Another Visit With Keith Neumeyer

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With silver prices falling and now near their lows for all of 2017, what a great time to check in once again with Keith Neumeyer, CEO and President of First Majestic Silver as well as Chairman of First Mining Finance.

As most know, Keith is a staunch advocate for our cause. Whenever he's given a chance, he "calls a spade, a spade" and deplores the level of manipulation and price management within the silver space. As the CEO of one of the largest primary silver miners on the planet, Keith's leadership on this subject is extraordinarily valuable and important.

To that end, this discussion begins with a review of current events, in particular the "silver flash crash" of July 6. From there, we discuss the global silver market and the impact of low prices upon the miners, especially in the context of all-in, sustaining costs. Next, we discuss conditions as First Majestic and we close with a detailed review of the portfolio of First Mining Finance and an update on some of their most promising assets.

I hope you enjoy this audio. You'll likely find it very helpful and informative and we thank Keith for once again sharing some of his valuable time with us last week.

TF


39 Comments

Dirt_Reynolds's picture

Gold

I'll stack it.

#keepstacking #networking

abguy4's picture

Secundo?

C'mon, wake-up you bums

sengfarmer's picture

yes

Sunday morning. Thanks Turd.

Blankone's picture

4th

Holding it for charlie......Keep stacking...

canary's picture

Only one thing stands out....Only one!

If you followed all gold/silver analysts, telling you which way prices would go...You'd been disappointed repeatedly (even with their best and very logical intentions). But there was one thing standing out (at least since the financial crisis)...It's the COT report. Believe or not, fake or real,...If you traded part of your positions based on it (going long when COT was very bullish, and going short when COT was overly bearish)...you would benefit enourmously from this decades long crime.

Compwiz4u's picture

AG - First Majestic Silver Corp - Pitch Fork Style

Here's my latest take on AG.

NUGTCALL's picture

First Mining Finance

I remember Eric Sprout not being to high on this, buyer be aware.

OOOBuck's picture

Neumeyer must be one of many mining CEOs

that are pissed with the daily manipulation of their industry.

Keith is incredibly cynical of the financial "management" of his industry but still keeps swinging and informing others of the obscene abuses that he sees occurring on a daily basis. He (like us), rails against the injustice of it all.  
There must be other mining CEOs who feel similarly but perhaps simply put up with it because they don't feel empowered to execute change.  They're not prepared to contribute the time and patience or the perhaps, they feel they lack the necessary skills.  Not so Keith Neumeyer.  With calm eloquence, he manages to expose the manipulators and tear them a new one.   He has the skills and he obviously cares.

Always good to hear from him.

Turd Ferguson's picture

Yes, always good to hear directly from him

MODERATOR

Keith's perspective is FAR more valuable than the simple scuttlebutt of Yahoo or Shitco messageboard.

In this case, I thought his insights into the all-in and sustaining costs of silver miners was particularly helpful.

Sound Money Minnow's picture

Actually isn't Eric Sprott is in some ways a competitor

to FFMGF? Just asking since he is involved in Sprott Assets and ultimately mining finance himself. I remember Craig had an A2A with Eric and Eric commented on Keith being a top shelf guy. I own both SPOXF, and AG. I also own FFMGF. FFMGF may be more speculative, but I truly believe Keith and Eric are both the good guys. They are consistent in their analysis and honesty.

Just my opinion.

SMM

Sound Money Minnow's picture

Agree 100% Craig

Keith did a great job explaining all in sustaining costs, and the impact of low prices on future exploration. I think that explains why we have price spikes when the results of manipulated markets finally unwind as production lags in a bear market price trend.

Nice job Craig. Well worth the listen my friend.

SMM

Angry Chef's picture

Russia & China Declare All Out War on US Petrodollar — Prepare..

...for Exclusive Trade in Gold

http://thefreethoughtproject.com/russia-china-petrodollar-gold/

Old news for Turdites but it will make for interesting conversation with all your friends, relatives, and neighbours......ha, ha, ha, ha...Just kidding.

streber's picture

Saturday ReCap by Ed Steer

The gold price sold off a few dollars in morning trading in the Far East on their Friday.  The price began to crawl higher starting shortly before 2 p.m. CST -- and accelerated a bit in late morning trading in London.  The retail sales/consumer prices data was released at 8:30 a.m. EDT in New York -- and the gold price shot higher instantly, but was brutally capped within seconds on super-high volume.  The high tick of the day was printed minutes before 9 a.m. -- and was sold lower until around 11:15 a.m. EDT -- and then traded flat for the remainder of the Friday session.

The low and high ticks were reported as $1,214.00 and $1,232.70 in the August contract.

The gold price was closed in New York yesterday at $1,228.40 spot, up $11.10 from Thursday.  Net volume was pretty spectacular at around 217,000 contracts, with at least twenty percent of that amount used to put out the 5-alarm fire that occurred at 8:30 a.m. in New York yesterday morning.  Roll-over/switch volume out of August was fairly decent as well.

cont...

http://news.goldseek.com/GoldSeek/1500253200.php

further down (silvr)...

The Commercial net short position in silver is now down to 24,567 contracts, or 122.8 million troy ounces of paper silver.  And once you factor out the extra 30,000+ non-technical funds Managed Money longs that have been added over the last three years, this report is, with out a word of a lie, the most wildly bullish in COMEX history...especially for JPMorgan.
===

gold...

The commercial net short position in gold is down to only 7.39 million troy ounces.  I haven't seen that small a number in many, many years

Except for the 'hinky' things...as Ted put it...going on in the Disaggregated COT Report, the numbers you see above couldn't possibly get more extreme than they are now.  Of course, if 'da boyz' really wanted to hammer prices lower, I suppose they could.  But at these levels, the law of diminishing returns is in full force -- and if I had to bet the proverbial ten dollar bill, I'd happily bet it on the fact that lows for this move down are already in place.

streber's picture

Ed Steer ... Close

.

As I say every month at this time, there's a maximum of three U.S. banks—JPMorgan, HSBC USA and Citigroup—along with Canada’s Scotiabank—that are the tallest hogs at the precious metal price management trough.

But Canada’s Scotiabank and JPMorgan still remain the two largest silver short holders on Planet Earth in the COMEX futures market, with Scotiabank in the #1 spot by a country mile.

However, the latest COT Report -- and this Bank Participation Report -- shows one thing for sure -- and that's that world's banks appear to be heading out of Dodge...led by the ringleader...JPMorgan.

And as wonderful as this news is, Ted Butler's big question still needs to be answered -- and that is:  "Will JPMorgan and a couple of the other Big 4 traders, refrain from going short during the next rally?"  If they don't...it's the "same old, same old".  But if they do...off we go.

JPMorgan et al have expended a lot of effort since mid-April to cover as many of their short positions as they can in all precious metals, particularly in silver.  As the Bank Participation Report shows, the world's banks short positions have been slashed to never-before-seen low numbers -- and you have to ask yourself why they would throw themselves headlong back into the lion's mouth after that.

Whatever happens, I doubt we'll have long to wait for an answer.

OOOBuck's picture

We'll know within the next hour

how Asia responds to Friday's bullish action in NY.  If it continues, we just may break the never, ever rule as we move into and through the New York trading day. 

How 'bout a big fat dollar up in silver?  Wouldn't that be somethin?

Ok, I'm being a bit of a dreamer but one of these days Alice..... "Pow - Zoom!!!"

silver10sguy's picture

Athens Gun Club vs Athens Mall

As mentioned earlier I went to Athens, GA for the day to get over to the shooting range.  Afterwards I decided to visit one of the local malls in west Athens and was shocked at the lack of mall traffic.  Walking from one end to the other end  I probably passed about 25 people walking in the opposite direction.  The FED, CNBC cheerleaders, and the media have been patting themselves on the back for their great economy.   After another of my own economic day trips they are dead wrong.  Not surprisingly the amount of people at the Athens Gun Club was a steady flow of customers determined to practice and defend themselves if need be.  I suspect in the future that the crime rate will rise a great deal if a very weak dollar brings price inflation that cripples the wallets and confidence in the American dream.  We have seen reports of manufacturing leaving the country, closing retail stores, millions on food stamps, part-time jobs, broke cities and recently states,  declining middle class,  broke consumers, rising corporate debt, and of course the national debt.   YET the stock market is rising  and my retired wealthy friends around northern Georgia think everything is all good.   Nevertheless, I support President Trump as he will have to deal with the debts and rebuilding our nation somehow with a stock market, bond market, and dollar eventually in big trouble. 

Dr G's picture

Asia responding nicely so

Asia responding nicely so far. I'm up $1k in an hour on my /SIU7 and /GCQ7 buys.

JQuest's picture

Bix Weir ANSWERS Chris Duane's Crypto Challenge

Jihk2431's picture

Chris Duane is a tool...

He acts like he is some sort of visionary, yet he acts as if crytos are fad and will end up worthless.  The truth is, they are not going away and it is only going to get bigger from here.  Every time the price moves down, they come out and say it is crashing, but they fail to recognize it is a freely traded market in an early adoption period.  It is always crickets once the price bounces back.  I have very little invested in cryptos, but I can see where this is going.  It's like arguing about the internet in 1995 - it is game, set, match already.  

By the way, Chris was a partner in a criminal enterprise known as the Mulligan Mint.  I'm not sure what his role was there, but he came out and claimed to be a victim and blamed it all on his partner.  He continues to hawk his original coins, so remember he is always selling his product (he can't shake his former profession as a used car salesman).

Texas Sandman's picture

Bad news good news

Bad news is my forex account is denominated in bitcoin.

Good news is the assets in that account are currently backing a leveraged silver long position far larger than the account in nominal terms.

https://www.mql5.com/en/charts/7351147/xagusd-d1-fx-choice-limited

yes

Angry Chef's picture

Jihk2431...

And we all know who invented the internet...right ?

" It's like arguing about the internet in 1995 - it is game, set, match already "

surfeitndearth's picture

Indonesia, China, Gold and ISIS

Indonesia, China, Gold and ISIS

F. William Engdahl

https://journal-neo.org/2016/02/14/indonesia-china-gold-and-isis/

"According to Indonesian sources, geological estimates are that Grasberg holds a total gold of possible 16,000 tons. That would be fully half of all world official central bank gold holdings in that one mine. At today’s price of gold at $1,107 a troy ounce, that translates into a gold mountain worth of some $516,000,000,000, or more than half a trillion dollars. That’s money some would say worth killing for."

Jihk2431's picture

You mean Al Gore

DARPA created it, but with it they actually gave us more freedom.  Sure we're easier to track, but harder to divide and conquer.  Bitcoin has the potential to go either way, but it and many other cryptos are here to stay.  Chris Duane is wasting his time arguing against it-he is just doubling down on an incorrect prognostication.  I despise someone unable to re-evaluate their assumptions and conclusions.

jaba's picture

@ Turd

Did Keith give any indication in your pre/post interview chat of how the miners might wean themselves off their dependence on the bullion banks for their finance and as the primary purchaser of their silver/gold production? Does ABX have any attraction/functionality in that regard? 

Dr. P. Metals's picture

Lololol

first, it was SGE that was going to save us, now it's the ABX. Next year it will be the PDQ and the year after that the XYZ. I'm sure of it. 

Noteriety's picture

Even Investing.com

"...Large Specs are habitually wrong...almost a necessary prerequisite to a strong advance"

https://www.investing.com/analysis/the-biggest-opportunity-since-late-2015-200201371

Silly Long Specs.

simjojim's picture

From the other thread

Thanks a lot waxybilldupp for replying.  So your experience in 2008 was that you tried to purchase physical silver from your LCS's there was none to be found at $9 as per the spot price but rather you did manage some slim pickings at $14.   I wonder what the Silver Eagles were going for?

Anyway, what does that tell us?   I know what it tells me, silver at $16 almost 10 years later is a fucking GIFT.  

Keg's picture

Embarrassment

I'm embarrassed that Jamie Dimon is an American.

DE7XxmcXoAE_dU7.jpg

silver10sguy's picture

Facebook Censorship

This past week I was talking about the challenges of our world reserve currency on Facebook.  A friend asked me a question and I answered briefly hoping to do more discussion privately.  Now my post has been deleted as it appears the fascist fiat money goons from Facebook did not approve of my comments.  I also had been occasionally going to a website with great graphics giving a  wonderful historical account of the USA dollar and origins of gold and silver going back to the late 1700's.  It is gone also and I swear anything of historical reference to gold and silver is being removed more and more.   I sure hope the Deep State is removed and we return to "real money." 

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