Core Viewpoint - First Majestic Silver Corp. (NYSE:AG) has reached a 13-year high due to increased investor interest in precious metals amid geopolitical tensions and concerns regarding the US Federal Reserve's independence [1][3]. Group 1: Stock Performance - On a recent trading day, First Majestic's stock price increased by as much as 8.9% to $20.60, before closing up 6.93% at $20.22 [2]. - The rise in stock price coincided with spot silver prices reaching an all-time high of $86.12 [2]. Group 2: Geopolitical and Economic Factors - The rally in silver and mining stocks is attributed to ongoing geopolitical tensions in Iran and concerns over the Federal Reserve's independence, particularly following comments from Chairman Jerome Powell regarding threats from President Trump [3][4]. - President Trump has been advocating for lower interest rates to stimulate economic growth, criticizing the Federal Reserve for its cautious approach to rate cuts [4]. Group 3: Company Developments - First Majestic Silver Corp. has sold its Del Toro Silver Mine in Zacatecas, Mexico, to Sierra Madre Gold & Silver Ltd. for a total of $60 million [4]. - The payment structure includes $20 million in cash, $10 million in Sierra Madre shares, and $30 million in delayed and contingent consideration [5].

Core Viewpoint - Spot gold and silver prices have reached historical highs, leading to a significant increase in the stock prices of precious metal companies in the U.S. [1] Company Performance - Harmony Gold (HMY.US) has seen its stock price rise by over 8% [1] - First Majestic Silver (AG.US) and Endeavour Silver (EXK.US) have both increased by more than 6% [1] - Pan American Silver (PAAS.US) and Newmont Corporation (NEM.US) have experienced stock price increases of over 3% [1]

Core Viewpoint - The precious metals market is experiencing a liquidity shock triggered by the rebalancing of the Bloomberg Commodity Index, leading to significant declines in gold and silver prices and related mining stocks [1] Group 1: Market Performance - Gold and silver stocks opened lower, with Hecla Mining (HL.US) down over 5%, First Majestic Silver (AG.US) and Endeavour Silver (EXK.US) down over 4%, and Coeur Mining (CDE.US), Pan American Silver (PAAS.US), and Gold Fields (GFI.US) down over 2% [1] - Spot silver fell over 4% to $74.48, while spot gold decreased by 0.5% to $4,433.37 [1] Group 2: Index Rebalancing Impact - The current adjustment in the precious metals market is directly linked to the annual weight rebalancing of the Bloomberg Commodity Index, which started on January 8 and will continue until January 14 [1] - Gold's weight in the index was reduced from 20.4% to 14.9%, and silver's weight was significantly cut from 9.6% to 3.94%, forcing passive funds tracking the index to make mechanical position adjustments [1] Group 3: Analyst Insights - Deutsche Bank analyst Michael Hsueh noted that the rebalancing is unfavorable for precious metals but beneficial for crude oil [1] - Silver is expected to face the largest selling pressure from the rebalancing, followed by aluminum and gold [1] - Hsueh estimates that a sale of 2.4 million ounces of gold could lead to a price drop of 2.5%-3.0%, depending on the sensitivity model and time window used for ETFs [1]

Core Viewpoint - The precious metals market is experiencing a liquidity shock triggered by the rebalancing of the Bloomberg Commodity Index, leading to significant declines in gold and silver prices and related mining stocks [1] Group 1: Market Performance - Gold and silver stocks opened lower, with Hecla Mining (HL.US) down over 5%, First Majestic Silver (AG.US) and Endeavour Silver (EXK.US) down over 4%, and other companies like Coeur Mining (CDE.US), Pan American Silver (PAAS.US), and Gold Fields (GFI.US) down over 2% [1] - Spot silver fell over 4% to $74.48, while spot gold decreased by 0.5% to $4,433.37 [1] Group 2: Index Rebalancing Impact - The current adjustment in the precious metals market is directly linked to the annual weight rebalancing of the Bloomberg Commodity Index, which started on January 8 and will continue until January 14 [1] - The weight of gold in the index has been reduced from 20.4% to 14.9%, while silver's weight has been significantly cut from 9.6% to 3.94%, forcing passive funds tracking the index to make mechanical position adjustments [1] Group 3: Analyst Insights - Deutsche Bank analyst Michael Hsueh noted that the rebalancing is unfavorable for precious metals but beneficial for oil [1] - Silver is expected to face the largest selling pressure from the rebalancing, followed by aluminum and gold [1] - Hsueh estimates that a sale of 2.4 million ounces of gold could lead to a price drop of 2.5%-3.0%, depending on the sensitivity model of the ETFs used and the time window considered [1]

Core Insights - The article discusses the performance and outlook of three silver mining companies: First Majestic Silver (AG), Pan American Silver (PAAS), and Wheaton Precious Metals (WPM), highlighting their financial results and market positioning amid rising silver prices and geopolitical tensions. Company Performance - First Majestic Silver reported an EPS of $0.07, missing the consensus of $0.11 by $0.04, resulting in a -36% earnings surprise. Sales were $285.1 million, up 8% YOY, but net income fell 49% YOY to $26.98 million due to cost pressures [2][3] - Pan American Silver's latest earnings showed an EPS of $0.48, slightly below the consensus of $0.49, translating to a -2% earnings surprise. Sales reached $854.6 million, up 5% YOY, while net income decreased 11% YOY to $168.6 million [11] - Wheaton Precious Metals achieved an EPS of $0.62, beating the estimate of $0.59 by $0.03, resulting in a 5% earnings surprise. Net income was $367.2 million, up 26% YOY, driven by higher realized prices [16] Market Valuation - First Majestic Silver trades at a forward P/E ratio of 48.5 and a price-to-sales multiple of 8.4, both significantly above sector medians. The stock is currently priced at $17.51 with a market cap of approximately $7.9 billion [3] - Pan American Silver has a trailing earnings multiple of 30.8, compared to a sector median of 18.6, indicating a premium valuation. The stock is priced at $53 with a market cap of $21.5 billion [10] - Wheaton Precious Metals has a trailing earnings multiple of 52.4 and a forward multiple of 35.8, reflecting a strong premium. The stock is currently at $123 with a market cap of $53.5 billion [14][15] Future Expectations - First Majestic Silver's next earnings release is expected on February 19, with estimates of EPS at $0.16 for the December quarter, implying a growth rate of 433% YOY [7] - Pan American Silver's next earnings date is set for February 18, with projected EPS of $0.88 for the quarter, indicating a growth rate of 151% YOY [12] - Wheaton Precious Metals is scheduled to report earnings on March 12, with an expected EPS of $0.84 for the December quarter, suggesting a growth rate of 91% YOY [17] Analyst Ratings - First Majestic Silver has a consensus "Moderate Buy" rating with an average price target of $16.65, indicating a potential downside of 5% from current levels [8] - Pan American Silver also holds a "Moderate Buy" rating, with an average price target of $50.10, suggesting a potential downside of nearly 6% [13] - Wheaton Precious Metals has a "Strong Buy" rating based on 16 analysts, with an average price target of $132.86, implying an 8% potential upside [18] Industry Outlook - The silver market is expected to benefit from safe-haven flows, dollar weakness, and solid industrial demand, with a bullish trend anticipated heading into 2026 [19]

Market Overview - As of January 7, U.S. stock indices showed mixed performance, with the Dow Jones up by 0.27%, the S&P 500 slightly up by 0.01%, and the Nasdaq down by 0.11% [1]. - The Dow Jones index reached 49,593.63, gaining 131.55 points [2]. - The S&P 500 index stood at 6,945.23, with a minor increase of 0.41 points [2]. - The Nasdaq index was at 23,521.50, decreasing by 25.67 points [2]. Sector Performance - Gold and silver stocks experienced significant declines, with Hecla Mining and First Majestic Silver dropping over 5%, and Pan American Silver and Kinross Gold falling more than 4% [2]. - Barrick Gold saw a decline of over 2% [2]. - Spot gold prices fell by 1%, while spot silver prices dropped nearly 5% [2]. Technology Sector - The technology sector faced a majority of declines, with Western Digital falling over 5% and AMD down by more than 2% [2]. Chinese Stocks - Chinese stocks showed mixed results, with Zai Lab increasing by over 5% and Century Internet rising by more than 4% [2]. - However, Hesai Technology and NetEase both experienced declines of over 2% [2].

Core Viewpoint - Gold and silver stocks experienced a decline, with notable drops in companies such as Hecla Mining (HL.US) and First Majestic Silver (AG.US), indicating a bearish trend in the precious metals market [1] Group 1: Market Performance - Hecla Mining (HL.US) and First Majestic Silver (AG.US) fell over 7%, while Pan American Silver (PAAS.US) dropped over 6%, and Gold Fields (GFI.US) decreased over 5% [1] - Spot gold decreased by more than 1%, currently priced at $4,442.55, while spot silver plummeted nearly 5%, now at $77.23 [1] Group 2: Economic Outlook - Citigroup noted that geopolitical risks and rising expectations for U.S. interest rate cuts may support high gold prices in the short term [1] - However, if the U.S. economy accelerates recovery in the second half of the year, concerns about economic recession may diminish, potentially reducing investment demand for gold as a safe haven [1] - Despite these factors, the value of gold as a hedging tool remains significant due to the complexity of the global situation [1]

Group 1 - The analyst works on the buy-side in Fixed Income and has a special interest in the Mining and Real Estate sectors [1] - The analyst holds a beneficial long position in the shares of AG through stock ownership, options, or other derivatives [2] - The article expresses the analyst's own opinions and does not involve compensation from any company mentioned [2] Group 2 - Seeking Alpha emphasizes that past performance is not indicative of future results and does not provide specific investment recommendations [3] - The views expressed may not reflect those of Seeking Alpha as a whole, highlighting the diversity of opinions among its analysts [3] - Analysts on Seeking Alpha include both professional and individual investors, some of whom may not be licensed or certified [3]

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Core Viewpoint - Silver prices have recently surged, breaking $83 per oz, driven by high demand and limited supply, with expectations for continued price increases into 2026 [1][6] Silver Market Dynamics - The mining sector is attempting to increase production, but raw silver ore requires refining to be usable in various applications, indicating that refinery capacity is crucial for market prices [2][12] - COMEX raised margin requirements, leading to a temporary price pullback in silver, which some analysts believe benefited large banks with significant short positions [4][10] - The physical demand for silver continues to exceed supply, with prices rebounding to over $77 per oz [6][10] China’s Influence - China controls 70% of the global refined silver supply and has implemented new laws that will restrict silver exports starting January 1st [9][10] - During a recent sell-off, while US traders sold silver at $75, Chinese buyers were willing to pay up to $90 per oz, indicating strong demand despite price fluctuations [10] Company Insights - **Freeport-McMoRan (NYSE: FCX)**: Known for its extensive mining operations, it produced 3.8 million oz. of silver in 2024 and is expected to focus more on silver extraction and refining in 2026 due to rising silver prices [13][12] - **Pan American Silver (NYSE: PAAS)**: Targeting up to 25 million oz. of silver production in 2025, the company is expanding operations through a $2.1 billion acquisition [14][15] - **First Majestic Silver (NYSE: AG)**: Projecting 15.3 million oz. of silver production for 2025, the company has seen significant production increases and is pursuing aggressive growth strategies [16][17] - **American Resources Corporation (NASDAQ: AREC)**: Focuses on critical elements for lithium-ion batteries and semiconductors, with interests in silver refining as part of its supply chain operations [18][19]