SSR Mining Inc. (SSRM, Financial) was up over 2% to $8.57 per share in early Monday trading after the release of financial restuls for the entire year of 2017.
The upside follows the 40.6% growth of funds to $640 million available on hand and securities for SSR Mining as of Dec. 30, 2017, including a line of credit and the achievement of the company’s guidance on production of equivalent gold (370,000 ounces). The company sustained a cash cost of $703 per ounce of metal sold in 2017 while the AISC was $972 per payable ounce of gold equivalent sold.
The increase in mineral reserves at the Seabee Gold Operation in Canada to 440,000 ounces of gold and at the Marigold mine in U.S. to 3.2 million ounces of gold also sustained the recent rise in the market value of the stock.
Because of a 9% year over year decline in the revenue to $448.77 million in 2017, SSR Mining generated a lower cash flow from operations in 2017 ($144.7 million) compared to full fiscal 2016 ($170.7 million). The decline in the yearly revenue was due to a lower volume of silver sold at Puna Operations in Argentina (5.99 million ounces; -47.4% year over year), where the company also incurred a higher cost per ounce.
SSR Mining also reported 19.4% decrease in the gross operating margin of the company to 25% in 2017.
The enterance into the Argentinian tax moratorium system in March 2017 caused the payment of $16.9 million, which also impinged on the operating cash flow. Compared to 2016, the company invested a lower amount of funds in 2017, approximately $15.5 million.
For full fiscal 2018, SSR Mining expects to produce between 3.0 million and 4.4 million ounces of the grey metal, of which approximately 75% is attributable production, and between 275,000 and 302,000 ounces of gold. The funds to be used by the company as total capital expenditures are forecasted at about $21 million, of which $10 million will be to keep the company’s mines operating and $11 million to fund development projects and explorations.
SSR Mining has a market capitalization of $1 billion and the stock is trading below the midst of a $7.64 to $11.98 per share 52-weeks range.
Source: Yahoo Finance
The stock is trading below the 200, 100 and 50-SMA lines.
The recommendation rating is 2.3 out of a total of 5. The average target price is $11.88 per share.
(Disclosure: I have no positions in any security mentioned in this article.)
