christopher barker writes that pan american silver's all-in cost of production of silver is $9.53/oz, so even a large primary silver producer can't make a profit in these markets:

If these metal prices persist, I believe announcements like these will become the status quo … eventually bolstering prices by virtue of worldwide project delays and cancellations. In the meantime, Agnico-Eagle Mines (NYSE: AEM) CFO David Garofalo sees bankruptcies among many junior miners as "inevitable." Even the once-mighty Teck Cominco (NYSE: TCK) is engulfed in uncertainty, as lower metal prices call its ability to repay debt into question. Among silver seekers, both Hecla Mining (NYSE: HL) and Coeur d'Alene Mines (NYSE: CDE) have retreated more than 88% from their 2008 peaks. Even the low-cost, fixed-cost business model of Silver Wheaton (NYSE: SLW) provided no shelter from these market conditions.

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