First Majestic Silver (AG) sells San Martin mine for $90M

First Majestic Silver is selling its San Martin silver mine in Mexico to private company Flextronics Supply and Service for $90M in cash. The deal covers the mine's operating assets, equipment, and related infrastructure, the company said.

The San Martin mine, located in Zacatecas state, had been a core part of First Majestic's portfolio for years. The sale marks a shift in the company's strategy toward higher-grade, longer-life assets, an approach management has signaled in recent quarters. First Majestic's current production base includes the La Encantada and Jerritt Canyon mines, plus the Santa Elena complex.

Proceeds from the sale will bolster First Majestic's cash position. The company ended the first quarter with roughly $120M in cash and equivalents. Adding $90M gives it more flexibility to fund development at Jerritt Canyon, retire debt, or return capital to shareholders. The company had $65M in long-term debt at the end of March.

Silver prices have rallied this year, touching $32 an ounce in May, partly on strong industrial demand and supply concerns out of Mexico. First Majestic's remaining mines are positioned to benefit from that tailwind. The San Martin sale reduces the company's exposure to a single asset and simplifies its operating footprint – a positive for investors who have watched the company juggle multiple sites with varying costs.

Flextronics Supply and Service, the buyer, is a private Mexican company that already operates in the mining services space. The transaction is expected to close in the second half of 2026, pending regulatory approvals. First Majestic said it will use the proceeds for general corporate purposes.

For a broader look at how precious metals miners are restructuring their portfolios, see the commodities analysis section.