Business Overview and History

SSR Mining Inc. (NASDAQ:SSRM) is a prominent precious metals mining company with a diverse portfolio of assets located in the United States, Türkiye, Canada, and Argentina. The company's operations span gold, silver, copper, lead, and zinc production, positioning it as a key player in the global mining industry.

SSR Mining's origins can be traced back to 1946, with its predecessor companies operating in the mining sector for over seven decades. In 2005, the company was incorporated in British Columbia, Canada, and since then, it has undergone strategic acquisitions and expansions to strengthen its asset base and production capabilities.

The company's history is closely tied to the Marigold property in Nevada, USA, where the first recorded gold production occurred in 1946. Over the decades, Marigold was explored and developed by various companies until SSR Mining acquired it in 2014. This acquisition marked a significant milestone in the company's growth strategy.

In 2020, SSR Mining further expanded its portfolio through a merger with Alacer Gold Corp., which added the Çöpler mine in Türkiye to its assets. This merger strengthened the company's position in the global precious metals market and diversified its geographical footprint.

The year 2024 brought both challenges and achievements for SSR Mining. While the company faced a significant setback with the Çöpler Incident, its other operations demonstrated strong performance. Notably, the Marigold mine celebrated a major milestone by reaching 5 million ounces of life-of-mine gold production, showcasing the longevity and productivity of this asset.

One of SSR Mining's flagship assets is the Çöpler mine in Türkiye, which produces gold doré and has been a significant contributor to the company's revenues. However, the Çöpler Incident in February 2024, which resulted in the suspension of operations, has presented a significant challenge for the company. Despite this setback, SSR Mining has demonstrated resilience, working closely with Turkish authorities to address the incident and pave the way for a potential restart of operations.

Diversifying the Portfolio

To mitigate the impact of the Çöpler Incident, SSR Mining has strategically diversified its portfolio through several key acquisitions and divestitures. In May 2023, the company acquired a 10% interest in the Hod Maden gold-copper development project in northeastern Türkiye, further expanding its presence in the region.

More recently, in December 2024, SSR Mining announced the acquisition of the Cripple Creek & Victor (CC&V) gold mine in Colorado from Newmont Corporation. This transformative deal positions SSR Mining as the third-largest gold producer in the United States, significantly increasing its scale, free cash flow, and portfolio diversification.

Financial Performance and Liquidity

For the full year 2024, SSR Mining reported consolidated gold equivalent production of 399,267 ounces, with an all-in sustaining cost (AISC) of $1,878 per payable ounce. The company's revenue for the year totaled $995.6 million, with a net loss of $261.3 million, primarily due to the impact of the Çöpler Incident. Operating cash flow for the year was $40.1 million, while free cash flow was negative $103.4 million.

In the fourth quarter of 2024, SSR Mining's revenue was $323.2 million, with a net income of $5.6 million. Operating cash flow for the quarter stood at $95 million, and free cash flow was $56 million.

Despite the challenges, SSR Mining ended 2024 with a strong liquidity position, including $387.9 million in cash and cash equivalents and $158 million in net cash. The company also has access to a $400 million revolving credit facility, of which $399.6 million was available as of December 31, 2024. This financial flexibility, coupled with the expected contribution from the recently acquired CC&V mine, positions the company to manage the ongoing remediation efforts at Çöpler and pursue strategic growth opportunities.

SSR Mining's financial ratios demonstrate its solid financial position. The company's debt-to-equity ratio is 0.06, based on $345.2 million in total debt and $3.95 billion in total equity. The current ratio stands at 4.73, while the quick ratio is 2.59, indicating strong short-term liquidity.

Operational Highlights

SSR Mining's operations consist of four reportable segments: Çöpler, Marigold, Seabee, and Puna. Each segment has demonstrated distinct performance characteristics in 2024:

1. Çöpler Segment: The Çöpler Gold Mine and Greater Çakmaktepe Mine in Türkiye faced significant challenges due to the Çöpler Incident. Before the suspension of operations on February 13, 2024, Çöpler produced 28,210 ounces of gold and sold 30,380 ounces, generating $64.3 million in revenue. The segment reported a care and maintenance expense of $108.7 million due to the suspension of operations.

2. Marigold Segment: The Marigold Mine in Nevada, USA, produced 168,260 ounces of gold and sold 167,670 ounces, contributing $409.0 million in revenue. The segment's cost of sales was $244.3 million.

3. Seabee Segment: The Seabee Gold Operation in Saskatchewan, Canada, produced 78,550 ounces of gold and sold 81,070 ounces, generating $191.8 million in revenue. Cost of sales for the segment was $77.9 million. Notably, Seabee finished the year above its previously revised production guidance of 79,000 ounces.

4. Puna Segment: The Puna operation in Argentina had a particularly strong year, achieving a record annual silver production of 10.5 million ounces in 2024, which was at the top end of its previously increased production guidance. The operation generated $330.5 million in revenue from the sale of 9,640,000 ounces of silver, 49,630,000 pounds of lead, and 3,120,000 pounds of zinc. The segment's cost of sales was $155.7 million.

Exploration and Development Initiatives

Alongside its operational successes, SSR Mining has remained committed to exploration and development activities across its portfolio. At Marigold, the company declared a 523,000-ounce maiden reserve at the Buffalo Valley deposit, representing a key life-of-mine extension opportunity.

At Seabee, the team continued to evaluate the Porky and Porky West targets, which helped drive an 88% increase in measured and indicated mineral resources for the operation. Additionally, the company is exploring opportunities to extend the mine life at Puna, including through potential laybacks at the Chinchillas pit and evaluating the longer-term potential of the Cortaderas target.

These brownfield exploration and development initiatives underscore SSR Mining's focus on organic growth and extending the longevity of its existing asset base, complementing the strategic acquisitions that have strengthened its overall portfolio.

Navigating Challenges and Capitalizing on Opportunities

The Çöpler Incident has undoubtedly presented a significant challenge for SSR Mining, requiring the company to navigate complex regulatory and remediation efforts in Türkiye. However, the company's diversified asset base, strong liquidity position, and successful integration of the CC&V mine have enabled it to weather this storm and position itself for future growth.

Looking ahead, SSR Mining's priorities for 2025 include delivering a technical report and updated life-of-mine plan for the CC&V asset, advancing the Hod Maden project towards a construction decision, and continuing to progress exploration and development initiatives across its portfolio. The company expects to release detailed 2025 cost and production guidance for the consolidated company, including CC&V, shortly after the transaction closes in the coming weeks.

SSR Mining continues to work towards restarting the Çöpler mine, with expectations that it could be restarted within 20 days from the receipt of the necessary permits. The company's ability to successfully execute on these priorities will be crucial in unlocking value for its shareholders and solidifying its position as a leading global precious metals producer.

Conclusion

SSR Mining's journey has been marked by both challenges and opportunities. The Çöpler Incident has tested the company's resilience, but its diversified asset base, strategic acquisitions, and exploration successes have positioned it to navigate these headwinds and capitalize on the favorable industry dynamics. As SSR Mining continues to execute on its strategic priorities, investors will closely monitor the company's ability to deliver on its ambitious growth plans and maximize shareholder value.