SSR Mining's Free Cash Rebounds in Q1: A Sign of Lasting Recovery?

SSR Mining SSRM reported a notable financial turnaround in the first quarter of 2025, generating adjusted free cash flow of $39.3 million. This contrasts sharply with the $9.4 million outflow recorded in the year-ago quarter. 

Operating cash flow soared 244% year over year to $84.8 million, attributed to a 42.4% higher average realized gold price and lower remediation expenditures related to the suspension of operations at Çöpler in Turkiye. However, these gains were partially offset by a 13% decline in gold ounces sold.

SSR Mining ended the quarter with $319.6 million in cash and cash equivalents. This included the $100 million upfront cash consideration made for the acquisition of the CC&V mine from Newmont NEM on Feb. 28, 2025. Total liquidity stood at $819.6 million, including its undrawn revolving credit facility and an accordion feature.

In 2024, SSRM’s operating cash flow had dropped significantly to $40.1 million from $421.7 million in 2023. Free cash was a negative $103 million. This was due to a 44.2% decrease in gold equivalent ounces sold and higher expenditures for remediation and care and maintenance linked to Çöpler. This was offset by a 22% year-over-year rise in average gold price.

Operations at Çöpler mine have been suspended due to a heap leach failure on Feb. 13, 2024. Reclamation and remediation spend in 2024 totaled $127.6 million, and the forecasted spend from April 1, 2024, onward was projected at $250-$300 million.

SSRM is working with authorities to restart the mine, though no timeline has been provided yet. For 2025, it expects gold production at 320,000-380,000 ounces, with output coming from Seabee, Marigold and the newly acquired CC&V mine. In 2024, SSRM had produced 275,013 ounces of gold.

The expected production growth, coupled with stronger gold prices this year, is anticipated to boost cash flow further in 2025, despite continued spending at Çöpler. 

SSRM’s peers have also seen gains in cash flow in the first quarter. Newmont achieved a record first-quarter free cash flow of $1.2 billion, marking a significant turnaround from a negative $74 million in the same period a year ago. This substantial improvement came on the back of Newmont's enhanced operational efficiency and the strength of its Tier 1 portfolio. Strong free cash flow positions Newmont to strengthen its balance sheet and pursue strategic growth investments.

Barrick Mining Corporation B reported a free cash flow of $375 million for the first quarter, a nearly 12-fold year-over-year rise. The surge reflects Barrick’s higher operating cash flows driven by an uptick in realized gold and copper prices. Barrick reduced net debt by 5% during the quarter, leveraging healthy free cash flow generation.

SSRM’s Price Performance, Valuation & Estimates

Year to date, SSRM shares have gained 79.3%, outpacing the industry's 17.8% growth. In comparison, the Basic Materials sector has risen 14.4%, while the S&P 500 has moved up 8.2%.

SSR Mining is currently trading at a forward 12-month price-to-earnings multiple of 7.02X compared with the industry average of 15.09X.

The consensus mark for 2025 earnings is pegged at $1.21 per share, indicating a year-over-year surge of 332.1%. The estimate for 2026 earnings of $2.21 indicates an increase of 82.85%.

The Zacks Consensus Estimate for SSR Mining’s earnings for 2025 has moved up 11% over the past 60 days. The same for 2026 has moved up 18.2%.

SSRM stock currently carries a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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