Miners Need Silver At $18 To Really Go For It, Says First Majestic Silver CEO
(Kitco News) - Miners need to see higher silver prices before things really look up in the silver mining sector, said First Majestic Silver CEO Keith Neumeyer.
“I want to see silver really break through $17.50-$18.00,” Neumeyer told Kitco News on the sidelines of the BMO Global Metals and Mining Conference. “We're doing okay at current price levels, but we need to see a real breakout of gold at $1,400 and silver and $18. Then, it’s game on and into another five-year cycle.”
At current price levels, Neumeyer said that First Majestic Silver is doing okay, adding that 2018 was a difficult year.
“We're bringing costs down, we're trying to deal with the current metal prices. And I think we’re doing a good job,” he stated. “From a mining perspective it’s tough because you’re trying to do budgeting and build assets, but when silver prices drop in a very short period of time it really affects the business. We had to lay off about 1,100 workers in 2018.”
But, things are looking better for the silver market this year amid increased interest in the precious metals in general, according to Neumeyer.
“There's a bid coming into this market and I think it's the central banks coming in buying gold and it is obviously affecting silver in a good way,” he added. “Definitely the worst is behind us.”