Shares of SSR Mining Inc (NASDAQ: SSRM) plummeted by 5.05% on Wednesday, November 7, 2024, following the company's disappointing third-quarter earnings results, which were significantly impacted by the ongoing challenges related to the Copler mine incident and subsequent remediation efforts.
The Copler mine in Turkey suffered a major setback earlier this year when a heap leach facility failure led to the displacement of a significant amount of material. SSR Mining has been working diligently on the recovery and remediation efforts, which are estimated to cost between $250 million and $300 million and take 24 to 36 months to complete.
In the third quarter, SSR Mining reported production of 97,000 gold equivalent ounces at an alarmingly high all-in sustaining cost (AISC) of $2,065 per ounce. This high cost figure includes $252 per ounce for care and maintenance expenses at the Copler and Seabee mines. The company's net income attributable to shareholders was a meager $0.05 per share, while adjusted net income came in at $0.03 per share.
While the company has made progress in the remediation efforts at Copler, obtaining necessary regulatory approvals for the permanent storage facility and eventual restart of operations remains a challenge. SSR Mining is actively engaging with various government levels to secure these approvals and fulfill its commitments following the incident.
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