Hi there,
The entire industry is suffering right now and appears to be undervalued. SSRM is no different. The company generates the majority of revenue from gold and despite the uncertainty this year, is on track to meet annual production guidance for ~490oz of gold. Of note the company is merging with Alacer gold and production is expected to produce between 680-760,000 oz of gold once the merger is complete. What is a little disappointed is that all in sustaining costs (post merger) is at around $1,000 per oz.
This is pretty high and although it is generating considerable cash at these gold prices, it is more susceptible to a declining gold price as a result. I do like that it has a nice and diverse portfolio of assets and it recently declared a dividend which equates to about $60/oz and a 1.1% yield. It has a little bit of debt (~500M) but nothing over bearing and has many organic and low-cost growth opportunities.
Overall - a solid producer that is generating considerable cash flow. I'd like to see next year's guidance in terms of AISCs as this year's costs are a little high. Unfortunately, the company does not provide a long-term cost outlook (at least from what i could find).
Mat