SSR Mining Inc., a precious metals producer based in the United States, experienced a significant drop in its shares, plummeting by as much as 61% on Tuesday. The sharp decline came after the company decided to halt operations at its flagship Turkish gold mine due to a landslide. This incident marks the second time in two years that SSR Mining has faced such a situation at the site.
The suspension of operations at the Çöpler Mine, located in eastern Turkey, was prompted by a “large slip” on the mine’s heap leach pad, which is a pond where metals are extracted from ore. In response to the incident, rescue teams were dispatched to the area, and unfortunately, nine workers remain unaccounted for. Turkey’s Energy & Natural Resources Ministry issued a statement confirming the situation.
Following the disclosure of the landslide, SSR Mining’s US shares were temporarily halted as the stock experienced a sharp decline. As of 1:19 p.m. in New York, the shares had dropped by 60% to $3.87, reaching their lowest intraday level since January 2016. The company’s market value has suffered significantly, with over half of its worth wiped out. SSR Mining now has a market capitalization of approximately $785 million.
The mishap at the Turkish gold mine has drawn criticism from Turkish politicians, who have pointed out the company’s previous issues at the same site near the Euphrates River. Nearly 20 months ago, SSR Mining had to suspend operations due to a cyanide waste spill. Meral Aksener, the leader of the Turkish opposition IYI Party, expressed frustration over the government’s failure to address the dangers associated with cyanide gold mining near such a significant water source.
In response to the incident, Turkish authorities have initiated both judicial and administrative investigations. Additionally, the main opposition party, Republican People’s Party, has sent a delegation to the area to assess the situation firsthand.
Çöpler Mine is SSR Mining’s second-largest producing gold mine, with an output of 56,768 ounces in the third quarter of last year. The facility has been operational since 2010 and currently operates two plants for ore production.
The severity of the incident led SSR Mining to cut short its conference call with analysts, which was intended to discuss the company’s 2024 guidance. Executive Chairman Rodney Antal acknowledged the incident’s impact and stated that further details were not yet available.
As SSR Mining grapples with the consequences of the landslide at its Turkish gold mine, the company faces significant challenges in restoring operations and addressing safety concerns. The incident serves as a reminder of the risks associated with mining operations and highlights the need for stringent safety measures in the industry. The investigations initiated by Turkish authorities will shed light on the causes of the landslide and determine any necessary actions to prevent similar incidents in the future.
While SSR Mining navigates this setback, stakeholders and investors will closely monitor the company’s response and its ability to mitigate the effects of the incident. The fate of Çöpler Mine hangs in the balance as SSR Mining works towards resuming operations and ensuring the safety of its workers.
