SSR Mining Inc (NASDAQ: SSRM) revealed the results of a technical report at its recently acquired Cripple Creek & Victor Gold Mine this week. It determined that the operation would have 12-years of production life remaining and an after-tax net present value of US$824 million with a 5 per cent discount rate.
SSR bought the asset from Newmont Corporation (TSE: NGT) (NYSE: NEM) (FRA: NMM) on Feb. 28 for a total consideration of up to US$275 million. Since that time, the site has already yielded US$115 million in after-tax cash flow generated as a result of the current pricing environment. It has produced over 85,000 ounces thus far in 2025.
Newmont ran the site for 10 years after acquiring it from AngloGold Ashanti PLC (NYSE: AU) (FRA: HT3) in 2015. AngloGold produced approximately 250,000 ounces per annum for two decades before handing it off to Newmont. It has been and still is the only major operational gold producing asset in the state.
“Including the total potential transaction outlay of US$275 million, the results from this initial Technical Report Summary demonstrate a transaction internal rate of return in excess of 100 per cent,” said Executive Chairman Rod Antal, “a truly exceptional outcome with meaningful growth potential for the operation still ahead.”
Despite being in production for decades, the site is still estimated to hold almost five million measured and indicated gold ounces. Between 2026 to 2028, it is expected to churn out 141,000 ounces annually on average. It is notable that the 12 years of mining and stacking operations will be proceeded by 14 years of residual leaching activities.
The newly released technical analysis has also factored in a proposed expansion to the mine’s open pit areas and heap leach pads. SSR aims to increase the project’s ore processing capacity and resource recovery capabilities. This goal supports the company’s broader aim of meeting its production guidance of 410,000 to 480,000 gold ounces across its portfolio this year.
Despite the ongoing troubles in Turkey, Cripple Creek promises to be a steady source of revenue for SSR as gold prices remain elevated.
SSR is currently working on getting the Turkish Çöpler gold mine back into operation after the catastrophic heap leach pad failure and landslide that claimed nine lives in early 2024. Total remediation, care and maintenance costs have exceeded US$550 million.
Thankfully for SSR, cash flow increased immensely in Q3. Year-over-year, revenue rose by 50 per cent to US$385.8 million during the three month period. Furthermore, year-to-date revenue for the nine month period ended Sept. 30 shot up by 64.7 per cent to US$1.1 billion.
Read more: NevGold edges closer to gold-antimony resource with latest Limousine Butte results
Follow Rowan Dunne on LinkedIn
rowan@mugglehead.com
