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.
Speaker Change: Our discussion I'm, just going to pass the call over to Samir Patel our general.
Samir Patel: General Counsel, who will read our disclaimer.
Speaker Change: Before we begin today's call I would like to remind you that we will be referring to certain non <unk> measures and making some statements regarding question just sell down its operations.
Samir Patel: 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 well.
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: That was disseminated earlier this morning.
Samir Patel: The disclosure of 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 or information other than as required by law.
Pete: That I will turn the call back to Pete.
Speaker Change: Thanks, Sameer in addition to a severe and myself Keith Neumeyer CEO founder on the phone today, we have a ban.
Speaker Change: Danielle capacity who's our VP corporate development, Steve Holmes, our Chief operating Officer, We also have Delray and then Joel.
Speaker Change: Felt.
Speaker Change: Cause things cease or sorry, Joel online as well so.
Speaker Change: I'm, just getting into the quarter, yeah, nice to see the stock up today.
Speaker Change: For those you know.
Speaker Change: Oh, there we've been monitoring the shares you know obviously, we created they've got quite a liquidity event for <unk>.
Speaker Change: <unk> shareholders.
They went from a very illiquid stock.
Speaker Change: Stock too.
Speaker Change: 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 on.
Speaker Change: Unfortunately.
Speaker Change: And it's quite some undue pressure on the first one Jack Smith persons Joseph stock.
Speaker Change: And you know it.
Speaker Change: It's created are under performance over the last couple of weeks since closing.
Speaker Change: It does take time to get through that.
Speaker Change: I think that Oh, unusually tight today or news releases in the future.
Speaker Change: When we got our Q1 numbers all of which will be.
Speaker Change: Pretty fantastic, including Scaffolds transaction, Joe Q2 will be a focal full quarter.
Speaker Change: All mines producing.
Speaker Change: It'll be pretty interesting 2025.
Speaker Change: As the year evolves, but I'm just focusing on the news release and then in Q4 and in 2024.
Speaker Change: We had record cash flow in Q4.
Speaker Change: I can go through the new shoes and read it all out to you before but you know $68 million in.
Speaker Change: And our cash flow pretty significant.
Speaker Change: Amazing safety record all time, low reportable offense events.
Speaker Change: We met our 2020 for guidance.
Speaker Change: $21 7 million ounces of silver equivalent production.
Speaker Change: And all in sustaining costs in 2011.
Speaker Change: We had a record.
Speaker Change: <unk> laid out for the first time ever breaking through 10 million ounces of production, which is really nice to see you got closed in 2020 three but.
Speaker Change: 2020, the board actually go through 10 million ounces.
Speaker Change: Obviously, a pretty good situation.
Speaker Change: <unk> ended the year with a very very strong cash balance of $308 million.
Speaker Change: And then $364 million in liquidity.
Speaker Change: That does not include gatos by the wages for those so they're tier.
Speaker Change: If you're wondering about that.
Speaker Change: That number will be reduced obviously as a result of our jobs.
Speaker Change: One.
Speaker Change: But we're in a very very strong cash position, a very strong balance sheet, which is very nice to see.
Speaker Change: Cash costs were down by 8%.
Speaker Change: Yeah.
Speaker Change: <unk> Q1 versus Q4.
Speaker Change: Share buyback programs in place.
Speaker Change: The news release, we didn't show that when we bought back 50000 shares but that was all it says basically just in December.
Speaker Change: Share buyback programs continued through January and into February and we expect to continue.
Speaker Change: That program.
Speaker Change: Missouri.
Speaker Change: Share prices is pretty ridiculous.
Speaker Change: Oh.
Speaker Change: And anyway, So we'll continue to.
Speaker Change: Turning to that program.
Speaker Change: We have the Navidad now announcement in the San Demus announcements come out over the last few months.
Speaker Change: Our exploration programs at both of those operations now, but that being a central Ana.
Speaker Change: We don't know, but discoveries continuous and planning on which is always see a pretty nice situation and we.
Speaker Change: We looked at loss gaucho since almost all look alike asset you know.
Speaker Change: Well, Scott Who's being 103000 hectares in size.
Speaker Change: And time for him to be 102000 answers in size are these are two very large chunky land packages that are that have.
Exploration upside that is hard to measure its a.
Speaker Change: Both of these operations have mine lives currently have.
Close to 10 years and it's.
Speaker Change: A nice place to be to have three assets, including seven deals.
Speaker Change: A long mine lives.
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 down three 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 so many of them that we're looking to extend them.
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: A round.
Speaker Change: 29 million Thats the midpoint.
For 2025, silver equivalent and that's 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 got.
Speaker Change: Got close to our target in 2024, I think we had a.
Speaker Change: Plan of doing about 228000 meters in 2024, we've done about 180000, Cleveland, which was nice.
Speaker Change: We'll be updating our.
Speaker Change: R R.
Speaker Change: Hey, I asked in March, which will show the changes in resources, which I'm not going to see.
Speaker Change: 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.
Speaker Change: 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.
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 we're looking to.
Speaker Change: Taking advantage of some of the synergies to bring our costs down.
Speaker Change: Throughout the business that we're looking forward to working on that over the next couple of quarters.
Speaker Change: And claims to do exactly that so oh.
Speaker Change: The good news.
Speaker Change: Going forward on the campus acquisition.
Speaker Change: And.
Speaker Change: That's really it for me so.
Speaker Change: Why don't we go to questions.
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 youre using a speakerphone. Please pick up your handset before pressing the keys to withdraw your question. Please press Star then two.
Speaker Change: If you are participating 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 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.
Speaker Change: 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 the subs that got me thinking what kind of long term exchange radio even past 2025.
Speaker Change: 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 on all of that what are you seeing in regards to inflation in general.
Speaker Change: Well, thanks, Tycho and a 99 CRE from you and thanks for having.
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 we're in good shape there.
Speaker Change: As far as inflation factors, what we're saying 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.
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 Walmart for margin expectations for the first month.
Speaker Change: I assume the skills 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 will see maybe later this year and that's even if you thought that far ahead.
Speaker Change: Well regarding the main.
Speaker Change: <unk> is still being spent you know up until really September October of 2024, So we were still purchasing machines and I.
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: So that the Neal officially.
Speaker Change: Cut the ribbon and and and 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.
Speaker Change: Major profits out of them as such.
Speaker Change: Or it's 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 San Dimas. They go through a thought for refining which has a small cost there and then those of those thousand ounce commercial bars get armor.
Speaker Change: Card up to Las.
Speaker Change: Las Vegas event.
Speaker Change: Where do they get converted into a variety of different products and sold into the marketplace between three to $5.
Speaker Change: Cost above spot depending on the different.
Speaker Change: Some some products are produced with limited quantities like the Trump borrowers only.
Speaker Change: We are only produced a 2400 11.
Speaker Change: 76 borrowers only produced 1700, extending six of them. So those types of special runs we charge $5 over spot and they sell quite well.
Speaker Change: So.
Speaker Change: The lunar series the Snake just came out.
The Dragon came out a couple of months ago, a little bit late in the year.
Speaker Change: We worked on after quite some time, unfortunately, but finally came out.
Speaker Change: And.
Speaker Change: Theres No limited run on the Alamo, just keep making them as they sell.
Speaker Change: It's going 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: You know are we we got about.
Speaker Change: I mean think about 5% of our total overall production through the mint 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 and out.
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 in the 20th anniversary rounds 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.
Charles Ottoman: Your next question today comes from Charles Ottoman with Scotiabank. Please go ahead.
Charles Ottoman: Thanks for taking my question Hi money in Japan.
Charles Ottoman: Can you on the applicable base.
My first question would be on.
Charles Ottoman: Or should we wait production on Capex, which enterprise awesome second half of the year.
Charles Ottoman: You're expecting it to be flattish pitfall.
Charles Ottoman: The closing of the capital's acquisition of I know adaptable school impact.
Charles Ottoman: Production at <unk>.
Charles Ottoman: The LG, but beyond that should we expect like a flattish production for this year.
Charles Ottoman: I had a hard time understanding the question.
Charles Ottoman: Many of you want to jump on that one.
Speaker Change: We're looking here, Chris maybe just or surcharges repeating the question. If you don't mind, we didn't hear it clearly.
Speaker Change: Okay, very sure Mark and how do you expect production on Capex to shake out in the first half into the second half of the year would it be flat all spec.
Speaker Change: Victims.
Speaker Change: Second Apple firsthand.
Speaker Change: Yeah, so it'll be it'll be relatively quick.
Speaker Change: Consistent so H, one H one versus the issue.
Speaker Change: So as is coming in earlier enough in the year a gen. Six genes. So we don't have a lot of fun.
Speaker Change: A lot of delays integrating it so it's got to be relatively consistent.
Speaker Change: <unk> generally in Q4, 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 O Q.
Speaker Change: Yeah.
Speaker Change: Okay. Thank you I'm, just sticking with exploration yet could you explain could you provide some details around what type of from exploration work has been done at Joe's comment.
Speaker Change: Yes, so we have.
Speaker Change: 18, 18000 meter program.
Speaker Change: <unk>, it's really going to go back and target some of the some of the targets that we were hoping to get in 'twenty 'twenty four, 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 Justin let me kick it off right on time.
Speaker Change: It's got to be it's really greenfields exploration targeting areas that hasn't been explored before we have received the permits at the end of 2023, but really haven't.
Speaker Change: In areas of Hasnt been explored so that'd be the focus in 2025 is go back and.
Speaker Change: Test those targets.
Speaker Change: Perfect and just on free cash flow I mean, it's good to see the company generated record.
Speaker Change: Record free coffee in Q4, and I think just based on our estimates on what the current spot price of saying, we should expect this to constantly so how should we think about your capital allocation priorities moving forward 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 them that one.
Speaker Change: Yeah, we put our budget out already on our expected capital expenditures for 2025, and I don't expect that's going to change I think we our exploration program is already pretty aggressive development program is also pretty aggressive.
Speaker Change: I'd really like to see Treasury growth now any extra capital that were produced there that we're gonna be gaining throughout the year I want to see that go into the Treasury and you.
Speaker Change: If we we ended the year with $500 million in cash.
Speaker Change: And the Treasury I think thats, a pretty good place to be.
Speaker Change: I can see that happening.
Speaker Change: Okay. Thank you.
Speaker Change: Both of them.
Speaker Change: Okay. Thank you.
Speaker Change: Your next question today will come from Don Demarco with National Bank. Please go ahead.
Don Demarco: Thank you operator, and Keith congratulations to a strong quarter positive free cash flow.
Don Demarco: The acquisition price of silver is higher.
Don Demarco: Notably higher since you deal so.
The outlook for silver remains bullish you know when you look at there.
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.
Don Demarco: Well you guys are pretty close to the market and.
Speaker Change: And thanks for your assistance.
Don Demarco: Throughout the process as well and.
Don Demarco:
Don Demarco: Yeah. We you know we we know all the players and we just had our board meeting.
Don Demarco: Our quarterly board meetings.
Don Demarco: The last couple of days, we've got a list of companies that we follow and.
Don Demarco: 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.
Don Demarco: Different companies put out and.
Don Demarco: All of it all and put it all in excel worksheets, and we analyzed everything and.
Don Demarco: Re categorized everything in.
Don Demarco: Everything in but.
Don Demarco: But you know what we we just bought gatos right, it's our largest transaction ever in history the company there.
Don Demarco: They're basically $1 billion transaction.
Don Demarco: It's going to take a couple of quarters to get it fully integrated into the business.
Don Demarco: There's a lot of work to do there so I'd.
Don Demarco: I'd rather R. R. R T.
Don Demarco: So some of the integration team is as some of the same team that's doing that.
Don Demarco: 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'd.
Don Demarco: I'd, rather our team focused on integration right now than worrying about other M&A, but.
Don Demarco: You know there are names out there and that we've always got our eyes open but you know it.
Don Demarco: It takes two to tango Ah, we're not in any rush to do it out of the deal Tomorrow.
Don Demarco: Okay. Thanks for that Keith well, that's all for me and.
Speaker Change: Good luck for Q1.
Don Demarco: Thanks, a lot.
Speaker Change: Your next question today will come from Chris Ewing private Investor. Please go ahead.
Don Demarco: Congratulations on your good work here in your purse.
Speaker Change: So I was just wondering what silver price do you think that we will need to we get positive per share earnings.
Don Demarco: And a follow up question.
Don Demarco: Would you ever consider in the future maybe when we get in a good place with these different assets integrated in the 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: When 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 of 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 as the currency fluctuations.
Speaker Change:
Speaker Change: Under Ifr S. We have to carry this.
Speaker Change: Very very large tax liability.
Speaker Change: 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 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: 150 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, although those pesos move around and then that creates a loss to Oregon and are again.
Speaker Change: And it 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 on you know what we can do about this and there's really nothing we can do is just.
Speaker Change: It is just a fact of running a foreign business.
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, but money is newest all type of monies in pesos, while we've got Canadian dollar. So of course, we've got your ear in euros as of course, as well, but but nevertheless, it since the pace of that really drives this profit and loss number.
Manny: And I'm not sure Manny if you want to jump in and comment any further.
Manny: No that's pretty much it it's really the tax pool the tax losses pool.
Manny: That creates basically what's called a 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 flip side as the balance sheet gets revalued and it triggers a noncash <unk>.
Manny: Darren exchange loss and that ends up hitting the P&L.
Manny: Unfortunately in this case, but it's at a negative.
Manny: But to your earlier points, what silver price is needed for positive earnings I do think were.
Manny: Trend continues with gas is coming in and we will have no problem.
Manny: Showing continuous improvement quarter over quarter and.
Manny: To be able to account for a cure.
Manny: Q1 and Q2.
Manny: Thank you very much I 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.
Speaker Change: Thanks, Nik so so we have a couple of key.
And to wrap up and we'll get more questions from the from the line. If there are any but we might wrap with east so key.
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.
Speaker Change: 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: You know 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.
Speaker Change: They did slow down the permitting process and.
Speaker Change: And so on as frustrated as you know 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, you know 21 years ago backfill those are pretty friendly place to be as a Canadian company and.
Speaker Change: Hum.
Speaker Change: Build the business quite quickly just because of the regulatory environment in Mexico over that 15 year period until.
Speaker Change: That's newer government came in.
Speaker Change: So now you know 21 years, and we've got a new government.
Speaker Change: Shell bomb.
Speaker Change: Todd you 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 hard.
Speaker Change: Hard to really point out any major events.
Speaker Change: Positive events that are.
Speaker Change: Could be affecting the mining sector, but I can tell people who are listening today that there are permits that have been granted.
Speaker Change: Several mining companies have received permits over the last month.
For a variety of different.
Speaker Change: Projects and.
Speaker Change: 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: The environment looks like it's changed a lot. So we're crossing our fingers that.
Speaker Change: What we're hearing or what we're thinking is actually real and.
Speaker Change: This current Mexican.
Speaker Change: Government is open for business and open to foreign investment and.
Speaker Change: We did make a decision 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, if we if we werent.
Speaker Change: As positive as we are about what's what what the future is.
Speaker Change: For Mexico.
Speaker Change: We had done the gatos transaction.
Speaker Change: And he also.
Speaker Change: There is one more question here, we are getting a few but I'll just put them all together, but what is your general thoughts with gold hitting all time highs.
Speaker Change: Well both of them.
Speaker Change: Chuck.
Speaker Change: Yes.
Speaker Change: We can talk about the <unk>.
Speaker Change: Little bit of work on the silver price.
Speaker Change: It 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 saw some.
Speaker Change: No.
Speaker Change: You know throw some throw some.
Speaker Change: My way, but yeah, it's look I I'm, a big supply demand fundamentals and.
I think that supply demand for silver as it is at a point where.
Speaker Change: We're in multiple year deficits and Theres No reason why.
Speaker Change: Silver prices should not go higher.
Speaker Change: It's just a matter of time and you know there is obviously a lot of there's a huge paper derivative market that kind of drives the price which.
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 contracts in place but that.
Speaker Change: You seem to.
Speaker Change: B in the way of you know allow.
Speaker Change: Allowing silver to move to the prices should be at and.
Speaker Change: Not that I don't like $33 silver.
Speaker Change: Not a bad place to be 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, and it's holding ground quite nicely and Gold's continuing lease.
Speaker Change: <unk> seems to continue to want to drive higher so it's.
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.
Speaker Change: It's gonna be honest way to triple digits and.
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.
Nick: Okay that was the final question from the webcast back to you Nick.
Nick: 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: For those who are online thanks, a lot for joining us today.
Speaker Change: If there are any further questions or comments please contact.
Speaker Change: Many of our staff.
Speaker Change: Probably all know Manny or or Darryl Joel just three of them are always available to chat with so and we will see the PDA 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: