SSR Shares Up on High Production and Higher Gold Prices (ASX:SSR)

SSR Shares Up on High Production and Higher Gold Prices (ASX:SSR)

The SSR Mining Inc [ASX:SSR] shares are up 7.80% today after releasing its first quarter results.

SSR Mining is a company with a diversified portfolio in six jurisdictions. The company is focused on gold and silver production from Çöpler Gold Mine in Turkey, Marigold mine in the US, Seabee Gold Operations in Canada, and Puna Operations in Argentina.

What were the results?

SSR Mining produced 170,149 ounces of gold for the quarter, a 93% increase from Q1 2020, when the company produced 87,968 ounces of gold.

The company also produces silver, lead, and zinc. Overall SSR Mining delivered production of 196,094 gold-equivalent ounces for the quarter, up close to 83% from the previous quarter when SSR Mining produced 107,331 gold-equivalent ounces.

All in sustaining costs (AISC) were $1,004 per ounce compared to the $1,261 in the previous corresponding quarter. Average realised price of gold for the quarter was US$1,798, a 12.5% increase from the same quarter last year.

More production, less costs, and higher gold prices combined for the company to generate over $145 million in cash from operating activities. This is an increase of 126% from the previous corresponding quarter.

What’s next the SSR Share Price?

SSR Mining say they are on track to meet full-year guidance, which is 720–800 koz gold equivalent. The company has declared a quarterly cash dividend of 5 cents to be paid on 14 June.

Shares for SSR Mining rallied to $22.28 in an earlier trade but at time of writing they are at $22.10, a 7.8% increase from yesterday’s close.

Gold prices rallied last year to hit a high of US$2,075 an ounce. They dropped in March this year to the US$1,600 mark, but in the last few weeks they’ve been climbing. An ounce of gold is currently at around US$1,820.

Australia could be set to become the ‘epicentre’ of the next gold bull run. Check out the reasons why here.


Selva Freigedo,
For The Daily Reckoning Australia