Silver Standard: The Downside Of Record Production
- Silver Standard achieved record annual silver production in 2014.
- The company also achieved record quarterly gold production in Q4 2014.
- Increasing production when gold and silver prices are low can be viewed negatively.
- The stock still has room to run higher on a technical basis.
Update: Silver Standard Reports Solid 2014 Production And Gives 2015 GuidanceHard Asset Investments • Fri, Jan. 16
- Silver Standard just announced record annual silver and zinc production, with 8.7 million silver ounces and 30 million zinc pounds produced in the year.
- The company's Marigold mine is ramping up production as it produced 67,113 ounces in Q4, a 65.9% increase from the previous quarter.
- These results are impressive, and 2015 guidance shows cash costs should continue to fall further.
- Silver Standard reports a surprise jump in its Q4 production numbers at the Marigold gold mine in Nevada.
- This is a very nice surprise as I didn’t really expect Silver Standard to achieve this in such a short period of time.
- The investment thesis remains unchanged for now, but it’s now looking like the purchase of the Marigold project might have been a golden move by Silver Standard.
Update: Silver Standard Reports Strong Production Results
- Silver Standard Resources reported strong production at its Pirquitas Mine and better-than-expected results at its newly-acquired Marigold Project.
- 2015 production should also be very strong.
- These results exceed my expectations.
- Silver Standard continues to be an extremely well-capitalized mining company with a long list of quality assets making it extremely compelling longer-term.
- Investors should be forewarned that the company's Pirquitas Mine is in Argentina where we are seeing capital controls, and this poses a risk.
Silver Standard Is Undervalued Compared To Hecla And Pan American
- Investors are paying only 24 cents for each silver equivalent ounce in reserves & resources.
- Hecla and Pan American investors are paying more than one dollar.
- SSRI has a lower price/book ratio than Hecla and Pan American.
- SSRI's operational cash flow in Q4 should be negative.
- Silver Standard adds resources at its Marigold Project.
- This is a bullish development that I hadn't expected.
- Marigold is turning out to be a great purchase for Silver Standard, but the stock needs higher gold and silver prices to move higher.
Update: Silver Standard Adds More Ounces To The Marigold Resource Estimate
- Silver Standard’s discovery of the extension of the 8 south pit could improve the economics of the Marigold mine.
- It’s a very positive surprise to see a grade which is substantially higher than the grade which will be mined under the current mine plan.
- The Marigold acquisition seems to be paying off for Silver Standard and every ‘high’-grade ounce will increase the value.
Update: Silver Standard Expands Resource Base At Marigold Mine
- Silver Standard Resources has announced it has expanded the mineral resource base at the Marigold mine, with higher gold grade mineralization.
- While just 157,000 ounces of gold were added to resources, this gold contains grades of 1.2 and 1.41 g/t, which is higher than Marigold's average grades of .51.
- I did not expect this resource upgrade and it adds to my bullish stance on Silver Standard.
Silver Standard Resources: Marigold Will Be The Biggest Driver
- Silver Standard Resources' silver mine Pirquitas is delivering stable and predictable results.
- The life of mine plan of the company's gold mine, Marigold, looks encouraging.
- However, the mine has to keep improving costs and production fast in order to provide upside for Silver Standard Resources' shares.
Silver Standard Has Pimped Up The Marigold Mine Plan
- Silver Standard's new mine plan for Marigold might be the beginning of something beautiful.
- An increased production rate and decreased production cost should make the acquisition accretive, even at $1150 gold.
- The proof will be in eating the pudding, and the SSRI management will have to step up the plate and deliver on its promises now.
Update: Silver Standard Reports Decent Q3 Results
- Silver Standard has reported Q3 2014 financial results.
- The company reported a net loss of $14.7 million, although gold and silver production were higher than expected.
- While Silver Standard has long-term growth potential, cash costs need to come down further for the company to be profitable.
- Silver Standard Resources reported a loss, although its operating cash flow was positive.
- The company's production exceeded my expectations.
- Silver Standard is trading at depressed levels given the weak precious metals market, making it extremely compelling if you're bullish of gold and silver.
- Silver Standard will report earnings on Wednesday.
- Revenue will increase significantly due to better than expected gold and silver production.
- Q3 numbers should be okay, but Q4 is looking like a disaster so far.
- Marigold should be a cash flow machine.
- Silver Standard continues to own nearly 17-18 million shares of Pretium.
- Pretium's share price decline has resulted in many millions of dollars of paper losses for Silver Standard.
- At what price is Silver Standard willing to sell these shares?
Silver Standard Resources: Good News From Marigold
- Silver Standard Resources issues life of mine plan for Marigold mine.
- Average all-in sustaining costs for the life of mine are expected to be $986 per ounce of gold.
- All-in sustaining costs at first year of operations will be higher than expected average costs.
Update: Silver Standard Announces 83% Increase In Production At Marigold
- Silver Standard Resources has announced Q3 2014 production results, with its Marigold mine producing 40,442 ounces of gold, 83% higher than the previous quarter.
- In addition, the company announced a record 2.6 million ounces of silver produced at the Pirquitas mine, which is 25% higher than last quarter.
- This was not anticipated in my previous article and is positive news as the Marigold mine is crucial for the company.
- Silver Standard Resources released its Q3 production results which exceeded expectations.
- The company also released updated metrics for its newly acquired Marigold Mine in Nevada.
- The company's performance exceeded my expectations.
- Shares are horribly depressed as the company's silver projects need higher prices, and I think the stock is a long-term buy.
A Few Reasons Marigold Was A Good Play By Silver Standard
- Company is far more diversified now as they are now dealing with both gold and silver. Also the US is a far safer jurisdiction than Argentina.
- Argentina has been a big success to date and has slashed total Silver production costs by over 25% since 2011. The company feels they can do the same at Marigold.
- We are already seeing encouraging signs at Marigold. Guidance figures for both costing and production have been improved since the acquisition took place in April.
Silver Standard Resources Squandered A Big Opportunity
- Silver Standard Resources Soared After The News That It Purchased The Marigold Mine From Goldcorp and Barrick.
- Investors Though Were Overlooking The Negatives Of The Project And The Issues That Silver Standard Faces.
- Pirquitas, Its Flagship Silver Mine In Argentina, Is Running Out Of Mine Life.
- Pitarrilla, Its Major Project In Mexico, Is Uneconomical At Current Prices and Faces Permitting Issues.
- Silver Standard Had An Exceptional Balance Sheet Last Year Due To Its Large Cash Position, Now That Cash Position Has Dwindled.
- Revenue is increasing from its main Silver mine and production costs are decreasing - a recipe for success.
- SSRI has dropped far more than iShares Silver Trust (SLV) since silver peaked out in April 2011.
- SSRI has far more leverage as an investment compared to investing in the precious metal itself.
Wed, Jan. 14, 5:26 PM
- Silver Standard Resources (NASDAQ:SSRI) +6.3% AH after reporting Q4 production of 2.2M oz. of silver and 67.1K oz. of gold, as well as silver sales of 2.8M oz., gold sales of 68.7K oz. and zinc sales of 8.7M lbs.
- SSRI says it achieved record full-year silver (8.7M oz.) and zinc production (30M lbs.) at the Pirquitas mine in Argentina.
- SSRI forecasts FY 2015 silver production of 9M-10M oz., gold production of 160K-175K oz. and zinc production of 10M-12M.
- Says its expects 2015 exploration and development expenditures to remain at a reduced level of $15M.
Dec. 30, 2014, 4:18 PM
- With the dollar falling against the yen and pound and a minor flight to safety afoot - Treasurys are higher, stocks have closed moderately lower - COMEX gold is up 1.4% today to $1,197/oz., and COMEX silver is up 2.6% to $16.20/oz. The gains have provided a lift to the volatile/beaten-down shares of gold and silver miners.
- Notable gold gainers: IAG +11.7%. ABX +3.6%. AUY +5.2%. NEM +3.6%. GG +4.6%. AU +4.2%. SBGL +4.9%. KGC +4.1%. AGI +5%. AEM +5.1%.
- Notable silver gainers: AG +7.6%. SVM +7.1%. SSRI +6.2%. SVM +6.4%. PAAS +3.9%. SVLC +5.2%. EXK +6.9%.
- ETFs with 3%+ gains: NUGT +10.1%. GDXJ +5.1%. USLV +9.7%. UBG +5.4%. USV +3.8%. SIVR +3.4%. AGQ +6.3%. BAR +3.2%. DBS +3.2%.
- The group rallied on Friday after the PBOC relaxed lending rules for banks, but sold off on Monday.
Dec. 26, 2014, 3:34 PM
- Spurred by hopes China's efforts to relax lending rules are a sign that broader (inflation-boosting) stimulus efforts are on tap, gold and silver prices are rallying, and taking the shares of miners up with them. COMEX gold is up 1.8% to $1,194.50/oz., and COMEX silver is up 2.5% to $16.11/oz. GLD +1.7%. SLV +2.2%.
- Gold stocks: AUY +3%. GG +4.6%. AGI +4.1%. ABX +3.4%. KGC +3.7%. GFI +3.7%.
- Silver stocks: SLW +2.3%. SSRI +6.9%. PAAS +1.9%. AG +3.6%. CDE +4.1%. HL +4.2%. SVM +6.8%. EXK +5.4%. TAHO +5.3%.
- Like many other commodities names, the group was hit hard a month ago when crude prices plunged in response to OPEC's decision to leave oil production unchanged.
- ETFs: AGQ, IAU, USLV, SIVR, SGOL, ZSL, UGL, DGP, GLL, UGLD, DZZ, SLVO, GLDI, DSLV, OUNZ, DGL, DBS, DGZ, DGLD, AGOL, TBAR, USV, UBG, GLDE, BAR, GYEN, GEUR, BARS, GGBP
Dec. 12, 2014, 9:12 AM
- Silver Standard Resources (NASDAQ:SSRI) announces the addition of mineral resources at the Marigold mine in Nevada with higher gold grade mineralization.
- The resources lie within the limits of Marigold's existing plan of operations at the southern end of the 8 South pit.
- SSRI says the results of its 2014 drill program have exceeded expectations due to the gold grade encountered and the proximity to the historical 8 South pit.
Nov. 28, 2014, 1:21 PM
- Already hit hard over the last two years by declining prices, gold and silver miners saw more pain today as commodity stocks in general got hammered thanks to OPEC's decision not to slash crude production.
- Decliners: ABX -8%. GG -6.1%. AUY -9.8%. KGC -8.2%. GFI -9.9%. SLW -7%. NEM -5.8%. AGI -6.9%. PAAS -9%. AG -15.4%. SSRI -11.6%. CDE -11.4%. HL -8.8%. TAHO -7.8%.
- Previous: Precious metals slide alongside oil; Swiss vote ahead
Nov. 7, 2014, 5:35 PM
Nov. 5, 2014, 5:07 PM| Comment!
Oct. 31, 2014, 9:06 AM
Oct. 8, 2014, 9:49 AM
- Silver Standard Resources (SSRI +6.1%) says Q3 gold production at its Marigold mine in Nevada totaled 40,442 oz., up 83% Q/Q and 23% higher than company guidance of 33K oz.; as a result, SSRI says the mine is on track to exceed 2014 production guidance.
- Says its Pirquitas mine in Argentina produced a quarterly record 2.6M oz. of silver, up 25% Q/Q, and 7M lbs. of zinc; SSRI says the mine is on track to deliver full-year guidance.
Oct. 7, 2014, 5:34 PM
- Silver Standard's (NASDAQ:SSRI) updated resource and mine plan for its Marigold mine in Nevada shows a project capable of producing ~187K oz./year of gold over its remaining nine years of active mining, at all-in sustaining costs of $986/oz.
- Cowen maintains its Outperform rating on the shares, saying its updated NAV of ~$323M for the asset further confirms its position that SSRI's $275M acquisition price was a value-accretive transaction, and that Marigold will be a free cash flow-producing asset for the company going forward (Briefing.com).
Aug. 6, 2014, 5:14 PM| Comment!
May. 9, 2014, 3:41 PM
- Silver Standard (SSRI -10.6%) slides ~10% after posting a Q1 loss of $0.21/share vs. an anticipated loss of $0.13 and a $0.06 loss a year earlier, while revenues fell by nearly a third Y/Y.
- Produced 1.9M oz. of silver and 8.8M lbs. of zinc during Q1, on track to meet production guidance for the year.
- The Pirquitas mine produced 1.9M oz. of silver and 8.8M lbs. of zinc, both double-digit Q/Q declines reflecting a lower average head grade and recovery.
May. 9, 2014, 12:20 AM| Comment!
Apr. 9, 2014, 5:58 PM
- In an operations update, Silver Standard Resources (SSRI) reaffirms Q1 production guidance of 1.9M oz. of silver and 8.8M lbs. of zinc at its Pirquitas mine in Argentina, and says it is on track to meet production guidance for the year.
- Pirquitas mined 4.2M metric tons of material during the quarter, in line with budget expectations; milled 4,514 metric tons/day, 13% above nominal design.
- Operations were consistent with expectations, SSRI says, as Q1 typically is a below average quarter at the site due to impacts of the rainy season.
Mar. 25, 2014, 11:39 AM
- Silver prices below $20/oz. should worry some investors, as several miners may need to adjust their plans if spot prices weaken further, Dundee's Chris Lichtenheldt says as he breaks down how specific companies will be impacted.
- The analyst says Coeur Mining (CDE) is an ideal sell or short candidate, Endeavour Silver (EXK) is essentially breakeven at $19 silver, and Silver Standard (SSRI) has been a top performer YTD but is a high-cost operator.
- As for Dundee's potential winners: Tahoe Resources (TAHO) is a low-cost operator with a best-in-class asset, Silver Wheaton's (SLW) balance sheet is solid above $15 silver, and Pan American Silver's (PAAS) strong balance sheet should provide a cushion as higher-cost operations have improved.
- ETFs: SIL, SLVP, SILJ
Mar. 17, 2014, 5:50 PM
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