SSR Mining's Q1 2025 Earnings: A Solid Start Amid Strategic Shifts

SSR Mining Inc. (SSRM) delivered a robust opening quarter in 2025, with strong free cash flow generation, expanded production metrics, and progress on its key projects. However, the Canadian-based gold producer also faces familiar headwinds, including permitting delays at its Copler mine in Turkey and inflationary pressures at its flagship Hod Maden project. Here’s what investors need to know.

Financial Resilience and Liquidity Strength

The quarter began with SSR Mining generating $39 million in free cash flow, a figure that underscores its ability to self-fund operations despite ongoing challenges. Operating cash flow reached $85 million, while the company maintained a $320 million cash balance after paying $100 million for its January acquisition of the Cripple Creek & Victor (CC&V) mine. Total liquidity, including credit facilities, now exceeds $800 million, providing a buffer for future investments or market volatility.

Net income of $0.28 per diluted share lagged slightly behind adjusted results due to $36 million in non-cash care-and-maintenance costs at the Copler mine. Excluding these costs, adjusted net income was $0.29 per share, aligning with management’s focus on stripping out one-time expenses to highlight core performance.

Production Growth and Operational Highlights

SSR Mining’s production metrics reflect both the success of its asset base and the early impacts of the CC&V acquisition:
- Total gold equivalent ounces (GEO) rose to 104,000 GEO, with CC&V contributing 11,300 ounces in March after its acquisition.
- Marigold Mine, SSR’s largest asset, produced 39,000 ounces at an all-in sustaining cost (AISC) of $1,765 per ounce, with higher grades expected in the second half of the year.
- Seabee Mine outperformed with 26,000 ounces at an AISC of $1,374 per ounce, though grades are expected to normalize later in 2025.
- Puna Silver Mine delivered 2.5 million ounces of silver at $13.16 per ounce, with efforts underway to extend mine life through laybacks and exploration.

The inclusion of CC&V has already boosted production guidance for 2025 to 410,000–480,000 GEO, a 10% midpoint increase compared to 2024. Excluding Copler’s care costs, the company’s AISC is projected to range between $1,890–$1,950 per ounce, a figure that positions SSR competitively against peers.

Key Projects: Hod Maden and Copler

The quarter saw progress at Hod Maden, Turkey’s largest undeveloped gold deposit, where SSR spent $12 million on site preparation and infill drilling. However, inflation in Turkey—now rising at 10%–15% annually since the 2022 feasibility study—threatens to increase capital costs. Management remains committed to the project, with engineering and tendering advancing toward a final investment decision.

Meanwhile, Copler Mine remains in care-and-maintenance mode due to regulatory hurdles. While management is pursuing permits for closure plans and an e-storage facility, no timeline is provided, leaving its restart uncertain. Notably, SSR has separated Copler’s permitting challenges from the greenfield Hod Maden project in its communications, aiming to avoid conflating risks.

Risks and Considerations

• Copler’s Uncertainty: Delays in Copler’s closure permits could strain cash reserves if costs escalate further.
• Turkish Inflation: Higher costs at Hod Maden may pressure project economics, though SSR’s liquidity provides some cushion.
• Grade Variability: Seabee’s Q1 grades exceeded reserves, but normalized levels later in the year could affect margins.

Conclusion: A Balanced Outlook

SSR Mining’s Q1 results highlight its financial resilience and operational discipline. With $800 million in liquidity, a 10% production growth target, and the CC&V mine’s strong reserves (2.4 million ounces), the company is well-positioned to capitalize on its assets. However, risks remain concentrated in Turkey, particularly with Copler’s uncertain future and Hod Maden’s inflation-driven cost pressures.

Investors should monitor Hod Maden’s technical report (due Q3 2025) and any regulatory updates on Copler. If SSR can navigate these challenges, its $1.9 billion market cap could see upward pressure, especially if gold prices remain above $2,000 per ounce. For now, the quarter’s results suggest a company managing both growth and risk with a clear—if complex—strategic vision.