3 Stocks for a Silver-Studded Portfolio: First Majestic Silver Corp (AG), Coeur d’Alene Mines Corporation (CDE)

“Too many people miss the silver lining because they’re expecting gold.”

-Maurice Setter

Silver often plays a secondary role to its more illuminating sibling – gold – in the precious metals family. However, the potential for returns for investors exists with companies aggressively advancing their silver programs in diverse regions of the globe. The following are some silver expectations to examine from three enterprises operating in this industry:

First Majestic Silver Corp (NYSE:AG) is a silver producing company concentrating on silver production in Mexico. The company is expecting silver production to increase in 2013 from 2012 levels. Investors performing due diligence should consider some of the company’s reasoning for these expectations.

First Majestic has their producing Del Toro Silver Mine, which they own 100%. This mine is in the Municipality of Chalchihuites, Zacatecas, Mexico. The project consists of 399 hectares of mining rights within 22 titled concessions. Production from the 1,000-tpd (tons per day) flotation circuit started in January 2013. The expectation is that construction of the 1,000-tpd cyanidation circuit will start production in the third quarter of 2013.

The company also has their La Guitarra producing silver mine. This project is 100% owned and operated by First Majestic Silver Corp (NYSE:AG). They acquired the project in 2012 because of their acquisition of Silvermex Resources. A new ball mill and flotation cells will increase capacity at La Guitarra from 350 tpd to 500 tpd during March 2013. The La Guitarra property consists of 39,714 hectares located within the Temascaltepec Mining District in Mexico.

Another producing silver mine of the company is San Martin (100% owned by First Majestic Silver). This mine consists of approximately 7,841 hectares of mineral rights, including 1,454 hectares of surface rights. The San Martin Silver Mine is 250 km north of Guadalajara city in Jalisco State, Mexico. The cyanidation plant is undergoing expansion. This will increase capacity from 950 tpd to 1,300 tpd in the second quarter of 2013.

What can investors consider going forward with First Majestic Silver Corp (NYSE:AG)? The company continued to follow a forceful growth plan in 2012. They re-invested $175.1 million in the development and exploration of their mineral properties, construction of new processing plants, and acquisition of new mining equipment. Capital growth requirements budgeted for 2013 total $192.2 million.