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Out with the old mine, in with the cash
First Majestic Silver is unloading its past-producing San Martin silver mine in Mexico for US$90 million, another move in its ongoing effort to turn sleepy legacy assets into real money. The mine has been sitting in care and maintenance since 2019, which is corporate speak for “this thing is still ours, but it’s not exactly doing much.”
The payment plan is doing a lot of heavy lifting
The buyer, Flextronics Supply and Service, isn’t handing over one giant suitcase of cash. Instead, the deal is structured like a long-distance relationship with quarterly check-ins: US$2.5 million at closing, another US$2.5 million within 180 days, five annual US$10 million payments, and a final US$35 million installment due on August 31, 2032. The transaction still needs Mexican antitrust clearance, and First Majestic is aiming to close it in the fourth quarter of 2026.
Why investors should care
This isn’t just about selling a mine nobody was using. First Majestic is trimming care-and-maintenance costs, which can quietly eat into margins like an unpaid gym membership. The company also gets to free up capital and simplify the story a bit: fewer dormant assets, fewer recurring costs, and more potential liquidity.
Part of a bigger clean-up
The San Martin sale follows First Majestic’s recent Del Toro exit, which used a similar structure: some cash up front, some deferred payments, and a few milestone-based upside kicks later on. Big picture: First Majestic seems to be choosing balance-sheet hygiene over sentimental attachment to old mines — and in mining, that can be a very grown-up move.