Stock Monitor: Wheaton Precious Metals Post Earnings Reporting
LONDON, UK / ACCESSWIRE / January 17, 2018 / Active-Investors.com has just released a free research report on First Majestic Silver Corp. (NYSE: AG) ("First Majestic"). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=AG as the Company's latest news hit the wire. On January 12, 2018, the Company, which is a mining organization focused on growing primary silver production in Mexico, announced that it has entered into a definitive arrangement agreement, pursuant to which it would acquire all the issued and outstanding shares of Primero Mining Corp. ("Primero"). Under the terms of the agreement, the issued and outstanding common shares of Primero would be exchanged on the basis of 0.03325 of First Majestic common share. Register today and get access to over 1000 Free Research Reports by joining our site below:
Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, First Majestic Silver most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
The WPM Arrangement
First Majestic made a concurrent deal, in addition to the Primero Agreement, where it announced that it has entered into an agreement with Wheaton Precious Metals International Ltd, a wholly-owned subsidiary of Wheaton Precious Metals Corp. (NYSE: WPM) ("WPM") which is one of the largest pure silver and gold streaming Company. Under the terms of the agreement, the current silver streaming interest at Primero's San Dimas silver-gold mine, which was held by WPM, would be terminated and First Majestic and WPM would enter into a new stream arrangement, on the basis of 25% of gold eq. production at San Dimas with ongoing payments of $600 per gold eq. ounce delivered under the agreement.
Moreover, WPM is entitled to receive 20.92 million common shares of First Majestic with an aggregate value of $151 million. The New Stream is expected to deliver a significant reduction in the amount of payable metal in comparison to the current stream, which may deliver greater free cash flow generation at San Dimas.
Details of the Arrangement
Primero currently operates the 100% owned San Dimas silver-gold mine in Durango, Mexico, which is a premier low-cost asset with over 100 years of mine production history. Along with First Majestic's existing six operating silver mines in Mexico, the combined Company is expected to lead the Mexican silver production market with an annualized expected silver production of 27 million - 30 million silver eq. ounces.
According to the transaction summary, First Majestic will issue approximately 6.42 million common shares to Primero's shareholders. Post the completion of the arrangement, WPM and current Primero's shareholders will own approximately 11% and 3% of First Majestic issued and outstanding common shares.
First Majestic added that the amounts outstanding under Primero's existing revolving credit facility and costs related to the closing of the Arrangement, totaling about $120 million, would be funded with a combination of the Company's current cash on hand, that is, $118 million as of December 31, 2017; $150 million in new credit facilities; and cash on hand at Primero.
Company Growth Prospects
Prior to the announcement, on January 09, 2018, First Majestic announced that it completed over 156,500 meters of diamond drilling in 2017, while it also acquired El Gachi property and the option agreement to explore and acquire the Los Hernandez property, close to the Santa Elena properties. Post a successful exploration run in 2017, the Company stated that it intends to continue with an aggressive exploration budget in 2018, with an estimated 183,000 meters of planned drilling across the six producing mines and the Plomosas Silver project.
Stock Performance Snapshot
January 16, 2018 - At Tuesday's closing bell, First Majestic Silver's stock climbed 8.25%, ending the trading session at $7.35.
Volume traded for the day: 8.35 million shares, which was above the 3-month average volume of 2.63 million shares.
Stock performance in the previous three-month period – up 1.10%; and year-to-date - up 9.05%
After yesterday's close, First Majestic Silver's market cap was at $1.22 billion.
Price to Earnings (P/E) ratio was at 262.50.
The stock is part of the Basic Materials sector, categorized under the Silver industry.
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