Provided MKR are doing over 100K ounces per month now they should still be fine even with the very inflated diesel costs feeding into all the miners in Aus. I expect a couple of gold/silver developers to continue falling extensively without any further positive global news, people that aren't actually producing something will likely face some tough times soon and if you have any shares in such companies it may be some tough decisions you have to make soon. Planning to become a miner with hundreds of millions of outlay in the worst great depression isn't going to be savory. MKR should be fine even with things as they are now, tight but fine, and if gold/silver continue to improve in the next weeks like I expect then it will make a very good place to be.
If you remember I already calculated a higher diesel cost to get a breakpoint of about $27 AUD an ounce and silver is is currently still around $30.64 AUD an ounce. Of course with the MKR overheads that don't make much sense to me, but that do exist, they still need to make around 100K ounces of silver per month to break even. Which they didn't reach in may but they say they will reach far beyond in June and July.
There are a couple of things that don't make sense to me in regards to the global data when it comes to oil. The best way the west could impact Russia is with a drop in oil prices as it makes up nearly 50% of their exports, but the opposite is occurring. The only scenario it makes sense in is one which many would likely call a conspiracy theory and relates to "types of oil" and shortages in that regard. All oil isn't the same and refineries are having issues sourcing the right types of oil, I've known about this for 6 months or so. But I only give this a 15% likelihood as the reason for the prices. It reeks of manipulation, potentially to induce European users of Russian oil have to make some tough decisions they didn't want to before.
As all economies decline in the next months due to the forced economic collapse oil should drop significantly in price. But we could be expecting $150 in a week or two and a collapse to <$100 in as many weeks.
Fun times, I hope everyone is wearing their big boy pants.
