First Majestic Silver: The other precious metal

While every cloud may have a silver lining, every market slump may also have its lining of silver; as of late, it has come in the form of First Majestic Silver Corp. (TSE: FR.TO), a junior silver miner that has been unearthing profits for investors.

This Vancouver, B.C.-based company has a slew of positive factors on its side, including growing revenue and production and falling operating costs, a stellar management crew, demand for silver that analysts predict will outperform gold in 2008, and current and future mines nested in the fertile underground of Mexico.

First Majestic is clearly advancing in its goal of becoming a senior silver producer in Mexico through the development of existing assets and the acquisition of others’ assets. The firm presently owns and operates three silver mines south of the border: La Parrilla, San Martin and La Encantada.

The Mexico mines are proving to be priceless. The United States’ neighbors to the south provide a desirable mining environment with a stable government, favorable mining laws, reasonably developed infrastructure and low labor expenses.

For the fourth quarter ended Dec. 31, 2007, production increased to a record 1 million equivalent ounces of silver representing a 7% increase over the prior quarter production and an increase of 76% over the same quarter in the prior year.

Total silver production from the three Mexican mines in 2007 increased by 176% to 3.6 million ounces from 1.3 million in the previous year. Keith Neumeyer, the company’s president & CEO, attributes the triple-digit growth to vast improvements made at the silver mines and a beefing-up of management, and expects a target of 5.5 million ounces of silver production in 2008.

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