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…