First Majestic (AG) Touches 13-Year High on Silver High

We recently published 10 Stocks With Crazy Gains. First Majestic Silver Corp. (NYSE:AG) was one of the top performers on Monday.

First Majestic rallied to a new 13-year high on Monday, as investors flocked to precious metals for safety, driving spot prices to all-time records amid ongoing geopolitical tensions and concerns over the US central bank’s independence.

At intra-day trading, First Majestic Silver Corp. (NYSE:AG) climbed by as much as 8.9 percent to a high of $20.60, attracting investor interest after spot prices of silver climbed to its highest price of $86.12. At market close, the stock trimmed gains to end the day just up by 6.93 percent at $20.22.

The rally in both silver and mining firms was primarily driven by ongoing geopolitical tensions in Iran which signaled readiness for war while remaining open to negotiations with the US, as well as concerns over the Federal Reserve’s independence after chairman Jerome Powell revealed that he was being threatened of criminal indictment by President Donald Trump over their disagreements on interest rates.

It can be recalled that Trump has been pushing for lower interest rates in the US in a bid to boost economic growth, criticizing the Fed’s rates path for lowering the benchmark rates for only three times last year.

Macroeconomic developments aside, First Majestic Silver Corp. (NYSE:AG) recently disposed of its Del Toro Silver Mine in Zacatecas, Mexico to Sierra Madre Gold & Silver Ltd. for a total of $60 million.

Under the agreement, Sierra Madre would initially pay First Majestic Silver Corp. (NYSE:AG) with $60 million worth of cash and shares—$20 million in cash and $10 million in Sierra Madre shares. The remaining $30 million will be paid in delayed and contingent consideration.

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Disclosure: None. This article is originally published at Insider Monkey.