Why SSR Mining Stock Keeps Falling

Owning SSR Mining (NASDAQ: SSRM) banal hasn't been a batch of amusive this past week.

Shares of the golden miner (which besides mines copper, silver, lead, and zinc) are down 5.4% done 11:40 a.m. ET Thursday. This is lone SSR's 2nd straight day of declines, but the stock's down 19% since hitting its all-time precocious supra $28 connected Jan. 28.

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What's ailing SSR Mining? No enigma there: After hitting an all-time precocious of $5,419.80 per ounce connected Jan. 28, golden prices plunged beneath $4,660 done Monday, according to information from TradingEconomics.com. Prices person recovered somewhat since, and basal astatine 4,879.10 currently.

The communicative connected metallic is akin -- but worse. Again, prices peaked connected Jan. 28 -- astatine $116.58 per ounce. By Monday, metallic was selling for conscionable $79.21. After a little bounce higher, though, metallic prices person resumed falling, hitting $76.82 today.

It makes consciousness that erstwhile the products SSR mines and sells get cheaper, truthful excessively would its banal price.

And yet, this is hardly quality to Wall Street. Gold and metallic prices are wide available, and the costs SSR Mining incurs to excavation metallic and golden are besides good known. That makes it casual for Wall Street analysts to bash the mathematics and forecast however overmuch SSR is apt to earn.

And what bash these analysts say?

Simply this: SSR banal costs 24 times trailing net today. But golden and metallic prices are truthful overmuch higher present than past twelvemonth (even aft their caller decline), that SSR's guardant P/E ratio is little than 6. With net forecast to much than treble adjacent year, SSR banal has a PEG ratio of astir 0.2.

SSR banal looks similar a bargain to me.

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