IKN

Hereditary sloth instructs me

First Majestic (FR.to) puts in a good quarter

Here’s the link to the 2q10 financials and here’s a little list:

  • Revenues at $28.96m, up from the $18.22m in 1q10
  • Net income $8.9m (the company passes Rule One*)
  • 1.539m oz Ag produced (129k more than in 1q10)
  • The positive changes mainly due to the new La Encantada plant that went commercial on the first day of the quarter. The circuit is running pretty well, apparently.
  • Average realized price for silver, U$18.58/oz
  • Total cash costs at U$8.20/oz
  • EPS 10c/share
  • That EPS implies a fwd PE of 10.5X approx…not a knockdown bargain, but reasonable
With 92.95m shares out and a close on Friday of $4.22, that puts market cap at $392.4m. And that’s somewhere between fair and fairly cheap. I don’t own FR.to but the company is likeable, both for the numbers released today and for the good way it treats its workforce, the locals around its plants and the environment (as mentioned previously on IKN). DYODD.

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