First Majestic Silver (AG) Could See a Strong Breakout if THIS Happens

Over the past few months, a trendline of resistance has formed in First Majestic Silver (AG).  If/when this trendline is broken, traders can expect a significant move in the stock…

First Majestic Silver (AG) is a mining company focused on silver production. Last week, the company announced the total production in the third-quarter reached 5.2 million silver equivalent ounces comprising 3.2 million ounces of silver and 25,771 ounces of gold. Compared to last quarter, silver and gold production increased 72% and 63%, respectively, due to strong operating performances across its three mines.

These increases are partially due to the fact that the company had to suspend operations in the second quarter because pandemic induced restrictions. But the company did have strong production as its La Encantada mine’s production produced 978,416 silver ounces, which was the second highest quarterly production since 2014.

The company has a current ratio of 2.5 and a debt to equity ratio of 0.3, yet its interest coverage is -5.2, so its fundamentals are mixed. Cash at the end of the quarter stood at $112 billion, which is down from $152 billion in the first quarter.

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