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Message: SSRI - BMO write up

SSRI is in Peter's model portfolio I believe. For those interested below is the recent BMO write up on it.

Stock Rating: Market Perform Stock Price: US$17.11 Target Price: US$22.00

August 6, 2010

Brief Research Note

Silver

Andrew Kaip, P.Geo.

(416) 359-7224

Andrew.Kaip@bmo.com

Assoc: Heather Taylor / Alexandra Syrnyk

"SSRI reported a Q2/10 net loss of US$15.2M or US$(0.19)/share.Adjusting for a foreign exchange loss, SSRI reported EPS ofUS$(0.17)/share, lower than the BMO Research estimate of a loss ofUS$(0.07)/sh and slightly below consensus at US$(0.15)/share. Production of 1.7Moz of silver was above the BMO estimate for 1.4Moz of silver owing to higher-than-expected silver recoveries (64% versus 55%). Sales of 1.1Moz of silver during the quarter were lower than expected and contributed to the below forecasted earnings. Higher silver recoveries were a result of mining accessing a higher proportion of sulphide mineralization and mill optimization. Cash costs also came in lower than forecast at US$14.98/oz of silver versus BMO at US$15.96/oz of silver. On another positive note, SSRI produced 0.9Mlbs of zinc concentrate.BMO forecasts had not anticipated revenue from zinc concentrates until the latterhalf of the year. Progress on the production side has been seen through July with the mine producing 614koz of silver at 277g/t and recoveries of 65%. The company is now guiding toward zinc production of 3.0Mlb for 2010 and decreased tin production to 0.6Mlb vs. the previous estimate for 0.8Mlb due to low tin grades in initial levels of the mine. The company has maintained silver production guidance of 7Moz at cash costs of US$10/oz (net of by-products)."

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