First Majestic Silver Corp (NYSE:AG) 34th Annual Gold Forum Americas 2022 Conference September 19, 2022 12:40 PM ET
Company Participants
Keith Neumeyer - CEO
Keith Neumeyer
Welcome. Good morning. Thanks for coming to my presentation. So we can't get into my presentation without talking about Silver first. Silver production peaked out at about 880 million ounces of production worldwide in 2016. As you can see on this graph, it did drop since then and it's recovered a little bit since COVID, and got down about 760 million ounces worldwide. 2021 were about 830 this year, it'll be interesting to see what production is. But we're still not seeing the production that we saw back in 2016, is likely not going to get back up to those levels based on what we're seeing.
Consumption is pretty amazing actually some numbers are suggesting the consumption 2022 is going to be as high as 1.4 billion ounces. On this slide, we're showing 1.1 billion, that's our consumption last year approximately. One of the most interesting that's this, so the deficit continues and has been there for several decades with only 2009 in recent time being a surplus. The most interesting number on this slide, as far as I'm concerned, is the mining ratio. I know a lot of people don't really pay a lot of attention to the mining ratio, but I do.
When [Technical Difficulty] is trading somewhere rational markets and the industry is mining 7 to 1, it's a pretty shocking stat. And just goes to show you how undervalued Silver is and we can talk for quite some time on that topic. But obviously, we don't have time for that today. One of the major drivers so there's a couple this one, and the next one coming up in the next slide. The automotive industry, it's on a car like
- Read more current AG analysis and news
- View all earnings call transcripts