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SSR Mining Digs Out Massive Free Cash

Building Benjamins profile picture
Building Benjamins


  • Estimated fair value of $32, with $444 million free cash generated in FY2021 and a very strong balance sheet.
  • Large catalog of tier-1 assets, with long lives, excellent costs, and located in stable areas.
  • Slated mine extension projects, adding 14% in gold reserves in FY2021, with additional exploration scheduled.


Alfio Manciagli/iStock via Getty Images

Investment Thesis

SSR Mining Inc. (NASDAQ:SSRM) is a diversified precious metals mining company with 4 actively producing assets in the U.S., Turkey, Canada, and Argentina. The primary focus of SSRM is acquiring, exploring, and developing gold and silver

This article was written by

Building Benjamins profile picture
BuildingBenjamins.com is a free stock picking and market commentary investment newsletter. We also provide video reports on YouTube. https://www.youtube.com/@BuildingBenjaminsBenjamin Halliburton, our founder, founded Tradition Capital Management in 2000 and was named “PSN Manager of the Decade” for All-Cap in the 2000s and “PSN Manager of the Decade” for Dividend Value in the 2010s. Since starting his investment career at Merrill Lynch in 1986, Ben has been continuously involved in investing. He managed money while earning a Master of Business Administration (MBA) with a focus on finance from Duke’s Fuqua School of Business in 1990, where he was distinguished as a Fuqua Scholar. In 1994, he earned the Chartered Financial Analyst designation. He was the top-performing portfolio manager at his firm and his “Disciplined Growth Strategy” outperformed the S&P500 in the 1990’s bull market. Ben was the youngest partner at his firm and was called “the best investor I have ever met” by one of the senior managing partners.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of SSRM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (4)

Taylor Dart profile picture
I think 20x earnings is pretty ambitious, even the majors with better costs, more diversified operations, and huge development pipelines struggle to command those multiples, an. For example, Barrick trades at 20x earnings here.

14-15x earnings would be a much better base case for a mid-tier producer with low single-digit growth with less than 60% of production from Tier-1 jurisdictions.
Building Benjamins profile picture
@Taylor Dart Barrick is closer to 18 currently. However, I expect that valuation to move higher as well. Capital discipline is prevalent and companies are having a surge in profitability and free cash generation. I think the whole group has an upward revaluation to reflect this new free cash, shareholder friendly reality. These stocks sell at premium valuations when investors start to search for inflation hedges. GDX and GDXJ are still well below the 2011 highs. We have a lot of room to run as far as PE expansion. The next 10 years are going to be very different than the previous 40. The 1970s is your best reference.
gohabsgo70 profile picture
Great company and I have done great with it, especially considering how bad the sector has been. I did sell out as IMO the dividend is not high enough, too much cash on hand and I dont like Turkey too much. Made a great profit and I thank SSRM management for their successes.
badford's IRA profile picture
@gohabsgo70 I have bought and sold SSRM several times and made money. I ususally get a chance to buy at a better price but it does not seem to be happening now. It is tempting to buy if it does go to $32.00 a share but no guarantee that will happen. Cheers!
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