Windfall Profits Loom From Silver's Spike

First Majestic Silver (NYSE: AG) produced another 1.8 million ounces of silver during the second quarter of 2011, sauntering one step closer to its impressive 2011 target of 7.5 million ounces. The output yielded a precise match to those regal production numbers from the first quarter, although the company's powerful underlying growth momentum continues unabated. While we wait for earnings results to trickle in from the sector over the coming weeks, a little fun with numbers (using First Majestic as a case study) can help Fools to anticipate the kind of quarter we can expect from the group. First Majestic's first-quarter net profit margin of 43% would qualify as an astonishing degree of profitability in many other industries, but for silver miners such feats have become commonplace. Silver Wheaton (NYSE: SLW), as a result of its unique business model, dominates in that category with a stunning first-quarter net margin of 82%.... Read more