Silver Mine's Negative Cash Cost Revealed by Honey Badger Silver Inc.

Silver has been facing its sixth consecutive annual structural deficit, which has led to a decrease in price. Spot silver traded at around $65 an ounce through mid-August and was assessed at $66.41 on August 31.

In polymetallic deposits where silver is produced alongside zinc, lead, and copper, base metal by-product credits can push the all-in sustaining cost of silver below zero. This means that the revenue generated from selling these metals exceeds the total cost of production, making the silver essentially free.

Honey Badger Silver Inc., a Canadian mining company, has announced a positive Preliminary Economic Assessment (PEA) for its PC Silver Mine in the Northwest Territories. The mine is expected to produce 10.7 million ounces of silver equivalent over the first seven years, with an all-in sustaining cost of negative $22 per ounce in the long-term consensus pricing case.

The company has already invested significant capital in the mine, including a historic mill, airstrip, and underground workings, which will reduce the need for additional investment. The PEA also does not include any economic value attributed to germanium, antimony, or tungsten, nor recent Canadian tax incentives.