Toronto-listed SSR Mining in share buy back

By Steven Swindells / June 16, 2022 / www.mining-journal.com / Article Link

SSR Mining's share purchase under a normal course issuer bid will supplement the existing base dividend and is part of its capital allocation framework for returning excess cash to shareholders, the firm said.

Analysts said the share buy back could be funded from strong cash balances.

"SSR ended the first quarter with a cash balance of US$999 million excluding restricted cash and we currently model free cash flow, before dividends, generation of US$230 million for second quarter 2022 to fourth quarter 2022," said mining analysts at National Bank of Canada. "We believe SSR is in a strong financial position and able to support share buybacks."

SSR Mining may purchase common shares over the next twelve-month period beginning June 20, 2022 and ending June 19, 2023.

"Building on last year's peer leading capital returns which exceeded US$190 million, our strong free cash flow outlook for 2022 and balance sheet will enable us to continue our robust capital returns program this year," said SSR Mining chief executive Rod Antal.

The firm's four operating assets in the US, Turkey, Canada and Argentina produced approximately 794,000 gold-equivalent ounces last year.

SSR's 2022 guidance is for 700,000-780,000oz AuEq at AISC of $1,120-$1,180 per AuEq oz.

Shares in SSR Mining were down 1.1% at C$23.53, giving the firm a market capitalisation of C$5 billion.

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