posted
May 17, 2011 by News Gatherer
Disclosure: I am long-AG.
This is something that applies to all producers of silver, which operate outside the United States, and when the dollar resumed its journey south, we can expect this kind of appreciation of the currency increase. First Majestic Corporation has a market capitalization of 1.59 billion dollars, while P / E of 46.54, EPS of $ 0.37, with an average volume of about 2.0 million shares traded per day. Its activities are limited exclusively to Mexico, it appears that part of the increase in cash costs is due to traffic between the U.S. dollar and the Mexican peso, the peso has appreciated by about 3% against the U.S. dollar.
In addition, some inflation in the prices of materials and energy used in the treatment of the money goes. A weaker dollar means more weight and therefore a higher cost of money of the United States by name. We try to combat rising costs with an aggressive growth strategy to provide better performance and economies of scale as we continue to focus on strengthening our production levels in the short and long term. The production outlook remains unchanged, since the actual cost of view, but we will revise our estimates of costs, after the second quarter to determine whether viewing our cash cost may remain constant for 2011.
First Majestic Silver Corporation meets our criteria and we will try to accumulate more reserves in the coming months. Our investment strategy is not to hold hundreds of stocks and hope for a multi-container somewhere along the line, but to acquire a small number of basic money-makers for our business as we know and understand .
httpv://www.youtube.com/watch?v=aE0X8ip5Vuk&feature=youtube_gdata
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