Topic: How To Invest

Q: Pat, can I get your advice on whether First Majestic Silver is a buy or not? Thank you.

Article Excerpt

A: First Majestic Silver Corp., $10.50, symbol AG on Toronto (Shares outstanding: 484.1 million; Market cap: $4.9 billion; www.firstmajestic.com), is a silver and gold producer with four operating mines in Mexico and several exploration and development properties in Mexico and the U.S. The company’s four mines in Mexico are as follows: the San Dimas silver/sold mine, the Santa Elena silver/gold mine, the La Encantada silver mine and the Cerro Los Gatos underground silver mine in Chihuahua (more on that mine below). It also owns the Jerritt Canyon gold project in northeastern Nevada. First Majestic’s goal is to become the world’s largest primary silver producer. In January 2025, the company completed the acquisition of Vancouver-based Gatos Silver (symbol GATO on Toronto) for $970 million (all figures except share price and market cap in U.S. dollars) in stock. Gato shareholders received 2.55 shares of First Majestic for each share they held in Gatos. First Majestic shareholders now own 62% of the combined entity, while Gatos…