Leading Silver Producer Adds Premier Mining Asset

• Stockpiles are gone: most of the world’s above-ground silver, mined over a span of greater than 4,000 years is gone – literally “consumed”, and now strewn across the world’s landfills

• A long term supply deficit: it has now been established that the silver market has been in continuous supply deficit for approximately 30 years, something unprecedented in the history of metals markets

• Pricing: the price of silver is near absolute extremes, both in real-dollar terms and in relation to the price of gold. For 4,000+ years, this price ratio gravitated around 15:1. Today this ratio stands at an ultra-extreme level of 80:1, despite the destruction of global silver stockpiles

Resource investors understand the best vehicles for capitalizing on an unloved/undervalued resource sector: the commodity producers. Mining companies provide natural leverage on the metals they produce. As metals prices increase, the profitability of mining companies generally rises in multiples of the increase in commodity price.

For mining investors looking to capitalize on this most-undervalued metal, First Majestic Silver Corp. (TSX: FR, NYSE: AG, FWB: FMV, BMV: AG, Forum) is a great place to start. Typically as a mining sector emerges from a trough, it is the larger cap producers who lead the way higher.

FM is a profitable mid-tier silver producer, with six operational silver mines, all located in Mexico – the global capital for silver production. Despite this operational success, the Company’s share price has been punished.

First Majestic was recently in the news as it added a seventh mine to its operations, another silver/gold producer in Mexico.

Stockhouse once again had the opportunity to sit down with the CEO of First Majestic, Keith Neumeyer, to delve deeper into this acquisition – and the silver market in general.

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