Bank of America Securities analyst Lawson Winder maintained a Sell rating on SSR Mining (SSRM – Research Report) today and set a price target of $12.50.
Lawson Winder has given his Sell rating due to a combination of factors impacting SSR Mining’s near-term performance and market expectations. The company’s 2024 production and cost guidance falls short of current estimates, indicating an upcoming period of lower-than-anticipated operating and financial results. The 2024 gold equivalent ounce (GEO) production is guided to be between 540-600k with all-in sustaining costs (AISC) higher than the Bank of America estimates and consensus forecasts. Additionally, the capital expenditure for 2024 is expected to be more than previously estimated by Bank of America, though slightly less than other consensus figures, which provides a slight buffer against negative earnings impacts.
The outlook for 2025 and 2026 isn’t favorable either, with SSRM’s production guidance also missing the mark compared to Bank of America’s expectations and other consensus estimates. Notably, the projected fall-off in production from Seabee and Puna in 2026 is significantly lower than forecasted. While the long-term production guidance for 2027 and 2028 appears positive, Winder suggests that the market is not likely to reward SSRM for future gains given the competitive gold equity investment landscape and the immediate challenges faced by the company. The decrease in year-over-year gold reserves, particularly the 9% reduction at Marigold, further emphasizes the company’s diminishing near-term prospects.
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SSR Mining (SSRM) Company Description:
SSR Mining, Inc. engages in the operation, development, exploration, and acquisition of precious metal projects. It focuses on the Puna, Marigold Mines, and Seabee Gold Operations. The company was founded on December 11, 1946 is headquartered in Vancouver, Canada.
Read More on SSRM:
- SSR Mining Inc. Announces Suspension of Çöpler Mine Operations
- SSR Mining Inc Updates Key Property Technical Reports
- SSR Mining price target lowered to C$17 from C$18 at National Bank
- SSR Mining price target lowered to C$22 from C$26 at Scotiabank
- SSR Mining reports Q4 production 211,100 gold equivalent ounces
