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« Silver Wheaton Corporation Call Options Up 54.20% | Main | Endeavour Silver Corporation Up 4.23% Today »
Tuesday
Apr202010

Silver Standard Reports 4th Quarter and Year-End 2009 Results

SSRI logo.jpg


Just in case you missed this communique from Silver Standard Resources Incorporated (SSRI) we have pulled out a few snippets from their latest release


Pirquitas Mine

Pirquitas produced 1.1 million ounces during the year. Since December 1, 2009, the date of achievement of commercial production, the mine produced to year-end 545,600 ounces of silver at a cash production cost of $8.99 per silver ounce(1). Total cash costs, including transportation, treatment, refining, export taxes and royalties, were $16.57 per silver ounce(1). During the month, the company sold 460,100 ounces of silver at a realized price of $17.49 per ounce(1) and, after deducting treatment and refining charges, recorded revenues of $5.4 million.

Financial Results

(All figures are in US dollars unless otherwise noted)

-- Silver Standard recorded a net loss of $9.1 million or $0.13 per share
for the three months ended December 31, 2009, compared to a net loss of
$14.3 million or $0.23 per share for the same period in the prior year.
Silver Standard recorded a net loss of $13.2 million or $0.19 per share
for the year ended December 31, 2009, compared to a loss of $5.9 million
or $0.09 per share in 2008.

-- For the three months ended December 31, 2009, capital expenditures at
the Pirquitas property in Argentina totalled $21.2 million including
$20.4 million for construction and mining equipment and $0.8 million
for project development costs. Mineral property expenditures totalled
$0.8 million at Pitarrilla in Mexico, $1.7 million at the San Luis
Project in Peru, and $0.3 million at the Diablillos property in
Argentina.

(1) Cash production cost per ounce and cash operating cost per ounce are
Non-GAAP measures discussed under non-GAAP financial performance
measures contained in the MD&A for the year ended December 31, 2009.

-- For the year ended December 31, 2009, capital expenditures at the
Pirquitas property in Argentina totalled $90.5 million for construction
and mining equipment and $50.1 million in development costs (project to
date of $255 million for construction and mining equipment and $79
million in development costs). Mineral property expenditures for the
year were $4.3 million at Pitarrilla; $10.3 million at the Snowfield and
Brucejack Projects in Canada; $5.4 million at the San Luis Project; and
$1.7 million at the Diablillos Project.

-- Cash and cash equivalents at December 31, 2009 were $26.7 million
compared to $72.0 million at 2008. Working capital at December 31, 2009
was $24.5 million compared to $41.5 million at December 31, 2008.

-- In November 2009, the company sold its MAV II Class A-1 and A-2 Notes
received following the restructuring of the Canadian asset-backed
commercial paper market for cash proceeds of $20.1 million.

-- In February 2010, the company completed a public offering of 6,728,755
common shares (including a partial exercise of an over-allotment option)
at $17.00 per share, for net proceeds of approximately $107.8 million
after commissions and estimated expenses.

-- In February 2010, the company sold its 100% interest in the Silvertip
Project to Silvercorp Metals Inc. Silver Standard received a total
consideration of $14.25 million for an estimated after-tax gain of $12.1
million. The sale of the Silvertip Project is part of the ongoing
rationalization of Silver Standard's portfolio of non-core assets.

To read the article in full please click here.


We will continue to hold our position in this stock and monitor future developments before deciding which way to jump.

Silver Standard Resources Incorporated trades on the NASDAQ under the symbol of SSRI and on the TSX under the symbol of SSO.

As a suggestion for those who do want leverage to the precious metals bull, the gold and silver funds together with the careful application of options trades could be a possible solution for you. This way we are exposed to any movement in gold prices which in turn is magnified by the effect of the option. Do remember that loses are also magnified in the same way so its not a strategy for the faint hearted. On the other hand the quality stocks are not performing as anticipated and a non-producing junior stock is a shot in the dark, however, its your money and its your call.

Got a comment then please add it to this article, all opinions are welcome and appreciated.


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Got a comment then please add it to this article, all opinions are welcome and appreciated.





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Reader Comments (1)

Seems a huge amount of expenditure at quite a high cost . Still losing money. So do they have sufficient silver in the ground to justify this and will it bring significant results ? Maybe there is better value elsewhere

April 20, 2010 | Unregistered Commentersilver bug

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