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

Page 2 of 2

Coeur d’Alene Mines Corporation (NYSE:CDE) is the largest U.S.-based primary silver producer, as well as a growing gold producer. The company expects to produce 18.0 – 19.5 million ounces of silver in 2013. They expect to invest $40 million in exploration. Their objective is to increase estimated mineral reserves and resources at year-end 2013. Coeur d’Alene’s silver production in 2012 was 18 million ounces. This represented a 6% decrease from 2011.

Mr. Mitchell J. Krebs, President and CEO, said, “We expect 2013 to be a strong year for Coeur d’Alene Mines Corporation (NYSE:CDE), supported by significant expected growth at Rochester, a full year of steady state operations at Kensington, and stable production at Palmarejo and San Bartolomé.” He further said, “Production at Rochester is expected to increase 35% – 50% this year versus 2012 levels, which we anticipate will drive cash operating costs down and significantly increase the mine’s cash flow.”

What can investors consider going forward with Coeur d’Alene Mines? Concerning silver, for 2013, Coeur d’Alene plans a major crusher and heap leach capacity expansion at Rochester, Nevada. Their goal is to increase production to 4.5 – 4.9 million ounces of silver. Furthermore, engineering and permitting are taking place for 40 million tons of additional pad capacity. The company expects initial production in 2016 to further extend the mine life, and increase production rates from historic stockpiles.

Moreover, in February, Coeur d’Alene Mines Corporation (NYSE:CDE) Mines announced that they are entering into a definitive agreement. With this agreement, the company will agree to acquire all of the issued and outstanding common shares of Orko Silver. Therefore, acquisitions are another avenue of growth for Coeur d’Alene Mines Corporation (NYSE:CDE).

Silver Standard Resources Inc. (NASDAQ:SSRI) engages in the acquisition, exploration, development, and operation of silver-dominant resource properties. Their Pirquitas Mine (Argentina) achieved commercial production in December of 2009.

Silver Mineral Reserves at the Pirquitas Mine are Proven Mineral Reserves of 57.2 million ounces of silver, at a grade of 180.8 g/t. and Probable Mineral Reserves of 26.9 million ounces of silver at a grade of 168.4 g/t. The company exceeded the 8.2 –8.5 million ounces guidance range for 2012, producing 8.6 million ounces of silver at Pirquitas.

The company’s production guidance for 2013 is to produce and sell between 8.2 and 8.5 million ounces of silver, the same as the prior year’s guidance range. Investors can note that their expectation is to maintain their production. Could they possibly surpass it as they did in 2012?

What can investors consider going forward with
Silver Standard Resources? Investors should consider the company’s expected production for the years 2014 – 2018.  At full production, Silver Standard expects the Pirquitas Mine to produce an average of 8 to 10 million ounces of silver and 10 to 12 million pounds of zinc each year. This ranks the Pirquitas Mine amongst the largest primary silver mines globally.

The above-mentioned companies are confidently advancing their plans. For investors, silver is relatively economical, and there is industrial demand for this precious metal (electronics, jewelry, superconductivity, and more). An analysis of the silver expectations of First Majestic Silver Corp (NYSE:AG), Coeur d’Alene Mines, Silver Standard Resources, and others could be another route for investors to stock portfolio diversification.

The article 3 Stocks for a Silver-Studded Portfolio originally appeared on Fool.com and is written by Michael Ugulini

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.


Page 2 of 2