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My Method Explained. How To Build Up Your Own Retirement Plan In 3 Steps

Step 1: Pick the right company!

In the beginning of 2009 I finally realised that the continuous devaluation of fiat currencies like the US Dollar and the Euro was likely to go on the coming years. Both in the USA and in Europe money is being printed at alarming rates, yet the only thing you’re hearing lately is that we are all doing so well! Well, don’t believe it! All that money being printed has to go somewhere, and there you have your equity bull-market explained. I realised that true value could only be stored in silver and gold.  How could I benefit from the enormous gold and silver bull-market that I was expecting. The largest leverage to gold and silver prices is always found in junior mining stock. I am a big admirer of Warren Buffet and believe in value investment. Using value investment principles and after months of research and reading piles of year-reports and books, I finally picked six companies.  With all my saving money transferred to a on-line broker I bought shares of six companies.

Step 2: Take your profit, and gain “free” stock.

With prices of gold and silver soaring in 2010 just like I expected, many shares in my portfolio were exceeding 250% gains. So I sold about 40%-50% of all my shares in these companies getting back even more than the original investment. The remaining shares in these companies were now basically “free” shares. Since large corrections in gold and silver prices are likely each time after another record is shattered, I just waited for this correction, and used the money to GO BACK TO STEP 1!!! So far I picked five new companies to invest in, and am looking for one more to complete my second round of step 1. With prices of gold and silver prices rising for years to come I hope to repeat step-1 and step-2 many times. I now have created what I call step-3 companies.

Step 3: Wait, wait, wait

As you might have noticed I only sold about half the shares of the companies I picked. All the companies I picked mainly have developed from explorers to producers. I intend to NEVER SELL the shares I own. There might always be a exception in special circumstances however. Where will these companies be in 10, 20 or even 25 years from now. I strongly believe that all companies will continue to develop, mergers take overs etc. who knows…. But with governments making the same mistakes over and over again, the way up for gold and silver still is very long. In the years to come the new Goldcorp, Barrick or Rio Tinto will present its-self and I am certain that parts of my portfolio will be or be part of that company. It is very likely that companies in the portfolio will start paying dividends at a certain point (e.g. 5-15 years)

These step-3 companies are my retirement, my protection against inflation!

Can you prove this?

Well, step-1 and step-2 have been proven already. Step-3 only partially.

How did you do so far then?

Bought in 2009:

International Royalty Company: Got lucky on that one, made a 101% profit in a take-over battle just months after buying it. Sold all shares.

Avino Silver & Gold mines: bought @ US$0.63 : sold 40% of my shares @ US$2,57 (a 307% gain) creating a step-3 company for my portfolio.

First Majestic: bought @ CA$2.66 : sold 45% of my shares @ CA$10.88 (a 309% gain) creating a step-3 company for my portfolio.

Great Panther: bought @ CA$0.84 : sold 50% of my shares @ CA$2.75 (a 227% gain) creating a step-3 company for my portfolio.

Minera Andes: bought @ CA$0.72: sold of my shares @ CA$2.56 (a 255% gain) creating a step-3 company for my portfolio.

Silver Wheaton: bought @ US$9,95 and a second step-1 for Silver Wheaton @US14,95 in 2010. I sold 50% of all my Silver Wheaton shares @US$39.07 creating a step-3 company for my portfolio.

Bought in 2010:

Seabridge Gold: bought @ US$28.36 is still a step-1 company! We think it might take up to 3 or 4 years to reach step-2 but if investors discover the true value of this company it might come much sooner as well!

Rubicon Minerals: bought @ CA$3.49 today the stock closed @ CA$5.49 meaning a 57.3% gain. In between step-1 and step-2.

Copper Creek Gold (Highly Speculative!!): bought @ CA$0.075 today the stock closed @ CA$0.09 meaning a 20% gain. Still step-1, but highly speculative!

Excellon Recources: bought @ CA$0.99 today the stock closed @ CA$1.18 meaning a 19% gain. Still a step-1 company!

Brigus Gold: bought @ US$1.88 today the stock closed @ US$1.77 meaning a 5,9% loss. Very much a step-1 company!

What do I expect in 2011?

More volatility is likely to rule the commodity markets. Food prices will soar, the oil price will rise gradually as will the price of copper. For a gold rally we will have to wait till August again, then I see a spot price of about $1600-$1700 before the end of this year. Silver will outperform gold again in 2011. I expect the price of silver to be less volatile than the price of gold. When the gold rally in August commences again, silver will shoot up like a star! During the year I think the gold/silver ratio will decline gradually as a result of this. At the end of 2011 I expect the gold/silver ratio to be below 35. IF this happens, I will be able add some step-3 companies to my portfolio from the 2010 stock picks, and use the money at the next correction to buy new step-1 companies.

Alexander Aardema, CEO @ CashInfo.org


The information provided on or within this article, website or in documents available herein is for assistance only and is not intended to be and must not be taken alone as the basis for an investment decision. Each recipient of this information should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities offered hereby, and should consult its own legal counsel and financial, accounting, regulatory and tax advisors to determine the consequences of such an investment.

First Majestic: Production up 72% to 6.53 million oz Ag in 2010; Exceeds Guidance by 9%

Clearly 2010 was a fantastic year for First Majestic. Just have a look at the development of the share price the last year. The 52-week trading range is CA$3.04-CA$15.30 The company got a NYSE listing as well under the ticker AG, very nice ticker by the way! We bough shares of First Majestic in September 2009 @ CA$2.66 Recently we sold 45% of our shares at a 309% profit! Using today’s opening of CA$13.49 we have a 407% gain on our remaining “free” shares.

When do you sell?

This sale had nothing to do with First Majestic, when a stock in our portfolio is exceeding 250% gains we sell about 40%-50% of our shares. This is just the method we use  to create “free” shares for our portfolio. Once we have these free positions in our portfolio we intend to NEVER sell them, unless a share price is clearly much to high. It could mean years of waiting (e.g. 10-20 years!), but at a certain point the companies will no longer be junior explores. Many things can happen from mergers to take-overs new properties, etc. etc. The point is that it is very likely that some of these positions will start paying dividends at some point. We use the money from the successful sales  to buy shares of new interesting companies. The goal is to do the same with these companies and thus building a very solid and ever growing portfolio. The best retirement plan ever!

First Majestic News Release:

First Majestic Silver Corp. (“First Majestic” or the “Company”) is pleased to announce that production in 2010 reached 7,024,055 equivalent ounces of silver, representing a 62% increase over 2009 from 4,337,103 equivalent ounces of silver.

The equivalent silver production for 2010 consisted of 6,529,325 ounces of silver, representing a 72% increase from the prior year, 6,404,227 pounds of lead, representing a 3% decrease from the previous year, and 2,152 ounces of gold, representing a decrease of 19% compared to the previous year. Total silver production as a percentage of total production amounted to 93% making First Majestic the purest silver company in the world.

Company guidance released on January 11, 2010 stated, “Production is expected to exceed 6.0 million ounces of silver in 2010″ which was in fact exceeded by a strong 9%. As a result of the current expansion underway at the La Parrilla Silver Mine and other operational improvements at the La Encantada and San Martin Silver Mines, production is anticipated to exceed 7.5 million ounces of silver in 2011.

In addition to further increases in production expected for 2011, the Company is also expanding its exploration budget. The current 2011 budget calls for 47,800 metres of drilling over the Company’s five core projects for a total expenditure of US$7,137,500. This exploration program compares to the total of 17,322 metres drilled in 2010, and total expenditures equalling US$1,897,280. It is further anticipated that new updated NI 43-101 Technical Reports will be released on each project in late 2011 or early 2012.

With respect to the fourth quarter, total ore processed at the Company’s three operating silver mines, the La Encantada Silver Mine, the La Parrilla Silver Mine and the San Martin Silver Mine, amounted to 467,175 tonnes milled in the quarter representing an 8% increase over the previous quarter. The overall average silver head grade in the quarter for the three mines decreased slightly from the previous quarter to an overall head grade of 207 g/t of silver. The combined recoveries of silver also decreased slightly from 58% to 57%. This was due to the much larger La Encantada operation as it is primarily reprocessing old tailings. As the mix of ore from the mine increases throughout 2011, these recoveries are also expected to improve.

The Company developed 6,288 metres underground in the fourth quarter, compared to 6,207 metres of underground development completed in the previous quarter. The total annual underground development for 2010 totalled 22,658 metres. Development has been focused on increasing the Reserve and Resource preparation ratios at the three operating mines. Due to the expanding production levels anticipated in 2011 and 2012, the Company’s development budget is being increased to US$21,741,183 in 2011 from $12,335,119 in 2010.

Also, the diamond drilling programs totalled 6,104 metres of definition drilling in the quarter, for a 2010 annual total of 17,322 metres of drilling completed at the Company’s three mines. Drilling at the Company’s two development projects, the Del Toro Silver Mine and the Real de Catorce Silver Project is expected to commence in early 2011.

As a result of the efforts and work completed in 2010, some of the improvements and advances made during the year included:

At the La Encantada Silver Mine:

• The new 3,500 tpd cyanidation plant, which was inaugurated on November 19, 2009, reached full capacity at the end of the second quarter of 2010 and averaged 3,750 tpd in the fourth quarter.
• The new Buenos Aires ore body, which is being developed and prepared for production will allow the mine ore extraction to increase 1,500 tpd versus the current 1,000 tpd. This improvement will have a positive effect on head grades and recoveries.
• New areas of reserves and resources had been discovered and developed at the San Francisco vein and at the hanging wall of the 660 ore body.
• Consolidation of the electric generation into a single larger and more modern generation plant was completed during the year, allowing for the suspension of the operation of the much older generation plants which will result in substantial savings on parts, repairs and fuel efficiency.
• Two new induction furnaces began operation in December using the latest technology in smelting precipitates resulting in a much more efficient operation, lower costs and better quality silver doré bars.

At the La Parrilla Silver Mine:

• Development of a new ramp system was completed in the La Blanca mine which has now connected levels 9 and 10 of the Rosarios mine, improving logistics and which is expected to reduce costs due to the improved transportation of ore from the lower levels of the mine to surface.
• Completion of the engineering work for the current expansion program launched in December 2010. This expansion will result in the mill capacity reaching 1,600 tpd from the current 850 tpd and will effectively double the current output of the La Parrilla operation from approximately 1.5 million ounces to 3.0 million ounces of silver equivalent annually by the end of 2011.

At the San Martin Silver Mine:

• The discovery of the new San Pedro area in 2009 led to an extensive underground drilling program which continues today. This program is based on drilling systematic short holes into the foot wall of the Zuloaga vein. The result has been extremely favourable throughout 2010 with several discoveries of minable mineralization. These new discoveries have allowed for consistent throughput and improved economics at the operation and are expected to bring improved results into 2011.
• The previously announced discovery of a parallel structure to the main Zuloaga vein, the La Esperanza vein, discovered through surface geology was drilled in the last two quarters of 2010. Eight diamond drill holes were successfully completed, of which six intersected mineralization. The current program for 2011 is to drive a 500 metre ramp into the structure to open up and begin the development of a new potential resource.

At the Del Toro Silver Mine:

• In December 2009, the Environmental Impact Statement for a new flotation plant was approved by the SEMARNAT and the Change of Use of Land Permit was received in the first quarter of 2010.
• At the end of November 2010, the underground development at the Del Toro Silver Mine was reinitiated. The current objective is to prepare a new underground drilling station and to access the No. 3 Ore Body at depth. Once this is achieved by the middle of 2011, a large bulk sample can be collected for final metallurgical testing. This testing will allow for the final design of the new mill operation currently in the planning stage.

At the Real de Catorce Silver Project:

• During 2010 the Company evaluated and confirmed the geological data obtained as a result of the acquisition in late 2009 of this project. In November 2010, First Majestic successfully completed the purchase of the land underlying the Santa Ana Hacienda located within the Real de Catorce property, together with all associated buildings and infrastructure, the outstanding royalty and certain historic geological and proprietary mining information.
• Construction of a mining museum is planned to commence in early 2011 which is designed to clean the impressive underground working areas and restore the above ground buildings to a suitable condition in order to allow for tourist access. This new mining museum will bring needed employment to the area.

Mr. Neumeyer stated, “2010 has been an impressive year for First Majestic on all counts. Not only did our silver production increase by over 70%, the silver price performed very well and the Company’s shares became the third best performing stock on the S&P/TSX index registering a gain of over 240% year over year. We were also successful in listing our shares on the NYSE. Management is committed to staying focused on increasing production and we’re reviewing plans to continue to grow our production substantially over the next three years. Congratulations go out to our entire team in Canada and Mexico.”

First Majestic is a producing silver company focused in Mexico and is aggressively pursuing its business plan to become a senior silver producer through the development of its existing assets and the pursuit through acquisition of additional assets that contribute to achieving its corporate growth objectives.

FOR FURTHER INFORMATION contact info@firstmajestic.com, visit our website at www.firstmajestic.com or call our toll free number 1.866.529.2807.

Keith Neumeyer,
President & CEO

Cautionary Note Regarding Forward Looking Statements

This press release contains “forward-looking statements”, within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation, concerning the business, operations and financial performance and condition of First Majestic Silver Corp. Forward-looking statements include, but are not limited to, statements with respect to the future price of silver and other metals, the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, hedging practices, currency exchange rate fluctuations, requirements for additional capital, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, timing and possible outcome of pending litigation, title disputes or claims and limitations on insurance coverage. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of First Majestic Silver Corp. to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: risks related to the integration of acquisitions; risks related to international operations; risks related to joint venture operations; actual results of current exploration activities; actual results of current reclamation activities; conclusions of economic evaluations; changes in project parameters as plans continue to be refined; future prices of metals; possible variations in ore reserves, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities, as well as those factors discussed in the section entitled “Description of the Business – Risk Factors” in First Majestic Silver Corp.’s Annual Information Form for the year ended December 31, 2009, available on www.sedar.com, and Form 40-F on file with the United States Securities and Exchange Commission in Washington, D.C. Although First Majestic Silver Corp. has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. First Majestic Silver Corp. does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.

Source: Company Website

First Majestic to List on the New York Stock Exchange

Today First Majestic has announced it will get a listing on the NYSE. The company will reach new investors and benefit from a deeper liquidity. We bought shares of First Majestic in September 2009 @ CA$2.66 using yesterday’s close of CA$13.43 this means a 404,8% gain.

First Majestic News Release:

First Majestic Silver Corp. (TSX:FR) (NYSE:AG) (the “Company” or “First Majestic”) is pleased to announce that its common shares have been authorized for listing on the New York Stock Exchange (“NYSE”). The Company expects the shares to begin trading on the NYSE on December 15, 2010 under the trading symbol “AG”. The Company will retain its primary listing on the Toronto Stock Exchange under the trading symbol “FR”.

“We’re pleased to welcome First Majestic Silver Corp, a leading Canadian miner, to the NYSE,” said Scott Cutler, EVP and Co-Head of U.S. Listings and Cash Execution, NYSE Euronext. “First Majestic is a welcome extension to our fast-growing roster of Canadian mining companies. The Company and its shareholders will benefit from the deep liquidity and global visibility offered to Canadian companies cross-listed on the NYSE.”

“First Majestic’s increased exposure from this upcoming NYSE listing is a result of management’s continued focus to bring additional value to our broadening shareholder base,” said Keith Neumeyer, President and CEO of the Company. “We look forward to introducing First Majestic to a wider audience of investors as our profile is expanded internationally.”

First Majestic is a producing silver company focused in Mexico and is aggressively pursuing its business plan to become a senior silver producer through the development of its existing assets and the pursuit through acquisition of additional assets that contribute to achieving its corporate growth objectives.

FOR FURTHER INFORMATION contact info@firstmajestic.com, visit our website at www.firstmajestic.com or call our toll free number 1.866.529.2807.



Keith Neumeyer,
President & CEO

This press release includes certain “Forward-Looking Statements” within the meaning of section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein, including without limitation, statements regarding potential mineralization and reserves, exploration results and future plans and objectives of First Majestic Silver Corp. are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements.

Source: Company website