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CIBC Revises Earnings Estimate for SSR Mining After Hod Maden Stake Sale

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CIBC Capital Markets on Tuesday revised its 2027 adjusted earnings estimate for SSR Mining (SSRM.TO, SSRM) to reflect the miner's sale of its interest in the Hod Maden operation in Turkey.

CIBC trimmed the 2027 adjusted earnings forecast for SSR to US$8.06 from US$8.21 previously, while retaining the 2026 estimate of US$5.36 per share.

SSR agreed to sell its 20% stake in the mine to joint venture partner Lidya Mines in exchange for a 4% net smelter royalty (NSR), as SSR shifted its focus to its assets in the U.S., Canada and Argentina.

CIBC expects SSR shares to continue to re-rate higher following the transaction. The SSR royalty was worth US$320 million while the 20% stake had an estimated value of US$387 million, CIBC said.

"We believe the royalty interest should be better rewarded by the market given the benefits of an NSR, including more resilience against cost inflation and other risk, CIBC said.

"Furthermore, SSR Mining reminded investors of the other royalties already in its portfolio ... all of which together have a value calculating to US$165 million; a value that we believe is likely overlooked by the market and may not be included in many analyst models," CIBC added.

Price: $42.31, Change: $+1.58, Percent Change: +3.88%

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