logo
  Join        Login             Stock Quote

Silver Standard Resources: 2013 Shaping Up Much Better Than 2012

 January 11, 2013 10:11 AM
 


(By Mani) For Silver Standard Resources, Inc. (NASDAQ: SSRI) (TSE:SSO), 2013 would be a better year as it is set to reap benefits from an extensive portfolio of silver development projects which are now starting to receive attention as permitting successes are achieved.

Silver Standard Resources is an exploration and development company focused on silver projects in the Americas. The company's sole producing asset is the Pirquitas Mine in Argentina. Of greater value, however, is the very large Pitarrilla project in Mexico that is expected to be developed in a few years.

Pirquitas has had a rough commissioning period. Product sales for its concentrates have now been resolved, and mining is starting to deliver regular output of silver. During 2012, the Pirquitas mine produced a record 8.6 million ounces of silver.

[Related -Futures Rise As China Concerns Subside; Synaptics, Inc. (SYNA) Climbs]

The mine produced 2.3 million ounces of silver during the fourth quarter, 4.9 percent quarter-on-quarter improvement reflecting higher average silver recoveries in the plant and higher mill throughput. The mine also produced 3.2 million pounds of zinc in the fourth quarter, bringing total zinc production to 11.2 million pounds for the year, near the high-end of the 2012 zinc production guidance range.

Meanwhile, San Luis is likely to be the second mine for the company as initial permits have been granted and social licensing is now being conducted.

The key development project for the company, however, is Pitarilla, which contains over 700 million ounces of silver. Feasibility work was completed in late 2012, and its leverage could attract renewed investor interest.

[Related -Why It Pays To Think Like A Contrarian]

The feasibility study defined a mine with approximately 480 million ounces of reserves and produced 15 million ounces of silver per year on average during the first 18 years of a 32-year project.

The company carries a high degree of country risk although Pitarilla could lower that political risk profile.

For 2013, Silver Standard sees to produce and sell 8.2 to 8.5 million ounces of silver and produce over 20 million pounds of zinc at the cash cost of between $17.00 and $18.50 per silver ounce.

Silver Standard plans to spend approximately $15 million on exploration in 2013. Of this, approximately $7 million is budgeted for exploration at our Mexican projects, with the balance mainly budgeted for Argentina and Peru.

The company expects to spend a minimum of $17 million on development in 2013. Of this, about $8 million and $7 million will be incurred at the Pitarrilla and San Luis projects, respectively, to advance these projects to construction decisions.
iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageGold Slides On Perfect Storm For Dollar

For all the anticipation surrounding the delivery of the Fed’s statement in the run-up to the September read on...

article imageForward Guidance Now A Nightmare For Fed.

Janet Yellen is probably sorry Ben Bernanke ever embarked on his program of the Fed providing read on...

article imageThis Once-Broken Social Media Stock Is Back On The Warpath

In the brief history of social media stocks, history is repeating itself. Both Facebook (NASDAQ: FB) and read on...

article imageItalian Workers Were Too Productive For 20 Years

The 2008 crisis has resulted in significant downward revisions of potential growth for most advanced read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.