Over the last month, Mr. Hebba has been analyzing and posting the silver industry's true costs to mine silver. He analyzed all the major publicly traded primary silver producers, which produced a total of over 70 million ounces of mined silver in 2012 - a very large portion of the total worldwide production of silver (estimated at over 750 million for 2011). He believes that his numbers represent a large enough portion of mined production to extrapolate as a general figure across the industry and silver investors should pay attention.
For equity investors, these costs are important, because it gives insight into how much it costs a company to mine each ounce of silver. This allows investors to see how profitable a company can be in different silver price environments. Additionally, it allows a fair comparison between miners to see how cost structures compare across the industry.
Working URL: https://seekingalpha.com/article/1303691-the-true-cost-to-mine-silver-complete-2012-figures
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