First Majestic Produces 21.7Moz AgEq in 2024

First Majestic Silver announced its production results for 4Q24 and the full year. The company produced a total of 5.7Moz of silver equivalent (AgEq) in the quarter. The company considers the performance of its main assets to have proven continuous improvement, allowing it to meet its annual production guidance.

First Majestic’s quarterly production comprises 2.4Moz of silver and 39,506oz. This marked a 4% increase in total production compared to 3Q24, driven by a 20% rise in silver production. The company reported production improvements across all three of its mines: Santa Elena in Sonora, San Dimas in Durango, and La Encantada in Coahuila. 

First Majestic reached 21.7Moz AgEq for the full year 2024, which met the company's revised production guidance of 21.4Moz to 22.6Moz AgEq. This total included 8.4Moz of silver and 156,542oz of gold. The company highlighted that Santa Elena achieved a new annual production record of 10.3Moz AgEq, a 7% increase from 2023.

La Encantada saw a significant improvement in its silver output, with production rising 39% compared to 3Q24. This recovery was attributed to improvements in water inventory levels, allowing the operation to return to historical production rates.

First Majestic also reported an active exploration program, with 49,183m of drilling completed during 4Q24. The company also reported a consolidated Total Reportable Incident Frequency Rate (TRIFR) of 0.53, significantly below the company's 2024 target KPI of less than 0.90. This represents a 48% improvement over the company's 2023 results. Additionally, the Lost Time Incident Frequency Rate (LTIFR) was 0.10, below the target KPI of less than 0.30, a 70% improvement compared to 2023.

The company reported its transition to liquefied natural gas (LNG) at San Dimas to reduce carbon emissions and costs. “LNG generators are expected to reduce carbon emissions by up to 25% while realizing cost savings when backup power is required,” reads the company’s report.

Gatos Silver Acquisition

First Majestic considers the acquisition of the Canada-based junior company Gatos Silver, announced on Sep. 05, 2024 to be strategic, as it enhances its operating platform due to Gatos Silver’s 70% interest in the Cerro los Gatos project in Chihuahua.  

According to First Majestic, the main benefits of this transaction, expected to conclude in early 2025, include the addition of Cerro los Gatos, which has exploration potential, boosting annual attributable production by approximately 6Moz of silver and 9Moz of AgEq based on Gatos' 2024 production guidance. Additionally, First Majestic gains access to approximately 103,000ha of unencumbered land, offering additional exploration potential. 

For Gatos Silver shareholders, the transaction also enhances capital markets presence, and trading liquidity, and provides superior financial strength to support continued margin improvements, growth, and exploration. The combined land package, totaling approximately 350,000ha, further amplifies exploration potential. “We look forward to working with the operating team at Cerro Los Gatos and with our new joint venture partner Dowa Metals & Mining,” reads the company’s press release.