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SSR suspends Copler due to leak

SSR Mining has suspended operations at its Copler gold mine in Turkey following a leak from a pipeline that connects to the heap leach pad.
SSR suspends Copler due to leak SSR suspends Copler due to leak SSR suspends Copler due to leak SSR suspends Copler due to leak SSR suspends Copler due to leak

SSR's Copler

Turkey's Ministry of Environment provided verbal guidance on June 28 for SSR to expect to be required to need to implement improvement initiatives, which is to be followed by written notice in the coming days, SSR said.

"SSR Mining expects to implement these initiatives in a timely fashion and bring the Copler operation back to full capacity in the coming weeks once minister of environment officials are satisfied with the implementation," the company said.

The leak was of a leach solution containing about eight kilograms of diluted cyanide on June 21, SSR said.

National Bank of Canada analyst Mike Parkin said he understands that none of the initiatives are of a high-cost nature.

"Overall, we view this operational disruption as a modest negative, assuming the outage lasts a few weeks," he said.

NBC models Copler producing about 272,000 oz of gold on a 100% basis this year which accounts for 42% and 36% of the bank's 2022 consolidated gold and gold-equivalent production estimates for SSR, respectively.

"Based on our model, SSR will miss out on ~4,600oz of gold production per week that Copler is suspend in 3Q22," Parkin said.

SSR's share price was quoted as C$22.16 (US$17.18) on June 30, having fallen from C$24.48 week on week. The company has a market capitalization of C$4.71 billion.