Commodity Price SensitivityEarnings, margins and cash flows remain highly sensitive to silver and gold prices; past years swung to losses. This structural exposure makes profitability and capital plans contingent on sustained favorable metal prices, adding persistent volatility to fundamentals.
Higher Per-ounce Costs And RoyaltiesManagement's lower cutoff grade strategy and rising profit-sharing, smelting and royalty costs have increased AISC. These cost elements can persist even as prices rise, structurally limiting margin expansion and reducing the sensitivity of earnings to higher metal prices.
Jerritt Canyon Restart Execution RiskRestarting Jerritt involves material capital, long-lead underground fleet and critical infrastructure with 10–12 month lead times. The multi-year pref e asibility and restart timeline introduces execution, scheduling and funding risk that could delay or raise costs for expected production gains.