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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
Post by Thedude12on Aug 11, 2020 6:53pm
311 Views
Post# 31395358

Not understanding....

Not understanding....I'm not following some of the logic on here. As I understand, all mining compaines need to sell their bullion as they mine it. FR made a surprising move when they held off on selling bullion when silver was at $18 or so, and they now sold it all at $26 or so. That is not casting doubt on the long term value of the commodity, but rather just a strategic move that paid off. 

Think of the math, if you pull silver out of the ground for say $16 per oz, all in cost, with your head office salaries and everything included. Then you sell it for $24, you make a profit. But..... if you don't sell it, you don't have the $16 you need to mine the next oz. You can delay a small amount of selling for a short period (which is what happened), but if you stop selling bullion much longer, you have to stop paying your staff. 

The $100-300/oz stuff may be far fetched, but the sale of bullion is not a contradiction, just what mining companies do. Keep in mind that lots of competitors in the mining industry hedge, so they sell their production forward to lock in the prices, even when they were historically low. FR basically did the opposite, so it's a strong bet on the silver price. 
Bullboard Posts