First Majestic Silver Corp. TICKER: TSX:FR; OTCQX:FRMSF DESCRIPTION: First Majestic Silver Corp. is committed to building a senior silver-producing company based on an aggressive development and acquisition plan that focuses on Mexico. The company presently owns and operates three producing silver mines in Mexico—the La Encantada, La Parrilla and San Martin.
First Majestic awarded Socially Responsible Business Distinction Award for 2010
Q1/10 Silver Production in line with BMO Research expectations.
Rating: Outperform Revised Target: $5.00
First Majestic reported Q1/10 adjusted net income of $3.0M or $0.03 pershare, on total net sales of $18.2M. Adjusting for $2.3M net profit (~$0.03/share) from the new cyanidation plant at La Encantada that was capitalized during the quarter, EPS would have been $0.06, in line with BMO Research at $0.06 and consensus at $0.05.
Q1/10 production of 1.4Moz of silver.
FR announced production results from the La Encantada, La Parrilla and San Martin mines for the period ending March 31, 2010. Total ore processed of 337kt increased 34% over Q4/09 to produce 1.62Moz of silver equivalent, a 30% increase over Q3/09, 56% over Q4/08 and marginally above BMO Research estimate of 1.56Moz. Silver production increased 28% from Q4/09 to 1.41Moz roughly in line with BMO Research expectations of 1.48Moz, while lead production increased 61% from Q4/09 to 2.54Mlbs, exceeding the BMO Research forecast of 1.64Mlbs.
Encantada continues to rampup to full production by the end of Q2.
Subsequent to the announcement of commercial production (April 1, 2010) for the new 3,500tpd cyanidation plant at La Encantada, throughput is currently running at 2,700tpd with the expectation that full production will be achieved later in Q2. At La Parrilla and San Martin, production levels during Q1/10 exceeded company expectations. In January, the final permit required to commence construction of a new operation at Del Toro was approved by SEMARNAT and FR expects construction to commence later this year.
The Gold Report Interview with Ron Struthers (07/23/10)
"I follow First Majestic. . .It has a good production growth profile and the cash flow and earnings are [good], as well. In the second quarter ending June 30th, production hit a new record of 1,651,411 silver equivalent ounces, up 72% over the same quarter."
View Entire Article: Ron Struthers: Eat, Pray and Hold Gold
Andrew Kaip, BMO Capital Markets
(07/15/10)
"FR announced production results from the La Encantada, La Parrilla and San Martin mines for the period ending June 30, 2010. Total ore processed of 404.3kt increased 20% over Q110 to produce 1.65 Moz. silver eq.—a 2% increase above last quarter. Silver production increased 9% above Q1 to 1.5 Moz. . .At La Parrilla, the company is in the process of planning for a mill expansion to take advantage of zinc production from the high-grade Quebradillas area. The mill currently produces lead concentrates and silver doré. First Majestic has maintained guidance for 6.35 Moz. silver eq. in 2010. BMO Research forecasts production of 7 Moz. silver equivalent."
Marc Pais, M Partners
(06/28/10)
"First Majestic management has proven themselves as mine operators and we are confident they will be successful in completing the planned mill expansions and advancing Del Toro into production by 2012. . .We have determined our twelve-month price target of $6 per share using a 1.0x multiple on the fully diluted NAV per share. . .
[Key Points]
FR is trading at a discount based on EV/Resource and EV/CF multiples, and should appreciate relative to its peers.
Use of the cyanide plant instead of flotation at Encantada will increase the doré to concentrate production ratio, resulting in an increase in silver revenues
FR can significantly increase its silver production through planned expansions during the 2010-2012 periods at La Encantada, La Parrilla, and San Martin.
FR can successfully advance the Del Toro silver mine into production by early 2012."
Charles Wyatt, Minesite (08/26/10)
"Keith Neumeyer, chief executive of First Majestic Silver, keeps coming up with the goodies. And the company's share price is reflecting these achievements. Back in April, when the shares were just over C$2, his company announced that it had achieved commercial production from a new 3,500-tpd cyanidation plant at La Encantada—the third of its producing mines. It had taken only five months to complete, and Keith looks on it as a major milestone in the growth of the company, and one that ensures that production will reach at least 6 Moz. of silver this year. The new plant at Encantada has plenty going for it, not least the tailings-filter presses, which mean that 84% of water used can be recirculated; in that respect they are at the cutting edge of technology."
First Majestic Silver Corp. 
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