You bring up a good point, and I suspect that Autlan is taking a middle to long term view that silver will continue to climb much higher.  You never get a straight answer from AUMN, but I suspect that silver is moderately profitable at $20/oz. at Torreon, Mx.  

With silver at $16+, it won't take much increase to make this turn-key operation profitable for years to come.  I'm sure AUMN desperately sold the operation cheap, right before the start of a major bull market for gold/silver.  Afterall, they have high salaries to pay (sic).

All I can say is that they had better prove that shifting capital ($22MM) from ECU/Torreon to El Quevar/ Argentina provides a signifcant reward to shareholders.  Mgmt. has proven nothing since the 2011 merger and this is their final chance. 

Disclosure: I am a signifcant shareholder who has added to his position since the ill-timed offering last week.  The stock is cheap as precious metals are climbing. 

Silverbull50