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Executive Summary

First Majestic Silver Corp. entered a definitive agreement to sell its non-producing San Martin Silver Mine in Mexico to Flextronics Supply and Service for total cash consideration of US$90M. The deal includes only US$2.5M upfront at closing (expected Q4 2026), with the remainder paid over 6.5 years, including US$35M due in 2032. For an $8.5B market cap company, this is a modest, non-core asset divestiture with highly deferred economics.

Key Facts

• First Majestic agrees to sell 100% of San Martin Silver Mine for total proceeds of US$90 million.
• Upfront cash at closing: US$2.5 million (US$500,000 already in escrow).
• US$2.5 million due within 180 days of closing.
• US$10 million each anniversary for 5 years (total US$50 million).
• US$35 million lump sum due August 31, 2032.
• Closing subject to Mexican Antitrust approval, expected in Q4 2026.
• San Martin has been under care and maintenance since July 2019; buyer is a private Mexican company part of Meridian Capital.

Financial Impact

Total consideration US$90 million but highly deferred - net present value substantially lower. Upfront cash only US$2.5 million. Represents approximately 1.1% of current market cap at face value, less on an NPV basis.

Risk Factors

• Mexican Antitrust approval may be delayed or denied.
• Buyer (private company) may default on future payments, especially the large 2032 installment.
• Historical calibration on AG shows past bullish calls have significantly underperformed; similar caution warranted here.

Market Snapshot

Investment Themes

Documents Analyzed

This report is based on 5 SEC documents filed with EDGAR.

US Market Status