First Majestic Silver Corp has three mines in operation, a fourth scheduled to come online shortly, and several recently-acquired exploration properties. With a focus on silver projects in Mexico, First Majestic Silver has grown rapidly over the past few years. Read our report on First Majestic Silver:

Summary

First Majestic Silver Corp. (FMS) 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 the acquisition of additional assets. Currently First Majestic Silver has three mines in production; La Encantada, La Parrilla and San Martin, with a fourth currently under construction — the Del Toro Silver Mine. In addition to its producing assets, the company also acquired the La Luz Silver Project in 2009. The company projected production levels of 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$8.26

52 Week Hi / Low
$8.24 / $8.19

Issued & Outstanding
165.700,00

Market Capitalization
$1,370,000,000

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
The cyanidation mill has a capacity of 4000 tons per day (tpd), and its full annual capacity is estimated at 4.5 million oz. of Ag. in the form of silver doré bars. There is also a 1000-tpd flotation mill located on the property (operation has been suspended but the mill is being maintained). La Encantada is represented by a skarn-type deposit, with values for both Ag (Silver) and Pb (lead). There is a silver-only Proven & Probable Reserve of 31,000,000 oz., 31,900,000 oz. Measured & Indicated Resource, and 5,800,000 Inferred Resource.

La Parilla Silver Mine
This producing mine is located 40 miles southeast of Durango. La Parilla is a dual-circuit Cyanidation and Flotation Mill with a capacity of 2000 tpd. Its projected production range was 2.6 to 2.8 million oz. Ag as of 2012. The mill processes silver doré, 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 resources at La Parilla are 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
In production and located 150 miles north of Guadalajara in Jalisco State, Mexico, San Martin is 100-per-cent owned by First Majestic and includes a 900-tpd cyanide mill and a 500-tpd flotation circuit. The claim consists of 19,373 acres, on which First Majestic currently has the surface rights to 3662 acres. Its NI 43-101 compliant report lists 6,790,782 oz. Ag Proven & Probable Reserve, 74,35,827 oz. Measured & Indicated, and 48,900,000 oz. Inferred Resource.

Del Toro Silver Mine
Near production and 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 1,000-tpd flotation mill, with plans to expand to 4,000 tpd (dual circuit). Del Toro was 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, 15 miles west of the town of Matehuala in the Real de Catorce mining district. 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

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Comparable Companies

Cited Information Sources