I think cash costs are also being affected by inflation. I agree that they made mistakes in projecting much lower cost per ounce. We also have to realize that doing business in Canada costs more, but with those higher costs we get high jurisdiction security. In my opinion, this trade off is worth it. As the silver price rises over time, I think we will see $10 as cheap. I also think we will see a good rise in base metals prices over the next three years. It will take the rest of this year to get the mill situation under control. I look forward to the reserve estimate increases later this year.
For comparison purposes, I believe Silver Majestic's cash costs average in the $7 range with the highest mine being $10. But ... they need to hire a small, armed security force to provide a safe working environment. Mexico. Drugs. Violence.
The fact that AXU is located strictly in Canada is the main reason I own this stack over other silver producers. The residents of Keno City don't scare me like drug lords do.
BTW, I did not mean to be snarky by bringing up the NO Cash Cost issue, but it was freely bantered about by both AXU and lots of posters on this board. I still have my own Excel spreadsheets from a couple years ago, where I was estimating a share price and DID NOT include cash cost per ounce of silver.