Silver Standard Tops Estimates
SILVER STD RES (SSRI): Free Stock Analysis
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Silver Standard Resources Inc.
) second quarter fiscal 2012 earnings were 43 cents per share
compared with 57 cents per share in the year-ago quarter. The
results comfortably surpassed the Zacks Consensus Estimate of 2
cents per share.
Total revenues improved 10% year over year to $42.4 million in the
quarter, beating the Zacks Consensus Estimate of $37 million. The
company sold 1.9 million ounces of silver in the quarter while zinc
sales amounted to 1.8 million pounds.
Cost of sales was $35.7 million in the quarter compared with $31.4
million in the year-ago quarter. Income from mine operations
dropped 57.3% year over year to $6.8 million.
General and administrative expenses were $6.7 million compared with
$7 million in the year-ago quarter. Operating loss in the quarter
amounted to $2.3 million compared with operating income of $6.2
million in the year-ago quarter.
Mine Production Details
Silver produced at the Pirquitas mine remained flat year over year
at 2 million ounces. Zinc production was 1.8 million pounds,
declining 45% sequentially due to the company's focus on mining on
the southern side of the pit containing lower amount of zinc ore.
During the second quarter, 386,000 tons of ore were processed at an
average milling rate of 4,246 tons per day compared with 95,000
tons at an average of 3,241 tons per day in the second quarter of
Ore milled contained an average silver grade of 219 g/t compared
with 261 g/t in the year-ago comparable period. Silver recoveries
were 74.5% versus 80% in the year-ago quarter.
Cash and cash equivalents amounted to $351.8 million as of June 30,
2012, compared with $329.1 million as of December 31, 2011. Cash
provided by operating activities was $11.6 million for the three
months ended June 30, 2012, compared with $7 million for the three
months ended June 30, 2011.
The company expects to produce between 8.2 and 8.5 million ounces
of silver. Direct mining costs are expected to lie within $11.85
and $12.85 per ounce of silver in 2012. The company anticipates
producing zinc in the range of 10.5 to 11.5 million pounds in 2012.
Capital expenditure at the Pirquitas mine has been projected at $6
million for the second half and $18 million for 2012. The company
expects that expenses related to exploration will be $16 million
for the second half and $22 million for 2012.
Silver Standard retains a short-term Zacks #3 Rank (Hold).