Three of the world’s top silver-producing countries reported output shortfalls this month, none of which were triggered by price signals, according to data and corporate disclosures.
In Mexico, Endeavour Silver’s Terronera mine in Jalisco suspended operations for 12 days beginning August 12 following a community blockade. The blockade, attributed to infrastructure, health, water access and financial assistance concerns, was lifted on August 20, with production resuming three days later. The interruption deferred roughly 80,000 ounces of silver output, based on second-quarter processing rates. Terronera, which achieved commercial production in October 2025, accounted for 31% of Endeavour’s consolidated silver output in Q2 and 3.3% of global mine supply in 2025, per Metals Focus and the Silver Institute. Mexico contributes 20.4% of global silver mine production.
Peru’s metallic mining subsector contracted 2.52% year-over-year in June, with silver output declining 9.0%, according to the national statistics institute. The decline was attributed to lower tonnage and reduced ore grades, with zinc—a key by-product—falling 25.8%, nearly three times the rate of silver. Peru, the second-largest silver producer at 15.4% of global supply, primarily extracts silver as a companion metal in polymetallic operations.
In Chile, Antofagasta reduced its 2026 copper guidance by 5.2% at the midpoint after severe snowfall forced a temporary shutdown at the Los Pelambres mine. The company cited repairs to pipeline platforms and water management systems, with operations resuming and ramping up. Silver, a minor by-product at Los Pelambres, accounts for just 3% of group revenue, while copper represents 77%. Silver’s role in cost reduction is more prominent, as rising silver prices contribute to lower net cash costs for copper production.
The combined impact of these disruptions totals approximately 1.1 million ounces, including 980,000 ounces from Peru’s monthly-equivalent decline and 80,000 ounces from Terronera. This represents 2.3% of the 46.3 million-ounce supply deficit forecast for 2026 by Metals Focus and the Silver Institute, marking the sixth consecutive year of projected shortfall. The analysis suggests that supply decisions are increasingly driven by the economics of primary metals rather than silver itself, with by-product dynamics dominating production planning.
Silver was trading at $68.70 per ounce on Thursday, up 77% year-over-year but still 44% below its January 29 intraday high of $123.30. The metal’s price momentum has not translated into supply responses from major producers, reinforcing the structural shift in silver supply dynamics.
