SSR Mining (SSRM – Research Report), the Basic Materials sector company, was revisited by a Wall Street analyst today. Analyst Lawson Winder from Bank of America Securities reiterated a Sell rating on the stock and has a $4.50 price target.
Lawson Winder has given his Sell rating due to a combination of factors including the aftermath of an incident at SSR Mining’s Çöpler mine. The company’s fourth quarter earnings exceeded expectations, but these results do little to brighten the company’s future prospects. The ongoing uncertainty surrounding the Çöpler mine, following the heap leach pad slip, casts a significant shadow on the company’s operations. In addition to the operational challenges, SSR Mining has suspended its dividend payments and share buyback program indefinitely, which negatively impacts the investment appeal of the stock.
Furthermore, the company faces serious legal challenges, with several employees charged with crimes related to the incident at Çöpler, and environmental permits for the mine have been revoked. SSR Mining has also halted development at the Hod Maden project due to the perceived risk of permit revocation. Winder’s analysis leads to the removal of the Hod Maden project from the company’s net asset value, and a reduced price objective for the stock. These combined issues contribute to a bleak outlook for SSR Mining, prompting the Sell rating and the anticipation of potential criminal or civil sanctions that could further impact the company’s financial health and operational capabilities.
In another report released on February 20, RBC Capital also downgraded the stock to a Sell with a $3.00 price target.
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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.
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