{"id":53098,"date":"2020-05-09T09:41:24","date_gmt":"2020-05-09T14:41:24","guid":{"rendered":"https:\/\/olduvai.ca\/?p=53098"},"modified":"2020-05-09T09:41:26","modified_gmt":"2020-05-09T14:41:26","slug":"top-primary-silver-miner-cost-of-production-now-breaking-even","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=53098","title":{"rendered":"Top Primary Silver Miner Cost Of Production Now Breaking Even"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><a href=\"https:\/\/srsroccoreport.com\/top-primary-silver-miner-cost-of-production-now-breaking-even\/\">Top Primary Silver Miner Cost Of Production Now Breaking Even<\/a><\/h3>\n\n\n\n<p>One of the top primary silver mining company\u2019s is now breaking even producing silver.&nbsp; Pan American Silver just released its Q1 2020 Report surprising analysts by posting a net loss of $77 million.&nbsp; However, if we go by the company\u2019s \u201cAdjusted Earnings,\u201d Pan American Silver reported a $7.6 million loss.&nbsp; This is the figure I use for my calculations in determining the \u201cEstimated Breakeven.\u201d<\/p>\n\n\n\n<p>I will be posting a new Youtube Video update on the details of the Silver Market and the Breakeven Analysis this weekend.<\/p>\n\n\n\n<p>Here is a quick peek of Pan American Silver\u2019s All-In Sustaining Cost (AISC) that jumped in the first quarter of 2020:<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/d39ua1j16brbz0.cloudfront.net\/wp-content\/uploads\/2020\/05\/Pan-American-Silver-AISC-Q1-2019-Q1-2020.png\" alt=\"\" class=\"wp-image-21984\"\/><\/figure>\n\n\n\n<p><strong>According to Pan American Silver\u2019s calculation of its All-In-Sustaining Cost for silver, it jumped to $15.26 in Q1 2020<\/strong>.&nbsp; The company stated the reason for the increase was mainly due to:<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>l<strong>ower by-product credits, driven mainly by lower realized base metal prices; increased concentrate smelting and refining charges; and higher direct operating costs per ounce in part due to lower silver grades.<\/strong><\/p><\/blockquote>\n\n\n\n<p>Because Pan American Silver produces so much copper, zinc, and lead, along with silver, these base metal prices impact the by-product credit amount in the analysis of the company\u2019s All-In Sustaining Cost.&nbsp; The base metals prices declined considerably during the first quarter of 2020, thus pushing up the All-In Sustaining Cost for silver.<\/p>\n\n\n\n<p><strong>So, with Pan American Silver\u2019s All-In Sustaining Cost for Q1 2020 at $15.26, it is now very close to the current spot price of silver at $15.48.&nbsp;<\/strong>&nbsp;However, with the lower oil price in April and May, this will likely lower the company\u2019s production costs in Q2 2020.&nbsp; But, if base metal prices continue to be weak or weaker in Q2 2020, Pan American Silver may not see much of a lower AISC when the results come out in July.<\/p>\n\n\n\n<p>Interestingly, my Estimated Breakeven for Pan American Silver is much higher than the company\u2019s AISC.&nbsp; Again, I will provide the details in my newest video update.<\/p>\n\n\n\n<p><strong>Please check back for my newest Youtube Video Update this weekend.&nbsp;<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Top Primary Silver Miner Cost Of Production Now Breaking Even One of the top primary silver mining company\u2019s is now breaking even producing silver.&nbsp; Pan American Silver just released its Q1 2020 Report surprising analysts by posting a net loss of $77 million.&nbsp; However, if we go by the company\u2019s \u201cAdjusted Earnings,\u201d Pan American Silver [&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],"tags":[29650,730,29649,12073],"class_list":["post-53098","post","type-post","status-publish","format-standard","hentry","category-economics","tag-pan-american-silver","tag-silver","tag-silver-mining-production-cost","tag-srsrocco-report"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/53098","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=53098"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/53098\/revisions"}],"predecessor-version":[{"id":53099,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/53098\/revisions\/53099"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=53098"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=53098"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=53098"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}