First Majestic rise after Cormark upgrades stock to 'buy'

First Majestic Silver

06/09/2024 14:26

** U.S.-listed shares of Canada-based miner First Majestic
 AG.N  rise ~2% to $4.96 premarket
    ** Company said on Thurs. it would buy Gatos Silver  GATO.N 
for about $970 mln
    ** Brokerage Cormark Securities upgrades stock to "buy" from
"market perform"; adds that the acquisition is a "natural fit"
for AG given its existing asset profile
    ** "The pro-forma company will have improved scale and
capital markets presence, as well as receiving a substantial
boost in free cash flow" - Cormark Securities
    ** H.C. Wainwright & Co says the deal meaningfully
strengthens AG's portfolio while providing additional growth in
Mexico
    ** GATO should increase AG's annual production by about 6
mln ounces of silver and 9 mln ounces of silver equivalent with
the combined entity expected to have annual silver equivalent
production of 30-32 mln ounces - H.C.Wainwright & Co
    ** As of last close, stock is down ~21% YTD
    

 (Reporting by Vallari Srivastava in Bengaluru)
 ((Srivastava.Vallari@thomsonreuters.com))