SSR Mining Inc. (SSRM): Business Model Canvas [11-2024 Updated]
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SSR Mining Inc. (SSRM) Bundle
In the competitive world of mining, understanding the business model of SSR Mining Inc. (SSRM) is crucial for investors and stakeholders alike. This Canadian-based company excels in the production of precious metals, leveraging a well-structured business model canvas that includes key partnerships with local governments and suppliers, robust activities focused on mining and sustainability, and strong value propositions centered around high-quality production and operational efficiency. Dive deeper into the components that drive SSRM's success and discover how they navigate the complexities of the mining industry.
SSR Mining Inc. (SSRM) - Business Model: Key Partnerships
Collaborations with local governments for mining operations
SSR Mining Inc. has established significant partnerships with local governments in regions where it operates, such as Canada, the United States, and Turkey. These collaborations are crucial for securing mining rights, ensuring compliance with regulatory frameworks, and fostering community relations.
For example, in Turkey, SSR Mining has engaged with the Turkish government to expand its Çöpler mine operations, which has resulted in a long-term mining license and support for infrastructure development. The company reported an investment of approximately $150 million in local infrastructure improvements in 2023.
Strategic alliances with suppliers for equipment and materials
SSR Mining has formed strategic alliances with key suppliers to ensure a consistent supply of equipment and materials necessary for its mining operations. Notable suppliers include Caterpillar Inc. and Sandvik, which provide heavy machinery and mining tools.
In 2023, SSR Mining signed a multi-year agreement with Caterpillar for the provision of mining equipment, valued at approximately $100 million. This partnership is aimed at enhancing operational efficiency and reducing downtime through reliable equipment supply.
| Supplier | Type of Equipment | Contract Value | Year of Agreement |
|---|---|---|---|
| Caterpillar Inc. | Heavy Machinery | $100 million | 2023 |
| Sandvik | Mining Tools | $30 million | 2022 |
Partnerships with environmental organizations for sustainability initiatives
SSR Mining is committed to sustainability and has partnered with various environmental organizations to enhance its sustainability initiatives. Collaborations with groups such as the International Council on Mining and Metals (ICMM) and local conservation agencies are aimed at minimizing environmental impact and promoting responsible mining practices.
As part of its sustainability strategy, SSR Mining allocated approximately $20 million in 2023 towards environmental restoration projects and biodiversity conservation efforts in mining regions.
| Organization | Type of Partnership | Investment Amount | Year |
|---|---|---|---|
| International Council on Mining and Metals (ICMM) | Sustainability Initiatives | $10 million | 2023 |
| Local Conservation Agencies | Environmental Restoration | $10 million | 2023 |
SSR Mining Inc. (SSRM) - Business Model: Key Activities
Mining operations and production of precious metals
SSR Mining Inc. engages in the mining and production of precious metals, primarily gold and silver, through its various mining operations. For the three months ended September 30, 2024, SSR Mining produced:
- Gold produced: 63,155 ounces
- Silver produced: 2,885,000 ounces
In terms of sales, the company sold:
- Gold sold: 63,052 ounces
- Silver sold: 2,785,000 ounces
The average realized prices for precious metals during this period were:
- Average realized gold price: $2,531 per ounce
- Average realized silver price: $30.05 per ounce
The total revenue for the third quarter of 2024 was $257.4 million, a decrease of 33.2% compared to $385.4 million in the same period of 2023, primarily due to a 60.9% reduction in gold equivalent ounces sold.
Exploration and evaluation of new resource sites
Exploration and evaluation activities are critical for SSR Mining to identify new resource sites. The company spent:
- Exploration and evaluation costs for Q3 2024: $11.4 million
- Exploration and evaluation costs for the first nine months of 2024: $32.9 million
This represents a decrease from $14.9 million for Q3 2023 and $39.4 million for the first nine months of 2023, reflecting reduced drilling activity.
Environmental management and reclamation activities
SSR Mining places a strong emphasis on environmental management and reclamation. The reclamation and remediation costs for the three months ended September 30, 2024, were:
- Reclamation and remediation costs for Q3 2024: $2.4 million
- Reclamation and remediation costs for the first nine months of 2024: $280.1 million
This significant increase in costs for the nine-month period is mainly due to reclamation and remediation activities related to the Çöpler Incident, which accounted for $261.7 million of the total.
SSR Mining Inc. (SSRM) - Business Model: Key Resources
Mining assets including Çöpler, Marigold, Seabee, and Puna
SSR Mining Inc. operates four key mining assets: Çöpler, Marigold, Seabee, and Puna. As of September 30, 2024, the total assets for these segments were valued at:
| Mining Asset | Total Assets (USD) |
|---|---|
| Çöpler | $2,724,079,000 |
| Marigold | $813,622,000 |
| Seabee | $368,662,000 |
| Puna | $295,788,000 |
| Total | $4,202,151,000 |
In the third quarter of 2024, SSR Mining produced a total of 97,429 gold equivalent ounces, with specific contributions from each asset affected by operational disruptions due to environmental incidents.
Skilled workforce and technical expertise
SSR Mining's workforce is essential to its operations. As of September 30, 2024, the company had undergone workforce adjustments due to operational suspensions at Çöpler and Seabee. However, the skilled workforce remains a critical resource for maintaining operational efficiency and safety standards. The company has invested in training and development programs to enhance technical expertise, particularly in areas of environmental management and operational recovery following incidents.
Strong financial position with significant cash reserves
As of September 30, 2024, SSR Mining reported a cash and cash equivalents balance of $334.3 million and total liquidity of $834 million, which includes the revolving credit facility. This financial strength provides the company with the necessary resources to manage care and maintenance costs, which amounted to $84.3 million for the first nine months of 2024, primarily due to the Çöpler and Seabee operations.
The company’s adjusted net income for the third quarter of 2024 was $6.4 million, demonstrating its ability to maintain profitability despite operational challenges.
Additionally, the company has significant commitments to reclamation and remediation efforts, with costs reaching $280.1 million for the nine months ended September 30, 2024, reflecting ongoing obligations to environmental stewardship.
SSR Mining Inc. (SSRM) - Business Model: Value Propositions
High-quality gold and silver production
SSR Mining Inc. focuses on producing high-quality gold and silver, with significant operational metrics demonstrating its production capabilities. In the third quarter of 2024, the company reported:
- Gold produced: 63,155 ounces
- Gold sold: 63,052 ounces
- Silver produced: 2,885 thousand ounces
- Silver sold: 2,785 thousand ounces
The average realized gold price in Q3 2024 was $2,531 per ounce, reflecting a 32.3% increase from the previous year. This pricing indicates strong market demand and the company’s ability to capture premium pricing for its products.
Commitment to sustainable mining practices
SSR Mining demonstrates a commitment to sustainable mining practices through various initiatives and investments. In the third quarter of 2024, the company incurred:
- Care and maintenance costs: $39.4 million at Seabee and $29.8 million at Çöpler
- Total remediation spend since April 1, 2024: $103.3 million
The substantial investment in remediation, totaling $48.3 million in Q3 2024 alone, underscores its focus on environmental stewardship. Additionally, the company's effective reclamation and remediation costs for the nine months ended September 30, 2024, reached $280.1 million, compared to just $6.5 million in the same period of 2023, marking a significant increase due to ongoing commitments to sustainable operations.
Strong operational efficiency and cost management
SSR Mining's operational efficiency is reflected in its cost management practices. The company reported the following metrics for Q3 2024:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Cost of sales per gold equivalent ounce sold | $1,438 | $1,095 | 31.3% |
| AISC per gold equivalent ounce sold | $2,065 | $1,289 | 60.2% |
| Operating income (loss) | $9.0 million | $77.5 million | -88.3% |
The overall decline in operating income reflects the challenges faced during the operational suspensions, but the ability to maintain a cash and liquidity position of $834.0 million as of September 30, 2024, illustrates resilience in financial management.
SSR Mining Inc. (SSRM) - Business Model: Customer Relationships
B2B relationships with metal traders and refiners
SSR Mining Inc. engages in business-to-business (B2B) relationships primarily with metal traders and refiners for the sale of its gold and silver products. In the third quarter of 2024, the company reported revenue of $257.4 million, a decrease of 33.2% compared to $385.4 million in the same quarter of 2023, attributed to a 60.9% decline in gold equivalent ounces sold. The average realized gold price increased by 32.3% to $2,531 per ounce during this period.
Engagement with local communities for social responsibility
SSR Mining emphasizes community engagement as part of its social responsibility initiatives. The company has invested significantly in community development and environmental stewardship. Total reclamation and remediation costs for the nine months ended September 30, 2024, reached $280.1 million, a significant increase from $6.5 million in the same period of 2023. This is largely due to the Çöpler Incident, highlighting the company's commitment to rectifying environmental impacts and supporting local communities impacted by its operations.
Transparency in operations and financial reporting
SSR Mining maintains transparency in its operations and financial reporting, which is crucial for building trust with stakeholders. As of September 30, 2024, the company reported a cash and cash equivalent balance of $334.3 million and total liquidity of $834.0 million, indicating a strong financial position. The company complies with all regulatory requirements and provides detailed financial disclosures, including adjusted net income figures, which for the third quarter of 2024 was $6.4 million, down 88% from $53 million in the previous year.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Total Revenue | $257.4 million | $385.4 million | -33.2% |
| Gold Equivalent Ounces Sold | 96,143 oz | 196,088 oz | -51.0% |
| Average Realized Gold Price | $2,531/oz | $1,913/oz | +32.3% |
| Reclamation and Remediation Costs | $280.1 million | $6.5 million | +4197.4% |
| Cash and Cash Equivalents | $334.3 million | N/A | N/A |
| Total Liquidity | $834.0 million | N/A | N/A |
SSR Mining Inc. (SSRM) - Business Model: Channels
Direct sales to refineries and metal traders
SSR Mining Inc. engages in direct sales of gold, silver, lead, and zinc to refineries and metal traders. For the three months ended September 30, 2024, the company reported revenues of $257.4 million, a decrease from $385.4 million during the same period in 2023, primarily due to a 60.9% reduction in gold equivalent ounces sold. The average realized gold price increased by 32.3% to $2,531 per ounce. The company sold 63,052 ounces of gold during this period.
| Sales Channel | Revenue (Q3 2024) | Gold Sold (oz) | Average Realized Price ($/oz) |
|---|---|---|---|
| Direct Sales | $257.4 million | 63,052 | $2,531 |
Public relations and investor communications via reports and presentations
SSR Mining maintains a proactive approach to investor relations, utilizing public relations to communicate its financial performance and operational updates. In Q3 2024, the company reported a net income attributable to shareholders of $10.6 million, or $0.05 per diluted share. This is a decrease from $15.2 million, or $0.07 per diluted share, in Q3 2023. The company’s total liquidity as of September 30, 2024, was reported at $834.0 million.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income ($ million) | $10.6 | $15.2 |
| Net Income per Diluted Share ($) | $0.05 | $0.07 |
| Total Liquidity ($ million) | $834.0 | N/A |
Online platforms for investor engagement and updates
SSR Mining leverages online platforms to enhance investor engagement and provide timely updates. The company’s online presence includes its corporate website and social media channels, where it shares quarterly earnings reports and operational updates. As of September 30, 2024, the company had total assets of $5.14 billion. The company’s total revenue for the nine months ended September 30, 2024, was $672.4 million, reflecting a 32.8% decline compared to $1.00 billion in the same period in 2023.
| Financial Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Total Assets ($ billion) | $5.14 | $5.75 |
| Total Revenue ($ million) | $672.4 | $1,001.0 |
SSR Mining Inc. (SSRM) - Business Model: Customer Segments
Institutional investors and shareholders
SSR Mining Inc. has a strong base of institutional investors, which significantly influences its stock performance and corporate governance. As of September 30, 2024, the company reported a cash and cash equivalent balance of $334.3 million and total liquidity of $834.0 million, which includes its revolving credit facility. The company's net income attributable to shareholders for the third quarter of 2024 was $10.6 million, translating to a diluted earnings per share of $0.05. This financial stability is crucial for attracting and retaining institutional investors, who typically seek companies with robust financial health and growth potential.
Precious metal traders and refiners
SSR Mining Inc. engages extensively with precious metal traders and refiners, capitalizing on the demand for gold, silver, lead, and zinc. For the three months ended September 30, 2024, the company generated revenues of $257.4 million, a decrease of 33.2% compared to the previous year, primarily due to a 60.9% reduction in gold equivalent ounces sold. The average realized gold price during this period was $2,531 per ounce, up by 32.3% from the previous year. The company sold 2.785 million ounces of silver and reported a revenue of $80.8 million from silver sales. This engagement with traders and refiners is essential for maximizing revenue from commodity sales.
Local communities affected by mining operations
SSR Mining Inc. maintains a focus on the local communities impacted by its mining operations. As of September 30, 2024, the company incurred $280.1 million in reclamation and remediation costs. This includes the costs associated with the Çöpler incident, which had significant implications for local environmental and community relations. The company's commitment to community engagement and environmental stewardship is reflected in its substantial remediation efforts and ongoing communication with local stakeholders.
| Customer Segment | Key Metrics | Financial Data |
|---|---|---|
| Institutional Investors | Cash and Cash Equivalents | $334.3 million |
| Institutional Investors | Total Liquidity | $834.0 million |
| Precious Metal Traders | Revenue from Sales | $257.4 million |
| Precious Metal Traders | Average Realized Gold Price | $2,531 per ounce |
| Local Communities | Reclamation and Remediation Costs | $280.1 million |
SSR Mining Inc. (SSRM) - Business Model: Cost Structure
Significant operational costs related to mining and production
The total cost of sales for SSR Mining Inc. for the nine months ended September 30, 2024, was $360.8 million, a decrease of 38.3% compared to $584.6 million for the same period in 2023 . The cost of sales per gold equivalent ounce sold was $1,312 . This significant operational cost includes various components such as:
- Care and maintenance costs: $84.3 million for the nine months ended September 30, 2024, comprising $74.7 million at Çöpler and $9.6 million at Seabee .
- Depreciation, depletion, and amortization (DD&A): $91.9 million for the nine months ended September 30, 2024, down from $147.7 million in the prior year .
| Cost Component | Amount (in millions) |
|---|---|
| Cost of Sales | $360.8 |
| Care and Maintenance Costs | $84.3 |
| Depreciation, Depletion, and Amortization | $91.9 |
Exploration and evaluation expenses
Exploration and evaluation costs for SSR Mining Inc. for the nine months ended September 30, 2024, were $32.9 million, a decrease from $39.4 million in the same period of 2023 . This reduction is attributed to decreased drilling activity. The primary focus of these costs included:
- Activities at the Sterling project at Marigold.
- Exploration for the Cortaderas project at Puna.
- Surface exploration at the Amisk project at Seabee.
| Project | Exploration Expense (in millions) |
|---|---|
| Sterling Project (Marigold) | Data not specified |
| Cortaderas Project (Puna) | Data not specified |
| Amisk Project (Seabee) | Data not specified |
| Total Exploration and Evaluation Costs | $32.9 |
Environmental management and reclamation costs
Environmental management and reclamation costs saw a substantial increase due to the Çöpler Incident. For the nine months ended September 30, 2024, these costs amounted to $280.1 million, compared to just $6.5 million for the same period in 2023 . This increase reflects the company's commitment to addressing the remediation efforts necessary post-incident.
- Reclamation and remediation costs for the third quarter of 2024 were $2.4 million .
- Total remediation spend since April 1, 2024, reached $103.3 million .
| Cost Component | Amount (in millions) |
|---|---|
| Reclamation and Remediation Costs (2024) | $280.1 |
| Reclamation and Remediation Costs (Q3 2024) | $2.4 |
| Total Remediation Spend (since April 2024) | $103.3 |
SSR Mining Inc. (SSRM) - Business Model: Revenue Streams
Sales of gold doré and silver concentrates
SSR Mining Inc. generates significant revenue from the sale of gold doré and silver concentrates. For the three months ended September 30, 2024, total revenue from gold doré sales was $159.6 million, while silver sales contributed $80.8 million. The breakdown of revenue from gold doré sales across different mining sites is as follows:
| Mining Site | Gold Doré Sales (in thousands) |
|---|---|
| Çöpler | $11,804 |
| Marigold | $119,888 |
| Seabee | $27,886 |
| Total Gold Doré Sales | $159,578 |
For the nine months ended September 30, 2024, total revenue from gold doré sales reached $439.8 million, with similar contributions from the Çöpler, Marigold, and Seabee mines. The total revenue from silver concentrates during the same period was $189.5 million, indicating a robust demand for both gold and silver products.
Revenue from by-products including lead and zinc
SSR Mining also earns revenue from by-products such as lead and zinc. The sales figures for these by-products for the three months ended September 30, 2024, are as follows:
| By-Product | Revenue (in thousands) |
|---|---|
| Lead | $12,964 |
| Zinc | $754 |
For the nine months ended September 30, 2024, revenue from lead was $33.3 million, while revenue from zinc amounted to $2.99 million. This diversification into by-products helps enhance the overall profitability of the company, leveraging the full potential of the mining operations.
Potential income from royalties and joint ventures
In addition to direct sales, SSR Mining may also benefit from potential income through royalties and joint ventures. While specific figures for 2024 related to royalties have not been disclosed, the company has a history of engaging in joint ventures that can yield additional revenue streams. The strategic partnerships can lead to shared resources and enhanced operational efficiencies, potentially increasing overall revenue. The company’s ongoing analysis of market conditions and partnerships will influence future royalty income.
As of September 30, 2024, SSR Mining reported a total revenue of $672.4 million for the nine months, down from $1,001.0 million in the same period the previous year, largely due to operational suspensions at key sites.
Updated on 16 Nov 2024
Resources:
- SSR Mining Inc. (SSRM) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of SSR Mining Inc. (SSRM)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View SSR Mining Inc. (SSRM)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.