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Silver Standard (SSRM) Q4 Earnings Beat Estimates, Up Y/Y
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Silver Standard Resources Inc. (SSRM - Free Report) reported fourth-quarter 2023 adjusted earnings per share of 59 cents, which beat the Zacks Consensus Estimate of 36 cents. The bottom-line figure marked a solid 392% improvement from earnings of 12 cents per share reported in the year-ago quarter, aided by an increase in gold equivalents sold and higher average realized prices for gold and silver.
The company reported that on Feb 13, 2024, operations at Çöpler have been suspended as a result of a significant slip on the heap leach pad. Containment and remediation efforts, which are being directed by the Turkish government and supported by the company, are underway. Also discussions are progressing to move the heap leach material to a permanent storage location. SSRM is evaluating the estimated remediation costs and expects to record a remediation liability in the first quarter of 2024.
Due to this incident, SSRM has retracted its guidance for Çöpler and Türkiye. The company has also suspended quarterly dividend payments and the automatic share purchase plan.
The company recognized a non-cash impairment at Çöpler in the fourth quarter of 2023 as a result of the removal of C2 Mineral Resources from its consolidated Mineral Reserves and Mineral Resources statement. Including this, Silver Standard reported a loss of $1.07 per share in the fourth quarter of 2023 against the year-ago quarter’s earnings of 43 cents per share.
Silver Standard Resources Inc. Price, Consensus and EPS Surprise
Silver Standard’s total revenues increased 39% year over year to $426 million during the fourth quarter.
Gold equivalent produced increased 15.6% year on year to 211,226 ounces in the reported quarter. Gold equivalents sold rose 19.7% to 206,310 ounces from the year-ago quarter.
Average realized gold price rose 13% to $1,976 per ounce from $1,749 per ounce in the year-ago quarter. Average realized silver price was $23.23 per ounce in the quarter, reflecting year-over-year growth of 25%.
Cash cost per gold equivalent ounce dipped 1% year over year to $1,008 in the fourth quarter. All-in sustaining costs per gold equivalent ounce sold declined 2% to $1,326 in the reported quarter from the year-ago quarter’s $1,358.
SSRM reported an operating loss of $297.6 million in the fourth quarter of 2023 against an operating income of $39.4 million in the fourth quarter of 2022.
Cash Flow
As of Dec 31, 2023, cash and cash equivalents were $492.4 million, lower than $655.5 million as of Dec 30, 2022. The company generated around $422 million of cash flow from operations in 2023 compared with $161 million in 2022. Free cash flow was $198.3 million in 2023, substantially higher than $23.4 million in 2022.
2023 Results
Silver Standard’s adjusted earnings per share surged 93% year over year to $1.29 in 2023 and beat the Zacks Consensus Estimate of $1.10. Total revenues increased 24% year over year to $1.43 billion, surpassing the consensus estimate of $1.41 billion.
Guidance
For 2024, the company expects to produce 155,000 to 175,000 gold equivalent ounces from the Marigold mine. The Seabee mine is expected to produce 75,000-85,000 gold equivalent ounces and Pune’s production is at 110,000-120,000 gold equivalent ounces.
Price Performance
Shares of Silver Standard have lost 66.5% over the past year compared with the industry’s 5.2% decline.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Silver Standard currently carries a Zacks Rank #4 (Sell).
The Zacks Consensus Estimate for Carpenter Technology’s 2024 earnings is pegged at $3.96 per share. The consensus estimate for 2024 earnings has moved 11% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 14.3%. CRS shares have gained 34.5% in a year.
The Zacks Consensus Estimate for Ecolab’s 2024 earnings is pegged at $6.39 per share, indicating an increase of 22.7% from the prior year’s reported number. It has an average trailing four-quarter earnings surprise of 1.7%. ECL shares have gained 39.3% in a year.
Alpha Metallurgical Resources has an average trailing four-quarter earnings surprise of 9.6%. The Zacks Consensus Estimate for AMR’s 2024 earnings is pegged at $43.05 per share. Earnings estimates have moved 48% north in the past 60 days. AMR shares have rallied 161% in a year’s time.
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Silver Standard (SSRM) Q4 Earnings Beat Estimates, Up Y/Y
Silver Standard Resources Inc. (SSRM - Free Report) reported fourth-quarter 2023 adjusted earnings per share of 59 cents, which beat the Zacks Consensus Estimate of 36 cents. The bottom-line figure marked a solid 392% improvement from earnings of 12 cents per share reported in the year-ago quarter, aided by an increase in gold equivalents sold and higher average realized prices for gold and silver.
The company reported that on Feb 13, 2024, operations at Çöpler have been suspended as a result of a significant slip on the heap leach pad. Containment and remediation efforts, which are being directed by the Turkish government and supported by the company, are underway. Also discussions are progressing to move the heap leach material to a permanent storage location. SSRM is evaluating the estimated remediation costs and expects to record a remediation liability in the first quarter of 2024.
Due to this incident, SSRM has retracted its guidance for Çöpler and Türkiye. The company has also suspended quarterly dividend payments and the automatic share purchase plan.
The company recognized a non-cash impairment at Çöpler in the fourth quarter of 2023 as a result of the removal of C2 Mineral Resources from its consolidated Mineral Reserves and Mineral Resources statement. Including this, Silver Standard reported a loss of $1.07 per share in the fourth quarter of 2023 against the year-ago quarter’s earnings of 43 cents per share.
Silver Standard Resources Inc. Price, Consensus and EPS Surprise
Silver Standard Resources Inc. price-consensus-eps-surprise-chart | Silver Standard Resources Inc. Quote
Operational Update
Silver Standard’s total revenues increased 39% year over year to $426 million during the fourth quarter.
Gold equivalent produced increased 15.6% year on year to 211,226 ounces in the reported quarter. Gold equivalents sold rose 19.7% to 206,310 ounces from the year-ago quarter.
Average realized gold price rose 13% to $1,976 per ounce from $1,749 per ounce in the year-ago quarter. Average realized silver price was $23.23 per ounce in the quarter, reflecting year-over-year growth of 25%.
Cash cost per gold equivalent ounce dipped 1% year over year to $1,008 in the fourth quarter. All-in sustaining costs per gold equivalent ounce sold declined 2% to $1,326 in the reported quarter from the year-ago quarter’s $1,358.
SSRM reported an operating loss of $297.6 million in the fourth quarter of 2023 against an operating income of $39.4 million in the fourth quarter of 2022.
Cash Flow
As of Dec 31, 2023, cash and cash equivalents were $492.4 million, lower than $655.5 million as of Dec 30, 2022. The company generated around $422 million of cash flow from operations in 2023 compared with $161 million in 2022. Free cash flow was $198.3 million in 2023, substantially higher than $23.4 million in 2022.
2023 Results
Silver Standard’s adjusted earnings per share surged 93% year over year to $1.29 in 2023 and beat the Zacks Consensus Estimate of $1.10. Total revenues increased 24% year over year to $1.43 billion, surpassing the consensus estimate of $1.41 billion.
Guidance
For 2024, the company expects to produce 155,000 to 175,000 gold equivalent ounces from the Marigold mine. The Seabee mine is expected to produce 75,000-85,000 gold equivalent ounces and Pune’s production is at 110,000-120,000 gold equivalent ounces.
Price Performance
Shares of Silver Standard have lost 66.5% over the past year compared with the industry’s 5.2% decline.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
Silver Standard currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the basic materials space are Carpenter Technology Corporation (CRS - Free Report) , Ecolab Inc. (ECL - Free Report) and Alpha Metallurgical Resources, Inc. (AMR - Free Report) . Each of these three companies currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Carpenter Technology’s 2024 earnings is pegged at $3.96 per share. The consensus estimate for 2024 earnings has moved 11% north in the past 60 days. It has an average trailing four-quarter earnings surprise of 14.3%. CRS shares have gained 34.5% in a year.
The Zacks Consensus Estimate for Ecolab’s 2024 earnings is pegged at $6.39 per share, indicating an increase of 22.7% from the prior year’s reported number. It has an average trailing four-quarter earnings surprise of 1.7%. ECL shares have gained 39.3% in a year.
Alpha Metallurgical Resources has an average trailing four-quarter earnings surprise of 9.6%. The Zacks Consensus Estimate for AMR’s 2024 earnings is pegged at $43.05 per share. Earnings estimates have moved 48% north in the past 60 days. AMR shares have rallied 161% in a year’s time.