SSR Mining Stock Upgraded Amid Positive Outlook

By Patricia Miller

Feb 05, 2025

2 min read

RBC Capital Markets upgraded SSR Mining, citing rising commodity prices and significant growth potential from key projects amid ongoing operational challenges.

Raw silver and gold nuggets with stock graph

What You Need To Know

RBC Capital Markets has upgraded SSR Mining’s stock rating from Underperform to Sector Perform, increasing the price target from $5.50 to $8.00. The anticipated completion of the Cripple Creek & Victor Mine by the first quarter of 2025 is expected to enhance SSR Mining's net asset value by 20%, thereby reducing downside risk.

The company's valuation is improving, supported by rising commodity prices and consistent cash flow from its assets. However, there remains uncertainty about the operations in Turkey, particularly concerning costs and production timelines. An independent review identified a design flaw as the cause of a heap leach failure at the Çöpler Mine, where no definitive timeline for a restart has been released.

The Marigold Mine continues to be productive with 5 million ounces of gold produced, with $10 million earmarked for 2024 to extend its lifespan. The company estimates remediation costs for Çöpler to be between $250 million and $300 million over the next two to three years. Operations at the Çöpler Mine are expected to resume shortly after receiving regulatory approval. In Q3 2024, SSR Mining produced 97,000 gold equivalent ounces but reported a negative cash flow of $1 million.

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Why This Is Important for Retail Investors

  1. Upgrades from analysts can signal potential future stock performance, guiding retail investors in making informed decisions.

  2. Understanding the impact of operations and market conditions helps investors gauge the reliability of the company’s earnings and growth prospects.

  3. Monitoring significant projects, like the Cripple Creek & Victor Mine, can highlight opportunities for appreciation in asset value and profitability.

  4. Awareness of risks, particularly in international operations such as Turkey, aids investors in assessing exposure and volatility.

  5. Tracking costs and cash flows provides insight into the company’s financial health, enabling retail investors to align their portfolios with companies demonstrating stability and growth potential.

Relevant ETFs

Some investors prefer to invest in stocks via an exchange-traded fund for ease and reduced risk. Some relevant ETFs include the following:

  • GDX VanEck Vectors Gold Miners ETF

  • GDXJ VanEck Vectors Junior Gold Miners ETF

  • SIL Global X Silver Miners ETF

  • NUGT Direxion Daily Gold Miners Bull 2X Shares

  • DUST Direxion Daily Gold Miners Bear 2X Shares

  • HUI NYSE Arca Gold BUGS Index

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Important Notice And Disclaimer

This article does not provide any financial advice and is not a recommendation to deal in any securities or product. Investments may fall in value and an investor may lose some or all of their investment. Past performance is not an indicator of future performance.

Patricia Miller does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the above article.

Patricia Miller has not been paid to produce this piece by the company or companies mentioned above.

Digitonic Ltd, the owner of ValueTheMarkets.com, does not hold a position or positions in the stock(s) and/or financial instrument(s) mentioned in the above article.

Digitonic Ltd, the owner of ValueTheMarkets.com, has not been paid for the production of this piece by the company or companies mentioned above.