GETTING CLOSE TO BREAK-EVEN: SILVER & U.S. COPPER INVENTORIES PLUMMET

By SRSrocco:

In just eight months, the U.S. LME copper inventories are down nearly 60%.

The top 10 Primary Silver Miners (does not include Fresnillo & Hochschild) had total revenues in Q3 2011 of $954 million with a combined net income of $241 million.  As the table shows, this was 25% margin compared to total revenues.

However, in this past quarter we can see the damage to the balance sheets as the miners received about $8.00 less an ounce for silver in Q3 2012 than the same quarter last year.  Total income declined to $895 million even though the overall production was a million oz more.  Furthermore, we can see that net incomes have plummeted 78% to only $53 million…. a mere 6% of total revenues.

From my simple calculations, the break-even price to Net Income was about $28.00 for the combined primary silver miners. [Read more...]

BREAK EVEN COST FOR SILVER RISES TOWARDS $30 AS COEUR, HECLA & SILVER STANDARD SHOW NET INCOME LOSSES

By SRSrocco:

Well, the third quarter results are now out, and it looks like several of the primary silver miners stated a net income loss for the period.

The three primary silver miners produced 8.1 million ounces of silver during the third quarter of 2012 and all showed a net income loss.  Here we can see that for several of the primary silver miners, the break even cost now for producing silver is now $30 an ounce.

As costs rise, so will the break even price of silver. [Read more...]