout 2022.
Successfully converted Santa Elena from diesel power to low-cost liquid natural gas (“LNG”) with the construction of the new 12.4 MW LNG facility.
Sold a record 349,278 ounces of silver bullion, or approximately 3% of the Company’s silver production, on First Majestic’s online bullion store at an average silver price of $31.21 per ounce for total proceeds of $10.9 million.

“First Majestic ended the year with its strongest production quarter in the Company’s 20-year history,” said Keith Neumeyer, President & CEO. “During the fourth quarter, production at our San Dimas and Santa Elena mines exceeded expectations and reached new records due to a significant improvement in productivity and in silver and gold grades. Consolidated gold production also reached a new record of 192,353 ounces in 2021 due to the acquisition of the Jerritt Canyon mine and the start of production and first pour from the Ermitaño mine at Santa Elena in November.”

Mr. Neumeyer continues, “In 2022, total production is expected to increase between 20% to 33% compared to 2021 primarily due to higher production expected at San Dimas, Santa Elena and a full year of production at Jerritt Canyon. In addition, we are planning to invest significantly in exploration and underground development in 2022 in order to prepare a clear path to achieving our goal of producing over 40 million silver equivalent ounces by 2024.” "

[LongDonSilver]

" First Majestic Produces 7.6M AgEq Oz in Q4 2022 and a Record 31.3M AgEq Oz in 2022; Annual Retail Silver Bullion Sales Increase 27% to New Record; Announces 2023 Production and Cost Guidance and Conference Call Details

Vancouver, BC, Canada - First Majestic Silver Corp. ("First Majestic" or the "Company") announces that total production in the fourth quarter of 2022 from the Company’s four producing operations, the San Dimas Silver/Gold Mine, the Jerritt Canyon Gold Mine, the Santa Elena Silver/Gold Mine and the La Encantada Silver Mine reached 7.6 million silver equivalent (“AgEq”) ounces, consisting of 2.4 million silver ounces and 63,039 gold ounces. Total production for the full year of 2022 reached a new Company record of 31.3 million AgEq ounces, consisting of 10.5 million silver ounces and 248,394 gold ounces, or a 16% increase compared to 2021.

In 2023, the Company is expecting to increase production to a new Company record of between 33.2 to 37.1 million AgEq ounces, consisting of 10.0 to 11.1 million ounces of silver and 277,000 to 310,000 ounces of gold, with an all-in sustaining cost (“AISC”) guidance of between $18.47 to $19.72 per AgEq ounce. Based on the midpoint of the guidance range the Company expects AgEq ounces to increase 12% when compared to 2022.

Q4 2022 HIGHLIGHTS

Total Production Decreased by 14% Q/Q: The Company produced 7.6 million AgEq ounces representing a 14% decrease when compared to the record of 8.8 million AgEq ounces in the previous quarter. The decrease was primarily due to lower production at San Dimas and Santa Elena, slightly offset by higher gold production at Jerritt Canyon and higher silver production at La Encantada.
Transitioning to 100% Ermitaño Ores at Santa Elena: Continued strong metal production from the Ermitaño mine enabled Santa Elena to produce 2.3 million AgEq ounces in the fourth quarter, or 16% below the record 2.7 million AgEq in the prior quarter. In 2023, Santa Elena is expected to produce between 7.8 to 8.7 million AgEq ounces as it transitions to full production from Ermitaño while exploration continues at the recently discovered Silvana vein within the Santa Elena mine.

Significant Production Growth Geared Up at Jerritt Canyon in 2023: The secondary escapeway in the West Generator mine was completed in November allowing for improved ore production although a severe cold weather disturbance in December limited haulage and deliveries to the plant. With the additional ramp up of Smith Zone 10 and the restart of the Saval II mine, gold production at Jerritt Canyon is expected to be between 119,000 to 133,000 ounces in 2023, representing a mid-point increase of 74% compared to 2022.
Santa Elena’s Dual-Circuit Completed: The Company successfully completed the commissioning of the dual-circuit processing plant at Santa Elena during the quarter which includes the new 3,000 tonne per day (“tpd”) filter press, designed to improve the leaching performance and reduce operating costs.
10 Drill Rigs Active: The Company concluded its 2022 exploration program during the quarter by completing a total of 16,086 metres of drilling across the Company’s mines. Throughout the quarter a total of 10 drill rigs were active consisting of four rigs at San Dimas, two rigs at Jerritt Canyon, three rigs at Santa Elena and one rig at La Encantada.

FY 2022 HIGHLIGHTS

Silver production in 2022 reached 10.5 million ounces (compared to 12.8 million ounces in 2021) which missed the lower end of the Company’s revised guidance range of between 11.2 to 11.9 million ounces of silver primarily due to lower than expected silver grades at San Dimas and prioritizing higher gold grade ores from the Ermitaño mine at Santa Elena.
Gold production in 2022 reached a new Company record of 248,394 ounces (compared to 192,353 in 2021) but slightly missed the lower end of the Company’s revised guidance range of between 256,000 to 273,000 ounces primarily due to lower than expected gold grades at Jerritt Canyon.
Santa Elena produced a new annual record of 9.1 million AgEq oz in 2022, representing an 81% increase compared to 2021.
The Santa Elena operation was awarded the prestigious “Silver Helmet Award” in the category of “Underground Mining of More Than 500 Workers” by the Mining Chamber of Mexico for its outstanding performance in occupational safety and health. The distinguished annual award of excellence is only awarded to a select handful of mining operations in Mexico.

Successfully expanded Santa Elena’s liquid natural gas (“LNG”) powerplant from 12 MW to 24 MW to supply low-cost, clean power to the Ermitaño mine and the recently completed dual-circuit plant.

Sold a record 444,576 ounces of silver bullion, representing a 27% increase compared to 2021 and approximately 4.2% of the Company’s silver production, on First Majestic’s online bullion store at an average silver price of $26.20 per ounce for total proceeds of $11.6 million.

“The Company reached a new annual production record of 31.3 million AgEq ounces in 2022 primarily due to the significant increase in production from the Ermitaño mine at Santa Elena,” said Keith Neumeyer, President & CEO. “Santa Elena was the bright spot in our portfolio in 2022 as we brought the high-grade core vein online in the second half of 2022 which increased production by 81% compared to 2021. At Jerritt Canyon, we unfortunately ended the year with extremely challenging weather conditions as northern Nevada experienced a severe cold spell and double the normal snowfall amounts which impacted ore deliveries from SSX and West Generator. Our San Dimas and La Encantada mines in Mexico delivered solid results as expected.”

Mr. Neumeyer continues, “For 2023, significant improvements are expected at Jerritt Canyon where gold production is projected to nearly double along with lower AISC when compared to 2022. Our Mexican operations, which are generating healthy margins at current prices, are estimated to generate 70% of our total production in 2023 with AISC of approximately $17 per oz.”

[LongDonSilver]

" First Majestic Reports High-Grade Exploration Results at San Dimas, Santa Elena and Jerritt Canyon

Vancouver, BC, Canada – First Majestic Silver Corp. (AG: NYSE; FR: TSX) (the "Company" or “First Majestic”) is pleased to announce positive drilling results from its ongoing exploration programs at San Dimas, Santa Elena, and Jerritt Canyon. The ongoing exploration programs were designed to focus on adding new mineral resources (“Resources”), upgrading Resources to mineral reserves (“Reserves”), and further defining mineralization near current underground infrastructure. In the first half of 2023, the Company had up to 19 active drill rigs and completed a total of 78,973 metres of exploration drilling across its portfolio of mines and projects in Mexico and the United States.

“We are very encouraged with the high-grade exploration results that have been achieved to date,” stated Keith Neumeyer, President & CEO of First Majestic. “The recent drilling has accomplished multiple goals from confirming new geologically prospective areas to achieving strong intercepts for Resource to Reserve conversion. Results from the Elia and Santa Teresa veins at San Dimas highlight the potential to add new, high-grade ounces within this past-producing area. At Santa Elena, the results from the Ermitaño vein are in many cases better than expected and will provide a solid foundation for Reserve replacement. Finally, successful drilling at the Javelin target at Jerritt Canyon has identified what appears to be another large, mineralized gold pod near underground infrastructure and further showcases the strong exploration potential in the asset.”

DRILLING HIGHLIGHTS

Select highlights from the Company’s ongoing exploration program include the following high-grade intercepts:

At San Dimas,

8.38 g/t Au and 763 g/t Ag (1,434 g/t AgEq) over 3.88m (EL23-246)
14.98 g/t Au and 89 g/t Ag (1,287 g/t AgEq) over 4.12m (ST23-012)
5.41 g/t Au and 883 g/t Ag (1,315 g/t AgEq) over 5.69m (PE23-187)

At Santa Elena,

4.27 g/t Au & 127 g/t Ag (468 g/t AgEq) over 13.3m (EWUG-23-001)
5.98 g/t Au & 222 g/t Ag (700 g/t AgEq) over 15.55m (EWUG-23-002)
13.73 g/t Au & 150 g/t Ag (1,248 g/t AgEq) over 6.42m (EWUG-23-003)

At Jerritt Canyon,

5.61 g/t Au over 61.2m (SMI-D04-EXP22-1094)
4.74 g/t Au over 24.4m (SMI-230004)
8.04 g/t Au over 12.2m (SMI-230010)"



For more details go to their website.

[LongDonSilver]

"Vancouver, BC, Canada – First Majestic Silver Corp. (AG: NYSE; FR: TSX) (the “Company” or “First Majestic”) is pleased to announce that it has closed its previously announced transaction to sell its 100% owned past producing La Parrilla Silver Mine located in the state of Durango, Mexico to Golden Tag Resources Ltd. (“Golden Tag”) (TSX Venture: GOG) following the receipt of approval from the Comisión Federal de Competencia Económica (COFECE) and the TSX Venture Exchange as well as the completion of other customary closing conditions. In consideration of the sale, First Majestic received 143,673,684 common shares of Golden Tag at a deemed price of CDN$0.19 per common share for an approximate value of CDN$27.0 million or US$20.0 million (the “Consideration Shares”). First Majestic will also receive up to US$13.5 million (see terms below) in the form of three milestone payments in either cash or shares in Golden Tag with the share price and number of shares to be determined upon the anniversary date (where applicable).
Milestone: Agreement Terms: (in the amount of):
Repayment Payable upon the earlier of (1) 18 months following the closing of the transaction; and (2) receipt of certain approvals from Mexico US$2,700,000 Cash
First Deferred Payment Payable upon receipt of a written resource estimate prepared by a qualified person, of (i) 5 million ounces or more of AgEq reserves on La Parrilla, or (ii) 22 million ounces of AgEq measured and indicated resources on La Parrilla. US$5,750,000 Cash or Shares
Second Deferred Payment Payable upon receipt of a written resource estimate prepared by a qualified person, of 12.5 million ounces of AgEq measured and indicated resources in a new zone on La Parrilla, in respect of which no mineral reserves or resources have been identified. US$5,050,000 Cash or Shares

In addition, First Majestic participated in Golden Tag's offering of subscription receipts (the "Subscription Receipts") and purchased 18,009,000 Subscription Receipts at a price of CDN$0.20 per Subscription Receipt which, in accordance with terms, have now converted into 18,009,000 Golden Tag common shares and 9,004,500 common share purchase warrants (the "Warrants"). Each Warrant is exercisable for one additional Golden Tag common share until August 14, 2026 at a price of CDN$0.34.

The following additional disclosure is being provided under the early warning provisions of Canadian securities legislation.

Following the closing of the transaction and conversion of the Subscription Receipts, First Majestic now holds 161,682,684 Golden Tag common shares, or approximately 40.8% of the issued and outstanding Golden Tag common shares, and 9,004,500 Warrants. Assuming the Warrants were exercised, First Majestic would hold an aggregate of 170,687,184 Golden Tag common shares or approximately 42.2% of the issued and outstanding Golden Tag common shares on a partially diluted basis.

Prior to completion of the transaction and acquisition of the Subscription Receipts, First Majestic did not hold any securities of Golden Tag. The securities of Golden Tag were acquired by First Majestic for general investment purposes. Depending on various factors, including, without limitation, market conditions, general economic and industry conditions and/or any other factors that First Majestic may deem relevant, First Majestic may take such actions with respect to their investment in Golden Tag as it deems appropriate including, without limitation, acquiring, selling or distributing the common shares to shareholders of First Majestic or otherwise disposing of securities of Golden Tag from time to time.

First Majestic has been granted participation rights to maintain its pro-rata interest in Golden Tag (to a maximum of 19.9%) in any future equity issuances of Golden Tag, subject to customary exceptions.

The Consideration Shares are subject to the following contractual resale restrictions, in addition to applicable securities laws resale restrictions.

Release Dates Proportion of Total Common Shares to be Released
February 14, 2024 (6 months from closing) 25%
August 14, 2024 (12 months from closing) 25%
February 14, 2025 (18 months from closing) 25%
August 14, 2025 (24 months from closing) 25%

Under the terms of the agreement with Golden Tag, First Majestic may distribute all common shares in excess of 19.9% of the issued and outstanding Golden Tag common shares pro-rata to First Majestic’s shareholders (the “Excess Shares”). The contractual resale restrictions above will not apply to the Excess Shares and are subject to customary carve-outs in the event of a takeover bid or merger or acquisition transaction involving the common shares."

[digbird]

Thanks LongDon for the update.

Been considering taking a stake in First Majestic instead of buying the actual silver bars as the premiums just won't come down...at least up here.

I own some First Majestic 5 oz. bars which are very hard to find these days. Bought them through the company website.

Yes, the CEO can get carried away every now and again with his views, but it is a solid mining company.

[LongDonSilver]

AFAIK, no bars from the following company, but if you also buy stock, then look at AYASF (AYA.TO) since it has sold off at the moment like most of the mining companies. They are currently max'ed out at about 2 million ounces/year for 2023, but are bringing on a 3rd plant in 2024 and plan on increasing to about 8 million Ag ounces/year. Profits do depend upon POS and if it goes to the moon then IMHO this will be a good one to hold. Plus they have other properties in the pipeline yet to produce Ag, Au and/or other metals which are for future development. No options available in the USA, don't know about elsewhere. DYODD as all things are risky.

see: https://ayagoldsilver.com/