Silver Standard Resources Pivots to Americas, Targets Cash Flow and Shareholder Returns

Key Points

• Americas-focused strategy: Silver Standard sold its Türkiye operations for $1.5 billion in cash and exchanged its Hod Maden interest for a royalty, shifting about 90% of its assets to the United States and Canada.
• Strong financial position and shareholder returns: The company generated $300 million in free cash flow in the first half, held nearly $1.8 billion in cash with no debt, repurchased $400 million of shares, and reinstated a $0.03 quarterly dividend.
• Growth remains disciplined: Management is prioritizing organic expansion at Marigold, Seabee and Puna while selectively evaluating Americas-focused acquisitions, as labor, consumable and royalty costs push all-in sustaining costs toward the high end of guidance.

Silver Standard Resources NASDAQ: SSRM outlined a strategic shift toward a simpler, Americas-focused portfolio, emphasizing cash generation, shareholder returns and organic growth following the sale of its Türkiye operations.

During a discussion with Stifel Managing Director of Precious Metals, Metals, and Mining Ralph Profiti, Rod said the company sold its Türkiye business in the first quarter for $1.5 billion in cash and exchanged its interest in Hod Maden for a net smelter return royalty. The moves shifted approximately 90% of the company’s assets into the United States and Canada, compared with a roughly even split between those jurisdictions and Türkiye previously.

Rod said the company remains the third-largest gold producer in the United States, supported by its Cripple Creek & Victor operation, acquired from Newmont, and its Marigold mine in Nevada. The portfolio also includes operations in Canada and Argentina.

Cash Flow, Buybacks and Dividend

The company reported $300 million in free cash flow during the first half of the year, which Rod described as its seasonally weaker period. It also completed $400 million in share repurchases during that time and reinstated a quarterly dividend of $0.03 per share when it released second-quarter results in July.

Rod said the balance sheet held nearly $1.8 billion in cash and no debt, adding that the company expected to approach an 8% yield in capital returns to shareholders for the year. Since 2021, the company has returned nearly $1 billion in cash to shareholders through buybacks and dividends, he said.

The existing share repurchase program is expected to be completed by March of next year. Rod said management would reassess its capital-allocation approach at that point, including whether additional buybacks are appropriate after considering investment needs and organic growth opportunities.

• Maintaining balance-sheet strength remains the company’s first capital-allocation priority.
• Organic growth investments are the next focus, followed by shareholder returns through dividends and buybacks.
• The company continues to evaluate external acquisition opportunities but said it does not feel pressured to complete a transaction.

Disciplined M&A Approach

Rod said the company remains acquisitive and reviews opportunities ranging from greenfield exploration projects to producing assets. However, it is prioritizing opportunities in the Americas that fit its strategy and can preserve its cash-generating profile.

“We are very methodical in the way that we allocate the capital,” Rod said, noting that many opportunities do not advance beyond initial desktop studies or due diligence. He added that the company is prepared to walk away when a potential transaction no longer offers an appropriate value proposition.

He cited the company’s small investment in Nevada exploration company Phenom Resources as an example of its interest in earlier-stage opportunities. Still, Rod said organic growth within the existing portfolio is the company’s principal near-term priority.

Operations and Costs

Management reiterated its 2026 guidance, while acknowledging that production is weighted toward the fourth quarter. At Marigold, Rod said new carbon columns and a retention pond have been installed and commissioned to increase solution flow rates, which he described as an important factor in meeting the mine’s production plan.

At Seabee in Saskatchewan, the company has reached Level 41, where it expects to access a high-grade ore pocket, according to Rod. He said the company remains on track to meet guidance, though the fourth quarter will be significant for annual results.

Rod said all-in sustaining costs have been trending toward the higher end due to labor and consumable inflation. Higher gold prices have also increased royalty payments at certain operations, including Marigold, he said. Management is pursuing operational efficiency improvements to offset cost pressures where possible.

Longer Mine Lives at Marigold, Seabee and Puna

The company expects to release an updated technical report for Marigold within four to six weeks. Rod said the report will incorporate approximately three years of drilling, reserve and resource conversion work, asset optimization efforts and plans to bring Buffalo Valley online. Targets including DG80 and New Millennium are being converted, he said.

While the near-term production profile is expected to remain broadly similar over the next five years, management plans to modernize Marigold by replacing and expanding its mining fleet. The objective is to open multiple ore faces rather than relying on a single mining face, which Rod said could reduce the operation’s recurring back-end-loaded production pattern.

At Seabee, the company is evaluating the depth and width potential at the Santoy mine and expects to make an investment decision on the Porky target within six to nine months. At Puna in Argentina, where the company added four years of mine life last year, management sees additional extension potential from pit laybacks and the Cortaderas target using the Pirquitas processing plant.

Rod also highlighted Cripple Creek & Victor as an asset that may be underappreciated by the market. He said the operation has nearly 7 million ounces of high-quality resources and extensive historical drilling and technical work. The focus now is on demonstrating how those resources could be converted into reserves over time.

About Silver Standard Resources (NASDAQ:SSRM)

Silver Standard Resources Inc was a precious-metals mining company focused on the acquisition, development and operation of silver and gold properties. The company produced silver and gold concentrates and worked to advance exploration and development projects in the Americas and other mining jurisdictions.

In 2017, Silver Standard Resources merged with Claude Resources Inc and changed its name to SSR Mining Inc The combined company expanded its portfolio to include the Seabee gold operation in Saskatchewan, Canada, and the Marigold gold mine in Nevada, while continuing to develop and operate precious-metals assets in Latin America.

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