Author argues silver miners selling at spot could see outsized margin gains if silver holds high, and is long AG calls.
Unpriced research observations (excluded from Calls and Returns):
AG — LONG The author argues that silver mining companies selling at spot prices could see margins expand dramatically if silver holds its value above current levels for over a year, since miners profitable at $30 would make far more at $80. He holds calls on AG (First Majestic Silver) that have been profitable and believes the stock should move 2x-3x relative to silver rather than tracking it nearly 1:1. He notes a volume spike to 30 million shares versus a 20 million 90-day average as a possible sign of increasing traction. The main stated risk is that the thesis depends on silver holding its value for more than a year. resolved_asset_type_mismatch
I have some calls on $AG that have been printing and I believe it will keep going up if silver price holds above 70, their stock price has moved almost parallel to silver when it should be moving 2x or 3x compared to the price of silver