First Majestic Silver targets production growth amid Mexican labor strikes

First Majestic Silver is pursuing production expansion and exploration despite facing operational challenges in Mexico. The company has outlined plans to restart its Jerritt Canyon gold operation in Nevada and is targeting an annual silver production of 14.5 million to 15.5 million ounces. To support this, the company expects to make nearly $350 million in capital investments, primarily focused on exploration.

However, the company is currently managing labor unrest at its San Dimas site in Mexico. Workers began a strike on September 19 over disputes regarding safety, working conditions, contract extensions for external service providers, and unpaid productivity bonuses. Additionally, tensions have risen at the Tayoltita site, where the company requested that contractors withdraw equipment due to ongoing closures.

These operational hurdles coincide with a period of market volatility. While the company notes a structural silver deficit of 840 million ounces over the last six years, recent fluctuations in silver prices, a strengthening US dollar, and rising Treasury yields have impacted the stock's performance.