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IT BEGINS… Primary Silver Mining Company To Cut Production 25% In 2016 The low price of silver has finally claimed is first victim. Endeavour Silver announced that it will cut silver production by 25% in 2016. The company has three mines working in Mexico and will produce 7.2 million oz (Moz) of silver in 2015. However, Endeavour plans to shut down production of one of their mines by the end of 2016 and put it on care and maintenance. According to Endeavour Silver’s press release:
Endeavour’s El Cubo Mine has had the highest cost structure of the group. According to the company’s Q3 2015 Report:
Even though Endeavour was able to reduce costs at its El Cubo Mine in 2015, its “All-in sustaining cost” was still $18.48 in Q3 2015. The company received an average silver price of $14.67, which means the El Cubo Mine was losing nearly $4 an ounce. As I mentioned in my article, Mexico’s Silver Production Declined Over The Past Two Years, Mexican silver production peaked from 187 Moz in 2013 and is forecasted to fall to 181 Moz in 2015. This took place because as some primary silver miners ramped up production, other high-cost marginal mines shut down. Endeavour’s El Cubo Mine is a high-cost marginal mine with the silver spot price at $14. It will be interesting to see if other primary silver mining companies also announce a cut back in production this year. Please check back for new articles and updates at the SRSrocco Report. You can also follow us at Twitter below:
Independent researcher Steve St. Angelo (SRSrocco) started to invest in precious metals in 2002. Later on in 2008, he began researching areas of the gold and silver market that, curiously, the majority of the precious metal analyst community have left unexplored. These areas include how energy and the falling EROI – Energy Returned On Invested – stand to impact the mining industry, precious metals, paper assets, and the overall economy. Steve considers studying the impacts of EROI one of the most important aspects of his energy research. For the past several years, he has written scholarly articles in some of the top precious metals and financial websites. You can find many of Steve’s articles on noteworthy sites, such as GoldSeek-SilverSeek, Market Oracle, Financial Sense, GoldSilver.com, SilverDoctors, TFMetals Report, Outsiderclub, SGTreport, BrotherJohnF, Hartgeld, Der-klare-blick, PeakProsperity, SilverStrategies, DollarCollapse, FurtureMoneyTrends, Sharpspixley, FinancialSurvialNetwork, Pmbull, Deviantinvestor, PmBug, Wealthwire, and ZeroHedge.
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