First Majestic Announces the Opening of a Minting Facility

[searcher]

First Majestic Announces the Opening of a Minting Facility​

Vancouver, British Columbia--(Newsfile Corp. - September 14, 2023) - First Majestic Silver Corp. (NYSE: AG) (TSX: FR) (FSE: FMV) ("First Majestic" or the "Company") is pleased to announce the launch of its 100%-owned and operated minting facility, First Mint, LLC ("First Mint"). Located in the State of Nevada, United States, 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.

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First Majestic Silver Corp. - There's no substitute for silver - News Releases

Welcome First Majestic is a mining company focused on silver production in Mexico and is aggressively pursuing the development of its existing mineral…

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[pmbug]

This seems like big news. I don't know how they currently trade their silver to market, but even if they are making direct deals with 3rd party mints, I'd expect they are hedging their at least some of their production in the futures market. Once their proposed Mint gets up and running, I would expect that they would stop, or severely curtail at least, that sort of activity. Net effect would seem to be a reduction of silver trading in the futures/spot markets (a significant supply constraint).