SSR Mining Inc. completed the sale of its 20% [1] equity interest in the Hod Maden development project to Lidya Mines.
This transaction shifts the company's financial exposure from direct ownership to a royalty stream. By monetizing the stake, the company reduces its direct equity risk while maintaining a long-term financial interest in the Turkish project's output.
As part of the agreement, SSR Mining received an uncapped 4% [2] net smelter return royalty on 100% of the project. The company is headquartered in Denver, Colorado, while the Hod Maden project is located in Turkey [3].
The deal also includes a specific provision for Royal Gold. The firm holds a call right to purchase half of the royalty—specifically 2% [4]—for a payment of $160 million [4].
The transaction and its announcement occurred on May 18, 2024 [5]. Following the announcement, the company's share price saw a premarket movement of -0.85% [6].
SSR Mining, which trades on the Nasdaq and TSX under the symbol SSRM [1], executed the sale to convert its equity position into a more passive revenue stream. This move allows the company to benefit from the project's overall success without the direct obligations of equity ownership.
“SSR Mining completed the sale of its 20% equity interest in the Hod Maden development project.”
The shift from an equity stake to a net smelter return (NSR) royalty represents a strategic pivot toward a lower-risk financial model. By removing the 20% equity burden, SSR Mining eliminates its share of the project's operational costs and capital expenditures while retaining a percentage of the gross revenue. This provides the company with a predictable income stream and a mechanism for potential liquidity through the Royal Gold call option.
