Thursday, Silver Standard Resources Inc. (SSO.TO, SSRI) reported a net loss for the first quarter, compared to profit last year, absent a gain recorded in the prior year period on sale of silver bullion offset by financing costs and investment write downs. Effective January 1, the company adopted the U.S. dollar as its reporting currency.
Net loss for the quarter was $2.6 million or $0.04 per share compared to net income of $2.3 million or $0.04 per share in the same period last year.
During the quarter the company incurred $18.4 million for construction, $14.6 million for pre-operating costs and $2.6 million for mining equipment at the Pirquitas Mine. Silver Standard said it also incurred exploration and other development expenditures of $1.4 million at the Pitarrilla Project in Mexico; $0.8 million at the San Luis Project in Peru, and $0.3 million for exploration at the Diablillos Project in Argentina.
The company said at its Pirquitas mine, currently silver concentrate is now being produced and stockpiled for shipment in May. At current metal prices, the silver and tin concentrates account for over 95% of the anticipated revenue from the mine. As a result, the silver circuit will be optimized first, followed by the tin circuit, the company noted.
With production ramping up through the second quarter of 2009, Pirquitas mine is expected to produce about six million ounces of silver in 2009 and achieve full production in 2010 of about 10 million ounces of silver. As of March 31, 2009, the company had expended $213.2 million in construction costs of the total estimated $230 million.
At San Luis, Ancash, Peru a feasibility study on placing the project into production is underway and is expect to be completed in the second quarter of 2009. At Pitarrilla, Durango, Mexico, which is 100% owned by Silver Standard, project resources total 159.9 million ounces of measured silver, 483.7 million ounces of indicated silver and 82.3 million ounces of inferred silver resources,
At Diablillos, Salta, Argentina inferred resource is 93.8 million ounces of silver resources and 815 thousands ounces of gold resources. Dependent on the results of the resource estimate the company will advance a pre-feasibility study on the economics of developing the Diablillos project.
Silver Standard said at Snowfield, British Columbia, Canada a geological review is underway to assess the potential for expanding the mineralization and the company's adjacent Sulphurets project. At least 20 thousands meters of follow-up drilling is planned for 2009.
San Agustin, Durango, Mexico hosts indicated gold resources totaling 1.59 million ounces and silver resources of 47.9 million ounces; and inferred gold resources totaling 1.06 million ounces and silver resources of 37.0 million ounces. A geological review is underway, with additional drilling planned.
SSO.TO rose C$0.27 or 1.16% and closed Thursday's regular trading session at C$23.45. SSRI declined $0.04 or 0.20% and closed at $19.89. After hours, SSRI rose $0.11 or 0.55% and traded at $20.00.
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