A CIBC report reviewed the Q3/18 numbers for this
gold and silver producer.
In an Oct. 12, research note, analyst Cosmos Chiu described SSR Mining
Inc.'s (SSRM:NASDAQ) Q3/18 results as "strong," due to
"solid" operating performance at Marigold and Seabee and initial
production at Chinchillas. "Overall, the company delivered another solid
quarter of operational results and remains one of our Top Picks in the
intermediate gold producer space," he wrote.
Chiu provided the Q3/18 production numbers, both collectively and
individually by mine, for SSR Mining's wholly owned assets. Total gold
production was 86,000 ounces (86 Koz), higher than CIBC's estimate of 75 Koz.
Total silver production was 0.7 million ounces (0.7 Moz), under CIBC's
forecast of 0.8 Moz. SSR's management team expects to meet or beat full-year
2018 production guidance, he noted.
Q3/18 gold production was highest at Marigold, where it increased 18%
quarter over quarter (QOQ) and amounted to 58,459 oz. This was helped in part
by more tons of ore having been placed on the leach pads during the prior
quarter, Chiu noted. "With the addition of four haul trucks (placed in
service during Q3/18), short haul distances and improved equipment
availabilities, we believe Marigold is on track to achieve the high end of
2018 production guidance of 190–210 Koz of gold."
An 18% QOQ rise in Q3/18 gold production was also the case at Seabee,
where it totaled 27,831 oz. This resulted from a higher average mill feed
grade and greater mill throughput. "We believe Seabee is on track to
exceed the high end of 2018 production guidance of 85–92 Koz," Chiu
wrote.
The analyst also reported production numbers from the assets of SSR
Mining's joint venture company, Puna Operations. Q3/18 production from those
was as anticipated, with 0.7 Moz of silver and 3.2 million pounds (3.2 Mlb)
of zinc produced.
CIBC has an Outperformer rating and a $14 per share target price on SSR
Mining, whose stock is currently trading at around $10.88 per share.
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Disclosures from CIBC, SSR Mining Inc., October 12, 2018
Analyst Certification:
Each CIBC World Markets Corp./Inc. research analyst named on the front page
of this research report, or at the beginning of any subsection hereof, hereby
certifies that (i) the recommendations and opinions expressed herein
accurately reflect such research analyst's personal views about the company
and securities that are the subject of this report and all other companies
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be, directly or indirectly, related to the specific recommendations or views
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Equity research analysts employed by CIBC World Markets Corp./Inc. are
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Research analysts do not receive compensation based upon revenues from
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In addition to 1% ownership positions in covered companies that are
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Important Disclosure Footnotes for SSR Mining Inc. (SSRM)
· CIBC World Markets Inc. expects to receive or intends to seek
compensation for investment banking services from SSR Mining Inc. in the next
3 months.
