First Majestic Silver has released the company’s 2020 production and cost guidance including capital investments and growth initiatives.
First Majestic Silver (TSX:FR,NYSE:AG,FWB:FMV) has released the company’s 2020 production and cost guidance including capital investments and future growth initiatives.
As quoted from the press release:
“For 2020, our focus remains on adopting new innovation projects to modernize our processing plants to achieve higher recoveries, improve efficiencies and reduce operating costs,” said Keith Neumeyer, President & CEO. “We have witnessed significant benefits from high-intensity grinding at our Santa Elena operation in 2019 and we plan to install the same technology at San Dimas in 2020. In addition, we continue to advance underground development activities at the Ermitaño project near Santa Elena to prepare the mine for initial production in early 2021. Our increased investments in underground development and innovation in 2020 is expected to result in significant production growth in 2021 and beyond.”
The company expects 2020 silver production to range between 11.8 to 13.2 million ounces with total production (including gold by-products) between 21.5 to 24.0 million silver equivalent ounces. The company’s guidance only assumes production coming from its three largest mines: the San Dimas, Santa Elena and La Encantada mines. The San Martin and La Parrilla mines are expected to remain suspended throughout 2020 and the Del Toro mine is being wound down with no production in 2020. By suspending the company’s highest cost lead and zinc mines, management is now able to focus all of its efforts on cost reduction and innovation at its most profitable silver and gold mines.
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