Insight
End of the silver lining - Are zinc mines at risk?
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*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
In recent years revenue from by-products, particularly silver and gold, has transformed the economics of many zinc mines and projects, and in some cases supported production at some marginal operations. In 2012, silver contributed 23% of net revenue at zinc mines. However, in June 2013 the silver price fell to US$18.6/oz, 40% below the 2012 average. The weakening of the silver price led to many producers and investors to review the economics of their mining operations. Yukon Gold for...
Table of contents
- Executive summary
- Introduction
- Margins are squeezed
- High silver mines under pressure
- 900kt vulnerable to closure
Tables and charts
This report includes the following images and tables:
- Zinc mine net revenue US$ billion 2000-2012
- Monthly silver prices January 2004 to July 2013
- Price sensitivity assumptions
- Zinc mining margin curve for 2012 vs scenario 1 and scenario 2
- Zinc mine cost curve, 2012, highlighting mines with silver net revenue > 25%
- Zinc mine cost curve, 2013 Scenario 2, highlighting mines with silver net revenue > 25%
- Total cash flow generated in 2012 vs scenario 1 and scenario 2
What's included
This report contains:
