Get the Latest Investment Ideas Delivered Straight to Your Inbox. Subscribe


Precious Metals Miner Reports 'Strong' Q3/18 Production Results for a 'Top Pick'
Research Report

Share on Stocktwits


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.


1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article, until one week after the publication of the interview or article.

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 and securities mentioned in this report that are covered by such research analyst and (ii) no part of the research analyst's compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressed by such research analyst in this report.

Analysts employed outside the U.S. are not registered as research analysts with FINRA. These analysts may not be associated persons of CIBC World Markets Corp. and therefore may not be subject to FINRA Rule 2241 restrictions on communications with a subject company, public appearances and trading securities held by a research analyst account.

Potential Conflicts of Interest:
Equity research analysts employed by CIBC World Markets Corp./Inc. are compensated from revenues generated by various CIBC World Markets Corp./Inc. businesses, including the CIBC World Markets Investment Banking Department. Research analysts do not receive compensation based upon revenues from specific investment banking transactions. CIBC World Markets Corp./Inc. generally prohibits any research analyst and any member of his or her household from executing trades in the securities of a company that such research analyst covers. Additionally, CIBC World Markets Corp./Inc. generally prohibits any research analyst from serving as an officer, director or advisory board member of a company that such analyst covers.

In addition to 1% ownership positions in covered companies that are required to be specifically disclosed in this report, CIBC World Markets Corp./Inc. may have a long position of less than 1% or a short position or deal as principal in the securities discussed herein, related securities or in options, futures or other derivative instruments based thereon.

Recipients of this report are advised that any or all of the foregoing arrangements, as well as more specific disclosures set forth below, may at times give rise to potential conflicts of interest.

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.

Want to read more about Gold and Silver investment ideas?
Get Our Streetwise Reports Newsletter Free and be the first to know!

A valid email address is required to subscribe