First Majestic Silver Corp. (NYSE:AG) Q4 2019 Earnings Conference Call - Final Transcript

Jan 21, 2020 • 11:00 am ET

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First Majestic Silver Corp. (NYSE:AG) Q4 2019 Earnings Conference Call - Final Transcript

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Executive
Keith Neumeyer

we did get the HIG mill in. In 2020, we will be putting a new AG/SAG system in place with a brand new filter system as well. So, spending a little bit more money, but even improving it further, trying to get it up to 98%, 99% recovery. At least that's our objectives internally to get to, and we'll see if we're successful by doing that.

And the last thing I'll mention is converting Santa Elena over to liquid natural gas. La Encantada was converted over about four years ago. We had the two mines on diesel, and we spend about $14 million a year on diesel at Santa Elena. So it's quite a lot of money. We expect that once this liquid natural gas system is in place, which will be about October of 2021 -- construction is now underway -- it will save approximately $9 million a year.

So that's going to show up right on the bottom line as reduced costs. It's not going to affect 2020 to a great degree because it's only going to be up and running for a very small amount of time right at the end of the year. But 2021, it's going to have a fairly major impact on costs at Santa Elena. And it's also, from an environmental standpoint, a much smaller footprint. And it's a win-win for everyone involved in that operation and the region.

So that's really it for me. We're going to open this up to questions. Anyone that wishes to ask questions of us please feel free to do that by prompting the system.