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SSR Mining (NASDAQ:SSRM) -7.3% in Tuesday’s trading, poised to close at its lowest level in more than eight years, after RBC Capital downgraded the stock to Underperform from Sector Perform with a $3 price target, slashed from $6, as the bank now assumes zero value and production for SSR’s Copler mine and Hod Maden project in Turkey.
Updates have not improved since a landslide shut down the Copler mine a week ago, and operations are now shut indefinitely after Turkish authorities revoked the mine’s environmental permit, and SSR Mining (SSRM) confirmed several Copler employees have been charged in connection to the incident.
While an extended shutdown was expected, RBC analysts Michael Siperco and Wayne Lam say the updates reduce the likelihood of SSR Mining (SSRM) realizing value from the Copler mine or obtaining construction permits for Hod Maden in Turkey.
RBC notes SSR Mining’s (SSRM) balance sheet is stable, with nearly $1B in total liquidity, but the bank assumes a 50% dividend cut to preserve capital, and can no longer model $150M of Hod Maden earn-in payments through 2027.