SSR Mining Shares Retreat from 15-Year High as Gold Prices Cool

Shares of SSR Mining Inc. (NASDAQ: SSRM) fell sharply Friday, declining as much as 9.5% in morning trading. The drop comes just a day after the gold and silver producer's stock touched a 15-year peak of $28 per share, highlighting the volatile ride for commodity-linked equities.

The immediate catalyst appears to be a cooldown in the gold market. After a historic rally that saw prices breach $5,600 per ounce this week, bullion retreated approximately 6% Friday morning. As a primary gold miner with operations in the U.S., Türkiye, Canada, and Argentina, SSR Mining's fortunes are intrinsically tied to the metal's price swings.

However, the sell-off may present a buying opportunity, according to some Wall Street analysts. "The fundamental thesis for SSR remains intact," said Levi Spry, an analyst at UBS, who reiterated a 'Buy' rating and raised his price target to $38.50 early Friday. "This is a healthy correction in the context of a much longer-term bullish cycle for both gold and the company's operational profile."

Valuation metrics support a cautiously optimistic outlook. Even after more than tripling over the past year, SSR stock trades at a reasonable 26 times earnings. More compelling is its forward price/earnings-to-growth (PEG) ratio of just 0.22, based on consensus estimates that forecast annual profit growth exceeding 100% over the next five years.

The cash flow picture is nuanced. While the stock commands a multiple of about 14 times trailing cash flow, it trades at a more modest 5.6 times next year's projected cash flow—a sign that analysts expect significant operational cash generation ahead.

Investor Perspectives:

• Michael Thorne, Portfolio Manager at Ridgecrest Capital: "This is classic profit-taking in a hot sector. The long-term drivers for gold—geopolitical uncertainty, central bank buying, inflationary pressures—haven't changed. SSR's low-cost production and growth pipeline make it a core holding for us on any weakness."
• David Chen, Independent Retail Investor: "The volatility is nerve-wracking, but the numbers still look good. I'm using today's dip to average down my cost basis. The PEG ratio is too cheap to ignore if their growth projections are even half-right."
• Sarah J. Miller, Editor of 'The Skeptical Investor' Newsletter: "This is a stark reminder that these stocks are leveraged bets on gold, not the metal itself. The 15-year high was a clear speculative peak. UBS raising its target after the crash feels like an attempt to placate bag-holders. The cash flow valuation is already stretched, and those hyper-aggressive growth estimates are a house of cards built on unsustainable gold prices."
• Arjun Patel, Mining Sector Analyst at ClearView Research: "Operational execution is key now. The market is punishing any perceived weakness. SSR needs to demonstrate that its Çöpler mine recovery and other projects are on track to meet those lofty cash flow forecasts, regardless of daily gold price moves."

Disclosure: The Motley Fool, the original publisher of this analysis, notes that its Stock Advisor service did not include SSR Mining in its recent list of top 10 stock picks. The service highlights other growth opportunities, citing historical examples like Netflix and Nvidia that generated massive returns for members.