Should You Buy the Dip On SSR Mining Stock?

Silver and gold are commodities with a long history of volatility. Over the past couple of years, both of these precious metals have been trending higher, but silver has recently pulled back quite sharply. That decline has taken SSR Mining (NASDAQ: SSRM) along for the ride. Here's what you need to know before you buy this precious metals miner amid its recent dip.

What does SSR Mining do?

SSR Mining bills itself as the third largest U.S. gold producer. Gold made up roughly 70% of the company's revenues in 2025. However, the company also produces a lot of silver, which made up 24% of revenues last year. So while gold is clearly the more important metal, silver is a significant player, too.

Image source: Getty Images.

Prior to a recent pullback, silver was the "hotter" metal, with its price rising far more than gold's. In fact, even after the pullback, silver is still up more than gold over the past year. Investors have been keen to find ways to participate in silver's strong run, with many turning to SSR Mining and its silver exposure as a way to do that.

This helps explain why SSR Mining's stock price has been tracking more closely with silver prices than with gold prices. The recent pullback in SSR Mining's shares is simply a consequence of its silver exposure.

SSRM data by YCharts

Should you buy SSR Mining on its pullback?

Given how closely SSR Mining's stock has been tracking silver prices, investors should buy only if they believe silver will resume its upward climb. That, however, is a hard call to make, given the metal's historical volatility, which tends to go through even more dramatic price swings than gold.

In fact, after such a large run for silver and SSR Mining's stock, which is still higher by more than 150% over the past 12 months, caution is probably advisable. SSR Mining isn't a bad business, but investor sentiment may be driving the stock more than its fundamentals right now.

Which is, perhaps, unfortunate, because SSR Mining is using the cash flows it is generating from high gold and silver prices to build for the future. It has seven material projects in the works that should help to enhance its production in the years ahead. And it has around $1 billion in liquidity to keep those projects moving forward. However, with the market's current focus on commodity price movements, positives like these are going to have a hard time shining through.

Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.