Canadia Loses 2/3rds of Silver Production in Just 12 Years!

Canadian Silver Production Jan-Feb NEWCanadian silver production declined significantly in the first two months of 2014 compared to last year.  The huge drop off in production was due to the closure of two base metal mines and one primary silver mine in 2013.
Canada has lost two-thirds of its silver production in just twelve years.
While Canada isn’t a large global silver producer, it’s still a large percentage decline nonetheless.
As the Royal Canadian Mint continues to ramp up sales of its Silver Maples, the country will have to import more silver to make up for the shortfall in domestic production.  

 

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From The SRSRocco Report:

Silver production in Canada declined from 119.5 metric tons (3.84 million oz) in January and February 2013, to 70 metric tons (2.25 million oz) in the first two months of 2014. 

Canadian Silver Production Jan-Feb NEW

 

Here we can see that overall production declined nearly 50 metric tons or 41% y.o.y. (year over year).  The fall in silver production came from the closure of Glencore Xstrata’s Brunswick and Perseverance zinc mines in Eastern Canada which produced 350,000 metric tons of zinc in 2011. Furthermore, Canada’s highest grade silver project, Alexco Resources Bellekeno mine, was put on care and maintenance in fourth quarter of 2013 hoping for higher prices in 2014.  Alexco’s break even for its Bellekeno mine was in the $28-29 range last year… according to my estimates. Alexco Resources took a beating last year when the price of silver fell from an average of $31.14 in 2012 to $23.97 in 2013.

Alexco’s revenues declined from $76.7 million in 2012 to $43.1 million in 2013.  They went from an adjusted net income gain of $3.4 million in 2012 to a loss of $4.3 million. When Alexco was running out full production, it produced 2.1 million oz of silver in 2012 at a stunning yield of 22.7 ounces per ton. Canada’s silver production peaked in 2002 at 44.1 million ounces and is estimated to fall to 15 million ounces in 2014:

 

Canadian Silver Production 2001-2014 Est

 

The global base mining company Vale, is bringing online its new Totten nickel & copper project this year.  Along with its base metal production of nickel and copper it will have by-products of PGE’s (platinum & palladium) and gold.   Even though there may be some silver production, it will be very little. Here we can see that Canada lost two-thirds of its silver production in just twelve years.
While Canada isn’t a large global silver producer, it’s still a large percentage decline nonetheless.

Lastly, as the Royal Canadian Mint continues to ramp up sales of its Silver Maples, the country will have to import more silver to make up for the shortfall in domestic production.

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Comments

  1. SWEEET! Canada was/is a leading producer and their drop off of ore grades = moonshot  :D

    • Well, Canada wasn’t a major producer (and it surely isn’t now) but the mining activity there will be echoed throughout the industry. We all knew this was coming, and now we wait…

    • Top 10 good enough for you?  ;)  (2013, #10)
      (I thought they were ahead of U$A though… duh) 
      I hear ya about “echoed throughout the industry”  
      If nothing else, these lousy prices will curtail Silver Output. 

  2. oh yeah?  well, I have bad news for you – precious can’t seem to cross both 1,300 and 20 lines.  no matter what, no mater how, no mater if there is a shortage or not….

    • The only thing we all underestimated was TPTB’s power to commit fraud and destroy wealth. What we know to be true is true, it is just taking longer than we had ever thought possible.
       
      We’ll have to see one more wash out when things crash the only question is, what will the physical price look like.
       
      If you’re ever in calgary I’ll buy you 10 beers.

    • Thank you, dude!  I am in Toronto.  Same here, pm me if coming over.  I’d love to chat about our cosa nostra.

    • When the NYC market first opened early this morning, Silver actually did cross over the line.
      But unfortunately, it was the $19.00 line.
      ———————————————
      Could part of the difference between last Jan/Feb vs. this year’s Jan/Feb be due to a harsher winter than last year?  It was certainly a cold, snowy winter here in the US.
      (Good thing we have global warming, or this past winter would’ve been even worse…)

    • LOL @Mammoth 
      “global warming” :D

  3. As other mines shutter operation because of no profit, or stockpile ore for the day prices rise we will see the long awaited shortage

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