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m i n in g Silver Standard Resources is evolving into a silver production play by Mike Kachanovsky Although volatile since the turn of the century, the price of silver has been trending higher. This higher price regime has improved the economic favourability of many deposits that were overlooked during the long bear cycle that preceded the current bull market. As a result, exploration work is underway worldwide and new silver mines are being developed. As well, more mining companies are actively building leverage to silver resources. However, the universe of silver mining companies is still relatively small and perhaps half a dozen big cap names provide options at the top of the food chain for investment. A longstanding company, Silver Standard Resources Inc. [TSX-SSO; NASDAQ-SSRI] established itself before silver started the current bull cycle. The company operated for many years with the belief that silver was undervalued in the market, and acquired late stage silver exploration projects and development assets in anticipation of an eventual recovery. This has proven to be a brilliant strategy. The company now controls a portfolio of over 15 projects in various stages of development in six different countries. Silver Standard has built greater leverage to combined ounces of silver in the ground through defined deposits than any other publicly listed company. The concept of strong management is often spoken of in the mining sector, but it means different things to different people. If we define it as capable leadership that sets high objectives to achieve success, and build shareholder value, then Silver Standard is indeed blessed with a very strong management team. In January, management reported operating results that exceeded expectations, and another successful year of exploration work for 2012. This solid performance is notable in that it comes at a time when most other senior mining companies are encountering difficulties on the operations front, many of them recently reporting earnings disappointments. However, Silver Standard has a long track record of delivering on management expectations. Silver has sustained a price in the range of US $30 per ounce during the last few years. The timing has been good for the company, which has moved to a long 54 www.resourceworld.com Pirquitas Mine, located in the Province of Jujuy, Argentina. Photo courtesy of Silver Standard Resources Inc. february 2013