AG - Sector: Basic Materials---Industry: Silver

[setravis]

Canadian Miners Shine On Takeover Chatter, Earnings News

After taking a breather on Thursday, gold and silver miners are charging higher again today with the Canadian Mining Stocks Index jumping 2.2%, driven higher by some speculative takeover chatter and some impressive profit results from one of the Index's biggest members.

On the mergers and acquisitions front, First Majestic Silver (NYSE: AG) CEO Keith Neumeyer just can't figure out why a larger mining company hasn't acquired his firm yet. "I can't believe it hasn't happened yet," Neumyer said in an interview with Reuters. At a time when silver prices are surging, First Majestic, with a market cap of $1.5 billion, said it is looking to double its silver production to 16 million ounces over the next three years.

Companies such as Hecla Mining (NYSE: HL) and Pan American Silver (NASDAQ: PAAS) recently announced lower silver production forecasts, Reuters reported. First Majestic, which operates exclusively in Mexico, only mines silver and Neumeyer said he sees the price of the white metal going to $100.

Shares of larger rival Silver Wheaton (NYSE: SLW) are up 2% today after the company said it earned 35 cents a share in the fourth quarter, topping the Wall Street estimate of 30 cents. Silver Wheaton also gave investors reason to cheer by announcing it would begin paying a quarterly dividend of three cents a share. The dividend is payable on March 31 to shareholders of record on March 21.

Barrick Gold (NYSE: ABX), the largest Index component by market value, is up 1% while New Gold (AMEX: NGD) is up 6% after the company said its fourth-quarter gold production jumped 11%.

[setravis]

Profile: 

First Majestic Silver Corp.
925 West Georgia Street
Suite 1805
Vancouver, BC V6C 3L2
Canada - Map
Phone: 604-688-3033
Fax: 604-639-8873
Website: http://www.firstmajestic.com

Details   
Index Membership: N/A
Sector: Basic Materials
Industry: Silver
Full Time Employees: N/A


Business Summary   

First Majestic Silver Corp. engages in the production, development, exploration, and acquisition of mineral properties with a focus on silver in Mexico. The company owns 100% interest in La Encantada Silver Mine comprising 4,076 hectares of mining rights and 1,343 hectares of surface land located in Coahuila; La Parrilla Silver Mine consisting of mining concessions covering an area of 53,000 hectares; and San Martin Silver Mine comprising approximately 7,840 hectares of mineral rights and approximately 1,300 hectares of surface land rights located in Jalisco. It also holds interest in Del Toro Silver Mine consisting of 392 contiguous hectares of mining claims and an additional 100 hectares of surface rights located in Zacatecas; Real de Catorce Silver Project comprising 22 mining concessions covering 6,327 hectares located in San Luis Potosi; and Jalisco Group of Properties consisting of mining claims totalling 5,131 hectares located in Jalisco. The company was founded in 1979 and is based in Vancouver, Canada.

[setravis]

Mon Feb 28, 2011
2010 Audited Financial Results show Record Earnings & Cash Flows A Breakout Year for First Majestic

FIRST MAJESTIC SILVER CORP. (AG: NYSE; FR: TSX) (the "Company" or "First Majestic") is pleased to announce the audited consolidated financial results for the Company for the year ending and fourth quarter ending December 31, 2010. The full version of the financial statements and the management discussion and analysis can be viewed on the Company's web site at www.firstmajestic.com, on SEDAR at www.sedar.com and EDGAR at www.sec.gov.

2010 HIGHLIGHTS
*Cash Flow per share (non-GAAP) of $0.62 per share representing a 676% increase from 2009

*Earnings per share (basic) amounted to $0.39 representing a 410% over 2009

*Total Cash Cost were US$7.94 per ounce, down 6% compared to 2009

*Gross Revenue of $132.2 million showing an 85% increase from 2009

*Net Revenue of $120.8 million showing a 103% increase from 2009

*Mine Operating Earnings of $61.2 million showing an increase of 231% from 2009

*Net Income after Taxes amounted to $36.1 million, a 472% increase from 2009

*Silver only production increases by 72% to 6.53 million ounces compared to 3.8 million ounces silver in 2009

*2011 guidance of 7.5 million ounces of silver or 8.0 million ounces of silver equivalent production

*Fully un-hedged to silver prices
--------------------------------------------------------------------------------------------------------
Full news release here...
http://www.firstmajestic.com/s/NewsReleases.asp

Day's Range: 16.35 - 17.25
52wk Range: 2.95 - 17.25
Volume: 1,028,634
Avg Vol (3m): 511,097
Market Cap: 1.62B
P/E (ttm): 64.81
EPS (ttm): 0.27
Div & Yield: N/A (N/A)

Technicals
Last Price Quote is:
14.31%above 13-day EMA
28.11%above 50-day EMA
RS Rating: 97 

[setravis]

PDAC-First Majestic CEO sees his company as takeover target
Thu Mar 3, 2011 5:46pm EST

* Plans to double production by 2014

* Sees itself a good target for majors

* To spend $10 million on exploration in 2011

* CEO Neumeyer sees spot silver over $100 within 2 years (In U.S. dollars)

TORONTO, March 3 (Reuters) - With silver prices at 31-year highs, and top producers lowering their production forecasts, First Majestic Silver's (FR.TO) CEO sees his growing company as a prime target for a takeout bid.

"I can't believe it hasn't happened yet," said Chief Executive Keith Neumeyer. "If you look at some of the bigger companies out there and the pressure to grow their production, it's surprising."

First Majestic will double its production to 16 million ounces of silver over the next three years, Neumeyer said in an interview with Reuters ahead of Toronto's PDAC prospectors and developers convention. That could make the company a hot acquisition target for a larger producer in need of replacement ounces, he said.

PDAC, opening Sunday, will bring together hundreds of small miners, industry giants and financiers at a time when metal prices are surging to record highs.

This week, spot silver prices climbed to a 31-year high at $34.96 an ounce, as uncertainty over the Libyan conflict drove investors into precious metals.

At the same time, Hecla Mining (HL.N) and Pan American Silver (PAA.TO) -- two relatively large producers -- announced lower silver production forecasts for 2011.

"I don't know what goes on in the board rooms of the majors," said Neumeyer. "I think they're off track based on their activities over the last couple of years."

First Majestic's valuation is one factor that may have discouraged a takeover bid so far. Its shares have quadrupled in the past 12 months.

The Vancouver-based miner, which operates entirely in Mexico, owns three mines and has two development projects, and boasts 93 percent of its revenues from silver production.

The company has no plans to diversify into other metals.

"We formed a silver company on purpose to be in the silver space," said Neumeyer, who was the founding president of base metal miner First Quantum Minerals (FM.TO). "Our whole focus is to remain as pure as possible in the silver space."

SILVER BULL

On top of being a pure-play silver producer, First Majestic remains completely unhedged, even with spot silver soaring more than 80 percent in 2010.

"I'm a bull on silver," said Neumeyer. "I'm not going to be hedging silver at $35 because I think we're going to have plus $100 prices on silver."

With plans to start up the Del Toro project in 2012, and an expansion underway to double silver output at the La Parrilla mine that same year, the company is well positioned to reap the benefits if silver prices keep rising.

But along with higher metal prices, come higher costs.

First Majestic's direct cash costs have risen because the Mexican peso has appreciated compared to the U.S. dollar. Neumeyer added that chemical, power, labor and equipment costs are also climbing.

"But the price of the metal has gone up substantially," he said, adding that with direct cash costs around $8.00 an ounce and spot silver above $30.00 an ounce, there is a "substantial buffer."

First Majestic will spend about $76 million on expansion and development in 2011, including $10 million earmarked to restart an exploration program shuttered during the economic downturn in 2008.

While Neumeyer noted he is always on the lookout for acquisition opportunities, he said the company is focused on internal growth.

"It really makes a lot more sense to just develop our current projects," he said. "And if we're lucky and discover something major -- that could also give us a boost in production going forward."