welcome once again to the real money
show hosted by Guildhall wealth
management folks this week we have a
special treat we are going to be
interviewing Keith newmeyer CEO of first
majestic and for those of you that don't
know much about mr. Newmar he is
certainly somebody we find very
knowledgeable about the silver market
and silver trends in general so you do
not want to miss this show it's going to
be a very important interview that we do
and part of our ongoing I guess sort of
attempt to bring more voices in this
community out to you the listening
public in addition to that Jeremy and I
are going to be spending some times
talking about our good friend and friend
to the real money show Paul Craig
Roberts who wrote an article on the 20th
of March called America is losing its
economy now folks there's a lot going on
but one thing we know for certain is
that it's so important to understand
this from the perspective of what is
related directly to silver silver and
gold those are our first choice metals
and we have spoken about them at length
for years and years and years Keith
Neumayer is a fantastic individual he's
worked in the investment community since
1984 he began his career at a number of
Canadian national brokerage firms mr.
new Meyer moved on to work with several
publicly traded companies in the
resource and high technology sectors he
also was the original and founding
president of First Quantum minerals
limited and he also found it first
majestic which we're going to be talking
about today a little bit back in 2002
and first mining finance in 2015
mr. Neumeier also has listed a number of
companies on the Toronto Stock Exchange
and as such you can imagine he has an
extensive amount of experience dealing
with the financial regulatory legal and
accounting issues that are relevant in
the investing community
mr. newmeyer was the winner of the Ernst
& Young's Ostrom Entrepreneur of the
Year award in 2011 for the metals and
mining category and we want to welcome
him to the show today Jeremy will be
conducting the interview and we will say
hello to mr. newm our welcome to the
real money show Keith it's a pleasure to
have you here and why
it's a pleasure to speak for the first
time excellent and we will just jump
into some questions right away we you
know we've been listening to a lot of
other interviews that you've been giving
and one of the things I noticed is that
you call silver a strategic metal and I
was wondering if you can expand on this
a little bit perhaps discuss where you
are seeing demand for silver coming at
this moment well I came up with that
phrase oh so difficult now and it's I've
heard it repeated in a couple of circles
and I'm hoping it's going to catch on
you know because of course Silver's
precious we all know that but you know
it I don't think most people actually
know you know how critical silver is in
the day-to-day lives of the human race
and many uses of silver are continuing
to grow and remaining nine to one
currently on a global scale which is
pretty scary and undermining one ounce
of gold worldwide for every nine ounces
of silver and silver is depleting very
very rapidly about God supplies are
depleting and my supply has been
dropping about three consecutive years
of mine supply dropping and it's getting
pretty crazy out there if your
electronics manufacturer a novel or a
Tesla or Samsung or so new year you know
one of these big manufacturers you gotta
be worried I think I just rotate sort of
supply to that Condor that's all so
that's why like why I call it strategic
because everything that we're doing is a
human race to go green and everything
we're trying to do toiletry electrify
the planet in other ways then oil and
gas are going to require a lot more
silver than currently mining yeah I
think that's interesting as well when we
look back for example at the run the
first run to $50 there was lots of
silver above-ground and companies like
Kodak and maybe Tiffany's or whatnot
probably weren't thinking about
panicking at all they knew the product
was there but I do wonder if these type
of major industries Apple or you know
tech companies that require so much
silver starting to think we'll wait a
minute we they they didn't they
stockpiled back then now they don't have
a stockpile I wonder if they're even
paying attention would you know at all
well we're getting approached by the end
users over the last couple years we only
think it approach more advanced which is
a little bit unusual
the mining sector banks you have this
relationship or by you know the mining
sector just sells their metals into the
banking system and the banking system
that they'll find buyers for the metals
and it works very well and the miners
get paid and the end consumer gets a
medal and that to itself a client system
there's there's flaws in the system of
course but more abstractly the way it
works and this is working like dr.
decades had known after decades and you
know with the with the end consumer side
to come directly to the miners it's
interesting is is just changing the
space and we've seen a couple of traders
the Glencore and open up a brand new
exchange which was just in its infancy
reasons first here and we're just
looking at it now whereby you know we
could potentially if we decide to start
using this exchange start selling our
malls directly to being consumer
bypassing the Comex and the other
exchanges around the world so it's it's
interesting the direction with all and
with the you know you have talked about
that as well the idea that the exchanges
might be changing the money you know the
way the the system is set up today could
be changing you're mentioning a couple
of those changes just now so with that
said looking for some price targets on
on the metal of course you're on record
several times but you know where do you
see some price targets for the precious
metals in in the next several years and
what do you think would probably need to
happen for us to see those ultimate
breakouts that a lot of investors in
mining companies as well as the physical
are looking for yeah I come on record
you know calling for triple digit silver
and you know that the math is relatively
easy and you know I think sometimes
sometimes it is so easy people doubt
that it becomes actually possible but
when you're nine mining nine to one why
would the ratio on a supply to nine
fundamental base not be mine to what
that's where it should be trading that's
where we're mining you know historically
can go back a thousand years you know
the average is about 15 to 16 to one
it's only in the last 40 50 years when
the Big Bang started trading the metals
commercially out you know in the early
seventies when the Comex was formed that
the commercial started trading options
against the metals you know that's
where the price is fair suppression
really started and how long can that
scheme really last because ultimately
about good news you said they're huge
you know there was a substantial amount
of silver on the ground where they could
use to hedge against their positions
that they're taking during the
commercial marketplace but today with
such tight supplies and the most of the
mental now is just a few gas there's
actually third know about ground further
supply outside ETF so if you're short
and you got to deliver to deliver
physical metal to the end consumer and
you can't get it which i think is
exactly what's going to happen then it
becomes a real issue and that's when it
becomes headline news and that's what I
think the catalyst will be because you
know it's the markets as we know are
driven by headlines they're not given by
fundamentals you wouldn't see you know
the Nasdaq or the SAT training and the
levels are trading today if if there was
any fundamental reason behind the market
you know they're just trading yield
their trade trading
what's up whatever's green on the screen
there there by whatever is right on this
community selling because they're all
momentum traders and you've got you know
it's several thousand hedge funds around
the world all do the same thing and
that's how you get a thousand point down
days were on the dollar now back in
January we saw a consecutive sized point
down dates because that's when all the
computers all the people are doing
exactly the same thing and you know
works both ways so right now the metals
are out of favor you know gold and
silver I just came back from the bank
Montreux my conference which is a big
institutional conference held every
February in Miami and a talk of all the
big institutions and this is all the big
money there's more than a trillion
dollars under management and room for
this convention and all all of them are
talking on nickel and cobalt copper no
one's talking about gold and silver you
know none of these high-tech solutions
for for electric vehicles or whatever
technology that you want to talk about
wouldn't operate without silver this is
where I get kind of lost in the whole
headline stuff that's written because
you want to continually hear that you
know silver support mines go
completely wrong thinking boss over
chronology started off this call by
attending that service very strategic
and that you couldn't mine a Bitcoin
without roots silver I think about after
sec you couldn't driving like a vehicle
without silver and then I had a fund
manager talking to me about the night
horizon glide glazing over and she was
wondering maybe on the bike I said you
can't drive on that could be pulled up
so it says you want an electric vehicle
it's a computer on the stack of
batteries that computer has three times
more silver and then a regular normal
fuel combustion car so even as we
produce these electric vehicles and many
later to yourself there's none of
robotics and other flying cars and all
the other exciting things that we're
going to do the topic in the next
several decades that's going to be very
very supportive for the price of silver
so I think we will and it sounds crazy
with your training at 1650 no silver and
very can get over $70 took off the
triple digits over about doing that's
where we're going and I think it's we
need based on pure supply-demand
fundamentals Keith this is Darren long
from the real money show and I'm curious
if I could ask what in your opinion is
the percentage of silver coming out of
the ground right now via primary silver
mining operations around the world
yeah it's not much it's the it's about
30 percent from primary miners so you're
talking about that
be HP's and they're the big guys I like
the shops Dodgers you know these guys
you know they produce some silver
because they've got think they
compromised they've got good sync mind
so there is some silver coming in those
operations are sure it works out about
70% of silver comes from secondary
production and if you were to look upon
the market as a whole and having heard
what you just said about the Comex of
bypassing the Comex I think one of them
the great misunderstandings as far as it
relates to pricing is that every day an
individual comes home who may want to
let's say for example own physical
silver may want to speculate in physical
size really that's what they're doing
and they hear the price announced every
day and lo and behold for years and
years and years
this fantastic argument that's being
built behind the scenes of everything
you've discussed already the price of
silver stays stagnant and somewhat in in
in the same kind of range without any
major markup now knowing that there is
always events that drive the market in
your opinion is it possible in the near
future that we would be able to buy
packs the Comex and and thereby
essentially get a different day-to-day
price on silver well we're pretty small
close when the whole scheme of things
not on a level you know the post
acquisition I were just doing right now
which one closed at the end of a a poem
about a 30-minute Civic redemption it's
39 an ounce silver couldn't to do sir I
mean eight hundred million dollars
market so you know if it's some come
home you know effect on the market you
know printers because it's going to do
it's it's we're pretty small players so
you need all the big guys to really want
to go down that path and it's not going
to start until there's over to a small
market in unifix 800 million ounces
tournament you know let's say seventy
dollars and I'll just yeah it's less
than 16 billion dollar market so you
know you're talking about a pretty tiny
market so yeah these changes of our
pricing commodities and in different
wage and they're currently being gone is
going to be directed by the big
conglomerates and it's going to be done
you know outside of the exchanges they
noted that which I think will ultimately
happen but kind of yes over will be in
my view in the middle at paddles to
actually go down that path but you know
I still you know it is frustrating I'm a
big supply team and fundamental and
believer you know when I first suggested
together till I was five bucks long
after two dealers at fifteen it did I
didn't think over the next five years
it's gonna go all the way down 50-day
1330 which was a Jalloh in January 2016
which is pretty shocking to everyone you
know it's recovered as its struggling to
get over eighteen now that come I think
it's just a matter of time you know
everything in chanting each other
everyone's following was ink and then
nickel and cobalt and as I said earlier
you know once people I should figure out
the fact that all these potential
economic sense that these these rare
metals they call them our manager cobalt
for exactly or others who are going into
these technologies these technologies
simply would work without so votes that
story will get out and the market will
be driven by diam diet you know headline
or moves that that's going to attack
this market because it's surely not been
priced on base I should have an Italian
entrance yeah it sounds like when you're
when you put together the fundamental in
the package and the idea that okay we're
reminding it at nine to one it's
currently trading around eighty to one
give or take you're saying that the
supply in the ground is dropping is that
is that an indication of for example
like a peak silver idea I don't know
about that you know because it all comes
down to price you know current metal
prices you know there's not too many
miners making a bunch of money you don't
have you know work for a kind of it's a
break-even kind of business you're a
little bit of property on there and
we're still grinding down our costs and
then we're making it were mentioned by
but were you know we're not making that
profits really required to to expand the
operations and that's why the state's we
can separate years ago reduced us over
production worldwide because of the
price and all of a sudden 100 or I'm
still gonna happen tomorrow
of course production is going to go up
because that's going to make a lot a
lower grade mines open an economic
always like economic but you know my
thesis is is that's exactly what we need
because we don't currently have enough
multiplied with to to supply the demand
that's that's coming and that's why we
didn't melt the deficit you're gonna
know the over lasted years there's most
there's only been a few years in the
last 30 years we've actually had a
surplus supply and grounds down and even
believe some of the numbers that ten
these groups put out because well I've
I've talked to refineries and I talked
to the big electronics manufacturers and
I've asked to find how much metals goes
through your system
you know how much you know for a cell
phone manufacturer how much more silver
do you consume a year and your cell
phones and this is top secret
information and I want anyone to know it
so when when these analysts come up with
Singh their supply-demand fundamentals
in your band and it plug in all these
numbers you know that I have a clue
Dustin you said I didn't have a clue
what Samsung is using or test as using
they just plug in numbers are the best
guest adores and that always matches at
the bottom you know there's always a
magic balancing on the bottom line and
then that's what they call the circus or
that's what they call the deficit
obviously which is the fixed number of
games it's all nonsense but you know you
know I know from being in this industry
for 15 years that we've never had
problems telling silver on the demand it
was increased in quite rapidly and
that's what it's really this marketplace
and torches start showing up a pie shop
at the same time and what's great for
for first majestic is I know you're
working on ways to make it cheaper to
mine so that you're you're prepared for
when the market does rise and you can
rev up much quicker than let's say
starting up one of those older mines as
you were just saying so can you let our
listeners know a little bit more about
first majestic and first mining gold and
how they can get some more information
about those things yeah you're right
regarding we we continue trying to but
this is headed the mining sectors hold
is changing you know it's really you
know whatever forced into it or not I
guess there's a big fair to be had but
you know obviously we're we are a large
company or publicly traded we've got 40
100 employees we go to internet no no
over 50,000 shareholders so we've got a
lot of responsibility make sure that we
do our best to to turn a profit do that
by you know automation and mmm you know
reducing input cost by a variety of
different attendees and and that's the
other mining sector in my view is going
through quite a change right now because
it's been very very slow and reacting to
new technology and routines you know
today the United States produces more
and that if they never have these for
several decades in ways and in death
that's got a lot to do with what such
solely to do with with new technologies
and the mindset is just now starting to
adopt some some technologies or
suggestive is actually one your leaders
in this area was more without a huge
company but your we do or we can to to
investigate invest capital into quite
exciting technologies which we can do
and improve our operations quite
dramatically over the last couple years
and if you look at our our presentation
on our website you don't you don't want
to go to our website at your first
jessic calm that could pull up the
PowerPoint and go into that look at some
of the interesting technologies and
adopted and then asked five years and
some of their technologies that were
adopted into the next two or three years
and we spent a long time telling
investors about that because we think
it's important if silver price don't
want to go higher and then they david
understand the $70 raise but
inconceivable future you know we're
going to continually look for ways of a
kind of data cost i think it's critical
that we do that and that excites me
because i see the efficiency that is
creating so you know again though they
had sex their people to look at first
line of gold you did mention that to add
the chairman of that company on though i
founded that country back and in 20 15
minutes people 2015 on tablet they're
both quite different animals are the
first majestic silver is the second
largest so Bruce or Mexico it's got six
producing mines with the seven buying
just in between the processor they
purchased said Babbitt then in April
early May well we'll have our seventh
bonnet portfolio and then anonymized
gauges for by the 30 million I'll say
what kind of producer which makes us
number two in Mexico it's just one of
the purest I said two countries in the
world and obviously one of the most
leverage to to the types of silver and
said the prices move our stuff tends to
do very well first mining gold is is
it's gold
obviously most of the assets on Eastern
Canada that 25 different projects some
scatter out northern Mexico over the
core assets are really in Ontario where
we've got three exact amount of
targeted gas called portfolio agents in
a research in the mining sector in these
three projects in Ontario we believe all
that reducing mines over the next sub
type some odd years and then died there
that's pretty exciting place to be at
and the start is 22:52 he glows which is
unfortunate there's been a new CEO that
I disappointed just about a month ago
and he's getting us be renting and we're
just you know working to build those
assets and develop them and go to London
just keep advancing and in deviously and
it's gained limited collection over the
next thirty years well we will put links
to both of those sites on our on our
website at Guildhall well calm through
the real money show so anyone who wants
to listen to the podcast they can find
that information and if you don't mind
we'll put up your Twitter address as
well how does that sound interesting
information excellent well Keith
Niemeyer it's happy to have more flowers
exactly Keith it's been a pleasure to
have you on the the show today and we
look forward to hearing back from you
soon there's pleasure Charles well thank
you thank you
well that was an amazing interview
Jeremy I'd like to say that Keith
Neumayer is probably one of the most
knowledgeable people I've had the
opportunity to speak with in the
marketplace as an analyst as a CEO as
somebody who has been in this silver and
gold and mining world for so long since
the 80s and certainly very knowledgeable
when it comes to talking about what's
happening I think that in the third
segment we're gonna spend some time also
talking about colored diamonds and an
article from Paul Craig Roberts our
friend to the show but it is interesting
that he pointed out a couple of very
distinct things that are happening right
now one he said silver is coming out of
the ground only at nine ounces to every
one ounce of gold so in and of itself
that's amazing secondly how can you not
pick up on the idea that silver is
everywhere in our lives then we've
talked about usages till we're blue in
the face over the years many many shows
on usages only but it never does it
quite enough justice because this
is a time and space in which he's saying
look around you everything you use in
touch and everything we're going to use
in touch technology wise going ahead
into the future is going to be impacted
by that price of silver it may only be a
small impact but it's still going to
happen and in essence there's nothing
that can change that because there's
nothing that can replace silver and what
it does and and I think with that there
was this hinting in some ways of if this
story of silver really gets out and it's
things really start to move in that
market and those might those mining
companies can't ramp up the production
of silver fast enough that you could
potentially be in a position where
silver does go no bit where people are
not willing to sell it at 50 60 80
dollars and these companies are working
as fast as they can but not fast enough
to actually start getting more silver
that's needed out of the ground to
satisfy the demand that's coming and I
think the other thing that he was also
starting to discuss and and hint at is
that when you look at the stock market
and where people are putting their money
he said he was suggesting that they're
putting their money into things that are
already high because it's the fashion of
the day but eventually trillions of
dollars is going to be sitting there
going well where do we put our money
next and that's where the mining sector
and the physical gold and silver market
that are undervalued right now start to
look pretty pretty good we're gonna post
that interview folks on the podcast
you'll be able to access it in addition
to today's show and tomorrow's show and
if you're listening on Sunday it will be
yesterday's show but again we'll post
that up on the podcast and put it onto
our website certainly we will make
certain that you have great access to
that interview as a standalone it will
be downloadable and you can put that
anywhere you like into any units and
listen to it at your convenience what a
great great interview that was Jeremy
I'm happy that we had him on there now
folks when it comes to silver and gold
understand nothing is more important
than taking action once you have the
knowledge if you understand that silver
right now is sitting at 80 to 1 against
the price of gold it means it take
80 ounces in order to equate to one
ounce of gold in value it is very
undervalued against historical norms
looking back at this bull market we've
been in since 2002 the average is in the
50s it's 55 to 1 so even if we went back
to 55 to 1 that's driving the price of
silver towards the $24 range what a
bargain to be able to own and stock some
silver get into an allocated financing
account here folks this is an
opportunity to use other people's money
you can put down as little as 45 percent
of the total metal value you want to
invest in own we can get that set up for
you very quickly it can be done online
you can submit by wire transfer and have
that account up and operating and visit
your allocated segregated serialized
bars we can do 100 ounce bars there in
that account can also open up a gold
count and do the same thing one ounce
all Royal Canadian Mint product and it
is tangible folks because that's the
best way you can own and hold silver and
gold Jeremy when we come back in the
third segment let's talk a little bit
about some diamonds let's talk a little
bit about putting it all together I want
to dwell a little further on that idea
of a strategic metal and what that might
mean going forward and certainly spend
some time helping people to open up
accounts what do you say that sounds
great and I think along the lines of
this of the strategic metal I think we
should look at that article we were
going to discuss about why central
bank's view gold as a strategic metal I
brought it with me brought it with me
we'll do that as well all here on the
real money show folks get into the
market now remember March Madness means
we are doing away with HST or the tax
from your province on all of our colored
diamonds right now we'll cover that for
you take a look at those online through
Guildhall wealth com we'll talk a little
more about that we have more updates on
the Argyle mines coming in the next
segment we're almost finished a new
article on the Argyle situation and the
closing date might shock you and might
help you to make that decision to get
this into your portfolio gold silver at
Guildhall welcome the newsletter all on
the website the numb
call one eight seven seven eight silver
I'll say again one eight seven seven
eight silver you are listening to the
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