Silver Standard Resources Inc. (SSRM - Free Report) 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.
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 - Free Report) , Fortescue Metals Group Limited (FSUGY - Free Report) and BHP Group (BHP - Free Report) . 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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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Silver Standard Resources Inc. (SSRM - Free Report) 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.
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 - Free Report) , Fortescue Metals Group Limited (FSUGY - Free Report) and BHP Group (BHP - Free Report) . 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.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research SherazMian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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