Mining News
First Majestic opens silver minting facility in Nevada, citing 'incredible' demand
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(Kitco News) - Silver and gold producer First Majestic Silver (TSX: FR) (NYSE: AG) today announced the launch of its 100%-owned and operated minting facility, First Mint, located in Nevada.
First Majestic offers a portion of its silver production for sale to the public. Bars, ingots, coins and medallions are available for purchase online at the company's bullion store. Last year, the company sold over 440,000 ounces of silver bullion, generating over $11 million in revenue.
The company said the decision to open its own mint was made to ensure its bullion store has "adequate supplies" in order to fulfill customers demand, adding that bullion sales were constrained by limited supply from the company's minting partners due to the "incredible demand the silver industry is currently experiencing."
First Mint will expand upon First Majestic's existing bullion sales through vertically integrating the production of investment-grade fine silver bullion.
This will allow First Majestic to sell a substantially greater portion of its silver production directly to its shareholders and bullion customers.
"By minting our own silver, we are able to reduce unit production costs and expedite delivery time to our customers. In time, our goal is to sell 100% of the silver we produce directly to the physical market," said president and CEO Keith Neumeyer.
Importantly, the company said that First Mint will operate "some of the most innovative" processing equipment in the precious metals industry, including an environmentally friendly flameless tunnel, which uses significantly less electricity and releases fewer emissions when compared to traditional minting processes.
The company expects the new mint to begin production of silver bullion products in the fourth quarter of 2023.
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.
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