Following a sharp dip before $4,100 per ounce on March 23, gold rebounded dramatically, surging past $4,500 per ounce this morning after President Donald Trump extended an ongoing pause in U.S. attacks on Iran's energy facilities by 10 days to April 6. This nearly 10% rally in gold in a matter of days sent gold stocks higher too, with shares of SSR Mining (SSRM 3.42%) surging 17.5% in the week through 11 a.m. ET Friday.
However, there's a reason why SSR Mining is among this week's top-performing gold stocks. Beyond the gold rush, SSR Mining made a couple of major announcements this week, including a share repurchase program, because management believes the stock is worth a lot more than where it is trading today.
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Why SSR Mining stock is flying
On March 25, SSR Mining signed a definitive agreement on March 25 to sell its 80% stake in the Copler gold mine in Turkey to local industrial giant, Cengiz Holding, for $1.5 billion in cash. While the proposed deal was originally announced in early March, the gold miner confirmed it this week and expects to close the transaction in the third quarter of 2026.
This is a significant move for two reasons. First, Copler has been an overhang since 2024, when a tragic accident forced SSR Mining to suspend operations. By selling the distressed asset, SSR Mining is offloading major reclamation costs and geopolitical risks, and can focus on its core portfolio in the Americas.
Second, the deal will immediately infuse $1.5 billion in cash, which SSR Mining expects to reinvest in the business and growth.
NASDAQ: SSRM
Key Data Points
Friday morning, SSR Mining announced plans to repurchase up to 10% of its public float over the next one year. That's a huge buyback program, and the announcement sent the gold stock surging by over 9% as of this writing.
What should you do with SSR Mining stock now?
What makes SSR Mining stock's buyback is the timing of its Copler stake sale. The $1.5 billion cash will leave the gold miner with substantial liquidity and very little debt. Management believes the best use of all of that money right now is to buy back the shares because the stock price does not reflect the "the underlying fundamental value and future growth prospects" of the company.
In short, SSR Mining thinks its shares are undervalued despite the stock more than doubling in one year. In March, though, the gold stock had lost nearly 24% of its value until the buyback announcement. Given the upcoming asset sale that should significantly fortify SSR Mining's balance sheet, this gold stock looks very promising for the long term.
