TSX:SSRM

Stock Analysis Report

Executive Summary

SSR Mining Inc. engages in the acquisition, exploration, development, and operation of precious metal resource properties in the Americas.

Rewards

Trading at 40.1% below its fair value

Earnings are forecast to grow 53.03% per year

Earnings grew by 33.4% over the past year

Risk Analysis

Large one-off items impacting financial results



Snowflake Analysis

Excellent balance sheet with acceptable track record.


Similar Companies

Share Price & News

How has SSR Mining's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SSRM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

4.4%

SSRM

0.8%

CA Metals and Mining

0.4%

CA Market


1 Year Return

45.3%

SSRM

26.9%

CA Metals and Mining

10.1%

CA Market

Return vs Industry: SSRM exceeded the Canadian Metals and Mining industry which returned 26.9% over the past year.

Return vs Market: SSRM exceeded the Canadian Market which returned 10.4% over the past year.


Shareholder returns

SSRMIndustryMarket
7 Day4.4%0.8%0.4%
30 Day-0.1%-0.2%2.1%
90 Day25.8%7.6%6.4%
1 Year45.3%45.3%27.8%26.9%13.6%10.1%
3 Year80.3%80.3%-0.3%-2.1%17.2%6.6%
5 Year208.3%208.3%28.8%24.6%37.5%17.3%

Price Volatility Vs. Market

How volatile is SSR Mining's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is SSR Mining undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SSRM (CA$23.24) is trading below our estimate of fair value (CA$38.79)

Significantly Below Fair Value: SSRM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SSRM is poor value based on its PE Ratio (62.7x) compared to the Metals and Mining industry average (17.3x).

PE vs Market: SSRM is poor value based on its PE Ratio (62.7x) compared to the Canadian market (15.8x).


Price to Earnings Growth Ratio

PEG Ratio: SSRM is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: SSRM is overvalued based on its PB Ratio (2x) compared to the CA Metals and Mining industry average (1.5x).


Next Steps

Future Growth

How is SSR Mining forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

56.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SSRM's forecast earnings growth (53% per year) is above the savings rate (1.4%).

Earnings vs Market: SSRM's earnings (53% per year) are forecast to grow faster than the Canadian market (10.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: SSRM's revenue (1.8% per year) is forecast to grow slower than the Canadian market (5% per year).

High Growth Revenue: SSRM's revenue (1.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SSRM's Return on Equity is forecast to be low in 3 years time (9.6%).


Next Steps

Past Performance

How has SSR Mining performed over the past 5 years?

51.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SSRM has a large one-off loss of $13.5M impacting its September 30 2019 financial results.

Growing Profit Margin: SSRM's current net profit margins (6.4%) are higher than last year (6.1%).


Past Earnings Growth Analysis

Earnings Trend: SSRM has become profitable over the past 5 years, growing earnings by 51.6% per year.

Accelerating Growth: SSRM's earnings growth over the past year (33.4%) is below its 5-year average (51.6% per year).

Earnings vs Industry: SSRM earnings growth over the past year (33.4%) exceeded the Metals and Mining industry -1.4%.


Return on Equity

High ROE: SSRM's Return on Equity (3.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is SSR Mining's financial position?


Financial Position Analysis

Short Term Liabilities: SSRM's short term assets ($850.0M) exceed its short term liabilities ($213.6M).

Long Term Liabilities: SSRM's short term assets ($850.0M) exceed its long term liabilities ($374.7M).


Debt to Equity History and Analysis

Debt Level: SSRM's debt to equity ratio (25.5%) is considered satisfactory.

Reducing Debt: SSRM's debt to equity ratio has increased from 24.1% to 25.5% over the past 5 years.

Debt Coverage: SSRM's debt is well covered by operating cash flow (29.2%).

Interest Coverage: SSRM's interest payments on its debt are well covered by EBIT (4.9x coverage).


Balance Sheet

Inventory Level: SSRM has a high level of physical assets or inventory.

Debt Coverage by Assets: SSRM's debt is covered by short term assets (assets are 3x debt).


Next Steps

Dividend

What is SSR Mining's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.9%markettop25%5.5%industryaverage1.1%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate SSRM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate SSRM's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SSRM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SSRM's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SSRM's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

What is the CEO of SSR Mining's salary, the management and board of directors tenure and is there insider trading?

3.5yrs

Average management tenure


CEO

Paul Benson (56yo)

4.4yrs

Tenure

US$2,147,135

Compensation

Mr. Paul Benson, B.Sc in Geology, B.Eng. in Mining, M.Sc in Management serves as President and Chief Executive Officer and a Member of the Board of Directors of SSR Mining Inc. since August 1, 2008. He ser ...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD2.15M) is about average for companies of similar size in the Canadian market ($USD2.17M).

Compensation vs Earnings: Paul's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.5yrs

Average Tenure

51yo

Average Age

Experienced Management: SSRM's management team is considered experienced (4.4 years average tenure).


Board Age and Tenure

4.4yrs

Average Tenure

59yo

Average Age

Experienced Board: SSRM's board of directors are considered experienced (4.4 years average tenure).


Insider Trading

Insider Buying: SSRM insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellCA$124,95002 Jan 20
Gregory Martin
EntityIndividual
Role
Chief Financial Officer
Senior VP & CFO
Shares5,000
Max PriceCA$24.99
SellCA$103,14015 Aug 19
Brian Booth
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceCA$20.63
BuyCA$24,23225 Mar 19
Elizabeth Wademan
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,350
Max PriceCA$17.95

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Nadine Block

    Senior Vice President of Human Resources

    • Tenure: 5.5yrs
  • Greg Martin (51yo)

    Senior VP & CFO

    • Tenure: 8yrs
    • Compensation: US$1.09m
  • Paul Benson (56yo)

    President

    • Tenure: 4.4yrs
    • Compensation: US$2.15m
  • W. DeCooman (49yo)

    Senior Vice President of Business Development & Strategy

    • Tenure: 1.1yrs
    • Compensation: US$697.71k
  • Matthew Langford

    Corporate Secretary

    • Kevin O'Kane

      Senior VP & COO

      • Tenure: 1.6yrs
      • Compensation: US$1.18m
    • David Wiens

      Director of Corporate Finance

      • Stacey Pavlova

        Investor Relations Manager

        • James Carver

          Chief Geologist of Marigold Mine

          • Tom Hethmon

            Vice President of Health & Safety

            • Tenure: 2.7yrs

          Board Members

          • Dick Paterson (76yo)

            Independent Director

            • Tenure: 11.4yrs
            • Compensation: US$142.84k
          • Gustavo A. Herrero (71yo)

            Independent Director

            • Tenure: 7yrs
            • Compensation: US$152.49k
          • Bev Park (57yo)

            Independent Director

            • Tenure: 5.7yrs
            • Compensation: US$131.25k
          • Steve Reid (63yo)

            Independent Director

            • Tenure: 7yrs
            • Compensation: US$138.98k
          • Brian Booth (59yo)

            Independent Director

            • Tenure: 3.7yrs
          • Simon Fish (57yo)

            Independent Director

            • Tenure: 2yrs
            • Compensation: US$131.25k
          • Paul Benson (56yo)

            President

            • Tenure: 4.4yrs
            • Compensation: US$2.15m
          • Mike Anglin (63yo)

            Independent Chairman of the Board

            • Tenure: 2.7yrs
            • Compensation: US$227.76k
          • Elizabeth Wademan (43yo)

            Independent Director

            • Tenure: 2yrs
            • Compensation: US$131.25k

          Company Information

          SSR Mining Inc.'s company bio, employee growth, exchange listings and data sources


          Key Information

          • Name: SSR Mining Inc.
          • Ticker: SSRM
          • Exchange: TSX
          • Founded: 1946
          • Industry: Gold
          • Sector: Materials
          • Market Cap: CA$2.890b
          • Shares outstanding: 122.99m
          • Website: https://www.ssrmining.com

          Number of Employees


          Location

          • SSR Mining Inc.
          • 1055 Dunsmuir Street
          • Suite 800
          • Vancouver
          • British Columbia
          • V7X 1G4
          • Canada

          Listings

          TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
          SSRMNasdaqGS (Nasdaq Global Select)YesCommon SharesUSUSDJan 1980
          SSRMTSX (The Toronto Stock Exchange)YesCommon SharesCACADJan 1980
          ZSVDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1980
          SSOSWX (SIX Swiss Exchange)YesCommon SharesCHCHFJan 1980
          0VGELSE (London Stock Exchange)YesCommon SharesGBCADJan 1980

          Biography

          SSR Mining Inc. engages in the acquisition, exploration, development, and operation of precious metal resource properties in the Americas. The company primarily explores for gold and silver deposits. Its projects include the Marigold mine located in Humboldt County, Nevada, the United States; the Seabee Gold Operation located in Saskatchewan, Canada; and the Puna Operations in Jujuy, Argentina. The company was formerly known as Silver Standard Resources Inc. and changed its name to SSR Mining Inc. in August 2017. SSR Mining Inc. was founded in 1946 and is based in Vancouver, Canada. 


          Company Analysis and Financial Data Status

          All financial data provided by Standard & Poor's Capital IQ.
          DataLast Updated (UTC time)
          Company Analysis2020/01/25 00:04
          End of Day Share Price2020/01/24 00:00
          Earnings2019/09/30
          Annual Earnings2018/12/31


          Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.