Bobwins

First Majestic: The First of Many Majestic Quarters to Come

I just bought into Fortuna. I like the long term approach of mgmt and the internally generated growth instead of issuing mass quantities of cheap shares. They look like a good longer term hold.

That said, I still like the near term catalysts for First Majestic. They still need to work out the kinks and prove to the markets that La Encantada can produce up to capacity. Like all major projects, it has been delayed and has caused the company to repeatedly lower guidance for 2009. But once fully online by year end, it should move First Majestic into the 6 million oz/yr production range, a dramatic 50% increase from current levels and lower costs at the same time.

This is the catalyst that gives FR the advantage, in my opinion, over FVI. As FVI advances their new mine construction, they will have the same type of catalyst but the timeframe is out 12-18months. Until then, they will be profitably producing 1.6 m to 2 million oz.

I also hold CDE and SLW because they are big cap and get the institutional money whenever gold and silver are rising.

Long shot? REX.v. C$.15 Just raised 3 million and about to start drilling Coneto project in the same area as several big silver mines. Mgmt is from Orko, that JV'd their initial project to PAAS.