What Silver Standard Resources (SSRM) Said on Its Q3 Earnings Call

Key Points

• SSR Mining produced nearly 104,000 gold-equivalent ounces in Q3 and remains on track to meet full-year production guidance, but expects all-in sustaining costs to end about 10% above the top of its guidance range. Cost pressures include Puna mine-plan changes, higher royalties, diesel, labor and supplies.
• The company reported $448 million in quarterly revenue and approximately $111 million in free cash flow before working-capital changes; it ended the quarter with $1.6 billion in cash, no debt and $2.2 billion in total liquidity.
• An updated Marigold plan extends the mine’s reserve life to 2040, while SSR Mining’s planned Converse acquisition could add 150,000–170,000 ounces of annual gold production in the early 2030s. The company also repurchased nearly 17 million shares in the first nine months of 2026 and reinstated its dividend.

Silver Standard Resources NASDAQ: SSRM, operating as SSR Mining, said its four operations delivered stable third-quarter production and that it remains on track to meet full-year production guidance, though it now expects all-in sustaining costs to finish about 10% above the high end of its guidance range.

Executive Chairman Rod Antal said the company produced a “busy and productive quarter,” marked by a new technical report that extended the life of its Marigold mine in Nevada and an agreement to acquire Roxmore Resources and its adjacent Converse Gold Project. SSR Mining has also completed its exit from Turkey, leaving the company focused on gold and silver operations in the Americas.

Third-quarter results and cost pressures

SSR Mining produced nearly 104,000 gold-equivalent ounces in the third quarter at all-in sustaining costs of $2,527 per ounce, according to Chief Financial Officer Michael Sparks. Revenue totaled $448 million on sales of almost 107,000 gold-equivalent ounces, with realized prices of $4,247 per ounce of gold and $58.39 per ounce of silver.

Net income was $0.46 per diluted share, while adjusted net income was $0.64 per diluted share. The difference included a one-time, non-cash increase in the estimated cost of water management and tailings storage at Puna. Sparks said the charge followed completion of closure studies related to the Pirquitas water management system and tailings storage facility. Since Pirquitas is no longer operating, the company was required under U.S. GAAP to recognize the cost immediately.

The charge did not affect all-in sustaining costs, and its $43.5 million after-tax impact was excluded from adjusted earnings per share, Sparks said.

Free cash flow from continuing operations before working-capital changes was approximately $111 million in the quarter. Including working-capital changes, free cash flow was $6 million, reflecting higher receivables tied to the timing of Puna concentrate sales and inventory builds at Cripple Creek & Victor and Marigold. For the first nine months of 2026, free cash flow was nearly $305 million, or $486 million before working-capital changes.

The company ended the quarter with about $1.6 billion of cash, no debt and total liquidity of $2.2 billion.

Puna mine plan and inflation lift expected costs

Antal said approximately half of the expected increase in full-year all-in sustaining costs stems from changes at the Puna operation. The company is prioritizing stripping and drilling at Chinchillas in pursuit of mine-life extensions, while deferring processing of lower-cost stockpiled material.

“They haven’t been lost, they’ve just been deferred to a later time,” Antal said of the stockpile ounces during the question-and-answer session.

The remainder of the cost pressure reflects higher royalties associated with elevated gold and silver prices, diesel costs, and labor and consumable inflation. Sparks said labor represents about one-third of the company’s operating cost base, while royalties and supplies each account for roughly 15%.

The company’s 2026 diesel hedges, which covered about two-thirds of consumption at Marigold and Cripple Creek & Victor and about 60% of its global exposure, expired during the quarter. At current prices, Sparks said the absence of those hedges could add $100 to $150 per ounce to consolidated all-in sustaining costs. SSR Mining has not yet established diesel hedges for 2027 and is evaluating opportunities.

Marigold plan extends mine life to 2040

The updated Marigold technical report outlined 4.6 million ounces of mineral reserves, a 20-year reserve life and average annual gold production of more than 200,000 ounces through 2040. Antal said the updated plan represents more than a 50% increase in total production compared with the prior technical report.

The plan includes the Buffalo Valley project, where development is expected to begin in 2027, with first production targeted for 2029. SSR Mining expects the development to support a larger mining fleet, new leach pads and greater operating flexibility over time.

Marigold produced 29,000 ounces during the third quarter, bringing year-to-date production to 98,000 ounces. Executive Vice President of Operations and Sustainability Bill MacNevin said the company expects the fourth quarter to be its strongest production period of the year, aided by completed pumping upgrades, higher leach-pad solution flows, potential stacking at Cell 23A and planned inventory drawdowns.

Marigold’s third-quarter all-in sustaining cost was $2,714 per ounce, reflecting higher sustaining capital spending and broader cost inflation.

Converse acquisition and capital returns

SSR Mining announced on Oct. 13 that it had agreed to acquire Roxmore Resources and its Converse Gold Project, which is adjacent to Marigold. The company expects the transaction to close by year-end and plans to fund it with existing cash.

Antal said Converse has the potential to contribute average annual production of 150,000 to 170,000 ounces of gold, though no material development is expected until the early 2030s. The project is expected to have no near-term effect on free cash flow.

Including the updated Marigold plan, SSR Mining said its U.S. platform holds more than 7 million ounces of gold reserves and an additional 9 million ounces of resources. Once Converse enters production, the company expects its U.S. operations could exceed 450,000 ounces of annual gold production in peak years.

The company also continued its shareholder-return program, repurchasing nearly 17 million shares during the first nine months of 2026 for more than $530 million. Coupled with its reinstated dividend, Antal said the company has delivered a capital-return yield of about 10% this year. About 4.9 million shares remained available under its normal course issuer bid at quarter-end.

Beyond Marigold and Converse, SSR Mining said it is advancing mine-life and resource-growth opportunities at Cripple Creek & Victor, Seabee and Puna. At Seabee, the company is evaluating the Porky area as a potential mine-life extension opportunity, while Puna is pursuing additional extensions at Chinchillas and advancing the longer-term Cortaderas project.

About Silver Standard Resources (NASDAQ:SSRM)

Silver Standard Resources, now known as SSR Mining Inc NASDAQ: SSRM, is a precious metals mining company focused primarily on the exploration, development and production of gold and silver. The company's operations have included open-pit and underground mines, processing facilities and exploration properties in the Americas and Türkiye.

SSR Mining has historically operated the Marigold gold mine in Nevada, the Seabee gold operation in Saskatchewan, Canada, and the Puna silver-lead-zinc complex in Jujuy, Argentina.

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