Silver Mining Production Plummets 27% At Top Four Silver Miners
by SRSRocco Report
In an interesting change of events, production at four of the top primary silver miners plummeted during the second quarter of 2017.
This goes well beyond normal fluctuations in mining companies production figures during different quarterly reporting periods. The company with the least percentage decline in silver production still suffered a 20% reduction of mine supply in the second quarter.
According to recently released company data, silver production declined between 20-34% from these four primary silver miners during the second quarter. The company that suffered the biggest decline in silver production was Hecla at -34%, followed by Endeavour Silver at -26%, Silver Standard at -24% and First Majestic with a decrease of 20% (see table above).
Total silver production from these four primary silver miners fell 27%, from 11 million oz (Moz) during Q2 2016, to 8 Moz Q2 2017. We can see the breakdown in the chart below:
The second largest percentage decline in silver production was from Endeavour Silver. Production at Endeavour Silver fell from 1.6 Moz in the second quarter of 2016 to 1.1 Moz in Q2 2017. This 26% decline in silver mine supply was blamed on several factors:
Reduction in capital and exploration expenditures in the beginning of 2016 due to lower silver prices, but the company has increased spending once again in the second half of 2016
narrowing veins, falling ore grades and less ore processing due to a reduced capital expenditures in the beginning of 2016
less access to mine areas as pump failures due to power overloading caused flooding in some portions of the mines
This huge decline in silver production at Endeavour Silver, plus falling earnings, impacted its stock price which fell 16% in one day after the news.
Click here to read full story on GoldCore.com
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