Two Mines Supply Half Of U.S. Silver Production & The Real Cost To Produce Silver

Just two mines supply the United States with half of its silver production, and both are located in Alaska.  It's quite amazing that Alaska now produces half of the silver for the U.S. when only 30 years ago total mine supply from the state was less than 50,000 oz per year.  The silver produced in Alaska comes from the Greens Creek and Red Dog Mines.  One is a primary silver mine and the other a zinc-lead base metal mine.

Even though Hecla's Greens Creek Mine is labeled as a primary silver mine, 56% of its revenues come from its gold, zinc, and lead metal sales.  However, Teck Resources, that runs the Red Dog Mine doesn't even list its silver production in its financial reports.  Because Red Dog produces one heck of a lot of zinc and lead, their silver production doesn't amount to much in the way of revenues.

For example, the Red Dog Mine produced 542,000 metric tons (1.1 billion pounds) of zinc and 110,000 metric tons (222 million pounds) of lead, while its estimated silver production was 6.6 million oz (Moz).  According to Teck's 2017 Annual Report, total revenues from the Red Dog Mine were $1.75 billion.  With the estimated silver price of $17 in 2017, total revenues from 6.6 Moz of silver were $112 million, or just 6% of the total.

In addition, Hecla's Greens Creek Mine in Alaska produced 8.4 Moz of silver this year, down from 9.2 Moz in 2016.  As I mentioned, the Greens Creek  Mine also generated a lot of gold, zinc, and lead, equaling $182 million of the total revenues of $326 million (including treatment costs).

The USGS just came out with their final Silver Mineral Industry Survey for 2017, reporting that the U.S. produced 33 million oz (Moz), down from 37 Moz the previous year.  U.S. silver production declined due to the union strike and the shut down of Hecla's Lucky Friday Mine.  As we can see, Greens Creek and Red Dog accounted for 15 Moz of the total 33 Moz of U.S. silver production:

While Greens Creek and Red Dog supplied nearly half of U.S. silver production last year, the next two largest mines provided 21% of the total.  Coeur's Rochester Mine in Nevada produced 4.7 Moz of silver while the Bingham Canyon Mine, the country's largest copper mine, supplied 2.2 Moz.   Almost 7 Moz of silver came from these two mines alone.

Thus, the top four silver producing mines in the United States accounted for two-thirds of the supply... 22 Moz:

Greens Creek, Alaska (8.4 Moz) = Primary Silver Mine

Red Dog, Alaska (6.6 Moz) = Zinc-Lead Base Metal Mine

Rochester Mine, Nevada (4.7 Moz) = Gold-Silver Mine

Bingham Canyon Mine, Utah (2.2 Moz) = Copper Mine

The majority of the remaining 11 Moz of U.S. silver production comes as a by-product of gold and copper mining, predominantly in Nevada and Arizona.

What's The Real Cost To Produce Primary Silver?

One of the most misunderstood metrics in the mining industry is the real cost to produce primary silver.  Now, I am not talking about the cost to produce silver as a by-product of gold or base metal mining.  Because 30% of global silver mine supply comes from primary mines, the market determines the silver price based on its cost of primary silver production.

Unfortunately, there are still investors who believe that it only costs $5 an ounce to produce silver.  And who can blame them when Hecla comes out and reports that its AISC - All-In Sustaining Cost for its Greens Creek Mine was $5.76.  If Hecla's Greens Creek Mine was profitable at $5.76 an ounce, then why did the company state a $23 million net income loss for the year?  Well, part of the reason for the net income loss was due to costs associated with the suspension of its the Lucky Friday Mine as well as losses on derivative contracts.

However, if we factor out some of those costs and look at Hecla's Cash Flow Statement, the company actually stated $18 million in positive Free Cash Flow:

We arrive at a positive Free Cash Flow by subtracting the Additions of properties, plant, and equipment (CAPEX spending) from the Net cash provided by operating activities ($116 million - $98 million).  If we take that $18 million and divide it by the 12.5 Moz of total silver production, then Hecla made about $1.44 of free cash flow per ounce.  Hecla's realized silver price in 2017 was $17.23.  So, if we subtract the $1.44 cost per oz from $17.23, then Hecla's estimated silver breakeven is about $15.80 an ounce.

If Hecla's estimated breakeven is nearly $16, then how are they posting a $5.76 AISC - All-In Sustaining Cost??  Let's take a look at the breakdown of their cost structure at their mines:

The reason Hecla can report such a low AISC is by deducting their gold and base metal revenue, which is labeled as "By-product Credits."  The Greens Creek Mine had $182 million in gold, zinc and lead credits.  By gosh, it's no wonder Hecla is reporting such a low AISC because it deducted 56% of its revenues.  

By adding up all the by-product credits from the three silver mines, it would equal $228 million.  However, if we deduct the treatment costs of $48 million from that total, it turns out to be $180 million.  Now, let's put our THINKING CAPS on for a minute.  How would the removal of $180 million from Hecla's Net Income and Free Cash impact their financials?

Hecla's Net Income = -$23 million - $180 million = -$203 million

Hecla's Free Cash Flow = $18 million - 180 million = -$162 million

So, if Hecla actually deducted its by-product metal revenues (credits) from its financials, it would be reporting a $203 net income loss and a negative $162 million in free cash flow.  Which means, the ASIC is a totally BOGUS metric that should be thrown out the window along with Cash Cost accounting.

While Hecla is labeled as a primary silver mining company, they are first and foremost, a MINING COMPANY.  Hecla needs its gold, zinc, and lead metal sales to remain profitable or at least, to keep losses to a minimum.  Anyone who uses the AISC -All-In Sustaining Cost as a metric for calculating the cost to produce silver needs to get a job printing money for the Federal Reserve.

Way too many investors fall for this nonsense and do not understand that CASH COSTS and AISC are totally useless in determining the profitability of a company.  Another thing I hear all the time from less sophisticated investors is that these mining companies use a lot of WRITE-OFFS, such as Depreciation, Depletion, and Amortization to show higher costs.  Investors who believe these mining companies are making up deductions so they can show less profit, don't understand the accounting industry.

Without getting into too many details, if you look once again at Hecla's Cash Flow statement, you will see that the Depreciation, Depletion, and Amortization are offset by the additional CAPEX spending:

If we add up the total Depreciation, Depletion, and Amortization (D,D & A) from 2015-2017, it totals $352 million.  Thus, unsophisticated investors might think Hecla has made $352 million in profit because they are just writing off D,D & A to show more costs.  Well, if we add up the CAPEX spending highlighted in yellow, Hecla spent $400 million on mostly sustaining and replacing production.  Which also means, Hecla's net free cash flow for 2015-2017 was a negative $48 million ($400 - $352).

One more thing.  Because Hecla holds $502 million in debt, it is paying a hefty $32 million a year just to service its debt.  Now, to put it another way, Hecla paid $2.80 per ounce of silver just to cover their interest expense last year.  

By investigating Hecla's financial statements, and doing some forensic analysis, we can plainly see that primary silver mining companies are not producing silver anywhere near $5 an ounce.  If you have read this article and still believe the primary silver mining industry is producing silver at $5 an ounce, then you need to sell all your precious metals and buy Netflix and Amazon stock, hand over fist.

FINAL WORD:  About My Gold & Silver Analysis

For some odd reason, I continue to receive emails and comments from individuals who state that the silver and gold prices are not taking off as I forecasted in my articles and videos.  So, I thought I would CLARIFY the issue.

PLEASE STOP looking at the markets on a DAY TO DAY BASIS... it will drive you bananas.  The trends that I forecasted will take place over the next 1-2 years.  As I mentioned in my videos, it took nearly two years for the Dow Jones Index to fall 53% from its high in July 2007 to its low in Feb 2009.  Nothing goes down in a straight line... especially BITCOIN and the CRYPTOS.

So, be patient.  The fundamentals for STOCKS, BONDS, & REAL ESTATE are just as lousy today as they were in January when the market peaked.  Give it some time and don't sweat the small stuff.

One more thing... individuals who believe the Precious Metals Dealers are the shills and swindlers pushing worthless gold and silver, please get your head examined.   I hate to be so blunt, but it does seem like IQ's have dropped considerably over the past few years.  I would kindly like to remind these Fiat Money Einsteins that there is no intrinsic value in paper money unless you want to burn it or use it to wipe one's bottom.

However, gold and silver can be used in jewelry and industry.  If you take your gold jewelry to a pawnshop, you are very likely to receive a significant percentage of the spot price (minus recycling costs, etc).  Now, go to Venezuela and see how much the INTRINSIC VALUE is for the Bolivar.  At best, the intrinsic value of a Federal Reserve Note is its printing cost.  Currently, it cost about $0.14 to produce a $100 bill.

Lastly, if you haven't checked out our new PRECIOUS METALS INVESTING section or our new LOWEST COST PRECIOUS METALS STORAGE page, I highly recommend you do.

Check back for new articles and updates at the SRSrocco Report

Comments

SRSrocco Erek Thu, 04/05/2018 - 11:38 Permalink

Erek,

That's where you are wrong.  The Market Price of gold and silver have been very close to their cost of production over the past two decades.  

The only thing the Central Banks and so-called Manipulators have done to the precious metals is to keep the masses from understanding their HIGH-QUALITY STORE OF VALUE properties.  99% of the market is invested in STOCKS, BONDS, & REAL ESTATE.  These are not stores of value, but rather, ENERGY IOU's.

Gold and Silver are stores of Economic Energy and ARE NOT ENERGY IOU's.

While the market price of silver has dropped a bit below the primary silver miners average cost of production, it wasn't much.  However, the market price of gold has not dropped below Barrick & Newmont's cost of production since 2000.

IMAGE:  https://d3hxt1wz4sk0za.cloudfront.net/wp-content/uploads/2017/04/Barric…

Moving forward... Gold & Silver will no longer be valued based on the COST OF PRODUCTION, but rather, due to their HIGH-QUALITY STORE OF VALUE properties.

SRSrocco

In reply to by Erek

Erek SRSrocco Thu, 04/05/2018 - 12:02 Permalink

That's right, gold and silver have been close to their cost of production, but not to their real value. It's the real value which has been subject to manipulation. Please explain why the ratio silver to gold should be  around 16 to 1, but is currently somewhere in the neighborhood of 70 or 80 to 1? Sseems manipulated to me.

Otherwise, I agree with what you say.

In reply to by SRSrocco

SRSrocco Erek Thu, 04/05/2018 - 12:08 Permalink

Erek,

Agreed.  It's the REAL HIGH-QUALITY STORE OF VALUE of the precious metals that have been taken away by the Central & Bullion Banks.  

The 99% of Investors don't realize they are holding supposed assets that will be imploding in value over the next 1-2 years and beyond.

While many in alternative media believe the Fed & Central Banks can manipulate gold and silver forever, they forget that it takes the production of ENERGY to keep the highly inflated Debt-Based Fiat Monetary System alive.  As soon as oil production heads south... the GIG IS UP.

steve

In reply to by Erek

SRSrocco Erek Thu, 04/05/2018 - 12:21 Permalink

Erek,

It takes the movement of 60-70 times more ore to produce an ounce of gold than silver.  According to my calculations, the estimated breakeven for the primary gold industry is $1,150-$1,200 and for silver, it's $15-16 an ounce.  That is where we get the 70-1 (plus or minus) Gold-Silver Ratio.

Now, before oil came on the market and a barrel of oil provided the equivalent of the labor of 23,000 workers, the Gold-Silver ratio was tied more to the amount that was extracted out of the ground, based on human and animal labor.

SRSrocco

In reply to by Erek

SRSrocco DownWithYogaPants Thu, 04/05/2018 - 13:55 Permalink

DownWithYogaPants,

Most precious metals dealers make between 2-5% selling gold and silver.  Not much different than most other Retail Stores or outlets.  Precious Metals Dealers aren't getting rich trying to help individuals to protect their wealth.

Now, on the other hand, I can assure you JAMIE DIMON, CEO of JP Morgan, who makes nearly $30 million a year in total compensation, didn't earn that salary without printing money out of thin air.

So, you are worried about the peanuts the Precious Metals Dealers make when the entire Fiat Banking Industry is ripping off its clients HAND OVER FIST???

SRSrocco

In reply to by DownWithYogaPants

FEDbuster SRSrocco Thu, 04/05/2018 - 15:55 Permalink

Diversify your investments.  My youngest son tried to get me to buy a $1,000 worth of Bitcoin when it was under $20. in 2011, but silver was on a roll at the time.  I continued to buy silver into the mid 30's.  In hindsight, the Bitcoin would have worked out MUCH better.  Same could be said of many stocks at the time, Amazon comes to mind.

For SHTF scenarios, I always remember in the book "The Road" by Cormick McCarthy, when the father finds a small bag full of gold coins in the bunker full of food.  He stares at the coins, then let's them drop to the floor while loading up his shopping cart full of canned food.  In that world, gold like fiat currency had no value.  Food and the means to protect yourself had all the value in a survival situation.

Perspective is important, and I think gold bugs (just like Crypto bugs) lose sight of that at times.

In reply to by SRSrocco

FEDbuster gaoptimize Fri, 04/06/2018 - 10:03 Permalink

When you're starving, you can't eat gold coins.  Gold works as a medium of exchange, when people you are trading with perceive it has value for future exchanges.  In a world of starvation and survival, it's value would be questionable.  However, as we can see in Venezuela, it is still working very well.  Diversify for different scenarios.

In reply to by gaoptimize

lunaticfringe SRSrocco Thu, 04/05/2018 - 13:23 Permalink

There is going to be a huge shift away from oil and even if there is not, I find it highly unlikely that oil production will head south in my life time. Because what we are really talking about is metals as some sort of insurance. Gold and silver are hedges against a crumbling dollar. The 64,000 dollar question is when precisely is this giant collapse/reset going to occur? Nobody knows. And it will only happen once.

 

I bought into the metals hype many years ago. Since then silver is lower and gold has been mostly sideways. (10 years)

 

I have to tell you SRS...I have followed you for years from your TF Metals days. A lot of us are starting to get sick of hearing how we need to rush out and buy a commodity for this imminent collapse which never materializes. There is a time consequence too- your money is not liquid and as the years pass continual debasement means that at some point the money you will get for those metals will be a lesser value than the dollars you used to buy it.

 

1-2 years. We'll see, been hearing this schtick for 10. 

In reply to by SRSrocco

lucyvp lunaticfringe Thu, 04/05/2018 - 19:07 Permalink

I hear you lunatic,

we may both leave the planet before the "great reset" occurs.  However ... the needle is definitely moving in the wrong direction.   Rising debt levels, rising interest rates, rising oil prices.  Neither party is the party of fiscal responsibility. 

I would pick a number that you feel comfortable with 20%, 25% ... 33% ...  whatever, of your wealth to hold in gold and silver, farm land etc.  And stick with that.  It could all end next week, or 20 years from now.

My gut tells me the dynamics are non linear, like predicting when an avalanche will occur.  Every day it snows you know the end has come more near, but you never know when it is going to break.

Hug your loved ones, and take care.

LVP

In reply to by lunaticfringe

jfb Erek Thu, 04/05/2018 - 13:01 Permalink

@Erek: The "real value" of gold & silver depends also o the demand vs the supply, SRSrocco focus on the real mining cost because there is not yet any craze about physical gold, most people prefer to have stocks, bank accounts, etc...The bankers know that if the price starts to rise quickly, EVERYBODY will want to buy gold, that's why they need  to hammer the price barely above the mining cost.

In the worst case, if they succeed, gold will not lose its purchasing power (unlike stocks), in the best case, some geopolitical events lead them to lose the control and the demand for physical gold explode

In reply to by Erek

manofthenorth alexcojones Thu, 04/05/2018 - 18:25 Permalink

So you are a real environmentalist eh ? Your gillnet boat is most likely made from aluminum and no doubt has 2 diesels so it can run to the next set at 30 knots. Bristol Bay boats are the only ones sillier than Cook Inlet boats. Gotta get there first so you can catch more salmon faster than the other guy right ? But it is miners and loggers that KILL all the salmon right ? How many sea lions you shoot every year ? Not many left in that neck of the woods huh ? Of course that is most likely because of the factory draggers and not the gillnetters that shoot thousands of sea lions each year right ? Spare me your environmental concerns, your only concern is how much you will make from killing all the salmon you can. You are all for resource production that supports your extraction practices unless you are gillnetting out of your wooden sailboat, come to think of it not much timber in Bristol Bay so you are going to need someone else's timber for that also. 

You know the difference between a gillnetter and a puppy ?

Sooner or later the puppy quits whining.

In reply to by alexcojones

Der Libertäre truthseeker47 Thu, 04/05/2018 - 12:33 Permalink

It might be for you, for me it is savings. Simple savings. Do I hope for 5000 USD gold? No I hope for 5000 USD silver. Joke aside, your reasoning seems to say "do not save in gold, as you bet for doomsday". I am 100% positive doomsday is coming anyway - if not already there. It is just, do I have the gold or does the other guy?

The west is dead. Drowning in debt there, drowning in muslim invasion here - both counted as "growth" of course. I am convinced there will be corners in this world, where life will still be worth to live. With savings I might be able to move myself to more peaceful areas. AND I am convinced that certain countries will invite people with means and skills to live at their place.

Means and skills are not insurance - they are assets. Steve calls PM stored energy.

I see you received 8 to 0 agreements - well, I disagree with you and eight more.

In reply to by truthseeker47

jfb truthseeker47 Thu, 04/05/2018 - 12:41 Permalink

I can't understand the people who cry that the price of physical gold hasn't sky rocket yet. If their goal is to resell it, why not buying paper gold since the "premium" is lower? Someone who buy physical gold should only be worried bout its purchasing power in a few years if there is a total collapse, not how much they can "resell" it.

In reply to by truthseeker47

gdpetti PGR88 Thu, 04/05/2018 - 13:34 Permalink

And that was mostly scare tactics, not the real 'cosmic' shitstorm about to occur.. not that soon.... said to arrive within a decade... check out our planet's EM field strength.... now, 'best case scenario' is that it takes much longer, but any 5 yr old can look at that chart pattern and see that it's started dropping like a stone... and within a decade our EM shield will hit bottom... cosmic ray increase keeps rising with it... low solar activity is what powers our EM field (essentially)... sun goes quiet, so does our field... it gets weaker, but spreads larger due to the lack of solar dominance... but larger is weaker.. same sort of data affect that this article is writing about... you can't just accept the public data, we all know how the Fed/BLS etc manipulate them... at least since the Reagan/Bush1 years in which it became permanent... and like any compass heading, those few degrees increase over time.

Our markets, societies etc, reflect the cosmic cycle... all the data on 'earth changes' has gone parabolic... the DOD stopped issuing NEO (near earth objects) a few years ago when they started climbing so fast.... almost all the world's volcanoes seem to be warming up... and most of them are underwater.... that's how the infamous "Convenient Lie" of AL Gore got the public... the ice shelves were and some still are 'melting'... due to these underwater volcanoes... but the land ice/glaciers has reverse course since the end of the last ice age, as the new one approaches, and more recent studies say the 'transition' is done in 3-4 months... .like that movie "Day AFter Tomorrow"... based on the book of different title.

Add in that the same oligarchs/SG running this OWO want to take it down, out it, expose it, use it as the fall guy for their implementation of their NWO.... thus all the stupidity etc in DC/London these days... as the front guys, puppets in power, are used to take the system down.. they know what's coming, their puppets mostly do not... some believe they will be taken care of... not likely, but puppets are best when they don't see their strings... same with the masses.. as the truth could set them free... and that is where we are today.. the truth is leaking out... some is done on purpose by the SG to out their OWO.. to create stress, chaos.. negative energy for their NWO.

Mother Nature is the real trigger to things... main comet cluster is approaching behind our brown dwarf companion star... which doesn't get that close (pluto orbit), but it affects the outer planets nearby, and the comets are mostly behind it, and they are the main danger... affecting the EM field as well as this burnt out brown dwarf... which reinvigorates the cluster every 28million years when it swings by for a kiss. Our geologic records are full of these events, some regular/cyclical, others are outlyers that make the charts messy... as some remnants of the comets stay in tighter orbits and swing by every year.... which is why all those ancient structures were built in thick ass stone.. and aligned to the stars to keep track of them... it all makes sense once you understand WTF is going on.

In reply to by PGR88

Uchtdorf Observant Thu, 04/05/2018 - 16:09 Permalink

Observant, you may be very experienced, militarily speaking, and quite aware of the difference between cover and concealment. However, comments like yours are always amusing to me because I can't imagine a world in which I needed 100,000 bullets and there wouldn't be at least half that many bullets coming back in my direction. I'm unlikely to live through an ordeal like that no matter how good my cover is.

In reply to by Observant

Oldguy05 Thu, 04/05/2018 - 11:15 Permalink

If I dollar cost average all my metals and sold today, I would profit a couple grand. If I held all those fiat dollars instead, I'd have lost a few hundred due to inflation etc. Which method of saving sounds better?

keep the basta… Thu, 04/05/2018 - 11:40 Permalink

Scottsdale mint has beautiful poured cast silver bars, like the 5 oz button.

This happened way back but the asian market control is growing. Cant get that 5 oz button anywhere for years. Singapore commissions special limited bullion mints from Perth Mint and most goes to them.  below from scottsdale website.

02-04-2014

Scottsdale Mint Enters Into Strategic Partnership With Singapore Precious Metals Exchange (SGPMX)

SCOTTSDALE, Ariz., Dec. 9, 2013 (GLOBE NEWSWIRE) -- Scottsdale Mint, well-known U.S. based fabricator of precious metals, today announced a strategic partnership with Singapore Precious Metals Exchange (SGPMX). The Exchange has appointed Scottsdale Mint as the first and only Certified Broker to represent SGPMX in North America. The partnership will allow for U.S. and Canadian based investors to participate in the world's first physical gold and silver exchange with peer-to-peer bullion trading capabilities via online services provided by Singapore Precious Metals Exchange. Investors will now have the ability to access state-of-the-art secure vaulting, 24-hour liquidity and self-directed auditing of their physical portfolios using the SGPMX platform. Click Here to view the Full Press Release

Oldguy05 keep the basta… Thu, 04/05/2018 - 11:49 Permalink

Scottsdale has a hefty premium. If I have the extra cash to pay a higher premium I like Royal Canadian Mint 10 oz bars, Privy Maple leafs or 10 oz British queen's beast coins. If not I go for Silvertown, Sunshine or Pamp 10 oz bars or whatever are the cheapest generic rounds. I also collect a few different series of silver and 1/4 oz gold coins I like just for fun.

In reply to by keep the basta…

rex-lacrymarum Thu, 04/05/2018 - 12:50 Permalink

A few inaccuracies: 1. there is no such thing as "intrinsic value". All value judgments are subjective.

2. precious metals that are useful as money commodities (and only gold and silver really fit the bill) as a rule have a very large above ground stock that is multiples of annual consumption demand and mine supply; in gold's case the stock is large enough to satisfy 70 years of annual demand for fabrication (jewelry) and industrial purposes. I'm not sure what the ratio for silver is, but it is also much larger than for base metals. So the price can deviate from production costs for a long time without the slightest problem. 

centipede rex-lacrymarum Thu, 04/05/2018 - 22:36 Permalink

1. I agree, all value judgments are subjective, but some of them are more and some less "subjective". How subjective is your judgement about water or food as a value? It probably depends on the situation, right? If it is a matter of survival the value can be quite substantial and you can not ignore it without serious consequences. Subjective doesn't mean that it doesn't exist and it can not be very important for you.

2. Well, the number of homes in the US is large enough to satisfy 100 years of annual demand for fabrication of new homes. How often and for how long can the price deviate down from production costs? And how often it actually happened? But you might object, that we need some sort of a shelter as opposed to "useless" gold. What about the art? Do we necessary need it? How many pieces of art are there in comparison to new art created and sold annually? Is there any evidence about long term deflation of prices under production costs for pieces of arts?

In reply to by rex-lacrymarum

arrowrod Thu, 04/05/2018 - 13:02 Permalink

According to somebody, the intrinsic value of a $100 is $0.14, the printing cost.  Yet the U.S. spends several $trillion to enforce that you will accept said "fiat" and will pay your taxes.

Albertarocks Thu, 04/05/2018 - 13:27 Permalink

I'm not surprised those two mines up in Alaska are producing well.  One of my favorite stocks is the only Canadian primary silver miner there is... Alexco Resources, and they are up in that neck of the woods as well.  The reason I like this company so much is because they have a great secondary source of income producing great cash flow.  So when silver prices are this low they just shut down their mine, refusing to sell silver into the market at these ridiculous prices.  They haven't produced an ounce of silver since I started buying shares at 36¢ in March, 2015, and yet I've made great money with this little gem.  Since I first bought it at 36¢ it popped to $3.30 and has now pulled back to $1.75.

They survive on their secondary revenue stream which comes from doing land reclamation on previous mines from decades and decades ago.  Their customer?  Government of Canada.  So this company has nowhere to go but up, considering that they own the entire Keno Hill Silver District with 17 million ounces indicated.  They have $18M cash and backing from Sprott if they need it.  I don't see why they would even need it though.  In the meantime, they only have to flip the switch and their mine goes back into operation.  And they generate great cash flows while waiting out this madness.  How can you lose with a situation like this?

SumSUN Thu, 04/05/2018 - 14:04 Permalink

The 99% of Investors don't realize they are holding supposed assets that will be imploding in value over the next 1-2 years and beyond.

1-2 years and beyond.

You mean 8-97 years and beyond, I assume.

Easyp Thu, 04/05/2018 - 14:09 Permalink

Hecla gets a bad press in the article but it is sat on a great deal of silver, even the strike has helped them cut costs and wait for better prices.  Dont like the debt but hold Hecla and great panther as a hedge.

Easyp Thu, 04/05/2018 - 14:09 Permalink

Hecla gets a bad press in the article but it is sat on a great deal of silver, even the strike has helped them cut costs and wait for better prices.  Dont like the debt but hold Hecla and great panther as a hedge.

Pernicious Gol… Thu, 04/05/2018 - 17:08 Permalink

There's supposed to be a huge amount of silver remaining at Tombstone, Arizona. At one time they pulled so much out they crashed the worldwide price. They abandoned mining when the pump failed and the mine flooded. I don't know whether the problem was then-current technology couldn't keep up, or they didn't think there was really enough silver to justify the expense of new pumps. Somebody owns that claim.

WilliamShatner Thu, 04/05/2018 - 19:20 Permalink

I've always wondered how long the existing above ground silver would last if suddenly the word wide mining of silver were to cease.

Anyone here know that answer to that question?  My guess is that the currently mined supply would vanish pretty quickly, and you'd have people selling silverware due to skyrocketing silver prices.