Silver Standard Incurs Net Loss of $235.9 Million for Q2 2013

Silver Standard Resources Inc. (TSX:SSO,NASDAQ:SSRI) reported its consolidated financial results for the second quarter of 2013, commenting that it incurred a net loss of $235.9 million, or $2.92 per share, down substantially from net income of $35 million, or $0.43 per share, in the year-ago quarter. However, the company is on track to reach full-year production guidance at its Pirquitas mine and made progress at its Pitarrilla project.

Other highlights include:

• Lowered 2013 cash cost guidance: Reduced 2013 cash cost guidance by 18% to between $14.00 and  $15.00 per payable ounce of silver sold and reported second quarter cash costs at Pirquitas of $13.03 per payable ounce of silver sold.
• Delivered to plan at Pirquitas:  Produced 1.9 million ounces of silver, on track to achieve improved full year production guidance of 8.3 to 8.5 million ounces of silver. Produced a record 5.6 million pounds of zinc, the highest quarterly zinc production since mine start-up.
• Sold consistently into long-term sales contracts:  Sold 2.2 million ounces of silver, generating revenue of $32.7 million.
• Advanced cost restructuring program:  Cost reduction program at Pirquitas advanced with headcount reductions of 7% to date with further reductions planned. Structured programs focusing on third party contract services and operational controls at the plant and mine have been initiated to drive efficiency and positively reposition the mine on the industry cost curve.
• Recognized impairment:  Recognized non-cash, pre-tax impairment charge and write-downs of $221.7 million related to Pirquitas, exploration projects and assets held for sale.
• Progressed Pitarrilla with pre-construction activities:  Submitted a final Environmental Impact Statement and tendered the EPCM contract. Advanced surface access rights processes and commenced formal partner and financing plan.
• Maintained strong liquidity position:  Cash balance of $435.8 million as at June 30, 2013.

John Smith, president and CEO of Silver Standard, commented:

We are focused on taking the right steps given the current market conditions, whilst preserving long-term value. This quarter, Pirquitas continued delivering to our production plan and costs are being reduced, which can be seen in our revised guidance. Although Silver Standard has a substantial cash balance, we have advanced a cost restructuring program throughout the organization aimed at real cost savings and improved operating performance. Looking ahead, Pitarrilla is a key driver of our long-term growth and continues to advance due to our solid technical capability and liquidity.

Click here to read the full Silver Standard Resources Inc. (TSX:SSO,NASDAQ:SSRI) press release.