Silver Producers’ Q3 Cash Costs Down 13 Percent, Says Dundee

Mineweb reported that all-in cash costs for the silver companies followed by Dundee Capital Markets fell by 13 percent, to $20.08 per ounce, in the third quarter of this year. The firm expects their costs to fall even further in Q4.

As quoted in the market news:

The calculation includes site operating costs, exploration, corporate G&A, interest costs, royalties, taxes and sustaining capital and takes account of the cost profiles of Coeur Mining, Endeavour Silver, First Majestic Silver Fortuna Silver Mines, Pan American Silver, Silver Standard SilverCrest Mines and Tahoe Resources. It is worth noting, however, that the average excludes Silver Wheaton, which, as is evident from the graph below, is built around a significantly lower cost profile.

It is also worth pointing out that, although the average for the seven companies under consideration is above 20, the cost per ounce range is rather wide, with SilverCrest putting in the most creditable performance, with costs of $12.72/oz in the quarter, while, Silver Standard Resources brought up the rear with costs at $30.50/oz.

Click here to read the full Mineweb report.