SSR Mining (NASDAQ:SSRM) Shares Gap Down - Here's Why

SSR Mining stock (NASDAQ: SSRM) was down over 11% in premarket trading on Tuesday as investors reacted to the miner’s quarterly results that missed analysts’ estimates.

The Toronto-headquartered company said that it produced 248,162 gold-equivalent ounces in the fiscal first quarter that concluded in March. This represents a 16% annualised decline and fell short of the FactSet consensus for 264,000 ounces. SSR Mining attributed the weakness to planned maintenance at its Marigold and Puna mines as well as lower production at Seabee and Rodeo.

In terms of revenue, SSR Mining reported $419.5 million in Q1, which again fell shy of the analysts’ estimate of $454.7 million. Its net income tanked by 62% year over year to $36.4 million but topped the Street view. Other notable figures in the earnings report include all-in sustaining costs (AISC) of $1,352 per gold-equivalent ounce and a cash flow from operations of $185.9 million.

SSR Mining shares have now tanked by close to 30% since the start of the year. Despite Tuesday’s decline, the stock is still up by about 40% year over year.

Analysts, on average, have a ‘buy’ rating on the SSR Mining stock with a price target of $23.29. It has a range of $18.75 to $27.75.

SSR Mining performed slightly downbeat in the stock market last year with an annual decline of close to 15%. In 2022, however, it has been largely resilient and is currently exchanging hands at a premium of about 20% compared to its January 2022 price.