(Adds analyst comment
SSR Mining (SSRM.TO) on Friday agreed to acquire the Cripple Creek & Victor Gold Mine in Colorado from Newmont (NGT.TO) in an all-cash deal for a $100-million upfront payment and up to $175 million in additional milestone-based payments.
The two properties will add about 170,000 ounces in annual gold production to SSR . Combined with the Marigold mine in Nevada, SSR's total U.S. gold production is expected to average between 300,000 - 400,000 ounces annually.
National Bank of Canada maintained sector-perform ratings on the two companies following the news. The bank also maintained their price targets on the pair. SSR has a $9.00 price target while Newmont was kept at $72.00.
National Bank said its sector-perform rating for SSR Mining is based on the uncertainty surrounding the full Copler remediation and legal costs, as well as the unknown timing of a potential restart. Production at the Turkish mine was suspended in February following the fatal collapse of its heap-leach pad.
The bank said its rating for Newmont is based on the lowered free cash flow outlook of the company over the medium term, the higher than expected cost structure and the uncertainty around the integration of the Newcrest assets.
SSR shares were last seen up $0.18 to $8.72 on the Toronto Stock Exchange, while Newmont rose $1.01 to $58.54.
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