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<p>[QUOTE=&quot;medoraman, post: 1618453, member: 26302&quot;]Sorry, not really following. In accounting if you have a blended output, the best way to assign common costs is by market value. However, if you are saying that lead and tin are worth more than silver, and if silver stays the same, mathematically the profit margin per ounce of silver for that mine went up, because allocated COGS will have to go down. Specific example, (making up numbers), if before for 1 ton of ore you yielded $1 in lead, $1 in tin and $1 in silver, and it cost you $2 to process that ton, you will show $.33 for each product as a profit margin. If costs stay the same, as does silver pricing, but lead and tin prices double, you will only assign $.40 as COGS for the silver as opposed to $.67, because you would weight your COGS more heavily to the lead and tin.</p><p><br /></p><p>So, it doesn&#039;t matter what they CALL such a mine, the silver is still coming out. Your costing argument is actually going the other way, the higher lead or tin goes, the MORE profitable silver becomes, and it allows the mine to remain profitable even if silver crashed to $10 an ounce.</p><p><br /></p><p>I have said this before, the higher copper or lead/tin goes, the more bearish it is possibly for silver, since there will be less &quot;costs&quot; in these ounces of silver, and higher production.[/QUOTE]</p><p><br /></p>

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