SSR Mining soars on strong earnings beat

SSR Mining (Nasdaq, TSX: SSRM), the third-largest U.S.-based gold miner by output, soared to its highest share price in nearly two years on Wednesday after reporting second-quarter results that incorporated a new mine and exceeded analyst expectations.

During the three-month period, the Colorado-based miner saw its gold-equivalent production rise 58% to 120,191 oz. from 76,102 oz. in the same quarter last year after integrating the Cripple Creek & Victor (CC&V) gold mine, which it acquired from Newmont (NYSE: NEM, TSX: NGT). The company’s average realized gold price was $3,336 per oz., about 42% higher than in 2024.

The higher output and gold prices allowed SSR to record a near tenfold increase in net income attributable to shareholders, at $90 million (C$124 million) versus $9.7 million.

BMO Capital Markets, which recently resumed coverage on SSR with a “Market Perform” rating, said the results were “well ahead of its expectations.” Specifically, the earnings per share of 54¢ more than doubled the firm’s consensus estimates of 20¢ to 23¢. It was nearly 14 times higher than the year ago period.

SSR Mining’s TSX-listed shares jumped 15% to C$20.55 apiece by early afternoon for a market capitalization of C$4.23 billion. Earlier, it had reached as high as C$21 a share, the highest since September 2023.

New mine

Other metrics, such as All-in sustaining costs (AISC) and free cash flow, also surpassed BMO’s expectations by significant margins. Free cash flow rose to $98.4 million, producing a cash balance of $412 million. AISC fell 2% to $2,068 per oz., while cash costs rose slightly to $1,396 per ounce.

The newly-acquired CC&V mine, located in Colorado, accounted for nearly half of the company’s gold production during its first full quarter under SSR’s portfolio.

The mine “has now generated about $85 million in asset-level free cash flow in the four months since its acquisition, a remarkable outcome,” Rod Antal, executive chairman of SSR, stated in Wednesday’s quarterly results release.

Smashed expectations

The company’s gold-equivalent production was 11% above expectations, driven by a strong quarter from CC&V as well as the Puna silver mine in Argentina, where the company expects to see higher output than previously forecast starting in 2026. It plans to extend the mine’s life beyond 2028.

Meanwhile, in Turkey, the company increased the $250 million to $300 million estimate for the Çöpler mine‘s reclamation and remediation by $12.9 million to $312.9 million as it works to restart the mine. 

The raise reflects advancement in engineering the east storage facility and permanent heap leach closure. SSR is well positioned to fund the work with $912 million in total liquidity and ongoing free cash flow, BMO said. 

The Çöpler mine was shut in February 2024 following a collapse of the heap leach pad that resulted in the death of nine miners and the release of cyanide-laced ore into the valley.