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Posts Tagged ‘First Majestic’

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

Disclaimer:

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.

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.

FIRST MAJESTIC SILVER CORP.

“signed”

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

Just yesterday we were talking about the great cash position of First Majestic. We think they have used their money wisely in completing this acquisition, and will continue to watch this company closely.

First Majestic Press Release:

First Majestic Completes Acquisition of Surface Rights, Royalties and Infrastructure at Real de Catorce Silver Project

VANCOUVER, November 10, 2010 – First Majestic Silver Corp. (“First Majestic”) (TSX: FR) is pleased to announce the closing today of the acquisition of all the real estate interests including the original mill and infrastructure and underlying royalties and bonuses which were associated with the Real de Catorce Silver Project in San Luis Potosi State, Mexico.

The total purchase price of US$3,000,000 consists of US$1,500,000 cash and the issuance of US$1,500,000 in common shares of First Majestic equalling 152,798 shares at a deemed price of $9.91 per share based on the volume weighted average of the past five days trading. The package includes title to all of the land underlying the Santa Ana Hacienda located within the Real de Catorce property, together with all associated buildings and certain historic geological and proprietary mining information relating to the project.

The Real de Catorce Silver Mine which was acquired in November 2009, had been subject to a 3% net smelter royalty (“3% NSR”), of which 1.75% could be acquired for a total price of US$1.75 million, if paid prior to March 15, 2014, otherwise the total purchase price would increase to US$2.1 million. In addition, the previous owner (Normabec) had agreed to acquire the surface rights, the buildings located thereon which cover the location of the previous mining operations, and all technical and geological information, in consideration for a single payment of US$1.2 million to be made by December 2010. The Company was also obligated upon commencement of commercial production, to pay an additional US$200,000 to the previous owner.

The acquisition by the Company today replaces the above mentioned total cash payments of between $3.15 and $3.4,with a total purchase price of US$3.0 million in cash and shares, and removes entirely any future NSR on the Real de Catorce project.

The Company is currently evaluating its alternatives for future production in the area, including the evaluation of past exploration works in order to plan for future underground development, mining and processing plant alternatives. In the meantime, the Company is planning to rehabilitate the Santa Ana Hacienda for the purpose of opening a mining museum to help the community create new jobs and increase the economic opportunities in the area.

The shares issued in this agreement will be subject to a four month hold period from the date of issuance under applicable Canadian securities laws.

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.

FIRST MAJESTIC SILVER CORP.

“signed”

Keith Neumeyer,
President & CEO

Source: Company website

The number one winner in our portfolio so far is announcing yet another record quarter! We are proud to have First Majestic in our portfolio. Bought in September 2009 @ CAD$2,66 this means a 343.2% gain! Using today’s intra-day’s high of CAD$ 11,79 ; At the moment of this post down to CAD$ 10,17 (largely the result of the lower silver intra-day, not a surprise…); We will keep First Majestic in our portfolio, and are confident that their strong management will keep us giving these  wonderful results. The fact that the company is now debt free, and has a lot of cash on hand, means they are probably silently shopping around to see if there is a silver junior they can take over. This company makes us hope this gold/silver correction of today continuous into the week, so we might consider to announce a buy alert for this company, and buy some more stock for ourselves.

First Majestic Press Release:

FIRST MAJESTIC SILVER CORP. (FR-T) (the “Company” or “First Majestic”) is pleased to announce the unaudited financial results for the Company’s third quarter ending September 30, 2010. The full version of the financial statements and the management’s discussion and analysis can be viewed on the Company’s web site at www.firstmajestic.com or on SEDAR at www.sedar.com.

Third Quarter 2010 Highlights ($CAD)		Change from Q3-2009
Gross Revenue	$36.1 million	Up 114%
Net Revenue	$33.5 million	Up 144%
Mine Operating Earnings	$16.9 million	Up 307%
Net Income after Taxes	$10.3 million	Up 458%
Cash Flow Per Share (non-GAAP measure)	$0.17 per share	Up 279%
Earnings Per Share – basic	$0.11 per share	Up 450%
Silver Ounces Produced (excluding equivalent ounces of gold and lead)	1,823,370 ounces Ag	Up 95%
Silver Equivalent Production	1,920,498 eq. oz.	Up 76%
Silver Equivalent Ounces Sold	1,869,393 eq. oz.	Up 84%
Total Cash Costs per Ounce	US$ 7.42	Down 14%
Direct Cash Costs per Ounce	US$ 5.79	Up 4%
Average Revenue per Ounce sold	US$ 18.57	Up 23%
Cash and Cash Equivalents (as at Sept 30 th)	$25.5 million	Up $19.6 million

Results of Operations

Consolidated gross revenue (prior to smelting & refining charges, and metal deductions) for the quarter ended September 30, 2010 increased 114% to $36.1 million (US$34.7 million) compared to $16.8 million (US$15.4 million) for the quarter ended September 30, 2009, for an increase of $19.2 million. Compared to the second quarter ended June 30, 2010, consolidated gross revenue increased by $4.3 million or 13%. The increase in revenues in the third quarter of 2010 is primarily attributable to a 15% increase in silver ounces sold compared to the previous quarter. The increase in ounces sold is due to increased production from the plant at the La Encantada Silver Mine as well as from improving operating levels at the La Parrilla Silver Mine which combined to contribute a 95% increase in silver production when compared to the third quarter of 2009.

Net sales revenue (after smelting and refining charges and metals deductions) for the quarter ended September 30, 2010 was $33.5 million, an increase of 144% compared to $13.7 million for the third quarter of 2009. Net sales revenue for the quarter ended September 30, 2010 increased by 16% compared to $29.0 million in the second quarter of 2010. Smelting and refining charges and metal deductions decreased to 7% of gross revenue in the third quarter of 2010 compared to 19%of gross revenue in the third quarter of 2009, due to a shift in the production mix toward silver doré which is a benefit from the new cyanidation plant at La Encantada. Average smelting charges for doré in the third quarter of 2010 were US$0.39 per silver ounce as compared to US$3.84 per silver ounce for concentrates.

Net income after taxes was $10.3 million in the third quarter of 2010 resulting in basic earnings per common share (“EPS”) of $0.11, compared to a net income in the third quarter of 2009 of $1.8 million or an EPS of $0.02. Net income for the third quarter of 2010 was after taking a non-cash future income tax provision of $3.5 million or $0.04 per share and a foreign exchange loss (due to a stronger Peso) which increased by $1.0 million or $0.01 per share over the previous quarter, when net income after taxes was $8.9 million and basic EPS was $0.10.

Mine operating earnings for the third quarter of 2010 increased by 307% to $16.9 million, compared to mine operating earnings of $4.1 million for the third quarter of 2009, and are associated with an increase in net revenue during the third quarter of 2010. When compared to the second quarter of 2010, mine operating earnings increased by 29% from $13.1 million to $16.9 million.

Operating income increased by 617%, or $11.8 million, to $13.8 million for the quarter ended September 30, 2010, from $1.9 million for the quarter ended September 30, 2009, due to the 84% increase in ounces sold and the 23% increase in average US$ revenue per ounce of silver sold. When compared to the second quarter of 2010, operating income increased by 38% from $10.0 million to $13.8 million.

Production of silver, excluding any equivalents from gold, lead or zinc, increased 95% compared to the third quarter of 2009. The Company produced 1,823,370 ounces of silver in the current quarter, 1,538,798 ounces of silver in prior quarter and 935,996 ounces in the third quarter of 2009. In the current quarter, 95% of First Majestic’s revenue resulted from the sale of pure silver making it the purest silver producer relative to its peers.

Total silver equivalents production for the third quarter of 2010 increased 76% from the same quarter of the prior year and 16% from the prior quarter to 1,920,498 ounces of silver equivalents consisting of 1,823,370 ounces of silver, 323 ounces of gold, 1,248,086 pounds of lead and 228,517 pounds of zinc. This compares to the 1,089,481 ounces of silver equivalents produced in the third quarter of 2009, which consisted of 935,996 ounces of silver, 732 ounces of gold, 1,690,354 pounds of lead, and 8,913 pounds of zinc and compares with production in the previous quarter of 1,656,165 ounces of silver equivalents consisting of 1,538,798 ounces of silver, 541 ounces of gold and 1,494,548 pounds of lead.
In the third quarter of 2010, the Company sold 1,869,393 ounces of silver equivalent at an average price of $19.30 per ounce (US$18.57) compared to 1,018,417 ounces in the third quarter of 2009 at an average price of $16.54 per ounce (US$15.07), representing an increase of 84% in shipments over the same quarter in 2009 and a 15% increase over the preceding quarter. The average trading price for silver in the third quarter was US$18.96.

The new La Encantada cyanidation plant achieved average throughput of 3,477 tonnes per day in the third quarter compared to 2,900 tonnes per day in the second quarter. The La Encantada plant produces silver doré bars which are 93-97% silver with small amounts of lead, gold and other metals making up the balance of the contents in these bars. The economic differences between doré and concentrate production are significant and are beginning to reflect in improved financial numbers. The economics of switching from concentrate production to doré production resulted in a 56% savings of smelting and refining costs per silver ounce for consolidated operations in the third quarter of 2010 compared to the third quarter of 2009.

Total cash costs per ounce (including smelting, refining, metal deductions, transportation and other selling costs, and byproduct credits, which is a non-GAAP measure) for the third quarter of 2010 was US$7.42 per ounce of silver compared to US$8.64 per ounce of silver in the third quarter of 2009 and US$8.20 per ounce in the second quarter of 2010. The cost decrease was attributed to reduced smelting & refining costs (US$1.34 per ounce this quarter versus US$3.08 per ounce for the same quarter last year) related to the converting the production at La Encantada plant to doré production instead of concentrate production.

On a year to date basis, the Company’s cash position has increased by $19.6 million to $25.5 million at the end of the third quarter, and working capital increased by $19.3 million to $24.1 million over the same period. The Company achieved these increases while also investing $11.6 million in plant and equipment and $10.0 million in its mineral properties. In addition, in September and October the Company repaid in advance 100% of the $4.1 million balance of the FIFOMI loans outstanding leaving the Company debt free, excluding the small prepayment facility and capital leases.

In Summary

First Majestic has delivered another quarter of strong operating results thanks to the additional production, earnings and cash flow from operations including the new plant at the La Encantada Silver Mine, which have also come at a time when there’s been a significant increase in the price of silver, which combined, have had an extremely positive impact on the Company’s balance sheet on a year to date basis.

“These are clearly very exciting times in the silver commodity markets and a very exciting time for the Company to be reaping the rewards of over six years of hard work, and which have delivered increased capacities into a very buoyant market. We will continue to focus on the fundamentals of minimizing cash costs and increasing production as we grow First Majestic into a senior silver producer” commented Keith Neumeyer, President and CEO of First Majestic.

First Majestic is a producing silver company focused in México and is aggressively pursuing its business plan of becoming a senior silver producer through the development of its existing mineral property assets and the pursuit through acquisition of additional mineral assets which contribute to the Company achieving its aggressive corporate growth objectives.

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

FIRST MAJESTIC SILVER CORP.
“signed”
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:

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Copyright © 2010 FIRST MAJESTIC SILVER CORP. (TSX: FR) All rights reserved. For more information visit our website at http://www.firstmajestic.com/ or send email to investor@firstmajestic.com .

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First Majestic Silver Corp. (TSX:FR)(OTCQX:FRMSF)(FRANKFURT:FMV)(WKN:A0LHKJ) -

Highlights

• Silver production increases by 18% from previous quarter to a quarterly record of 1,823,370 ounces
• Total equivalent silver production equalled 1,920,498 ounces for the quarter
• Total silver production amounted to 95% of total equivalent silver production
• Total processed ore in the quarter increased by 7% from previous quarter to a record 434,221 tonnes

First Majestic Silver Corp. (“First Majestic” or the “Company”) is pleased to announce that production in the third quarter ending September 30, 2010 increased to a new Company record of 1,920,498 equivalent ounces of silver representing a 16% increase over the previous quarter and a 76% increase over the third quarter of 2009.

The total equivalent silver production for the quarter consisted of: 1,823,370 ounces of silver, representing an 18% increase from the previous quarter; 1,248,086 pounds of lead representing a 16% decrease from the previous quarter; and 377 ounces of gold representing a decrease of 36% compared to the previous quarter. Total silver production compared to the third quarter of 2009 increased by 95%.

The total ore processed during the quarter 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 a new record of 434,221 tonnes milled in the quarter representing a 7% increase over the previous quarter.

Production Details Table:

	Quarter Ended September 30, 2010	Quarter Ended June 30, 2010	% Change +/-
Total silver ounces produced	1,823,370	1,538,798	18%
Total equivalent silver ounces produced	1,920,498	1,656,165	16%
Total ore processed/tonnes milled	434,221	404,350	7%
Total pounds of lead produced	1,248,086	1,494,548	-16%
Total gold ounces produced	377	593	-36%

Other Developments

The Company’s underground development in the third quarter consisted of 6,207 metres, compared to 5,063 metres completed in the previous quarter. Diamond drilling activity in the quarter consisted of 7,819 metres compared with 3,090 metres completed in the previous quarter. The expanded drilling program consisted of definition drilling to assist in mining activity and resource upgrading and exploration at the Company’s three mines.

Now that the La Encantada mill expansion has effectively achieved full capacity, the Company’s focus for the next 15 months will be: 1) expanding the Company’s La Parrilla operation, 2) concluding a final decision on size and timing of a new mill construction at the Company’s Del Toro Silver Mine, and 3) expanding the NI 43-101 compliant Reserves / Resources at each of the Company’s five projects (La Encantada Silver Mine, La Parrilla Silver Mine, San Martin Silver Mine, Del Toro Silver Mine and the Real de Catorce Silver Project).

At the La Encantada Silver Mine:

• The new 3,500 tpd cyanidation mill achieved full production during the quarter. Average throughput reached 3,477 tpd for a total of 295,328 tonnes (dry metric tonnes) compared to 2,908 tpd for the second quarter. Full capacity is based on a 330 day work year (85 days for the third quarter) which equates to 297,500 tonnes which confirms the mill is running at 99% of capacity.
• Cost efficiencies are expected to improve compared to the second quarter as throughput has reached capacity in the third quarter.
• In July, the main access to the mine from Muzquiz, Coahuila, was interrupted by Hurricane Alex. With cooperation with other mining companies in the area, efforts were combined to re-open roads. The interruption was short lived with minimal delays in transportation of supplies. Further work is underway to improve the local infrastructure to prevent future interruptions.
• Now that the throughput in the mill has reached capacity, the focus in the fourth quarter will be to refine operations in the areas of recoveries, smelting and other areas which are expected to improve costs and efficiencies going forward.

At the La Parrilla Silver Mine:

• Further to the July 8, 2010 news release discussing the plan to expand the La Parrilla operation; final engineering design and planning is expected to be completed in the fourth quarter. Permitting is expected in the first quarter of 2011, with groundbreaking commencing immediately afterwards. The current plan is to expand this operation to 1,600 tpd from its current capacity of 850 tpd, effectively doubling production from current levels by the end of 2011. Once final plans are completed, the Company will announce further details.
• During the quarter the Company acquired, through staking, an additional 16,630 hectares of land which created a contiguous land block of 69,867 hectares surrounding the La Parrilla mining operations. Several large geological anomalies are now contained within First Majestic’s land holdings. Geophysical regional exploration and mapping is currently being carried out in order to define a broad diamond drill program scheduled for 2011.

At the San Martin Mine:

• The 2010 surface diamond drilling exploration program commenced in the second quarter. The La Esperanza vein, which runs parallel to the main Zuloaga vein, was discovered and sampled in mid 2009. The sampling returned high anomalous values of silver on surface resulting in this discovery becoming a high priority target. To date, seven holes with 2,757 metres have been completed with good results. Grades ranging from 100 g/t to greater than one kilo (1,000 g/t) have been intersected. The drilling program will continue during the fourth quarter and will be evaluated for continuation into 2011.

At the Del Toro Silver Mine:

• Development was reinitiated during the month of September 2010. The current 1,000 metre ramp development is planned to contact the third ore body at a depth of approximately 300 metres (see news release dated October 28, 2008). The objective is to collect a bulk sample of approximately 5,000 tonnes and running this sample through the La Parrilla mill for metallurgical test work. This testing will allow the fine tuning and design of the final flow chart for a new flotation plant anticipated to commence construction in 2011. Bulk sampling and development will also determine the most optimal mine exploitation method. As indicated in previous news releases all permits for the construction of a new plant at Del Toro have been approved.

Mr. Keith Neumeyer, President and CEO stated: “First Majestic’s operations are exceeding budgeted levels. This is a real testament to the efforts of our management and staff at all levels of our business. It’s nice to see First Majestic shine as it continues to break new records.”

Ramon Davila, Ing., M.Sc., Chief Operating Officer for First Majestic, is the Qualified Person pursuant to NI 43-101 who reviewed this news release and oversees the mining operations.

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.

FIRST MAJESTIC SILVER CORP.

Keith Neumeyer, President & CEO

Source: Company website

FIRST MAJESTIC SILVER CORP. (FR-T) (the “Company” or “First Majestic”) is pleased to announce the unaudited financial results for the Company’s second quarter ending June 30, 2010. The full version of the financial statements and the management discussion and analysis can be viewed on the Company’s web site at www.firstmajestic.com or on SEDAR at www.sedar.com.

Second Quarter 2010 Highlights ($CAD)		Change from Q2-2009
Gross Revenue	$31.8 million	Up 102%
Net Revenue	$29.0 million	Up 122%
Mine Operating Earnings	$13.1 million	Up 679%
Net Income after taxes	$8.9 million	Up 757%
Earnings Per Share — basic	$0.10 per share	Up 900%
Cash Flow Per Share (non-GAAP measure)	$0.14 per share	Up 1300%
Silver Ounces Produced (excluding equivalent ounces of gold and lead)	1,538,798 ounces Ag	Up 86%
Silver Equivalent Production	1,656,165 eq. oz.	Up 73%
Silver Equivalent Ounces Sold	1,623,844 eq. oz.	Up 51%
Total Cash Costs per ounce	US$ 8.20	Down 10%
Direct Cash Costs per ounce	US$ 6.16	Down 2%
Average Revenue per ounce sold	US$ 18.68	Up 48%

Results of Operations

Consolidated gross revenue (prior to smelting and refining charges and metal deductions) for the quarter ended June 30, 2010 was $31.8 million (US$30.3 million) compared to $15.8 million (US$13.5 million) for the quarter ended June 30, 2009 for an increase of $16.0 million or 102%. Compared to the first quarter ended March 31, 2010, consolidated gross revenue increased by $9.9 million or 45%. The increase in revenues in the second quarter of 2010 is primarily attributable to a 25% increase in silver ounces sold compared to the first quarter ended March 31, 2010. The increase in ounces sold are due to the launch of the new cyanidation plant at the La Encantada Silver Mine and the improving operating levels at the La Parrilla Silver Mine which combined, contribute a 86% increase in silver production compared to the second quarter of 2009.

In the second quarter of 2010, the Company sold 1,623,844 ounces of silver equivalent at an average price of US$18.68 per ounce compared to 1,073,129 ounces in the second quarter of 2009 at an average price of US$12.60 per ounce, representing an increase of 51% in shipments over the same quarter in 2009 and a 25% increase over the first quarter of 2010. In the first quarter of 2010, the Company sold 1,298,659 ounces of silver equivalents at an average price of US$16.23 per ounce.

Production of silver, excluding any equivalents from gold or lead, increased by 9% over the prior quarter and 86% compared to the second quarter of 2009. The Company produced 1,538,798 ounces of silver in the current quarter, 1,409,825 ounces of silver in the first quarter of 2010 (commercial and non-commercial production), and 827,720 ounces in the second quarter of 2009. In the second quarter of 2010, 93% of First Majestic’s revenue resulted from the sale of pure silver making the Company the purest silver producer relative to its peers.

The new plant at La Encantada achieved commercial production on April 1, 2010. The design of the new plant allows for the production of silver doré bars which are generally 93-97% silver with small amounts of lead, gold and other metals making up the balance of the contents of these bars. During the second quarter, furnaces were installed allowing for the discontinuation of concentrate production. The economic differences are significant and are beginning to reflect in the financial numbers. Management completed a review of the economics of lead production and concluded that, due to the relatively small amount of lead produced historically and the current lead prices, ore was more valuable if processed directly through cyanidation rather than being floated, and thus the flotation circuit was shut down in June 2010. As a result of the discontinuation of flotation, concentrate production decreased in the second quarter and lead as a byproduct decreased by 41% to 1,494,548 pounds. The economics of switching from concentrate production to doré production resulted in a savings for La Encantada of approximately US$2.61 per ounce in the second quarter of 2010 and a savings of $1.10 per ounce for consolidated operations. The new La Encantada cyanidation plant achieved average throughput of approximately 2,900 tonnes per day in the second quarter. This average throughput is expected to increase in the third quarter.

Total commercial production for the second quarter of 2010 increased by 22% compared to the first quarter of 2010. Total production (commercial and non-commercial) for the second quarter of 2010 increased 2% from the prior quarter and 73% from the same quarter of the prior year to 1,656,165 ounces of silver equivalents consisting of 1,538,798 ounces of silver, 541 ounces of gold and 1,494,548 pounds of lead. This compares to the 957,936 ounces of silver equivalents produced in the second quarter of 2009, which consisted of 827,720 ounces of silver, 746 ounces of gold, 1,493,162 pounds of lead, and compares with production in the first quarter of 1,619,403 ounces of silver equivalents consisting of 1,409,825 ounces of silver, 857 ounces of gold and 2,542,071 pounds of lead.

Net sales revenue (after smelting and refining charges, metals deductions, transportation and other selling costs) for the quarter ended June 30, 2010 was $29.0 million, an increase of 122% compared to $13.0 million for the second quarter of 2009. Net sales revenue for the quarter ended June 30, 2010 increased by 59% compared to $18.2 million in the first quarter of 2010. Smelting and refining charges and metal deductions decreased to 9% of gross revenue in the second quarter of 2010 compared to 17% of gross revenue in the second quarter of 2009, due to a shift in the production mix toward silver doré which is a major benefit from the new cyanidation plant at La Encantada.

The Company generated net income of $8.9 million in the second quarter of 2010, or earnings per common share (“EPS”) of $0.10 compared to a net income in the second quarter of 2009 of $1.0 million or EPS of $0.01. Net income for the second quarter of 2010 included non-cash stock-based compensation expense of $0.6 million and an income tax provision of $1.4 million. In the first quarter of 2010, net income was $3.0 million resulting in EPS of $0.03. If the revenues and expenses of the new plant were deemed commercial in the first quarter (recorded as income rather than capital) an additional $2.3 million of capitalized profits would have increased EPS in the first quarter to $0.06.

Direct cash costs per ounce of silver (a non-GAAP measure) for the second quarter of 2010 were US$6.16, compared to US$6.31 per ounce of silver in the second quarter of 2009 and US$4.94 per ounce of silver in the first quarter of 2010. The cost increase was attributed to an increase in the peso relative to the US dollar, as well as an increase in electricity and diesel costs compared to previous quarters.

Total cash costs per ounce (including smelting, refining, metal deductions, transportation and other selling costs, and by-product credits, which is a non-GAAP measure) for the second quarter of 2010 was US$8.20 per ounce of silver compared to US$9.15 per ounce of silver in the second quarter of 2009 and US$8.11 per ounce in the first quarter of 2010.

Mine operating earnings for the second quarter of 2010 increased by 679% to $13.1 million compared to mine operating earnings of $1.7 million for the second quarter of 2009 and are associated with an increase in net revenue during the second quarter of 2010. When compared to the first quarter of 2010, mine operating earnings increased by 78% from $7.4 million.

Operating income increased by 907%, or $11.2 million, to $10.0 million for the quarter ended June 30, 2010, from an operating loss of $1.2 million for the quarter ended June 30, 2009, due to the 51% increase in ounces sold and the 51% increase in average US$ revenue per ounce of silver sold. When compared to the first quarter of 2010, operating income increased by 114% from $4.7 million.

During the quarter ended June 30, 2010, the Company invested $2.6 million in its mineral properties and a further $3.0 million in additions to plant and equipment on a cash basis. This compares to $3.2 million invested in its mineral properties and a further $5.9 million in additions to plant and equipment on a cash basis in the second quarter ended June 30, 2009. When compared to the first quarter of 2010, the Company invested $3.4 million in its mineral properties and a further $1.4 million in additions to plant and equipment on a cash basis.

In Summary

First Majestic has experienced its first quarter of operating results incorporating the additional production, earnings and cashflow from the operations of its new plant at the La Encantada Silver Mine and, as expected, the results are clearly record breaking. The increased production of silver, reduced smelting and refining costs and firm silver prices are combining to provide the Company a quantum increase in earnings and cashflow for this past quarter.

“We would like to thank everyone who assisted in the construction, financing and launching of the impressive La Encantada processing plant and look forward to continued improvements in costs and output as we further increase our daily throughput and improve our operational efficiencies” commented Keith Neumeyer, President and CEO of First Majestic. “Management looks forward to continued improvements in production, earnings and cashflow as the La Encantada operation matures over the coming quarters”.
First Majestic is a producing silver company focused in México and is aggressively pursuing its business plan of becoming a senior silver producer through the development of its existing mineral property assets and the pursuit through acquisition of additional mineral assets which contribute to the Company achieving its aggressive 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.

FIRST MAJESTIC SILVER CORP.

“signed”

Keith Neumeyer, President & CEO

Source: Company website

First Majestic Silver Corp. (“First Majestic” or the “Company”) is pleased to announce that production in the second quarter ending June 30, 2010 increased to a new company record of 1,651,411 equivalent ounces of silver representing a 2% increase over the previous quarter and a 72% increase over the second quarter of 2009.

The total equivalent silver production for the quarter consisted of 1,538,798 ounces of silver, representing a 9% increase from the previous quarter, 1,494,532 pounds of lead representing a 41% decrease from the previous quarter, and 541 ounces of gold representing a decrease of 37% compared to the previous quarter. Total silver production from operations have increased by 86% when compared with the second quarter of 2009.

The total ore processed during the quarter 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 a new record 404,349 tonnes milled in the quarter representing a 20% increase over the previous quarter.

Other Developments

The Company’s underground development in the second quarter consisted of 5,063 metres, compared to 5,100 metres completed in the previous quarter. There was 3,090 meters of diamond drilling completed in the quarter which consisted of definition drilling to assist in mining activity, resource upgrading and exploration at the Company’s three mines.

At the La Encantada Silver Mine:
The new 3,500 tpd cyanidation mill achieved commercial production effective April 1, 2010. Starting this quarter, all revenues and associated operating costs will be treated as commercial production rather than being capitalized, as was the case in the first quarter.
Average throughput in the new cyanidation plant averaged 2,908 tpd in the second quarter.
With the cyanidation plant operating at close to capacity a decision was made to suspend production of lead concentrate through the flotation circuit and focus on silver Doré production only, thereby dramatically reducing smelting and refining costs.
As throughput reaches capacity in the third quarter and other efficiencies are achieved, higher production levels are anticipated.
At the La Parrilla Silver Mine:
The completion of a new three kilometre ramp at the Quebradillas mining area in the first quarter is now having a positive impact on current production levels.
Due to a large high grade ore body that was discovered in 2006, this large sulphide area will allow for the eventual expansion of the La Parrilla mill which is now in the planning stages.
This mill expansion will allow for the production of zinc concentrates in addition to the lead concentrate and Doré bars currently being produced.
At the San Martin Mine:

The 2010 drilling exploration program from surface commenced in the second quarter. The La Esperanza vein which was discovered and sampled in mid 2009 and runs parallel to the main Zuloaga vein returned high anomalous values of silver on surface and is a high priority target for San Martin.
Mr. Keith Neumeyer, President and CEO had the following to say about the recent production results: “First Majestic continues to break new records and we are extremely pleased with the second quarter results. Our operational team continues to demonstrate that they are committed to increasing efficiencies to achieve our production goal of 6.35 million silver equivalent ounces in 2010.”

Ramon Davila, Ing., Chief Operating Officer for First Majestic, is the Qualified Person who reviewed this news release and oversaw the mining operations.

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.

FIRST MAJESTIC SILVER CORP.

“SIGNED”

Keith Neumeyer, President & CEO

To see the table and read this press statement on the First Majestic website click here