SSR cashes in on $2.6bn Alacer takeover to form huge gold producer


Alacer Gold has merged with Canada’s SSR Mining through a $2.6 billion buyout deal, capitalising on a global surge in gold prices.

The merger will continue under the SSR Mining name, with combined value of the companies is estimated to be US$4 billion ($6.17 billion).

The new SSR is set to have a three-year average yearly production profile of 780,000 ounces of gold through assets located in the United States, Canada, Argentina and Turkey.

Alacer’s flagship Çöpler Gold Mine in Turkey, which produced 391,213 ounces of gold in 2019.

After selling its Australian based gold mines in 2013, Alacer has remained listed on the Australian Stock Exchange (ASX).

“The combination of Alacer and SSR Mining will create a diversified portfolio of high quality, long-life mines across four mining-friendly jurisdictions,” Alacer president and chief executive officer said.

“Our focus at Alacer over the past several years has been on generating peer-leading free cash flow – this merger allows us to continue this strategy while diversifying our single operating asset exposure.

“In addition, the increased financial strength of the combined business will allow us to leverage the proven project execution capabilities of the combined management.”

At closing, SSR Mining and Alacer shareholders are estimated to own 57 per cent and 43 per cent of SSR Mining respectively.

Upon completion of the transaction, the board will consist of five current SSR Mining and Alacer boards of directors.

“The zero-premium merger of SSR Mining and Alacer creates an exciting leading intermediate gold producer with exceptional financial strength, robust margins, strong cash flow generation, and long mine lives that will be run by highly experienced management with a track record of value creation,” SSR Mining president and chief executive officer Paul Benson said

“The new SSR Mining will be well positioned to build on the strong foundation of both companies to continue growing and delivering value for all shareholders.”

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