SSR Mining (SSRM) Delivers Strong Q1 2025 Results, Eyes Long-Term Growth Amid Operational Challenges

SSR Mining Inc. (SSRM) has emerged as a compelling play in the gold sector following its robust Q1 2025 earnings, marked by strong production growth, disciplined cost management, and strategic progress on key assets. The integration of the Cripple Creek & Victor (CC&V) mine, acquired in early 2025, has been a catalyst for growth, while the company’s liquidity remains a cornerstone of its financial resilience. Yet, lingering risks—including regulatory hurdles at the Copler mine and rising costs in Turkey—highlight the need for cautious optimism. Let’s dissect the numbers and strategic priorities shaping SSR Mining’s outlook.

Financial Fortitude Amid Growth Investments

SSR Mining’s Q1 results underscore its ability to balance growth with fiscal prudence. Total gold equivalent production rose to 104,000 ounces, including 39,300 ounces from CC&V, which now accounts for nearly 40% of output. While the All-In Sustaining Cost (AISC) came in at $1,972 per ounce, excluding the $36 million in care-and-maintenance costs at Copler, the adjusted AISC dropped to $1,749 per ounce—a figure that competes favorably with industry peers.

The company’s liquidity stands at a robust $800 million, supported by $39 million in free cash flow and a $320 million cash balance, even after a $100 million payment for CC&V. This financial flexibility positions SSR Mining to advance its flagship projects, such as the $60–$100 million capital spend planned for Turkey’s Hod Maden gold project in 2025.

Operational Highlights: CC&V’s Star Turn and Mine Life Extensions

The star of the quarter was the CC&V acquisition, which has already transformed SSR Mining’s production profile. The mine’s reserves surged to 2.4 million ounces (up 85% year-over-year), and its integration into the portfolio is expected to add 10 months of production in 2025. A technical report and life-of-mine plan, slated for release by Q3 2025, will be critical in validating CC&V’s long-term potential, particularly as the company explores oxide reserve expansions at sites like Buffalo Valley.

Other mines also delivered:
- Marigold (Nevada) produced 39,000 ounces at an AISC of $1,765/oz, with grades set to peak in H2 2025.
- Seabee (Canada) generated 26,000 ounces despite higher-than-expected grades in Q1, which are expected to normalize in subsequent quarters.
- Puna (Argentina) maintained its silver production at 2.5 million ounces, with efforts underway to extend mine life via layback expansions at Chinchillas.

Strategic Priorities: Hod Maden and Regulatory Risks

SSR Mining’s growth narrative hinges on advancing Hod Maden, a high-grade gold project in Turkey. Initial site work in Q1 cost $12 million, with $60–$100 million allocated for 2025 to accelerate infrastructure development. However, inflation in Turkey—up 10–15% since the 2022 feasibility study—has raised capital cost concerns. Management remains committed to securing financing and advancing the project toward construction, though timing remains uncertain.

Meanwhile, the Copler mine, idled since 2022, remains a regulatory headache. While $5 million was spent on remediation and closure plans in Q1, no timeline exists for permit approvals. The mine’s restart is critical to unlocking value, but its status as a “separate project” from Hod Maden reduces operational interdependency—a key point for investors assessing risk exposure.

Risks and Challenges Ahead

• Regulatory Delays: Copler’s unresolved permits and Turkey’s macroeconomic volatility (e.g., inflation, currency fluctuations) pose execution risks.
• Cost Inflation: Rising input prices, particularly in Turkey, could pressure AISC metrics and project economics.
• Market Sentiment: Gold prices remain range-bound, though SSR Mining’s low-cost assets should mitigate downside risks.

Conclusion: A Strong Foundation, but Risks Linger

SSR Mining’s Q1 results demonstrate its ability to execute on strategic priorities while maintaining financial discipline. Key positives include:
- Liquidity: $800 million in total liquidity provides a buffer for capital-intensive projects.
- Production Growth: The 10% increase in 2025 guidance (to 410,000–480,000 ounces) underscores CC&V’s impact.
- Catalysts: The Q3 CC&V technical report and Hod Maden’s construction decision are near-term inflection points.

However, investors must weigh these positives against regulatory uncertainties and inflationary pressures. For now, SSR Mining appears well-positioned to capitalize on its asset base, but success will depend on executing its technical and regulatory roadmap. With its strong cash position and growth drivers in sight, SSRM is a compelling long-term bet for gold investors willing to navigate near-term headwinds.