First Majestic Silver (AG) has outperformed peers significantly over the past six months. The share price has roughly doubled to $11 over the course of the past year, boosting the market capitalization to $~2.2B. We believe this share price is not sustainable, and a drop back in line with peers seems both un-avoidable and imminent. We therefore recommend to SHORT First Majestic Silver.
The Thesis In Bullet Points
- Operations have been hollowed out by several years of under-investment. Most mines in the company's portfolio are un-profitable, and those that are