‘It was a very competitive process’ - First Majestic Silver’s Keith Neumeyer on $970 million Gatos Silver acquisition

Gold hitting $3,000 ounce in 2025 would not surprise Keith Neumeyer, president and CEO of First Majestic Silver.On Monday Neumeyer spoke to Kitco at the Vancouver studio. Last week First Majestic Silver Corp. (NYSE:AG) announced that it entered into a definitive merger agreement with Gatos Silver whereby First Majestic will acquire all of the issued and outstanding common shares of Gatos.Gatos is a silver-dominant producer with a 70% interest in the Los Gatos Joint Venture, which owns the producing Cerro Los Gatos underground silver mine in Chihuahua, Mexico.“We're very happy to get a deal done with Gatos,” said Neumeyer. “It was a very competitive process. It took a lot of hard work on our end.”The combined annual production of the new entity will be 30-32 million ounces of silver-equivalent, including 15-16 million ounces of silver at all-in sustaining costs of $18.00-$20.00 per silver-equivalent ounce. Regarding gold hitting several all-time highs in 2024, Neumeyer said central banks have been propelling the metal. “There's this bid under the gold market,” said Neumeyer. “It hasn't shown up really that much in silver yet. And that's one of the conundrums.”Neumeyer said gold looks good. “It doesn't appear buyers are lightening up. I wouldn't be surprised to see $3,000 gold in 2025.”Disclaimer: The views expressed in this podcast are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this podcast do not accept culpability for losses and/ or damages arising from the use of this publication.