I guess SFMI’s profit estimates (p:21 of updated history) of $655/ton looks pretty darn good compared to the biggest in the industry below.

The silver price is currently $12.73/ounce. Most silver and gold producers report cash costs which are significantly below current metal prices, but these cash costs do not represent the true cost of extracting and refining these metals. Below is a table of three of the silver majors and one junior. This table shows the true mining cost of the silver for each of these companies.

*Couer did not state a profit or loss amount but used GAPP accounting. The loss is my estimate based on cash and security drawdowns, capital expenditures, and financings.

Please note that the true silver production cost for each of these companies is above the current silver price. Not only that, but other than Pan American, the true production price is significantly above the current silver price. When things are going well, most large manufacturers have a profit margin of about 20%. If we say that the true silver production cost is $18 per ounce, then the silver cash market price should be $21.60/ounce. This is a 70% premium to the current price.
Regards,
Bryant

COMEX Warehouse Stocks April 14, 2009

The outflow of silver continues……

SILVER

ZERO ozs withdrawn from the dealer’s inventory.
262,356 ozs withdrawn from the customer inventory
Total dealer inventory 62.96 Mozs
Total customer inventory 52.71 Mozs
Combined Total 115.67 MOZ