Ssr Mining Inc. (NASDAQ: SSRM)

Sector: Basic Materials Industry: Gold CIK: 0000921638
Market Cap 4.92 Bn
P/B 1.48
P/E 22.37
P/S 3.44
ROIC (Qtr) 6.54
Div Yield % 0.00
Rev 1y % (Qtr) 49.92
Total Debt (Qtr) 365.03 Mn
Debt/Equity (Qtr) 0.11

About

SSR Mining Inc., also known as SSRM, is a prominent player in the precious and base metals mineral exploration and mining industry. With a strong focus on the operation, acquisition, exploration, and development of mineral resources, the company has established itself as a mid-tier precious metals mining company. SSR Mining Inc. operates in various countries, including the United States, Türkiye, Canada, and Argentina. The primary source of revenue for SSR Mining Inc. comes from the sale of gold, silver, copper, lead, and zinc concentrates....

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Price action

Investment thesis

Bull case

  • Strong operating cash flow of 394.78M provides robust 1.08x coverage of total debt 365.03M, indicating excellent debt servicing capability and financial flexibility.
  • Strong tangible asset base of 5.91B provides 16.18x coverage of total debt 365.03M, indicating robust asset backing and low credit risk.
  • Operating cash flow of 394.78M provides exceptional 27.22x coverage of interest expenses 14.51M, showing strong debt service capability.
  • Strong operating cash flow of 394.78M provides 3.64x coverage of SG&A expenses 108.31M, showing efficient operational cost management.
  • Retained earnings of 327.66M provide full 2.74x coverage of long-term debt 119.71M, indicating strong internal capital position.

Bear case

  • Operating cash flow of 394.78M barely covers its investment activities of (325.92M), with a coverage ratio of -1.21, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
  • Investment activities of (325.92M) provide weak support for R&D spending of 33M, which is -9.88x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
  • Cash reserves of 409.33M provide limited coverage of acquisition spending of (105.96M), which is -3.86x, suggesting aggressive expansion might strain liquidity if market conditions deteriorate.
  • Operating earnings of 319.62M show weak coverage of depreciation charges of 123.41M, with a 2.59 ratio indicating high capital intensity and potential reinvestment needs.
  • Operating cash flow of 394.78M barely covers operating expenses of 377.76M with a 1.05 ratio, suggesting thin operational efficiency margins and limited flexibility.

Segments Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the Gold
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 NEM NEWMONT Corp /DE/ 92.44 Bn 45.40 7.57 5.65 Bn
2 B Barrick Mining Corp 76.96 Bn 15.41 4.54 4.70 Bn
3 WPM Wheaton Precious Metals Corp. 61.71 Bn 61.61 33.72 0.01 Bn
4 AEM Agnico Eagle Mines Ltd 47.57 Bn 61.82 12.38 0.34 Bn
5 FNV FRANCO NEVADA Corp 44.75 Bn 48.65 28.94 0.00 Bn
6 KGC Kinross Gold Corp 39.48 Bn 22.44 6.13 1.24 Bn
7 PAAS Pan American Silver Corp 20.12 Bn 31.73 6.18 0.86 Bn
8 AGI Alamos Gold Inc 16.77 Bn 31.14 10.42 0.28 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 0.82 3.24
EV to Cash from Ops. EV/CFO 12.31 -9.75
EV to Debt EV to Debt 13.32 538.62
EV to EBIT EV/EBIT 15.21 13.99
EV to EBITDA EV/EBITDA 11.66 3.53
EV to Free Cash Flow [EV/FCF] EV/FCF 25.36 9.65
EV to Market Cap EV to Market Cap 0.99 1.17
EV to Revenue EV/Rev 3.40 8.77
Price to Book Value [P/B] P/B 1.48 6.25
Price to Earnings [P/E] P/E 22.37 2.29
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 1.56
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 5.23
Dividend per Basic Share Div per Share (Qtr) 0.00 0.17
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 10.03
Interest Coverage Int. cover (Qtr) 22.03 406.36
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -27.81 -97.51
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 22.43 132.70
Dividend Growth (1y) % Div 1y % (Qtr) 0.00 -5.81
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 148.57 515.87
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 184.03 51.77
EBIT Growth (1y) % EBIT 1y % (Qtr) 158.02 678.32
EBT Growth (1y) % EBT 1y % (Qtr) 154.18 143.06
EPS Growth (1y) % EPS 1y % (Qtr) 145.38 225.30
FCF Growth (1y) % FCF 1y % (Qtr) 1,910.61 181.86
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 56.86 85.33
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.24 0.26
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.03
Cash Ratio Cash Ratio (Qtr) 0.82 3.07
Current Ratio Curr Ratio (Qtr) 2.41 4.83
Debt to Equity Ratio Debt/Equity (Qtr) 0.11 0.27
Interest Cover Ratio Int Coverage (Qtr) 22.03 406.36
Times Interest Earned Times Interest Earned (Qtr) 22.03 406.36
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 31.00 -19.76
EBIT Margin % EBIT Margin % (Qtr) 22.33 -44.58
EBT Margin % EBT Margin % (Qtr) 21.32 -34.78
Gross Margin % Gross Margin % (Qtr) 56.80 30.79
Net Profit Margin % Net Margin % (Qtr) 15.40 -40.46