Mining Sector Ideas

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SSR Mining (SSRM) - >>> 5 Stocks to Buy With $100 During a Market Sell-Off


Fortunes are made by putting your money to work during periods of panic.


Motley Fool

by Sean Williams

Oct 30, 2020


https://www.fool.com/investing/2020/10/30/5-stocks-to-buy-with-100-during-a-market-sell-off/


SSR Mining

A stock market sell-off is the perfect time to consider putting $100 to work in gold stocks. While gold is often viewed as a safe-haven investment during times of uncertainty, current monetary policy and company-specific catalysts make SSR Mining (NASDAQ:SSRM) quite intriguing.

On a macro level, the Federal Reserve has been clear that it doesn't intend to raise its federal-funds target rate for years. This means interest rates and bond yields will remain at or near record-tying lows for a while. Low yields, coupled with a ballooning money supply -- a result of the Fed's unlimited quantitative-easing measures to support financial markets -- should pave the way for a higher gold price.

On a company-specific level, SSR Mining recently completed a merger of equals with Turkey's Alacer Gold. The combined company should have the potential to easily top 700,000 ounces of gold each year, with an all-in sustaining cost of around $900 an ounce. This would work out to a cash operating margin of around $1,000 per gold-equivalent ounce.

Furthermore, SSR Mining is one of a small handful of gold stocks with a net cash balance. Considering the newly combined company expects $450 million in annual free cash flow through 2022, there's a good chance a dividend or share buyback will be announced soon.

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