The acquisition of Marigold generated significant value for Silver Standard Resources Inc. (USA) SSRI, Citi’s Alexander Hacking said in a report. He initiated coverage of Silver Standard with a Neutral rating and a price target of $14.
Following the Marigold acquisition, the focus on cost reduction resulted in significant upside versus the purchase price, analyst Alexander Hacking mentioned. He added that Silver Standard was now FCF positive and had a net cash position.
Investment Concerns
Silver Standard’s Pirquitas silver mine in Argentina would end San Miguel open pit activities in 2016 and begin lower grade stockpile processing. Stockpile processing would likely extend through late 2017.
The company is exploring the Chinchillas silver-lead-zinc deposit “which could extend the life at Pirquitas, but this may not prove economical,” Hacking wrote. He added that the valuation on the stock was “relatively full.”
Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win a $20 Amazon gift card!
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.