First Majestic Silver FR.to
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Posted: Wednesday Nov 4 7:45:53AM 2009
FR.to +.18 to C$3.55
First Majestic is moving towards completing and commissioning their big expansion at La Encantada. Will move FR from 4+ to 6million oz by 2011. Q4 will be a mixed bag with new expenses and production still moving up slowly. Q1 should be the first indication of the new production levels, higher revs and lower costs of the company. First Majestic will move into the senior producer category and is the cheapest producer compared to the seniors. In addition, it is a primary silver producer vs a base metal producer with silver byproduct like Hecla.
Posted: Tuesday Sep 8 1:44:16PM 2009
still holding FR.to. La Encantada mine expansion has been delayed, causing company to lower 2009 guidance to 5.5 million silver oz. FR is undervalued but needs expansion to go smoothly. FR currently over 4 million oz production rate but needs new capacity of lower cost oz from La Encantada to show improved production and profits.
FR.to +.12 to C$2.60
Posted: Thursday May 28 9:18:29PM 2009
FR.to +.17 to C$2.70.
Silver strong today. +.14 to US$5.29
FR.to will activate first phase of increased mill at Encantada mine, increasing from 800tpd now to 3500tpd by yearend.
Total silver production will be 5.7 to 6 million oz.
Posted: Wednesday May 20 10:17:47AM 2009
FR.to +.25 to C$2.46
Silver is probably going to move in higher percentage amounts than gold. Also if we ever get out of the recession, silver usage from industrial usage will increase demand. The lower base metal production will reduce silver production because many silver mines are actually base metal mines that produce silver as a byproduct.
FR.to is a value play. Most pure silver miners are money losers. FR.to has positive cashflow and positive production and cashflow news coming. Their La Encantada mine is expanding their mill from 800tpd to 3500tpd in 2009. Expansion will be in stages. 1000tpd in July, 2000tpd in Aug, 3000tpd in Sept and 3500 in Oct. This big increase in capacity at their biggest and lowest cost producing mine will help FR hit 5.7 to 6.0 million oz of silver in 2009 from 4.2 in 2008.
In addition to the positive production news, First Majestic has found another way to increase the amt they get from silver. They are selling silver coins and bars directly to silver investors from their web site. This allows them to get a premium for their silver. With silver for investors getting scarce, FR is increasing their revs from this source. They ship their silver to a mint and have coin and bar bearing the First Majestic logos minted. These are shipped to investors ordering from the FM website.
Posted: Tuesday Mar 31 11:37:26AM 2009
FR +.16 to C$2.16 I was trying to buy today but it ran away from me. Luckily I bought yesterday at 2.03 but wanted more.
First Majestic is a profitable silver miner. Those are hard to come by. They have several mines and are upgrading equipment to increase mill capacity.
Produced 4.2 million oz of silver in 2008 and was profitable. One upgraded mill increased production in Q4 and another mill will come online in Q2. Guiding for 6 million oz in 2009.
Majestic is a relatively low cost producer. The increased thruput will lower costs more.
Should cashflow .10-.12/qtr in 2009.