Silver Standard Reports First Quarter 2012 Financial Results
VANCOUVER — Silver Standard Resources Inc. reports consolidated financial results for the first quarter ended March 31, 2012. Silver Standard has the largest in-ground silver resource of any publicly-traded primary silver company, with a pipeline of 15 projects ranging from grassroots exploration to production in Argentina, Peru, Mexico, Canada, Chile, and the United States.
“One of our goals in 2012 is to demonstrate strong quarter-on-quarter performance at the Pirquitas mine. Record production and stable mine cost performance in the first quarter provides a strong start to build on for the rest of the year,” said John Smith, President and CEO. “The Pitarrilla feasibility study is progressing well and will be presented to the Board in the second half of 2012. With the recent proceeds from the exercised Pretium warrants, Silver Standard is financially strong to develop our substantial project portfolio and continue aggressive exploration.”
First Quarter 2012 Highlights:
(All figures are in U.S. dollars unless otherwise noted)
- Record production of 2.2 million ounces of silver, a 24% quarter-on-quarter increase.
- Lowered direct mining costs to $11.86 per ounce of silver produced, a 21% quarter-on-quarter improvement.
- Operated the debottlenecked plant at an average of 4,567 tonnes per day throughput, a rate 14% above nominal design.
- Recorded revenues of $38.4 million on the sale of 1.5 million ounces of silver and 1.8 million pounds of zinc.
- Entered into two long-term silver concentrate sales contracts with smelters for 60% of monthly production commencing April 2012.
Pirquitas Mine, Argentina
Summary Mine Operating Statistics (1)
|Total Material Mined||Kt||4,297||4,640||4,185||4,483||4,172|
|Silver Mill Feed Grade||g/tonne||221||274||250||261||233|
|Silver Produced||’000 oz.||2,172||1,751||1,631||1,976||1,697|
|Direct Mining Cost||US$/oz.||$11.86||$14.97||$16.20||$11.57||$12.26|
|Total Cash Cost||US$/oz.||$20.30||$17.72||$20.60||$22.06||$23.23|
- The Company reports non-GAAP cost per ounce of silver produced to manage and evaluate operating performance at the Pirquitas mine. For a better understanding and a reconciliation of these measures to cost of inventory, as shown in the Company’s consolidated interim statement of income please refer to ‘Non-GAAP Financial Measures’ in item 13 of the MD&A.
The Pirquitas mine recorded its highest quarterly production of 2.2 million ounces of silver during the first quarter of 2012. This is compared with silver production of 1.8 million ounces in the fourth quarter of 2011 and 1.7 million ounces in the first quarter of 2011. The mine also produced 3.3 million pounds of zinc in the first quarter of 2012 compared to 0.8 million pounds in the fourth quarter of 2011 and 3.2 million pounds in the first quarter of 2011.
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