First Majestic Silver (AG) has asked Canada’s Mexican ambassador to intervene in an escalating $209 million tax dispute, reports Reuters.
“We’ve been trying to get somebody to the table to finally put this behind us,” First Majestic CEO Keith Neumeyer told Reuters. The company owns seven silver mines in Mexico and wants ambassador Graeme Clark to set up a meeting with President Lopez Obrador so the dispute can be resolved.
According to Neumeyer, Mexican tax authorities have rejected three settlement offers, leading the Vancouver-based company to commence a trade challenge last month.
Meanwhile President Lopez Obrador recently stated that some Canadian miners are behind on their tax payments. He has asked the Canadian government to put pressure on these miners to prevent the matter proceeding to international tribunals.
Shares in AG have plunged 25% year-to-date, and analysts have a cautiously optimistic take on the stock’s outlook. Its Moderate Buy Street consensus breaks down into 3 buy ratings vs 5 holds, while the $10 average analyst price target indicates 8% upside potential lies ahead.
Speaking for the bulls, HC Wainwright analyst Heiko Ihle reiterated his First Majestic buy rating on June 12 with a $10.50 price target.
He made the call after AG announced an agreement to purchase a stream on 50% of payable silver from the Springpole project in Ontario, Canada for $22.5 million in cash and shares from First Mining Gold Corp.
Springpole maintains a compelling precious metal resource with long-term production potential and is located in a geopolitically safe jurisdiction, the analyst told investors.
“We believe that this acquisition provides First Majestic with a potentially de-risked revenue source, as the company has no ongoing operational obligations, and the transaction may ultimately yield incremental returns in an improving silver market” Ihle wrote.
Thanks to this new silver stream he now believes that First Majestic’s exposure to an upward trending silver price will span beyond its currently producing assets in Mexico. (See AG stock analysis on TipRanks).
more recommended stories
Argentine cartoonist Quino, creator of Mafalda dies at 88
BUENOS AIRES, ARGENTINA (September 30th, 2020).-.
El Cuyo hoteliers say foreigners are harming the environment
EL CUYO, YUCATAN (September 30th, 2020).—.
Spain and the Pope need to offer apologies for abuses during the Conquest – AMLO
President Andrés Manuel López Obrador said.
First Presidential Debate: Chaos Reigns, Democracy Loses.
The first presidential debate between Trump.
Truck carrying fuel explodes in Tabasco
The explosion of a truck (pipe).
Woman reported missing in Merida is safe and back with her family
MÉRIDA, YUCATAN (September 28, 2020).- Cecilia.
“Lord Pizza” man who refused to wear face mask beats up worker at pizza place (VIDEO)
We must all do our part.
AMLO’s long-standing aversion to public spending undermines his popularity
In early July, as Mexico’s tally.
Presidential debate 2020: Watch Trump vs. Biden debate live tonight
Donald Trump and Joe Biden will.
Mexico shuts down “Puente Grande” maximum security prison
MEXICO CITY (AP) — Mexico announced.