First Majestic Silver (image: $AG) is a Canadian silver-mining firm which operates in Mexico. It has 7 mines, though solely Three most cost-efficient mines are presently working in San Dimas, Santa Elena, and La Encantada. It’s thought-about to be one of many purest silver mining corporations with 60% of the income derived from Silver. If the worth of Silver can proceed to rise, the inventory value of the corporate ought to rise together with it and certain at a better share as a result of a number of impact.
Most of silver produced as we speak is a byproduct of mining copper, lead, and zinc. A pure silver mining firm is fairly uncommon these days with the final 10 years bear market decimating the business. Beneath is the income comparability of varied silver miners.
First Majestic presently ranks primary by way of the silver income’s contribution to the entire income of the corporate. It’s a leverage play in silver if buyers imagine within the bullish potential of the underlying steel.
First Majestic Month-to-month Elliott Wave Chart
Month-to-month Elliott Wave chart above reveals the inventory has damaged above 10 yr consolidation. Final week value has retraced to retest the purpose of the breakout. So far as value doesn’t shut contained in the triangle once more, it has probability to increase larger once more. Potential Elliott Wave construction from 2009 low generally is a nest the place the rally to April 2011 excessive at $26.88 ended wave (I). Pullback to $2.Four on January 2016 low ended wave (II). Wave (III) is presently in progress the place wave I ended at $19.15, and wave II ended at $4.17 through the Covid-19 selloff. Pullback from right here ought to discover help in 3, 7, or 11 swing for additional upside.