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Illuminati Silver : The Truth about Costs of Production and Most Silver Miners are not going bust. - YouTube
Channel: Illuminati Silver
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welcome to Illuminati silver we tell you
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the truth about silver today is Sunday
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the 28th of June 2015
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most silver miners are not about to go
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bust
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there are liars untruths and
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exaggerations perpetrated on the
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Internet in order to panic you into
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buying silver to prop up an inevitable
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price falling commodity so the dealers
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can exit their stocks at reasonable
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prices this is how it goes these guys
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claim that 16 dollar silver is below the
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cost of production
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therefore the miners and mines will go
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bust or close down supply will dry up
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and silver prices will skyrocket so by
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now while it's cheap and while you can
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actually get hold of the stuff now let's
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look at this situation a little closer
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shall we
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firstly there are two main cost
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assessments first cash costs the actual
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physical direct costs of extracting the
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silver from the ground second all in
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sustaining costs which include cash
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costs plus admin the operation of the
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business plus exploration charges now it
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does make sense for any business to look
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at the all-in sustaining costs closely
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as this depicts its level of profit
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before tax
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however companies can survive on cash
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costs for a while and in the past many
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have for cash flow purposes the second
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area to look at other types of mines
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which exist as the two main types are
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very different cost levels you have the
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primary silver mines which represent 30%
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of all silver mined and you have those
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mines such as gold lead and zinc which
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produce silver as a by-product and these
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represent 70% of the silver mined in any
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given year it makes sense therefore that
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the mines which produce Silver's are by
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product can do so much cheaper than the
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private primary silver mines
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according to mine web.com who from our
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analysis produce relatively reliable
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assessments the top 10 mining companies
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in the world in 2014 mined some 400
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million ounces just under half of the
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silver mined globally of these 10 of -
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for a primary silver mines the 10
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companies are kg HM pull scheme each
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Fresnel Oh Gold Corp bhp billiton
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Glencore Xstrata poly metal pan american
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silver seaman Arivaca Buenaventura and
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core
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mining a report by metals focus a UK
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specialist consultancy shows that these
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miners had an average all in sustaining
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cost of $14.90 an ounce
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so if current prices these companies are
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making on average two plus dollars an
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ounce with most producing thirty to
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forty million ounces a year
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not a bad profit level on just their
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mind silver operations this is why the
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consultancy predicts that saw the supply
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will continue to increase primarily the
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result of recent primary silver mine
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openings it's a direct quote excuse me
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we thought these mines were on the verge
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of bankruptcy well if that was the case
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why has a brand-new mine in Guatemala
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recently opened and is predicted to
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become one of the world's largest silver
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mines hardly the action of an industry
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that is about to go bust to look at
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these this is a little deeper
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let us now assess cash costs you
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remember the direct costs of extracting
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silver from the ground according to the
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silver Institute a renowned professional
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industry body primary silver mine cash
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costs dropped to seven dollars and 74
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cents an ounce in 2014 so even the more
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expensive mines have cash costs more
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than 50% lower than the current silver
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price so what are the cash costs of
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those mines that produce silver as a
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by-product you guessed it in many cases
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below $5 an ounce and remember they
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represent 70% of the market now before
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we are heckled we're not saying that
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these miners can survive at prices
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equivalent to cash costs for long but
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they can for a little while
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this will undoubtedly affect exploration
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and therefore long-term silver prices
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but sure
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these companies can still survive so our
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overall conclusion is this at $15 and
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above silver mines are not going to
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close or go bust except perhaps those
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which are already inefficient or have
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insufficient sufficient capital or are
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over geared as in any other industry in
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fact at these levels most are making
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money at twelve to thirteen dollars an
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ounce silver mines are not going to
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close a go bust but explorations will be
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affected at $10 an ounce some mines will
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close and one or two companies will go
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through but sufficient mergers should n
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seal which would still guarantee supply
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below $1 only the strongest will survive
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more than a year or two or those which
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produce silver as a by-product it is for
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these reasons we believe that it is
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unlikely though not impossible for
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silver prices to form much below $12 and
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a base of $10 is the lowest we can see
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prices for two before serious
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ramifications affect the market one of
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the greatest critics on YouTube the
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Internet and at conferences of the
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silver price level is Keith Neumayer the
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CEO of first majestic silver but even
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his company have reduced all in
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sustainable costs to $13 and 88 cents an
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ounce and cash costs to $8 22 so draw
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your own conclusions
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we hope you have found this video
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helpful and would appreciate it if you
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would give us a thumb up or down comment
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and if you haven't already done so
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please subscribe
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disclaimer silver Illuminati owners come
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from a background of banking into a
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national wealth management and economics
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having now retired from these worlds
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we're not now qualify to give investment
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advice
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therefore this and other productions
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must not be deemed to be giving such
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advice and merely represent the personal
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fears of its owners
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