November 10, 2011 / 4:19 PM / 6 years ago

UPDATE 1-Silver Standard cuts resource estimate for Argentina mine, shares fall

Nov 10 (Reuters) - Silver Standard Resources Inc cut its resource estimate for the Pirquitas mine in Argentina, sending its shares to their lowest in nearly three years.

The company also sees operating cost going up from $22.00 per tonne to $35.52 per tonne of silver ore.

Silver Standard, which has a pipeline of 15 projects in Argentina, Peru, Canada, Chile and the United States, reported a net profit of $21.8 million, or 27 cents per basic share, compared with a net loss of $10.4 million, or 13 cents per basic share, a year ago.

The Pirquitas mine, where production resumed last week, produced 1.6 million ounces of silver, compared with 1.9 million ounces in the year-ago quarter.

The Pirquitas mill was shut down in July and then again in September due to a gearbox failure, which prompted the Canadian miner to cut its 2011 silver production outlook to 7.3-7.6 million ounces last month.

Total production cost was $24.55 per ounce in the third quarter, compared with $19.89 last year.

Total revenue from the Pirquitas mine was down 37 percent to $26.2 million.

Shares of the company fell 24 percent to C$14.83 on Thursday morning on the Toronto Stock Exchange. They fell by a similar percentage to $14.52 on Nasdaq. (Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Saumyadeb Chakrabarty)

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