Mining companies and low PM prices

[benjamen]

I was doing some research on mining companies and ran across this article on silver mining:
http://seekingalpha.com/article/3414466-hecla-mining-metal-prices-have-driven-massive-change

I was struck by this quote:
"Right now under $16 an ounce most businesses in the sector simply won't survive. They are cutting costs as much as possible."

For me, the strongest bullish indicator in commodities is when the price of a commodity falls below the cost to mine/harvest/produce that commodity.

 

[ancona]

If I were a mine owner, I'd say to hell with forwards and hedging, I would close the shafts and lay everyone off. When the shit stops coming out of the ground, the banksters will be put on notice to stop their shenanigans.

 

[benjamen]

http://seekingalpha.com/article/374...loss-making-in-q3-despite-the-gold-price-fall

"In Q3 2015, globally, the consultancy reports that gold mining total cash costs (TCC) averaged $652/oz..."

"If one looks at the industry in the light of the stricter All in Sustaining Costs metric, at the industry average of $836/oz, Metals Focus reckons that around 15% of the industry was loss making at the Q3 average gold price of $1,125/oz..."