Q4 2024 First Majestic Silver Corp Earnings Call
Speaker Change: [music].
Thank you for standing by this is the conference operator welcome to the first Majestic Silver 2020 for production and results financial results and 2025 guidance Conference call. As a reminder, all participants are in a listen only mode and the conference is being recorded.
After the presentation, there will be an opportunity to ask questions to join the question queue. You May Press Star then one on your telephone keypad should you need assistance during the conference call you may reach an operator by pressing star and then zero.
If you are participating through the webcast you can submit a question in writing by using the form in the lower section of the webcast frame on your screen.
Speaker Change: I would now like to turn the conference over to Mr. Keith Neumeyer, President and Chief Executive Officer of first Majestic Silver Keith. Please go ahead.
Speaker Change: Well, thank you and welcome to everyone joining our call today to discuss the Q4 and year end.
Speaker Change: And as far as guidance as well, which he put out recently.
Speaker Change: Before I get into our.
Speaker Change: Our discussion I'll, just going to pass the call over to Samir Patel our general.
Samir Patel: General Counsel, who will read our disclaimer.
Samir Patel: Before we begin today's call I would like to remind you that we will be referring to some non.
Samir Patel: <unk> measures and making some statements regarding question just sell down its operations that constitute forward looking statements in accordance with Canadian and U S Securities laws.
Samir Patel: All statements that are not historical facts, such as statements regarding future estimates plans and expectations of future performance constitute forward looking statements that reflect the company's current views with respect to future events. These statements are necessarily based upon a number of assumptions and estimates that while instead.
Samir Patel: Is it reasonable by the company.
Samir Patel: The subject.
Samir Patel: Business economic competitive political and social uncertainties and contingencies.
Samir Patel: We encourage you to refer to the Colgate language included in our news release.
Samir Patel: Emanate annuity this morning.
Samir Patel: The disclosure on non <unk> measures and our most recently filed management's discussion and analysis as well as the risk factors.
Samir Patel: Most recently filed annual information form as a reminder, these documents along with all of our continuous disclosure documents.
Samir Patel: Under the company's profile on both SEDAR plus and on Edgar.
Samir Patel: Investors are cautioned against attributing undue certainty over reliance on any forward looking statements made during today's call and the company does not intend or assume any obligation to update these forward looking statements of automation.
Samir Patel: As required by law.
Pete: That I will turn the call back to Pete.
Keith Neumeyer: Thanks, Samir and I guess shouldn't too severe and myself Keith Neumeyer CEO founder on the phone today, we have right now.
The Alco strategy Who's our VP corporate development, Steve Holmes, our Chief operating officer.
Keith Neumeyer: Delray and then Joel.
Keith Neumeyer: Felt.
Joel: Good thing cease or sorry, Joel online as well so.
Joel: I'm, just getting into the quarter, yeah, nice to see the stock up today.
Joel: For those you know.
Joel: Oh, there we've been monitoring the shares you know obviously, we created they've got quite a liquidity event for <unk>.
Joel: <unk> shareholders.
Joel: They went from a very illiquid stock.
Joel: Stock too.
Joel: Obviously quite a liquid vehicle that trades tens of millions of shares a day and I think that's created a situation where you know some investors had decided to pare down their positions. Unfortunately.
And it's quite some undue pressure on the person's job.
Joel: The person's Joseph stock.
Joel: And it.
Joel: It's crazy or underperformance over the last couple of weeks since closing.
Joel: It does take time to get through that and I think that oh, unusually tight today or news releases in the future.
Joel: When we got our Q1 numbers all of which will be.
Joel: Pretty fantastic, including Los Gatos transaction until Q2 will be a focal full quarter.
Joel: All mines producing.
Joel: It'll be pretty interesting 2025.
Joel: As the year evolves, but I'm just focusing on the news release and then in Q4 and 2024.
Joel: We had record cash flow in Q4.
Joel: I'm not going to go through the Nishu some read it all out to 460.
Joel: $68 million in.
Speaker Change: In our <unk>.
Joel: Cash flow pretty significant.
Joel: Amazing safety record all time, low reportable offense events.
Joel: We met our 2020 for guidance.
Joel: $21 7 million ounces of silver equivalent production.
Joel: And all in sustaining costs of 21 11.
Joel: We had a record production for the first time ever breaking through 10 million ounces of production.
Joel: You can see you got close in 2020 three but.
Joel: 24, it actually go through 10 million ounces.
Joel: All of this is pretty good situation.
Joel: And it.
Joel: The year with a very very strong cash balance of $308 million.
Joel: And then $364 million in liquidity.
Joel: That does not include <unk> by the way just so if you're wondering.
That number will be released obviously as a result of our AR and Q1.
Joel: But we're in a very very strong cash position.
Joel: Our strong balance sheet, which is very nice to see.
Our cash costs were down by 8%.
Joel: Got it.
Joel: Compared to Q1 versus Q4.
Joel: Share buyback programs in place.
Joel: In the news release, we did show that we bought back 50000 shares but that was all it was basically just in December.
Joel: That share buyback programs continued through January and into February and we expect to continue.
Joel: That program.
Joel: Missouri.
Joel: These share prices is pretty ridiculous.
Joel:
Joel: Our opinion anyway, so we will continue to.
Joel: That program.
Joel: We have the Navidad now announcement in the San Demus analysis and come out over the last few months.
Joel: Our exploration programs at both of those operations now, but that being a central Ana.
Joel: Those who don't know but disc.
Joel: Discovery's continuous and planning which is obviously.
Joel: Nice situation and.
Joel: We look at loss gaucho since almost all look alike asset you know.
Speaker Change: Scott, who was saying 103000 hectares in size.
Speaker Change: And Pennsylvania, being 102000 and answers in size and these are two very large chunky land packages that are that have.
Speaker Change: Exploration upside that is hard to measure.
Speaker Change: Both of these operations have mine lives currently have thought.
Speaker Change: Close to 10 years.
Speaker Change: It's.
Speaker Change: A nice place to be to have three assets, including Sandy.
Speaker Change: A long mine lives and.
Speaker Change: We don't have to be concerned about all well where were minor. So we're always concerned about finding more ounces, but.
Speaker Change: Nice nice town III solid assets in our portfolio.
Speaker Change: The mint has done well.
Speaker Change: We had a great Q4, the main terms you can see new lease today.
Speaker Change: Over $9 million in revenue from the meant all of those are profitable ounces.
Speaker Change: Which is.
Speaker Change: Fun and meet.
Speaker Change: Part of our business and something that is growing.
Speaker Change: And some of them that we're looking to extend.
Speaker Change: So going forward.
Speaker Change: The our production increase.
Speaker Change: Uh huh.
Speaker Change: We put our guidance out so you can see in our guidance that we're guiding.
Speaker Change: Around.
Speaker Change: 29 million that's the midpoint.
Speaker Change: For 2025, silver equivalent and about 53% of that percentage of silver.
Speaker Change: About 30, some odd percent of gold.
Speaker Change: And the rest is in the form of lead and zinc.
Speaker Change: And.
Speaker Change: The costs are low.
Speaker Change: Looking to improve as well.
Speaker Change: We've got a very very large exploration program planned for 2025.
Speaker Change: We.
Speaker Change: Got close to our target in 2024.
Speaker Change: Our plan of doing about 228000 meters in 2024, we've got about 180000, Cleveland, which was nice.
Speaker Change: We'll be updating our.
Speaker Change: Hey, I F in March which will show the changes in resources.
Speaker Change: And look forward to seeing.
Speaker Change: But in 2025, we're actually planning to drill about 207000 meters of drilling that's a pretty darn big program.
Speaker Change: And then of course, a big focus.
Speaker Change: For the next several months is integrating Gatto shall we went from.
Speaker Change: 40.
100 employees to 5300 employees.
Speaker Change: There are a lot of similarities in what we do but there's also some differences and.
Speaker Change: These these synergies are these.
Speaker Change: The whole merger you know it does take time no different technologies have to merge together.
Speaker Change: It does take time and so this cost effectiveness.
Speaker Change: That'll occur as well in a variety of different departments and so.
Speaker Change: So you know we're looking to take.
Speaker Change: Taking advantage of some of the synergies to bring our cost down.
Speaker Change: Throughout the business and we're looking forward to working on that over the next couple of quarters and plans in place to do exactly that.
Speaker Change: So.
Speaker Change: Look forward to good news.
Speaker Change: Going forward on the campus acquisition.
Speaker Change:
Speaker Change: That's really it for me so.
Speaker Change: Why don't we go to questions.
Speaker Change: Thanks.
Speaker Change: Thank you Keith we will now proceed to the question and answer session. Once again to join the question queue. You May Press Star and then one on your telephone keypad, you will hear a tone acknowledging your request. If you are using a speakerphone. Please pick up your handset before pressing the keys to withdraw your question. Please press Star and then two if you will.
Speaker Change: Dissipating today through the webcast you can submit a question in writing by using the form in the lower section of the webcast frame on your screen.
Speaker Change: And your first question today will come from Heiko with.
Speaker Change: With H C. Wainwright. Please go ahead.
Heiko: Hey, there thanks for taking my questions and nice to see the stock a little bit green today, so good to see.
Heiko: Looking back at the cost guidance that was published last week, you've got a property plant and equipment sustaining capital at 51 million Bucks. The pesos, obviously, a 20 point for US. This morning. When I wrote this up that got me thinking what kind of long term exchange radio even past 2025.
Heiko: And inflation soccer is built into all of this and more generally what are you seeing with pricing for equipment down in Mexico, and maybe building in all of that what are you seeing in regards to inflation in general.
Speaker Change: Well, thanks, Tycho and a 99 CPR from you and thanks for.
Speaker Change: Having the question for some I'm going to pass that question on to see.
Okay. Thanks, Keith So so right now our guidance for next year, we're using a 19 and a half to one ratio on the peso so.
Speaker Change: We're in good shape there.
Speaker Change: As far as inflation factors what were seeing is about a four to four 5% general inflation rate.
Speaker Change: We worked pretty hard on our programs to offset that inflation rate and the impact of the peso from last year.
Speaker Change: So we.
Speaker Change: We don't we don't anticipate seeing any unusual inflation that might come from Saint.
Speaker Change: It's a government policy applications.
Speaker Change: North of the border and those types of things, but that's that's the basis for our guidance.
Speaker Change: Fair enough.
Speaker Change: And then a completely different question can you provide some color on your longer term margin expectations for the first month.
Speaker Change: I assumed it scales reasonably well because at some point all the equipment is there and you're putting in silver at X and selling in it you know whatever 1.5 types of effects, but I mean can you maybe just provide some color on what you think you'll see maybe later this year and that's even if you have thought before it.
Speaker Change: Well regarding the name <unk>.
Speaker Change: Capital is still being spent you know up until really September October of 2024, So we were still purchasing machines and.
Speaker Change: I wouldn't say it was really up and running until really September October.
Speaker Change: Our inaugural celebration where everyone.
Speaker Change: Showed up and Youll officially.
Speaker Change: Cut the ribbon and <unk> and so on in September. So it has been operating since March and we've just we've been hiring people, putting the right people in place and you know it is going to say, it's a young business. There on the business is actually can only reach its one year anniversary next month.
Speaker Change: It's hard to expect to see you know me.
Speaker Change: Major profits out of as such.
Speaker Change: Or you know in such a new business, but it is doing quite well.
Speaker Change: Where are our ounces are generally being sold for about $3. All those thoughts. So you know we do have a cost of those ounces. When you have to get them up that's our ounces coming from.
Speaker Change: Same game as they go through a thought for refining which has a small cost there and then those of those thousand ounce commercial bars get armored card up too.
Speaker Change: Las Vegas event.
Speaker Change: Where they get converted into a variety of different products and fold into the marketplace between a three to $5.
Speaker Change: Cost above spot depending on the different.
Some some products are produced.
Emitted quantities like the Trump borrowers only I think we're only produced two.
Speaker Change: 411 seven.
Speaker Change: 17, 76 borrowers only produced 1700, extending six of them. So those types of special runs we charge $5 I'll respond and they sell quite well.
Speaker Change: So.
Speaker Change: The lunar series the Snake just came out.
Speaker Change: The Dragon came out a couple of months ago, a little bit late in the year.
Speaker Change: Sure.
Speaker Change: We worked on after quite some time, unfortunately, but finally came out.
Speaker Change: And.
Speaker Change: Theres No limited run on that one well just keep making them as they sell.
Speaker Change: It's selling quite well the Buffalo has come along quite nicely as well and there's a couple of other products. So we have three additional products that will be.
Speaker Change: Released in 2025.
Speaker Change: We got about.
Speaker Change: I mean think about 5% of our total overall production through the meant in 2024.
Speaker Change: Im showing with those types of margins.
Speaker Change: Our goal in 2025 is to get 10% of our total production through them in turn.
Speaker Change: And we hope to continually grow that year over year after year.
Speaker Change: Fair enough Yeah, I was on the I was on the website earlier today and they do a great job displaying the freedom bar on the 20th anniversary roads being almost sold out so that's pretty cool otherwise I'll get back in queue. Thanks for taking my questions.
Speaker Change: Alright, thanks, guys.
Speaker Change: Your next question today comes from Charles Ottoman with Scotiabank. Please go ahead.
Speaker Change: Thanks for taking my question Hi money in Japan.
Speaker Change: Can you on behalf of our base.
Speaker Change: My first question would be on.
Speaker Change: Or should we wait production and capex between the price of awesome second half of the year.
Speaker Change: You're expecting it to be flattish state for.
Speaker Change: The closing of the <unk> acquisition, I know adaptable school impact.
Speaker Change: Production at <unk>.
Speaker Change: The LG, but beyond that should we expect like a flattish.
Speaker Change: So for this year.
Speaker Change: I had a hard time understanding the question.
Speaker Change: Manny do you want to jump on that one.
Speaker Change: We're looking here, Chris maybe just a surcharge to repeat the question. If you don't mind, we didn't hear it clearly.
Speaker Change: Okay sure Mark and how do we expect.
Speaker Change: Upstream capex to shake out in the first half in the second half of the year would it be flat or are.
Speaker Change: We're expecting.
Speaker Change: Second Apple firsthand.
Speaker Change: Yeah, so it'll be it'll be relatively.
Speaker Change: Consistent so Asia Asia versus issue.
Speaker Change: So as coming in earlier enough in the year <unk>. So we don't have a lot of.
Speaker Change: A lot of delays integrating it so it's got to be relatively consistent.
Speaker Change: <unk> generally in Q4, you our exploration programs.
Speaker Change: So you'll probably see a bit of a drop off.
Speaker Change: In Q4 from from exploration program, but for the most part it's relatively consistent Q over Q.
Speaker Change: Yeah.
Speaker Change: Okay. Thank you and just sticking with exploration yet could you explain could you provide some details around what type of from exploration work has been done at Jared Canyon.
Speaker Change: Yes, so we have.
Speaker Change: 18, 18000 meter program.
Speaker Change: Jared, it's really going to go back and target some of the some of the targets that we were hoping to get in 2024, but we werent able to just due to delays in permitting.
Speaker Change: The performance of the contractor. So we're getting ahead of us getting set up just inside chip, let me kick it off right on time.
Speaker Change: It's got to be it's really greenfields exploration targeting areas that hasnt been explored before we have received the permits at the end of 2023, but really haven't.
Speaker Change: An area that hasn't been explored.
Speaker Change: The focus in 2025 is go back and.
Speaker Change: Test those targets.
Okay, and then just on free cash flow I mean, it's good to see the company generated record free cash during Q4, and I think just based on our estimates on what the current spot price of saying we should expect this to continue.
Speaker Change: How should we think about your capital allocation priorities moving probably business here.
Speaker Change: I'll defer to Keith on the capital allocation I know theres a lot of discussions internally, but we just started our.
Focus is also strengthening the balance sheet, but I'll turn it to keep on that one.
Keith Neumeyer: Yeah, we put our budget out already on R&R.
Keith Neumeyer: Capital expenditures for 2025, and I don't expect that's going to change I think we are exploration program was already pretty aggressive development program is also pretty aggressive.
Keith Neumeyer: I'd really like to see treasury growth.
Keith Neumeyer: And any extra capital that were produced that we're gonna be gaining throughout the year.
Keith Neumeyer: See all go into the Treasury and you.
Keith Neumeyer: If we end the year with $500 million in cash.
Keith Neumeyer: And the Treasury I think thats, a pretty good place to be.
Keith Neumeyer: I can see that happening.
Keith Neumeyer: Perfect. Thank you.
Keith Neumeyer: That's all for me.
Keith Neumeyer: Okay. Thank you.
Speaker Change: Your next question today will come from Don Demarco with National Bank. Please go ahead.
Speaker Change: Thank you operator, and Keith congratulations to a strong quarter positive free cash flow and that GATX acquisition price of silver is higher.
Speaker Change: Notably higher since the deal so.
Speaker Change: The outlook for silver remains bullish you know when you look at there.
Speaker Change: The remaining single asset silver names out there.
Speaker Change: What what are you what are your strategies at this point with regard to M&A.
Speaker Change: Well you guys are pretty close to the market and.
Speaker Change: And thanks for your assistance.
Speaker Change: Throughout the process as well and.
Speaker Change:
Speaker Change: Yeah. We you know we we know all the players and we just had our board meeting.
Speaker Change: Our quarterly Board meeting, we just over the last couple of days, we've got a list of companies that we follow and.
Speaker Change: Our digital our due diligence team is made up of a handful of people that you know just follow this space and we gobble up all the news that.
Speaker Change: Different companies put out and.
Speaker Change: We can absorb it all and put it all in.
Speaker Change: I'll work seats, and we analyzed everything and.
Speaker Change: Re categorized everything in.
Speaker Change: Everything in.
Speaker Change: But you know like we just bought gatos right, it's our largest transaction ever in history the company good.
Speaker Change: They're basically a $1 billion transaction.
Speaker Change: It's going to take couple of quarters to get it fully integrated into the business.
Speaker Change: There's a lot of work to do there so.
Speaker Change: I'd, rather our our team to some of the integration team is as some of the same team that's doing that.
Speaker Change: We're planning some of the M&A team pardon me some of the same team that's doing the integration. So you know I.
Speaker Change: I'd, rather our team focused on integration right now than worrying about other M&A, but.
Speaker Change: Yeah, there are names out there and that we've always got our eyes open but.
Speaker Change: You know it takes two to tango Ah, we're not in any rush to do it out of the deal Tomorrow.
Speaker Change: Okay. Thanks for that Keith well, that's all for me and.
Speaker Change: Good luck with Q1.
Speaker Change: Thanks, a lot.
Speaker Change: Your next question today will come from Chris Ewing private Investor. Please go ahead.
Speaker Change: Congratulations on your good work here and your.
Speaker Change: Purchase of gasoline. So I was just wondering what silver price do you think that we will need to we get positive per share earnings.
Speaker Change: Follow up question.
Speaker Change: Would you ever consider in the future maybe when we get in a good place with these different assets integrated into first majestic, maybe looking at dividends for shareholders in the future. Thank you.
Speaker Change: While the company already pays a dividend.
Speaker Change: You should know that we do that it was announced.
Speaker Change: In.
Speaker Change: Today's news release that the board approved the dividend payment.
Speaker Change: That dividend has been paid I think for over two years I actually forgot.
Speaker Change: We actually started it.
Speaker Change: You know what you know when it comes to earnings.
Speaker Change: There's so much noise about earnings like we we we put out an EBITA.
Speaker Change: We put out our cash flow, we put out our mine operating earnings.
Speaker Change: All those numbers are positive.
Speaker Change: When it comes to bottom line earnings when you actually see on the bottom line a negative number. Unfortunately, there's just so much stuff that goes into that and the biggest issue for us is the currency fluctuations.
Speaker Change: We have.
Speaker Change: Under Ifr S. We have to carry this.
Speaker Change: The very very large tax liability.
Speaker Change: And it's in it's in Mexican pesos.
Speaker Change: And in every single quarter, the Mexican peso moves around and it can change the bottom line.
Speaker Change: Earnings number by citizens significant amounts.
Speaker Change: And it is a little bit crazy, it's hard for investors to understand that and they look at it as a loss.
Speaker Change: But it's a movement in the value of the assets that are on our balance sheet. So we have you know.
Speaker Change: Something in the order.
Speaker Change: Hundred and 50 million U S dollars worth of peso sitting on our books and those pesos or used to run the business.
Speaker Change: And because we report in U S dollars.
Speaker Change: All of those pesos move around and then that creates a loss or gain or again.
Speaker Change: And then can be quite different from one quarter to another.
Speaker Change: And it does create a ton of confusion in the audit Committee has this discussion with our auditors Deloitte you know on a regular basis.
Speaker Change: What we can do about this and there's really nothing we can do is just it.
Speaker Change: It is just a fact of running a foreign business.
Speaker Change: In Mexico.
Speaker Change: Which was a volatile currency and reporting in U S dollars and it's just.
Speaker Change: A lot of our money Hopper money is used almost half of our money is in pesos. While we've got Canadian dollar. So of course, we've got you in euros as of course, as well, but but nevertheless, it since the pace of that really drives this profit and loss number.
Manny: I am not sure Manny if you want to jump in and.
Speaker Change: Comment any further.
Manny: No that's pretty much it it's really the tax for the tax losses pool.
Manny: Creates basically what's called the deferred income tax on our balance sheet and that gets revalued every quarter. So when the peso weakens, it's great for us because it reduces our cost so youll start seeing our cash costs, all in sustaining and all that coming down but the flipside is the balance sheet gets revalued and it triggers a noncash <unk>.
Manny: Foreign exchange loss.
Manny: Hitting the P&L.
Manny: Unfortunately in this case, but it has had a negative.
Manny: But to your earlier points, what what silver price is needed for positive earnings I do think we are.
Manny: This trend continues with gas is coming in and we will have no problem.
Manny: Showing continuous improvement quarter over quarter and be.
Manny: Be able to look out for.
Manny: Q1 and Q2.
Manny: Thank you very much appreciate your time.
Manny: Again, if you have a question. Please press star and then one.
Manny: I will now pass the floor over to Mr. Darrell Rae Investor Relations at first Majestic silver to take us through the questions that have been submitted today through the webcast.
Darrell Rae: Thanks, Nik so so we have a couple of key.
Darrell Rae: And to wrap up and we'll get more questions from the from the line. If there are any but might wrap with east so key.
Speaker Change: What are your insights on how the current political landscape in Mexico might influence first majestic silver has operations and market position.
Speaker Change: Yeah, I think going back a couple of years I think we were.
Pretty negative on what was going on in Mexico. As you know the previous government was just.
Speaker Change: Really not helpful.
Speaker Change: You know a lot of headline news a lot a lot of rhetoric that was hitting the newspapers and.
Speaker Change: No very much is anti <unk>.
Speaker Change: Foreign investment.
Speaker Change: No not so much not mining per se.
Speaker Change: Mind, you when he was talking about.
Speaker Change: Increasing taxes for miners in reality, they did slow down the permitting process and.
Speaker Change: And so on is frustrated many mining companies.
Speaker Change: But it was just basically a very kind of totalitarian kind of antique business type environment in Mexico for the last five years, which is quite unusual because when we put the.
Company together 21 years ago backfill those are pretty friendly place to be as a Canadian company and.
Speaker Change:
Speaker Change: We were able to build the business quite quickly just because of the regulatory environment in Mexico over that 15 year period and until.
Speaker Change: Thats newer government came in.
Speaker Change: So now 21 years, and we've got a new government.
Speaker Change: Siobhan.
Speaker Change: And shall bombs she seems to be.
Speaker Change: Pretty open.
Speaker Change: Much more pragmatic.
Speaker Change: Much more business oriented.
Speaker Change: Saying a lot of the right things.
Speaker Change: She was only it's only been a couple of months so it's.
Speaker Change: Hard to really point out any major events.
Speaker Change: Positive events that could.
Speaker Change: It could be a factor in the mining sector, but I can tell people who are listening today that there are permits have been granted.
Speaker Change: Several mining companies have received permits over the last month.
For a variety of different.
Speaker Change: Projects and we're in line for a couple of permits as well, which we're being told broke Oregon and you're getting as well so.
Speaker Change: And it looks like it's changed a lot. So we're crossing our fingers that.
Speaker Change: What we're hearing and what we're thinking is actually real and.
Speaker Change: And this current Mexican.
Speaker Change: Government is open for business and open to foreign investment and.
Speaker Change: We did make a decision in the bike goggles for a reason or we've got four producing mines in Mexico and then we've got 5300 employees in the country.
Speaker Change: We've got a big stake in the country and obviously.
Speaker Change: We werent.
Speaker Change: As positive as we are about what's what what the future is.
Speaker Change: For Mexico, I don't think we have done they've got those transaction.
Speaker Change: And he also.
Speaker Change: There is more question, we're getting a few but I'll.
Speaker Change: Put them all together, but what is your general thoughts with gold hitting all time highs.
Speaker Change: We'll catch up.
Speaker Change: Yeah.
Speaker Change: We can talk about this forever Keith by tab.
Speaker Change: Little bit of outlook on the silver price.
Speaker Change: Might happen in the medium term.
Speaker Change: Yeah, well you know I get criticized cost me for my Triple digit silver call. So.
Speaker Change: She's even recently I just thought somehow.
Speaker Change: You know throw some throw some.
Speaker Change: Mud my way, but yeah.
Speaker Change: It's look I I'm, a big supply demand fundamentals and.
Speaker Change: Well I think that supply demand for silver as it is at a point, where we're in multiple year deficit.
Speaker Change: Theres No reason why a.
Speaker Change: Silver prices should not go higher.
Speaker Change: It's just a matter of time.
Speaker Change: There is obviously a lot of there's a huge paper derivative market that kind of drives the price, which you know.
Speaker Change: Drives me Crazy and drives a lot of other silver both crazy as well.
Speaker Change: These are the biggest banks in the world who have huge paper.
Speaker Change: Contracts in place.
Speaker Change: That.
Speaker Change: Seem to.
Speaker Change: B in the way of you know.
Speaker Change: Allowing silver to move to the prices should be at and.
Speaker Change: Not that I don't like $33 silver.
Not a bad place to be you know if you look at our lifetime silver has only been over $30 three times in my life.
Speaker Change: And it's been over 30 for a good a good part of 2024.
Speaker Change: It's holding ground quite nicely and gold's continuing lease.
Speaker Change: It seems to continue to want to drive higher so.
Speaker Change: It's just you know silver will breakout and when it does its going to rattle. These banks I'm sure who have these huge paper contracts, but you know that's just the way the market works and.
Speaker Change: Once once we get through this you know 35 38 range.
Speaker Change: Which I think are the two biggest resistant levels.
Speaker Change: You know there was a flight to 40 and $3 50 pretty quickly and I.
Speaker Change: I think it's.
Speaker Change: It's going to be honestly, the triple digits.
Speaker Change: Is it going to happen in 2025, well I don't have a crystal ball, but.
Speaker Change: It's something we're going to we're going to see and I don't think it's that far away.
Speaker Change: Okay.
Speaker Change: Final question from the webcast back to you Nick.
Speaker Change: Thank you.
Speaker Change: Showing no further audio questions. This will conclude our question and answer session I would like to turn the conference back over to Keith for any closing remarks.
Speaker Change: Well. Thank you everyone for joining us today and obviously this has been recorded and will be available on the website if anyone wants to listen to it later in their in their free time.
Speaker Change: But for those who are online. Thanks, a lot for joining us today. If there are any further questions or comments please contact.
Speaker Change: Many of our staff.
Speaker Change: Probably all know Manny or or Dell or Joel just three of them are always available to chat with so and.
Speaker Change: And we will see other PVA fee for those of you calling from Toronto.
Speaker Change: Have a great day.
Speaker Change: This will conclude today's conference call you may now disconnect. Your lines. Thank you for participating and have a pleasant day.
Speaker Change: [music].
Speaker Change: Yeah.