First Majestic Silver (US:AG)2021-09-13 21:23Summary of First Majestic Silver Corp. Conference Call Company Overview - Company: First Majestic Silver Corp. (NYSE:AG) - Market Cap: Approximately $3 billion - Production: Aiming to become the largest silver producer globally, currently producing about 800 million ounces of silver annually, with a decline noted since 2016 [1][8] Industry Insights - Silver Production Decline: Global silver production has been declining, with a current mining ratio of 7 ounces of silver for every ounce of gold mined, despite a consumption rate of 1 billion ounces of silver per year [1] - Strategic Metal: Silver is deemed a strategic metal due to its increasing demand in electronics, electric vehicles, and solar panels [2][3] - Electric Vehicle Demand: The electric car industry consumes nearly 100 million ounces of silver annually, with a significant increase expected as governments aim to phase out combustion engines by 2030-2040 [3] - Solar Panel Consumption: The solar panel industry also consumes around 100 million ounces of silver each year, contributing to the diminishing above-ground supplies [4] Company Operations - Mine Portfolio: First Majestic operates four mines, with three in Mexico and one in Nevada. The recent acquisition of Jerritt Canyon has diversified their portfolio [6][8] - Production Goals: The company expects record production in 2021, with further growth anticipated in 2022 due to ongoing investments [8] - Jerritt Canyon Acquisition: The acquisition is expected to double gold production from 110,000 ounces to 200,000 ounces by 2024, enhancing operational flexibility [10][11] Financial and Operational Highlights - Exploration and Development: The company has 26 rigs in operation, focusing on exploration to maintain and grow production levels [10] - Cost Management: The company aims to reduce capital expenditures in 2022 while maintaining production levels, with a focus on improving operational efficiencies [9][12] - Santa Elena Mine: Significant improvements have been made, with recovery rates increasing from 65% to 94-96% since acquisition [17][18] Environmental Initiatives - Energy Transition: The company has transitioned its last mine from diesel to LNG and is exploring hydrogen technology to further reduce its carbon footprint [21] Conclusion - Future Outlook: First Majestic Silver Corp. is positioned for growth with strategic acquisitions, a focus on exploration, and a commitment to sustainability, while navigating the challenges of declining silver production and increasing demand in key industries [4][21]