SSR Mining’s Earnings Call: Mixed Sentiments and Future Prospects

Ssr Mining ((TSE:SSRM)) has held its Q3 earnings call. Read on for the main highlights of the call.

The recent earnings call for SSR Mining presented a mixed sentiment, reflecting both optimism and caution. While the company boasts significant cash reserves and progress on key projects like Hod Maden and CC&V, challenges such as high production costs and lower-than-expected grades at Seabee have tempered enthusiasm. The strong liquidity position and upcoming project milestones offer a positive outlook, although concerns about production guidance and costs remain.

Strong Cash Position

SSR Mining ended the quarter with an impressive $409 million in cash and total liquidity exceeding $900 million. This robust financial position ensures the company has the capacity to fund its growth initiatives, providing a solid foundation for future expansion.

Solid Free Cash Flow

The company generated $72 million of free cash flow before working capital adjustments, underscoring strong margins even amidst ongoing investments in growth. This financial performance highlights SSR Mining’s ability to maintain profitability while pursuing strategic projects.

Hod Maden Progress

Significant advancements have been made on the Hod Maden project, with $44 million spent year-to-date. The comprehensive update in the new technical report reinforces the project’s attractive asset returns, positioning it as a key component of SSR Mining’s growth strategy.

CC&V Performance

The Cripple Creek & Victor (CC&V) mine produced 30,000 ounces of gold, contributing nearly $115 million in asset-level free cash flow since its acquisition. This performance underscores the mine’s long-term viability, with a projected life of over 10 years.

Puna Production

Puna operations continued their solid performance, producing 2.4 million ounces of silver at an all-in sustaining cost (AISC) of $1,354 per ounce. This consistent output reinforces Puna’s role as a reliable contributor to SSR Mining’s portfolio.

High All-In Sustaining Costs

The company produced 103,000 gold equivalent ounces at an AISC of $2,359 per ounce, which is trending towards the high end of the annual guidance. This highlights the ongoing challenge of managing production costs effectively.

Seabee Challenges

Seabee faced difficulties, producing 9,000 ounces at an AISC of $3,003 per ounce. This was due to lower-than-expected grades and a focus on underground development, presenting a challenge for the company to address.

Production Guidance at Low End

SSR Mining is tracking to close out the year in the lower half of its production guidance, with full-year production expected to be 327,000 gold equivalent ounces. This cautious outlook reflects the challenges faced in achieving higher production levels.

Forward-Looking Guidance

Looking ahead, SSR Mining expects a stronger fourth quarter, with full-year production projected between 410,000 to 480,000 gold equivalent ounces. The company is committed to reaching its full-year growth capital guidance of $60 million to $100 million, with significant progress on projects like Hod Maden. The anticipated Cripple Creek & Victor technical report and efforts to restart operations at Çöpler are also key focus areas.

In conclusion, SSR Mining’s earnings call highlighted a balanced narrative of progress and challenges. While the company is well-positioned financially and making strides on key projects, high production costs and lower-than-expected outputs at certain sites present hurdles. Investors will be watching closely as SSR Mining navigates these dynamics, with optimism for a stronger performance in the coming quarters.