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Why SSR Mining Stock Fell 11.5% in September

DATE POSTED:October 9, 2019

Share of relatively small gold and silver miner SSR Mining (NASDAQ: SSRM) fell 11.5% in September according to data provided by S&P Global Market Intelligence. This drop was around three times the decline in the spot price of gold. That said, there are two big takeaways from this September performance comparison, one of which has nothing to do with the price of gold.

SSR Mining is basically a junior gold miner, which means it's relatively small compared to the industry's giant names. It also happens to be a relatively high-cost miner, with all-in sustaining costs (a measure of how much the company has to spend to produce an ounce of gold on a sustainable basis) that were a bit above $1,000 per ounce in the June quarter. That was up nearly 3% year over year. Rising costs is bad, but the real issue is that, with relatively high costs, commodity price changes tend to have a bigger impact on SSR than on miners with lower cost structures. Thus, the stock tends to be more sensitive to the ups and downs of gold and silver prices. 

Image source: Getty Images.

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