A Conversation with Keith Neumeyer of First Majestic Silver

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Keith Neumeyer is CEO of First Majestic Silver and chairman of a new venture called First Mining Finance. He stopped by TFMR today to discuss a number of topics near and dear to the hearts of metals investors everywhere.

Among the topics Keith addresses in this 28-minute podcast:

  • The current state of miners and mining, the cost of production at First Majestic and the steps that miners take to manage and minimize costs during this period of depressed silver prices.
  • The intentions and goals of the new venture he has formed with Eric Sprott, Rick Rule and others. Named First Mining Finance, Keith describes how it works and where folks can find the shares with the U.S. symbol "FFMGF".
  • His attempt in 2014 to organize silver producers to withhold production in order to regain some control of the paper derivative pricing scheme.
  • The letter he sent to the CFTC last month alleging concentrated positions and price manipulation. (http://www.zerohedge.com/news/2015-06-03/one-largest-silver-producers-world-slams-cftc-about-silver-market-manipulation) He also tells us about the response he's gotten from the CFTC on these issues.
  • What changes Keith would make to the current paper derivative system in order to establish a free and fair market for discovering price.

It was a real pleasure and honor to have the opportunity to visit with Keith and we wish him well in all of his endeavors. Please take the time to give this podcast a thorough listen.

TF

p.s. You may notice a few edits in the audio. Just as I was asking Keith about the CFTC and their response to his letter, the Skype audio cut out. Coincidence?


48 Comments

chocolatechiphorses's picture

SILVER COIN SHORTAGES

http://sgtreport.com/2015/07/absolutely-there-is-a-shortage-of-raw-material-silver-charles-savoie/#more-394241

SILVER COIN SHORTAGES, AGAIN.

The announcement on Tuesday by the US Mint that it had sold out of silver Eagle bullion coins due to a “significant” increase in demand with no orders being taken until August and possible rationing thereafter has resulted in a surge in coin premiums. Kitco reported that premiums “have already posted a 50% increase and pressure for further premium adjustments is expected” as “physical demand for all silver products has soared over the past two days.” USAGOLD had already been experiencing strong demand over the past two weeks but “today’s [Tuesday’s] price drop has encouraged another wave of interest.” Gainesville Coins said they were “BUYING American Silver Eagles for more today than we were SELLING them for yesterday!” Silver Doctors has the best summary of the current state of supply and premiums in this post, with 90% junk bags at up to $3.00, Silver Eagles as high as $3.25 (wholesale), a doubling of premiums on silver rounds and bars, and expectations that the Royal Canadian Mint will soon announce a premium hike. Silver Doctors feel that “if any further weakness materializes in the paper futures markets for gold and silver, we are looking at the very real potential of 2008 style physical premiums to acquire precious metals.” To put that statement in context, consider the chart below from Sharelynx.com with the current premium increases circled in red.

Maestro's picture

I did!

including the woodwind section as well.

Turd Ferguson's picture

Keith mentioned that it's tough

MODERATOR

He said to give it 60 days and they expect a better visibility and compressed spread in the U.S.

Response to: good luck
000's picture

FFMGF

Arch,

It is a real bitch trying to get filled on FFMGF--it took a lot of work to grab 20,000 shares last week. I would enter a limit order at the current market price, and then have to raise my limit 5 times to get filled. I bought 10,000 of IAG today since it was very much on sale, and didn't even look at FFMGF, and I wish I would have, so I could have seen the Ask price in the window. It will be tough to lay my hands on the other 80,000 FFMGF that I still want...

Rakka's picture

Typhoon Nangka - Latest Track

wp1115.gifHave nice day no earthquakes today

000's picture

@ Indiana $100

That is exactly how things will go, whenever we happen to reach that $100 silver price target, and "we" can't get there by day trading AGQ & NUGT, which I addressed on Friday because I thought it a worthwhile discussion, but apparently it was less worthwhile than I thought as it only received one hat tip, while much of the collective energy was spent bitch slapping one another over what I thought was useful information regarding BTC and the alkalinity of the human body.  We have a bunch of great silver stackers in Turdville that are doing their jobs and stacking silver, but a few of us Turd Acolytes are looking for more leverage than be achieved with just silver at its ridiculous present day GSR, and our interests would be best served by stacking (not short term trading the shares or ETFs) good mining shares, whilst patiently waiting the inevitable price re-set.

Terabyte's picture

Yes SMM you're right...

..the audio was terrible on today's podcast.  Sounded like there was some kind of compression on the incoming audio.  I'm sure Turd noticed it and will correct it before another one.  I finally just quit listening to it because I couldn't understand much of what was being said.  Of course my hearing isn't what it once was either. 

barrydinn's picture

Audio for keith

Agreed... It was a struggle listening to Keith. I have noticed this in other interviews that he sort of mumbles and so  while Turd is very clear Keith was not.

Barfly's picture

An important number that was overlooked

What is the average cost of production for an ounce of silver across his mines? Cash and all in? Maybe you could shoot him an e-mail and ask, Turd? I'd sure like to know that from the horses mouth. Thanks.

000's picture

Mining Costs

Barfly,

If you go to First Majestic's website, and click on "Investor" and scroll down to presentation:

http://www.firstmajestic.com/i/pdf/presentation.pdf

and go to page 12 of 36, they are forecasting all inclusive costs of $13.96 to $15.48 per ounce.

Some gold miners are making money at today's prices, but with silver as beat down as it is right now, with regards to silver miners outside of a few exceptions such as Tahoe Resources, etc., the best we can do right now is stack shares of miners that can stay in business at today's prices, and wait for the turn while trying not to slit our wrists.  We can buy cheap securities today and look like fools tomorrow when these same securities get cheaper...until that glorious fucking day arrives when the real bull market returns...

Fortunes will be made by those whose balls have dropped, who can stomach buying right now, before everybody else does after the turn becomes apparent, AND by hanging on till we can hit a juicy sell zone when silver crosses into a 3 digit price.  The other Turdite who said that First Majestic should be  $100 stock when silver hits $100 illustrates my previously stated point about the 3X leverage inherent in the shares, IF this comes true:  you have a choice today between a $5 stock and a $15 metal, and the stock and the metal become worth the same when the metal is worth $100 = 3X leverage!

Turd Ferguson's picture

Audio issues?

MODERATOR

The audio from Keith's phone through Skype was a little garbled but Ivan hear it just fine. For anyone experiencing issues, please try some headphones or earbuds for a higher quality audio.

Meemer's picture

In good company

Bought First Majestic for my dad's portfolio and First Mining Finance Corp for mine. I feel very comfortable with the company I'm keeping with these companies.

Airgead's picture

Audio Quality

I am sorry to say is contrary to usual really sub standard.
I have the excellent KEF X300A speakers 800 Euro for the two and I skipped this one.

Perhaps a bit of editing would do wonders. Piece of cake if you have two channels recorded, one for each voice. :-)

Anyway, this is a first time after many years, so in general you are doing great. :-)  (but this one.... )

SS121's picture

Good insight from Keith's world, but. . . .

the miners, or any other stock is no place to be now.

yes, some have trapped money in the system. consider offsetting this unfortunate position by stacking phyzz with system cards.

credit-card-pile1-300x217.jpg

Otherwise, the miners are a dead end street in a dying town.

Miners won't move until Silver moves, and when Silver moves the fake "market" environment in which they exist is going bye-bye.  Fire lit, exit doors chained, nobody will be able to transition those pixels into phyzz.

  • Greece,  
  • The PBOC fiat Gold stories,
  • Chinese stock charts dropping,
  • DJIA chart soothing the masses with 18,000,  
  • Shortage of Eagles,
  • a trickle of shop owners refusing to sell,  
  • Agent Durden starting to headline Silver, in order to spin/manage the perception of Silver events.

These are ALL monetary events.  Not financial, market, or economic events.

The miners aren't down because of a market cycle that is going to someday reverse and enrich those who hold miner stocks.

The silver chart is down because the owners of the silver chart want to keep the chart watching public away from Physical Silver. PERIOD.  why?  Because their system is currently operating in place of Silver and Gold, and if Silver and Gold return to their "MONETARY" role in the hearts and  minds of the folks, then Kablooey,  ...system kaput.

Physical Silver is still available at the system's fake silver chart prices!!

​MENTAL NOTES

The big July 14th 2015 Cash Out Question...

  • IF YOU CASHED OUT OF MINER PIXELS AND STACKED SILVER TODAY...  How many ounces??

SilverUSMintEagle1ozBU2015.jpg?itok=YIoI

Even if it's just one, ...it would at least feel good to be in the right position.

And one is more than zero, which is what today's miner pixels will be worth in a post-chart world.

July 14th 2015 . . . 

Small hourglass running out of time Royalty Free Stock Photos

Ruislip Ranger's picture

Audio

have tried to listen twice , can't understand Keith at all might be the audio or accent or combo off?

boomstick's picture

sound

Keith's audio was definitely low-pass-filtered (i.e., just low frequencies) at some point, perhaps on his phone/computer. My best solution was to ditch the headphones, turn the volume way up, hold the [phone] speaker near my ear, and move it a few inches away -- QUICKLY -- anytime Craig was about to speak. That ended up working reasonably well.

ArtL's picture

Audio quality

there was a loss of the mid and high frequencies in Keith's voice and a boost of the low frequencies in the audio on the podcast. Turd's voice was OK.  perhaps Keith's voice is naturally low which made the problem worse. The way to improve Keith's audio is to run the audio through an equalizer which will balance the audio by boosting the mid and high frequencies and reduce the low frequencies. This will greatly increase the intelligibility.

infometron's picture

Equalization for Mac and/or iPhone

Does anyone have or know of an app for that?

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