Shares of SSR Mining Inc., a prominent precious metals producer, nosedived by a staggering 61% on Tuesday following the company’s decision to halt operations at its key Turkish gold mine due to a landslide — marking the second such incident at the site within a span of two years. SSR announced the suspension of operations at its Çöpler Mine in eastern Turkey after a significant slip occurred on the mine’s heap leach pad, a critical area for metal extraction from ore, on Tuesday morning. The unfolding situation led to the deployment of rescue teams to the area, with nine workers reported as unaccounted for, according to a statement from Turkey’s Energy & Natural Resources Ministry.
In response to the disclosure, SSR’s US shares were briefly halted as the stock took a sharp nosedive. By 1:19 p.m. in New York, the shares had plummeted by 60% to $3.87, marking their lowest intraday level since January 2016. The company witnessed over half of its market value evaporating, leaving the Denver-based firm with a market capitalization of approximately $785 million.
Turkish politicians have lambasted SSR in the wake of the incident, pointing to the company’s history of issues at the site near the Euphrates River, approximately 650 miles (1,046 kilometers) east of Istanbul. This latest incident comes nearly 20 months after a cyanide waste spill at the same location forced SSR to suspend operations in June 2022.
“We had cautioned the government about the perils of cyanide gold mining near the Euphrates River, but unfortunately, our warnings went unheeded,” remarked Meral Aksener, leader of the Turkish opposition IYI Party, in a post on X.
Turkish authorities have initiated both judicial and administrative investigations, with the main opposition Republican People’s Party sending a delegation to the area to monitor the situation.
Çöpler stands as SSR’s second-largest producing gold mine, with an output of 56,768 ounces in the third quarter of last year. The facility has been in operation since 2010 and currently runs ore extraction through two plants.
SSR abruptly ended its Tuesday conference call with analysts to discuss 2024 guidance, with Executive Chairman Rodney Antal citing the incident.
“It’s currently our primary focus, and it’s still early stages, so we’re unable to provide extensive details at this time,” Antal stated before requesting the call operator to conclude the session.
