Why SSR Mining Stock Dropped Today
2026-09-28 16:28
•Rich Smith •The Motley Fool
•••••• • Axe Cap view
Gold Stocks Take a Hit as Rates Rise
SSR Mining's share price fell sharply after gold prices tumbled on bond yield worries.
Gold bears the brunt when interest rates climb. Rising oil prices have spiked inflation concerns, pushing central banks to signal higher rates. This makes government bonds more appealing because they pay interest, unlike gold, which produces no yield. SSR Mining’s stock fell 4.4% following a nearly 4% drop in gold prices. BMO Capital’s cut to its target price—from $41 to an unspecified lower level—reflects this sentiment shift. Despite this, SSRM holds a strong cash position with $1.8 billion and positive free cash flow. That financial flexibility means it can weather short-term headwinds better than many peers. South African investors should watch AngloGold Ashanti, which usually moves in tandem with gold and could see similar pressure. At the same time, rand strength tends to soften commodity earnings in ZAR terms, so USD/ZAR weakness would add stress. If inflation cools or rates settle faster than expected, gold and these shares might rebound sooner than markets currently price. this is just our opinion and not financial advice
Avoid buying gold miners like SSR Mining and AngloGold Ashanti for now. Wait until interest rate moves stabilize and gold shows signs of support before increasing exposure.
- SSRM
- AngloGold Ashanti
- USD/ZAR
- Inflation surprises keep gold supported
- Rand weakness cushions miner earnings
6/10
SSR Mining stock fell 4.4% after gold prices dropped 3.9% due to rising oil prices and inflation concerns. Higher expected interest rates make bonds more attractive than gold, pressuring both the commodity and the stock. However, the analyst notes SSR Mining's strong financial position with positive free cash flow and $1.8 billion in cash may support a recovery.
Our take is based on reporting first published by The Motley Fool.