News Summary
The December 15, 2025 news release details continued exploration success at the Santa Elena Silver/Gold Mine in Sonora, Mexico. Drilling has significantly expanded gold and silver mineralization at the recently discovered Santo Niño and Navidad vein systems.
Key developments announced are:
– Scoping Study: The company has launched an early-stage scoping study to define how to best integrate the Navidad and Santo Niño discoveries into the Santa Elena life of mine plan.
– Plant Expansion: A project has been initiated to expand the Santa Elena processing plant’s throughput from approximately 3,200 tonnes per day (tpd) to 3,500 tpd by the end of 2026. This is driven by the increasing mineralization available from the new discoveries.
– Metallurgy: Third-party metallurgical testing for Santo Niño indicates high gold and silver recoveries (over 95%) that are compatible with the existing Santa Elena plant.
– Management Update: Mani Alkhafaji has been promoted to President & Chief Corporate Development Officer, effective January 1, 2026. Keith Neumeyer will continue as CEO.
Material Impact
The news is Materially Positive. While strong exploration results have been a consistent theme for First Majestic throughout 2025, this release marks a critical turning point. The initiation of a scoping study and a tangible plant expansion project moves the Santa Elena discoveries from an exploration concept to a defined growth project.
– De-risking and Confirmation: The continued positive drill results confirm the significance of the Santo Niño and Navidad discoveries first announced in May 2025 and February 2025, respectively. This demonstrates that Santa Elena is a prolific district with significant organic growth potential.
– Path to Growth: The planned expansion to 3,500 tpd provides a clear, near-term catalyst for increased production and extends the mine’s operational life. This is precisely the kind of value-accretive, organic growth that reduces reliance on acquisitions and exploration risk over the long term.
– Strategic Timing: This announcement comes just one week after the company proactively refinanced its debt by closing a US$350 million convertible note offering. This demonstrates shrewd capital management; the company secured long-term financing at favorable rates and is now immediately deploying its strong balance sheet and free cash flow towards a high-confidence internal growth project.
– Alignment with Projections: In July 2025, the company increased its 2025 capital investment guidance by 7% to $193 million, citing the need to support growth initiatives including development at the Navidad discovery. Today’s news is the logical and expected outcome of that increased investment, showing that capital is being deployed effectively.
The management update is routine and has no material impact on the stock, but it does signal a stable succession plan within the senior leadership team. Overall, this news reinforces the bull case for the company as a disciplined operator capable of generating and executing on its own growth pipeline.
Catalysts
– Q4 and Full-Year 2025 Results: Expected in February 2026. The key will be to see if they met their increased production guidance of 30.6 – 32.6 million AgEq ounces and maintained AISC within the $20.02 – $20.82 range.
– 2026 Guidance: The new guidance, also expected in Q1 2026, will be critical. Watch for how the Santa Elena expansion is factored into production forecasts and capital expenditures.
– Santa Elena Scoping Study Results: The company should provide updates or the final results of the scoping study, which will offer the first look at the potential economics (capex, opex, production profile) of integrating the new discoveries.
– Updated Mineral Resource/Reserve: The company typically releases its annual M&R statement at the end of Q1. Look for a maiden Inferred Mineral Resource for the Santo Niño discovery and a significant upgrade to the Navidad resource announced in the March 2025 M&R statement.
Materiality Conclusion
The news is material and positive. It solidifies Santa Elena as a cornerstone asset with a clear, funded growth trajectory. By committing to a plant expansion, the company is translating exploration success into future cash flow, which is a significant de-risking event for shareholders.
