SSRM's Operations at Copler Remain Suspended: Can It Achieve Growth?

Core Insights - SSR Mining (SSRM) is significantly impacted by the suspension of operations at its Çöpler mine in Türkiye, which has been halted since February 13, 2024, due to a heap leach pad slip [1][9] - The Çöpler mine was a major contributor, producing 220,999 gold equivalent ounces in 2023, accounting for 31% of SSRM's total gold production [2][9] - SSRM is working with authorities to restart the Çöpler mine, but the timeline for resuming operations remains uncertain [3] Financial Impact - Contributions from the Çöpler mine to SSRM's revenues have decreased to 7% in 2024, down from 31% in 2023 and 2022 [2][9] - In the first quarter of 2024, SSRM incurred reclamation and remediation costs of approximately $272.9 million due to the Çöpler incident [4][9] - The company has estimated future reclamation and remediation costs related to Çöpler to be between $250 million and $300 million, in addition to $22.5 million incurred in Q1 2024 [4] Production Outlook - Despite the challenges from the Çöpler mine, SSRM projects gold production between 320,000 and 380,000 ounces in 2025, which is higher than the 275,013 ounces produced in 2024 [3] - The consensus estimate for SSRM's earnings in 2025 is $1.21 per share, indicating a year-over-year increase of 332% [13] Market Performance - Year-to-date, SSRM shares have increased by 73.2%, outperforming the industry growth of 16.1% [8] - SSRM is currently trading at a forward 12-month price-to-earnings multiple of 6.75X, compared to the industry average of 14.86X [11]