CA - SSR Mining: A Quick Comparison With Other Stocks In Precious Metals Sector

2023-04-11 09:50:45 ET

Summary

• SSR Mining Inc. looks to have performed reasonably well over a five-year period, however, performance is about comparison, and by looking further afield we may be able to do better.
• If we widen the search we can see that some of the Royalty/Streamer stocks in the precious metals sector such as Wheaton Precious Metals Corp, is up 133%.
• The end of year report for SSR Mining reads pretty well, and the standout for me was that they continue to buy back stock, which I think is a good thing.
• Further comparative analysis is required before we can make a call on any of the stocks in our portfolio, including this one, and now is a good time re-evaluate your portfolio, too.

Introduction

SSR Mining Inc. ( SSRM ) has been one of our core holdings for a number of years. On the 4th of July, 2017, we posted an article entitled:

“ Silver Standard Is Now In The Bargain Basement: Buy .”

At the time, this stock could be acquired for $9.24. Fast forward to today, and SSRM can be acquired for $15.56, representing an increase in value of 56%.

SSR Mining Inc Two-Year Chart

A quick look at the chart for SSR Mining over the last two years reflects the volatility of the gold and silver market along with the ups and downs of the company itself. This stock has traded as low as $13.00 and as high as $24 over the last two years. Similarly, gold has traded as high as $2075/Oz and as low as $1625/Oz, and silver as high as $29/Oz and as low as $18/Oz, a white-knuckle ride indeed.

The chart below is a comparison of SSR Mining Inc with some of its competitors for our hard-earned cash. Our stock looks to have performed reasonably well over a five-year period. However, performance is about comparison, and by looking further afield we may be able to do better.

Another one of our favorites is Agnico Eagle Mines Limited ( AEM ), which is up a disappointing 26% over that period. So, all in all, SSR Mining Inc ( SSRM ) doesn’t look too shabby.

If we widen the search, we can see some of the Royalty/Streamer stocks in the precious metals sector such as Wheaton Precious Metals Corp (WPM), up 133% over that period, and Franco-Nevada Corporation ( FNV ) up 115% over that period. In hindsight, those two streamers were the better choice. This raises the question of whether to invest in mining stocks or with the Royalty/Streamer stocks in the precious metals sector. We currently have a foot in both camps, but our allocation of investment funds is constantly under review and could change significantly over the next few months.

Financials

The end of year report for SSR Mining Inc. reads pretty well. The standout for me was that they continue to buy back stock, which I think is a good thing, and they pay a dividend, which bodes well for the future. The recent jump in its stock price suggests that SSR Mining Inc. is overbought at the moment, with some profit-taking capping prices followed by some retracement.

SSR Mining Inc has a market capitalization of $3.22Bln, a 52-week trading range of $12.78 - $24.58, a P/E ratio of 17.63 with an EPS standing at 0.88 and an average trading volume of 1,621,440, so the liquidity is good for those who wish to trade in and out quickly. This company is quoted on the following exchanges TSX: SSRM | NASDAQ: SSRM | ASX: SSR.

Conclusion

I intend to hold SSR Mining Inc. for now, as the stock price should improve dramatically as both gold and silver prices continue to trade at much higher levels.

Further comparative analysis is required before we can make a call on any of the stocks in our portfolio, including this one, and now is a good time re-evaluate your portfolio too.

Gold and silver mining stocks are undervalued in my view and will do well going forward.

The streaming companies in this sector also deserve some of your attention, so do look into them as you may just find a bargain there too.

For the record, I have been long physical gold and silver for a number of years and also own a portfolio of stocks in the precious metals sector including Sandstorm Gold Ltd ( SAND ), Wheaton Precious Metals Corp , Agnico Eagle Mines Limited Eagle Mines and SSR Mining Inc ( SSRM ).

Your comments are very much appreciated so please fire them in, and I will do my best to address each and every one of them.

Go gently as these are treacherous seas that we sail.

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