SSR Mining's Free Cash Rebounds in Q1: A Sign of Lasting Recovery?

Financial Performance - SSR Mining (SSRM) reported adjusted free cash flow of $39.3 million in Q1 2025, a significant improvement from a $9.4 million outflow in the same quarter last year [1][10] - Operating cash flow increased by 244% year over year to $84.8 million, driven by a 42.4% rise in average realized gold prices and reduced remediation costs related to the Çöpler mine suspension [2][10] - In 2024, SSRM's operating cash flow had decreased to $40.1 million from $421.7 million in 2023, primarily due to a 44.2% drop in gold equivalent ounces sold and increased remediation expenditures [4] Cash and Liquidity - SSRM ended Q1 2025 with $319.6 million in cash and cash equivalents, which included a $100 million upfront payment for the acquisition of the CC&V mine from Newmont [3] - Total liquidity reached $819.6 million, factoring in undrawn revolving credit facilities [3] Production Outlook - SSRM anticipates gold production in 2025 to be between 320,000 and 380,000 ounces, with contributions from the Seabee, Marigold, and CC&V mines [6][10] - The company produced 275,013 ounces of gold in 2024 [6] Market Performance - SSRM shares have increased by 79.3% year to date, outperforming the industry growth of 17.8% [9] - The company is currently trading at a forward 12-month price-to-earnings multiple of 7.02X, compared to the industry average of 15.09X [11] Earnings Estimates - The consensus estimate for SSRM's earnings in 2025 is $1.21 per share, reflecting a year-over-year increase of 332.1% [12] - The earnings estimate for 2026 is projected at $2.21, indicating an 82.85% increase [12]