First Majestic Silver Reports 5.5 Million Ounces Silver Equivalent Production In Third Quarter

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First Majestic Silver Corp. (TSX: AG) (NYSE: AG) reported total production of 5.5 million silver equivalent ounces in the third quarter of 2024, a 4% increase over the prior quarter. This figure includes 2.0 million silver ounces and 41,761 gold ounces, showing a slight improvement from the previous quarter.

The rise in output was primarily attributed to higher gold production at the company’s operations in San Dimas and Santa Elena. This improvement was a positive development amid ongoing exploration efforts that have intensified in recent months.

In Q3 2024, the company completed 50,020 meters of drilling across its Mexican and U.S. operations, with 28 active drill rigs across four sites. Most notably, the Navidad system, a high-grade gold and silver discovery at Santa Elena, saw continued drilling activities as First Majestic focused on unlocking more resources from the area.

CEO Keith Neumeyer expressed optimism about the company’s operational performance, stating, “Santa Elena continues to deliver strong performance, quarter after quarter. The continued impressive operational results at Santa Elena, along with the recent Navidad discovery, make this a truly world-class district.”

Santa Elena led the company’s production efforts, delivering 2,685,375 silver equivalent ounces, a 4% increase from Q2. The mine produced 376,203 ounces of silver and 27,435 ounces of gold. The mill at Santa Elena processed 259,919 tonnes of ore with strong silver and gold recovery rates of 67% and 94%, respectively.

The continuous optimization of the new dual-circuit plant at Santa Elena has significantly contributed to the higher recoveries and overall production. Exploration activities also saw robust progress, with nine drill rigs completing nearly 14,796 meters of drilling.

San Dimas produced 2,110,905 silver equivalent ounces in Q3, including 1,046,340 ounces of silver and 12,582 ounces of gold. Although silver production dipped by 8% compared to Q2, gold production rose by 4%, driven by increased ore processing. A total of 195,279 tonnes of ore were processed at San Dimas during the quarter. Despite slightly lower silver grades, the mill’s efficiency, with recoveries of 89% for silver and 95% for gold, helped maintain strong production levels.

In terms of exploration, San Dimas completed 29,172 meters of drilling, which is part of a larger, ongoing exploration program aimed at discovering new resources and optimizing production. The company also resolved a labor dispute in August, which had been affecting operations in previous months, and it expects even higher production levels in Q4.

La Encantada produced 545,031 ounces of silver, representing a 7% decline from the prior quarter, primarily due to a drop in silver grades. However, the mine saw a 15% improvement in silver recovery rates, jumping to 69% in Q3. The mine processed 223,200 tonnes of ore, and with increased water inventory levels, throughput rates returned to target levels.

The company expects stronger production from La Encantada in Q4, supported by higher ore throughput and improved recovery rates. This mine also completed 1,862 meters of drilling during the quarter, marking a 207% increase in drilling activity compared to Q2.

At Jerritt Canyon, located in Nevada, the company ramped up its 2024 exploration program, targeting previously unexplored areas on U.S. Forest Service lands. While Jerritt Canyon was placed on temporary suspension in March 2023, the site managed to recover 1,684 ounces of gold during Q3 through in-circuit recovery efforts. The continued exploration at Jerritt Canyon signals First Majestic’s strategic focus on developing long-term assets beyond its core Mexican operations.

As First Majestic approaches the end of 2024, it remains optimistic about achieving its revised annual production target of 21.4 to 22.6 million silver equivalent ounces. The company is set to release its full Q3 financial results on November 7, 2024, alongside its Q3 dividend announcement.

FULL DISCLOSURE: First Majestic Silver Corp is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover First Majestic Silver Corp on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.