Entering 2026, the precious metals market has shown strong performance. In January, gold prices reached $5,500 per ounce, and silver prices hit $121 per ounce. Against a backdrop of heightened geopolitical uncertainty and widening fiscal deficits, precious metal prices continue to climb, creating a favorable market environment for gold and silver mining companies. SSR Mining (SSRM), a mid-tier mining company headquartered in Denver, has seen its stock price rise by a cumulative 160% over the past year.
The company recently announced the sale of an 80% stake in its Copler mine in Turkey for $1.5 billion. This transaction will significantly strengthen the company’s balance sheet and bring record-breaking cash reserves. Analysts believe this could be a positive signal for the company’s future development.
Earlier this year, SSR Mining reached an agreement to sell its majority stake in the Copler mine in Turkey. This transaction achieves multiple objectives for the company: on one hand, it reduces SSR Mining’s exposure to emerging markets, allowing the company to divest from this troubled mine, which was shut down by regulators in 2024 following a fatal accident. Through this sale, SSR Mining is able to shift its operational focus toward lower-risk, Americas-focused gold and silver projects.
On the other hand, the sale brings substantial cash proceeds to SSR Mining. The company had already delivered an impressive financial performance, generating $242 million in free cash flow for the full year. In the first quarter of this year, free cash flow further reached $211 million. At the end of the quarter, the company held $634 million in cash, with total liquidity of $1.1 billion and no debt.
Upon completion of the Copler mine sale, the company will receive an additional $1.5 billion in cash, providing ample firepower for potential acquisitions, as well as for dividends or share buybacks.
SSR Mining remains on track to achieve its full-year 2026 production guidance of 450,000 to 535,000 gold equivalent ounces, with production primarily concentrated in the second half of the year. Another risk point for investors is the rise in fuel prices. Crude oil prices remain elevated due to ongoing conflicts in Iran.
Fuel accounts for approximately 10% of SSR Mining’s total operating costs. At current levels, every $10 increase in crude oil prices would raise the company’s all-in sustaining costs by $7 to $10 in the second half of the year. To address this, the company has hedged 70% of its diesel usage using zero-cost collar options valid through the end of this year.
Analysts expect the company’s non-GAAP earnings per share to be $4.59 this year. After a recent 15% pullback from its 52-week high, the stock currently trades at approximately 6.7 times expected earnings. Given its strengthening balance sheet and the expectation of further gold price increases, SSR Mining represents a currently undervalued mining stock worth watching for investors bullish on the precious metals outlook.
Summary: SSR Mining is selling an 80% stake in its Turkish Copler mine for $1.5 billion. This move both reduces its emerging market exposure and brings record-breaking cash reserves to the company. Combined with the company’s already debt-free status and robust free cash flow, this transaction provides ample funds for potential acquisitions, dividends, or share buybacks. At the same time, the company has hedged against diesel price increases and maintained its full-year production guidance. Against the backdrop of high precious metal prices, the stock’s valuation remains relatively low following its recent pullback.
