SSR Mining (TSX:SSRM) has had a bit of a roller-coaster ride this year. Year-to-date, the stock has seen ups and downs. But over the past month, it’s been regaining some ground. After facing pressures from rising costs and fluctuating gold prices earlier in the year, SSR Mining has stabilized, with recent gains suggesting that the worst could be behind it. Improving gold prices, coupled with the company’s focus on operational efficiency, might mean that SSR is poised for a more positive trajectory moving forward. So let’s take a look.
About SSR Mining
SSR Mining is a mid-tier gold-focused company with operations spanning across North and South America, as well as Turkey. What makes it stand out is its diversified portfolio of gold, silver, and copper mines. This helps spread out risk across different regions and commodities. The company has a solid track record of efficient mining operations, consistently delivering production at competitive costs. Its flagship projects, like the Marigold Mine in Nevada, continue to provide steady cash flow. Thus, SSR Mining is a reliable player in the precious metals space.
Beyond its strong production base, SSR Mining is known for its prudent financial management. It boasts a clean balance sheet, with low debt and a good chunk of cash reserves. This allows the company to invest in growth opportunities, whether through exploration or acquisitions. For investors, SSR Mining offers exposure to the upside potential of gold and silver, especially during periods of market uncertainty when precious metals tend to shine. All in all, it’s a solid choice for those looking to add a gold play to their portfolio without taking on excessive risk.
Onto earnings
SSR Mining recently reported its Q2 2024 earnings, and the results were solid but not overly surprising. The company posted revenue of $307.7 million, which marked a slight increase compared to the previous quarter. Its adjusted net income came in at $35.4 million, or $0.15 per share, which was in line with analyst expectations. A big factor was their steady gold production, which hit 198,000 ounces for the quarter, keeping them on track to meet their full-year guidance.
As for the market reaction, investors responded cautiously. While the earnings were stable, there wasn’t much in the way of exciting news to drive the stock higher. Shares of SSR Mining saw only a modest uptick after the release, reflecting the “steady as she goes” performance. Investors seem to be waiting for more significant developments or potential expansion news before getting too excited.
Still valuable
SSR Mining still offers value to investors, especially those looking for a stable dividend. With a forward annual dividend yield of 4.9%, it’s an attractive option for those seeking income in their portfolio. Despite recent challenges, including a quarterly earnings drop and declining revenue, SSR maintains a solid balance sheet. The company currently has $384.4 million in cash and a manageable debt load. Its current ratio of 3.5 indicates strong liquidity, meaning it has plenty of resources to cover short-term obligations.
While the company has faced profitability issues, reflected in a net loss and negative return on equity, SSR’s long-term potential remains tied to its production capabilities and the broader metals market. Investors looking at the current low share price might view this as a buying opportunity – particularly with a price-to-book ratio of just 0.4, signalling that SSR is undervalued compared to its assets. It’s a wait-and-see situation, but for dividend seekers and long-term holders, SSR could still be a valuable play.
