Saturday, March 1, 2014

Permashave Dave asks a pertinent question of Keith Neumeyer: "what is this I don't even"

PS Dave - what is this I don't even. Wherein PS Dave asks: remind us again, is First Majestic a silver mining company?

Why does First Majestic own March 2014 silver calls?

I mean, it's all fun playing options, pretending you know what a commodity's price is going to do months into the future; we all love playing at the casino.

But... um... that there money is the shareholders' property, guys. Does management have any sort of fiduciary responsibility? I mean, does the typical CEO take all his corporation's money, put it in a big pile, and then just set it on fire?

Not only that, why the fuck does First Majestic own shares in Sprott's PSLV?

Did they happen to buy PSLV at a massive premium, where it normally trades? Have they thought about instead following the traditional strategy of mining silver at (hopefully) a discount to its market price, and then selling it for a profit? Is that too faggy for Keith Neumeyer? He'd rather go buy silver at a premium to spot?

Couldn't he have perhaps drawn the line at buying SLV, and buying it at its spot price?

And what's he going to do with the silver that he's bought from Sprott, anyway? Isn't silver supposed to go out the door at a silver mine? Is First Majestic now a mutual fund?

And are they concerned about Sprott himself having gotten demoted to cheerleader?

You've got to wonder what the fuck management thinks they're doing. The directors obviously think they're fucking geniuses, since as PS Dave notes they've given themselves a $300K raise for successfully directing the burning of $55M in cash.

As for the FM shareholder?

Here is what the shareholder looks like, in the eyes of First Majestic management:

Remember that when you visit FM's booth at PDAC tomorrow.


  1. If they follow Sprott they probably are fuckwit hard money doomers. Maybe they invested the 55 mil in a survival compound in Chile across from Berwick's place. Pass the organic sauvignon blanc, fellow freedom lover.

    1. Entirely plausible.

      Or maybe they're just buying silver coins at 25% above spot.

    2. Well doomers have been known to pay too much for hard money because.. dooooom!

    3. Of course! Why do a bit of googling to find a place that sells silver for 50 cents over spot? Why not pay $5 over spot? I mean, it won't make any difference when America collapses under the inept management of the Kenyan Communist Negro and silver skyrockets to $200!

    4. You get bonus points btw for recognizing that dooooom has five "o"s.

      Because freedom.

  2. Replies
    1. Oh great, this week is another 8 martini newsletter.

    2. At least this one features a stock with a potential 450% upside target. None of that namby pamby 30% near-term win stupidity.

    3. Oh God are you still banging the table about Minera IRL?

  3. I think that Pomy Rushton wanker is down in Peru talking Otto's ear off on some phosphate deal in the desert