Silver Standard Resources Inc.
SSRM
delivered fourth-quarter 2020 adjusted earnings per share of 50 cents, which missed the Zacks Consensus Estimate of 56 cents. The bottom-line figure, nevertheless, soared 163% from the 19 cents reported in the prior-year quarter. Increase in gold equivalents sold, higher average realized prices for gold and silver, and lower costs drove earnings growth in the quarter.
Including one-time items, earnings came in at 41 cents per share compared with the prior-year quarter’s 16 cents.
Silver Standard Resources Inc. Price, Consensus and EPS Surprise
Silver Standard Resources Inc. price-consensus-eps-surprise-chart
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Silver Standard Resources Inc. Quote
Operational Update
Silver Standard’s total revenues surged 108.4% year over year to $371 million during the fourth quarter. The top-line figure, however, missed the Zacks Consensus Estimate of $410 million.
Gold equivalent produced shot up 107.5% year on year to 220,432 ounces in the reported quarter. Gold equivalents sold jumped 70.5% to 194,862 ounces in the quarter on a year-over-year basis.
Average realized gold price flared up 27% to $1,880 per ounce from the year-ago quarter. Average realized silver price was $24.78 per ounce in the quarter, reflecting impressive year-over-year growth of 43%.
Cash cost per gold equivalent ounce dipped 3.2% year over year to $693 in the fourth quarter. All-in sustaining costs (“AISC”) per gold equivalent ounce sold declined 10.3% to $976 in the reported quarter from the prior-year quarter’s $1,088.
Income from mine operations surged 147.4% year over year to $146.4 million during the fourth quarter. Gross margin was 40% in the December-end quarter compared with the year-earlier quarter’s 33%. Operating income was $120 million, up 179% from the year-ago quarter’s $43 million.
Financial Results
As of Dec 31, 2020, cash and cash equivalents were $860.6 million, significantly up from the $503.6 million as of Dec 30, 2019. The company generated $349 million of cash flow from operations in 2020 compared with $146 million in 2019.
Guidance
For 2021, the company expects to produce 720,000 to 800,000 gold equivalent ounces from its four operating mines. Consolidated AISC are projected between $1,050 and $1,110 per gold equivalent ounce.
Price Performance
Shares of Silver Standard have lost 18.7% over the past year as against the
industry
’s rally of 52.7%.
Zacks Rank & Stocks to Consider
Silver Standard currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the basic materials space are
Impala Platinum Holdings Limited
IMPUY
,
Fortescue Metals Group Limited
FSUGY
and
BHP Group
BHP
. While Impala sports a Zacks Rank #1, Fortescue and BHP carry a Zacks Rank #2 (Buy). You can see
the complete list of today’s Zacks #1 Rank stocks here.
Impala has an estimated earnings growth rate of a whopping 189.4% for the current fiscal year. The stock has appreciated 51.3% in a year’s time.
Fortescue has a projected earnings growth rate of 75.5% for the current fiscal year. The company’s shares have soared 134% in the past year.
BHP has an expected earnings growth rate of 59.5% for the current fiscal year. The company’s shares have gained around 28% over the past year.
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