The optimistic response from First Majestic’s CEO to Silver Doctors is good news for concerned silverbugs all over the world. Mining company press releases are beginning to trickle in, and so far, the mines have escaped the earthquake relatively undamaged…
Here is a round-up of the news that has come in from the status of the Mexican Silver mines.
The road to recovery in Mexico will be long and drawn out over many, many years, and this is a human tragedy in ways that cannot be quantified.
Economically, we can look at the impact it may have on the silver supply, and we are starting to get glimpses of what that impact may be. So far, the news can be described as “hopeful”.
Many of the major silver producing mines in Mexico are Canadian based companies. The coordination between Canada and Mexico is critical, and according to the Mexican Business Association of Canada, initial considerations are that the economic impact is going to be very significant for Mexico, but first and foremost, it’s clear that it’s all about healing:
Business between British Columbia and Mexico probably won’t suffer economically after the powerful earthquake in the central part of that country.
That’s according to the president of the Mexican Business Association of Canada in Vancouver, who says he’s more worried about the impact the powerful earthquake is having on people, than companies.
Manuel Otero says most of the big business that BC has with Mexico is in mining, with multi-billion dollar companies such as Goldcorp, First Majestic, and Silver Mex.
“Mexico is going to suffer, the city, economically, hugely,” he says. “Many people probably lost their homes and apartment buildings et cetera, that’s going to be the major catastrophe.”
Keith Neumeyer, CEO of First Majestic Silver Corp, advocate for the cause of sound money in general, and silver in specific, took time out of his busy schedule today to offer a response to our concern for the status of the silver mines.
Here his his optimistic reply that he gave us permission to share:
It is rewarding to see that companies are responsible in taking their time with the inspections to make sure it’s done right.
It’s almost fitting with what we have been through on the paper price smashings in the US, that when it comes to the real deal, yes – there is caution.
Caution is discipline and risk mitigation, some of the qualities we respect most in both the people and the precious metals.
Initial reports are starting to trickle in from other silver mining companies, and the optimism offers a ray of hope where it is desperately needed right now:
Mexican silver miner Fresnillo has released a statement today, September 21st,2017, regarding the Mexican Earthquake:
Fresnillo plc (“Fresnillo” or “the Company”) is deeply saddened by the terrible earthquake that struck Mexico on 19th September 2017. The Company’s thoughts and sympathies are with all of those affected by this tragedy.
Fresnillo’s absolute priority is the safety of its staff. Following the earthquake the building of the Company’s corporate headquarters in Mexico City was assessed by specialists who confirmed there had been no structural damage and the building was therefore declared fully safe to occupy. All administrative functions were resumed after the assessment.
Fresnillo also confirms that all its operations, both mine sites and associated infrastructure, are unaffected by the earthquake and continue as normal. There is therefore no impact on production.
Coeur Mining has yet to release a statement on the status its Mexican silver mine.
Endeavour Silver has yet to release a statement on the status of its Mexican silver mines.
So we shall wait and see.
The companies covered in this article are just a sampling of the many important silver mining companies in Mexico, and their assessments and inspections are underway.
In time, we will understand what has happened on a fundamental level. Fundamentals matter…