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If they blow through the $34 million and need cash for operations - I prefer they sell the marketable securities as opposed to issuing new shares and diluting our positions again.
Appreciate your opinion - sure he’s not everyone’s cup of tea. Had to think about the Pocahontas comment - but the bulb finally went on. Good one!
Slimhere - no crime in second guessing Keith. I think he is a great miner and have followed him for years. He’s been predicting triple digit silver for years and that hasn’t materialized. So we have to say he has been wrong on that call. I do think he is sincere in his belief that silver should be much higher - that is why I have hung in there with First Majestic. I think in time Keith will be redeemed and many of these shorts will get toasted - the amount of government debt, the supply/demand imbalance and runaway inflation will drive silver much higher IMO. I’m strapped in for the ride!
Maybe our $35 million in marketable securities will double! All good points - I’ll bite my lip and be patient. I’m happy it is on the radar.
At least Dan is talking about exploration - no specifics on how aggressive they plan to be (money/meters) but I guess talking about it is a starting point.
https://mailchi.mp/firstmininggold/video-ceo-dan-wilton-interview-with-proactive-canada?e=43cd5a19fb
Implanting, agree with you on the probable timing of a deal. I have a stake in both FM and FMG. My FMG stake is twice that of FM so in sync with you on FMG getting the sweeter end of any deal. Love the synergy of a deal between the two, but if another suitor presents a better deal, I’m in favor of what’s best for FMG shareholders.
Appreciate your efforts in having the ears of management. Pushing for more information around the status of the permitting process is a worthwhile endeavor on behalf of all FMG investors - thanks again for your insights and persistence.
Implanting, agree with your concluding thought - the whole ball of wax is getting Springpole permitted. I thought Dan did a good job reiterating that FMG has the team and money to make it happen. From my point of view he was effective at communicating that comparable projects have been approved in the past. Appears we have many of the players (employees/consultants) who were involved in making it happen in the past.
Found the conversation relating to cost overruns very interesting. Definitely a risk. Hopefully the fact that FMG used a gold price of $1,600 creates a little cushion should there be any surprises. Every $100 in gold price improves profitability by $150 million. At $1,750 we are in good shape.
The other topic of interest was our conversation from last week - DRILLING. Dan mentioned several times that the royalty properties are going to drill over 100,000 meters in 2021. No mention of how many meters FMG will drill. Glad they hired a VP of exploration but appears to me they are behind the curve in this area. I realize that many of the royalty deals have an ownership incentive to drill, but with over $30 million in cash and $35 million in marketable securities, FMG in my opinion should be doing some level of drilling.
Last point, Dan mentioned that the permitting process will yield some new flow. Seems to me that news flow in combination with drill results and Keith expressing that the mine will be built would be an appealing storyline for new investors.
Implanting, I think FM might come in after the permitting is complete which pushes it out a couple years. Hopefully we don’t need to wait that long for the price of silver to explode. I pressed up all my gold/silver bets the last 12 months so I hope it is this quarter or next.
I assume if silver spikes, gold will follow at some level so hopefully if the FM shares skyrocket, the FMG shares will rise as well.
I liked your idea of Steve Lines doing a webcast. Be curious to hear his view of the probably of Springpole being permitted. I’m sure he is in a position where he would have to put the most optimistic spin on it but sure it would be informative nonetheless.
SeaBlue - now that First Majestic’s (one metal - one country) motto is out the window, my guess is that our FMG shares will be converted into First Majestic shares at some point down the road. Wouldn’t be surprised if First Majestic comes over to top of Treasury, Auteco and Big Ridge as well. Possibly all part of Keith’s master plan!
Thanks SeaBlue - let’s hope Alexco can be as lucky for years to come.
I can’t criticize Dimon for lining the pockets of his shareholders - it’s one of my core holdings. He predicts that Bitcoin will crash and burn - agree with him on that. Regarding debt not mattering - I have to disagree with Jamie on that.
Slimhere, not sure about the futures. Seem to recall hearing Keith say some time ago that everything was unhedged, so I assumed they didn’t trade futures. I recall them holding back silver at least one other time. Now that their gold production is a larger piece of the mix they may have more flexibility to do their own short squeeze by holding some silver when prices dip.
Slimhere - I think you’re right - this stock should be over $20. A blowout quarter
https://www.juniorminingnetwork.com/junior-miner-news/press-releases/1082-tsx/fr/108146-first-majestic-produces-a-record-7-3m-silver-eqv-oz-in-the-third-quarter-consisting-of-3-3m-oz-silver-and-54-525-oz-gold-suspended-silver-sales-and-held-1-4m-oz-of-silver-in-inventory-at-quarter-end.html?utm_source=newsletter_1212&utm_medium=email&utm_campaign=junior-mining-brief-for-date-b-j-y
Encouraging news!
Nsnz33 - definitely a lot of head winds for gold/silver and lots of fiat currency floating around propping things up but I feel that in time Inflation will spike even higher and the stage will be set. JMO - time will tell.
Completely agree
Like to think that FMG will be a leader in the mining sector but that may be wishful thinking. You’re probably right that a rising tide will lift all boats (or at least most of them).
Regardless of the status, I agree that we are due an update. I’m sure if they found the mother load we would all know about it so I assume the update may be somewhat uneventful.
It’s been tough sledding recently in the mining sector for sure. Auteco grew their resource by 70% and the share price went down . Go figure! Our time will come. The spending isn’t going to stop and it’s just a matter of time before gold/silver take off. IMO
I recognize that cash is limited and FMG has to set priorities on the spend. Vaguely remember (believe it was a webinar) where Dan announced a drill program for 2021. Possibly they are on track with that spend and I am just not aware of it. Hope they are. SeaBlue is always great at posting drilling updates and news but I don’t remember seeing anything regarding the status/progress for FMG.
Let’s hope gold shoots through $2,000 soon and we all become the smartest people in the room. FMG and FM are two of my core holdings so I am rooting for their great success and have no plans to sell shares in either any time soon.
Appreciate your perspective and information.
Happy to see FMG adding to the Springpole land package. The potential of them being a major district wide player is encouraging.
Not happy that they aren’t spinning drills as aggressively as Auteco and Treasury. I’m a proponent of aggressive drilling (on the original Springpole land package, the new earn in properties and Cameron). Auteco and Treasury are well on their way to doubling their resource. Would be great to see FMG on a similar path.
I would much rather see FMG look for a JV partner with deep pockets to get Springpole into production. Implanting, if we expect a JV partner to fund the drilling I fear we won’t create much additional value between now and then and will end up on the short end of the deal. Would like to see increases in the resource and hopefully a major discovery occur on our dime. I agree that there is great value in the properties under FMG’s control. Going to be significantly greater if we can double the resource.
We are all aware that the permitting of Springpole is well into the future. Be great if the price of gold makes a major run, minus that I think an aggressive drilling program is our best chance of getting the share price up.
Implanting, my comment about Springpole and Cameron isn’t specific to the potential (I assume FMG kept what they perceive are the best two for themselves) it is about the actions they are currently taking to increase the resource. Possibly they are drilling away as aggressively as Auteco and Treasury but based on the news flow I have seen to date it doesn’t appear to be the case.
SeaBlue - great updates on Treasury Metals and Auteco. They are drilling away and appears that they will be announcing more resource growth in the months ahead. Unfortunately, I don’t have the same sense for Springpole and Cameron. I agree with Implanting that when the sector comes back in favor, these two have a great story that will get attention.
Have to give them credit for a good news flow.
Not familiar with that mine - post a link if you have more info - be interested in learning more about it
Agree 100% ironyman - they are in production, announced new resources on top of their already significant existing resources and the stock is selling at half of what it was 4 months ago. I can’t see how First Majestic wouldn’t have an interest.
SeaBlue - I see Alexco less as a junior and more as a mid tier producer. Their plan is to do 4 million ounces next year. Considering that First Majestic has 3 Mexican mines doing 13 million ounces, adding a 4th property doing an additional 4 million ounces in a different country would give them a 30% increase in silver production. And the fact that Alexco is a high grade deposit might make it a great fit. I guess time will tell.
Hey SeaBlue - I know we bump into each other often on the various boards. Have seen a few Keith videos recently - he is still overly optimistic about triple digit silver - just a matter of when. Was thinking that Alexco would be a great acquisition for first majestic.
We can only hope that all these crappers get a bad case of constipation this fall. I thought silver would have broken through $30 by now.
If you didn’t pull the trigger yet - be patient - the price swings up and down are dramatic - wait for another dip. In the long term it looks like they are going to find lots of gold but the juniors seem to be out of favor right now so i’ think there will be another chance to jump in before it’s big move north.
Hey Lowjack - was feeling much smarter two weeks ago. Still very optimistic about the long term bet I made. If the rocket ship falls to $6.15 in the short term, I will be nibbling along the way.
Hey SeaBlue - if Alexco keeps on track with growing production and adding to reserves I think this one should reward us well the next few years
Thanks for the update Pro-Life — great news and results
Was expecting more news flow on this company when I bought in a few months ago. Hope good news is on the way.
Love the prospects for this company - hopefully the stock price will reflect the value inherit in this land package sooner rather than later. Been a bruising summer for many of the juniors.
Hi Pyrostocks, hope you procrastinated and bought in last week instead of a few months ago
This board has been awfully quiet. Have been a shareholder for over 2 decades - optimistic that when silver cracks through $30 again this fall, i might get my money back on this slacker!
Grabbed more shares two weeks ago at $1.60. Looking forward to alexco hitting a new high this fall and a quick double on that bet! Been riding this horse for a long time - be nice to finally cash in on this roller coaster chart.
If the Shelf Prospectus is approved the first offering should be a preferred offering with warrants to existing shareholders before they go out to the open market and dilute our investment once again.