I
have been spending a great deal of time going over the balance sheets
of mining companies to get a better TRUE COST of SILVER PRODUCTION. I
have put out a request for anyone in the accounting profession to assist
me in this matter. After the initial interest, it seems as if these
folks have backed off… for whatever reason. I don’t
plan on stopping before I can figure out a BETTER WAY to cost out gold
and silver and not the pathetic industry standard of “CASH COSTS”.
Cash costs exclude depreciation, depletion and amortization, accretion, corporate general and administrative expenses, exploration, interest, and pre-feasibility costs. How can a mining company or the industry as a whole use CASH COST figures to show the investing public true costs of mining silver? They do it to MISLEAD the public.
I have had some SilverDoctors members reply to my previous post on Alexco Resources. One member told me about another so-called extremely LOW COST SILVER PRODUCER named Dia Bras Exploration.
So, I took on the challenge and researched Dia Bras. According to their Q2 2012 report, this is what they stated for their 1H 2012 SILVER CASH COST:
Isn’t that amazing… a NEGATIVE $21.70 per ounce silver cash cost. For Pete sakes, Dia Bras should be rolling in the DOUGH… correct? I mean, they aren’t mining silver at a ZERO CASH COST… they are mining it for $21 less than FREE…LOL.
If we look at their Consolidated Balance Sheet Q2 2012, we can see that on the bottom row, they had a NEGATIVE $6.7 million net income loss for the first half of 2012. How in the living blazes can a company state a negative $21 cash cost and lose money? (more)
Cash costs exclude depreciation, depletion and amortization, accretion, corporate general and administrative expenses, exploration, interest, and pre-feasibility costs. How can a mining company or the industry as a whole use CASH COST figures to show the investing public true costs of mining silver? They do it to MISLEAD the public.
I have had some SilverDoctors members reply to my previous post on Alexco Resources. One member told me about another so-called extremely LOW COST SILVER PRODUCER named Dia Bras Exploration.
So, I took on the challenge and researched Dia Bras. According to their Q2 2012 report, this is what they stated for their 1H 2012 SILVER CASH COST:
Isn’t that amazing… a NEGATIVE $21.70 per ounce silver cash cost. For Pete sakes, Dia Bras should be rolling in the DOUGH… correct? I mean, they aren’t mining silver at a ZERO CASH COST… they are mining it for $21 less than FREE…LOL.
If we look at their Consolidated Balance Sheet Q2 2012, we can see that on the bottom row, they had a NEGATIVE $6.7 million net income loss for the first half of 2012. How in the living blazes can a company state a negative $21 cash cost and lose money? (more)
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