Keith Neumeyer on with Future Money Trends

68
Sun, Sep 20, 2015 - 2:00pm

As you know, my friend Dan at Future Money Trends occasionally sends over videos for TFMR readers to review. This latest interview with Keith Neumeyer, the CEO of First Majestic Silver, is certainly a must listen.

The original link to this video can be found at the Future Money Trends site: https://www.futuremoneytrends.com/trend-videos/interviews/bear-market-sh...

Dan describes the video here:

Keith Neumeyer, founder of First Quantum Minerals and First Majestic Silver, two companies that achieved the billion-dollar market cap club, recently launched a new company, First Mining Finance (TSXV: FF).
Less than 6 months old, this tiny 30-cent-a-share company has recently announced the acquisition of millions of ounces of gold, bought for between $5.79 and $8.26 per ounce of gold.
This comes off the heels of a recently closed transaction, where FF paid less than $9 an ounce when they completed a hostile takeover of Coastal Gold.
We interviewed Keith Neumeyer, a recent winner of the Entrepreneur of the Year Award for Metals and Mining, to discuss the current opportunities he is seeing right now.
Mr. Neumeyer, also the current CEO of First Majestic Silver, one of the world’s lowest-cost primary silver producers, told us that the silver market is tight, and he believes the world will soon see triple-digit silver.
When it comes to the opportunity to buy assets cheaply, he said this is a once-in-a-lifetime opportunity for investors. He used to say once-in-a-decade opportunity, but the bear market has now helped him secure deals for gold at sub-$10 an ounce, shocking a lot of seasoned investors, making this potentially one of the best times ever to invest in the resource sector.

Thanks to Dan for sending this over and I encourage everyone to give it a listen.

TF

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  68 Comments

AIJ
Sep 20, 2015 - 6:15pm

Great Rebuttal

What a class act. I'm sure you make Craig proud since Denver Dave is a good friend.

I like the line from Goose in Top Gun;

"they were abused children"

I understand. Peace.

Just bought three if these....while they last....

Patriot Family
Sep 20, 2015 - 7:00pm

I'm with BarFly

The data on supply vs. demand can be used to support both sides of the argument. I'm with BarFly on this one. This whole thing smacks of a retail product shortage, and not a raw silver supply shortage (i.e., what the retailers need for "bullion" prodcuts). In my view, the retail product suppliers misforecasted demand at this price point. Now they are playing catch-up. Retail sellers are playing the game by pushig the shortage rumor and charging substantial premiums on silver and will be positing nice profits in Q3. They will continue to raise premiums through Q4 if demand doesn't abate and certain product lines are still not available in quantity. It's total BS that retailers raise premiums within a few days of each other, regardless of the strength of their supply or inventory. They are just like any other bank or business, and will maximize profits. I don't blame them. Wouldn't you?

Plus, LCS reports aren't any good indicator. They are only one notch above the consumer on the street in the supply chain, and they typically aren't good at forecasting local demand.

I've been in the forecasting business for 15+ years, and I have no other opinion until the lack of substantial evidence indicating a raw materials supply issue changes to something more convincing. I don't consider regurgitated information on multiple internet sites indicating some sort of supply shortage on the raw materials side as evidence. I can tell you this - I know when I smell games being played.

Bottom line, I won't be buying ASEs, Libertads, Maples, etc. at these premiums ($6-$7 for an ASE? Really?!?). I'm just not that gullible. However I'm still seeing 100 oz bars with somewhat reasonable premiums and those might still be a good deal.

Sep 20, 2015 - 7:01pm

Joseph

I still cannot ge 22LRs cheap... but the .223s are back in stock ans cheaper than ever.

infometron
Sep 20, 2015 - 7:35pm

Re: Silver shortage

My take is a bit down the middle, and I pounded this drum a while back now. If there is no wholesale shortage, and if businesses like Sunshine are not running at full capacity, then that suggests to me two possibilities.

1) there is just a mouse in the snake, supply side was caught unprepared to digest the uptake in demand for coins and small bars (100oz or less)

2) there really is a wholesale shortage, i.e., of 1000oz good delivery bars

If 1) then the supply shortage will be very temporary and fairly quickly resolved.

If 2) then there should be solid evidence of that, as Barfly suggests. Seems to me there are some reasonable grounds for inferring that there is perhaps a looming wholesale shortage (not proving, where only failures to deliver would suffice). To wit, SGE, SLV, and COMEX registered draw downs coupled with increasing Chindia demand, decreasing Mexican production, etc.

Also, if 2) what better way to fend off the inevitable than to purposefully cut back on supply for producing retail coins and bars? Think about this: the powers that be would benefit by putting off the inevitable a bit further and keeping monetary metals out of the hands of the unwashed, and the companies in the retail stream would benefit through higher premiums, which would milk aspiring stackers. Win win lose?

mel
Sep 20, 2015 - 7:36pm

@ Patriot Family..

I agree with what you've stated. We have to be mindful that we don't over state/ over embellish/or straight BS the facts because to do so will destroy our credibility....simple as that..

As I posted earlier, the large coin shops in Vancouver B.C. had a lot of 1 oz U.S and Canadian product 2 days ago when I contacted them.

For those looking for a sweet deal, there's a coin shop in Calgary Alberta, which I contacted on Friday, who were temporarily out of 1 OZ Canadian Silver Maples but had a number of 1 oz Red-tail hawk silver coins and they were selling them at same price as the Silver Maples ! Don't know how many they had. I won't name the shop but there aren't that many in Calgary.....

mel
Sep 20, 2015 - 7:55pm

@ addendum

Forgot to mention, I'm not revealing the name of the coin company in Calgary Alberta out of respect to our host as they are not sponsors on this site..

Barfly
Sep 20, 2015 - 8:15pm

Infomatron - putting it off

With 7% of one month's supply with held, it would buy them all of about 2 days. Seems not worth the effort, but I'm not in the secret club, either.

Newager23
Sep 20, 2015 - 8:28pm

Sub $10 Gold in the Ground

I can confirm that their are dozens of companies with gold in the ground valued under $10 per oz. There are 82 late stage development stocks in my database with future reserves (my estimate) valued under $10 per oz for their market cap. If First Finance Mining had the money, they would be buying up several of these. Here is list of 50:

Adventure Gold Inc ---African Gold Group Inc. ---Almaden Minerals Ltd. ---Amarillo Gold Corp ---Atacama Pacific Gold Corp. ---Aurvista Gold Corp ---Avala Resources Ltd ---Az Mining Inc ---Barkerville Gold Mines Ltd ---Batero Gold Corp ---Bear Creek Mining Corp. ---Canadian Zinc Corp. ---Exeter Resource Corp ---Freegold Ventures Ltd ---Gold Bullion Development Corp ---Gold Canyon Resources Inc. ---Gold Mountain Mining Corp ---Golden Arrow Resources Corp ---Goldquest Mining Corp ---Gryphon Minerals Ltd. ---Heatherdale Resources Ltd ---Inv Metals Inc ---Kula Gold Ltd ---Lexam VG Gold Inc. ---Loncor Resources Inc ---Magellan Minerals Ltd. ---Manas Resources Ltd. ---Midas Gold Corp ---Minco Silver Corp. ---Mines Management Inc. ---Minnova Corp ---Moneta Porcupine Mines Inc. ---Newcastle Gold Ltd ---Ngex Resources Inc ---Northern Gold Mining Inc ---Orezone Gold Corp ---PC Gold Inc ---Pinecrest Resources Ltd ---Renaissance Minerals Ltd. ---Rio Novo Gold Inc ---Rye Patch Gold Corp. ---Salazar Resources Ltd ---Sandspring Resources Ltd. ---Sihayo Gold Ltd. ---Silver Bear Resources Inc. ---Silver Bull Resources Inc ---Spanish Mountain Gold Ltd ---Telson Resources Inc ---Tyhee Gold Corp ---Vista Gold Corp.

StevenBHorse
Sep 20, 2015 - 8:44pm

Let's clear this up right quick

With 7% of one month's supply with held, it would buy them all of about 2 days. Seems not worth the effort, but I'm not in the secret club, either.

So are you trying to tell me that western refiners that are experiencing the 5 MM ounce backlog have access to the entire world supply of 850 MM ounces?

At the very best, they would have access to the US, Canadian silver supply. Are you suggesting that the US refiners have access to Chinese and Bolivian mine supply?

Let's just assume 2015 output is the same as 2014.

From the silver institute:

US - 37.6 MM

Canada- 15.5 MM

We are also assuming that all production can go to fill the requirements of the mints and refiners, and that mines don't have direct supply contracts with industrial customers. You are also assuming that production is continuous throughout the year with no seasonality.

US/Canada Monthly Production = 4.4 MM = 5 weeks

5 weeks again assumes that ALL the production of Canada and the US are going towards blank production, and none of your industrial consumers of silver.

You should probably get back to making/drinking your wine.

tyberious
Sep 20, 2015 - 9:34pm

Is Silver Intentionally Being

Is Silver Intentionally Being Drained And Diverted From The Retail System?

"I want to preface this post with the stipulation that it is, at this point, only a theory that may be completely off-the-rails. But, then again, it might be simplistic enough to meet the requisite explanative demands of Occam’s Razor.

Most commentators and bloggers do a fine job regurgitating and repackaging information and developments which have already become obvious. But the large majority refuse to take the analytic and intellectual risks required to advance ideas based on “tracks in the snow.” Or they may just not see or be aware of the “tracks” that have appeared.

I know that since it became clear to me in late 2001 that the U.S. population was under “attack” by the wealthy, power-hungry elitists who have gained control the system, I have been able to see how the economic, financial and political collapse of the U.S. was going to unfold with a fair amount of clarity by applying this think-like-a-criminal algorithm: “what would I do next if I were a criminal that could operate unshackled from Rule of Law?”"

https://investmentresearchdynamics.com/is-silver-intentionally-being-drained-and-diverted-from-the-retail-system/

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