American Tungsten Corp. (TSXV: TUNG, OTCQB: DEMRF)
Building America’s Defense Critical Metals Supply
Weighed down by declines in gold and silver prices, SSR Mining (SSRM), the third-largest gold producer in the United States and owner of the largest silver mine in Argentina, saw its shares drop significantly on Wednesday. As of 1:30 p.m. Eastern Time, the company’s stock price had fallen by more than 6%. As a mining company primarily focused on gold but also producing substantial amounts of silver, SSR Mining’s performance is closely tied to precious metal prices, and its stock price is highly sensitive to fluctuations in gold and silver, which directly led to today’s stock performance.
In SSR Mining’s 2025 revenue composition, gold accounted for approximately 70% and silver 24%. The company’s Puna operation in Argentina is the largest silver mine in the country, contributing 28% of the company’s total revenue in 2025. Recently, fluctuations in silver prices have had an even greater impact on the company’s stock price than gold. Over the past year, silver’s price performance has significantly outpaced gold, and even after the recent pullback, its annual gains remain ahead. Many investors hoping to capitalize on silver’s upward trend have turned their attention to SSR Mining due to its significant silver business, which explains the growing correlation between the company’s stock price and silver prices. Consequently, this recent correction in silver prices has naturally had a notable impact on SSR Mining’s stock.
Over the past 12 months, benefiting from a substantial rally in precious metals markets just before the escalation of conflicts in the Middle East, SSR Mining’s stock price has accumulated gains of over 150%. Faced with the recent share price decline, some investors may be inclined to take profits. However, a significant recent asset disposal by the company adds an interesting dimension to its medium-term outlook. In early March, SSR Mining announced the sale of its 80% interest in the Copler mine in Turkey for $1.5 billion in cash. This move follows a tragic incident at the mine in 2024 that led to the suspension of operations. By divesting this non-operating asset, SSR Mining aims to reduce portfolio risk and quickly convert the asset into cash. The transaction is expected to be completed in the third quarter of 2026.
This potential cash injection of $1.5 billion, coupled with the company’s projected 10% growth in gold-equivalent production for 2026, builds a compelling investment narrative for SSR Mining. Simultaneously, the company is utilizing cash flow generated by high gold and silver prices to invest in the future, with seven significant projects currently advancing aimed at boosting production capacity in the coming years. The company has approximately $1 billion in liquidity to support the development of these projects. However, with the market’s focus fixed on commodity price volatility, these fundamental positive factors are currently unable to become the primary drivers of the stock price. Given silver’s historically volatile nature, its price movements often tend to be more dramatic than gold’s. Investors need to carefully assess the future direction of silver prices before making a buying decision during SSR Mining’s share price pullback. Particular attention should be paid to whether any regulatory hurdles exist concerning the sale of the Turkish asset.
