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The world's largest publicly traded in ground silver producer reported mixed second quarter earnings this morning but.
Wait until you hear what a south American country might have had even more -- an impact on falling silver price is joining us now out of Fox Business exclusive from Vancouver.
Is the CEO and president of -- standard resources.
And it's John Smith good to have you here mr.
Smith and and we appreciate you coming on he came out with some numbers today I'm I'm interested in the that the details even though.
You know you missed on the bottom want that you did pretty well on the revenues your shares are moving higher because people like that you are going to match or at least reach your guidance.
Of what you would expect it would be about what eight point two to eight point five million ounces of silver -- by the end of the year.
That's right this eight point two -- -- firefighters over guidance for the year I'm we've come through the first and second quarter well on track to do that.
Op and the the interesting thing is the -- second quarter put us dent in Argentina where we operate.
Weather conditions are pretty bad we're -- in a better season coming through to the end of the years so we're we're well positioned for -- going forward.
Okay we can't just smooth over that say conditions -- about the -- -- that Argentina has imposed so I guess you could call it an export tax.
And that is becoming financially very straining for a company like yours or frankly any company trying to do business there.
How worried are you that this will meaningfully impact your number's going forward.
Bob this -- we've been and Argentina since before 2006 we -- a -- in country team and that means.
Doubt that it's really about managing that situation and to be truthful.
There's a certain bureaucracy that's that we know how to get things done that and our team have been excellent and getting imports in which is critical for us.
I'm walking through the courses are getting -- export arrangements done so yes it's been difficult regulations to be changing.
Quite a bit but possibly conceive that we used to it -- a team on the go and -- we have we're managing to deliver results like we have done today.
When you look at silver prices they are certainly off the highs that we saw back in 2011.
I believe it was about April of -- -- 48 dollars 48 dollars an ounce.
A news or well off that that got very -- but what when you look how.
You guys work on it.
One ounce mind costs you about thirteen dollars so then you get obviously to profit anywhere above that but that the prices fluctuating.
Tell me how you're managing that how do you hedge against extreme fluctuations in your margins.
Bob it's a very good point it from -- -- doors hedge as a company we don't want hedge because we think that investors want that exposure.
To this overpriced so fight hedge -- I'm basically giving my investors are actual company not a -- company so important I keep that.
On exports position to silver because fundamentally long term.
We believe silver prices will go higher and higher.
Come through the third quarter fourth quarter you're gonna see what needs to be done about the US economy to get -- working.
Or wouldn't -- it you don't all sorts of things ultimately to kick go -- You have got to do something with that monetary system that was -- well for silver and gold for the long rolls off.
Second quarter let me push on the price because -- about 28 dollars an ounce here for silver can you give me an outlook for the next six months.
Yeah -- I've I've never good at that had estimated the price of what I -- I tell you will be wrong but what did you know directionally it's it's very much biased towards the upside because you just have to look at the comparisons are comparisons out.
Our Fiat currencies.
That all subject to job.
To play with what the monetary policy so when you look at what it's likely to happen.
The bias is good for -- global what's -- we should.
Put -- to our viewers that that silver is different from gold because it's used -- where in industrial capacity but it also has that investment quality so which spreads overtook both sides of sort of bifurcated as an opportunity but.
Let me get to another substance that you might and that is zinc which has pharmaceutical implications that obviously aside from things like industry.
How's that going up.
-- But that's going well and you know they get David Silverstone pharmaceutical implications you know -- -- of class.
So what does an actual anti bacterial and anti microbial product -- -- getting more and more used -- medicines in quarters these days.
So you know -- the industrial element all of our product groups over the strong and I gives us a nice -- that says.
You know when the economy -- some things are Gordon well.
Industry kicks along and so we're disapprove to reduce and that so we Liotta nice double -- -- -- and as a commodity.
John Smith making the case for his company -- silver standard great to see you thank you very much for joining.