Silver Standard Resources Inc.
) has reported fourth-quarter and full-year 2013 operational
update for its Pirquitas mine in Jujuy, Argentina. It has also
provided production and cost guidance for 2014.
The mine produced 8.2 million ounces of silver in 2013, down 4.6%
year over year from 8.6 million ounces produced in 2012. The
decline was mainly due to more oxidized and transitional ore in
the mill feed. In the fourth quarter, the mine produced 2.3
million ounces of silver, 12.5% higher than the previous quarter.
Higher average head grade and mill throughput led to the
sequential increase in silver production in the quarter.
Silver Standard sold 2.5 million ounces of silver at the
Pirquitas mine in the fourth quarter of 2013 and 8.7 million
ounces of silver in 2013.
Pirquitas mine's production of 10.3 million pounds of zinc in
zinc concentrate in the fourth quarter was the highest in any
quarter in the mine's history. Production was up roughly 31.8%
from the previous quarter. The mine produced record 27 million
pounds of zinc in zinc concentrate. The results reflected higher
zinc grades and improved plant mine recoveries, as the company
mined more of the zinc-rich Potosi area of the San Miguel open
Silver Standard milled 420,000 tons of ore at the mine, up 6.6%
from the third quarter of 2013. Average rate of ore milled was
4,567 tons per day which is 14.2% above the mill's nominal
The mine's ore milled an average silver grade of 228 g/t,
compared to 215 g/t reported in the previous quarter, as the
company progressed with completion of the San Miguel Phase 2 open
pit transition. Silver recovery averaged 75% in 2013.
Silver Standard expects to produce and sell 8.2 million to 8.6
million ounces of silver and 25 million to 30 million pounds of
zinc in 2014. The company further expects the cash costs to be
between $12.50 and $13.50 per payable ounce of silver sold in
Capital expenditures at the Pirquitas mine are expected to be $15
million including $6 million for tailings facility expansions.
Exploration and development expenditures are expected to be $22
million including $8.5 million for Mexican projects, $7.5 million
for Peru projects and $6 million for Argentina, Canada and the
Vancouver, Canada-based Silver Standard Resources has assets
mainly in the Americas. The company owns and operates the
Pirquitas mine, which is one of the largest primary silver mines
in the world.
Silver Standard retains a Zacks Rank #3 (Hold).
Other companies in the silver mining industry with favorable
Zacks Rank are
Alexco Resource Corp.
Coeur Mining, Inc.
). While Alexco Resource holds a Zacks Rank #1 (Strong Buy),
Coeur Mining and Hecla Mining retain a Zacks Rank #2 (Buy).
ALEXCO RESOURCE (AXU): Free Stock Analysis
COEUR DALENE MI (CDE): Free Stock Analysis
HECLA MINING (HL): Free Stock Analysis Report
SILVER STD RES (SSRI): Free Stock Analysis
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