Jeff,

A couple of weeks old, but news to myself. I held SilverMex, then kinda lost faith (about a year or so ago).
Appreciate your views on this.

Thank You
Earl


First Majestic Announces Friendly Acquisition of Silvermex Resources

finance.yahoo.com/news/first-majestic-an...ition-142400138.html

VANCOUVER, BRITISH COLUMBIA--(Marketwire -04/03/12)- First Majestic Silver Corp. ("First Majestic") (TSX: FR.TO - News)(NYSE: AG - News)(Frankfurt: FMV.F - News) and Silvermex Resources Inc. (TSX: SLX.TO - News)(OTC.BB: GGCRF.PK - News)(Frankfurt: GSBN.F - News) ("Silvermex") are pleased to announce that they have entered into a definitive agreement (the "Arrangement Agreement") pursuant to which First Majestic has agreed to acquire all of the issued and outstanding common shares of Silvermex for a consideration of 0.0355 common shares of First Majestic (the "Exchange Ratio") and C$0.0001 in cash per common share of Silvermex. The offer values Silvemex at approximately C$0.60 per share, representing a premium of approximately 33% to the closing price of Silvermex as at April 2, 2012 and approximately 43% to the 30 day volume weighted average price ("VWAP"). The transaction will be implemented by way of a plan of arrangement (the "Arrangement") under the Business Corporations Act (British Columbia).

BENEFITS TO FIRST MAJESTIC SHAREHOLDERS



-- Strengthens First Majestic's position as one of the world's leading
silver producers.
-- Enhances First Majestic's leading position in Mexico, one of the world's
most prolific silver and gold regions.
-- La Guitarra adds a fourth producing asset with additional growth
potential to First Majestic's portfolio of Mexican assets.
-- Further diversifies production and cash flow across a robust portfolio
of producing mines and development projects.

BENEFITS TO SILVERMEX SHAREHOLDERS



-- Provides Silvermex shareholders with a highly attractive premium to
current market price.
-- Creates opportunity to participate in a leading silver producer and
increases leverage to current strong silver price environment.
-- Gain access to First Majestic's operational expertise and financial
strength.
-- Diversifies Silvermex's single asset risk profile and provides exposure
to First Majestic's portfolio of Mexican assets.
-- Increased analytical following and liquidity with a broader investor
base.

Keith Neumeyer, President & CEO of First Majestic, stated: "We believe this transaction provides an excellent opportunity for the shareholders of both First Majestic and Silvermex. First Majestic shareholders gain increased exposure to silver and can realize the significant upside in production and reserves that we believe exists at La Guitarra, while Silvermex shareholders realize an immediate premium and can capitalize on the value creation that First Majestic brings going forward."

Duane Nelson, CEO of Silvermex added: "First Majestic brings the necessary capital and operational expertise required to accelerate exploration activities and production growth at our La Guitarra Mine as well as our other advanced projects. We believe that First Majestic's proven track record of operational achievements and experience in Mexico will ensure a successful future for the combined company."

Earl, you're slipping...!



www.bullionbullscanada.com/bulletin-boar...st-majestic-frtsx-ca

Jeff,

"Earl, you're slipping...!" LOL, Jeff- "slipping" is a very kind way of saying it.

In reading your reply from "debsyl", I remember SilverMex was in the BBC "basket".

Any plans of the "BBC team" putting together another "basket"???

That was a lot of fun traveling the world researching those companies.

Thank You
Earl

Earl wrote:
Jeff,

"Earl, you're slipping...!" LOL, Jeff- "slipping" is a very kind way of saying it.

In reading your reply from "debsyl", I remember SilverMex was in the BBC "basket".

Any plans of the "BBC team" putting together another "basket"???

That was a lot of fun traveling the world researching those companies.

Thank You
Earl


Earl that is definitely a suggestion worth considering.

With the mainstream doing nothing but bashing this sector (while the producers rake-in record profits), it's probably a good time to REMIND people what fabulous valuations these companies are trading at.

Perhaps we should produce a Depression Basket, to suggest how people approach investing in these companies during a severe trough...?

I believe there is another thread on First Majestic, but this is the most recent posting, so I thought I would add to it.

A friend, who knows we hold First Majestic, sent us a report indicating a substantial amount of insider selling for July. I know you are not very impressed with these reports, Jeff, but this is one of few stocks for which we are not under water and are actually making some money (19%). This profit taking is for the birds . Does one sell (1/3) just as the silver prices start to rise? Is one greedy if one is considering staying in with these profits? What to do, what to do

The following is a news release re their financials. There are a number of concerns (underlined) which do not necessarily relate to the "temporary" silver price reduction of the past year.

Does anyone have any thoughts on this one, am I over reacting?


Tue Aug 14, 2012
First Majestic Reports Second Quarter Financial Results
FIRST MAJESTIC SILVER CORP. (AG: NYSE; FR: TSX) (the "Company" or "First Majestic") is pleased to announce the unaudited condensed interim consolidated financial results for the Company for the second quarter ending June 30, 2012. The full version of the financial statements and the management discussion and analysis can be viewed on the Company's web site at www.firstmajestic.com or on SEDAR at www.sedar.com and on EDGAR at www.sec.gov.

2012 SECOND QUARTER HIGHLIGHTS

Silver produced increased by 8% to 1,917,248 ounces compared to 1,780,379 ounces in Q2 2011
Increased silver equivalent production by 14% to 2,102,222 ounces compared to Q2 2011
Revenue of $54.8 million, a 19% decrease from Q2 2011 while average silver prices fell by 27%
Mine Operating Earnings totaling $31.1 million
Cash Flow per Share (non-GAAP) of $0.29, a decrease of 35% from Q2 2011
Basic Earnings per Share amounted to $0.14, representing a 51% decrease from Q2 2011
Adjusted Earnings per Share (non-GAAP) amounted to $0.19 after removing legal fees for the First Silver trial, the acquisition costs for the Silvermex Resources Inc. and losses from silver futures and marketable securities
Total Production Cost per Tonne decreased to $26.97, a 10% reduction compared to Q2 2011
Total Cash Cost was $8.83 per ounce, up only 6% compared to Q2 2011
Cash and Cash Equivalents at June 30, 2012 totalled $70.9 million and Working Capital of $94.6 million
In addition to cash, First Majestic was carrying 574,000 PSLV (Sprott Physical Silver Trust) units at quarter end with an approximate market value of $6.65 million and 100 Silver Futures contracts representing 500,000 ounces of silver valued at $1.7 million including the unrealized gain and the margin requirement. The Company is currently holding 150 contracts representing 750,000 ounces of silver at an average cost basis of $27.277.


2012 SECOND QUARTER HIGHLIGHTS TABLE
Second Quarter 2012 Second Quarter 2011 Change
Operating
Silver Equivalent Ounces Produced 2,102,222 1,843,830 14%
Silver Ounces Produced
(excluding equivalent ounces from by-products) 1,917,248 1,780,379 8%
Payable Silver Ounces Produced(1) 1,888,132 1,761,697 7%
Total Cash Costs per Ounce(2) $8.83 $8.32 6%
Total Production Cost per Tonne(2) $26.97 $30.03 -10%
Average Revenue per Payable Equivalent Ounces Sold ($/eq. oz.)(2) $28.69 $39.08 -27%
Financial
Revenues ($ millions) $54.8 $68.0 -19%
Mine Operating Earnings ($ millions) $31.1 $46.8 -34%
Net Earnings After Taxes ($ millions) $15.3 $30.6 -50%
Operating Cash Flows Generated
Before Movements in Working Capital ($ millions) $30.6 $46.4 -34%
Cash and Cash Equivalents at June 30 ($ millions) $70.9 $105.0 -32%
Working Capital at June 30 ($ millions) $94.6 $100.9 -6%
Shareholders
Earnings Per Share - Basic $0.14 $0.30 -51%
Cash Flow Per Share(2) $0.29 $0.45 -35%
Weighted Average Shares Outstanding for the Periods Ended June 30 105,798,950 103,396,753 2%
Common Shares Outstanding after the acquisition of Silvermex 115,340,851

(1) Payable Silver Ounces Produced is equivalent to Silver Ounces Produced less metal deductions from smelters and refineries.
(2) The Company reports non-GAAP measures which include Total Cash Costs per Ounce, Total Production Cost per Tonne, Average Revenue per Payable Equivalent Ounces Sold and Cash Flow Per Share Before Movements in Working Capital. These measures are widely used in the mining industry as a benchmark for performance, but do not have a standardized meaning and may differ from methods used by other companies with similar descriptions.

Keith Neumeyer, President and CEO of First Majestic, states, "As usual, First Majestic is working on multiple fronts to improve the business. During this past quarter, we successfully added a third ball mill at the La Encantada mill allowing for mine ore production to reach 1,800 tpd, which as expected, is resulting in improved recoveries. At La Parrilla, the new processing mill reached name plate capacity in the quarter averaging 2,040 tpd and continues to operate as expected. Furthermore, La Parrilla has been deemed as the Company's blueprint model for all future personnel training programs and activities. At Del Toro, mill construction and underground development to access the third ore body at San Juan remains a key focus ahead of initial production scheduled in the fourth quarter. And lastly, the addition of the La Guitarra Silver Mine to our portfolio brings another area of focus. In addition to immediate production, this very large and exciting land package will keep us busy for many years to come."

FINANCIAL HIGHLIGHTS

Increased silver equivalent production by 14% compared to the second quarter of 2011, though average silver prices fell 27%, the Company managed to limit the reduction of revenues by 19% compared to the second quarter of 2011.
Adjusted EPS (a non-GAAP measure) for the three months ended June 30, 2012 was $0.19, after removing $0.8 million in acquisition costs for Silvermex, $1.1 million in legal fees for the First Silver trial and $3.6 million in losses from investment in silver futures and marketable securities.
Cash flows from operations before movements in non-cash working capital and income taxes in the second quarter of 2012 decreased by 34% to $30.6 million ($0.29 per share) compared to $46.4 million ($0.45 per share) in the second quarter of 2011.
Continued to focus on cost control in a lower silver price market. Production costs per tonne decreased 10% to $26.97 per tonne compared to $30.03 per tonne in the second quarter of 2011, reflecting efficiencies from economies of scale as a result of 28% increase in tonnes of ore milled during the second quarter of 2012.
Subsequent to quarter end, on July 3, 2012, the Company completed the acquisition of Silvermex Resources Inc. ("Silvermex"), whereby First Majestic acquired all of the issued and outstanding common shares of Silvermex. Total consideration for the transaction was valued at approximately $137.0 million at the time of completion. Silvermex's La Guitarra Silver Mine, located in the State of Mexico, has now become First Majestic's fourth operating mine and is expected to contribute between 320,000 to 340,000 ounces of silver and approximately 70,000 ounces of silver equivalent from gold to the Company's consolidated production in the second half of 2012.
Cash cost per ounce (a non-GAAP measure) for the second quarter of 2012 was $8.83, an increase of 6% compared to $8.32 in the second quarter of 2011. Cash cost per ounce was slightly higher primarily due to a decrease in consolidated head grades to 166 g/t Ag compared to 208 g/t Ag in the second quarter of 2011.
Generated revenues of $54.8 million for the quarter ended June 30, 2012, a decrease of $13.3 million or 19% compared to $68.0 million in the second quarter of 2011, due to a decrease of 27% in average realized silver prices.
Recognized mine operating earnings of $31.1 million compared to $46.8 million in the second quarter of 2011, a decrease of $15.7 million or 34%, due to lower revenues and higher depreciation, depletion and amortization expense.


IN SUMMARY

First Majestic has experienced another solid financial quarter primarily due to an increase in total production to 2,102,222 silver equivalent ounces, an increase of 14% compared to 1,843,830 silver equivalent ounces produced in the second quarter of 2011. Silver production remained strong during the second quarter with 1,917,248 ounces of silver being produced, representing an increase of 8% compared to 1,780,379 ounces of silver produced in the second quarter of 2011.

Total ore processed in the quarter reached 615,799 tonnes, an increase of 28% compared to the second quarter of 2011. The increase in milled ore is a direct result of the successful plant expansion at La Parrilla which processed a total of 169,786 tonnes in the second quarter compared to 77,363 tonnes in same quarter of 2011. The average silver grade at La Parrilla decreased to 166 g/t in the quarter due to a larger portion of oxide ore being processed from the Quebradillas open pit compared to previous quarters. The Quebradillas open pit is becoming much larger than originally anticipated.

The La Guitarra Silver Mine acquired in July consists of two underground operation centers and a flotation mill with a capacity of 350 tpd, producing approximately 800,000 ounces of silver equivalent per year consisting of approximately 640,000 ounces of silver and 160,000 ounces of silver equivalent from gold. The Company plans to maintain production levels at 350 tpd for the remainder of 2012. A development program is being defined to prepare the mine for a first ramp up stage in which, by the first quarter of 2013, throughput is planned to reach 500 tpd through the flotation circuit. Since the completion of the acquisition, the concentrates being produced at La Guitarra are being shipped to the La Parrilla mill for further leaching in the cyanidation process, where the La Parrilla processing plant is converting this production into doré bars to reduce smelting and refining costs and to improve La Guitarra's economics.

Construction of the new milling facility at Del Toro is well underway and currently on schedule. After the completion of the platform construction at the mill site, foundations were poured at the crushing, flotation and thickener areas in the second quarter. In addition, mechanical installation also began at the crushing, flotation and thickener areas. The Company has plans to invest an estimated $58.5 million in construction of the phase one flotation circuit, equipment and underground development of which $23.8 million has been spent during the first half of 2012. Furthermore, an update to the NI 43-101 Technical Report will soon be released to take account for improved metallurgical results and additional drilling and development activity at Del Toro in preparation for production.

First Majestic is a producing silver company focused on silver production in México and is aggressively pursuing its business plan of becoming a senior silver producer through the development of its existing mineral property assets and the pursuit through acquisition of additional mineral assets which contribute to the Company achieving its aggressive corporate growth objectives.

FOR FURTHER INFORMATION contact info@firstmajestic.com, visit our website at www.firstmajestic.com or call our toll free number 1.866.529.2807.

FIRST MAJESTIC SILVER CORP.
"signed"
Keith Neumeyer, President & CEO


SPECIAL NOTE REGARDING FORWARD-LOOKING INFORMATION

This news release includes certain "Forward-Looking Statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When used in this news release, the words "anticipate", "believe", "estimate", "expect", "target", "plan", "forecast", "may", "schedule" and similar words or expressions, identify forward-looking statements or information. These forward-looking statements or information relate to, among other things: the price of silver and other metals; the accuracy of mineral reserve and resource estimates and estimates of future production and costs of production at our properties; estimated production rates for silver and other payable metals produced by us, the estimated cost of development of our development projects; the effects of laws, regulations and government policies on our operations, including, without limitation, the laws in Mexico which currently have significant restrictions related to mining; obtaining or maintaining necessary permits, licences and approvals from government authorities; and continued access to necessary infrastructure, including, without limitation, access to power, land, water and roads to carry on activities as planned.

These statements reflect the Company's current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors, both known and unknown, could cause actual results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements or information and the Company has made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: fluctuations in the spot and forward price of silver, gold, base metals or certain other commodities (such as natural gas, fuel oil and electricity); fluctuations in the currency markets (such as the Canadian dollar and Mexican peso versus the U.S. dollar); changes in national and local government, legislation, taxation, controls, regulations and political or economic developments in Canada, Mexico; operating or technical difficulties in connection with mining or development activities; risks and hazards associated with the business of mineral exploration, development and mining (including environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins and flooding); risks relating to the credit worthiness or financial condition of suppliers, refiners and other parties with whom the Company does business; inability to obtain adequate insurance to cover risks and hazards; and the presence of laws and regulations that may impose restrictions on mining, including those currently enacted in Mexico; employee relations; relationships with and claims by local communities and indigenous populations; availability and increasing costs associated with mining inputs and labour; the speculative nature of mineral exploration and development, including the risks of obtaining necessary licenses, permits and approvals from government authorities; diminishing quantities or grades of mineral reserves as properties are mined; the Company's title to properties; and the factors identified under the caption "Risk Factors" in the Company's Annual Information Form, under the caption "Risks Relating to First Majestic's Business".

Investors are cautioned against attributing undue certainty to forward-looking statements or information. Although the Company has attempted to identify important factors that could cause actual results to differ materially, there may be other factors that cause results not to be anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements or information, other than as required by applicable law.

You can view the Next News Releases item: Thu Aug 16, 2012, First Majestic Recognized as a Leader in Corporate Social Responsibility

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Debsyl, I don't see any cause for concern here.

I still hold a few shares of this one as one of my "safe holdings". It's a well-run company which has now achieved mid-tier status as a silver producer. With respect to the operating results, pretty much everything "negative" I see is either a direct product of the decline in the price of silver or costs involved in absorbing Silvermex into its operations.

Even though these acquisitions will generally be accretive over the longer term, over the shorter term it's quite common for the acquiring company to suffer a little "financial indigestion" as these new assets are worked into overall operations.

With respect to insider-selling; I don't like looking at ANY indicator which sends an AMBIGUOUS message -- because there is little-to-no analytical value in such numbers. Look at the chart. It's risen about 30%.

So are these employees selling because:

1) They are AFRAID the market is going to turn lower
2) Their own CHEAP shares/options just got much more valuable -- and it hasn't been realistic to do any selling for the past 18 months.
3) Some of their options were about to expire and they NEEDED to exercise them right away.

If you ask me, (2) and (3) are the most likely explanation -- and totally OPPOSITE to #1...indicating yet again how totally USELESS it is to pay attention to insider-selling (and PRETEND it means something).

Thanks, Jeff