First Majestic currently little glossy
Jerritt Canyon is not profitable enough
Mining Company First Majestic Silver announced yesterday that they close down their Jerritt Canyon Mine, at least for some time, which makes one fifth of their turnover. It is just not profitable. A disaster! They just aquired the mine in Nevada two years ago and worked on it’s efficiency but obviously without much success. They now want to check if a profitable mining there is doable. Might well be they won’t reopen it.
Has CEO Keith Neumeyer lost his touch?
The CEO of First Majestic is one of the most known business leaders within the mining industry and quite respected by many BUT he seems to have lost his touch. The Jerritt-Canyon-Deal with Eric Sprott 2021 was obviously a very poor decision and stock performance is mediocre at best. The stock is down -50% the last two years.
I am not sure when and how the company will recover but the precious metal prices currently are made for a possible comeback story. Let’s wait and see…
Hmmm. How will they recover from such downfall. Well, time will tell.
🤷🏼♂️ At the moment I don’t know either, David. But often the hardest times for a company where good investment points. In this case I do not stack up. Just lacking the trust and there is better opportunities out there.
Sure, much better opportunities out there.
As such, we are seeing this cart drop in price quite a bit. If it doesn't come down from here, it's the right time to wait to put money into it and make a profit from us.
I am not buying any FM stocks currently. Just lacking trust on how they will make a turnaround. 😕