{"id":30350,"date":"2018-01-30T11:56:17","date_gmt":"2018-01-30T16:56:17","guid":{"rendered":"http:\/\/olduvai.ca\/?p=30350"},"modified":"2018-01-30T11:56:17","modified_gmt":"2018-01-30T16:56:17","slug":"worlds-largest-silver-mines-suffer-falling-ore-grades-rising-costs","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=30350","title":{"rendered":"WORLD\u2019S LARGEST SILVER MINES: Suffer Falling Ore Grades &#038; Rising Costs"},"content":{"rendered":"<header class=\"entry-header clearfix\">\n<h3 class=\"entry-title\"><a href=\"https:\/\/srsroccoreport.com\/worlds-largest-silver-mines-suffer-falling-ore-grades-rising-costs\/\">WORLD\u2019S LARGEST SILVER MINES: Suffer Falling Ore Grades &amp; Rising Costs<\/a><\/h3>\n<p class=\"entry-title\"><strong><span style=\"color: #333333; font-size: 16px;\">The world\u2019s two largest silver mines have seen their productivity decline substantially due to falling ore grades and rising costs.\u00a0 Gone are the days when silver mines could produce silver at 15-20 ounces per ton.\u00a0 <\/span>Today, the Primary Silver Mining Industry is likely producing silver at an average yield of 4-5 ounces per ton<span style=\"color: #333333; font-size: 16px;\">.<\/span><\/strong><\/p>\n<\/header>\n<div class=\"entry-content clearfix\">\n<p>In my newest video, I discuss the changes that have taken place in the world\u2019s two largest silver mines, the Cannington Mine in Australia and the Fresnillo Mine in Mexico.\u00a0 Falling ore grades and rising energy costs have contributed to the doubling and tripling of production costs at many silver mining companies.\u00a0 Investors who believe it still only costs $5 an ounce to produce silver, as it did in 1999, fail to grasp what is taking place in the silver mining industry:<\/p>\n<p>A big problem that has confused investors is the reporting of the \u201cCASH COST\u201d metric by the mining industry.\u00a0 Some silver mining companies can brag that they have a very low cast cost of $5 an ounce, but they arrive at that figure by deducting their \u201cby-product credits.\u201d\u00a0 By-product credits are the revenues they receive from producing copper, zinc, lead, and gold along with their silver.<\/p>\n<p>For example, Hecla Mining stated their silver cash cost of $0.16 per ounce for the first three-quarters of 2017.\u00a0 They were able to report that very low $0.16 cash cost by deducting $175 million of their zinc, lead and gold revenues.\u00a0 <strong>Hecla\u2019s three silver mines had total revenues of $278 million, but they deducted $175 million in by-product credits to get the low $0.16 cash cost<\/strong>.\u00a0 They deducted 63% of their revenues to arrive at that low meaningless cash cost.<\/p>\n<p>According to Hecla\u2019s financial statements, they only made $4.2 million in net income on a total of $417 million in total revenues Q1-Q3 2017 (including $140 million from their Casa Berardi Gold Mine).<\/p>\n<\/div>\n<p>&#8230;click on the above link to read the rest of the article&#8230;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>WORLD\u2019S LARGEST SILVER MINES: Suffer Falling Ore Grades &amp; Rising Costs The world\u2019s two largest silver mines have seen their productivity decline substantially due to falling ore grades and rising costs.\u00a0 Gone are the days when silver mines could produce silver at 15-20 ounces per ton.\u00a0 Today, the Primary Silver Mining Industry is likely producing [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,4],"tags":[1482,18232,647,18233,730,12073],"class_list":["post-30350","post","type-post","status-publish","format-standard","hentry","category-economics","category-environment","tag-mining","tag-ore-grade","tag-precious-metals","tag-production-costs","tag-silver","tag-srsrocco-report"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/30350","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=30350"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/30350\/revisions"}],"predecessor-version":[{"id":30351,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/30350\/revisions\/30351"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=30350"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=30350"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=30350"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}