10-Q: SSR Mining Soars on Q3 Earnings, CC&V Acquisition Boosts Gold Output

SSR Mining reported significantly improved financial results for Q3 2025, driven by higher gold and silver prices and the strategic acquisition of the Cripple Creek & Victor Gold Mine.

Summary

• Net income attributable to shareholders surged to $65.4 million ($0.32 basic EPS) for Q3 2025, a substantial increase from $10.6 million ($0.05 basic EPS) in Q3 2024.
• Revenue for Q3 2025 increased by 49.9% to $385.8 million, compared to $257.4 million in the prior year period.
• For the nine months ended September 30, 2025, net income attributable to shareholders was $214.3 million ($1.06 basic EPS), a significant turnaround from a net loss of $266.8 million ($1.32 basic EPS) in the same period of 2024.
• The acquisition of Cripple Creek & Victor (CC&V) Gold Mine on February 28, 2025, for $100 million upfront and up to $175 million in milestone payments, contributed $98.2 million in revenue and $42.5 million in net income to SSR Mining shareholders for Q3 2025.
• Gold production increased by 19.1% to 75,212 ounces in Q3 2025, primarily due to the CC&V acquisition.
• Average realized gold price rose by 38.4% to $3,503 per ounce, and average realized silver price increased by 39.5% to $41.92 per ounce in Q3 2025.
• Net cash provided by operating activities for the nine months ended September 30, 2025, was $299.8 million, a significant improvement from cash used of $54.8 million in the prior year.
• Free cash flow for the nine months ended September 30, 2025, was $135.3 million, compared to a negative $159.8 million in the same period of 2024.
• The pler Gold Mine remains suspended since February 13, 2024, with care and maintenance costs of $37.3 million in Q3 2025 and $109.8 million for the nine months ended September 30, 2025.
• Reclamation and remediation costs for pler were revised upwards by $62.9 million in Q2 2025, reflecting advanced engineering designs for a permanent storage facility and closure studies.
• Received $44.4 million in business interruption insurance proceeds related to the pler Incident during the nine months ended September 30, 2025.

Sentiment

Score: 7

Explanation: Strong financial performance driven by higher commodity prices and the CC&V acquisition, leading to significant revenue and profit growth. However, the ongoing indefinite suspension of pler operations and associated rising remediation costs, coupled with increasing G&A expenses and legal proceedings, temper the overall positive sentiment.

Positives

• Substantial increase in revenue and net income year-over-year, driven by higher commodity prices and the CC&V acquisition.
• Strong operating income and net income attributable to SSR Mining shareholders for both the three and nine months ended September 30, 2025.
• Positive free cash flow of $135.3 million for the nine months ended September 30, 2025, a significant turnaround from a negative free cash flow in the prior year.
• Successful integration and contribution from the newly acquired Cripple Creek & Victor Gold Mine.
• Receipt of $44.4 million in business interruption insurance proceeds related to the pler Incident.
• The company is in compliance with its debt covenants as of September 30, 2025.

Negatives

• pler Gold Mine operations remain suspended indefinitely following the February 2024 incident, incurring significant care and maintenance costs ($37.3 million in Q3 2025).
• Reclamation and remediation cost estimates for pler were revised upwards by $62.9 million in Q2 2025, indicating higher expected closure costs.
• Silver production decreased by 16.5% in Q3 2025, and lead production decreased by 25.7% at Puna.
• Cost of sales per gold equivalent ounce sold increased by 10.2% in Q3 2025 and 9.0% for the nine months ended September 30, 2025.
• Cash cost per gold equivalent ounce sold increased by 10.4% in Q3 2025 and 9.5% for the nine months ended September 30, 2025.
• AISC per gold equivalent ounce sold increased by 14.2% in Q3 2025 and 13.0% for the nine months ended September 30, 2025.
• General and administrative expenses more than doubled in Q3 2025 to $40.2 million, primarily due to a $19.8 million increase in share-based compensation expense.
• Foreign exchange loss increased to $12.8 million in Q3 2025, primarily due to the weakening of the Argentine Peso against the USD.
• The 2019 Notes ($229.4 million) were reclassified to current portion of debt, indicating a near-term maturity.

Risks

• Revenue, profitability, and future growth are substantially dependent on volatile prices for gold, silver, lead, and zinc, which are affected by factors beyond the company's control.
• A substantial or extended decline in commodity prices could lead to material impairment charges on mineral properties, plant and equipment, inventories, and deferred income tax assets.
• Maintaining cash balances at banking institutions in various jurisdictions, some without deposit insurance, poses a risk of loss or lack of access to funds.
• Business may be impacted by adverse macroeconomic and geopolitical conditions, including inflation, interest rate and foreign currency fluctuations, and slowdown of economic activity.
• Fluctuations in exchange rates of the Turkish Lira, Canadian Dollar, Argentine Peso, or other operating currencies against the USD could result in losses.
• Operations in countries with high inflation may lead to increased operational costs in local currencies without concurrent devaluation or commodity price increases.
• Business may be impacted by physical risks at properties, such as those experienced in connection with the pler Incident.
• The company is unable to estimate or predict when and under what conditions operations will resume at pler, and the heap leach pad will be permanently closed.
• Significant and potentially increasing reclamation and remediation costs, particularly for pler and CC&V (Carlton Tunnel).
• Ongoing securities class actions in the US and Canada related to the pler Incident, and potential wage and hour class actions, could result in unspecified compensatory damages.
• Need to obtain regulatory approvals for CC&V (Cresson Permit amendment, Carlton Tunnel flow-related permitting) for milestone payments.
• Potential exposure to taxes under OECD's Pillar Two rules, in the range of $0 to $10.0 million for 2025.

Future Outlook

The company expects to continue advancing its development projects as market and project conditions permit. It is currently evaluating the impact of new accounting standards (ASU 2025-06, ASU 2024-03, ASU 2023-09) on its financial statements. The company anticipates limited exposure to OECD Pillar Two taxes, estimated in the range of $0 to $10.0 million for the 2025 year. The company believes its current liquidity is sufficient for operational needs for the next twelve months but may seek additional capital if needed. The company is unable to estimate when operations at pler will resume.

Management Comments

• "Our 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."
• "The pler Incident is expected to have a significant impact on the Company’s operations, results of operations, cash flows and financial condition."
• "At this time, we are not able to estimate or predict when and under what conditions operations will resume at pler."
• "We are defending ourselves against these claims [securities class actions]."

Industry Context

The precious metals mining industry is highly sensitive to commodity price fluctuations. The reported increases in average realized gold and silver prices reflect a generally favorable market environment for precious metals during the period. Strategic acquisitions, like SSR Mining's purchase of CC&V, are common in the industry to enhance scale, portfolio diversification, and free cash flow, especially when companies seek to offset impacts from operational disruptions at other sites (e.g., pler). The ongoing challenges with environmental regulations and legal proceedings, as seen with the pler Incident and Carlton Tunnel, highlight the increasing scrutiny and operational complexities faced by mining companies globally. The temporary suspension at Seabee due to forest fires also underscores the growing impact of climate-related events on mining operations.

Comparison to Industry Standards

• The acquisition of CC&V for $100 million upfront and up to $175 million in milestone payments is a significant transaction, comparable to other mid-tier gold asset acquisitions in the sector aimed at consolidating production and reserves. For example, recent transactions in the gold sector have seen valuations based on reserves and resources, with upfront payments often supplemented by contingent considerations tied to operational or permitting milestones.
• The increase in AISC per gold equivalent ounce sold to $2,131 for the nine months ended September 30, 2025, is higher than some industry peers, particularly those with lower-cost, larger-scale operations. For instance, some major gold producers might report AISC in the range of $1,200-$1,600 per ounce, while others with more challenging or smaller operations could be higher. The increase is partly attributable to the ongoing care and maintenance costs at pler and operational adjustments at other sites.
• The company's positive free cash flow of $135.3 million for the nine months ended September 30, 2025, is a strong indicator of operational efficiency and capital discipline, especially compared to the negative free cash flow in the prior year. This positions the company favorably against peers struggling with cash generation.
• The indefinite suspension of pler operations due to a heap leach pad slip is a major operational and environmental incident, drawing parallels to other significant mining disasters globally that have led to long-term closures and substantial remediation costs, such as the Samarco dam collapse in Brazil or the Mount Polley tailings pond breach in Canada. The estimated reclamation and remediation costs of over $272.9 million (and revised upwards) are substantial for a single site.

Legal Proceedings

• **US Securities Class Actions**: Two related putative securities class actions (Karam Akhras v. SSR Mining Inc., et. al. and Eric Lindemann v. SSR Mining Inc., et. al.) were consolidated. They allege violations of Section 10(b) and 20(a) of the Exchange Act, claiming materially false and misleading public statements regarding internal controls, safety practices, and operational integrity at pler. A motion to dismiss the consolidated amended complaint was granted without prejudice on September 30, 2025.
• **Canadian Securities Class Actions**: Four putative securities class actions (Glenna Padley v. SSR Mining Inc., et. al., Abdurrazag Mutat v. SSR Mining Inc., et al., Chao Liang v. SSR Mining Inc., et. al., and Michael Jones v. SSR Mining., et. al.) were filed. They assert claims for alleged misrepresentations at common law and in contravention of provincial securities law disclosure obligations. Carriage of the proposed Ontario Actions was granted to the Liang Action, and BC Actions to the Padley Action, with the other two stayed.
• **Wage and Hour Class Actions**: Certain subsidiaries are or may become subject to putative wage and hour class action litigation in Colorado and Nevada, seeking unspecified damages for alleged violations of federal, state, and municipal wage and hour laws.
• The company believes any liability for these lawsuits is not probable and reasonably estimable at this time, and is defending its subsidiaries against these claims.

Related Party Transactions

• **Related Party Prepaids**: Advanced $24.5 million to Gap İnşaat (a wholly owned subsidiary of Calik Holding, which owns Lidya Mines, the company's joint venture partner) for development activities at Hod Maden.
• **Related Party Loan**: Artmin Madencilik Sanayi Ve Ticaret A. (a subsidiary) entered into loan agreements with Mariana (as lender) to fund Horizon Copper Corp.'s portion of working capital for the Hod Maden project. $42.1 million was outstanding as of September 30, 2025, with interest at the credit default swap premium of Trkiye plus 4.0%, maturing between June 2028 and December 2029.
• **Related Party Line of Credit**: Anagold Madencilik Sanayi ve Ticaret A. (majority-owned subsidiary) amended loan agreements with Aktif Bank (wholly owned subsidiary of Calik Holding) for up to $11.0 million to fund Lidya Mines' portion of reclamation and environmental obligations. The maturity date was extended to August 7, 2026, and the interest rate increased to 10.15% per annum. $11.0 million was outstanding as of September 30, 2025.

Stakeholder Impact

• **Shareholders**: Positive impact from significantly improved net income, EPS, and free cash flow, driven by higher commodity prices and the CC&V acquisition. However, ongoing costs and uncertainties related to the pler Incident and associated legal proceedings could be a concern. The reclassification of 2019 Notes to current debt also presents a near-term financial obligation.
• **Employees**: Operations at pler remain suspended, impacting employees there. Temporary suspension at Seabee due to forest fires also affected operations. The CC&V acquisition likely brought new employees into the company.
• **Customers**: Continued production from Marigold, CC&V, Seabee, and Puna ensures supply of gold, silver, lead, and zinc concentrates.
• **Suppliers**: Ongoing operational activities at active mines and care/maintenance at pler would involve various suppliers.
• **Creditors**: The company is in compliance with its debt covenants. The 2019 Notes reclassification to current highlights a significant debt maturity in April 2026, which will require attention.
• **Regulatory Authorities**: Ongoing engagement with regulators regarding pler reclamation, CC&V permitting (Carlton Tunnel), and mine safety disclosures.

Next Steps

• Continue to advance development projects as market and project conditions permit.
• Refine estimates and assumptions for the preliminary purchase price allocation of CC&V within the measurement period (up to one year from acquisition date).
• Conduct further field investigations to confirm the integrity of the pler heap leach pad liner and use findings to refine and update the closure plan.
• Continue to work with the Water Quality Control Division on a proposal for a Discharger Specific Variance (DSV) and an extension request for compliance with certain water quality standards for the Carlton Tunnel at CC&V.
• Evaluate the impact of new accounting standards (ASU 2025-06, ASU 2024-03, ASU 2023-09) on consolidated financial statements.
• Defend against ongoing US and Canadian securities class actions and wage and hour class actions.
• Manage the upcoming redemption right for the 2019 Notes due April 1, 2026.

Key Dates

Recommendation

The company demonstrated a strong financial turnaround, primarily driven by favorable commodity prices and the strategic acquisition of CC&V, which significantly boosted revenue and profitability. The positive free cash flow is a notable improvement. However, the indefinite suspension of the pler mine, coupled with rising reclamation costs and ongoing legal challenges, presents a material overhang and significant uncertainty. While the core business performance is robust, these unresolved issues warrant a cautious approach. Investors should hold to monitor the resolution of the pler situation and the impact of the upcoming debt maturity.

Keywords

Gold Mining, Silver Mining, Precious Metals, SEC Filing, 10-Q, SSR Mining, CC&V Acquisition, pler Incident, Mining Operations, Financial Results, Commodity Prices, Exploration, Risk Management, Corporate Governance, Nevada, Colorado, Trkiye, Canada, Argentina