By SSR Mining has recently faced setbacks after a landslide at its Copler mine in Turkey. The incident has led to the suspension of dividend payments, share buyback plans, and a drop in production guidance. This comes as nine individuals remain missing in the aftermath of the landslide.
Share Performance
The company’s shares have taken a hit, with a 3.5% decline in morning trading to C$6.10. Overall, the stock has experienced a 57% decrease this year and a 67% decline from a year ago.
Operational Impact
Following the significant land slip at the Copler mine on Feb. 13, SSR Mining made the decision to halt operations. The company is currently evaluating the potential impact on its business. However, it has stated that there are no immediate liquidity concerns due to a healthy year-end cash balance of nearly $500 million and cash flows from other operations.
Financial Considerations
In response to the situation at the mine, SSR Mining has retracted its previously released 2024 and longer-term forecasts for Copler and Turkey. Additionally, the company has suspended quarterly dividend payments and an automatic share purchase plan. SSR is assessing estimated remediation costs and anticipates recording a liability in the first quarter. Furthermore, they expect to book an impairment of inventory and specific assets directly impacted by the incident.
Production Details
Despite the challenges faced, SSR Mining reported producing 178,677 ounces of gold in the final quarter of the previous year, including 57,126 ounces at Copler. This marked an increase from the 153,187 ounces produced a year earlier.
SSR Mining continues to navigate through these challenges and looks to address the impacts of the Copler incident on its operations moving forward.
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