UPDATE: Bank of America Initiates Buy on First Majestic Silver

Bank of America initiates its coverage on First Majestic Silver

with a Buy rating and a $22 target price on the company's strength to produce dividend. Bank of America says, "Vancouver based First Majestic has five silver mining assets in Mexico, three of which are producing and a fourth is under development (Q4'12 start up). In 2012, First Majestic is guiding to the production of 8.8-9.3 million silver equivalent ounces (

) at US$8.61/oz. By our estimates, it has the financial strength to introduce a dividend by year end. In 2011, First Majestic produced 7.56 million SEO. First Majestic is working to double production to 15.2 million in 2014, with cash costs expected to decline. Risks – BofAML expecting big reserve increases at mines." AG closed at $18.50 a share on Monday.