First Majestic Announces Commencement of Bullion Sales from First Mint
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Insights
The commissioning of First Majestic Silver Corp's minting facility, First Mint, LLC, represents a strategic move in vertical integration, allowing the company to directly engage in the production and sale of investment-grade fine silver bullion. This development could potentially enhance the company's product line diversity and create a new revenue stream. By producing over 10% of their current silver output, First Mint could significantly contribute to First Majestic's overall sales volume.
Moreover, the eco-friendly approach adopted by First Mint, with its state-of-the-art machines that are energy-efficient and emission-free, aligns with growing investor interest in sustainable and responsible mining practices. This could bolster the company's reputation and appeal to a segment of investors who prioritize environmental considerations in their investment decisions.
The mint's expansion plans and the launch of limited edition 'First Strike' products may attract collectors and investors alike, potentially increasing demand for the company's bullion. The move to make these products IRA eligible post-ISO 9001 certification could broaden the customer base to include retirement account investors seeking to diversify their portfolios with precious metals.
Lastly, the Shareholder Benefits program is an innovative approach to incentivize stock ownership and foster investor loyalty, which could support the stock price by encouraging long-term holding among shareholders.
First Majestic's focus on eco-friendly production methods at First Mint is a notable example of how companies in the extractive industries are adapting to global sustainability trends. The reduced electricity consumption and absence of gas emissions set a new standard in the minting industry, which is traditionally energy-intensive and can have a significant environmental footprint.
The company's proactive approach to environmental stewardship could mitigate regulatory risks and align with investor's environmental, social and governance (ESG) criteria. This may become increasingly important as ESG factors play a larger role in investment decisions and as regulations around environmental impact tighten.
In the long term, the adoption of such environmentally conscious practices could lead to cost savings through energy efficiency and potentially provide a competitive edge if regulations around emissions for minting facilities become more stringent.
The operational expansion of First Mint represents a capital investment that must be scrutinized for its return potential. The company's decision to produce a significant portion of its silver production in-house could result in cost savings on bullion production, thus potentially improving profit margins.
Investors should monitor the impact of this facility on the company's financials, particularly in terms of operational costs and revenue generated from bullion sales. The initial 'First Strike' edition could command premium pricing, which may positively affect short-term revenues.
However, investors should also consider the risks associated with the costs of expanding operations and maintaining high production standards for ISO 9001 certification. The ability of First Mint to scale up and service third-party projects without compromising quality will be important for sustaining profitability.
Furthermore, the Shareholder Benefits program, while fostering loyalty, represents a discount on the product and could slightly reduce margins per ounce sold to qualifying shareholders. The success of this balancing act between shareholder perks and maintaining healthy profit margins will be a key factor to watch.
Vancouver, British Columbia--(Newsfile Corp. - March 26, 2024) - First Majestic Silver Corp. (NYSE: AG) (TSX: FR) (FSE: FMV) (the "Company" or "First Majestic") is pleased to announce the completed commissioning and commencement of bullion sales from its
In line with First Majestic's commitment to environmental and community stewardship, First Mint operates state-of-the-art machines that require less electricity and do not release gas emissions compared to traditional minting processes. The eco-friendly and high efficiency production line allows the mint to produce over
The inaugural production run of bullion bars will be commemorated and sold as collectibles, complete with certificates of authenticity and exclusive packaging. These limited edition "First Strike" products will include 1,000 one-kilogram bars, 2,500 ten-ounce bars, and 5,000 five-ounce bars. As production ramps up, investors can expect the mint to provide a steady supply of cast bars and one-ounce silver rounds, with additional capacity to service third party projects. Additionally, First Majestic products will remain available for sale alongside First Mint branded items. Investors are encouraged to visit www.firstmint.com to enjoy a refreshed and streamlined shopping experience.
The mint is currently seeking ISO 9001 certification, allowing for its silver to be Individual Retirement Account ("IRA") eligible. Along with this certification comes a quality commitment: First Mint will fully guarantee the weight, purity, and content of its bullion products.
Lastly, the Shareholder Benefits program will continue. Shareholders with at least 100 shares of First Majestic qualify for savings of
For more information about First Mint, contact us at info@firstmint.com.
ABOUT THE COMPANY
First Majestic is a publicly traded mining company focused on silver and gold production in Mexico and the United States. The Company presently owns and operates the San Dimas Silver/Gold Mine, the Santa Elena Silver/Gold Mine and the La Encantada Silver Mine, as well as a portfolio of development and exploration assets, including the Jerritt Canyon Gold Mine located in northeastern Nevada.
First Majestic 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 www.firstmint.com, at some of the lowest premiums available.
FOR FURTHER INFORMATION contact info@firstmajestic.com, visit our website at www.firstmajestic.com or call our toll-free number: 1.866.529.2807.
FIRST MAJESTIC SILVER CORP.
"signed"
Keith Neumeyer, President & CEO
Cautionary Note Regarding Forward Looking Statements
This news release contains "forward‐looking information" and "forward-looking statements" under applicable Canadian and United States securities laws (collectively, "forward‐looking statements"). These statements relate to future events or the Company's future performance, business prospects or opportunities that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management made in light of management's experience and perception of historical trends, current conditions and expected future developments. Forward-looking statements in this news release include, but are not limited to, statements with respect to: (i) the Company's plans to expand the operations at First Mint through additional equipment and personnel; (ii) sales by First Mint of the inaugural production run of bullion bars; (iii) the supply of cast bars and silver rounds as production increases at First Mint; (iv) third party projects undertaken by First Mint; and (v) timing for First Mint to receive ISO 9001:2015 certification.
Actual results may vary from forward-looking statements. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results to materially differ from those expressed or implied by such forward-looking statements, including but not limited to: the duration and effects of the coronavirus and COVID-19, and any other pandemics or epidemics on our operations and workforce, and the effects on global economies and society; general economic conditions including inflation risks; actual results of exploration activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; commodity prices; variations in ore reserves, grade or recovery rates; actual performance of plant, equipment or processes relative to specifications and expectations; accidents; labour relations; relations with local communities; changes in national or local governments; changes in applicable legislation or application thereof; delays in obtaining approvals or financing or in the completion of development or construction activities; exchange rate fluctuations; requirements for additional capital; government regulation; environmental risks; reclamation expenses; outcomes of pending litigation; limitations on insurance coverage as well as those factors discussed in the section entitled "Description of the Business - Risk Factors" in the Company's most recent Annual Information Form for the year ended December 31, 2022 filed with the Canadian securities regulatory authorities under the Company's SEDAR+ profile at www.sedarplus.ca, and in the Company's Annual Report on Form 40-F for the year ended December 31, 2022 filed with the United States Securities and Exchange Commission on EDGAR at www.sec.gov/edgar. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended.
The Company believes that the expectations reflected in these forward‐looking statements are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward‐looking statements included herein should not be unduly relied upon. These statements speak only as of the date hereof. The Company does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by applicable laws.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/203038
FAQ
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