Silver Standard Resources (NASDAQ:SSRM) Announces Quarterly Earnings Results, Beats Expectations By $0.01 EPS

Key Points

• SSR Mining reported quarterly EPS of $0.64, beating consensus by $0.01; revenue was $448 million and free cash flow before working-capital changes was about $111 million.
• Full-year all-in sustaining costs are expected to run about 10% above the top of guidance, reflecting mine-plan changes and higher royalties, fuel, labor and consumable costs; expiring diesel hedges may add further cost pressure.
• Production remains on track for full-year guidance, and the expanded Marigold mine plan increases estimated production by more than 50% and extends reserve life to 20 years. The company also reported $1.6 billion in cash, no debt and $2.2 billion in total liquidity.

Silver Standard Resources (NASDAQ:SSRM - Get Free Report) TSE: SSO issued its quarterly earnings results on Tuesday. The basic materials company reported $0.64 EPS for the quarter, beating the consensus estimate of $0.63 by $0.01, Zacks reports. Silver Standard Resources had a return on equity of 16.17% and a net margin of 12.30%.

Here are the key takeaways from Silver Standard Resources' conference call:

• Full-year all-in sustaining costs are now expected to be about 10% above the top end of guidance, driven by Puna mine-plan changes, higher royalties, diesel, labor and consumable costs. Expiring diesel hedges could add another $100–$150 per ounce to consolidated AISC at current prices.
• Production remains on track for full-year guidance, with a particularly strong fourth quarter expected at Marigold. Higher solution-flow capacity, existing leach-pad inventory and planned inventory drawdown are expected to support Marigold’s Q4 output.
• The updated Marigold mine plan increased total production by more than 50% and extended reserve life to 20 years, with average annual production above 200,000 ounces through 2040. The planned Buffalo Valley development is expected to begin in 2027, with first production targeted for 2029.
• SSR Mining reported a strong liquidity position with approximately $1.6 billion in cash, no debt and $2.2 billion of total liquidity, while returning more than $530 million through share repurchases and dividends during the first nine months. The company expects to close its Roxmore Resources acquisition by year-end, adding the adjacent Converse project to its U.S. growth platform.
• Third-quarter revenue was $448 million, adjusted EPS was $0.64 and free cash flow before working-capital changes was approximately $111 million. Results included a $43.5 million after-tax, non-cash reclamation charge related to Puna water management and tailings storage, which was excluded from adjusted earnings.

Silver Standard Resources Trading Down 2.2%

Shares of NASDAQ:SSRM traded down $0.58 on Tuesday, hitting $26.16. The company had a trading volume of 1,956,619 shares, compared to its average volume of 3,313,506. Silver Standard Resources has a 1-year low of $18.19 and a 1-year high of $39.44. The stock has a market cap of $5.27 billion, a price-to-earnings ratio of 23.78, a P/E/G ratio of 6.27 and a beta of -0.10. The stock has a 50 day moving average price of $34.16 and a 200 day moving average price of $30.30.

Analysts Set New Price Targets

Several research firms have recently commented on SSRM. UBS Group cut their price objective on Silver Standard Resources from $41.00 to $39.00 and set a "buy" rating for the company in a report on Wednesday, October 14th. Royal Bank Of Canada boosted their target price on shares of Silver Standard Resources from $39.00 to $43.00 and gave the stock an "outperform" rating in a report on Wednesday, September 16th. Zacks Research cut shares of Silver Standard Resources from a "hold" rating to a "strong sell" rating in a research note on Monday, October 19th. Canadian Imperial Bank of Commerce lifted their price objective on shares of Silver Standard Resources from $48.00 to $50.00 and gave the company an "outperformer" rating in a research report on Monday, October 5th. Finally, Wall Street Zen downgraded shares of Silver Standard Resources from a "buy" rating to a "hold" rating in a research report on Saturday, October 17th. One research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, one has given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $42.60.

Silver Standard Resources Company Profile

Silver Standard Resources, now known as SSR Mining Inc NASDAQ: SSRM, is a precious metals mining company focused primarily on the exploration, development and production of gold and silver. The company's operations have included open-pit and underground mines, processing facilities and exploration properties in the Americas and Türkiye.

SSR Mining has historically operated the Marigold gold mine in Nevada, the Seabee gold operation in Saskatchewan, Canada, and the Puna silver-lead-zinc complex in Jujuy, Argentina.

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