Silver Standard Resources Inc. (
) said Monday its fourth-quarter profit plunged 99.3 percent from
the year-earlier period as the silver miner extracted less silver
than a year ago and saw labor and equipment replacement costs
The Vancouver-based company earned $2.6 million, or 3
cents per share, for the quarter ended Dec. 31, compared with
$361.6 million, or $4.56 per share in the fourth quarter of
The results, however, did beat analyst expectations for a
loss of 12 cents per share.
Revenue was $14.4 million for the quarter, down from
$45.1 million a year ago, as the company extracted considerably
less silver from its main mine in Argentina -- 1.75 million
ounces versus 2.01 million a year ago. Cash costs per ounce
increased to $17.72 per ounce, from $16.07 per ounce in the
comparable 2010 quarter.
In a statement announcing the earnings, the company focused on
the more positive yearly, rather than the quarterly, results. Net
earnings were down to $80.1 million, or $1.00 per share, for
2011, when compared to $338.5 million, or $4.34 per share, in
But revenue climbed, up 31.6 percent to $147.8 million, from
$112.3 million in 2010.
Silver production was up 12 percent for the year to 7.06
million ounces in 2011 from 6.3 million ounces the year
That discrepancy between revenue growth and earnings decrease
was due to a substantial spike in costs. Total cash cost in 2011
were $20.93 per ounce of silver, compared to $18.03 per ounce of
silver in 2010.
"2011 was a significant year in building the foundation for
the future," John Smith, CEO of Silver Standard, said in a
statement. "At Pirquitas, we resolved the technical issues and
the focus going forward is on producing consistently, managing
costs and extending the mine life."
The company also noted it would be adopting a provision meant
to deflect hostile takeover attempts, subject to approval at the
next annual shareholders' meeting.
Shares of Silver Standard Resources, Inc., which were up a
stunning 8.9 percent during early-morning trading in the North
American electronic market, surrendered nearly all intra-day
gains by midday before dipping into negative territory, and were
recently down 6 cents to $15.44. The reference silver futures
contract to which most miners track, for May delivery, was down
1.76 percent for the day.