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<p>[QUOTE=&quot;medoraman, post: 1600806, member: 26302&quot;]This gets into the complicated issue of byproduct credit and accounting for mixed outputs. Bottom line is you will probably get different answers at every mine since each of them will account for these issues slightly differently, and all will be GAAP since there is no specific method that must be used. </p><p><br /></p><p>I am lost how you believe higher silver would increase cost of production. All higher metal prices will do will be to encourage further production. YES, on the new parts of the mine they may have higher costs, but the issue is sunk costs. Once they decide to expand the money they spend to expand can never be recovered. So yes, PM can drop below their total costs and they will still mine, since some of those costs are now lost, and as long as they make more money mining than their variable costs are, they are still making money incrementally.[/QUOTE]</p><p><br /></p>

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