Itinerant • 13 Comments
Kerrisdale Capital Management • 123 Comments
Jul. 27, 2015, 2:59 PM
- Canada’s silver mining sector gets some much-needed consolidation with First Majestic Silver's (AG -12.5%) friendly takeover of SilverCrest Mines (SVLC +16.6%), and the deal is praised by Desjardins Capital analyst Michael Parkin, who calculates that SVLC’s Santa Elena mine in Mexico generated impressive free cash flow of US$2.99/oz. of silver equiv. production in Q1.
- Parkin notes the deal boosts AG’s production by ~26% and improves its balance sheet by adding $30M of cash, and he thinks Santa Elena may beat its guidance this year; the mine is expected to produce 4M-4.4M silver equiv. oz., but Q1 production reached a record 1.35M silver equiv. oz.
- The analyst sees potential for a higher bid on the deal, considering Santa Elena's impressive production and SVLC is generating free cash flow and has a relatively solid balance sheet.
Jul. 27, 2015, 9:19 AM
- First Majestic Silver (NYSE:AG) agrees to acquire Silvercrest Mines (NYSEMKT:SVLC) for C$1.30/share, a 35% premium to SVLC's Friday closing price.
- AG says the acquisition enhances its leading position in Mexico, adding SVLC's Santa Elena Mine to its portfolio of Mexican projects, and will be accretive to net asset value per share, reserves and total resources per share and production per share.
- AG says it will issue ~32.8M shares in the deal, for a value of ~C$154M.
Feb. 20, 2013, 9:14 AM
Feb. 19, 2013, 4:29 PM
Feb. 13, 2013, 8:34 AM
Coeur d'Alene Mines (CDE) proposes to buy Orko Silver (OKOFF.PK) for ~C$384M, two months after Orko agreed to be sold to First Majestic Silver (AG). Orko's board says CDE's stock and cash offer is superior, and gives AG until Feb. 19 to match it. At the heart of the battle for Orko is the La Preciosa deposit in Mexico, one of the world's largest undeveloped silver projects. CDE -6% premarket.| Feb. 13, 2013, 8:34 AM | 2 Comments
Dec. 17, 2012, 8:43 AM
First Majestic Silver (AG) -5.7% premarket after last night's news it is acquiring Orko Silver (OKOFF.PK) in a friendly deal. The all-stock offer implies a value of C$2.72/share, representing a ~69% premium to Orko's volume-weighted average price for the past 30 days.| Dec. 17, 2012, 8:43 AM | 7 Comments