SSR Mining: A Glimmer of Hope in the Aftermath of the Çöpler Incident

DENVER, CO - SSR Mining Inc. (Nasdaq/TSX: SSRM; ASX: SSR) shares rose 1.3% in after-hours trading on January 15, 2025, following the company's announcement of expert findings on the cause of the February 13, 2024 Çöpler Incident. The independent review conducted by Call & Nicholas, Inc. (CNI) revealed a deeply-rooted flaw in the third-party engineered design of the heap leach pad, which overestimated the shear strength properties of the liner system, leading to insufficient support for the as-designed heap leach facility.



The review also found that the construction and operation of the heap leach pad were carried out in conformance with the issued-for-construction engineered design parameters. CNI's investigation did not find any substantiation that excess water, ground vibrations from blasting, nor stacking beyond the design caused the event. This finding shifts liability from operational practices to the original design engineers, potentially opening avenues for legal recourse and insurance claims.



Rod Antal, Executive Chairman of SSR Mining, stated, "The independent expert review of the Çöpler Incident has been an important body of work for the Company to determine the cause of the Çöpler Incident. Knowing now that the failure was the result of an engineering design flaw, and not the result of a failure in our operation or construction of the pad, provides clarity and some reassurance to the team on the ground as we seek to restart the Çöpler mine."

However, the inability to provide a restart timeline indicates ongoing regulatory complexity and potential additional requirements from Turkish authorities. The extended shutdown continues to impact cash flow and earnings potential, with a market cap of $1.47B, the company faces pressure on its valuation until there's clarity on regulatory approvals and restart timeline. Investors should monitor Turkish regulatory responses and potential remediation requirements, as these will be critical factors in determining the timeline and costs associated with resuming operations.



In conclusion, while the expert findings provide some clarity on the cause of the Çöpler Incident, the path to resuming operations remains uncertain. Investors should closely monitor the situation and assess the potential financial implications of the extended shutdown. The regulatory response in Türkiye will play a crucial role in shaping the timeline and costs associated with resuming operations at Çöpler.