On Tuesday, Silver Standard Resources (NASDAQ:SSRI) announced its intention to purchase the Marigold mine from Barrick Gold (NYSE:ABX) and Goldcorp (NYSE:GG) for $275 million.
This deal radically changes Silver Standard's portfolio and it alters my previous investment thesis.
In August I argued that Silver Standard Resources was among the best ways for investors to buy inexpensive in-ground silver. If you backed out the cash, you could basically buy silver reserves for $0.20/ounce. Much of this silver isn't economical to mine at the current silver price, but for investors who thought the price of silver would rise substantially, Silver Standard shares offered more leverage than virtually any other primary silver mining company.
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