First Majestic Silver

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First Majestic Silver Corp.
Public
Traded asTSXFR NYSEAG
IndustryMining
Founded2002
FounderKeith Neumeyer
Headquarters,
Key people
Robert A. McCallum chair
Keith Neumeyer pres,ceo,dir
Raymond L. Polman cfo
ProductsSilver Zinc Lead
RevenueUS$ 245.5 million [1]
US$ (93) million [1]
US$ (61.5) million [1]
Total assetsUS$ 771 million [1]
Total equityUS$ 520.5 million [1]
Number of employees
3,563 December 2012
Websitewww.firstmajestic.com

First Majestic Silver Corp. is a Canadian silver-mining company that operates in Mexico. The company has seven producing mines under its control: San Dimas Silver/Gold Mine, Santa Elena Silver/Gold Mine, La Encantada Silver Mine, La Parrilla Silver Mine, San Martin Silver Mine, Del Toro Silver Mine, and La Guitarra Silver Mine. First Majestic also produces and sells its own bullion rounds and bars (others produce and market bullion through private mints).

According to the company, 2018 production from its seven mines is anticipated to be between 20.5 and 22.6 million ounces of silver equivalents, including 12.0 to 13.2 million ounces of pure silver.[2]

History[edit]

First Majestic was founded in 2002 by president and CEO Keith Neumeyer. In June 2006 First Majestic acquired First Silver Reserve Inc (initially just a controlling stake and within three months it purchased all remaining interest), owner of the San Martin silver property in central Mexico. Then in September 2006 it took control of Desmin, the owner/operator of La Encantada (Coahuila, Mexico) in a US$4.75 million deal (ownership of the mine was purchased through Desmin from Industrias Penoles for US$3.25 million). At the time La Encantada produced 800,000 ounces per year operating at 40% of capacity; the mine was First Majestic's third.[3]

According to the stock chart on its website and the company's profile on the TSX Venture Exchange website, it is listed since 2002 but the oldest part of the company goes back as far as 1984 (Brandy Resources Inc).

On March 5, 2009 it graduated to the Toronto Stock Exchange with an initial offering of Cdn$25 million.[4] About a year and a half later it joined the New York Stock Exchange (Dec.23, 2010).

In 2009 First Majestic added a fourth silver project when it acquired Normabec Mining Resources Ltd (completed in September). Initially the deal was thought to have included both Mexico's Real de Catorce mine and Quebec's Pitt Gold Property however non Mexican assets (including Pitt Gold) were spun off into a new company called Bionor Resources Inc which is now Magna Terra Minerals.[5]

In January 2018 First Majestic acquired Primero Mining and the San Dimas silver-gold mine in Durango, Mexico. [6]

Projects[edit]

There are seven projects in total:

  • San Dima
  • Santa Elena
  • La Encantada has been in the Company's portfolio of assets since 2006 and includes a 4,000 tpd cyanidation mill. It is located in northern Mexico within a couple hundred km of the Mexico-Texas border. The site employs 782 full-time workers (most from the immediate area which is an isolated region). The mill there opened in the summer of 2008 and reached commercial production in April 2010.
  • La Parrilla consists of mining rights covering 69,460 hectares of land, making it First Majestic's largest land package. The property recently underwent an expansion project that saw the mill capacity increase to 2,000 tpd. Since 1983 the mine (operating continuously) has produced over 25 million ounces of silver (as of 2010).
  • Del Toro, Chalchihuites, Zacatecas - Del Toro consists of two mine sites; San Juan and Perseverancia. The first phase of the project was inaugurated in January 2013, and the mill began processing at a rate of 1,000 tpd. Further expansions are planned for this project, and it will ultimately reach 4,000 tpd.
  • San Martin, Jalisco State, Mexico - San Martin produces approximately 1 million ounces of silver annually. It is primarily a silver doré producer.
  • La Guitarra, Mexico State, Mexico - La Guitarra became First Majestic's fourth producing mine when it was acquired from Vancouver-based Silvermex Resources in July 2012.[7]

Environmental impacts on Wirikuta[edit]

Wirikuta, one of the sacred mountains of the Huichol people and important in their ceremonial migration, peyote hunt, and deer dance, is being purchased for silver mining by First Majestic Silver Corp.[8] On October 27, 2000 United Nations Education, Scientific and Cultural Organization (UNESCO) claimed this site as a protected area for its importance as a cultural route and endemic flora and fauna species. Before a gathering of 60,000 people at Wirikuta Fest on May 26, 2012, First Majestic Silver announced it had returned some of their mining concessions to the national mining reserve to protect Wirikuta, but the Wixarika Regional Council expose this as a farce.[9] Later on June 9, 2001 it was declared as a National Sacred Site under the State of San Luis Potosí's Natural Protection Act. First Majestic Silver Corp still decided to purchase mineral rights on November 13, 2009 with 80% of their interest within the protected land.

The company's production plan and the characteristics of the narrow vein mineral deposit only allows an underground mining system (as has been done for 200 years) using modern methods of mining production, The ore that the company will extract will be silver values through the FLOTATION Method, which uses biodegradable chemical reagents that are harmless to the environment and the human being; The national and international environmental and health standards will be complied with.

Waterproof material will be used at the base of the Waste Warehouse, which prevents the filtration of liquids to the subsoil. In April, 2010 the company also opened a new cyanidation plant in Coahuila, Mexico where it has started producing 3,500 tons of cyanide a day to help them expand their mining efforts.[10] Currently the Huicholes are trying to find outside groups to help them in the conservation of their land and culture by protecting this mountain, as well as appealing to the President to honor his agreement to protect their holy sites.[11]

References[edit]

  1. ^ a b c d e "2014 Year End Financial Statements and Management Discussion & Analysis" (PDF). firstmajestic.com. First Majestic Silver Corp. 23 February 2015. Archived from the original (PDF) on 20 April 2015. Retrieved 20 May 2015.
  2. ^ "First Majestic Produces a Record 5.1M Silver Equivalent Ounces in Second Quarter; Increases 2018 Production Guidance to 20.5M - 22.6M Silver Equivalent Ounces".
  3. ^ "First Majestic to run La Encantada silver mine". 2006-09-01.
  4. ^ "FIRST MAJESTIC SILVER CORP, Form 40FR12B, Filing Date Nov 23, 2010". secdatabase.com. Retrieved May 15, 2018.
  5. ^ "First Majestic Silver Corp. Completes Acquisition of Normabec Mining Resources". 2009-12-13.
  6. ^ "First Majestic Silver Announces Friendly Acquisition of Primero Mining and Restructured Stream with Wheaton Precious Metals". www.juniorminingnetwork.com. Retrieved 2018-01-12.
  7. ^ https://finance.yahoo.com/news/first-majestic-completes-acquisition-silvermex-143500811.html
  8. ^ Salvemos Wirikuta-Tamatzimahuaha: Frente en Defensa de la Zona Wirikuta. http://salvemoswirikuta.blogspot.com/2010/08/huichol-route-through-sacred-sites-to.html
  9. ^ Press Release by the Wixarika Regional Council "Archived copy". Archived from the original on 2013-09-07. Retrieved 2014-12-28.CS1 maint: Archived copy as title (link)
  10. ^ Liezel Hill 8th April 2010, TORONTO. First Majestic reports commercial production at new cyanidation plant. Mining Weekly. http://www.miningweekly.com/article/first-majestic-reports-commercial-production-at-new-cyanidation-plant-2010-04-08.
  11. ^ http://english.aljazeera.net/indepth/features/2011/10/20111027125212764306.html

External links[edit]