First Industrial Realty Trust, Inc. (FR)

“We are looking elsewhere as well. We are hoping to see other M&A transactions occur over the next 12 months. We’re working on a few… Jerritt Canyon is a great asset that is going to increase our production, our revenue substantially, and profit substantially… What comes next, I can’t tell you. I’m quiet confident that we can add to the company.” Keith Neumeyer (20:00)

$FR is looking outstanding. It looks like $FR will upgrade the Jerritt Canyon mine to maximize production up to $225,00 ounces of gold per year, or 15.75 MoZ AgEq (at current gold/silver ratio of 1/70). I think they will at least half the stated production cost of $1,300 because of the high gold grade (6.5 g/t) when they double the production. At this metric $FR diluted the company with 12% to gain 75% in production. That is an outstanding deal.

The conclusion is that the Jerritt Canyon acquisition is highly accretive.

$FR and Keith its strength is its acquisition skill. Santa Elena, San Dimas, and now Jerritt Canyon are highly skilled acquisition transactions. In each transaction $FR diluted 10-20% and added about 50+% in production. That’s how you grow a business. That is excluding higher $silver prices.

The fact that Keith now states (above) that he is working on a few more acquisitions and he is confident of closing another deal in the next 12 months, makes $FR an outstanding business to own. I am certain the next acquisition will be accretive as well.