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First Majestic Inks Deal to Sell Its Del Toro Mine to Sierra Madre
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Key Takeaways
AG struck a definitive deal to sell the Del Toro Silver Mine in Mexico to Sierra Madre Gold & Silver.
First Majestic will receive up to $60M via $20M cash, $10M shares at close, plus staged payments.
AG may earn extra $20M if resource and production milestones are met within 48 to 60 months.
First Majestic Silver Corp. (AG - Free Report) announced that it has inked a definitive agreement with Sierra Madre Gold & Silver Ltd. to sell the Del Toro Silver Mine. The Del Toro Mine, located in Mexico, is a past-producing silver, gold and lead mine fully owned by First Majestic and was placed under care and maintenance by it in January 2020.
Details of First Majestic’s Deal With Sierra Madre
The deal is inked for total consideration in cash and shares of up to $60 million. Sierra Madre will give $20 million in cash and $10 million in common shares to AG at closing at a price of $1.30 per share. First Majestic will receive $10 million within 18 months of closing.
If the mine reports mineral resources of 100 million ounces within 48 months of closing, Sierra Madre will have to pay another $10 million to AG. Finally, if Del Toro produces 4,000 tons per day for a consecutive 30 days within 60 months of the deal closing, First Majestic will receive an additional $10 million.
The deal is subject to Sierra Madre closing a concurrent private placement financing to raise CAD$40 million ($29 million) in gross proceeds and other closing conditions. Sierra Madre and First Majestic had collaborated earlier, with the former acquiring the La Guitarra mine from the latter in 2023.
AG’s Price Performance
First Majestic stock has surged 196.7% so far this year compared with the industry’s 170% growth.
Image Source: Zacks Investment Research
First Majestic’s Zacks Rank & Other Stocks to Consider
First Majestic currently has a Zacks Rank #2 (Buy).
The consensus estimate for Agnico Eagle Mines’ 2025 earnings is pegged at $7.77 per share. The estimate indicates year-over-year growth of 83.6%. It has an average trailing four-quarter earnings surprise of 11.6%. Agnico Eagle Mines’ shares have surged 107.6% in a year.
The Zacks Consensus Estimate for Hochschild Mining’s 2025 earnings is pegged at 36 cents per share, indicating year-over-year growth of 56%. Hochschild Mining’s shares jumped 135% last year.
The consensus estimate for OR Royalties’ 2025 earnings is pegged at 82 cents per share. The estimate indicates year-over-year growth of 57.7%. OR Royalties’ shares have surged 80% in a year.
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First Majestic Inks Deal to Sell Its Del Toro Mine to Sierra Madre
Key Takeaways
First Majestic Silver Corp. (AG - Free Report) announced that it has inked a definitive agreement with Sierra Madre Gold & Silver Ltd. to sell the Del Toro Silver Mine. The Del Toro Mine, located in Mexico, is a past-producing silver, gold and lead mine fully owned by First Majestic and was placed under care and maintenance by it in January 2020.
Details of First Majestic’s Deal With Sierra Madre
The deal is inked for total consideration in cash and shares of up to $60 million. Sierra Madre will give $20 million in cash and $10 million in common shares to AG at closing at a price of $1.30 per share. First Majestic will receive $10 million within 18 months of closing.
If the mine reports mineral resources of 100 million ounces within 48 months of closing, Sierra Madre will have to pay another $10 million to AG. Finally, if Del Toro produces 4,000 tons per day for a consecutive 30 days within 60 months of the deal closing, First Majestic will receive an additional $10 million.
The deal is subject to Sierra Madre closing a concurrent private placement financing to raise CAD$40 million ($29 million) in gross proceeds and other closing conditions. Sierra Madre and First Majestic had collaborated earlier, with the former acquiring the La Guitarra mine from the latter in 2023.
AG’s Price Performance
First Majestic stock has surged 196.7% so far this year compared with the industry’s 170% growth.
First Majestic’s Zacks Rank & Other Stocks to Consider
First Majestic currently has a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the basic materials space are Agnico Eagle Mines (AEM - Free Report) , Hochschild Mining Plc. (HCHDF - Free Report) and OR Royalties Inc. (OR - Free Report) . AEM sports a Zacks Rank #1 (Strong Buy), while AG and OR have a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Agnico Eagle Mines’ 2025 earnings is pegged at $7.77 per share. The estimate indicates year-over-year growth of 83.6%. It has an average trailing four-quarter earnings surprise of 11.6%. Agnico Eagle Mines’ shares have surged 107.6% in a year.
The Zacks Consensus Estimate for Hochschild Mining’s 2025 earnings is pegged at 36 cents per share, indicating year-over-year growth of 56%. Hochschild Mining’s shares jumped 135% last year.
The consensus estimate for OR Royalties’ 2025 earnings is pegged at 82 cents per share. The estimate indicates year-over-year growth of 57.7%. OR Royalties’ shares have surged 80% in a year.