Mining in Mexico M&A Movements Analysis¶

M&A Movements¶

Based on the provided data from 2024 and 2025, a notable M&A movement within the Mexican mining value chain is the acquisition of the Cerro Los Gatos mine by First Majestic Silver Corp. This transaction, which occurred in 2024, represents a strategic move by First Majestic Silver to expand its operational footprint and increase its production capacity, particularly for silver.

Impact of M&A Movement on the Value Chain¶

The acquisition of the Cerro Los Gatos mine by First Majestic Silver has several implications across different stages of the mining value chain in Mexico:

Exploration: While the primary focus of the acquisition is a producing mine, it may include existing exploration upside within the acquired property's concessions, potentially adding to First Majestic's future exploration portfolio.
Development: The immediate impact on development is likely minimal unless the acquired mine has ongoing or planned expansion projects that First Majestic will now undertake. The focus shifts to optimizing the existing operation rather than greenfield or major brownfield development.
Mining (Extraction) and Processing & Refining: This is where the most significant impact is felt. First Majestic takes operational control of the Cerro Los Gatos mine, integrating its extraction and processing activities into their overall operations. This directly increases the volume of ore mined and processed under First Majestic's purview, contributing to their overall production figures for silver and potentially other associated metals. The acquisition is specifically expected to significantly increase First Majestic's production in 2025.
Marketing & Sales: With increased production from the acquired mine, First Majestic Silver will have larger volumes of silver (and potentially other metals) to market and sell. This can enhance their position in the global silver market and potentially influence their sales strategies and contract negotiations.
Market Players and Competitive Landscape: The acquisition strengthens First Majestic Silver's position among silver producers in Mexico and globally. It represents a consolidation of assets, which can influence the intensity of rivalry within the silver mining segment.
Strategic Priorities: This acquisition directly aligns with First Majestic Silver's strategic priority of increasing silver production.

The table below summarizes the impact of this M&A movement:

Value Chain Stage	Impact of First Majestic Silver's Acquisition of Cerro Los Gatos Mine
Exploration	Potential addition of exploration upside within the acquired property's concessions to First Majestic's portfolio.
Development	Limited immediate impact unless related expansion projects exist; focus shifts to optimizing the existing operation.
Mining (Extraction)	Direct increase in operational scale and volume of ore mined under First Majestic's control; contributes to higher production figures.
Processing & Refining	Integration of the acquired mine's processing facilities into First Majestic's operations; increases processing capacity and metal output, particularly silver.
Marketing & Sales	Increased volumes of silver (and potentially other metals) available for sale, potentially enhancing market position and sales strategies.
Market Players / Competition	Strengthens First Majestic Silver's position as a key silver producer in Mexico and globally; contributes to asset consolidation in the sector.
Strategic Priorities	Directly supports First Majestic Silver's strategic goal of increasing silver production, with expected significant production increases in 2025.

References¶

There's no substitute for silver - Investors - First Majestic Silver Corp.. https://www.firstmajestic.com/investors/
First Majestic Silver Delivers 20% Jump in Q4 Silver Output, Reports New High-Grade Discovery | AG Stock News. https://agoracom.com/lc/agoracom/newswire/FirstMajesticSilver/news/81673/first-majestic-silver-delivers-20-jump-in-q4-silver-output-reports-new-high-grade-discovery
First Majestic Silver reporta una producción récord de plata de 3.7 millones de onzas. https://www.outletminero.org/first-majestic-silver-reporta-produccion-record/
First Majestic Silver producción récord primer trimestre 2025 | Rumbo Minero. https://www.rumbominero.com/mexico/noticias/mineria-mexico/first-majestic-silver-produccion-record-primer-trimestre-2025/