BMO Provides Color on Silver Standard Resources

BMO provided color on Silver Standard Resources SSRI. In a research report published today, the rating agency commented on the company's sale of its silver project to its Australian rival. In the report, BMO states, “Silver Standard announced that it sold the Bowdens silver project located in NSW, Australia to Kingsgate Consolidated Ltd. (KCN-ASX) for A$75M (US$83M). Under the terms of the agreement, SSRI will receive A$35M in cash and A$30M in KCN shares upon closing (expected in October 2011), A$5M in cash on December 2011 and A$5M in cash on June 2012. SSRI estimates the pre-tax gain from the sale to be ~US$60M.” At the moment, the rating agency has an Outperform rating and a price target of $40 placed on the company's stock. On Monday, SSRI added 2.41% to its value to finish the day at $28.06.