First Majestic Silver

First Majestic Silver 200x300px

Primary ticker: NYSE:AG
Stage of development: Production
Primary minerals: Silver, Gold
Project to promote: Three producing mines: San Dimas, Santa Elena, La Encantada
Project location: Mexico
Website: www.firstmajestic.com

First Majestic is a publicly traded mining company focused on silver and gold production in Mexico and the United States. The Company owns and operates the Santa Elena Silver/Gold Mine, the San Dimas Silver/Gold Mine, and the La Encantada Silver Mine as well as a portfolio of development and exploration assets, including the Jerritt Canyon Gold project located in northeastern Nevada, USA.

First Majestic owns and operates its own minting facility, First Mint LLC, and is proud to offer 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 premiums available at www.firstmint.com.

 

Cash: USD 152.2M

Debt: USD 224.6M

 

Major shareholders:
Van Eck (GDXJ & GDX) 9.7%
The Vanguard Group 3.7%
Mirae Asset Financial 2.7%
Tidal Investments 1.9%
ETF Managers Group 1.9%
Management Ownership – 2%

Financials

Management Profile

Mr. Neumeyer (President & CEO) has worked in the investment community since 1984. He began his career at a number of Canadian national brokerage firms. Mr. Neumeyer moved on to work with several publicly traded companies in the resource and technology sectors. His roles have included senior management positions and directorships responsible in areas of finance, business development, strategic planning and corporate restructuring. Mr. Neumeyer was the original and founding President of First Quantum Minerals Ltd. (T-FM). Mr. Neumeyer founded First Majestic Silver in 2002 and First Mining Gold in 2015. Mr. Neumeyer has also listed a number of companies on the Toronto Stock Exchange and as such has extensive experience dealing with the financial, regulatory, legal and accounting issues that are relevant in the investment community. Mr. Neumeyer also won the E&Y Entrepreneur of the Year Award in 2011 for the Metals & Mining category.

What is your rationale for taking part in 121 Mining Investment?

To update our shareholders and prospective investors on the progress of the Company.

What recent news would you like to highlight to investors attending?

17 October – First Majestic Produces 5.5 million AgEq Oz in Q3 2024
5 September – First Majestic Announces Agreement to Acquire Gatos Silver
30 July – High-Grade Gold and Silver Discovery at Santa Elena – Navidad

What are your key goals in 3 months, 6 months, 12 months?

3 Months:

Increase and optimize production across our three Mexico operations – San Dimas, Santa Elena, and La Encantada – while continuing exploration across our Mexico and US operations, with a focus on the Navidad discovery at our Santa Elena property and our exploration program at Jerritt Canyon in Nevada that commenced in July 2024.

6 Months:
Finalize and close any acquisitions and successfully integrate the operations into First Majestic

12 Months:
The key goals of First Majestic are to grow production profitably through the exploration, development and optimization of our existing mineral properties and acquiring new assets through smart accretive transactions, while lowering costs and investing in R&D to remain an industry leader in innovation and processing technologies. The Company’s goal is to become the world’s largest primary silver producer.

What do you see as the key risks and challenges facing your company at the moment and how are you overcoming these?

Fluctuating commodity prices, cost inflation, investor sentiment in the materials sector, strong Mexican Peso.

What do you think makes your company such a compelling investment?

Silver prices have rallied in 2024 along with the Gold price but there is more room to go. Forecasted annual silver consumption worldwide is more than 1.2 billion oz, driven by growth in industrial demand, compared to annual mine production of ~824 million oz. This will be the fourth straight year of deficit. As the world moves to a high-tech, low carbon economy we will need more technologies, like EV batteries and photovoltaic solar panels, that utilize silver.

 

First Majestic boasts industry-leading trading liquidity and leverage to silver with production guidance of more than 21 million silver equivalent ounces in 2024, with approximately 50% of revenues from silver. Furthermore, First Majestic has 200,000m of exploration planned in 2024 across our four projects, which has led to some promising discoveries such as the new high-grade gold and silver vein hosted system – the Navidad system – at our Santa Elena property. Looking forward, revenue and earnings growth is anticipated over the next few years positioning shareholders to capitalize on the rising price of silver.

What are the top 3 key investor takeaways?

1) Leading leverage to silver prices, and purity (% of revenue from silver)

2) Production trending up, costs down, active exploration program

3) First Mint – Commissioned in 2024, this 100%-owned modern minting facility in Nevada, USA is the first of its kind for any mining company. The mint allows First Majestic to sell a greater portion of its silver production directly to shareholders and bullion customers, vertically integrating the process and capturing a higher margin on silver sales.