SSR Mining’s Earnings Call: Robust Growth Amid Challenges

Ssr Mining ((TSE:SSRM)) has held its Q4 earnings call. Read on for the main highlights of the call.

In the latest earnings call, SSR Mining showcased a robust operational and financial performance for 2024, underpinned by strategic acquisitions and record production levels. Despite these successes, the company faced challenges stemming from the Çöpler incident, which affected costs and regulatory processes. Overall, the sentiment during the call was optimistic, with a focus on overcoming recent hurdles and building on current achievements.

Acquisition of Cripple Creek and Victor Mine

SSR Mining announced the acquisition of the Cripple Creek and Victor Mine from Newmont, a strategic move expected to significantly scale up operations, enhance free cash flow, and diversify the company’s portfolio. This acquisition marks a pivotal step in SSR Mining’s growth strategy, promising to bolster its financial and operational capabilities.

Record Silver Production at Puna

Puna’s performance in 2024 was exceptional, with the site producing a record 10.5 million ounces of silver. This achievement not only met but hit the top end of its increased production guidance, reflecting Puna’s operational efficiency and strong output.

Marigold’s Milestone Achievement

The Marigold mine reached a significant milestone by achieving 5 million ounces of life-of-mine gold production. This accomplishment underscores the high quality of both the mine itself and the dedicated team driving its success.

14% Increase in Marigold Reserves

Marigold’s reserves saw a 14% year-over-year increase, bolstered by the declaration of a maiden reserve of 523,000 ounces for the Buffalo Valley. This increase highlights the mine’s ongoing potential and resource expansion.

Strong Financial Position

SSR Mining ended the year with a solid financial standing, holding $388 million in total cash and a net cash position of $158 million. The company’s total liquidity reached approximately $890 million, providing a strong foundation for future investments and operational resilience.

Çöpler Incident and Care Costs

The Çöpler incident has led to significant care and maintenance costs, with total reclamation and remediation spending reaching $128 million for the full year. This incident has posed challenges but also highlighted areas for operational improvement.

AISC Impacted by Care and Maintenance

The all-in sustaining costs (AISC) were notably impacted by the care and maintenance costs from Çöpler and Seabee, contributing an additional $178 per ounce in cash costs during the fourth quarter. This impact underscores the financial strain these incidents can cause.

Challenges in Regulatory Approvals

SSR Mining is in ongoing discussions with Turkish authorities regarding the restart of Çöpler operations. The uncertainty surrounding these approvals presents a challenge, yet the company remains committed to resolving these regulatory hurdles.

Forward-Looking Guidance

Looking ahead, SSR Mining provided key metrics and guidance for 2025, highlighting a production target of 399,000 gold equivalent ounces at an AISC of $18.78 per ounce. With a focus on advancing the Çöpler restart, delivering a technical report for CC&V, and progressing the Hod Maden project, the company is well-positioned to continue its growth trajectory. The acquisition of CC&V is particularly anticipated to drive free cash flow and diversify the portfolio further.

In conclusion, SSR Mining’s earnings call painted a picture of a company resilient in the face of challenges and poised for growth. While the Çöpler incident posed significant hurdles, the company’s strategic acquisitions and record production levels reflect a promising future. SSR Mining’s strong financial position and forward-looking strategies suggest a positive outlook as they navigate the complexities of the mining industry.