SSR Mining’s Earnings Call Highlights Strong Start to 2025

Ssr Mining ((TSE:SSRM)) has held its Q1 earnings call. Read on for the main highlights of the call.

SSR Mining’s recent earnings call painted a positive picture for the start of the year, highlighting robust free cash flow and the successful integration of key assets. Despite challenges such as high all-in sustaining costs (ASIC) and uncertainties in Türkiye, the company is poised for operational improvements and growth through various strategic initiatives.

Strong Free Cash Flow Generation

SSR Mining reported nearly $40 million in free cash flow generation in the first quarter of 2025, showcasing a solid financial performance. This strong cash flow is a testament to the company’s effective management and operational efficiency.

Successful Integration of Cripple Creek and Victor

The integration of Cripple Creek and Victor (CC&V) was executed smoothly, resulting in an 85% year-on-year increase in reserves to 2.4 million ounces. This contributed to a 10% production increase over 2024, underscoring the strategic value of this acquisition.

Positive Start at Seabee

Seabee mine produced 26,000 ounces at an ASIC of $1,374 per ounce, with gold grades averaging nine grams per tonne, exceeding expectations. This performance highlights Seabee’s potential as a significant contributor to SSR Mining’s portfolio.

Puna’s Strong Production

Puna mine delivered an impressive 2.5 million ounces of silver at an ASIC of $13.16 per ounce. This strong start to the year is complemented by a focus on extending the mine’s life, ensuring long-term production capabilities.

Operational Improvements and Growth Initiatives

SSR Mining is committed to operational delivery and growth initiatives, including technical report updates and exploration projects across various sites. These efforts are aimed at enhancing production efficiency and expanding resource bases.

High All-In Sustaining Costs (ASIC)

The company reported a first-quarter ASIC of $1,972 per ounce, or $1,749 per ounce excluding costs at Copler, which remains relatively high. Managing these costs is crucial for maintaining profitability.

Copler Care and Maintenance Costs

SSR Mining incurred $36 million in care and maintenance costs at Copler during the quarter, a significant expense that impacts overall financial performance. These costs are not adjusted for under SEC rules, adding to the financial burden.

Uncertainty in Türkiye Operations

There is ongoing uncertainty regarding the restart of operations at Copler, with no clear timeline for receiving necessary permits. This uncertainty poses a challenge to the company’s operational plans in the region.

Forward-Looking Guidance

During the first quarter 2025 conference call, SSR Mining provided comprehensive guidance for the year. The company expects to produce between 410,000 to 480,000 gold equivalent ounces at an ASIC of $2,090 to $2,150 per ounce, or $1,890 to $1,950 per ounce excluding Copler costs. Additionally, they plan to invest $60 million to $100 million in the Hod Maden project, with strategic priorities focusing on advancing projects like Hod Maden and potential restarts at Copler.

In summary, SSR Mining’s earnings call reflects a positive outlook with strong financial performance and strategic growth initiatives. Despite challenges such as high ASIC and uncertainties in Türkiye, the company is well-positioned for continued success through effective management and operational improvements.