GREY:CLGRF - Post by User
Post by
jimmyrogers3033on Mar 17, 2016 11:16am
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Post# 24669721
Look at FR - into GDX & rocking
Look at FR - into GDX & rocking First Majestic will be included into GDX at month's end - it's up 52% last 30 days while GDX up 13% - massive outpreformance - the index buying millions of shares. CNBC people bullish on gold say "GDX is the way to play it" - posters here seem to think stock will go up forever, but are making a mistake thinking there's enough retail buying to bring it to the next level. Bigger IS better.
Here's a note fropm the nest analyst in the biz - the SS is bigger and better:
First Majestic Silver Corp. $FR - comment from Daniel Earle at TD Securities: Last Friday, the quarterly review results for the NYSE Arca Gold Miners Index were released. Effective at the close of Friday, March 18, First Majestic will be added to the GDX (~8.5mm shares) and GDXJ (~1.9mm share). Last week, we increased our silver price forecasts to reflect the recent improvement in the market. We now model average silver prices of $15.75/oz in 2016 and $16.00/oz thereafter. First Majestic has reduced its total cash costs to $7.87/oz in 2015 from $9.58/oz in 2014 (we model $7.10/oz in 2016) and the company’s AISC guidance of $12.29–$13.36/oz for 2016 is now on the profitable side of the silver price. We model the company transitioning to being free cash flow positive in 2016. The company has also taken steps to improve its balance sheet, as it recently secured a $60mm credit facility.