SSR MINING INC.SSRM
SSR MINING INC. Fair Value Disclosure
FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS
Fair value accounting establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below:
Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;
Level 2 - Quoted prices in markets that are not active, quoted prices for similar assets or liabilities in active markets, quoted prices or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability and model-based valuation techniques (e.g. the Black-Scholes model) for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and
Level 3 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).
As required by accounting guidance, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following tables set forth the Company’s assets and liabilities measured at fair value on a recurring (at least annually) and nonrecurring basis by level within the fair value hierarchy (in thousands).
Fair value at December 31, 2025 | |||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||||
| Assets: | |||||||||||||||||||||||||||||||||||
Cash | $ | 534,834 | $ | — | $ | — | $ | 534,834 | |||||||||||||||||||||||||||
Marketable securities (1) | 40,779 | — | — | 40,779 | |||||||||||||||||||||||||||||||
Trade receivables from provisional sales, net (2) | — | 89,996 | — | 89,996 | |||||||||||||||||||||||||||||||
Deferred consideration | — | — | 27,755 | 27,755 | |||||||||||||||||||||||||||||||
| $ | 575,613 | $ | 89,996 | $ | 27,755 | $ | 693,364 | ||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||
Contingent consideration | $ | — | $ | — | $ | 192,981 | $ | 192,981 | |||||||||||||||||||||||||||
| — | 1,202 | — | 1,202 | ||||||||||||||||||||||||||||||||
| $ | — | $ | 1,202 | $ | 192,981 | $ | 194,183 | ||||||||||||||||||||||||||||
1)Marketable securities of publicly quoted companies, consisting of investments, are valued using a market approach based upon unadjusted quoted prices in an active market obtained from securities exchanges.
2)The Company’s provisional metal sales contracts, included in Trade and other receivables in the Consolidated Balance Sheets, are valued using inputs derived from observable market data, including quoted commodity forward prices. The inputs do not involve significant management judgment. Such instruments are classified within Level 2 of the fair value hierarchy.
Fair value at December 31, 2024 | |||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||||||
| Assets: | |||||||||||||||||||||||||||||||||||
Cash | $ | 387,882 | $ | — | $ | — | $ | 387,882 | |||||||||||||||||||||||||||
Marketable securities (1) | 34,631 | — | — | 34,631 | |||||||||||||||||||||||||||||||
Trade receivables from provisional sales, net (2) | — | 78,687 | — | 78,687 | |||||||||||||||||||||||||||||||
Deferred consideration | — | — | 26,383 | 26,383 | |||||||||||||||||||||||||||||||
| $ | 422,513 | $ | 78,687 | $ | 26,383 | $ | 527,583 | ||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||||||
Contingent consideration | $ | — | $ | — | $ | 29,642 | $ | 29,642 | |||||||||||||||||||||||||||
Other | — | 68 | — | 68 | |||||||||||||||||||||||||||||||
| $ | — | $ | 68 | $ | 29,642 | $ | 29,710 | ||||||||||||||||||||||||||||
1)Marketable securities of publicly quoted companies, consisting of investments, are valued using a market approach based upon unadjusted quoted prices in an active market obtained from securities exchanges.
2)The Company’s provisional metal sales contracts, included in Trade and other receivables in the Consolidated Balance Sheets, are valued using inputs derived from observable market data, including quoted commodity forward prices. The inputs do not involve significant management judgment. Such instruments are classified within Level 2 of the fair value hierarchy.
The following tables set forth a summary of the quantitative and qualitative information related to the significant observable and unobservable inputs used in the calculation of the Company’s Level 3 financial assets and liabilities (in thousands):
| Description | December 31, 2025 | Valuation technique | Significant input | Range, point estimate or average | |||||||||||||||||||||||||
Deferred consideration (1) | $ | 27,755 | Discounted cash flow | Discount rate | 8.5% - 12.5% | ||||||||||||||||||||||||
Contingent consideration (2)(3) | $ | 192,981 | Discounted cash flow | Discount rate | 5.7% - 6.0% | ||||||||||||||||||||||||
Probability | 10.0% - 100.0% | ||||||||||||||||||||||||||||
Description | December 31, 2024 | Valuation technique | Significant input | Range, point estimate or average | |||||||||||||||||||||||||
Deferred consideration (1) | $ | 26,383 | Discounted cash flow | Discount rate | 8.5% - 12.5% | ||||||||||||||||||||||||
Contingent consideration (2) | $ | 29,642 | Discounted cash flow | Discount rate | 6.0% | ||||||||||||||||||||||||
Probability | 10.0% | ||||||||||||||||||||||||||||
1)The Company's deferred consideration assets consist of the contingent payment associated with completion of certain project milestones related to the Yenipazar royalty included in the Royalty Portfolio sale and the contingent payment associated with the completion of certain project milestones at the San Luis project.
2)The Company's contingent consideration liabilities include the contingent consideration tied to completion of operational milestones and delineation of new reserves at the Hod Maden project (refer to Note 3 for further information). The fair value of the $30.0 million in milestone payments payable to Lidya Mines in accordance with an agreed upon schedule beginning at the start of construction and ending on the first anniversary of commercial production was $26.0 million and $25.2 million as of December 31, 2025 and 2024, respectively. The fair value of the contingent consideration tied to completion of operational milestones was determined using a discounted cash flow model. The fair value of the $84.0 million payable to Lidya Mines upon the delineation of an additional 500,000 gold equivalent ounces of mineral reserves at the Hod Maden project in excess of the project's current mineral reserves and resources was $4.7 million and $4.4 million at December 31, 2025 and 2024, respectively.
3)The Company’s contingent consideration liabilities include contingent consideration tied to final approval of the application to amend the CC&V Cresson Permit and obtaining regulatory relief related to flow-related permitting requirements for the Carlton Tunnel, including steps taken to achieve the highest feasible alternative in relation to Carlton Tunnel water flow. The fair value of the $87.5 million contingent payment payable to Newmont upon final approval of the application to amend the CC&V Cresson Permit is $75.6 million as of December 31, 2025. The fair value of the $87.5 million contingent payment payable to Newmont upon obtaining regulatory relief related to flow-related permitting requirements for the Carlton Tunnel is $86.6 million as of December 31, 2025.
Deferred and contingent consideration are included in Level 3 as certain assumptions used in the calculation of the fair value are not based on observable market data. The following table reconciles the beginning and ending balances for financial instruments that are recognized at fair value using significant unobservable inputs (Level 3) in the consolidated financial statements (in thousands):
| 2025 | 2024 | ||||||||||||||||
| Deferred consideration assets: | |||||||||||||||||
| Balance as of January 1 | $ | 26,383 | $ | 21,213 | |||||||||||||
| Revaluations | 2,622 | 2,792 | |||||||||||||||
Receipt of deferred consideration | (1,250) | — | |||||||||||||||
Additions | — | 2,378 | |||||||||||||||
Balance as of December 31 | $ | 27,755 | $ | 26,383 | |||||||||||||
| 2025 | 2024 | ||||||||||||||||
Contingent consideration liabilities: | |||||||||||||||||
Balance as of January 1 | $ | 29,642 | $ | 29,648 | |||||||||||||
Assumption of contingent consideration | 141,764 | — | |||||||||||||||
Revaluations | 21,575 | (6) | |||||||||||||||
Balance as of December 31 | $ | 192,981 | $ | 29,642 | |||||||||||||
Fair values of financial assets and liabilities not already measured at fair value
The fair value of the 2019 Notes as compared to the carrying amounts were as follows:
| December 31, | |||||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | ||||||||||||||||||||||||||||||||||||||||
| Level | Carrying amount | Fair value | Carrying amount | Fair value | |||||||||||||||||||||||||||||||||||||
2019 Notes (1) | 1 | $ | 229,640 | $ | 300,677 | $ | 228,572 | $ | 220,292 | ||||||||||||||||||||||||||||||||
(1)The fair value disclosed for the Company's 2019 Notes is included in Level 1 as the basis of valuation uses a quoted price in an active market.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 17, 2026 | Showing above |
| 2024 | Feb 18, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Feb 22, 2023 | |
| 2021 | Feb 23, 2022 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.