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SSR Mining (SSRM) Surges 7.2%: Is This an Indication of Further Gains?

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SSR Mining (SSRM - Free Report) shares ended the last trading session 7.2% higher at $17.65. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 1.9% loss over the past four weeks.

SSR Mining’s share price has appreciated on the back of the gain in gold prices. A pullback in US Treasury yields, growing inflation concerns and escalating geopolitical tensions around the Ukraine border has led to higher gold prices. Recently, SSR Mining announced that its four operating assets produced 794,456 gold equivalent ounces in 2021 that came in closer to the upper end of the company's guidance range of 720,000 to 800,000 gold equivalent ounces. All-in sustaining costs ("AISC") were approximately $982 per ounce, lower than the guidance range of $1,000 per ounce to $1,040 per ounce.

For 2022, SSR Mining expects consolidated production of 700,000-780,000 gold equivalent ounces and AISC to range between $1,120 per ounce and $1,180 per ounce. The company added that it expects production to be higher than 700,000 gold equivalent ounces in 2023 and 2024.

SSRM generated more than $400 million of free cash flow in 2021. Backed by this performance, it intends to increase its base dividend by 40% in 2022.

This precious metals mining company is expected to post quarterly earnings of $0.45 per share in its upcoming report, which represents a year-over-year change of -10%. Revenues are expected to be $387.62 million, up 4.6% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For SSR Mining, the consensus EPS estimate for the quarter has been revised 28.6% lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on SSRM going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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