By SD Contributor SRSrocco:
GOLD COSTS RISE 23% IN 2011, BUT SILVER COST FALL 7%… SO WHAT, ITS OLD NEWS!
This was the data put in an article Restless investors tell gold CEOs to fix slump. Maybe silver production costs may have fallen in 2011 compared to 2010 due to the huge increase in price paid for silver and base metals in 2011. I have not looked into the data to see if it was true, but I can show you what is going on in the first nine months of 2012:
Here are some cost percentages from the top silver miners first nine months 2012 compared to 2011:
MINE PRODUCTION COST INCREASES FIRST NINE MONTHS Q3 2012
2011 PAN AMERICAN SILVER = 38.3%
2012 PAN AMERICAN SILVER = 51.3%
2011 COEUR D ALENE = 40.1%
2012 COEUR D ALENE = 51%
2011 HOCHSCHILD FIRST 6 MONTHS = 39.3%
2012 HOCHSCHILD FIRST 6 MONTHS = 49.2%
These percentages are just the direct cost of mining silver. So, we can see that from the top silver miners, SILVER MINING COSTS have increased significantly since last year. Bloomberg needs to update its information on the cost of gold and silver mining. I know of no mining company that is calculating their earnings in 2012 on LAST YEARS COST STRUCTURE.
UNMANIPULATED PRICE = $150