Rick Rule interviews Keith Neumeyer — president and CEO of First Majestic Silver Corp. and chairman of First Mining Gold Corp. — about First Majestic’s method of success in Mexico. Every mine the company has had in its portfolio has at one time been the company’s largest mine. Throughout its 17-year history, the company has stayed the course with an overriding focus on silver in Mexico, over more risky areas of the world. The company relies on local talent in Mexico, rather than expats, to handle the day-to-day heavy lifting, a rule integral to its long-term success.
The company’s most recent acquisitions are the San Dimas Silver/Gold Mine, acquired in May 2018, and the Santa Elena Silver/Gold Mine, acquired in 2015. The San Dimas Mine has been in production for 300 years and will remain so for the next 100 years, says Neumeyer. Upon acquisition, First Majestic automated and upgraded the mine, and has already decreased costs from $165 per ton to $110 per ton. The company is producing nearly three times as much silver compared to four years ago as a result of the acquisitions, what Neumeyer deems as the engines behind the company.
First Majestic has also made a major discovery of over 50 million ounces silver at the Ermitaño Silver/Gold Project, located only 4 kilometers from the Santa Elena mine. The company hopes to start feeding its Santa Elena mill with the discovery’s high grade ore by late 2020.
Listen below to Keith Neumeyer — president and CEO of First Majestic Silver Corp. — detail the reasons why the company has become the “go-to silver story.”
Interview Date: May 24, 2019