Ecuador mineral exports could fall by some 20% this year, says official
Mining exports were worth $3.3 billion for Ecuador in 2023.
Mexico-focused First Majestic Silver (NYSE:AG) is welcoming a less volatile silver price.
The company’s president and CEO Keith Neumeyer told MINING.com earlier this month that he is starting to see a thaw in investor sentiment.
“Because of the stability you have seen over the last couple of months you see the institutions coming slowly back into the market,” says Neumeyer.
“They are not coming in with all feet yet. They are just picking away at the market because they see the value. The value in some of these mining stocks are ridiculous.”
Spot silver dropped one third in 2013 starting the year at $30 per ounce and ending at just under $20.
“People don’t need to see silver going up $3 and down $3. It’s those types of moves that create uncertainty and create concern.
“If we had the metal price just stay at one price for five years we could work within that environment.”
First Majestic runs five-producing silver mines in Mexico. In January the company announced a milestone producing over 10 million ounces of silver annually, a 40% production jump over 2012 and vaunting the company to the ranks of senior producer.
Development at the company’s Del Toro mine helped propel production.
“We broke ground in Del Toro in 2011. We saw first production in early 2013. There is another ramp up going on right now where we are expanding the cyanidation circuit.
“We are currently running at about 2,000 tonnes a day. Our objective is to get to 2,500 tonnes a day in the next few months and then we will maintain that level for the forseeable future.”
The company is still looking for details about a proposed Mexican royalty tax.
“We will be accruing taxes throughout this year. The actual details of the legislation are not out yet. We just simply don’t have clarity on it yet.
“We are assuming the extra tax burden in 2014 is around $5 to $10 million, but the number is not known at this point.”
