from SRS Rocco:
The first primary silver miner in the industry just announced that it suspended sales of silver during the 3rd quarter due to the low market price of silver. First Majestic suspended sales of 35% of its Q3 silver production. This was a significant amount as it was nearly 1 million oz of its 2.7 million oz production that quarter.
According to First Majestic’s recent new release:
Tue Oct 14, 2014:
Produces 3.5 Million Silver Eqv. Ounces in Q3; Postpones the Sale of 934K Silver Ounces of Inventory
First Majestic Silver Corp. (“First Majestic” or the “Company”) is pleased to announce that total production at its five operating silver mines in Mexico for the third quarter ending September 30, 2014 reached 3,523,536 equivalent ounces of silver, representing a 5% increase compared to the same quarter in 2013.
Total silver production for the quarter consisted of 2,680,439 ounces of silver, relatively unchanged compared to the same quarter in 2013. In addition, 9,703,792 pounds of lead and 3,222,877 pounds of zinc were produced, representing an increase of 14% and 44%, respectively, compared to the same quarter of the previous year. Also produced were 2,781 ounces of gold, representing a 5% decrease compared to the third quarter of 2013.
…..Silver prices declined 19% in the third quarter representing the second largest quarterly decline since the financial crisis in 2008. As a result of this weakness, the Company decided to temporarily suspend silver sales in an attempt to maximize future profits. This suspension of sales will result in lower revenues and earnings for the third quarter, however, it is likely that these inventories of unsold ounces will instead be sold in the fourth quarter. As of September 30, 2014, approximately 934,000 ounces of silver were held in inventory.
Here is a table showing First Majestic’s quarterly silver production:
First Majestic suspended the sales of 943,000 oz of silver in Q3 2014, which again was 35% of its 2,680,439 oz of production that quarter. They may elect to sell this silver in Q4, if the prices are more favorable.
While this is only a small part of the primary silver mining industry’s overall production, at least First Majestic is trying to set a precedence by standing up to the manipulated low price of silver. If other companies joined the band-wagon and held back sales of their silver production, this could send a clear message to the Bullion Banks… that FUTURE PHYSICAL SUPPLY shouldn’t be taken for granted.
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