Bobwins - Congrats on a great trade. I am doing the same thing this morning. I already have some FMA but it looks too compelling not to buy more. I also sold EXN.V and moved the money to FR.TO. I got an email from "Toby Hansen", he talks about warrants and I am going to dig up the ticker and buy some. I will post it here when I track it down. (I have been puting in monster days at my day job and coaching high school baseball, not much time for anything else.)
3) First Majestic (FR.TO, FRMSF): First Majestic is my top pick of silver
producers. First Majestic 2008 production is expected to be over 6 million
ounces of silver with cash cost of $6/oz. Their production numbers are up over
200% from 2006, yet the stock is roughly at the same price. I use as one of my
valuation tools for stocks comparing companies with similar production. Hecla
(NYSE -HL) has a flat production profile of 6 million ounces per year for the next
several years. Their market cap is $1.5 billion. First Majestic’s current market
cap is under $300 million. Hecla has lower cash costs to produce an ounce of
silver, but First Majestic has roughly one fifth the market cap. One of the primary
reasons First Majestic has not been recognized by the market is due to its lack of
self promotion. They have no presentation on their website and don’t actively
attend mining conferences. Their brilliant execution to plan should begin to get
noticed by investors. I highly recommend purchasing their newly minted A series
warrants. Strike price is C$7.00 with expiry in March 2010. They have recently
traded around C$0.90, which means you can get exposure to the stock for about
a quarter the cost. What Company Website: www.firstmajestic.com.
