I don't go along with the article as far as AG purchasing EXK.
They don't need to purchase anyone right now as thier plate is full. KN said in the past he would only go after a small deal in Mexico, where there is value.
Now maybe in three years after finishing Del Toro and La Luz I can see them make a very large purchase, but not currently.
Any thoughts on this?
the video isnt great despite my microsoft life cam 720p. guess i havent mastered the focu yet. thy really are nice. ill probably order 40 more for an even 100. also they have 1/2 sizes that come in tubes of 16 or 8 ounces for those who dont have 700 + plus for a tube of 20 0z.
i got them today and they are really nice. much nicer than the pictures online look like. now they even give you a polishing cloth woth your order as well as certificate of authenticity. they are minted by renowned nothwest territorial mint. i made a short video on youtube.
AG buying EXK is silly. Their resource base doesn't stack up to AG, not for $1B+ market cap.
AG would buy something smaller and more under the radar. Like maybe something like Cream Minerals. They have a nice find and super cheap valuation. AG could buy them and issue a negligible amount of stock. That could be a great mine. EXK tried to buy it a year ago. It has gold byproduct - don't know if that means Neumayer wouldn't like it with the 90%+ exposure to silver thing...
Another idea is that if PAAS doesn't complete the feasibility study at La Preciosa by April 15 then it revert's back to 100% Orko interest. THAT would be a steal with Orko around $2 area. PAAS has done a lot of work and spent a lot of money there advancing the project.
Impact could be a small bolt on. That would add 1M oz production with 2M oz potential and could be purchased entirely with cash on hand - no dilution necessary.
The most ambitious move AG could make would be to buy Golden Minerals AUMN. That would be a coup! They could get the Velardena mine - a 8M+ oz Ag-equivalent producer in Mexico. They would also get the world-class hi-grade El Quevar discovery. They would get a crapload of exploration assets and early-stage prospects. They'd get almost 500M Ag-eq oz - predominantly silver with strong gold byproducts. The market cap is a mere $300-350M now. AUMN is a company that could be purchased for 1/4th AG market cap that would more than double resources and potentially make AG a 30M+ oz producer. Food for thought. AUMN would be a great place for hot money to come in since there is a STUPID short position there. GORO another stock for PM bulls to burn shorts to the stake. Let's make it happen.
I think if they are going to buy a small company it could be great panther silver ticker GPL. Also a relatively unknown name in aurcana ticker AUNNF. Both trade for less than 3.00. Aurcana could be huge. If they hit target the CEO is pushing for 9 million ounces by 2014. Aurcana trades at 1.00 on the pinksheets now. They own la negra and are opening shafter this year in Texas. Both could do 2500 tons a day I they hit targets. I think both companies could be a huge plus for first majestic.
The time to have made an acquisition was a few months ago. I think it is too late right now as surely silver is in it's way to new all time highs.
However; I wouldn't mind being bought out today by a major miner for 100% premium. There are numerous miners and silver trading vehicles that can replace this one. My AGQ is killing it.
Oh my godness I sure hope not, I rather pass up a 100 % return today.
Call my crazy,as my calculations put AG's this share valuation ( combo of EPS., PE ratio, reserves and FCF at very high levels compated to YD 2011.
By the end of 2014 I see AG's share price many multiplies of where we are today.
I want to remain a stand alonr company, I sure hope the board never entertains a take over unless the price is more than 100.00 a share. LOL.
Maybe KN has a secret plan when a take over offer is made a merger of AG and EXK or other senior-mid ter producer.
Too big of an purchaser and we lose
our low share base and will never see the full potential of AG's production and techno advance,ents in the years ahead. JMHO.