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First Majestic Silver Corp T.AG

Alternate Symbol(s):  AG

First Majestic Silver Corp. is a mining company. It is focused on silver and gold production in Mexico and the United States. It owns and operates the San Dimas Silver/Gold Mine, the Santa Elena Silver/Gold Mine, and the La Encantada Silver Mine, and a portfolio of development and exploration assets, including the Jerritt Canyon Gold project located in northeastern Nevada, United States. It also owns and operates its own minting facility, First Mint, LLC, and offers a portion of its silver production for sale to the public. The San Dimas Silver/Gold Mine is located over 130 kilometers (km) northwest of the city of Durango, Durango State, Mexico and consists of 71,868 hectares of mining claims located in the states of Durango and Sinaloa, Mexico. The Santa Elena Silver/Gold Mine is located over 150 km northeast of the city of Hermosillo, Sonora, Mexico. The La Encantada Silver Mine is an underground mine located in the northern Mexico State of Coahuila, 708 km northeast of Torreon.


TSX:AG - Post by User

Bullboard Posts
Comment by shortUSA2on Jan 12, 2008 1:53pm
245 Views
Post# 14193008

RE: FR valuation metrics

RE: FR valuation metricsI don't see anything obviously wrong with your analysis dooby, but the 3.6 million ounces mined is a temporary number while they ramp up production to higher levels.  Probably 5 million plus by this time next year.  So the immediate future has FR at about 100,000 ounce production on a gold equivalent basis.  Also the 6.73 cost/ounce is up slightly but if you look at in terms of gold equivalent its around $400 or less, which is not bad in today's environment and given that they are still in a semi development phase getting the mines to optimum production rates.   Generally speaking your analysis is on a trailing basis with regards to production, profits and reserves/resources whereas I think most of us invested here are looking forward to what we expect/hope will be large significant improvements in all of these categories.   My expectation is that as the development work  slows down and FR focuses simply on mining ore we should see costs per ounce fall and huge increase in profitability.   For me the bottom line is, where do I put my money to gain leverage to a rising POS or improved sentiment toward silver stocks?   I see KN as a solid manager who will deliver growth and improved profitability.   These are the ingredients for quick share price appreciation when the conditions in the junior silver sector improve.  To me, FR looks like a reasonably safe bet as a silver proxy with leverage.   The same cannot be said with such confidence about some of the other junior silver plays, IMO.   On a side note, the stock is getting into a pretty narrow range of late so it will have to move one way or the other soon.   When it does it should be a significant move.   The bias is to the upside.
Bullboard Posts