SSR Mining Extends Marigold Complex Life to 20 Years, Expects 2026 Costs to Exceed Guidance by 10%
Key Facts
On November 3, SSR Mining announced a plan extending the operating life of the Marigold complex to 20 years, as it expects consolidated all-in sustaining costs for fiscal 2026 to exceed the upper end of guidance by about 10%. The company said consolidated production remains on track to meet annual guidance, while cost pressures raise spending risks. The life-of-mine estimate includes 15 years of active mining, followed by five years of processing leach pad stockpiles. The announcement therefore combines a longer operating horizon for the asset with a negative revision to the group’s cost outlook. The plan covers the Marigold complex and the Buffalo Valley extension as part of a long-term mining and processing outlook.
SSR Mining estimates Marigold’s gold mineral reserves at 4.6 million ounces, up 43% from 3.2 million ounces at the end of 2025. The plan sets average annual production at 231,000 ounces from 2027 to 2031, then about 201,000 ounces a year through 2040. Total expected gold production over the mine life is 3.3 million ounces, at an average all-in sustaining cost of $2,062 per ounce sold. These figures show the scale of production and reserves underpinning the extended plan, while the projected average cost remains a key factor in assessing its economics. The longer mine life does not mean active mining will continue for all 20 years, as the final five years include processing accumulated stockpiles.
In a separate valuation estimate, the company puts after-tax net present value at about $3.3 billion at a 5% discount rate, based on an average consensus gold price of $3,948 per ounce over the 20-year plan. This figure reflects the gold price assumption used in the valuation, not a realized price or a guarantee of returns. The company also expects to invest $542 million in growth capital over the mine life. Spending includes development of Buffalo Valley and a dedicated leach facility for the project, as well as additions to the mining fleet. The plan thus links the asset’s expansion in scope with funding for capital developments over the implementation period.
As for the 2026 cost overrun target, the company said it is about 10% above the upper end of guidance, rather than a general comparison with previous forecasts. Management attributed about half of the expected increase to changes in the mining plan at Puna and the rescheduling of production there. It said the remaining pressure comes from higher royalties linked to higher gold and silver prices, and continued diesel price pressure on unhedged consumption. It added that inflation in labor and consumables costs is contributing to the increase. These factors show that the cost outlook revision stems from multiple operations and inputs, rather than Marigold alone.
Marigold’s quarterly results provide recent operating context for the plan: the mine produced 29,135 ounces of gold in the third quarter of 2026, compared with 36,273 ounces in the same period of 2025. All-in sustaining costs were $2,714 per payable ounce in the third quarter. The comparison puts recent production below its level a year earlier, alongside a quarterly cost above the estimated average over the mine life. The two figures differ in scope and period: the first is a cost per payable ounce for one quarter, while the second is a projected average per ounce sold over the life of the plan. Operating performance therefore needs to be read in light of the period and measure used.
The plan includes the Buffalo Valley project, with gold reserves of 0.7 million ounces and production expected to begin in 2029. That timing places the project among the expansion components requiring development before adding production to the complex. In the November 3 session, SSR Mining shares closed at $26.20, down 2.02% from the previous close, then fell to $24.95 in after-hours trading. The share move coincided with the release of third-quarter results and the cost overrun outlook, while the plan also includes $542 million in growth capital investment over the mine life. Management said official 2027 guidance will be issued in February, and diesel costs will remain an important variable in preparing it.