FULL DISCLOSURE: This is sponsored content for First Majestic Silver Corp.
First Majestic Silver (TSX: AG) (NYSE: AG) has officially completed its acquisition of Gatos Silver (TSX: GATO) (NYSE: GATO). The transaction is set to materially enhance the production profile of First Majestic.
“With the closing of this transaction, First Majestic is integrating a high-quality, long-life and positive free cash flow operation into our portfolio of producing mines in Mexico. Cerro Los Gatos is truly a world-class district with robust production and cost profile combined with meaningful exploration potential,” commented Keith Neumeyer, CEO of First Majestic.
The closing of the transaction follows the company seeing 99.23% of votes cast at the Gatos shareholder meeting approving of the transaction, and 98.44% of votes cast at First Majestic’s shareholder meeting in favour, with the purchase then closing before market open on January 16. Under the terms of the transaction, shareholders of Gatos received 2.55 shares of First Majestic for every share of Gatos they held.
READ: First Majestic Hits Guidance With 2024 Production Of 21.7 Million Silver Equivalent Ounces
The transaction consolidates three world-class producing silver mining districts in Mexico under a single banner, enhancing the production profile of First Majestic. The acquisition is also expected to bolster free cash flow generation for the company, while leveraging a highly experienced combined team with a strong track record of value creation within Mexico.
“Over the coming quarters, we will continue to communicate our plans for Cerro Los Gatos, which will include ways to realize synergies and integration throughout the business. I would like to take this opportunity to personally welcome Gatos Silver stockholders into First Majestic as we create the industry’s leading intermediate primary silver producer,” continued Neumeyer.
Production guidance of the combined entity is expected to be released at the same time as First Majestic’s audited financial results, which is scheduled for release on February 20, 2025 alongside a conference call.
First Majestic Silver last traded at $8.06 on the TSX.
FULL DISCLOSURE: First Majestic Silver Corp. is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of First Majestic Silver Corp. The author has been compensated to cover First Majestic Silver Corp. on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.
