RE:First majesticDuring the Steve Penny interview Neumeyer expressed his increasing concerns regarding the Mexican political situation and his primary responsiblity to protect his shareholders as CEO.
Neumeyer is quoted as saying they are now actively searching to purchase a silver producing entity and that entity has to be at least five million oz of Ag Eq in terms of production in a tier one jurisdiction.
FR just raised cash and sits on $250M CAD . FR typically have done cash + shares financings regarding acquisitions.
I really have no idea if FR will make a bid for Alexco but we do know that large silver producers are interested in the district because MMG's CEO has said precisely that.
First Majestic did make a bid that was 69% above the sp for Orko Silver's La Preciosa deposit in Durango,Mexico.
CDE then bid $2.70 per share or $100M USD's (+25%) over FR's bid and Orko shareholders voted to accept CDE's bid. 142.1 M Shares FD x $2.70 CAD = $383.7 M CAD .
113 m oz Ag Eq. - La Preciosa was a deposit without infrastructure in the middle of Durango State.
AXU is valued today at $344 M CAD FD.
I am interested in receiving full value for my Alexco shares and believe the company is undervalued now given their jurisdictional status,exceptional grades and the Keno district's mineralisation profile / potential,even moreso with AXU and MMG as a combined Keno silver district target.
Keno is the last and only premier silver district on earth that is ridiculously underexplored and is owned by two junior companies,to boot.
Finally,the silver paper priced market has undergone an 18 month consolidation so it appears to be a very opportune time to make a bid for AXU.
I am curious as to what other shareholders think AXU is worth and would be given a bid for.
Finally, how does the bidding go if two or more silver majors make offers as was the case with FR and CDE for La Preciosa?
AXU have 1/5th FR's production profile but 100 million less shares FD.
FR trades 6.5 X AXU's SP today.
AXU are Canada's only pure silver producer and in a Tier One jurisdiction in an underexplored silver district with open exploration upside.
FR's stated goal is to become the World's largest primary silver producer but their silver production is almost entirely Mexican.
AXU $2.13 CAD $20-30M CAD CASH / NO DEBT /161.5 M Shares FD/105 M Oz AG M+I
FR $13.78 CAD $230 M USD DEBT / Cash: $192.8 Million USD or $250.2 Million CAD / 264 M Shares FD /210 M Oz AG P+P
AXU Production 5.26 M oz Ag Eq @ 11.85 oz AISC
FR Production 26 M oz Ag Eq @ $16 (average) per oz AISC
December 2, 2021
First Majestic Completes US $230 Million Convertible Senior Notes Offering
The company intends to use the remainder of the net proceeds from the Offering for general corporate purposes, including strategic opportunities.
FR Presentation
Last updated: Dec. 10,2021
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Goal: Become World's Largest Primary Silver Producer