- First Majestic Silver Corp (TSX:FR) produced 3.2 million ounces of silver and 32,202 ounces of gold in its first quarter of 2020, up 9 per cent on its previously announced guidance
- However, these figures don’t yet show the impact of Mexico’s mining ban, which came into effect earlier this month and suspended operations at the company’s San Dimas, Santa Elena and La Encantada mines
- Keith Neumeyer, President and CEO, stated that the company hopes to get silver mining classified as an essential service, and recommence operations early
- If the company fails to make a case for its early recommencement, it will have to wait until the suspension ends on April 30 to begin ramping up production
- First Majestic Silver Corp (FR) is up 4.98 per cent, with share trading for C$11.18 and a market cap of $2.35 billion
First Majestic Silver (TSX:FR) remained in line with its previous production guidance, before COVID-19 restrictions suspended its mining activities.
In the company’s first quarter of 2020 it produced 3.2 million ounces of silver and 32,202 ounces of gold. This was up nine per cent on the company’s previous estimates, before it revoked the 2020 guidance, earlier this month.
However, these earlier results haven’t yet been affected by the country-wide mining suspension, implemented by Mexico’s Ministry of Health, to slow the spread of COVID-19.
As a result, First Majestic’s three mine’s in Mexico were forced to suspend operations from April 6, with only a small team remaining on site for essential work.
President and CEO of First Majestic Silver, Keith Neumeyer, remains hopeful that the company can negotiate an early restart with the government.
“Our San Dimas, Santa Elena and La Encantada mines were all operating above guidance prior to Mexico’s Federal Decree to suspend all mining activities in response to the COVID‐19 pandemic.
“While we support the actions being taken, we continue to engage in discussions with Federal and State authorities to raise awareness on the importance of silver mining as an essential business,” he said.
If the company fails to make a case for its early recommencement, it will have to wait until the suspension ends on April 30 to begin ramping up production.
The company has not yet announced how much the suspension will impact the second quarter’s production figures.
Currently, Mexico’s COVID-19 cases remain relatively low by global standards. The country has only 5,014 confirmed cases. This bodes well for First Majestic, as low overall numbers and a slowing of new cases makes an extension to the federal suspension less likely.
First Majestic Silver Corp (FR) is up 4.98 per cent, with share trading for C$11.18 at 10:53am EST.