Shares decline as miner faces challenges at Turkish mine
- SSR Mining shares fall after dividend suspended and guidance dropped
- Shares down 3.5% in morning trading
- Stock has dropped 57% this year and 67% from a year ago
- Operations at Copler mine suspended after major land slip
- Company assessing potential impacts to its business
- Retracted 2024 and longer-term forecasts for Copler and Turkey
- Suspended quarterly dividend payments and share purchase plan
- Evaluating estimated remediation costs and expects to record a liability
- Expects to book an impairment of inventory and specific assets
- Produced 178,677 ounces of gold in final quarter of last year
SSR Mining’s shares extended their decline Wednesday after the miner suspended dividend payments and its share buyback plan, and dropped production guidance following a landslide at a mine in Turkey where nine people are still missing. In morning trading, the shares were 3.5% lower at C$6.10. The stock has now dropped 57% so far this year and is down 67% from a year ago. SSR suspended operations at its Copler mine on Feb. 13 after a major land slip. It said late Wednesday it is assessing the potential impacts to its business, though it doesn’t anticipate near-term liquidity concerns given a year-end cash balance of almost $500 million and cash flows from other operations. Due to the situation at the mine, the company said it retracted recently released 2024 and longer-term forecasts for Copler and Turkey and suspended quarterly dividend payments and an automatic share purchase plan. SSR said it is in the process of evaluating estimated remediation costs and expects to record a liability during the first quarter. It also expects to book an impairment of inventory and specific assets directly impacted by the Copler incident and will evaluate mine’s long-lived asset group for additional impairment during this quarter. The company produced 178,677 ounces of gold in the final quarter of last year, including 57,126 ounces at Copler, up from 153,187 ounces a year earlier.
Factuality Level: 8
Factuality Justification: The article provides factual information about SSR Mining’s shares decline, suspension of dividend payments and share buyback plan, drop in production guidance due to a landslide at a mine in Turkey, and the company’s response to the situation. The article does not contain irrelevant information, misleading details, sensationalism, redundancy, or opinion masquerading as fact. It presents the information objectively and accurately.
Noise Level: 3
Noise Justification: The article provides relevant information about SSR Mining’s recent developments, including the suspension of dividend payments and share buyback plan due to a landslide at a mine in Turkey. It includes details about the impact on the company’s operations, financial situation, and production guidance. The article stays on topic and supports its claims with specific examples and data. However, it could benefit from more analysis on the long-term implications of these events and how SSR Mining plans to address the challenges.
Financial Relevance: Yes
Financial Markets Impacted: SSR Mining
Presence Of Extreme Event: Yes
Nature Of Extreme Event: Natural Disaster
Impact Rating Of The Extreme Event: Moderate
Rating Justification: The article mentions a landslide at SSR Mining’s mine in Turkey, which has resulted in the suspension of operations. This event is considered a natural disaster and has led to a decline in SSR Mining’s shares. The impact rating is moderate as it affects the company’s production and financial performance, but the long-term consequences are manageable.
Public Companies: SSR Mining (SSRM)
Key People: Robb M. Stewart (Author)
Reported publicly:
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