First Majestic Silver (TSX: AG; NYSE: AG) is reinvesting record cash flow from higher silver prices in its Mexican mines, led by Los Gatos.
The Vancouver-based miner generated $224 million (C$315.5 million) in first-quarter free cash flow and reported $1.13 billion on hand. It raised this year’s silver production target by 10% to between 14.6 million and 15.5 million ounces. At 70%-owned Los Gatos, about 120 km south of Chihuahua City, First Majestic is switching from cut-and-fill to long-hole mining to feed a mill tested at 4,100 tonnes a day.
“Our cash flow goes from a record $40 million to a new record quarter of a billion dollars,” President and Chief Corporate Development Officer Mani Alkhafaji told The Northern Miner’s Western Editor, Henry Lazenby, at the Rule Symposium on Resource Investing, in Boca Raton, Fla. this month. “That’s unprecedented and that’s all the torque that we have with the silver exposure.”
The cash lets First Majestic fund growth without tapping shareholders or lenders. Los Gatos will show whether it can turn a price windfall into lasting production gains.
Watch the full interview below:
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