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SSR Mining (SSRM) Inks Deal to Sell San Luis Project for $43M
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SSR Mining Inc. (SSRM - Free Report) announced that it signed a deal with Highlander Silver Corp. to sell its San Luis Project for up to $42.5 million. This move is in sync with the company’s goal of portfolio rationalization, which has resulted in more than $300 million in aggregate consideration for non-core assets since the beginning of 2021.
Located in Central Peru’s Ancash Department, San Luis is a greenfield gold and silver development project. Under the terms of the agreement, which will be issued prior to the closure of the deal, SSRM will maintain a 4% net smelter returns ("NSR") royalty on the Project.
Highlander Silver Corp. will pay $5 million in cash upfront upon the completion of the transaction. It will pay up to $37.5 million in cash contingent payments. The contingent payments are anticipated to be made in five installments, starting with the commencement of the project's initial drilling program and concluding with the second anniversary of commercial production from the Project.
The transaction is expected to close in the first quarter of 2024, subject to the completion of required regulatory approvals and certain customary closing conditions.
Based on street consensus estimates, the sale of the project is expected to be accretive to SSR Mining on a NAV per share basis.
In the third quarter of 2023, SSR Mining reported adjusted earnings of 26 cents, missing the Zacks Consensus Estimate of 27 cents. It reported an adjusted loss of 7 cents in the year-ago quarter.
The company came out with quarterly revenues of $385 million, up from $167 million in the third quarter of 2022. However, the top line missed the Zacks Consensus Estimate of $415 million.
Price Performance
SSR Mining’s shares have lost 24% in the past year against the industry’s growth of 7%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #4 (Sell).
The Zacks Consensus Estimate for Axalta Coating’s 2023 earnings is pegged at 44 cents per share. The consensus estimate for 2023 earnings has moved 23% north in the past 60 days. Its shares have gained 16% in a year.
Universal Stainless & Alloy Products has an average trailing four-quarter earnings surprise of 44.4%. The Zacks Consensus Estimate for USAP’s 2023 earnings is pegged at 27 cents per share. Earnings estimates have been unchanged in the past 60 days. USAP’s shares gained 136.2% in the last year.
The consensus estimate for ANDE's current-year earnings has been revised 3.3% upward over the past 60 days. Andersons beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 64.4%, on average. ANDE shares have rallied 35.5% in a year.
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SSR Mining (SSRM) Inks Deal to Sell San Luis Project for $43M
SSR Mining Inc. (SSRM - Free Report) announced that it signed a deal with Highlander Silver Corp. to sell its San Luis Project for up to $42.5 million. This move is in sync with the company’s goal of portfolio rationalization, which has resulted in more than $300 million in aggregate consideration for non-core assets since the beginning of 2021.
Located in Central Peru’s Ancash Department, San Luis is a greenfield gold and silver development project. Under the terms of the agreement, which will be issued prior to the closure of the deal, SSRM will maintain a 4% net smelter returns ("NSR") royalty on the Project.
Highlander Silver Corp. will pay $5 million in cash upfront upon the completion of the transaction. It will pay up to $37.5 million in cash contingent payments. The contingent payments are anticipated to be made in five installments, starting with the commencement of the project's initial drilling program and concluding with the second anniversary of commercial production from the Project.
The transaction is expected to close in the first quarter of 2024, subject to the completion of required regulatory approvals and certain customary closing conditions.
Based on street consensus estimates, the sale of the project is expected to be accretive to SSR Mining on a NAV per share basis.
In the third quarter of 2023, SSR Mining reported adjusted earnings of 26 cents, missing the Zacks Consensus Estimate of 27 cents. It reported an adjusted loss of 7 cents in the year-ago quarter.
The company came out with quarterly revenues of $385 million, up from $167 million in the third quarter of 2022. However, the top line missed the Zacks Consensus Estimate of $415 million.
Price Performance
SSR Mining’s shares have lost 24% in the past year against the industry’s growth of 7%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the basic materials space are Axalta Coating Systems Ltd. (AXTA - Free Report) , Universal Stainless & Alloy Products, Inc. (USAP - Free Report) and The Andersons Inc. (ANDE - Free Report) . AXTA sports a Zacks Rank #1 (Strong Buy), and USAP and ANDE each carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Axalta Coating’s 2023 earnings is pegged at 44 cents per share. The consensus estimate for 2023 earnings has moved 23% north in the past 60 days. Its shares have gained 16% in a year.
Universal Stainless & Alloy Products has an average trailing four-quarter earnings surprise of 44.4%. The Zacks Consensus Estimate for USAP’s 2023 earnings is pegged at 27 cents per share. Earnings estimates have been unchanged in the past 60 days. USAP’s shares gained 136.2% in the last year.
The consensus estimate for ANDE's current-year earnings has been revised 3.3% upward over the past 60 days. Andersons beat the Zacks Consensus Estimate in each of the last four quarters. It delivered a trailing four-quarter earnings surprise of 64.4%, on average. ANDE shares have rallied 35.5% in a year.