Canadian Silver Production Down Significantly
Silver production in Canada declined from 119.5 metric tons (3.84 million oz) in January and February 2013, to 70 metric tons (2.25 million oz) in the first two months of 2014.
Here we can see that overall production declined nearly 50 metric tons or 41% y.o.y. (year over year). The fall in silver production came from the closure of Glencore Xstrata’s Brunswick and Perseverance zinc mines in Eastern Canada which produced 350,000 metric tons of zinc in 2011.
Furthermore, Canada’s highest grade silver project, Alexco Resources Bellekeno mine, was put on care and maintenance in fourth quarter of 2013 hoping for higher prices in 2014. Alexco’s break even for its Bellekeno mine was in the $28-29 range last year… according to my estimates.
Alexco Resources took a beating last year when the price of silver fell from an average of $31.14 in 2012 to $23.97 in 2013. Alexco’s revenues declined from $76.7 million in 2012 to $43.1 million in 2013. They went from an adjusted net income gain of $3.4 million in 2012 to a loss of $4.3 million.