Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Canadian First Majestic Silver (TSX:FR)(NYSE:AG) Tuesday reported its revised NI 43-101 technical report and pre-feasibility study for its Mexican silver mine Del Toro, with significantly better results.
The company decided to restate the previously released pre-feasibility study dated March 31, 2012, due to better metallurgical results and enhanced economics.
The new resource estimates consist of 76.5 million ounces of silver equivalent in measured and indicated resources, plus an additional 81.8 million ounces contained in inferred resources.
Total production is estimated to reach 7.2 million silver equivalent ounces, containing 5.4 million pure silver ounces in 2014.
The miner also said that after-tax net present value was bolstered by 30% to $191.1 million, using a $25 per ounce silver price, at a 5 per cent discount rate.
Shares of First Majestic in Toronto rose 4.7% to $18.69, after the announcement.
