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First Majestic Silver Corp. Report
Posted on June 3, 2012.
First Majestic Silver Corp. is a company that has three mines currently in operation, a fourth scheduled to come online shortly, and several recently acquired exploration properties. With a focus on silver projects inside of Mexico, First Majestic Silver has grown rapidly over the past few years. Read our summary report on First Majestic Silver.
Summary
First Majestic Silver Corp. (FMS) is a producing silver that is focused on developing projects in Mexico. The company states on its website that it is aggressively pursuing a business plant to become a senior silver producer through the development of its current mineral assets and through the acquisition of additional assets. Currently First Majestic Silver has three mines in production, La Encantada, La Parrilla and San Martin with a fourth mine currently under construction, Del Toro Silver Mine. In addition to its producing assets, the company also acquird La Luz Silver Project in 2009. The company projects production levels to read 16 million oz. Ag by 2014.
Capital Structure
| As of Date | April 24, 2012 |
| Exchange | TSX & NYSE |
| Ticker Symbol | TSX:FR NYSE:AG |
| Recent Price | CDN$14.54 |
| 52 Week Hi / Low | $24.55 / $14.16 |
| Issued & Outstanding | 105,432,547 |
| Market Capitalization | $1,532,989,000 |
Management
| Keith Neumeyer | President, & C.E.O. |
| Ramon Davila, Ing | Chief Operating Officer |
| Raymond, CA | Chief Financial Officer |
| Martin Palacios, M.B.A., C.M.C. | Chief Information Officer |
| Robert McCallum, B.SC., P.Eng | Director |
| Connie Lillico, B.A. | Corporate Secretary |
| Douglas Penrose | Chairman & Director |
| Tony Pezzotti | Director |
| Robert Young, P.Eng | Director |
Property Summary
La Encantada Silver Mine
Currently in production, the cyanidation mill has a capacity of 4000 tons per day (tpd), and at full capacity it is estimated that it will produce 4.5 million oz. of Ag. annually in the form of silver dore bars. There is also a 1000 tpd flotation mill located on the property, operation has been suspended but is being maintained. La Encantada is represented by a skarn type deposit, with values for both Ag (Silver) and Pb (lead). There s a silver only Proven & Probable Reserve of 34,714,253 oz., 65,199,000 oz. Measured & Indicated Resource, and 18,226,765 Inferred Resource.
La Parilla Silver Mine
Currently in production, this mine is located 65km southeast of the city of Durango. Mill capacity at La Parilla is 2000 tpd, it is a dual circuit Cyanidation and Floatation Mill, will projected production range of 2.6 million to 2.8 million oz. Ag in 2012. The mill process silver dore, and lead and Zinc concentrates.
Underground Proven and Probable Reserves of 26,767,000 oz. Ag only, or 33,029,100 oz. Silver equivalent, open pit Proven and Probable Reserves of 3,779,800 oz. Ag only, or 4,064,900 oz. Silver equivalent. Underground Measured and Indicated resource at La Parilla is 5,089,500 Ag only, or 8,076,600 oz. Silver equivalent, and Inferred resource of 45,758,700 oz. Ag or 56,939,300 oz. Silver equivalent.
San Martin Silver Mine
Currently in production, located 250km north of Guadalajara in Jalisco State, Mexico, San Martin is 100% own and by First Majestic Silver, and includes a 900 tpd cyanide mill and a 500 tpd flotation circuit. The claim consists of 7840 hectares, which First Majestic currently has the surface rights to 1482 hectares. NI 43-101 compliant report, 6,790,782 oz. Ag, Proven & Probable Reserve, 74,35,827 oz. Measured & Indicated Resource, and 48,900,000 oz. Inferred Resource.
Del Toro Silver Mine
Near production. Located in the municipality of Chalchihuites, Zacatecas State, Mexico, Del Toro consists of polymetallic deposits containing silver, lead, zinc in both oxides and sulphides at depth. Work on the mill began in April 2011, which is a fully permitted 1000 tpd flotation mill, with plans to expand capacity to 4,000 tpd (dual circuit). Del Toro is projected by the company to produce in excess of 6 million oz. Silver equivalent (credits for lead & zinc) by 2014. Silver equivalent (Lead & Zinc contained values) 20,943,000 oz. Measured & Indicated Resource and 35,970,000 oz. Inferred Resource.
La Luz Silver Project
Exploration stage. Located in the state of San Luis, Mexico, 25km west of the town of Matehuala, in the Real de Catorce mining distrcit. Real de Catorce has an estimated historical production of 230 million oz. of recovered silver from 1773 to 1990. Ore deposits are epithermal veins system, low sufidation which are hosted in sedimentary rocks. Ni 43-101 compliant report 33,689,826 oz. Ag Measured & Indicated Resource and 13,097,701 oz. Ag Inferred resource.
Regional Summary
Silver Mining in Mexico
Market Summary
Investment Highlights / Risks
Highlights
- Exposure to silver market. Silver is currently trading above historical levels.
- Currently in production with 3 mines and a 4th coming online near term.
Risks
- Price of the stock could be negatively affected by a drop in the silver market.
Comparable Companies
Cited Information Sources
- First Majestic Website
- First Majestic Corporate Snapshot
- Stockwatch
- Sedar
Disclosure
Christopher Haugen prepared this summary report. There was no compensation issued by any party for creating this report. Mr. Haugen currently (April 24th, 2012) does not currently have a position in First Majestc Silver Corp. Mr. Haugen may or may not purchase shares in the company at a later date.
This information is provided on an “as-is” basis with no warranties of any kind. Always conduct your own due diligence before making any investment decisions.
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