SSR Mining Shares Trade Higher on Q3 Earnings and Approved Dividend Policy

Source: Streetwise Reports   11/12/2020

Shares of SSR Mining traded 10% higher after the company reported Q3/20 earnings and stated that it was on track with its full-year guidance to produce 680-760 Koz gold equivalent in FY/20.

SSR Mining Inc. (SSRM:NASDAQ) today announced third quarter operating and consolidated financial results for the period ended September 30, 2020.

The company’s President and CEO Rod Antal commented, “With the transformational merger with Alacer Gold finalized, integration efforts near completion, and our operations running at steady state following COVID-19 interruptions, the focus has turned towards delivering a number of value enhancing catalysts before year-end.”

“We anticipate a robust fourth quarter with strong free cash flow generation, further strengthening our balance sheet. This continued peer-leading free cash flow generation has allowed us to put in place a dividend policy beginning in the first quarter of 2021…A recurring quarterly dividend is expected to be the primary method of capital return, and we will periodically evaluate supplementing this dividend from trailing excess attributable free cash flow through incremental dividends and/or share buyback programs, Antal added.”

The firm reported that in Q3/20 it produced a total of 106.84 Koz gold equivalent (Au eq)and sold 115.31 Koz Au eq in the same period. These amounts compared favorably to the 104.78 Koz Au eq produced and 95.11 Koz Au eq sold in Q3/19.

SSR Mining reported that on a consolidated basis it posted total revenues of $225.4 million in Q3/20, compared to $147.9 million in Q3/19. During the period the firm indicated that net income attributable to equity holders of SSR Mining was $26.75 million, or $0.19 per share, versus $20.74 million, or $0.17 per share in the prior year’s corresponding quarter. The firm advised that on a non-GAAP basis it posted adjusted attributable net income of $67.8 million or $0.49 per share in Q3/20, compared to $35.78 million, or $0.29 per share in Q3/19.

The company touched on several of the operating highlights in the latest quarter and noted that it closed the zero-premium merger with Alacer and that in doing so created a leading intermediate precious metals producer with an experienced leadership team, robust margins and strong free cash flow.

The firm additionally announced that its Board of Directors approved the issuance of a quarterly cash dividend in the amount of $0.05 per share beginning in Q1/21.

The company advised that it remains on track to meet its FY/20 updated production guidance and stated that production year-to-date has been 491.821 Koz Au eq across the company’s four operations.

Factoring in the completion of the merger with Alacer, the company stated that its FY/20 outlook estimates production of 680-760 Koz Au eq with all-in sustaining costs (AISC) of $965-1,040 per oz Au eq.

SSR Mining Inc. is an intermediate gold company with four producing assets located in Argentina, Canada, Turkey and the U.S., which in 2019 produced in aggregate greater that 720 Koz gold and 7.7 Moz silver. The firm also is actively involved in many other high-quality development and exploration assets in Canada, Mexico, Peru, Turkey and the U.S.

SSR Mining has a market capitalization of around $4.0 billion with approximately 219.2 million shares outstanding and a short interest of about 2.25%. SSRM shares opened 5.5% higher today at $19.12 (+$1.00, +5.52%) over yesterday’s $18.12 closing price. The stock has traded today between $18.46 and $20.09 per share and is currently trading at $19.84 (+$1.72, +9.49%).

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