Why SSR Mining (SSRM) Is One of the Best Gold Royalty and Small-Cap Gold Stocks to Buy?

SSR Mining (SSRM) has emerged as a top choice for investors seeking exposure to the gold royalty and small-cap gold sectors. With a robust production and revenue outlook, a strong financial track record, and a strategic approach to acquisitions, SSRM stands out as an attractive investment opportunity. This article explores the key factors driving SSRM's growth and its competitive position within the industry.

SSRM's diversified portfolio of producing mines and royalty interests contributes significantly to its overall investment appeal. Its flagship Çöpler mine in Türkiye accounted for 37% of total gold production and 31% of revenue in 2023, demonstrating the significance of its international presence. Additionally, SSRM's royalty interests provide steady cash flows, further enhancing its investment appeal.

The company's strong financial performance and growth prospects play a crucial role in its attractiveness as an investment. In 2023, SSRM generated $1.4 billion in revenue, a 24% increase from the previous year, driven by strong production from its key mines. The company's revenue growth has been consistent, with a 5-year CAGR of 17%. SSRM's EBITDA margin of 34% in 2023 reflects its operational efficiency and cost control. Its solid balance sheet, with a debt-to-equity ratio of 0.27 and a current ratio of 4.93, indicates its ability to manage short-term and long-term obligations.

SSRM's experienced management team and strategic acquisitions have significantly contributed to its long-term success and investment potential. The company's CEO, Paul Benson, has over 25 years of experience in the mining industry, leading SSR Mining to consistently meet production guidance targets in 11 of the last 12 years. Additionally, SSR Mining's CFO, Andrew Greig, brings extensive financial expertise, further strengthening the company's leadership. Their strategic acquisitions, such as the purchase of the Marigold mine in 2019 and the Cripple Creek & Victor gold mine in 2023, have expanded SSR Mining's production capacity and diversified its revenue streams.

Despite facing challenges in 2024 due to a February landslide at its Çöpler mine, SSRM's production and revenue outlook remain attractive compared to its peers. In 2024, SSRM is expected to produce 293,000 ounces of gold, marking a -50% decrease from the previous year. However, analysts expect a -42% decline in gold production at its Marigold mine, further impacting SSRM's overall production outlook. Revenue from Marigold operations is projected to be down -33% year over year in 2024, while revenues from Çöpler are expected to be down -90%. Overall, SSR's total revenue in 2024 is expected to decline to $895 million, down from $1.4 billion in 2023. Despite these challenges, SSRM's attributable net asset value (NAV) for the Çöpler mine stands at $314 million, indicating potential for long-term growth.

In conclusion, SSR Mining (SSRM) is a compelling investment opportunity in the gold royalty and small-cap gold stock space, driven by its strong production and revenue outlook, robust financial performance, and strategic investments. Its diversified production portfolio, experienced management team, and commitment to sustainability position it well for long-term success in the gold royalty and small-cap gold stock space. As the demand for gold and other precious metals continues to grow, SSRM's attractive valuation and dividend yield make it an appealing investment for those seeking exposure to the gold royalty and small-cap gold sectors.