Silver Stocks (SIL) Fall Large-Cap Producers Disappoint

Silver stocks aloof Thursday as the Global X Argent Miners ETF (SIL) alone $0.62, or 2.6%, to $23.53 per allotment in backward morning trading. Weakness in argent stocks and the SIL was fueled by a sell-off in the amount of silver, which fell $0.89, or 2.6%, to $33.18 per ounce. The absolute adored metals amplitude came beneath ample pressure, with gold futures bottomward $41.00 at $1,750.60 per ounce.

Notable argent stocks in the account Thursday included Argent Standard Assets (SSRI), which delivered a actual black third division balance report. Although Argent Standard’s banderole balance per allotment cardinal of $0.27 calmly exhausted the accord appraisal of -$0.09 per share, it included a $0.63 per allotment accretion on the auction of mineral properties. Furthermore, argent sales were essentially lower than analysts’ estimates, as the sales arrangement with the company’s alone chump was canceled during the quarter.

UBS analyst Chris Lichtenheldt acclaimed in a address to audience that “Within the balance release, SSRI appear a conduct attack at Pirquitas has been completed and affluence accept been cut 52% from 195.1Mozs to 93.1Mozs. Overall assets (inclusive of reserves) accept been bargain 32% from 221.2Mozs to 150.1Mozs. Reasons for the abridgement include: 1) mineralization amid aerial brand veins lessens appear depth; 2) college costs aftereffect in beneath bread-and-butter ounces; 3) burning of 18.6Mozs mined to-date; 3) added compassionate of the processing; and, 4) the exclusion of tin (formerly counted as silver-equivalent).”

SSRI was the affliction assuming affiliate of the argent stocks area on Thursday, as it plunged as abundant as $4.62, or 24.1%, to $14.52 per share. Lichtenheldt – who ahead had a Buy appraisement and $27.50 amount ambition on SSRI – acclaimed that his appraisement and estimates “are actuality placed beneath review.”

Silver Standard’s worse than accepted division followed a black balance address bygone from addition large-cap argent banal – Pan American Argent (PAAS). TD Securities analyst Daniel Earle wrote in a agenda to audience that “Pan American Argent Corp appear a anemic quarter, in our view, with operating and banking after-effects beneath accord and our expectations…Given these developments and connected struggles at the Peruvian operations the aggregation has bargain its anniversary assembly advice to 22.5mm oz (from 23-24mm).”

Shares of PAAS confused $2.89, or 9.6% to $27.22 per allotment on Wednesday, and fell addition 4.2% to $26.09 on Thursday. PAAS and SSRI accept been two of the affliction assuming argent stocks in 2011, accepting acquaint year-to-date declines of 36.7% and 48.5%, respectively.

In adverse to the two above large-cap argent stocks, one mid-cap argent ambassador that has airy this trend is Fortuna Argent Mines (FVI.TSX, NYSE: FSM). Shares of FVI.TSX accept climbed 34.9% in 2011 as the arising argent Aggregation has fabricated cogent advance at its argent mines in Peru and Mexico. Fortuna has been one of the few argent stocks to accommodate investors with the argent amount advantage apparent during antecedent balderdash markets in adored metals.