Gold and Silver Updates


What occurred

Shares of silver and gold miner First Majestic Silver (NYSE:AG) rose as a lot as 10% or so on Jan. 20. By roughly 2 p.m. EST the inventory was nonetheless holding on to a virtually 9% acquire. Investor enthusiasm was seemingly pushed by the plain and a extra news-driven motive.

So what

As a treasured metals miner, First Majestic Silver’s prime and backside traces are tied to the worth of the commodities it produces. With each gold and silver costs up at the moment, it isn’t surprising that traders would make stronger the inventory. Silver was up only a contact greater than gold, which is not surprising given the steel’s historical past of being a extra risky commodity. However this in all probability wasn’t the one issue at play.

A miner holding up a silver nugget.

Picture supply: Getty Pictures.

First Majestic additionally launched a enterprise replace that was fairly spectacular, given the coronavirus pandemic backdrop that ended up shutting a few of its mines in 2020. Complete silver manufacturing of 11.6 million ounces was on the excessive finish of the miner’s revised full-year steering vary. Manufacturing within the fourth quarter elevated 9% sequentially, with multi-year manufacturing highs from two of its key mining property (San Dimas and La Encantada). Though gold manufacturing wasn’t fairly as inspiring, the corporate ended 2020 with practically $240 million of money that it might probably put to good use on growth tasks it has within the works.  

Now what

All in, it is smart that traders would carry First Majestic’s shares at the moment given rising treasured metals costs and a fairly strong enterprise replace. That mentioned, traders should not get too enthusiastic about in the future’s transfer right here. Treasured metals are risky, notably silver, so at the moment’s massive acquire may disappear tomorrow. Nevertheless, the manufacturing numbers do counsel that fourth-quarter 2020 and full-year earnings will probably be fairly good studying after they get launched on Feb. 18.


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