“SSRI reported headline Q4 EPS of $4.75; however after adjusting for the gain from the sale of Snowfield in Dec 2010, and other smaller items, we view adjusted EPS as closer to $0.10. We were forecasting Q4 EPS of $0.08 and consensus was $0.13.”

Silver recoveries at Pirquitas improved significantly; but still work to do:

“SSRI had pre-released Q4 silver production of 2Mozs, but has now disclosed Q4 cash costs of $16.07/oz, slightly higher than our $14.50/oz forecast. With consistent mining of sulphide ore in Q4 (vs. some oxide previously), Pirquitas reported silver recoveries of 76.3% in Q4 (up from 66.3% in Q3 and closing in on design levels around 78%). In terms of work ahead, debottlenecking of the new gravity circuit continues; zinc production remains lower than design levels; and, meaningful tin production has yet to occur.”

2011 production guidance still 8.5Mozs; $15/oz cash cost introduced:

“SSRI reiterated previous 2011 silver production guidance of 8.5Mozs and introduced 2011 cash cost guidance of $15/oz based partly on 10Mlbs of zinc by-product (but no tin guided yet). Our current 2011 forecasts include 7.8Mozs of silver at cash costs of $8.40/oz (including higher zinc and tin production). We will be looking for more detail on the conf call (March 2nd) at 11am.”