First Majestic To Repurchase Up To 10 Million Shares Under Buyback Program

FULL DISCLOSURE: This is sponsored content for First Majestic Silver Corp.

First Majestic Silver (TSX: AG) (NYSE: AG) has been approved by the TSX to conduct a normal course issuer bid.

The share buyback program will see the company repurchase up to 10.0 million of its common shares over a twelve month period that begins on September 12, 2024. The figure amounts to 3.32% of its currently outstanding common shares.

The shares are to be repurchased through the TSX and Canadian alternative trading systems, subject to a daily maximum of 193,454 shares.

READ: First Majestic Silver To Acquire Gatos Silver In $970 Million Transaction

First Majestic’s share repurchase program follows the company last week entering into an arrangement to acquire Gatos Silver (TSX: GATO) (NYSE: GATO). The purchase is expected to bolster free cash flow by USS$70 million on an annual basis, while adding 9 million ounces of annual silver equivalent production to First Majestic’s portfolio. On a combined basis, the company is expected to see combined annual production of 30-32 million ounces of silver equivalent at an all-in sustaining cost between US$18-20 per silver equivalent ounce.

First Majestic Silver last traded at $6.29 on the TSX.

FULL DISCLOSURE: First Majestic Silver Corp is a client of Canacom Group, the parent company of The Deep Dive. 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. Always do additional research and consult a professional before purchasing a security.