VANCOUVER, Feb. 23, 2017 /CNW/ - Silver Standard Resources
Inc. (NASDAQ: SSRI) (TSX: SSO) ("Silver Standard") reports
consolidated financial results for the fourth quarter and year
ended December 31, 2016.
Paul Benson, President and CEO
said, "We had a strong fourth quarter capping a year of records for
Silver Standard, which included production of over 390,000 gold
equivalent ounces at an AISC of less than $925 per ounce. Our focus on Operational
Excellence has led not only to production and cost improvements at
each site, it has allowed us to meet or exceed our annual guidance
for the fifth straight year."
"Importantly, we entered 2017 in a very strong position with
over $325 million in cash and an
additional $150 million in marketable
securities, which predominantly reflects our near 10% stake in
Pretium Resources. Last year, we continued to invest in our
business, particularly with respect to exploration, and the success
in growing reserves at both Marigold and Seabee is driving our
increased brownfields exploration in 2017."
Fourth Quarter and Year-End 2016 Highlights:
(All
figures are in U.S. dollars unless otherwise noted)
- Strong financial performance: Generated cash from
operations of $170.7 million in 2016
and increased our cash position by $115.3
million to $327.1 million. Generated net earnings of
$65.0 million or $0.63 per share and adjusted net earnings of
$100.3 million or $0.97 per share. Quarterly cash from operations
of $74.1 million, net earnings of
$12.1 million or $0.10 per share and adjusted net earnings of
$30.8 million or $0.26 per share.
- Delivered on scale and margin: Record production of
393,325 gold equivalent ounces at cash costs of $653 and AISC of $923 per payable gold equivalent ounce sold for
the full year 2016. Fourth quarter production was 110,130 gold
equivalent ounces at cash costs of $625 and AISC of $845 per payable gold equivalent ounce sold.
- Completed the acquisition of Claude Resources: Purchase
of Claude Resources Inc. completed on May
31, 2016, through a share exchange transaction, adding the
Seabee Gold Operation, a high quality, free cash generating gold
operation in Canada.
- Increased Mineral Reserves at Marigold and Seabee:
Successful exploration activities in 2016 increased gold Mineral
Reserves at our Marigold mine by 31% to 2.84 million ounces and at
the Seabee Gold Operation by 50% to 0.36 million ounces.
- Enhanced our financial flexibility: Working capital
totaled $559.9 million at year-end,
an increase of $219.1 million from
the end of 2015. Contributing to working capital are marketable
securities valued at $148.9 million
at December 31, 2016.
- Sustained efficiencies at Marigold: Production in the
fourth quarter was strongest for the year at 59,945 ounces of gold,
taking full year production to 205,116 ounces. Reported 2016 cash
costs of $647 per payable ounce of
gold sold. Fourth quarter cash costs were $585 per payable ounce of gold sold.
- Continued operational improvements at Seabee: Ore
milling rates averaged 919 tonnes per day during the fourth quarter
of 2016 contributing to annual record gold production of 77,640
ounces and low fourth quarter cash costs and AISC of $595 and $833 per
payable gold ounce sold, respectively.
- Record operating performance at Pirquitas: Achieved
record annual silver production of 10.4 million ounces at cash
costs of $9.00 and AISC of
$10.21 per payable silver ounce sold
due in part to record average annual ore milling rates of 4,846
tonnes per day in 2016, a 14% improvement compared to 2015.
- Favorable resolution with Canada Revenue Agency: Settled
in our favor the Notice of Reassessment with the CRA, which
resulted in the repayment of our deposit of $18.2 million plus accrued interest.
- Created value from our portfolio: Completed the sale of
the Parral properties in Mexico
and the Diablillos project in Argentina for combined consideration of
approximately $8 million in retained
equity and undiscounted future cash payments of $15 million. Subsequent to year-end, we entered
into an option agreement for the Candelaria project in the U.S. and announced
the sale of the Berenguela project in Peru for approximately $1 million in equity and undiscounted future cash
payments of $12 million and a 9.9%
retained interest.
Marigold Mine, U.S.
|
Three months
ended
|
|
Total
|
Operating
data
|
December
31, 2016
|
|
September
30, 2016
|
|
June 30,
2016
|
|
March 31,
2016
|
|
2016
|
|
2015
|
Total material
mined (kt)
|
19,559
|
|
19,558
|
|
18,685
|
|
17,291
|
|
75,093
|
|
74,592
|
Waste removed
(kt)
|
13,123
|
|
14,741
|
|
12,005
|
|
11,611
|
|
51,480
|
|
54,054
|
Total ore
stacked (kt)
|
6,436
|
|
4,817
|
|
6,680
|
|
5,680
|
|
23,613
|
|
20,538
|
Strip
ratio
|
2.0
|
|
3.1
|
|
1.8
|
|
2.0
|
|
2.2
|
|
2.6
|
Mining cost
($/t mined)
|
1.52
|
|
1.48
|
|
1.55
|
|
1.45
|
|
1.50
|
|
1.56
|
Gold stacked
grade (g/t)
|
0.48
|
|
0.42
|
|
0.44
|
|
0.47
|
|
0.45
|
|
0.45
|
Processing cost
($/t processed)
|
0.80
|
|
0.95
|
|
0.70
|
|
0.71
|
|
0.78
|
|
0.81
|
Gold recovery
(%)
|
75.0
|
|
71.0
|
|
70.7
|
|
70.0
|
|
72.0
|
|
70.6
|
General and
admin costs ($/t processed)
|
0.46
|
|
0.56
|
|
0.38
|
|
0.47
|
|
0.46
|
|
0.51
|
|
|
|
|
|
|
|
Gold produced
(oz)
|
59,945
|
|
47,456
|
|
47,195
|
|
50,520
|
|
205,116
|
|
207,006
|
Gold sold
(oz)
|
61,308
|
|
47,278
|
|
47,124
|
|
48,605
|
|
204,315
|
|
206,338
|
|
|
|
|
|
|
|
Realized gold
price ($/oz) (1)
|
1,247
|
|
1,330
|
|
1,259
|
|
1,189
|
|
1,255
|
|
1,151
|
|
|
|
|
|
|
|
Cash costs
($/oz) (1)
|
585
|
|
636
|
|
663
|
|
719
|
|
647
|
|
692
|
AISC ($/oz)
(1)
|
835
|
|
1,139
|
|
1,067
|
|
841
|
|
960
|
|
895
|
|
|
|
|
|
|
|
Financial
data ($000s)
|
|
|
|
|
|
|
Revenue
|
77,047
|
|
62,831
|
|
59,197
|
|
57,742
|
|
256,817
|
|
237,296
|
Income from
mine operations
|
28,648
|
|
23,156
|
|
17,641
|
|
11,227
|
|
80,672
|
|
57,539
|
Capital
investments
|
3,271
|
|
8,310
|
|
10,154
|
|
8,796
|
|
30,531
|
|
22,595
|
Capitalized
deferred stripping
|
10,171
|
|
13,787
|
|
7,231
|
|
1,435
|
|
32,624
|
|
12,543
|
Exploration
expenditures (2)
|
1,276
|
|
1,145
|
|
1,597
|
|
1,102
|
|
5,120
|
|
6,204
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
We report the
non-GAAP financial measure of cash costs per payable ounce of gold
sold, realized gold prices and all-in sustaining costs ("AISC") to
manage and evaluate operating performance at the Marigold mine. For
a better understanding and a reconciliation of these measures to
cost of sales, as shown in our consolidated statements of
comprehensive income, please see "Non-GAAP and Additional GAAP
Financial Measures" in section 13 of our management's discussion
and analysis of the financial position and results of operations
for the year ended December 31, 2016 ("MD&A").
|
(2)
|
Includes
capitalized and expensed exploration expenditures.
|
|
|
Mine production
In the fourth quarter of 2016, the Marigold mine produced 59,945
ounces of gold, 26% higher than the previous quarter as expected,
due to higher grade ore tonnes sourced from the deeper benches of
the current Mackay pit phase during the third and fourth quarters
of 2016. Higher grade ore was placed on the new leach pad,
completed in the third quarter of 2016, which assisted in
accelerated gold recovery.
A total of 19.6 million tonnes of material were mined in the
fourth quarter of 2016, in line with material mined in the third
quarter. Approximately 6.4 million tonnes of ore were
delivered to the heap leach pads at a gold grade of 0.48 g/t. This
compares to 4.8 million tonnes of ore delivered to the heap leach
pads at a gold grade of 0.42 g/t in the third quarter of 2016. Gold
grade mined in the fourth quarter was 14% higher than the third
quarter. The strip ratio declined to 2.0:1 in the quarter, a 36%
reduction compared to the previous quarter.
In 2016, the Marigold mine produced 205,116 ounces of gold,
compared to 207,006 ounces of gold produced in 2015, achieving the
mid-point of our improved 2016 production guidance.
Total material mined and ore stacked on leach pads of 75.1
million tonnes and 23.6 million tonnes, respectively, in 2016, were
record amounts for the Marigold mine, due to the increased hauling
capacity added to the fleet earlier in the year. The grade of the
ore delivered to the leach pads in 2016 was 0.45 g/t and the
average strip ratio was 2.2:1.
Mine sales
A total of 61,308 ounces of gold were sold at an average price
of $1,247 per ounce during the fourth
quarter of 2016, an increase of 30% from the 47,278 ounces of gold
sold at an average price of $1,330
per ounce during the third quarter of 2016. The increase in sales
was a function of increased gold production. Gold sales totaled
204,315 ounces in 2016.
Mine operating costs
Cash costs and AISC per payable ounce of gold sold are
non-GAAP financial measures. Please see "Cautionary Note Regarding
Non-GAAP Measures".
Cash costs, which include all costs of inventory, refining costs
and royalties, of $585 per payable
ounce of gold sold in the fourth quarter of 2016 were lower than
cash costs of $636 per payable ounce
of gold sold in the third quarter of 2016 due to higher number of
ounces stacked lowering the unit costs of inventory. Cash costs
decreased in 2016 to $647 per payable
ounce of gold sold, compared to $692
per payable ounce of gold sold in 2015, due to the higher number of
ounces stacked, improved mining costs and an increase in the
proportion of operating costs capitalized to stripping. Costs per
tonne mined decreased in 2016 to $1.50 per tonne compared to $1.56 per tonne in 2015 as a result of our
increased capacity and improved efficiencies in our loading and
hauling practices as well as a lower diesel unit cost. Processing
and general and administration unit costs also declined by 4% and
10%, respectively, in 2016 compared to the comparative period,
principally due to higher ore tonnes stacked. Operational
Excellence remains a core activity at Marigold, particularly
focused on maintenance processes and practices.
AISC decreased in the fourth quarter of 2016 to $835 per payable ounce of gold sold from
$1,139 in the third quarter of 2016
due to lower capitalized stripping and lower investments in
capital. AISC of $960 per payable
ounce of gold sold in 2016 increased from $895 in 2015, primarily due to higher capital
investments, including the construction of a new leach pad, and
higher capitalized stripping.
Exploration
During the fourth quarter Marigold drilled 14,289 meters in 54
reverse circulation ("RC") drillholes using two RC drills. One core
drillhole was completed as part of the deep sulphide exploration
program. In 2016, we drilled 55,147 meters in 231 RC drillholes,
955 meters in one core drillhole and assayed 55,073 samples as a
part of our program to re-assay historic drill samples (the "Assay
Program"). Drill activities for 2016 focused on Mineral Resources
to Mineral Reserves conversion around the 8 South pit, Terry Zone
North, HideOut, Mud and Valmy pits
and Mineral Resources discovery at the Crossfire, East Basalt and
Battle Cry targets. The results of this successful
exploration program are discussed in the Mineral Reserves and
Mineral Resources section. Drilling in the fourth quarter of 2016
centered on Mineral Resources expansion.
During 2016, we completed the Assay Program, which had the
objective of identifying low grade ore that was not included in the
existing Mineral Reserves. The samples from the Assay Program are
from the planned life of mine production areas. The 2016 Assay
Program added 130,000 gold ounces to Indicated Mineral Resources,
which are included in our 2016 Mineral Reserves and Mineral
Resources statement.
Mineral Resources expansion drilling has exceeded expectations
in the East Basalt pit area, where 14 drillholes were completed
during the fourth quarter of 2016, with the majority intersecting
mineralization at or above Mineral Resources average grade. In
addition, drilling adjacent to the dormant Valmy pit continues to demonstrate the
presence of higher grade structural trends beyond the south east
corner of the pit.
Seabee Gold Operation, Canada
Operating
data
|
Three months
ended December
31, 2016
|
|
Three months
ended September
30, 2016
|
|
Period from
Acquisition to
June 30, 2016 (1)
|
|
Period from
Acquisition to
December 31, 2016 (2)
|
Total ore milled
(t)
|
84,526
|
|
82,756
|
|
18,856
|
|
186,138
|
Ore milled per day
(t/day)
|
919
|
|
900
|
|
629
|
|
870
|
Gold mill feed grade
(g/t)
|
7.40
|
|
7.40
|
|
7.79
|
|
7.44
|
Mining costs ($/t
mined)
|
62
|
|
58
|
|
110
|
|
65
|
Processing costs ($/t
processed)
|
19
|
|
19
|
|
29
|
|
20
|
Gold recovery
(%)
|
97.0
|
|
96.5
|
|
96.6
|
|
96.7
|
General and admin
costs ($/t processed)
|
44
|
|
37
|
|
61
|
|
43
|
|
|
|
|
|
Gold produced
(oz)
|
19,711
|
|
20,142
|
|
6,721
|
|
46,574
|
Gold sold
(oz)
|
17,229
|
|
21,911
|
|
11,306
|
|
50,446
|
|
|
|
|
|
Realized gold price
($/oz) (3)
|
1,230
|
|
1,334
|
|
1,278
|
|
1,271
|
|
|
|
|
|
Cash costs ($/oz)
(3,5)
|
595
|
|
661
|
|
663
|
|
639
|
AISC ($/oz)
(3,5)
|
833
|
|
840
|
|
776
|
|
823
|
|
|
|
|
|
Financial data
($000s)
|
|
|
|
|
Revenue
|
21,175
|
|
29,214
|
|
14,437
|
|
64,826
|
Income from mine
operations
|
2,864
|
|
4,126
|
|
1,216
|
|
8,206
|
Capital
investments
|
1,010
|
|
579
|
|
337
|
|
1,926
|
Capitalized
development
|
2,432
|
|
2,104
|
|
803
|
|
5,339
|
Exploration
expenditures (4)
|
829
|
|
1,206
|
|
117
|
|
2,152
|
|
|
|
|
|
|
|
|
(1)
|
The data presented
in this column is for the period from May 31, 2016, to June 30,
2016, the period for which we were entitled to all economic
benefits of the Seabee Gold Operation following our acquisition of
Claude Resources Inc. ("Claude Resources").
|
(2)
|
The data presented
in this column is for the period from May 31, 2016, to December 31,
2016, the period for which we were entitled to all economic
benefits of the Seabee Gold Operation following our acquisition of
Claude Resources.
|
(3)
|
We report the
non-GAAP financial measures of realized gold prices, cash costs and
AISC per payable ounce of gold sold to manage and evaluate
operating performance at the Seabee Gold Operation. For a better
understanding and a reconciliation of these measures to cost of
sales, as shown in our consolidated statements of comprehensive
income, please see "Non-GAAP and Additional GAAP Financial
Measures" in section 13 of our MD&A.
|
(4)
|
Includes
capitalized and expensed exploration expenses.
|
(5)
|
The non-GAAP
financial measure of cash costs per payable ounce of gold sold from
the Seabee Gold Operation was adjusted to eliminate the adjustment
of inventory to fair value as at the date of our acquisition of
Claude Resources.
|
|
|
Mine production
The Seabee Gold Operation consists of the Seabee and Santoy
underground mines, both of which feed a single processing facility.
In the fourth quarter, the Seabee Gold Operation produced 19,711
ounces of gold, largely in line with the 20,142 ounces of gold
produced during the third quarter of 2016. Production during the
second half of the year of 39,853 ounces of gold exceeded our
second half 2016 production guidance range of 32,000 to 35,000
ounces of gold.
A record 84,526 tonnes of ore were milled at an average gold
grade of 7.40 g/t and recovery of 97.0% during the fourth quarter.
This compares to a total of 82,756 tonnes of ore milled at an
average gold grade of 7.40 g/t and recovery of 96.5% in the third
quarter.
During the fourth quarter, the mill was maintained at a higher
throughput of 919 tonnes per day, a record quarterly performance.
The Santoy complex mined approximately 92% of total ore milled,
with the remainder mined from Seabee. Mining continued to
transition to long hole stope ore from Santoy and we are reviewing
the mine plan to determine the feasibility of higher, sustainable
production rates.
During the period since acquisition, from May 31,
2016 to December 31, 2016, the Seabee Gold Operation
produced a total of 46,574 ounces of gold.
Mine sales
A total of 17,229 ounces of gold were sold at an average price
of $1,230 per ounce during the fourth
quarter of 2016. This compares to 21,911 ounces of gold sold in the
third quarter of 2016 at an average realized price of $1,334 per ounce.
In the period from acquisition to December 31, 2016, we sold 50,446 ounces of gold
at an average price of $1,271 per
payable gold ounce sold.
Mine operating costs
Cash costs and AISC per payable ounce of gold sold are
non-GAAP financial measures. Please see "Cautionary Note Regarding
Non-GAAP Measures".
Cost of sales and income from mine operations includes the
effects of non-cash amortization charges related to purchase price
accounting upon our acquisition of Claude Resources in 2016.
Cash costs per payable ounce of gold sold, which include all
costs of inventory, refining costs and royalties, were $595 in the fourth quarter of 2016, lower than
the $661 in the third quarter of 2016
due to timing of inventory costing and higher capital development.
Cash costs for the period from acquisition to December 31, 2016, were $639 per payable ounce of gold sold.
AISC per payable ounce of gold sold were $833 in the fourth quarter of 2016, comparable to
$840 in the third quarter of 2016,
while capital spending remained modest, and higher exploration
spending consistent with our objective of adding Mineral Reserves
and Mineral Resources at the mine, offset the lower cash costs.
AISC for the period from acquisition to December 31, 2016, were $823 per payable ounce of gold sold.
Exploration
For 2016, the Seabee Gold Operation planned 65,000 meters of
underground drilling and 18,000 meters of surface drilling with the
objective to increase and convert Mineral Resources to Mineral
Reserves. During the fourth quarter of 2016, we completed 21,705
meters of underground diamond drilling to upgrade Inferred Mineral
Resources and explore further the extensions to the Santoy 8A and
Santoy Gap deposits. From surface, we completed 7,702 meters of
drilling to upgrade the up plunge extension of the Santoy Gap 9A,
9B and 9C Mineral Resources and to complete deeper infill drilling
on the Santoy 8A Inferred Mineral Resources. The results of this
successful exploration program are discussed in the Mineral
Reserves and Mineral Resources section.
On October 6, 2016, we announced
an option agreement to acquire up to an 80% interest in the
adjacent Fisher property which lies south on strike from the ore
deposits at Santoy Gap and Santoy 8A. This agreement doubles our
prospective land position at the Seabee Gold Operation and planning
for our 2017 exploration work is underway with surface exploration
drilling expected in the second half of the year.
Pirquitas Mine, Argentina
|
Three months
ended
|
|
Total
|
Operating
data
|
December
31, 2016
|
|
September
30, 2016
|
|
June 30,
2016
|
|
March 31,
2016
|
|
2016
|
|
2015
|
Total material mined
(kt)
|
1,694
|
|
2,385
|
|
2,543
|
|
2,520
|
|
9,142
|
|
11,900
|
Waste removed
(kt)
|
1,193
|
|
1,584
|
|
1,814
|
|
1,726
|
|
6,317
|
|
9,090
|
Ore mined
(kt)
|
501
|
|
801
|
|
729
|
|
794
|
|
2,825
|
|
2,810
|
Strip
ratio
|
2.4
|
|
2.0
|
|
2.5
|
|
2.2
|
|
2.2
|
|
3.2
|
Silver mined grade
(g/t)
|
168
|
|
190
|
|
189
|
|
181
|
|
183
|
|
183
|
Mining costs ($/t
mined)
|
4.84
|
|
3.80
|
|
3.54
|
|
2.97
|
|
3.69
|
|
3.47
|
Ore milled
(kt)
|
476
|
|
455
|
|
425
|
|
418
|
|
1,774
|
|
1,557
|
Silver mill feed
grade (g/t)
|
194
|
|
264
|
|
238
|
|
247
|
|
235
|
|
250
|
Processing cost ($/t
milled)
|
14.17
|
|
14.78
|
|
15.10
|
|
13.58
|
|
14.41
|
|
21.52
|
Silver recovery
(%)
|
74.5
|
|
79.0
|
|
77.6
|
|
79.7
|
|
77.8
|
|
82.6
|
General and admin
costs ($/t milled)
|
6.19
|
|
5.84
|
|
6.22
|
|
5.68
|
|
5.99
|
|
8.74
|
|
|
|
|
|
|
|
Silver produced ('000
oz)
|
2,210
|
|
3,047
|
|
2,526
|
|
2,639
|
|
10,422
|
|
10,339
|
Silver sold ('000
oz)
|
2,633
|
|
2,947
|
|
2,594
|
|
3,223
|
|
11,397
|
|
10,294
|
|
|
|
|
|
|
|
Realized silver price
($/oz) (1)
|
17.14
|
|
19.64
|
|
16.52
|
|
14.94
|
|
17.05
|
|
15.92
|
|
|
|
|
|
|
|
Cash costs ($/oz)
(1)
|
9.80
|
|
8.48
|
|
8.87
|
|
8.93
|
|
9.00
|
|
10.68
|
AISC ($/oz)
(1)
|
11.47
|
|
9.87
|
|
10.00
|
|
9.67
|
|
10.21
|
|
12.44
|
|
|
|
|
|
|
|
Financial Data
($000s)
|
|
|
|
|
|
|
Revenue
|
29,095
|
|
51,336
|
|
45,141
|
|
43,771
|
|
169,343
|
|
138,026
|
(Loss) income from
mine operations (2)
|
(4,056)
|
|
31,908
|
|
25,205
|
|
12,071
|
|
65,128
|
|
(38,699)
|
Capital
investments
|
3,467
|
|
3,158
|
|
2,057
|
|
1,578
|
|
10,260
|
|
9,319
|
Exploration
expenditures
|
11
|
|
7
|
|
25
|
|
22
|
|
65
|
|
4,553
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
We report the
non-GAAP financial measures of cash costs per payable ounce of
silver sold, realized silver prices and AISC to manage and evaluate
operating performance at the Pirquitas mine. For a better
understanding and a reconciliation of these measures to cost of
sales, as shown in our consolidated statements of comprehensive
income, please see "Non-GAAP and Additional GAAP Financial
Measures" in section 13 of our MD&A.
|
(2)
|
(Loss) income from
mine operations for the quarter and year ended December 31, 2016,
both include $5.7 million of severance provision and a non-cash
write-down of supplies inventory and value added tax ("VAT")
receivable of $3.7 million. Loss from mine operations for the
annual period ended December 31, 2015, includes $32.3 million of
non-cash adjustments to stockpile and supplies inventory at the
Pirquitas mine to its NRV, and severance provision.
|
|
|
Mine production
In the fourth quarter of 2016, Pirquitas production declined
relative to the third quarter, as expected, producing 2.2 million
ounces of silver.
Ore was milled at an average rate of 5,175 tonnes per day in the
fourth quarter, 5% higher than the previous quarter and a record
quarterly result. Additionally, the average milling rate was 29%
above the mill's nominal design of 4,000 tonnes per day, which is
the result of a successful 14-month Operational Excellence project.
Ore milled in the fourth quarter of 2016 contained an average
silver grade of 194 g/t, 27% lower than the 264 g/t reported in the
third quarter as the availability of ore in the lower benches of
the San Miguel open pit was
reduced, resulting in medium grade stockpile ore supplementing mill
feed.
The average silver recovery in the fourth quarter was 74.5%,
lower than the 79.0% recovery in the previous quarter, in line with
reduced silver mill feed grade that resulted from the increasing
proportion of stockpiled material in the mill feed.
In 2016, the Pirquitas mine produced a record 10.4 million
ounces of silver, close to the upper end of our increased annual
production guidance range. This was largely the result of achieving
a 14% increase in daily milling rate during the year. Silver mined
grade of 183 g/t was in line with that realized in 2015, while
silver mill feed grade was 6% lower than the previous year, in line
with expectations as medium grade stockpiled ore supplemented the
mill feed. Silver recovery of 77.8% was lower compared to 2015, due
to a combination of closing down the zinc circuit in January
2016 and lower silver grade throughout the year. Silver sales
totaled 11.4 million ounces in 2016.
Detailed planning and consultation with the workforce, union,
communities and government for the cessation of open pit mining was
undertaken and mining ceased in January 2017. It is expected
that medium grade stockpile material will be processed through the
plant in 2017. Low grade stockpiles may be processed in late 2017,
and potentially in early 2018, depending on prevailing economic
conditions.
Mine sales
Silver sales totaled 2.6 million ounces in the fourth quarter of
2016, an 11% decrease from the third quarter of 2016, due to
availability of inventory following lower production in the fourth
quarter of 2016. Additionally, we recorded a negative period-end
price adjustment for unsettled ounces of $9.2 million, or $3.49 per ounce, compared to a positive
adjustment of $0.7 million in the
third quarter of 2016.
We sold 11.4 million ounces of silver in 2016, an 11% increase
compared to the 10.3 million ounces sold in 2015. Sales of our
silver concentrate were also impacted by period-end price
adjustments for unsettled ounces which had a negative impact of
$1.6 million cumulatively in 2016,
compared to the negative impact of $10.6
million in 2015.
Mine operating costs
Cash costs and AISC per payable ounce of silver sold are
non-GAAP financial measures. Please see "Cautionary Note Regarding
Non-GAAP Measures".
Cost of sales and income from mine operations in the fourth
quarter of 2016 were impacted by non-cash provisions related to the
pending cessation of mine operations. We recorded a severance
provision of $5.7 million and a
non-cash write-down of supplies inventory and VAT of $3.7 million.
Cash costs, which include cost of inventory, treatment and
refining costs, and by-product credits, were $9.80 per payable ounce of silver sold in the
fourth quarter of 2016, higher than the $8.48 per payable ounce of silver sold in the
third quarter of 2016 due to medium grade stockpile ore grade
supplementing mined ore and reduced mining efficiency on the lowest
benches of the open pit.
Cash costs per payable ounce of silver sold in 2016 decreased to
$9.00 from $10.68 in 2015 as our stronger production more
than offset the cessation of the zinc recovery circuit which saved
cost but lowered overall silver recovery.
AISC per payable ounce of silver sold in the fourth quarter of
2016 were higher at $11.47 than in
the third quarter at $9.87 due to
higher cash costs and capital investment in the planned phase 5
tailings lift. AISC of $10.21 per
payable ounce of silver sold were lower in 2016 than the
$12.44 per payable ounce of silver
sold in 2015 due to lower cash costs while capital investments
remained modest.
Exploration
There was no exploration activity at the Pirquitas mine during
2016 as we focused on advancing the Chinchillas project.
Chinchillas Project, Argentina
During the fourth quarter, hydrology and geotechnical drilling
was completed for final feasibility studies. In addition to this
work, metallurgical and environmental baseline studies, along with
community engagement programs, continued. In the fourth quarter of
2016, we funded approximately $1.6
million for work on the Chinchillas project, bringing total
expenditures to date to $12.1
million.
During the second quarter of 2016, Golden Arrow Resources
Corporation ("Golden Arrow") released a revised Mineral Resources
estimate and technical report for the Chinchillas project following
an infill drilling program of 115 core drillholes comprising 15,142
meters of drilling. As part of the continuing engineering studies,
a program of condemnation drilling commenced beneath areas selected
for major infrastructure, such as the waste rock facility.
We are undertaking the relevant engineering studies to determine
the economic viability of the Chinchillas project as a satellite
mine feeding the Pirquitas plant and extending the life of the
operation. Our option agreement with Golden
Arrow requires the notice of exercise of the option to be
given by March 30, 2017. A decision
with regards to such notice is subject to the remaining technical
evaluation, which is scheduled for completion in the first quarter
of 2017, as well as our assessment of market conditions and country
risks, including the status of our export duty litigation.
Export duties
We entered into a fiscal stability agreement (the "Fiscal
Agreement") with the Federal Government of Argentina in 1998 for production from the
Pirquitas mine. In December 2007, the
National Customs Authority of Argentina (Dirección Nacional de Aduanas)
("Customs") levied an export duty of approximately 10% from
concentrate for projects with fiscal stability agreements
pre-dating 2002 and Customs has asserted that the Pirquitas mine is
subject to this duty. We have challenged the legality of the export
duty applied to silver concentrate and the matter is currently
under review by the Federal Court (Jujuy) in Argentina.
The Federal Court (Jujuy) granted an injunction in our favor
effective September 29, 2010, that
prohibited Customs from withholding the 10% export duty on silver
concentrate (the "Injunction"), pending the decision of the courts
with respect to our challenge of the legality of the application of
the export duty. On June 21, 2016 the
Federal Court (Jujuy) ruled that the Injunction would remain in
place subject to certain conditions, including the provision by
August 5, 2016, of a guarantee by
Silver Standard against liabilities arising from export duties and
applicable interest as well as security from Mina Pirquitas, LLC on
certain assets at the Pirquitas mine. We appealed the condition to
provide the parent guarantee. On November
17, 2016 the Appeal Court in Salta ruled in favour of the
Federal Tax Authority and lifted the Injunction. Our subsequent
request for appeal of this ruling to the Supreme Court was approved
by the Appeal Court in Salta on December 27,
2016 and the suspension of payment under the Injunction
remains in effect. We are also continuing discussions with the
Federal Tax Authority and other government officials for potential
resolution of the claim. We cannot predict the outcome of the court
proceedings and those discussions. If we do not reach a successful
resolution of the matter, the Federal Tax Authority may make
further application to the court to have the Injunction lifted and
initiate proceedings to collect the accrued export duties and its
claimed interest. The lifting of the Injunction does not impact our
underlying challenge of the legality of the application of export
duties or remedies available under the Fiscal Agreement. Changes in
our assessment of this matter could result in material adjustments
to our consolidated statements of income (loss).
Outlook
This section of the news release provides management's
production, cost, capital, exploration and development expenditure
estimates for 2017. See "Cautionary Note Regarding Forward-Looking
Statements."
For the full year 2017, we expect:
Operating
Guidance
|
|
Marigold
mine
|
|
Seabee Gold
Operation
|
|
Pirquitas
mine
|
Gold
Production
|
oz
|
205,000 -
215,000
|
|
72,000 -
82,000
|
|
—
|
Silver
Production
|
Moz
|
—
|
|
—
|
|
4.5 - 5.5
|
Cash cost per payable
ounce sold (1)
|
$/oz
|
655 - 705
|
|
575 - 625
|
|
13.50 -
16.00
|
Capital
Expenditures
|
$M
|
30
|
|
8
|
|
5
|
Capitalized Stripping
/ Capitalized Development
|
$M
|
17
|
|
11
|
|
—
|
Exploration
Expenditures (2)
|
$M
|
5
|
|
5
|
|
—
|
|
|
|
|
|
|
|
(1)
|
We report the
non-GAAP financial measure of cash costs per payable ounce of gold
and silver sold to manage and evaluate operating performance at the
Marigold mine, the Seabee Gold Operation and the Pirquitas mine.
See "Cautionary Note Regarding Non-GAAP Measures".
|
(2)
|
Includes
capitalized and expensed exploration expenses.
|
|
|
In 2017, on a consolidated basis at mid-point of guidance, we
expect to produce 355,000 gold equivalent ounces at gold equivalent
cash costs of $735 per ounce. Cash costs and capital
guidance are based on $55 per barrel oil price and 1.30
Canadian to U.S. dollar exchange rate. Gold equivalent
figures are based on $1,250 per
ounce gold price and $17.50 per ounce silver price.
Marigold production is expected to increase compared to 2016 as
the mine benefits from the gold ounces stacked on the leach pads
through the latter months of 2016 and from continued strong
performance in 2017. As a result, production is expected to be
weighted towards the first half of the year. Capital expenditures
total $30 million and are primarily attributable to
mining equipment components of $17 million and
replacement of support equipment of $5 million, with $2.5
million allocated for permitting. Capitalized stripping is
expected to decline significantly relative to 2016 as mining
focuses on the current phases of the Mackay pit.
Approximately $11 million of capitalized stripping is
expected to be incurred in the second half of the year as we
commence stripping of the next phase of the Mackay pit.
Despite the decline in mining costs capitalized, cash costs per
payable ounce are expected to be similar to 2016. The mine has
encountered severe weather conditions through the initial weeks for
the first quarter of 2017 that have caused periodic interruptions
and inefficiencies to mine and heap leach operations.
At the Seabee Gold Operation, 2017 will mark our first full year
of ownership with production expected to remain near record levels
of between 72,000 and 82,000 ounces of gold at low cash costs,
based on mill throughput of 900 tonnes per day. Annual production
is expected to be weighted toward the second half of the year as
mine grade is expected to increase as additional levels are
developed at the Santoy mine complex through early 2017. Capital
investments at Seabee of $8 million include $2
million for improvement of gravity recovery in the
plant, $2 million for ventilation improvements to the
Santoy mine complex to support a higher mining rate and $3
million for a water treatment plant related to tailings water
discharge. Capitalized development of $11 million is
principally for Santoy decline development and to establish
stations for underground definition and exploration drilling.
At the Pirquitas mine, mining of the San Miguel open pit ceased in January
2017. Medium grade stockpiles currently constitute the mill feed
upon cessation of open pit mining activities. As a result, silver
production is expected to decline and cash costs are expected to be
higher in 2017, compared to 2016. Zinc production is not expected
in 2017 due to lower zinc grades in the stockpiled material. As we
report cash costs on a per payable ounce sold basis, 2017 expected
cash costs include stockpile inventory costs of
approximately $3.50 per ounce of silver that were
previously incurred. Capital expenditures include
approximately $1 million for completion of the tailings
facility lift, which commenced in the fourth quarter of 2016 and is
scheduled for completion in the first quarter of 2017. The
remaining sustaining capital is for maintaining the re-handle fleet
and the mill in fully operational condition. Further, we
expect to incur approximately $6 million related to
remediation of mining areas in 2017, mainly on surface water
control measures. The Pirquitas plant is expected to operate
through 2017, conditional upon profitable processing of stockpiles
at prevailing market conditions, and to close in late 2017 or early
2018, subject to our investment decision on the Chinchillas
project.
Exploration and development expenditures are forecast
at $18 million for 2017, an increase of $3 million from our previous
disclosures. Approximately $5 million of exploration
at Marigold is for Mineral Resource discovery and conversion of
Mineral Resources to Mineral Reserves, with a particular focus on
the Valmy property. At the Seabee
Gold Operation, $5 million of expenditures are to be
incurred targeting conversion of Mineral Resources to Mineral
Reserves at Santoy Gap and Santoy 8 as well as Mineral Resource
discovery adjacent to the Seabee mine, along the Santoy Shear
trend, and at multiple targets present on existing Seabee Gold
Operation claims and on the contiguous Fisher property, where we
hold an option. The remaining expenditures are attributable to our
development portfolio, including $1 million at the
Perdito early-stage exploration property, where we hold an option,
and $3 million for the recently
agreed earn-in option letter of intent with Eskay Mining Corp.
Consolidated Financial Summary
|
Selected Financial
Data (1)
|
Three Months
Ended December 31
|
|
Year
Ended December 31
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
Revenue
|
127,317
|
|
90,592
|
|
490,986
|
|
375,322
|
Income (loss) from
mine operations (2)
|
27,456
|
|
(20,485)
|
|
154,006
|
|
18,840
|
Operating income
(loss) (2)
|
23,506
|
|
(46,819)
|
|
112,605
|
|
(71,063)
|
Net income (loss) for
the period
|
12,132
|
|
(66,722)
|
|
64,957
|
|
(124,302)
|
Basic income (loss)
per share
|
0.10
|
|
(0.83)
|
|
0.63
|
|
(1.54)
|
Adjusted income
(loss) before tax (3)
|
32,707
|
|
(8,266)
|
|
116,778
|
|
2,124
|
Adjusted net income
(loss) (3)
|
30,750
|
|
(7,232)
|
|
100,302
|
|
(8,197)
|
Adjusted basic income
(loss) per share (3)
|
0.26
|
|
(0.09)
|
|
0.97
|
|
(0.10)
|
Cash generated by
operating activities
|
74,130
|
|
20,549
|
|
170,684
|
|
74,109
|
Cash used in
investing activities
|
(24,042)
|
|
(10,576)
|
|
(43,264)
|
|
(44,342)
|
Cash generated by
(used in) financing activities
|
336
|
|
1,893
|
|
(11,064)
|
|
244
|
|
|
|
Financial
Position
|
December 31,
2016
|
|
December 31,
2015
|
Cash and cash
equivalents
|
327,127
|
|
211,862
|
Marketable
securities
|
148,944
|
|
88,184
|
Current assets -
total
|
704,240
|
|
476,734
|
Current liabilities -
total
|
144,306
|
|
135,851
|
Working
capital
|
559,934
|
|
340,883
|
Total
assets
|
1,438,688
|
|
871,677
|
|
|
|
|
(1)
|
All values are
presented in thousands of U.S. dollars, except per share values.
This summary of selected financial data should be read in
conjunction with our MD&A and our audited consolidated
financial statements for the years ended December 31, 2016 and
December 31, 2015.
|
(2)
|
The quarters ended
December 31, 2016, and December 31, 2015, include non-cash
provisions to income (loss) from mine operations of $9.4 million
and $24.6 million, respectively, and the quarter ended December 31,
2015, includes additional impairment charge to operating (loss) of
$13.9 million. The years ended December 31, 2016 and December 31,
2015, include non-cash provisions to income (loss) from mine
operations of $9.4 million and $32.3 million, respectively, and the
year ended December 31, 2015, includes additional impairment charge
to operating (loss) of $48.4 million.
|
(3)
|
We report non-GAAP
measures including adjusted income before- and after-tax and
adjusted basic income per share, to manage and evaluate our
operating performance. Please see "Cautionary Note Regarding
Non-GAAP Measures".
|
|
|
Quarterly financial summary
The 41% increase in quarterly revenue in the fourth quarter of
2016 compared to the fourth quarter of 2015 was due to 15% and 14%
higher realized prices of gold and silver, respectively, combined
with a 13% increase in gold equivalent ounces sold to 110,130,
largely due to sales from the acquired Seabee Gold Operation and
stronger sales from the Pirquitas mine.
Income from mine operations in the fourth quarter of 2016
generated a gross margin of 22%, significantly higher than the
negative 23% gross margin in the fourth quarter of 2015 due to
higher precious metals prices, lower cost of sales, particularly at
the Pirquitas mine, and the addition of the Seabee Gold Operation.
Income from mine operations in the fourth quarter of 2016 included
a severance provision of $5.7 million
related to the closure of the Pirquitas mine and $3.7 million in non-cash write downs of supplies
inventory and VAT receivable. Loss from mine operations in the
fourth quarter of 2015 was negatively impacted by a non-cash
write-down of stockpile inventory to its net realizable value
("NRV") at the Pirquitas mine in the amount of $7.7 million, a $12.2
million non-cash provision against supplies inventory and a
$4.7 million severance provision
related to the Pirquitas mine. Operating loss in the fourth quarter
of 2015 was also negatively impacted by a $13.9 million non-cash impairment of plant and
equipment at the Pirquitas mine.
In the fourth quarter of 2016 we generated a gain of
$6.5 million from the sale of the
Parral properties in Mexico and
the Diablillos project in Argentina. We did not sell any mineral
properties in the comparative quarter of 2015. Additionally, in the
fourth quarter of 2016 we incurred withholding taxes of
$4.9 million on the repatriation of
funds from Argentina due to the
strong cash generation of the Pirquitas mine during 2016.
Cash generated by operating activities increased significantly
to $74.1 million in the fourth
quarter of 2016 compared to $20.5
million in the fourth quarter of 2015. The higher prices of
gold and silver and the higher volumes sold at lower unit costs
generated significantly higher cash from operating activities. We
used $24.0 million in investing
activities in the fourth quarter of 2016 compared to $10.6 million in the fourth quarter of 2015.
Investments in the fourth quarter of 2016 increased compared to the
fourth quarter of 2015 due to the addition of the Seabee Gold
Operation, a tailings lift build at the Pirquitas mine and a high
quarter of capitalized stripping at the Marigold mine. Capitalized
stripping at the Marigold mine was $10.2
million and underground development at the Seabee Gold
Operation was $2.4 million.
Annual financial summary
The increase in revenue in 2016 compared to 2015, of 31%,
resulted from 18% higher sales of gold equivalent ounces due to
sales from the newly-acquired Seabee Gold Operation, strong
performance at the Pirquitas mine and 10% and 7% higher prices of
gold and silver, respectively.
Income from mine operations in 2016 generated a gross margin of
31%, higher than the 5% in 2015, mainly due to higher precious
metals prices and lower cost of sales, particularly at the
Pirquitas mine. Income from mine operations in 2016 was negatively
impacted by a severance provision related to the Pirquitas mine of
$5.7 million and by $3.7 million of non-cash write downs of inventory
and VAT receivable. Income from mine operations in 2015 was also
negatively impacted by a severance provision related to the
Pirquitas mine of $4.7 million and by
the non-cash write-down of stockpile and supplies inventory at the
Pirquitas mine of $27.6 million.
Operating income in 2016, was also significantly higher than in the
comparative period which was negatively impacted by a $48.4 million impairment of the Pirquitas
mine.
Cash generated from operating activities was $170.7 million in 2016, compared to $74.1 million in 2015 as a result of improved
margins at Marigold and Pirquitas and the addition of the strong
cash producing Seabee Gold Operation in May
2016. In 2016, we invested $5.4
million in underground development at the Seabee Gold
Operation, $32.6 million in
capitalized stripping primarily at the Marigold mine and
$42.3 million in total at our
operations for plant and equipment. In 2015, we invested
$37.3 million in plant and equipment
and $12.5 million in capitalized
stripping, mainly at the Marigold mine. Overall, cash used in
investing activities was slightly lower in 2016, than in 2015 at
$43.3 million. Cash used in financing
activities in the year includes repayment of Claude Resources'
$13.7 million credit facility, full
repayment of the short-term debt in Argentina offset by the receipt of
$6.7 million from the exercise of
stock options. There were limited financing cash flows in 2015.
Corporate Summary
In 2016, the tax dispute with the Canada Revenue Agency ("CRA")
was settled in our favor. On August 24,
2016, the CRA issued a new notice of reassessment for each
of our 2010 and 2011 taxation years reversing the Notice of
Reassessment issued to us in January
2015 and, on September 2,
2016, refunded $18.2 million
being the deposit we paid to the CRA to appeal, plus accrued
interest from the date of payment of the deposit. Following the
receipt of the deposit, with accrued interest, the Department of
Justice filed a notice of discontinuance of our appeal with the Tax
Court of Canada.
On August 19, 2016, we sold 100%
of our Juncal and La Flora projects in Region II, Chile to Austral Gold Limited (ASX: AGD) for
aggregate consideration of $250,000
in cash and a 1.0% net smelter return royalty on production from
the projects.
On October 31, 2016, we completed
the sale of 100% of our Parral properties in Chihuahua, Mexico, including the Veta
Colorada, La Palmilla, and
San Patricio properties
(collectively, the "Parral properties") to Endeavour Silver Corp.
(TSX: EDR and NYSE: EXK) ("Endeavour Silver") for $5.3 million of Endeavour Silver shares and the
right to receive $0.2 million of
Endeavour Silver shares for each 1 million silver ounces included
in an estimate of Measured and Indicated Mineral Resources prepared
by Endeavour Silver in respect of the San
Patricio and La Palmilla
properties, plus a 1% net smelter royalty on all mineral products
from the San Patricio and
La Palmilla properties.
On November 1, 2016, we completed
the sale of our Diablillos and M-18 projects, located in
Argentina, to Huayra Minerals
Corporation ("Huayra") for cash payments of approximately
$1.5 million over the first two years
and $12.5 million over the following
three to five years, a 19.9% equity stake in Huayra, with free
carried interest until the completion of a financing of
$5.0 million or more, and a 1% net
smelter returns royalty on production from each of the
projects.
Subsequent to the year end, in January
2017, we also agreed to option our Candelaria property in Nevada, U.S. to Silver One Resources Inc.
(TSXV: SVE, OTC: SLVR and FRA: BRK1.F) ("Silver One") for
$1.0 million of Silver One shares
issued on January 20, 2017, and three
annual installments of $1.0 million
in shares of Silver One.
On February 13, 2017, we announced
the signing of a definitive agreement to sell our Berenguela
project in Peru to Valor Resources
Limited (ASX: VAL) ("VRL") for aggregate cash payments of
$12.0 million over five years, a 9.9%
equity stake in VRL, with a free carry interest until VRL
completes, in aggregate, a financing of $8
million and a 1% net smelter royalty on all metal production
from the property.
Mineral Reserves and Mineral Resources
At December 31, 2016, total Proven
and Probable gold Mineral Reserves were 3.49 million ounces and
total Proven and Probable silver Mineral Reserves were 16.8 million
ounces. Mineral Reserves estimates for the Marigold mine, the
Seabee Gold Operation and the Pirquitas mine have been determined
based on prices of $1,250 per ounce
of gold and $18.00 per ounce of
silver. These prices are an increase from prices of $1,100 per ounce of gold and $16.00 per ounce of silver used to determine our
Mineral Reserves estimate for the Marigold mine and the Pirquitas
mine as at December 31, 2015,
reflecting market conditions and consensus long-term metal
prices.
At December 31, 2016, our total
Measured and Indicated Mineral Resources (inclusive of Mineral
Reserves) were 6.9 million ounces of gold and 608.4 million ounces
of silver and our Inferred Mineral Resources were 1.93 million
ounces of gold and 40.4 million ounces of silver. Mineral Resources
estimates have been determined based on prices of $1,400 per ounce of gold and $22.50 per ounce of silver. These prices remain
unchanged from prices used to determine Mineral Resources estimates
as at December 31, 2015.
At Marigold, positive exploration results and discoveries led to
increases in each of Mineral Reserves, Mineral Resources and
Inferred Mineral Resources. Probable Mineral Reserves increased by
31% to 2.84 million ounces of gold, after accounting for mining
depletion and changes to gold price and cost assumptions, while
gold grade remained unchanged at 0.45 g/t. The increase in Probable
Mineral Reserves is attributable to our successful infill drill
program which converted Mineral Resources at Terry Zone North
(310,000 gold ounces), HideOut (130,000 gold ounces) and 8 South
pit extension zone (210,000 gold ounces), collectively referred to
as Mackay North; at Valmy, where
200,000 gold ounces were added; and through our Assay Program which
added 110,000 gold ounces. The higher price of gold utilized had a
marginal impact on Probable Mineral Reserves. Indicated Mineral
Resources increased by 12% to 5.15 million ounces of gold. The
increase in Indicated Mineral Resources (inclusive of Mineral
Reserves) is attributed to additions of approximately 450,000 gold
ounces at the Mackay North areas, 260,000 gold ounces from the East
Basalt/Battle Cry/Antler areas on the Valmy property, 110,000 gold ounces from
drilling at the Valmy pit and
130,000 gold ounces from the Assay Program. Overall, Inferred
Mineral Resources increased by 27% to 700,000 ounces of gold mainly
due to additions at Mackay North and East Basalt.
At the Seabee Gold Operation, Proven and Probable Mineral
Reserves total 360,000 ounces of gold, a 50% increase compared to
year-end 2015 as a result of conversion and development drilling.
Average grade has increased to 8.2 g/t gold due to the addition of
higher grade Mineral Reserves from Santoy 8. Proven and
Probable Mineral Reserve increases are due to additions of 77,000
gold ounces at Santoy 8 and 107,000 gold ounces at Santoy Gap.
Measured and Indicated Mineral Resources (inclusive of Mineral
Reserves) total 570,000 gold ounces at year-end 2016, reflecting
the conversion from 89,000 gold ounces at Santoy 8 and 149,000 gold
ounces at Santoy Gap from Inferred Mineral Resources. As at
December 31, 2016, Inferred Mineral
Resources total 640,000 gold ounces, reflecting a 37% decline due
to conversion to Mineral Reserves in the second half of 2016.
At Pirquitas, Probable Mineral Reserves declined to 9.6 million
ounces of silver due to mine depletion and are contained
principally in surface stockpiles. Measured and Indicated Mineral
Resources (inclusive of Mineral Reserves) total 67.4 million ounces
of silver within the open pit, underground and stockpile inventory.
Inferred Mineral Resources total 8.4 million ounces of silver at
December 31, 2016.
Details on Mineral Reserves and Mineral Resources by mine
including tonnes, grades, ounces and notes, are presented in the
table below.
Mineral Reserves and Resources
(As of December 31, 2016)
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Location
|
Tonnes
|
Silver
|
Gold
|
Lead
|
Zinc
|
Silver
|
Gold
|
|
|
millions
|
g/t
|
g/t
|
%
|
%
|
million
oz
|
million
oz
|
|
|
|
|
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MINERAL
RESERVES:
|
|
|
|
|
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|
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Proven Mineral
Reserves
|
Seabee
|
Canada
|
0.52
|
|
6.97
|
|
|
|
0.12
|
Total
|
|
|
|
|
|
|
|
0.12
|
|
|
|
|
|
|
|
|
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Probable Mineral
Reserves
|
Marigold
|
U.S.
|
185.00
|
|
0.45
|
|
|
|
2.67
|
Marigold Leach Pad
Inventory
|
U.S.
|
|
|
|
|
|
|
0.17
|
Seabee
|
Canada
|
0.85
|
|
8.93
|
|
|
|
0.25
|
Pirquitas
|
Argentina
|
0.08
|
139.2
|
|
|
0.09
|
0.4
|
|
Pirquitas
Stockpiles
|
Argentina
|
2.42
|
118.1
|
|
|
0.40
|
9.2
|
|
San Luis
|
Peru
|
0.51
|
447.2
|
18.06
|
|
|
7.2
|
0.29
|
Total
|
|
|
|
|
|
|
16.8
|
3.38
|
|
|
|
|
|
|
|
|
|
Proven and
Probable Mineral Reserves
|
Marigold
|
U.S.
|
185.00
|
|
0.45
|
|
|
|
2.67
|
Marigold Leach Pad
Inventory
|
U.S.
|
|
|
|
|
|
|
0.17
|
Seabee
|
Canada
|
1.37
|
|
8.19
|
|
|
|
0.36
|
Pirquitas
|
Argentina
|
0.08
|
139.2
|
|
|
0.09
|
0.4
|
|
Pirquitas
Stockpiles
|
Argentina
|
2.42
|
118.1
|
|
|
0.40
|
9.2
|
|
San Luis
|
Peru
|
0.51
|
447.2
|
18.06
|
|
|
7.2
|
0.29
|
Total Proven and
Probable
|
|
|
|
|
|
16.8
|
3.49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MINERAL
RESOURCES:
|
|
|
|
|
|
|
|
|
|
Measured Mineral
Resource (inclusive of Proven Mineral Reserves)
|
Seabee
|
Canada
|
0.81
|
|
7.71
|
|
|
|
0.20
|
Pitarrilla
|
Mexico
|
10.13
|
91.7
|
|
0.70
|
1.23
|
29.8
|
|
Total
|
|
|
|
|
|
|
29.8
|
0.20
|
|
|
|
|
|
|
|
|
|
Indicated Mineral
Resources (inclusive of Probable Mineral Reserves)
|
Marigold
|
U.S.
|
348.30
|
|
0.45
|
|
|
|
4.98
|
Marigold Leach Pad
Inventory
|
U.S.
|
|
|
|
|
|
|
0.17
|
Seabee
|
Canada
|
1.43
|
|
8.14
|
|
|
|
0.37
|
Pirquitas
|
Argentina
|
12.88
|
108.6
|
|
|
1.16
|
45.0
|
|
Pirquitas
UG
|
Argentina
|
1.83
|
224.1
|
|
|
5.17
|
13.2
|
|
Pirquitas
Stockpiles
|
Argentina
|
2.42
|
118.1
|
|
|
0.40
|
9.2
|
|
Pitarrilla
|
Mexico
|
149.82
|
97.1
|
|
0.31
|
0.83
|
467.5
|
|
Pitarrilla
UG
|
Mexico
|
5.16
|
173.5
|
|
0.50
|
1.19
|
28.8
|
|
San Luis
|
Peru
|
0.48
|
578.1
|
22.40
|
|
|
9.0
|
0.35
|
Amisk
|
Canada
|
30.15
|
6.2
|
0.85
|
|
|
6.0
|
0.83
|
Total
|
|
|
|
|
|
|
578.6
|
6.70
|
|
|
|
|
|
|
|
|
|
Measured and
Indicated Mineral Resources (inclusive of Reserves)
|
Marigold
|
U.S.
|
348.30
|
|
0.45
|
|
|
|
4.98
|
Marigold Leach Pad
Inventory
|
U.S.
|
|
|
|
|
|
|
0.17
|
Seabee
|
Canada
|
2.23
|
|
7.99
|
|
|
|
0.57
|
Pirquitas
|
Argentina
|
12.88
|
108.6
|
|
|
1.16
|
45.0
|
|
Pirquitas
UG
|
Argentina
|
1.83
|
224.1
|
|
|
5.17
|
13.2
|
|
Pirquitas
Stockpiles
|
Argentina
|
2.42
|
118.1
|
|
|
0.40
|
9.2
|
|
Pitarrilla
|
Mexico
|
159.95
|
96.7
|
|
0.33
|
0.86
|
497.3
|
|
Pitarrilla
UG
|
Mexico
|
5.16
|
173.5
|
|
0.50
|
1.19
|
28.8
|
|
San Luis
|
Peru
|
0.48
|
578.1
|
22.40
|
|
|
9.0
|
0.35
|
Amisk
|
Canada
|
30.15
|
6.2
|
0.85
|
|
|
6.0
|
0.83
|
Total Measured and
Indicated
|
|
|
|
|
|
608.4
|
6.90
|
|
|
|
|
|
|
|
|
|
Inferred Mineral
Resources
|
Marigold
|
U.S.
|
53.60
|
|
0.41
|
|
|
|
0.70
|
Seabee
|
Canada
|
2.56
|
|
7.74
|
|
|
|
0.64
|
Pirquitas
|
Argentina
|
0.91
|
80.3
|
|
|
1.88
|
2.3
|
|
Pirquitas
UG
|
Argentina
|
0.94
|
202.0
|
|
|
6.97
|
6.1
|
|
Pitarrilla
|
Mexico
|
9.04
|
76.6
|
|
0.16
|
0.54
|
22.2
|
|
Pitarrilla
UG
|
Mexico
|
1.31
|
139.0
|
|
0.85
|
1.21
|
5.9
|
|
San Luis
|
Peru
|
0.02
|
270.1
|
5.60
|
|
|
0.2
|
|
Amisk
|
Canada
|
28.65
|
4.0
|
0.64
|
|
|
3.7
|
0.59
|
Total
Inferred
|
|
|
|
|
|
|
40.4
|
1.93
|
|
|
|
|
|
|
|
|
|
Notes to Mineral Reserves and Mineral Resources
Table:
All estimates set forth in the Mineral Reserves and Mineral
Resources table have been prepared in accordance with National
Instrument 43-101 - Standards of Disclosure for Mineral
Projects ("NI 43-101"). The estimates of Mineral Reserves and
Mineral Resources for each property other than the Marigold mine,
the Seabee Gold Operation and the Amisk gold project have been
reviewed and approved by Bruce
Butcher, P.Eng., our Director, Mine
Planning, and F. Carl
Edmunds, P.Geo., our Chief Geologist, each of whom is a
Qualified Person.
Mineral Resources are reported inclusive of Mineral Reserves.
Mineral Resources that are not Mineral Reserves do not have
demonstrated economic viability. Due to the uncertainty that may be
attached to Inferred Mineral Resources, it cannot be assumed that
all or any part of an Inferred Mineral Resource will be upgraded to
an Indicated or Measured Mineral Resource as a result of continued
exploration.
Mineral Resources and Mineral Reserves figures have some
rounding applied, and thus totals may not sum exactly. All ounces
reported herein represent troy ounces, and "g/t" represents grams
per tonne. All $ references are in U.S. dollars. All Mineral
Reserve and Mineral Resource estimates are as of December 31, 2016.
Metal prices utilized for Mineral Reserves estimates are
$1,250 per ounce of gold,
$18.00 per ounce of silver and
$1.00 per pound of zinc, except as
noted below for the San Luis
project. Metal prices utilized for Mineral Resources estimates are
$1,400 per ounce of gold,
$22.50 per ounce of silver,
$1.10 per pound of zinc and
$3.00 per pound of copper, except as
noted below for the San Luis
project and the Amisk gold project.
The table does not include an estimate of Mineral Resources for
the Diablillos project, which we sold to Huayra effective as of
November 1, 2016, or the Berenguela
project, which we agreed to sell to VRL, as announced in our news
release dated February 13, 2017.
All technical reports for the properties are available under our
profile on the SEDAR website at www.sedar.com or on our website at
www.silverstandard.com.
Marigold
- Except for updates to cost parameters and metal price
assumptions, all other key assumptions, parameters and methods used
to estimate Mineral Reserves and Mineral Resources and the data
verification procedures followed are set out in the technical
report entitled "NI 43-101 Technical Report on the Marigold Mine,
Humboldt County, Nevada" dated
November 19, 2014. For additional
information about the Marigold mine, readers are encouraged to
review our most recently filed Annual Information Form.
- Mineral Reserves estimate was prepared under the supervision of
Thomas Rice, SME Registered Member,
a Qualified Person and our Technical Services Manager at the
Marigold mine, and is reported at a cut-off grade of 0.065 g/t
payable gold.
- Mineral Resources estimate was prepared under the supervision
of James N. Carver, SME Registered
Member, and our Chief Geologist at the Marigold mine, and
Karthik Rathnam, MAusIMM (CP), and
our Senior Resource Geologist at the Marigold mine, each of whom is
a Qualified Person. Mineral Resources estimate is reported based on
an optimized pit shell at a cut-off grade of 0.065 g/t payable
gold, and includes an estimate of Mineral Resources for mineralized
stockpiles. Mineral Resources for mineralized stockpiles were
estimated using Inverse Distance cubed.
Seabee Gold Operation
- Except for updates to cost parameters, metal price assumptions
and mill recovery and dilution to include recent operating results,
all other key assumptions, parameters and methods used to estimate
Mineral Reserves and Mineral Resources and the data verification
procedures followed are set out in the technical report entitled
"Mineral Resource and Mineral Reserve Estimate Seabee Gold
Operation Saskatchewan, Canada" dated December 23, 2013. For additional information
about the Seabee Gold Operation, readers are encouraged to review
our Management Information Circular dated April 1, 2016.
- Mineral Reserves estimate was prepared under the supervision of
under the supervision of Kevin
Fitzpatrick, P.Eng., a Qualified Person and our Engineering
Supervisor at the Seabee Gold Operation. Mineral Reserves estimate
for the Seabee mine is reported at a cut-off grade of 4.92 g/t
gold, and for the Santoy mine is reported at a cut-off grade of
3.65 g/t gold.
- Mineral Resources estimate was prepared under the supervision
of Jeffrey Kulas, P.Geo., a
Qualified Person and our Manager Geology, Mining Operations at the
Seabee Gold Operation. Mineral Resources estimate for the Seabee
mine is reported at a cut-off grade of 4.40 g/t gold, and for the
Santoy mine is reported at a cut-off grade of 3.26 g/t
gold.
- Block modelling techniques were used for Mineral Resources and
Mineral Reserves evaluation for the Santoy mine and the majority of
the Seabee mine. Polygonal techniques were used in areas of
historical mining at the Seabee mine.
Pirquitas
- Except for the optimized pit constraints and updates in metal
price assumptions and cut-off grade used for the Mineral Reserves
estimate and value estimation methodology used in the Mineral
Resources block model, all other key assumptions, parameters and
methods used to estimate Mineral Reserves and Mineral Resources and
the data verification procedures followed are set out in the
technical report entitled "NI 43-101 Technical Report on the
Pirquitas Mine, Jujuy Province, Argentina" dated December 23, 2011. For additional information
about the Pirquitas mine, readers are encouraged to review our most
recently filed Annual Information Form.
- Mineral Reserves estimate is reported at a cut-off grade of
$21.31 per tonne net smelter return
("NSR").
- Mineral Resources estimate for the open pit is reported at a
cut-off grade of $22.06 per tonne
NSR, constrained within an open pit resource shell. Underground
Mineral Resources (Pirquitas UG) are reported below the open pit
resource pit shell; Mineral Resources for the Mining Area (which
includes San Miguel, Chocaya,
Oploca and Potosà zones) are reported at a cut-off grade of
$85.00 per tonne NSR; and Mineral
Resources for the Cortaderas Area are reported at a cut-off grade
of $75.00 per tonne NSR.
- Mineral Reserves and Mineral Resources in surface stockpiles
are reported at a cut-off grade of $23.25 per tonne NSR and $24.00 per tonne NSR, respectively, and were
determined based on grade, rehandling costs and recovery estimates
from metallurgical testing.
San Luis
- Mineral Reserves estimate is reported at a cut-off grade of 6.9
g/t gold equivalent, using a gold price of $800 per ounce and a silver price of $12.50 per ounce.
- Mineral Resources estimate is reported at a cut-off grade of
6.0 g/t gold equivalent, using a gold price of $600 per ounce and a silver price of $9.25 per ounce.
Pitarrilla
- Mineral Resources estimate for the open pit is reported at a
cut-off grade of $16.38 per tonne NSR
for direct leach ore, using an average recovery of 56% silver, and
$16.40 per tonne NSR for
flotation/leach ore, using average recoveries of 75% silver, 73%
lead and 75% zinc, constrained within an open pit resource
shell.
- Underground Mineral Resources (Pitarrilla UG) are reported
below the constrained open pit resource pit shell above a cut-off
grade of $80.00 per tonne NSR, using
grade shells that have been trimmed to exclude distal and lone
blocks that would not support development costs.
Amisk
- Mineral Resources estimate was prepared by Sebastien Bernier, P.Geo., Principal Consultant
(Resource Geology), SRK Consulting (Canada) Inc., a Qualified Person. Mineral
Resources estimate is reported at a cut-off grade of 0.40 grams of
gold equivalent per tonne using a price of $1,100 per ounce of gold and $16.00 per ounce of silver inside conceptual pit
shells optimized using metallurgical and process recovery of 87%,
overall ore mining and processing costs of $15.00 per tonne and overall pit slope of
fifty-five degrees.
Qualified Persons
Except as otherwise set out herein, the scientific and technical
information contained in this news release relating to the Marigold
mine has been reviewed and approved by Thomas Rice and James N.
Carver, each of whom is a SME Registered Member and a
Qualified Person under NI 43-101. Mr. Rice is our Technical
Services Manager and Mr. Carver is our Chief Geologist at the
Marigold mine. The scientific and technical data contained in this
news release relating to the Seabee Gold Operation has been
reviewed and approved by Cameron
Chapman, P.Eng., and Jeffrey
Kulas, P. Geo., each of whom is a Qualified Person under NI
43-101. Mr. Chapman is our General Manager and Mr. Kulas is our
Manager Geology, Mining Operations at the Seabee Gold Operation.
The scientific and technical information contained in this news
release relating to the Pirquitas mine has been reviewed and
approved by Bruce Butcher, P.Eng.,
and F. Carl Edmunds, P. Geo., each
of whom is a Qualified Person under NI 43-101. Mr. Butcher is our
Director, Mine Planning and Mr.
Edmunds is our Chief Geologist.
Management Discussion & Analysis and Conference
Call
This news release should be read in conjunction with our audited
consolidated financial statements and the MD&A as filed with
the Canadian Securities Administrators and available at
www.sedar.com or our website at www.silverstandard.com.
- Conference call and webcast: Friday,
February 24, 2017, at 11:00 a.m.
EST.
|
|
Toll-free in U.S. and
Canada:
|
|
|
|
+1 (800)
319-4610
|
|
|
All other
callers:
|
|
|
|
+1 (416)
915-3239
|
|
|
Webcast:
|
|
|
|
ir.silverstandard.com
|
|
|
|
|
|
|
|
- The conference call will be archived and available at
ir.silverstandard.com.
Audio replay will be available for two weeks by calling:
|
|
Toll-free in U.S. and
Canada:
|
|
|
|
+1 (855) 669-9658,
replay code 1093
|
|
|
All other
callers:
|
|
|
|
+1 (412) 317-0088,
replay code 1093
|
|
|
|
|
|
|
|
About Silver Standard
Silver Standard is a Canadian-based precious metals producer
with three wholly-owned and operated mines, including the Marigold
gold mine in Nevada, U.S., the
Seabee Gold Operation in Saskatchewan,
Canada and the Pirquitas silver mine in Jujuy Province,
Argentina. We also have two
feasibility stage projects and an extensive portfolio of
exploration properties throughout North and South America. We are committed to delivering
safe production through relentless emphasis on Operational
Excellence. We are also focused on growing production and Mineral
Reserves through the exploration and acquisition of assets for
accretive growth, while maintaining financial strength.
For further information contact:
W. John DeCooman, Jr.
Vice President, Business Development and Strategy
Silver Standard Resources Inc.
Vancouver, BC
N.A. toll-free: +1 (888) 338-0046
All others: +1 (604) 689-3846
E-Mail: invest@silverstandard.com
To receive Silver Standard's news releases by e-mail, please
register using the Silver Standard website at
www.silverstandard.com.
Cautionary Note Regarding Forward-Looking
Statements:
This news release contains forward-looking information within
the meaning of Canadian securities laws and forward-looking
statements within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995 (collectively, "forward-looking
statements"). All statements, other than statements of historical
fact, are forward-looking statements.
Generally, forward-looking statements can be identified by
the use of words or phrases such as "expects," "anticipates,"
"plans," "projects," "estimates," "assumes," "intends," "strategy,"
"goals," "objectives," "potential," "believes," or variations
thereof, or stating that certain actions, events or results "may,"
"could," "would," "might" or "will" be taken, occur or be achieved,
or the negative of any of these terms or similar expressions. The
forward-looking statements in this news release relate to, among
other things: future production of gold, silver and other metals;
future costs of inventory, and cash costs, total costs and AISC per
payable ounce of gold, silver and other metals sold; expected
exploration and development expenditures; the prices of gold,
silver and other metals; the timing of cessation of stockpile
processing at the Pirquitas mine; estimated expenses relating to
remediation at Pirquitas; the effects of laws, regulations and
government policies affecting our operations or potential future
operations; future successful development of our projects; the
expected timing to complete engineering studies at the Chinchillas
project and make a decision about whether to move forward with the
project; the sufficiency of our current working capital,
anticipated operating cash flow or our ability to raise necessary
funds; estimated production rates for gold, silver and other metals
produced by us; timing of production and the cash costs, total
costs and AISC of production at the Marigold mine, the Seabee Gold
Operation and the Pirquitas mine; the estimated cost of sustaining
capital; ongoing or future development plans and capital
replacement, improvement or remediation programs; the expected
benefits of the new leach pad at the Marigold mine; the estimates
of expected or anticipated economic returns from our mining
projects, including future sales of metals, concentrate or other
products produced by us; our ability to expand Mineral Resources
and convert Mineral Resources into Mineral Reserves; and our plans
and expectations for our properties and
operations.
These forward-looking statements are subject to a variety of
known and unknown risks, uncertainties and other factors that could
cause actual events or results to differ from those expressed or
implied, including, without limitation, the following: uncertainty
of production, development plans and cost estimates for the
Marigold mine, the Seabee Gold Operation, the Pirquitas mine and
our projects; our ability to replace Mineral Reserves; subject to
exercising our election to proceed, our ability to complete and
successfully integrate Golden
Arrow's Chinchillas project, on a joint venture basis, into
our current operations; commodity price fluctuations; political or
economic instability and unexpected regulatory changes; currency
fluctuations; the possibility of future losses; general economic
conditions; fully realizing the value of our shareholdings in
Pretium Resources Inc. and our other marketable securities, due to
changes in price, liquidity or disposal cost of such marketable
securities; potential export duty and related interest on past
production and sales of silver concentrate from the Pirquitas mine;
counterparty and market risks related to the sale of our
concentrate and metals; uncertainty in the accuracy of Mineral
Reserves and Mineral Resources estimates and in our ability to
extract mineralization profitably; differences in U.S. and Canadian
practices for reporting Mineral Reserves and Mineral Resources;
lack of suitable infrastructure or damage to existing
infrastructure; future development risks, including start-up delays
and cost overruns; our ability to obtain adequate financing for
further exploration and development programs and opportunities;
uncertainty in acquiring additional commercially mineable mineral
rights; delays in obtaining or failure to obtain governmental
permits, or non-compliance with our permits; our ability to attract
and retain qualified personnel and management; potential labour
unrest, including labour actions by our unionized employees at the
Pirquitas mine; the impact of governmental regulations, including
health, safety and environmental regulations, including increased
costs and restrictions on operations due to compliance with such
regulations; reclamation and closure requirements for our mineral
properties; failure to effectively manage our tailings facilities;
social and economic changes following closure of a mine, including
the expected closure of the Pirquitas mine in 2017, may lead to
adverse impacts and unrest; unpredictable risks and hazards related
to the development and operation of a mine or mineral property that
are beyond our control; indigenous peoples' title claims and rights
to consultation and accommodation may affect our existing
operations as well as development projects and future acquisitions;
assessments by taxation authorities in multiple jurisdictions;
claims and legal proceedings, including adverse rulings in
litigation against us and/or our directors or officers; compliance
with anti-corruption laws and internal controls, and increased
regulatory compliance costs; complying with emerging climate change
regulations and the impact of climate change, including extreme
weather conditions; recoverability of deferred consideration to be
received in connection with recent divestitures; uncertainties
related to title to our mineral properties and the ability to
obtain surface rights; the sufficiency of our insurance coverage;
civil disobedience in the countries where our mineral properties
are located; operational safety and security risks; actions
required to be taken by us under human rights law; competition in
the mining industry for mineral properties; shortage or poor
quality of equipment or supplies; an event of default under our
Notes may significantly reduce our liquidity and adversely affect
our business; failure to meet covenants under our senior secured
revolving credit facility; conflicts of interest that could arise
from certain of our directors' involvement with other natural
resource companies; information systems security threats; and those
other various risks and uncertainties identified under the heading
"Risk Factors" in our most recent Annual Information Form filed
with the Canadian securities regulatory authorities and included in
our most recent Annual Report on Form 40-F filed with the U.S.
Securities and Exchange Commission ("SEC").
This list is not exhaustive of the factors that may affect
any of our forward-looking statements. Our forward-looking
statements are based on what our management considers to be
reasonable assumptions, beliefs, expectations and opinions based on
the information currently available to it. Assumptions have been
made regarding, among other things, our ability to carry on our
exploration and development activities, our ability to meet our
obligations under our property agreements, the timing and results
of drilling programs, the discovery of Mineral Resources and
Mineral Reserves on our mineral properties, the timely receipt of
required approvals and permits, including those approvals and
permits required for successful project permitting, construction
and operation of our projects, the price of the minerals we
produce, the costs of operating and exploration expenditures, our
ability to operate in a safe, efficient and effective manner, our
ability to obtain financing as and when required and on reasonable
terms, and our ability to continue operating the Marigold mine, the
Seabee Gold Operation and the Pirquitas mine. You are cautioned
that the foregoing list is not exhaustive of all factors and
assumptions which may have been used. We cannot assure you that
actual events, performance or results will be consistent with these
forward-looking statements, and management's assumptions may prove
to be incorrect. Our forward-looking statements reflect current
expectations regarding future events and operating performance and
speak only as of the date hereof and we do not assume any
obligation to update forward-looking statements if circumstances or
management's beliefs, expectations or opinions should change other
than as required by applicable law. For the reasons set forth
above, you should not place undue reliance on forward-looking
statements.
Cautionary Note to U.S. Investors
This news release includes Mineral Reserves and Mineral
Resources classification terms that comply with reporting standards
in Canada and the Mineral Reserves
and the Mineral Resources estimates are made in accordance with NI
43-101. NI 43-101 is a rule developed by the Canadian Securities
Administrators that establishes standards for all public disclosure
an issuer makes of scientific and technical information concerning
mineral projects. These standards differ significantly from the
requirements of the SEC set out in Industry Guide 7. Consequently,
Mineral Reserves and Mineral Resources information included in this
news release is not comparable to similar information that would
generally be disclosed by domestic U.S. reporting companies subject
to the reporting and disclosure requirements of the SEC. Under SEC
standards, mineralization may not be classified as a "reserve"
unless the determination has been made that the mineralization
could be economically produced or extracted at the time the reserve
determination is made.
In addition, the SEC's disclosure standards normally do not
permit the inclusion of information concerning "Measured Mineral
Resources," "Indicated Mineral Resources" or "Inferred Mineral
Resources" or other descriptions of the amount of mineralization in
mineral deposits that do not constitute "reserves" by U.S.
standards in documents filed with the SEC. U.S. investors should
understand that "Inferred Mineral Resources" have a great amount of
uncertainty as to their existence and great uncertainty as to their
economic and legal feasibility. Moreover, the requirements of NI
43-101 for identification of "reserves" are also not the same as
those of the SEC, and reserves reported by us in compliance with NI
43-101 may not qualify as "reserves" under SEC standards.
Accordingly, information concerning mineral deposits set forth
herein may not be comparable with information made public by
companies that report in accordance with U.S. standards.
Cautionary Note Regarding Non-GAAP Measures
This news release includes certain terms or performance
measures commonly used in the mining industry that are not defined
under International Financial Reporting Standards ("IFRS"),
including cash costs, total costs and AISC per payable ounce of
precious metals sold, realized metal prices, adjusted income (loss)
before tax, adjusted income tax (expense), adjusted net income
(loss) and adjusted basic earnings (loss) per share. Non-GAAP
financial measures do not have any standardized meaning prescribed
under IFRS and, therefore, they may not be comparable to similar
measures reported by other companies. We believe that, in addition
to conventional measures prepared in accordance with IFRS, certain
investors use this information to evaluate our performance. The
data presented is intended to provide additional information and
should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with IFRS. These
non-GAAP measures should be read in conjunction with our
consolidated financial statements. Readers should refer to
"Non-GAAP and Additional GAAP Financial Measures" in section 13 of
our MD&A, available under our corporate profile at
www.sedar.com or on our website at www.silverstandard.com, for a
more detailed discussion of how we calculate such measures and for
a reconciliation of such measures to IFRS terms.
SOURCE Silver Standard Resources Inc.