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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 zentrarianNZon Feb 02, 2016 4:17am
208 Views
Post# 24515165

RE:RE:RE:RE:RE:RE:Talking about risk

RE:RE:RE:RE:RE:RE:Talking about riskI don't think there's a high probability that the company will take any mines offline at this point, and I certainly don't think FR is "agonizing" over it. The silver price has stabilized and may even be beginning its long anticipated recovery. It is very expensive to mothball a mine and mill, and only becomes a real consideration when a company is seriously bleeding money (as AXU was, for example) and a long shutdown and regrouping is anticipated.

First Majestic's 6 operating mines are all very low cost compared to many if not most producers, with cash costs for the most part still comfortably below the current silver price. The only mine with even a remote chance of closing IMO is La Encantada, but costs are going to be coming down there as well soon. In any case, that's the beauty of having six producing mines - they don't all have to be profitable.

Cutting back further on production to avoid high-grading or preserve the resource for higher prices is another matter, and I would leave it to management to decide if that is cost-effective. (As far as doing it just to make a statement to the market manipulators, it's not going to help much if they are the only voice crying in the wilderness, as seems to be the case thus far.)

First Majestic is an extremely well-run company. I have confidence it will not only survive this downturn, but be poised to profit immensely when the tide turns in favor of the precious metals again, as may already be starting to happen.

BTW, I recently migrated over from the First Mining Finance board. Anyone here who isn't already also buying FF should take a look at that as well, because that's the other half of Neumeyer's aggressive strategy. He's not sitting on his laurels waiting for silver to recover but taking advantage of the downturn to pick up properties for pennies on the dollar - and in the process building what will almost certainly be his third billion dollar company.

AFAIK, he's the only guy out there bold enough to sell lemons and make lemonade at the same time.
Bullboard Posts