A Golden Opportunity Amid Market Volatility
Guest Column (Joe's Back)- SSR Mining SSRM
SSR Mining Inc. (TSX: SSRM) – A Golden Opportunity Amid Market Volatility
“All successful investing is inherently long-term investing. ” - Charlie Munger
Joe is back with his next pick, his previous one Huntington Ingalls (NYSE: HII) has moved up nicely from the $180s to $225 now. I am thinking of calling these 'Smokin Joe's Hot Picks'? You may remember SSRM that we were stopped out of in 2023. I agree it is now time to buy again.
Hey everyone,
Today we are jumping on a solid gold producer that also comes with some really promising exploration upside. If you’ve been following Ron’s insights in the Struthers Resource Stock Report at PlayStocks, you already know we’re still early in what could be a major bull run in gold! And I think we have a golden opportunity on our hands with SSR Mining.
Share Price: $14.03 - - Exchange: TSXV Shares Outstanding: 202.5M
52W Range: $5.94 - $16.39 - - - Revenue: $1.431B - - - Net Income: -$375.6M
SSR Mining is a mid-tier gold producer with operations across the Americas and Turkey. Despite gold prices soaring above $3,300 per ounce, the company reported a net loss of $261.3 million for the full year 2024. This loss is primarily attributed to the Çöpler mine incident in Turkey, which led to significant financial charges. The current share price has recovered to where it was prior to the incident. And while SSR Mining may have higher All In Sustaining Costs (AISC) at some of its mines, we believe gold is likely going to find a base price of at least $3000 negating the higher AISC in the long term. In the eyes of a contrarian investor, now is a great time to add SSRM.
Let's take a look at the charts.
As we can see here SSRM has fallen out of its strong recent channel, highlighted by the blue lines, and appears to be consolidating on its short term and long term (not shown) support level marked by the dotted blue line. Near term resistance levels are marked by the yellow lines, targets being roughly $15 and $16. If SSRM manages to break out of the $16 range upside to the $17-$17.50 range is expected. Volume has been below average many days but higher volume is typically seen on the upside days – a good sign.
What about those technicals?
RSI is fairly neutral while Money Flow is up, Momentum (not shown) is down. The 10/40 MA shows a potential coming crossover, while the 25/100 MA is still apart but closing in and the 50/200 MA (not shown) crossed over, creating a Golden Cross during October 2024. The longer term MACD shows a similar flat-lining before its last leg up – this aligns with our belief the stock is currently consolidating before another leg up.
So when to buy? What price?
Bulls will buy right now at its current price of $14.03 and be ready to buy more if it presents further buying opportunities. Bears may be watching the Copler Mine news and be wanting to see if the stock is indeed consolidating before going up, or preparing to drop back down to a further resistance level in the $13 -$13.30 range.
Why You Should Consider Adding SSR Mining to Your Portfolio
SSR Mining's operations span multiple jurisdictions – many in “friendly” jurisdictions, providing geographical diversification and reducing geopolitical risks.
Marigold Mine (Nevada, USA):
A cornerstone asset, Marigold has been in continuous operation for over 35 years. Since SSR Mining's acquisition in 2014, it has produced over 2 million ounces of gold, including a record 278,000 ounces in 2023. As of December 31, 2023, Marigold boasts nearly 3 million ounces of Mineral Reserves, supporting a mine life of at least 9 years. In 2024, the company allocated approximately $10 million for growth expenditures at Marigold, focusing on mine life extension opportunities, including the Buffalo Valley project. AISC at Marigold during 2024 was $1,711 per payable ounce, dropping to $1,638 in the 4th quarter.
Seabee Operations (Saskatchewan, Canada):
In 2024, the Seabee operation produced 78,545 ounces of gold at a cost of sales of $960 per payable ounce and an all-in sustaining cost (AISC) of $1,515 per payable ounce. Operations were temporarily suspended for over 50 days due to forest fires in the vicinity of the mine. There were no injuries reported, and neither the Seabee processing plant nor the Santoy mine sustained material damage. Full operations resumed on October 11, 2024. During the fourth quarter, Seabee produced 27,811 ounces of gold at a cost of sales of $816 per payable ounce and an AISC of $1,214 per payable ounce. Annual production for 2024 exceeded the revised guidance range and was achieved at costs below forecast, supported by strong processed grades that averaged 9.7 grams per tonne in the fourth quarter.
Puna Operations (Argentina):
Located in the Jujuy Province of northwestern Argentina, the Puna Operations continue to be a strong performer within SSR Mining’s portfolio. In 2024, the mine achieved a record annual silver production of 10.5 million ounces, hitting the upper end of its upwardly revised guidance range. This performance underscores the operational efficiency and consistent throughput of the Chinchillas open-pit and Pirquitas processing facilities. The full-year cost of sales averaged $16.14 per payable ounce of silver, while all-in sustaining costs (AISC) came in lower at $15.56 per ounce—highlighting effective cost management throughout the year. In Q4 2024 alone, Puna delivered 3.0 million ounces of silver, with a cost of sales of $15.84 per ounce and an AISC of $16.06 per ounce, maintaining strong quarterly performance and financial discipline. Silver currently trades at $33.46
SSR Mining Positions To Be Americas 3rd Largest Gold Producer with Cripple Creek & Victor Gold Mine Acquisition
On February 28, 2025, SSR Mining completed its acquisition of the Cripple Creek & Victor Gold Mine (CC&V), marking a strategic step to expand its production footprint in the United States. Located about 160 kilometers (100 miles) southwest of Denver, Colorado, CC&V is a historically rich gold deposit in a district that has produced gold since the 1890s. Modern large-scale surface mining began in 1994, and the site has since evolved into a major open-pit operation using conventional mining methods.
The transaction, first announced on December 6, 2024, included $100 million in upfront cash and up to $175 million in milestone-based payments. The structure balances immediate value with long-term upside, aligning with SSR Mining’s strategy to enhance free cash flow and strengthen its portfolio with long-life, high-return assets in tier-one jurisdictions.
CC&V processes all oxide ore through valley leach facilities, either as run-of-mine (ROM) or after a two-stage crushing process. As of December 31, 2024, Newmont Corp. reported Proven and Probable Reserves totaling 2.4 million ounces of gold at an average grade of 0.50 g/t. The site also holds 0.8 million ounces of Measured and Indicated Resources at similar grades, and 0.9 million ounces of Inferred Resources grading 0.40 g/t—highlighting significant potential for future production growth and mine life extension.
This acquisition substantially strengthens SSR Mining’s U.S. presence. Together with its flagship Marigold mine in Nevada, CC&V positions SSR as the third-largest gold producer in the country. Combined annual output from both assets is expected to range between 300,000 and 400,000 ounces, providing scale, geographical diversification, and enhanced cash flow stability across market cycles.
SSR Mining plans to release formal 2025 guidance for CC&V as part of its broader annual outlook, following the asset’s integration during the first quarter.
Hod Maden Project: A High-Grade Growth Catalyst
SSR Mining continued to advance its world-class Hod Maden project in northeastern Turkey throughout 2024, with a focus on engineering, permitting, and site preparation activities ahead of a formal construction decision. The company invested $42.1 million into the project over the course of the year, including approximately $14.0 million in Q4 alone. Further details on SSR’s anticipated 2025 capital allocation to Hod Maden are expected as part of its annual guidance in Q1 2025.
A NI 43-101 Feasibility Study (filed in 2022, effective February 28, 2021) outlines an exceptionally high-return, low-capex development opportunity. Over a 13-year mine life, Hod Maden is expected to produce 2.03 million ounces of gold and 255 million pounds of copper, averaging 156,000 ounces of gold and 19.6 million pounds of copper annually. The project features an 800,000 tonne per year mill, with strong recoveries of 85% for gold and 93% for copper, and an impressive average gold grade of 8.8 g/t alongside 1.5% copper.
Economically, Hod Maden stands out with a post-tax NPV (5%) of $1.05 billion, an IRR of 36%, and a two-year payback period based on conservative metal price assumptions. In addition to these robust fundamentals, the broader Hod Maden property remains largely underexplored, with promising geochemical and geophysical targets offering considerable exploration upside and potential for resource expansion.
With its combination of high grades, compelling economics, and near-term development timeline, Hod Maden is a cornerstone growth asset for SSR Mining and a key driver of future value creation.
Copler Incident – Potential Downside
Financial Impact:
The Çöpler incident had a substantial impact on SSR Mining's financials, resulting in:
Reclamation and Remediation Costs: Approximately $272.9 million in incurred and anticipated costs related to site remediation efforts.
Non-Cash Impairment Charges: $114.2 million in non-cash impairment charges, including $76.0 million related to inventories and $38.2 million related to mineral properties, plant, and equipment.
Care and Maintenance Expenses: $108.7 million in total care and maintenance costs incurred as a result of the Çöpler incident.
Operational Response and Outlook
In response to the incident, SSR Mining has undertaken significant remediation efforts, including the relocation of over 6.7 million tons of heap leach material and the development of a plan for permanent closure of the affected heap leach pad. The estimated cost for these remediation activities is between $250 million to $300 million.
Despite the challenges at Çöpler, SSR Mining's other operations, such as Marigold, Seabee, and Puna, have performed well, allowing the company to reaffirm its full-year production and cost guidance. The company ended 2024 with a strong liquidity position, including $387.9 million in cash and total liquidity of $887.5 million.
SSR Mining continues to work closely with Turkish authorities to secure the necessary permits for the restart of the Çöpler mine. Once all regulatory approvals are reinstated, initial operations at Çöpler are expected to consist of processing stockpiled ore through the sulfide plant while remediation work continues.
In summary, while the Çöpler incident has led to significant financial charges and a net loss for SSR Mining in 2024, the company's diversified operations and strong liquidity position provide a solid foundation for recovery and future growth.
Given a significant amount of gold production for SSR Mining occurred at Copler, any delays in restarting production could weigh on its share price however recent acquisitions appear to have offset this in the near term and we believe long term SSRM is going to do well.
Joe Struthers is a CNC machinist who writes about defense and resource stocks.
All forecasts and recommendations are based on opinion. Markets change direction with consensus beliefs, which may change at any time and without notice. The author/publisher of this publication has taken every precaution to provide the most accurate information possible. The information & data were obtained from sources believed to be reliable, but because the information & data source are beyond the author's control, no representation or guarantee is made that it is complete or accurate. The reader accepts information on the condition that errors or omissions shall not be made the basis for any claim, demand or cause for action. Because of the ever-changing nature of information & statistics the author/publisher strongly encourages the reader to communicate directly with the company and/or with their personal investment adviser to obtain up to date information. Past results are not necessarily indicative of future results. Any statements non-factual in nature constitute only current opinions, which are subject to change. The author/publisher may or may not have a position in the securities and/or options relating thereto, & may make purchases and/or sales of these securities relating thereto from time to time in the open market or otherwise. Neither the information, nor opinions expressed, shall be construed as a solicitation to buy or sell any stock, futures or options contract mentioned herein. The author/publisher of this letter is not a qualified financial adviser & is not acting as such in this publication.