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First Majestic schedules investments for US$208 million

First Majestic has budgeted $207.8 million for 2022 as supporting capital and expansion capital for investments in property, plant and equipment, mine development and exploration.

The company is in the business of producing, developing, exploring and acquiring mineral properties with a focus on silver and gold production in Mexico and the United States.

Whereas maintenance capital consists of capital expenditures necessary to maintain current operations, expansion capital is earmarked for growth projects to expand current operations.

Thus, a total of 86.3 million dollars was allocated for support capital and 121.5 million dollars were programmed for expansion projects in 2022.

There can be no guarantee that such cost estimates will be accurate.

In fact, First Majestic may modify its capital allocation to anticipate revised strategic planning, declines in metal prices or other external economic conditions.

Actual costs may vary from estimates depending on a variety of factors, many of which are beyond the company’s control.

Failure to meet cost estimates or material increases in costs could have a material adverse impact on the company’s future cash flows, profitability, results of operations and financial condition.

First Majestic

Factors that may influence costs include certain risks covered under “Operating Hazards and Risks” and “Infrastructure,” as well as the following:

  • Shortage of the main supplies necessary for construction.
  • Restrictions or regulations imposed by electrical commissions, government or regulatory authorities regarding planning and construction, including permits, licenses and environmental assessments.
  • Changes in the regulatory environment with respect to planning and construction.
  • The introduction of new taxes on property or capital.
  • Significant fluctuations in the exchange rates of certain currencies.

The company owns and operates three producing mines in Mexico and one producing mine in the United States:

  1. San Dimas in the State of Durango.
  2. Santa Elena in the State of Sonora.
  3. La Encantada in the State of Coahuila.
  4. Jerritt Canyon in Elko, Nevada.

The company also owns several non-material mines that are under care and maintenance:

  1. San Martin in the State of Jalisco.
  2. The Grill in the State of Durango.
  3. Del Toro in the State of Zacatecas.
  4. The Guitar in the State of Mexico.

The company owns two advanced-stage silver development projects in Mexico: the La Luz Silver Project in the State of San Luis Potosí and the La Joya Silver Project in the State of Durango (currently under option), as well as a number of of exploration projects in Mexico.

 

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