SM
SSR MINING INC. (SSRM)·Q3 2025 Earnings Summary
Executive Summary
- Q3 2025 delivered solid operations but missed Wall Street on revenue, EPS, and EBITDA: revenue $385.84M vs $400.08M consensus (−3.5%), diluted EPS $0.32 vs $0.34 consensus, EBITDA $123.95M vs $159.06M consensus; management highlighted higher royalty costs on elevated gold prices and higher share-based compensation as cost headwinds, plus working capital impacts on FCF . Revenue/EPS/EBITDA consensus figures marked with an asterisk; Values retrieved from S&P Global.*
- Year-over-year metrics improved: revenue +50% to $385.84M, diluted EPS rose to $0.31 from $0.05, and GEO sold rose to 104,549 from 96,143 .
- Guidance maintained: Company expects FY production in the lower half of the 410–480 koz GEO range; consolidated costs trending to the upper end of guidance due to royalties and SBC .
- Near-term catalysts: Hod Maden updated LOM plan and construction decision “in the coming months” , and CC&V TRS published Nov 11 showing a 12-year mine life and after-tax NPV5% of $824M at consensus prices .
What Went Well and What Went Wrong
What Went Well
- CC&V continued to generate strong cash and remains a core asset; management expects the initial technical report to showcase a 10+ year mine life, with nearly $115M in mine-site after-tax FCF since acquisition year-to-date .
- Puna delivered solid performance with 2.4 Moz silver in Q3 and AISC of $13.54/oz; mine-life extension work (Chinchillas laybacks, Cordaderos studies) is progressing .
- Balance sheet remained strong: cash $409.3M; total liquidity $909.3M (undrawn revolver plus accordion) .
What Went Wrong
- Consolidated AISC rose to $2,359/GE oz (or $2,114 excluding Çöpler), trending toward the high end of annual cost guidance due to higher royalties and share-based compensation .
- Seabee underperformed: 9,118 oz produced, AISC $3,003/oz; lower-than-expected grades and prioritized underground development constrained output .
- Free cash flow was −$2.4M, impacted by inventory movements at Marigold and CC&V and prepayments at Hod Maden (FCF before WC adjustments was $72.5M) .
Financial Results
Consolidated results by quarter
Q3 vs Consensus (Wall Street – S&P Global)
Values retrieved from S&P Global.*
Segment operating metrics
Balance sheet KPIs
Margins (S&P Global)
Values retrieved from S&P Global.*
Guidance Changes
Earnings Call Themes & Trends
Management Commentary
- “Our third quarter operating results were generally aligned to our internal plans, and we continue to expect that a solid fourth quarter will bring us within consolidated 2025 production guidance.” – Rod Antal, Executive Chairman .
- “Higher than forecasted royalty costs and share-based compensation… is pushing our AISC towards the top end of our full-year cost guidance range.” – CFO Michael Sparks .
- “Hod Maden remains one of the most compelling… undeveloped copper-gold projects in the sector and has the potential to generate exceptional free cash flow once in production.” – Rod Antal .
- “CC&V had a solid quarter… [and] has now generated nearly $115 million in asset-level free cash flow since acquisition.” – Bill MacNevin, EVP Ops & Sustainability .
Q&A Highlights
- Q4 outlook: Strength largely expected from Marigold; CC&V steady; Marigold addressing ore fines via blending and pad placement to finish strongly in Q4 .
- Seabee grades: Lower-than-expected grade mix from Gap Hanging Wall; development prioritization continues into Q4 with expectations for incremental improvement .
- Çöpler: Regulatory approvals tied to technical closures and facility approvals; public support has risen, but approvals remain the driver for restart timing .
- Hod Maden spend/decision: Year-end spend tracking mid-range of guidance; comprehensive updated technical report will underpin construction decision; not dependent on Çöpler restart .
- Strategy/M&A: Maintain disciplined, strategy-aligned approach; focus on building platforms in core jurisdictions (US, Canada, Argentina, Türkiye) .
Estimates Context
- Q3 printed a miss versus consensus: revenue $385.84M vs $400.08M*, diluted EPS $0.31 vs $0.344*, and EBITDA $123.95M vs $159.06M*; cost headwinds from royalties (due to higher gold prices) and share-based compensation pressured AISC; working capital movements reduced reported FCF despite strong FCF before WC . Values retrieved from S&P Global.*
- Forward expectations: Consensus for Q4 2025 EPS $0.487* and revenue $494.71M*; Q1 2026 EPS $0.615* and revenue $470.77M*. Given management’s “lower half” production and “upper end” costs comment, estimates may need to reflect elevated AISC in Q4, particularly with CC&V sustaining capital weighting and Seabee’s continued development focus . Values retrieved from S&P Global.*
Key Takeaways for Investors
- Print miss on revenue/EPS/EBITDA driven by cost inflation (royalties, SBC) and working capital; near-term trading bias cautious until Q4 delivery confirms the lower-half production trajectory but with elevated AISC .
- CC&V’s TRS underpins medium-term cash flow with a 12-year mine life and strong NPV leverage to gold prices; this should support multiple expansion if execution stays on track .
- Hod Maden decision is a pivotal upside catalyst; updated LOM plan and construction decision expected “in the coming months” .
- Çöpler restart remains binary; growing public support helps narrative, but regulatory approvals drive timing—portfolio resilience rests on US/Canada/Argentina assets until restart .
- Seabee remains a drag near-term; watch for improvement from development progress and grade access in Q4/Q1 .
- Puna offers stable silver output and lower AISC; mine-life extension path (Chinchillas/Cordaderos) provides visibility to 2026–2028 .
- Liquidity is robust ($909M), giving flexibility to fund Hod Maden and organic extensions without equity needs; supports defensive posture in volatile commodity tape .