Shares of SSR Mining Inc. SSRM rose 0.28% to $14.17 in after-hours trading on Thursday after posting fourth-quarter 2018 earnings of 4 cents per share on revenue of $103.71 million, beating earnings estimates by 4 cents and revenue expectations by $1.11 million.
The earnings per share doubled compared to the prior-year quarter, while revenue declined nearly 4%.
Reporting full-year production of more than 345,000 ounces of attributable gold equivalent at a cash cost of $736 per ounce of metal sold, SSR Mining met its guidance on output and costs for the seventh year in a row.
For 2019, the Canadian miner has targeted an equivalent gold production of 400,000 ounces thanks to the contribution of its newest mine, Chinchillas, in Argentina. Its other assets are also expected to contribute higher output.
Despite massive investments made in 2018 to fund exploration activities, move Chinchillas to the production stage and to purchase a 10% stake in SilverCrest Metals Inc. (SILV), SSR Mining's balance sheet is still solid.
This was possible due to strong operating performances at the company's Marigold mine in the U.S., the Seabee Gold Operation in Canada and Puna Operations in Argentina. It was also boosted by a 0.6% year-over-year increase in the average realized gold price to $1,261 per ounce.
As of Dec. 31, SSR Mining has approximately $448.85 million in cash on hand and short-term securities.
The stock has climbed 68% over the past year through Feb. 21 and is trading above the 200, 100 and 50-day simple moving average lines. The closing share price on Thursday was 85% off the 52-week low of $7.64 and less than 1% below the 52-week high of $14.26.
SSR Mining had a market capitalization of roughly $1.7 billion at close on Thursday.
The 14-day relative strength index of 66.77 suggests the stock is approaching overbought levels.
Wall Street holds a recommendation rating of overweight, meaning SSR Mining is projected to outperform either the industry or the overall market with an average target price of $14.64 per share.
Disclosure: I have no positions in any securities mentioned.
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