SSR Mining: A Spot of Gold at Fifty?

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Now, one observes with a certain satisfaction that the price of gold has been behaving rather exuberantly of late, soaring to heights that would make a lesser metal positively green with envy. Indeed, it’s reached a point where one almost expects it to start demanding a separate drawing room. But the truly jolly bit of the story isn’t just the gold itself, but what’s been happening with companies like SSR Mining (SSRM 1.45%). You see, these chaps are rather clever at turning a rise in the price of the yellow metal into something approaching a windfall, a delightful bit of leverage, if you will.

The thing is, their costs are, shall we say, fixed – a most sensible arrangement, one thinks – so when gold takes a leap upwards, a goodly portion of that increase falls directly into their coffers. Over the past year, SSR Mining’s shares have practically done a somersault, rising by a most agreeable 190%, while gold itself has managed a respectable, if slightly less flamboyant, 72%. A most satisfactory state of affairs, wouldn’t you agree?

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Even if gold were to take a momentary pause for breath – a slight dip, perhaps – one shouldn’t dismiss the possibility of a further rally. And if that were to occur, SSR Mining could find itself propelled towards the fifty-dollar mark per share – more than double its current price, a prospect that brightens the day considerably.

SSR Mining and the Golden Opportunity

Now, SSR Mining may not be quite as colossal as some of the bigger players, like Barrick Gold – those chaps are positively mountainous – but it’s no mere prospector either. They actually own mines, profitable ones at that, scattered across the globe – the U.S., Canada, Turkey, and Argentina, to be precise. A most respectable portfolio, one must say.

They dig up gold, naturally, but they also have a finger in a few other pies – silver, copper, lead, and zinc. With gold leaping from around $3,000 an ounce last March to over $5,000 in January, their sales and profits have experienced a most agreeable surge. Allow me to present the numbers, lest one suspect a touch of exaggeration:

Q3 2025 Q3 2024 % Difference
Revenue $385.8 million $257.4 million 49.9%
Net income $57.1 million $6.25 million 813.6%
Earnings per share (EPS) $0.32 $0.05 540%

Looking ahead to 2026, with gold continuing to flirt with the $5,000 mark, one anticipates even more robust revenue and earnings. Annual sales are expected to climb from $1.6 billion to $2.4 billion – a rise of over 56% – and full-year earnings are projected to reach around $1.74 per share in 2025, leaping to a most agreeable $4.07 per share in 2026.

Why Fifty Dollars is Perfectly Achievable

Now, one hears whispers of a potential pullback in gold prices. Perfectly possible, of course. But considering the rather complicated macroeconomic landscape – and the rather unpredictable nature of certain individuals in positions of power – it’s not entirely certain that a reversal is just around the corner.

For instance, consider the recent rumblings regarding President Trump’s potential nomination of Kevin Warsh to the Federal Reserve. Even though Mr. Warsh has historically leaned towards a more cautious monetary policy, it remains to be seen whether he’ll face pressure to lower rates more quickly. A premature rate cut could, shall we say, give the “debasement trade” a bit of a boost.

Furthermore, the continued purchasing of gold by central banks suggests that high prices are likely here to stay. And if that proves to be the case, investors may be inclined to reassess their valuation of SSR Mining.

Currently, the stock trades at a modest 6.2 times forward earnings. If it were to be rerated to a forward P/E in the low teens – a level it has traded at recently – shares would be trading at around $50 per share. Therefore, if one is seeking to capitalize on this trend, SSR Mining presents a most attractive proposition. A solid company, a rising tide, and a price that, with a bit of luck, is perfectly within reach.

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2026-02-02 21:23