Stack of Physical Silver Bars

Global X Funds, the New York-based provider of Exchange Traded Funds, launched today the Global X Silver Miners ETF (SIL 25.00 [-0.22]). This exchange traded fund has a 0.65% expense ratio.

The Global X Silver Miners ETF is the only ETF in the world targeting silver mining companies. It tracks the Solactive Global Silver Miners Index, comprised of the largest and most liquid silver mining companies in the world. The majority of holdings are Canadian based companies but also include companies based in the US, Mexico, Peru, and Russia. As of March 31, 2010, the largest index components were Fresnillo, Industrias Penoles, Silver Wheaton, and Pan American
Silver.

Silver benefits from being an investment asset and from industrial and consumer applications. According to commodities analysts, silver demand should remain strong as a result of both investment interest and increased use in the consumer and industrial sectors. 54% of silver demand is industrial, and according BMO Capital Markets, silver industrial demand is expected to rise 19% this year.

Because SIL invests in silver mining companies, it provides a differentiated investment profile to investing in physical silver. For example, according to Nick Barisheff, President of Bullion Management Group Inc., “at the beginning of a bull market, it is well documented that mining shares typically rise, and often outperform bullion.”

“SIL provides investors with efficient and targeted exposure to silver mining companies, respectively. The metals are essential for the global economy and may see growing demand as the economic recovery continues,” said Bruno del Ama, CEO of Global X Funds.

Pirquitas Mine

Silver Standard Resources Inc. (SSRI 17.58 [-0.49]) provides the following updates on the Pirquitas Mine and principal development projects and reports on headline financial results from the company’s fourth quarter of 2009. Effective January 1, 2009, the company adopted the U.S. dollar as its reporting currency.

Pirquitas Mine

Pirquitas produced 1.1 million ounces during the year. Since December 1, 2009, the date of achievement of commercial production, the mine produced to year-end 545,600 ounces of silver at a cash production cost of $8.99 per silver ounce(1). Total cash costs, including transportation, treatment, refining, export taxes and royalties, were $16.57 per silver ounce(1). During the month, the company sold 460,100 ounces of silver at a realized price of $17.49 per ounce(1) and, after deducting treatment and refining charges, recorded revenues of $5.4 million.

The plant has a crushing capacity of 6,000 tonnes per day. This feeds a pre-concentration plant that is designed to feed the mill at a rate of 3,200 tonnes per day. The mill’s feasibility design capacity was exceeded in both November and December.

The mill is processing transitional ore and is anticipated to process sulphide ore at full capacity during the second quarter of 2010. The tin circuit is commissioned and will be operated when suitable material is available in Q2 2010. Production in 2010 is planned to be seven million ounces of silver at an average cash production cost of $9.00 per ounce of silver net of by-product credits.