Silver Standard Resources Inc. (SSRI) has unveiled second-quarter 2013 operational update for its Pirquitas mine in Jujuy, Argentina.
The mine produced 1.9 million ounces of silver during the quarter, which was in line with what the company had expected for the quarter but declined 6.3% from the previous quarter. Lower tonnage through the mill and lower plant recoveries led to the sequential decline. Silver Standard sold 2.2 million ounces of silver at the Pirquitas mine in the second quarter. The company’s production matched its guidance for the quarter and is expected to meet its guidance for the full year.
Pirquitas mine’s production of 5.6 million pounds of zinc from zinc concentrate was the highest in any quarter in the mine’s history. Production was up 68% from the previous quarter and was attributed to higher zinc grades and plant recoveries as the company mined more of the zinc-rich Potosi area of the San Miguel open pit.
Silver Standard milled 365,000 tons of ore at the mine, down 7.8% from the first quarter of 2013 due to a planned maintenance shutdown for ball mill reline. The company progressed San Miguel Phase 2 open pit transition which will position it to process higher grade material in the second half of 2013. The company also has restructuring plans in order to reduce costs and increase production recoveries.
Vancouver, Canada-based Silver Standard Resources has assets mainly in the Americas. The company owns and operates the Pirquitas mine which is one of the largest primary silver mines in the world.
Silver Standard, which is among the leading players in the silver mining industry along with Buenaventur (BVN), Coeur d'Alene Mines (CDE) and Hecla Mining (HL), currently retains a Zacks Rank #3 (Hold). The company is expected to release its second quarter results after the closing bell on Aug 7.