Deutsche Bank Downgrades Silver Standard Resources (SSRI) to Sell

October 2, 2013 7:15 AM EDT Send to a Friend
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Price: $5.34 -0.74%

Rating Summary:
    3 Buy, 2 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 24 | Down: 27 | New: 14
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Deutsche Bank downgraded Silver Standard Resources (NASDAQ: SSRI) from Hold to Sell and cuts its price target from C$7.50 to C$4.50. The firm sees an inability to fund 14m oz p.a. Pitarrilla development without issuing equity.

"We estimate that the company will post negative EBITDA in 2014-17, while existing net cash position turns into a $1bn net debt by the time the mine comes on-line in 2017 thanks in large part to the project's $741m capital budget," the analyst notes. "Phased development is another option and a plan to bring in a joint-venture partner is openly contemplated, however, the latter would reduce attributable EBITDA to Silver Standard shareholders. We note that the currently proposed Mexico’s 8% EBITDA precious miner tax, if passed, would materially impact Pitarrilla's economics possible delaying its start or necessitating a phased development."

For an analyst ratings summary and ratings history on Silver Standard Resources click here. For more ratings news on Silver Standard Resources click here.

Shares of Silver Standard Resources closed at $6.04 yesterday.


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