Silver Standard Resources Inc. (TSX:SSO,NASDAQ:SSRI) released its consolidated financial results for the third quarter of 2015, commenting that its Marigold mine produced 41,262 ounces of gold, while its Pirquitas mine put out 2.6 million ounces of silver.
Silver Standard Resources Inc. (TSX:SSO,NASDAQ:SSRI) released its consolidated financial results for the third quarter of 2015, commenting that its Marigold mine produced 41,262 ounces of gold, while its Pirquitas mine put out 2.6 million ounces of silver. That amounts to total silver equivalent production of 5.6 million ounces.
The company incurred a net loss of $59.4 million, or $0.74 per share, “mainly due to the recognition of a non-cash, pre-tax impairment charge and write-downs of $42.2 million related to the Pirquitas mine.” Its adjusted net loss came in at $10.1 million, or $0.13 per share.
Other Q3 highlights are as follows:
- Continued trend of low gold cash costs: Reported $719 per payable ounce of gold sold at the Marigold mine.
- Silver cash costs in line with expectations: Reported $11.02 per payable ounce of silver sold at the Pirquitas mine.
- Strengthened corporate liquidity: Entered into a $75 million, three-year senior secured revolving credit facility and maintained a cash balance of $200 million.
- Continued exploration success at Marigold: Reported the discovery of two new gold mineralized zones, the HideOut area and the 8D area.
- Completed the acquisition of the Valmy Property: Acquired 2,844 hectare land package contiguous with the Marigold mine for $11.5 million in cash.
- Pursuing opportunity to extend operating life at the Pirquitas mine: Signed an agreement with Golden Arrow Resources Corporation to explore and evaluate the Chinchillas project, located approximately 30 kilometers from the Pirquitas mine.
- Recorded impairment charge at Pirquitas: Non-cash, pre-tax impairment charge and write-downs of $42.2 million related to Pirquitas were recognized due to a decline in silver prices, including $7.7 million related to ore stockpiles within cost of sales and income from mine operations.
Paul Benson, president and CEO of Silver Standard, commented:
This was a solid quarter with both mines performing to plan in terms of production and cash costs. Importantly, we have set up the mines, particularly Marigold, for a strong fourth quarter and are well on track to achieve our guidance metrics at both. This, along with our strong balance sheet, with over$300 million in cash and marketable securities, and added liquidity through our revolving credit facility, enables us to pursue growth opportunities and continue creating shareholder value.