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6 Pages

End of the silver lining - Are zinc mines at risk?


End of the silver lining - Are zinc mines at risk?

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...

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This report includes 1 file(s)

  • End of the silver lining - Are zinc mines at risk? PDF - 473.42 KB 6 Pages, 1 Tables, 6 Figures

Description

This Metals Insight report highlights the key issues surrounding this topic, and draws out the implications for those involved.

For industry participants and advisors who want to look at the trends, risks and issues surrounding this topic, this report gives you an expert point of view to help inform your decision making.

Our analysts are based in the markets they analyse and work with high-quality proprietary data to provide consistent and reliable insight.

We provide unique in-depth analysis of the metals supply industry so you can make confident strategic decisions.

  • Executive summary
  • Introduction
  • Margins are squeezed
  • High silver mines under pressure
  • 900kt vulnerable to closure

In this report there are 7 tables or charts, including:

  • Executive summary
  • Introduction
    • Zinc mine net revenue US$ billion 2000-2012
    • Monthly silver prices January 2004 to July 2013
    • Price sensitivity assumptions
  • Margins are squeezed
    • Zinc mining margin curve for 2012 vs scenario 1 and scenario 2
  • High silver mines under pressure
    • 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
  • 900kt vulnerable to closure
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