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Alberto Abaterusso
Alberto Abaterusso
Articles (1297) 

SSR Mining Flat on Production Results

In the 1st quarter, the miner produced less gold and silver compared to the previous quarter

April 15, 2018 | About:

The market was not particularly impressed by SSR Mining Inc.’s (NASDAQ:SSRM) first-quarter 2018 production results. The stock was flat at $10.08 on Friday.

SSR Mining is up 13% so far this year and has outperformed the Van Eck Vectors Gold Miners exchange-traded fund (GDX) by 17%. The stock has a market capitalization of $1.21 billion, according to GuruFocus.


In the first quarter, the miner produced 66,677 ounces of gold, a 13.4% decrease from the prior quarter, and 938,000 ounces of silver, a 19.8% decline from the last quarter of fiscal 2017. Approximately 75% of the total silver output was attributable production.

The reduction in gold production was mainly due to a lower grade of material left at the Marigold Mine. The material was moved to the mill and processed during the first quarter. 

The production of silver was lower at the Puna operations in Argentina because activities were disrupted by the building of a stockpile dome of crushed ore. Weather conditions and the processing of lower grade ore stashes also affected production.

For the remainder of 2018, investors may want to consider SSR Mining for several reasons. First, the company expects to move more material to the mill from the Marigold Mine. In additon, in the gravity circuit gold inventory at Puna, the volume of the yellow metal increased by about 2,400 ounces.

These two factors should determine an increase in the production of gold and silver starting in the second quarter of 2018.

SSR Mining has an average target price of $11.75 per share, which is a 16.6% upside from the current market valuation.  Out of four analysts, three suggest buying the stock while one recommends holding.

Disclosure: I have no positions in any securities mentioned in this article.

About the author:

Alberto Abaterusso
If somebody asks what being a Value Investor means, Alberto Abaterusso would answer: “the Value Investor is not the possessor of a security that represents the company, but he is the owner of that company. As an owner of the company the Value Investor is actively involved in the dynamics of that company and his first aim is how to have sales progressively growing.”

Alberto Abaterusso would add: “probably the Value Investor is one of the least patient persons in the world concerning sales.”

Alberto Abaterusso is a freelance writer based in The Netherlands. He primarily writes about gold, silver and precious metals mining stocks. His articles have also been widely linked by popular sites, including MarketWatch, Financial Times, 24hGold, Investopedia, Financial.org, CNBS, MSN Money, Zachs, Reuters and others. Alberto holds an MBA from Università degli Studi di Bari (Italy), Aldo Moro.

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