10-Q: SSR Mining Reports Q1 2025 Results, Boosted by Higher Gold Prices and CC&V Acquisition

SSR Mining's Q1 2025 results show a significant increase in revenue and a return to profitability, driven by higher gold prices and the acquisition of Cripple Creek & Victor Gold Mine (CC&V).

Summary

• SSR Mining Inc. reported its Q1 2025 financial results, showing a revenue increase of 37.5% to $316.6 million compared to $230.2 million in Q1 2024.
• The increase in revenue was primarily due to a 42.4% increase in the average realized gold price and a 46.4% increase in the realized silver price.
• Net income attributable to SSR Mining shareholders was $58.8 million, a significant improvement from the $287.1 million loss in Q1 2024.
• The company acquired CC&V on February 28, 2025, which contributed $34.9 million in revenue and $10.1 million in net income for the quarter.
• Operations at pler remain suspended following the pler Incident in February 2024, impacting gold production and sales.
• Cash and cash equivalents decreased to $319.6 million from $387.9 million at the end of 2024, mainly due to the CC&V acquisition and capital expenditures.
• The company's consolidated effective income tax rate was 14.3% for the first three months of 2025 compared to 5.4% for the first three months of 2024.

Sentiment

Score: 7

Explanation: The report shows a positive turnaround in financial performance, driven by higher gold prices and the CC&V acquisition. However, the ongoing suspension of operations at pler and the associated costs temper the overall sentiment.

Positives

• Significant increase in revenue driven by higher gold and silver prices.
• Return to profitability with net income attributable to SSR Mining shareholders of $58.8 million.
• Successful acquisition of CC&V, contributing to revenue and net income.
• Increased silver production at Puna due to higher silver mill feed grade and more ore tonnes milled.
• Marigold mine saw an increase in gold production due to higher grade ore stacked.
• Seabee Gold Operation saw an increase in gold production as a result of higher gold mill feed grade and gold recovery rates.

Negatives

• pler operations remain suspended, impacting gold production and sales.
• Care and maintenance costs at pler were $35.8 million for the quarter.
• Cash and cash equivalents decreased by $68.3 million.
• Foreign exchange loss of $6.1 million due to the weakening of the ARS against the USD.
• General and administrative expenses increased due to higher share-based compensation expense.

Risks

• The ongoing suspension of operations at pler continues to impact the company's overall production and financial results.
• The company faces risks related to estimating and managing reclamation and remediation costs, particularly at pler.
• Fluctuations in commodity prices, especially gold and silver, can significantly impact revenue and profitability.
• The company's operations are subject to various environmental and regulatory risks.
• The company is involved in legal proceedings, including securities class actions, which could result in significant costs and liabilities.
• The company's business may be impacted by adverse macroeconomic and geopolitical conditions, including inflation, interest rate and foreign currency fluctuations and slowdown of economic activity around the world.

Future Outlook

The company is focused on integrating CC&V, managing the ongoing situation at pler, and optimizing operations at its other mines. The company believes that its current liquidity position is sufficient to sustain the operational needs of the Company for the next twelve months without needing to borrow under its Second Amended Credit Agreement.

Industry Context

The report reflects the broader trend of rising gold prices benefiting mining companies. The acquisition of CC&V aligns with the industry's focus on consolidation and portfolio diversification. The pler Incident highlights the operational and safety risks inherent in the mining industry.

Comparison to Industry Standards

• SSR Mining's AISC per gold equivalent ounce sold of $1,972 is higher than some of its peers, such as Agnico Eagle Mines Limited, which reported AISC of $1,275 per ounce in Q1 2025.
• However, SSR Mining's production costs are lower than those of some smaller gold producers, such as Argonaut Gold Inc., which reported AISC of $2,114 per ounce in Q1 2025.
• The company's silver production costs at Puna are competitive with other silver producers in South America, such as Pan American Silver Corp.

Legal Proceedings

• The company is defending itself against securities class actions in the United States and Canada related to the pler Incident.
• On August 9, 2024, carriage of the proposed Ontario Actions was granted to the Liang Action, and on April 11, 2025, carriage of the proposed BC Actions was granted to the Padley Action.
• The Jones Action and Mutat Action are stayed as of such decisions.

Related Party Transactions

• Artmin entered into loan agreements with Horizon to fund Horizons portion of working capital spend of the Hod Maden project.
• Anagold Madenncilik Sanayi ve Ticaret A. entered into loan agreements with Aktif Bank to fund Lidya Mines portion of reclamation and environmental obligations.

Stakeholder Impact

• Shareholders will benefit from the improved financial performance and the potential for future growth.
• Employees at CC&V will become part of SSR Mining's workforce.
• The pler Incident continues to impact employees and communities in Trkiye.
• The company is committed to responsible environmental stewardship and community engagement.

Next Steps

• The company will continue to integrate CC&V into its operations.
• The company will continue to manage the situation at pler, including reclamation and remediation efforts.
• The company will focus on optimizing operations at its other mines.
• CC&V continues to study alternative long-term remediation plans for water discharged from the Carlton Tunnel, and is also working with regulators on site specific standards, a Discharger Specific Variance ('DSV') and other potential approaches to identify highest feasible alternative treatment in the context, based on limits such as area topography.
• CC&V formally submitted its proposal for the DSV and the matter will be presented to the Water Quality Control Commission in a June 2025 rulemaking hearing.

Key Dates

Keywords

SSR Mining, Gold, Silver, Q1 2025, Financial Results, CC&V Acquisition, pler Incident, Mining, Production, Revenue, Net Income