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Mr Pipples

First Majestic Silver / FR.t & AG

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First Majestic Silver / FR.t (>50% SLV)

Can someone explain what this all means to an existing stockholder? Down about 18% on open!

http://www.google.com/finance?q=TSE%3AFR

http://www.marketwire.com/press-release/Fi...-FR-951964.html

===

(in edit - Charts);

FR.t / First Majestic Silver ... all-data : 10-yr-W : 5-yr-W : 2-yr-D : 6-mo-D / 10d : Aug. 4, 2017

8/4/2017 Last: C$7.89 -$1.79 -18.49% : Volume: 3,090,799 /

Ncmicbi.gif

-in edit-

FR.t held above 50% of SLV / Silver etf

w6ugwcY.png

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Can someone explain what this all means to an existing stockholder? Down about 18% on open!

 

http://www.google.com/finance?q=TSE%3AFR

 

http://www.marketwire.com/press-release/Fi...-FR-951964.html

 

Wow someone bailed out of this bigtime before the news and it turned into a rout by the look on the day?

 

This means existing shareholders didn't get to participate and got diluted down in simplistic terms to me. Happens a lot.

 

Whether this is a good move looks dependant on price of silver i guess.

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Wow someone bailed out of this bigtime before the news and it turned into a rout by the look on the day?

 

This means existing shareholders didn't get to participate and got diluted down in simplistic terms to me. Happens a lot.

 

Whether this is a good move looks dependant on price of silver i guess.

 

Yes - I was not amused. Thanks for the response.

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Yes - I was not amused. Thanks for the response.

 

Well fingers x'd for you, i'll keep it on my watchlist for now, but it might not be so bad if silver continues upwards.

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They shouldn't have to raise money with the production they have.

 

He may be raising money to further exploration , to fund a takeover or to buy some kind of smelter so they don't have to use Pinoles . I know Keith is thinking about all these things.

 

Keith has quite a loyal shareholder base. I suspect what has happened is that funds participating in the placement will have sold their existing stock above $2.50 and participated in the placement at $2.50 on which they also get a free warrant. They make on the deal.

 

But for those not in on the placement it is most frustrating. At $14 silver the stock should be above $4.

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They shouldn't have to raise money with the production they have.

 

He may be raising money to further exploration , to fund a takeover or to buy some kind of smelter so they don't have to use Pinoles . I know Keith is thinking about all these things.

 

Keith has quite a loyal shareholder base. I suspect what has happened is that funds participating in the placement will have sold their existing stock above $2.50 and participated in the placement at $2.50 on which they also get a free warrant. They make on the deal.

 

But for those not in on the placement it is most frustrating. At $14 silver the stock should be above $4.

 

It's real puzzling to me, i'm tempted to have a play on these as a bit of a no-brainer, but i can't quite fathom out why this is to good to be true. The funds that sold existing stock above $2.50, surely can't be selling and the drift to present levels seems a severe reaction of any disgruntled existing investors.

 

Or am i missing something?

 

Riggers

p.s thanks for the reply on silver thread, i'll be giving them a go.

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HISTORY REPEATS !

Thank goodness I was OUT of the equity - I had some shares at the beginning of the year

On 2/20/2009 at 1:34 AM, Mr P said:

Can someone explain what this all means to an existing stockholder? Down about 18% on open!

http://www.google.com/finance?q=TSE%3AFR

http://www.marketwire.com/press-release/Fi...-FR-951964.html

Shares of First Majestic Silver Crash After Earnings Report

Motley Fool-18 hours ago
Shares of precious metals miner First Majestic Silver (NYSE:AG) are down 14.8% as of 12:00 p.m. EDT today.

The force driving today's decline was the company's second-quarter earnings report that didn't live up to expectations.

So what

According to analyst estimates, First Majestic's earnings were going to come in at an adjusted net profit of $0.01 per share. After stripping out some one-time gains, though, First Majestic posted an adjusted $0.02 per share loss.

To make matters worse, total silver equivalent ounces produced and revenues declined, while cash and all-in sustaining costs increased. All of these elements led to weaker cash flows for the quarter, which forced management to cut its capital spending guidance to $17.5 million for the year.

Now what

According to management, this was all related to work stoppages and some foreign currency losses from a strengthening Mexican peso. Those labor issues have been resolved and the company's mines are up and running again.

If this is truly the case, then investors should probably give the company a mulligan for this quarter. After all, First Majestic has historically been one of the better precious metal miners at generating cash flow per share. However, it will be worth watching over the next quarter or two to make sure that these are indeed one-time problems.

=====

FR.t / First Majestic Silver ... all-data : 10-yr-W : 5-yr-W : 2-yr-D : 6-mo-D / 10d : Aug. 4, 2017

8/4/2017 Last: C$7.89 -$1.79 -18.49% : Volume: 3,090,799 /

Ncmicbi.gif

10-d / 10d :

eEaBdP1.gif

First Majestic Silver's (AG) CEO Keith Neumeyer on Q2 2017 ...
Seeking Alpha-15 hours ago
Thank you for standing by. This is conference operator. Welcome to the First Majestic Silver Conference Call and Webcast. As a reminder, all ...

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MXP / Mexican Peso ... update

xx

 

Keith Neumeyer - on yesterday's call

Thanks Connie.

So, I am not going to get into a huge amount of detail on the financials. I am sure, everyone on the call has read the Company’s news release. I’ll cover some highlights.

Revenue for the quarter was $60.1 million, mine operating earnings of $1.12 million, net earnings after taxes of $1.4 million, small loss of $0.02 per share that’s adjusted earnings; on an earnings basis we’re actually positive by $0.01, decent operating cash flows of $80 million, cash flow per share $0.11, healthy working capital $130.9 million with a $126.9 million in the bank. The realized selling price for silver in the quarter was $17.17 that’s slightly reduced from the first quarter, which was $17.55. Our cash costs for the quarter was $7.41 and our all-in sustaining costs were $14.58.

.

Couple of highlights for the first six months of the year, obviously the strengthening peso. The peso’s gone up around 11% since the beginning of the year. With most of our revenues coming from Mexico, obviously we’re impacted by the strengthening peso. Approximately 80% of our costs are in pesos. And also we did have some work stoppages in the quarter which we’ve talked about publicly a couple of times already, so it shouldn’t be new news to anyone. Most of those events are behind us. But, as I commented in my previous statement in the news release when we announced the production numbers, I did say that there is unusual activity by the workforces in Mexico, as result of some, what I call possibly unhappy Mexicans due to the political environment that’s currently in Mexico, which is obviously unfortunate. But, nevertheless, we’re getting through it and we have come to some very good resolutions with two unions that we work with. And we’re very, very happy that the resolutions that we actually agreed to which should have positive impacts on our profitability going forward at five of our mines, which is obviously very positive thing.

==

> https://seekingalpha.com/article/4095137-first-majestic-silvers-ag-ceo-keith-neumeyer-q2-2017-results-earnings-call-transcript

 

(there were some warnings of trouble earlier):

 

xx

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First Majestic Silver Announces Friendly Acquisition of Primero Mining and Restructured Stream with Wheaton Precious Metals

By GlobeNewswire,  January 12, 2018,

All amounts are in U.S. dollars unless otherwise stated

VANCOUVER, British Columbia and TORONTO, Jan. 12, 2018 (GLOBE NEWSWIRE) -- First Majestic Silver Corp. ("First Majestic") (TSX:FR) (NYSE:AG) (Frankfurt:FMV) and Primero Mining Corp. ("Primero") (TSX:P) are pleased to announce that they have entered into a definitive arrangement agreement (the "Arrangement Agreement") whereby First Majestic will acquire all of the issued and outstanding common shares of Primero (the "Arrangement"). Under the terms of the Arrangement Agreement, all of Primero's issued and outstanding common shares will be exchanged for First Majestic common shares on the basis of 0.03325 of a First Majestic common share for each Primero common share (the "Exchange Ratio").
 

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Concurrent with execution of the Arrangement Agreement, First Majestic has entered into agreements with Wheaton Precious Metals International Ltd., a wholly-owned subsidiary of Wheaton Precious Metals Corp. ("WPM") whereby, following closing of the Arrangement, the current silver streaming interest at Primero's San Dimas silver-gold mine ("San Dimas") held by WPM will be terminated and First Majestic and WPM will enter into a new stream arrangement based on 25% of the gold equivalent production at San Dimas (the "New Stream") with ongoing payments of $600 per gold equivalent ounce delivered under the agreement. As part of the transaction, WPM will receive 20,914,590 common shares of First Majestic having an aggregate value of $151 million.

The Exchange Ratio implies consideration of C$0.30 per Primero common share, based on the 20day volume weighted average price of the First Majestic common shares on the Toronto Stock Exchange ("TSX") for the period ending January 10, 2018, representing a 200% premium to the weighted average price of Primero common shares on the TSX over the same period. The total transaction value is estimated at approximately $320 million, consisting of First Majestic equity to be issued to Primero shareholders and WPM described above and certain additional amounts payable in connection with the Arrangement, including repayment of all amounts owing under Primero's existing revolving credit facility, net of Primero cash on hand and the expected repayment of Primero's $75 million of outstanding convertible debentures and various transaction expenses.

Primero operates the 100%-owned San Dimas silver-gold mine in Durango, Mexico, a premier low-cost asset with more than 100 years of mine production history. Primero has identified more than 120 epithermal veins with exploration potential. Together with First Majestic's existing six operating silver mines in Mexico, the combined company is expected to be a premier leading Mexican silver producer with pro forma annualized attributable silver equivalent production of 27-30 million silver equivalent ounces. With a strong balance sheet and liquidity profile and a diversified portfolio of seven producing silver mines in Mexico, the combined company is expected to continue generating strong free cash flow and industry leading exposure to silver prices.

BENEFITS TO FIRST MAJESTIC SHAREHOLDERS

  • Establishes a cornerstone long-lived mine in Durango, Mexico, with well-established, low-cost operations complementary to First Majestic's existing operations.
  • Builds on First Majestic's strengths in Mexico and underground mining expertise.
  • Accretive on all key metrics including NAV, cash flow, production, and resources to First Majestic shareholders, further diversifying production and free cash flow to First Majestic.
  • The amendment to the existing WPM stream agreement provides for a number of value creation opportunities with alignment between silver and gold production and increased post-stream cash flow at San Dimas.

BENEFITS TO PRIMERO SHAREHOLDERS

  • Provides a comprehensive solution for Primero's capital structure and delivers a significant and immediate up-front premium to Primero shareholders.
  • Provides equity participation in a pro forma company with a strong balance sheet and diversified portfolio of seven operating mines with strong internal growth profile.
  • Superior financial strength and flexibility to support advancement of various development projects and silver production growth.
  • Enhances capital markets presence, increased analyst coverage and trading liquidity through equity participation in First Majestic.
  • Ability to leverage First Majestic's long-term good standing with the local unions, community and Mexico's tax authority.

Keith Neumeyer, CEO of First Majestic, said, "The acquisition of Primero is a highly compelling transformative transaction that further enhances First Majestic's operating platform, adding a very high quality, long-lived asset in San Dimas, all in First Majestic's backyard in Durango, Mexico. Most importantly, the New Stream and related amendments with WPM repositions the asset by maximizing silver exposure for our shareholders, while significantly increasing the free cash flow from San Dimas.

==

> http://www.nasdaq.com/press-release/first-majestic-silver-announces-friendly-acquisition-of-primero-mining-and-restructured-stream-wit-20180112-00145

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Majestic Silver / has bounced back

AG / FR.t 10d :

CitrfBl.png

hEA32f5.png

Ratio: FR.t / FF.t

VJxelbU.png

FR.t held above 50% of SLV / Silver etf

w6ugwcY.png

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Loaded up on AG today around $10, think this is a good springboard to take advantage of rising silver over next few months.

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Almost recovered its losses after the silver crash - already sitting at 9.90 now. A lot of people must have dumped out of fright and now we are ready to go up and break $11 and into $12.

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