Record production for Mexico-focused First Majestic in 2022

Vancouver-based First Majestic Silver reported record annual production of 31.3Moz silver equivalent in 2022, mainly due to a significant increase in production at its Ermitaño mine in Santa Elena, northern Mexico.

"Santa Elena was the bright spot in our portfolio in 2022, as we brought the high-grade core vein online in the second half of 2022 which increased production by 81% compared to 2021,” CEO Keith Neumeyer said in a release. 

First Majestic stated that its production in 4Q22 reached 7.6Moz silver equivalent, down from the record 8.8Moz silver equivalent reported in 3Q22.

This output came from the company’s Mexican operations at San Dimas (gold/silver) in Durango state, Santa Elena (gold/silver) in Sonora state and La Encantada (silver) in Coahuila state, as well as the Jerritt Canyon mine (gold) in Nevada in the US. 

“The decrease was primarily due to lower production at San Dimas and Santa Elena, slightly offset by higher gold production at Jerritt Canyon and higher silver production at La Encantada,” the miner said. 

The Canadian company said that continued strong metal production from the Ermitaño mine enabled Santa Elena to produce 2.3Moz silver equivalent in 4Q22, which was 16% lower than the record 2.7Moz silver equivalent in 3Q22. 

However, for the year, Santa Elena produced a new annual record of 9.1Moz silver equivalent, which was 81% higher than in 2021. 

“In 2023, Santa Elena is expected to produce between 7.8 to 8.7 million [oz silver equivalent] as it transitions to full production from Ermitaño while exploration continues at the recently discovered Silvana vein within the Santa Elena mine,” the company said.

In 2023, First Quantum is expecting to increase production to a new company record of between 33.2Moz and 37.1Moz silver equivalent, consisting of 10.0Moz to 11.1Moz silver and 277,000-310,000oz gold, with all-in sustaining cost [AISC] guidance of between US$18.47 and US$19.72 per ounce of silver equivalent. 

“Based on the midpoint of the guidance range, the company expects [silver equivalent] to increase 12% compared with 2022. Silver production is expected to remain consistent with 2022 rates whereas the gold production is expected to increase by 18% year-over-year,” the company added.

"Our Mexican operations, which are generating healthy margins at current prices, are estimated to generate 70% of our total production in 2023 with AISC of approximately US$17 per oz," Neumeyer said.