Yesterday, SSR Mining (TSX: SSRM) reported its third quarter results. SSR Mining reported revenue of $225.4 million and adjusted EPS of $0.49/share. They also initiated a $0.05 per share dividend starting in the first quarter of 2021 and raised their full year production guidance to 680,000 – 760,000 gold equivalent ounces and an all-in sustaining cost of $1,040.
Canaccord came out with an analyst note reiterating their buy rating and C$35 12-month price target. Dalton Baretto comments, “We continue to like the company for its scale, projected free cash flow profile, moderate jurisdictional risk, compelling valuation, and a key catalyst on the horizon in the form of the Copler technical report. Also, management’s track record and responses to our questions on the call have given us comfort that the company is in safe hands.”
Baretto says this quarter is, “Generally more messy reporting than a typical quarter, as expected, given that the ASR transaction closed 14 days before the end of the quarter.” SRR Mining’s results came in below all of Canaccord’s estimates, which you can see below.
Baretto calls SRR Minings dividend ” rock-solid,” and based on their estimates, they can maintain this dividend even if the gold price declines below $900/ounce.
Barretto says that even after large changes to the management and board following the ASR merger, “SSRM appears to have retained its conservative identity with respect to balance sheet management and capital allocation.” He adds that “management does not appear to be in a hurry to deploy significant capital,” but are prioritizing exploration spending and optimization opportunities.
Information for this briefing was found via Sedar and Refinitiv. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.