SSR Mining Reports Second Quarter 2023 Results
- The company's consolidated gold equivalent production of 156,625 ounces and adjusted attributable net income of $75.1 million demonstrate strong financial performance.
- SSR Mining's acquisition of a 40% ownership interest in the Hod Maden Gold-copper Project presents a significant growth opportunity.
- The declaration of a quarterly cash dividend of $0.07 per share reflects the company's commitment to returning value to its shareholders.
- The company's cost of sales and AISC per gold equivalent ounce remain within guidance, indicating efficient cost management.
- None.
Second Quarter 2023 Highlights (1)
-
Attributable and Adjusted Attributable Diluted Earnings Per Share of
$0.35 $0.35 -
Quarterly Production of 156,625 Gold Equivalent Ounces at Cost of Sales of
$1,155 $1,633 -
Year-to-date Production of 303,518 Gold Equivalent Ounces at Cost of Sales of
$1,224 $1,663 -
Quarterly Operating Cash Flow and Free Cash Flow of
$80.3 Million $22.4 Million -
Quarterly Operating Cash Flow and Free Cash Flow Before Working Capital Adjustments of
$104.3 Million $46.3 Million -
Repurchased 2.7 Million Shares for
$40.1 Million $74 Million 3.4% - Announced New Normal Course Issuer Bid (“NCIB”) Enabling the Company to Repurchase up to 10,200,000 Shares Through June 19, 2024
- Commenced Waste Stripping at the Çakmaktepe Extension Project; First Production on Track Within 2023
-
Acquired an up to
40% Ownership Interest and Operatorship in the World-class Hod Maden Gold-copper Project, Targeting a Construction Decision in 2024 and First Production in 2027 - Published Fifth Annual ESG and Sustainability Report
Rod Antal, Executive Chairman of SSR Mining, said, “As we close the first half of 2023, our consolidated operating and financial results have generally been well aligned to our initial expectations with output from Çöpler, Marigold and Puna partially offsetting the slower start to the year at Seabee. In the second half of the year, we expect all four of our operations to deliver improved consolidated production of approximately four hundred thousand gold equivalent ounces at reduced costs, resulting in strong free cash flow generation. While we are tracking to the lower end of our consolidated production guidance as a result of Seabee’s year-to-date performance, it is pleasing to see the mine positioned for an improved second half, particularly as production levels and grades improved in July.
Given our expectations for a strong second half of 2023, we have been very active with our capital returns program, repurchasing over
From a growth perspective, we continue to advance technical work to support anticipated updated life of mine plans at Çöpler and Marigold. In addition, we initiated waste stripping activities at Çakmaktepe Extension and remain on track for first gold production from the project within the year. Finally, at Hod Maden, initial site preparation activities are currently underway and we continue to expect an updated technical report and construction decision for the project in 2024. Overall, SSR Mining remains in a position of strength, supported by a significant cash position, key growth catalysts and the tailwind of improving production and free cash flow into the end of 2023.”
| ______________________________ |
(1) The Company reports non-GAAP financial measures including adjusted attributable net income, adjusted attributable net income per share, cash generated by operating activities before working capital adjustments, free cash flow, free cash flow before changes in working capital, total cash, net cash (debt), cash costs and AISC per ounce sold (a common measure in the mining industry), to manage and evaluate its operating performance at its mines. See "Cautionary Note Regarding Non-GAAP Financial Measures" for an explanation of these financial measures and a reconciliation of these financial measures to the most comparable GAAP financial measures. |
Second Quarter 2023 Highlights: (1)
(All figures are in
-
Operating performance tracking well against full-year guidance: The Company delivered second quarter 2023 production of 156,625 gold equivalent ounces at cost of sales of
$1,155 $1,633 $1,224 $1,663 $1,055 $1,115 $1,365 $1,425 -
Strong financial results: Attributable net income in the second quarter of 2023 was
$74.9 million $0.35 $75.1 million $0.35 $25.1 million $104.7 million $0.49 $96.4 million $0.45 $80.3 million $104.3 million $22.4 million $46.3 million -
Continued delivery of peer-leading capital returns: During the second quarter of 2023, the Board declared a quarterly cash dividend of
$0.07 $14.97 $54.5 million $14.3 million $40.1 million $102.6 million 3.4% yield, which includes a total of 3,026,993 shares repurchased in the first half of 2023 for$45.3 million 5.0% of SSR Mining’s total issued and outstanding common shares. -
Balance sheet continues to support growth initiatives: As of June 30, 2023, SSR Mining had a total cash balance of
$412.8 million $120 million $147.3 million $712.8 million -
Acquired an up to
40% ownership interest and operatorship in the Hod Maden Gold-Copper project: In the second quarter of 2023, the Company announced the acquisition of an up to40% interest and immediate operational control in the Hod Maden gold-copper development project (“Hod Maden”) in northeastern Türkiye from Lidya Mines. Aggregate acquisition consideration totals$270 million $120 million 10% interest in Hod Maden, followed by$150 million 30% interest, payable between the start of construction and the first anniversary of commercial production. The acquisition of Hod Maden adds one of the highest margin and lowest capital intensity development projects globally to SSR Mining’s robust portfolio of high-return growth projects and leverages SSR Mining’s significant experience in Türkiye. -
Çöpler sulfide plant continues to deliver solid performance; Çakmaktepe Extension on track for first production in 2023: Gold production was 52,031 ounces in the second quarter of 2023 at cost of sales of
$1,117 $1,384 55% weighted to the fourth quarter reflecting the maintenance shutdown in the third quarter. -
Strong quarterly production at Marigold: Gold production was 60,443 ounces in the second quarter of 2023 at cost of sales of
$1,059 $1,656 $64 million $81 million -
Production improves at Seabee: Gold production was 16,428 ounces in the second quarter of 2023 at cost of sales of
$1,192 $1,690 -
Puna continues to deliver strong performance: Silver production was 2.3 million ounces in the second quarter of 2023 at cost of sales of
$18.02 $17.41 - ESG and Sustainability Report: On April 14, 2023, the Company published its fifth annual ESG and Sustainability Report. The report provided a comprehensive overview of how SSR Mining manages sustainability across its business, detailed specific achievements from 2022 as well as outlined the commitments the Company made for 2023.
Financial and Operating Highlights
A summary of the Company's consolidated financial and operating results for the three and six months ended June 30, 2023 and June 30, 2022 are presented below:
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
(in thousands of US dollars, except per share data) |
|
June 30, |
|
June 30, |
||||||||||||
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
||||
Financial Results |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Revenue |
|
$ |
301,026 |
|
$ |
319,583 |
|
$ |
615,640 |
|
$ |
675,029 |
||||
Cost of sales |
|
$ |
170,640 |
|
$ |
164,928 |
|
$ |
369,937 |
|
$ |
318,448 |
||||
Operating income |
|
$ |
52,929 |
|
$ |
70,095 |
|
$ |
89,914 |
|
$ |
185,965 |
||||
Net income |
|
$ |
122,376 |
|
$ |
67,519 |
|
$ |
151,380 |
|
$ |
143,625 |
||||
Net income attributable to SSR Mining shareholders |
|
$ |
74,866 |
|
$ |
58,488 |
|
$ |
104,679 |
|
$ |
126,051 |
||||
Basic net income per share attributable to SSR Mining shareholders |
|
$ |
0.37 |
|
$ |
0.28 |
|
$ |
0.51 |
|
$ |
0.59 |
||||
Diluted net income per share attributable to SSR Mining shareholders |
|
$ |
0.35 |
|
$ |
0.27 |
|
$ |
0.49 |
|
$ |
0.57 |
||||
Adjusted attributable net income (2) |
|
$ |
75,103 |
|
$ |
66,800 |
|
$ |
96,376 |
|
$ |
132,742 |
||||
Adjusted basic attributable net income per share (2) |
|
$ |
0.37 |
|
$ |
0.31 |
|
$ |
0.47 |
|
$ |
0.62 |
||||
Adjusted diluted attributable net income per share (2) |
|
$ |
0.35 |
|
$ |
0.30 |
|
$ |
0.45 |
|
$ |
0.60 |
||||
|
|
|
|
|
|
|
|
|
|
|
||||||
Cash generated by operating activities before changes in working capital (2) |
|
$ |
104,265 |
|
$ |
105,602 |
|
$ |
195,134 |
|
$ |
236,369 |
||||
Cash generated by operating activities |
|
$ |
80,343 |
|
$ |
32,838 |
|
$ |
83,310 |
|
$ |
95,025 |
||||
Cash used in investing activities |
|
$ |
(179,860) |
|
$ |
(29,860) |
|
$ |
(231,741) |
|
$ |
(57,745) |
||||
Cash used in financing activities |
|
$ |
(72,945) |
|
$ |
(63,234) |
|
$ |
(111,134) |
|
$ |
(116,683) |
||||
|
|
|
|
|
|
|
|
|
|
|
||||||
Operating Results |
|
|
|
|
|
|
|
|
|
|
||||||
Gold produced (oz) |
|
|
|
128,902 |
|
|
|
135,500 |
|
|
|
251,723 |
|
|
|
292,510 |
Gold sold (oz) |
|
|
|
124,916 |
|
|
|
146,329 |
|
|
|
251,027 |
|
|
|
303,508 |
Silver produced ('000 oz) |
|
|
|
2,269 |
|
|
|
1,967 |
|
|
|
4,284 |
|
|
|
3,270 |
Silver sold ('000 oz) |
|
|
|
1,857 |
|
|
|
1,771 |
|
|
|
4,238 |
|
|
|
3,532 |
Lead produced ('000 lb) (3) |
|
|
|
10,193 |
|
|
|
8,889 |
|
|
|
21,554 |
|
|
|
16,192 |
Lead sold ('000 lb) (3) |
|
|
|
9,805 |
|
|
|
8,874 |
|
|
|
23,175 |
|
|
|
19,087 |
Zinc produced ('000 lb) (3) |
|
|
|
1,748 |
|
|
|
1,507 |
|
|
|
4,227 |
|
|
|
3,350 |
Zinc sold ('000 lb) (3) |
|
|
|
1,033 |
|
|
|
1,367 |
|
|
|
4,720 |
|
|
|
4,495 |
|
|
|
|
|
|
|
|
|
|
|
||||||
Gold equivalent produced (oz) (3) |
|
|
|
156,625 |
|
|
|
159,262 |
|
|
|
303,518 |
|
|
|
333,201 |
Gold equivalent sold (oz) (3) |
|
|
|
147,705 |
|
|
|
167,201 |
|
|
|
302,262 |
|
|
|
346,893 |
|
|
|
|
|
|
|
|
|
|
|
||||||
Average realized gold price ($/oz sold) |
|
$ |
1,963 |
|
$ |
1,861 |
|
$ |
1,932 |
|
$ |
1,870 |
||||
Average realized silver price ($/oz sold) |
|
$ |
24.61 |
|
$ |
19.64 |
|
$ |
23.92 |
|
$ |
21.75 |
||||
|
|
|
|
|
|
|
|
|
|
|
||||||
Cost of sales per gold equivalent ounce sold (4) |
|
$ |
1,155 |
|
$ |
986 |
|
$ |
1,224 |
|
$ |
918 |
||||
Cash cost per gold equivalent ounce sold (2, 4) |
|
$ |
1,108 |
|
$ |
933 |
|
$ |
1,157 |
|
$ |
851 |
||||
AISC per gold equivalent ounce sold (2, 4) |
|
$ |
1,633 |
|
$ |
1,267 |
|
$ |
1,663 |
|
$ |
1,177 |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Financial Position |
|
June 30, 2023 |
|
December 31, 2022 |
||||||||||||
Cash and cash equivalents |
|
$ |
|
|
379,243 |
|
$ |
|
|
655,453 |
||||||
Current assets |
|
$ |
|
|
1,155,380 |
|
$ |
|
|
1,376,435 |
||||||
Total assets |
|
$ |
|
|
5,739,479 |
|
$ |
|
|
5,254,657 |
||||||
Current liabilities |
|
$ |
|
|
203,677 |
|
$ |
|
|
279,252 |
||||||
Total liabilities |
|
$ |
|
|
1,127,751 |
|
$ |
|
|
1,128,458 |
||||||
Working capital (5) |
|
$ |
|
|
951,703 |
|
$ |
|
|
1,097,183 |
||||||
(2) The Company reports non-GAAP financial measures including adjusted attributable net income, adjusted attributable net income per share, cash generated by operating activities before changes in working capital, cash costs and AISC per ounce sold to manage and evaluate its operating performance at its mines. See “Non-GAAP Financial Measures” at the end of this press release for an explanation of these financial measures and a reconciliation of these financial measures to net income, cost of sales, and cash generated by operating activities, which are the most comparable GAAP financial measures. Cost of sales excludes depreciation, depletion, and amortization. |
||||||||||||||||
(3) Data for lead production and sales relate only to lead in lead concentrate. Data for zinc production and sales relate only to zinc in zinc concentrate. |
||||||||||||||||
(4) Gold equivalent ounces are calculated multiplying the silver ounces by the ratio of the silver price to the gold price, using the average London Bullion Market Association (“LBMA”) prices for the period. The Company does not include by-products in the gold equivalent ounce calculations. |
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(5) Working capital is defined as current assets less current liabilities. |
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Çöpler, Türkiye |
||||||||||||
(amounts presented on |
||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||
|
|
June 30, |
|
June 30, |
||||||||
Operating Data |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||
Gold produced (oz) |
|
|
52,031 |
|
|
51,390 |
|
|
107,105 |
|
|
122,030 |
Gold sold (oz) |
|
|
49,197 |
|
|
57,846 |
|
|
107,211 |
|
|
130,271 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Ore mined (kt) |
|
|
1,184 |
|
|
674 |
|
|
2,363 |
|
|
1,685 |
Waste removed (kt) |
|
|
4,841 |
|
|
6,173 |
|
|
10,216 |
|
|
11,308 |
Total material mined (kt) |
|
|
6,025 |
|
|
6,847 |
|
|
12,579 |
|
|
12,993 |
Strip ratio |
|
|
4.1 |
|
|
9.2 |
|
|
4.3 |
|
|
6.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Ore stacked (kt) |
|
|
154 |
|
|
148 |
|
|
342 |
|
|
210 |
Gold grade stacked (g/t) |
|
|
1.46 |
|
|
0.90 |
|
|
1.33 |
|
|
0.87 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Ore milled (kt) |
|
|
680 |
|
|
611 |
|
|
1,404 |
|
|
1,256 |
Gold mill feed grade (g/t) |
|
|
2.34 |
|
|
2.55 |
|
|
2.40 |
|
|
2.95 |
Gold recovery (%) |
|
|
89.1 |
|
|
87.2 |
|
|
88.4 |
|
|
87.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average realized gold price ($/oz sold) |
|
$ |
1,979 |
|
$ |
1,863 |
|
$ |
1,934 |
|
$ |
1,869 |
Cost of sales ($/oz gold sold) |
|
$ |
1,117 |
|
$ |
1,091 |
|
$ |
1,209 |
|
$ |
965 |
Cash costs ($/oz gold sold) (6) |
|
$ |
1,107 |
|
$ |
1,078 |
|
$ |
1,196 |
|
$ |
948 |
AISC ($/oz gold sold) (6) |
|
$ |
1,384 |
|
$ |
1,253 |
|
$ |
1,404 |
|
$ |
1,087 |
(6) The Company reports the non-GAAP financial measures of cash costs and AISC per ounce of gold sold to manage and evaluate operating performance at Çöpler. See "Non-GAAP Financial Measures" for an explanation of these financial measures and a reconciliation to cost of sales, which are the comparable GAAP financial measure. Cost of sales excludes depreciation, depletion, and amortization. |
||||||||||||
For the three months ended June 30, 2023 and 2022, Çöpler produced 52,031 and 51,390 ounces of gold, respectively. For the six months ended June 30, 2023 and 2022, Çöpler produced 107,105 and 122,030 ounces of gold, respectively. Gold sold was less than gold produced during the three months ended June 30, 2023 as a result of timing of sales due to Turkish holiday closures during the last week of the quarter, which resulted in a buildup of finished goods inventory. Second quarter 2023 cost of sales of
Planned maintenance in the Çöpler sulfide plant will be completed in the third quarter of 2023, and no further maintenance is planned until 2024. The Çakmaktepe Extension project remains on track to achieve first production within 2023, with initial waste stripping activities underway. Technical work for the Çöpler expansion project continues to advance, including updated Mineral Reserves and Mineral Resources, and an updated technical report. In the second half of 2023, Çöpler’s production profile is expected to be 50 to
Marigold, |
||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||
|
|
June 30, |
|
June 30, |
||||||||
Operating Data |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||
Gold produced (oz) |
|
|
60,443 |
|
|
45,769 |
|
|
112,422 |
|
|
79,557 |
Gold sold (oz) |
|
|
60,389 |
|
|
45,983 |
|
|
111,686 |
|
|
82,937 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Ore mined (kt) |
|
|
5,042 |
|
|
4,100 |
|
|
10,409 |
|
|
8,920 |
Waste removed (kt) |
|
|
15,648 |
|
|
20,576 |
|
|
32,678 |
|
|
40,364 |
Total material mined (kt) |
|
|
20,690 |
|
|
24,676 |
|
|
43,086 |
|
|
49,284 |
Strip ratio |
|
|
3.1 |
|
|
5.0 |
|
|
3.1 |
|
|
4.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Ore stacked (kt) |
|
|
5,042 |
|
|
4,100 |
|
|
10,409 |
|
|
8,920 |
Gold grade stacked (g/t) |
|
|
0.52 |
|
|
0.67 |
|
|
0.47 |
|
|
0.52 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average realized gold price ($/oz sold) |
|
$ |
1,950 |
|
$ |
1,857 |
|
$ |
1,933 |
|
$ |
1,860 |
Cost of sales costs ($/oz gold sold) |
|
$ |
1,059 |
|
$ |
1,097 |
|
$ |
1,061 |
|
$ |
1,075 |
Cash costs ($/oz gold sold) (7) |
|
$ |
1,063 |
|
$ |
1,099 |
|
$ |
1,065 |
|
$ |
1,076 |
AISC ($/oz gold sold) (7) |
|
$ |
1,656 |
|
$ |
1,458 |
|
$ |
1,659 |
|
$ |
1,505 |
(7) The Company reports the non-GAAP financial measures of cash costs and AISC per ounce of gold sold to manage and evaluate operating performance at Marigold. See "Non-GAAP Financial Measures" for an explanation of these financial measures and a reconciliation to cost of sales, which are the comparable GAAP financial measure. Cost of sales excludes depreciation, depletion, and amortization. |
||||||||||||
For the three months ended June 30, 2023 and 2022, Marigold produced 60,443 and 45,769 ounces of gold, respectively. Higher production for the three months ended June 30, 2023, as compared to the prior year, is attributable to more tonnes stacked and the timing of leach recoveries. For the six months ended June 30, 2023 and 2022, Marigold produced 112,422 and 79,557 ounces of gold, respectively. Second quarter 2023 cost of sales of
With the mine stacking more typical ore in 2023, leach cycles have now returned to normal and no further delays to gold recovery are expected going forward. The sustaining capital spent year-to-date was primarily allocated to the purchase of four new haul trucks that will be used to support waste stripping activities. Marigold remains on track for its
Seabee, |
||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||
|
|
June 30, |
|
June 30, |
||||||||
Operating Data |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||
Gold produced (oz) |
|
|
16,428 |
|
|
38,341 |
|
|
32,196 |
|
|
90,923 |
Gold sold (oz) |
|
|
15,330 |
|
|
42,500 |
|
|
32,130 |
|
|
90,300 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Ore mined (kt) |
|
|
119 |
|
|
97 |
|
|
218 |
|
|
199 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Ore milled (kt) |
|
|
105 |
|
|
99 |
|
|
218 |
|
|
194 |
Gold mill feed grade (g/t) |
|
|
5.25 |
|
|
12.06 |
|
|
4.91 |
|
|
14.85 |
Gold recovery (%) |
|
|
96.9 |
|
|
98.0 |
|
|
96.5 |
|
|
98.4 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average realized gold price ($/oz sold) |
|
$ |
1,960 |
|
$ |
1,862 |
|
$ |
1,931 |
|
$ |
1,882 |
Cost of sales ($/oz gold sold) |
|
$ |
1,192 |
|
$ |
447 |
|
$ |
1,293 |
|
$ |
392 |
Cash costs ($/oz gold sold) (8) |
|
$ |
1,192 |
|
$ |
449 |
|
$ |
1,294 |
|
$ |
394 |
AISC ($/oz gold sold) (8) |
|
$ |
1,690 |
|
$ |
628 |
|
$ |
1,960 |
|
$ |
611 |
(8) The Company reports the non-GAAP financial measures of cash costs and AISC per ounce of gold sold to manage and evaluate operating performance at Seabee. See "Non-GAAP Financial Measures" for an explanation of these financial measures and a reconciliation to cost of sales, which are the comparable GAAP financial measure. Cost of sales excludes depreciation, depletion, and amortization. |
||||||||||||
For the three months ended June 30, 2023 and 2022, Seabee produced 16,428 and 38,341 ounces of gold, respectively. Lower production for the three months ended June 30, 2023, as compared to the prior year, is attributable to lower grades mined and processed as Seabee continued to rebound from unplanned maintenance downtime in the first quarter of 2023. For the six months ended June 30, 2023 and 2022, Seabee produced 32,196 and 90,923 ounces of gold, respectively. Second quarter 2023 cost of sales of
As guided, sustaining capital spend at Seabee was concentrated in the first half of the year as a result of the winter road season. Processed grades improved in July, positioning Seabee for a stronger second half of 2023.
Puna, |
||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||
|
|
June 30, |
|
June 30, |
||||||||
Operating Data |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||
Silver produced ('000 oz) |
|
|
2,269 |
|
|
1,967 |
|
|
4,284 |
|
|
3,270 |
Silver sold ('000 oz) |
|
|
1,857 |
|
|
1,771 |
|
|
4,238 |
|
|
3,532 |
Lead produced ('000 lb) |
|
|
10,193 |
|
|
8,889 |
|
|
21,554 |
|
|
16,192 |
Lead sold ('000 lb) |
|
|
9,805 |
|
|
8,874 |
|
|
23,175 |
|
|
19,087 |
Zinc produced ('000 lb) |
|
|
1,748 |
|
|
1,507 |
|
|
4,227 |
|
|
3,350 |
Zinc sold ('000 lb) |
|
|
1,033 |
|
|
1,367 |
|
|
4,720 |
|
|
4,495 |
Gold equivalent sold ('000 oz) (9) |
|
|
22,789 |
|
|
20,872 |
|
|
51,235 |
|
|
43,385 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Ore mined (kt) |
|
|
510 |
|
|
505 |
|
|
859 |
|
|
852 |
Waste removed (kt) |
|
|
1,524 |
|
|
2,311 |
|
|
3,508 |
|
|
4,389 |
Total material mined (kt) |
|
|
2,034 |
|
|
2,816 |
|
|
4,367 |
|
|
5,241 |
Strip ratio |
|
|
3.0 |
|
|
4.6 |
|
|
4.1 |
|
|
5.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Ore milled (kt) |
|
|
419 |
|
|
419 |
|
|
834 |
|
|
792 |
Silver mill feed grade (g/t) |
|
|
175.5 |
|
|
152.4 |
|
|
166.5 |
|
|
137.7 |
Lead mill feed grade (%) |
|
|
1.18 |
|
|
1.01 |
|
|
1.25 |
|
|
1.02 |
Zinc mill feed grade (%) |
|
|
0.36 |
|
|
0.33 |
|
|
0.40 |
|
|
0.37 |
Silver mill recovery (%) |
|
|
96.1 |
|
|
95.6 |
|
|
96.0 |
|
|
95.4 |
Lead mill recovery (%) |
|
|
93.4 |
|
|
92.9 |
|
|
93.9 |
|
|
92.3 |
Zinc mill recovery (%) |
|
|
52.7 |
|
|
41.7 |
|
|
57.8 |
|
|
46.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Average realized silver price ($/oz sold) |
|
$ |
24.61 |
|
$ |
19.64 |
|
$ |
23.92 |
|
$ |
21.75 |
Cost of sales ($/oz sold) |
|
$ |
18.02 |
|
$ |
18.29 |
|
$ |
18.95 |
|
$ |
19.31 |
Cash costs ($/oz silver sold) (10) |
|
$ |
14.40 |
|
$ |
13.54 |
|
$ |
14.41 |
|
$ |
13.30 |
AISC ($/oz silver sold) (10) |
|
$ |
17.41 |
|
$ |
15.23 |
|
$ |
16.84 |
|
$ |
14.95 |
(9) Gold equivalent ounces are calculated multiplying the silver ounces by the ratio of the silver price to the gold price, using the average LBMA prices for the period. The Company does not include by-products in the gold equivalent ounce calculations. |
||||||||||||
(10) The Company reports the non-GAAP financial measures of cash costs and AISC per ounce of silver sold to manage and evaluate operating performance at Puna. See "Non-GAAP Financial Measures" for an explanation of these financial measures and a reconciliation to cost of sales, which are the comparable GAAP financial measure. Cost of sales excludes depreciation, depletion, and amortization |
||||||||||||
For the three months ended June 30, 2023 and 2022, Puna produced 2.3 million and 2.0 million ounces of silver, respectively with the year-over-year increase primarily driven by higher mill feed grade. For the six months ended June 30, 2023 and 2022, Puna produced 4.3 million and 3.3 million ounces of silver, respectively. Second quarter 2023 cost of sales of
Conference Call Information
This news release should be read in conjunction with the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2023, filed with the
- Conference call and webcast: Wednesday, August 2, 2023, at 5:00 pm EDT.
|
Toll-free in |
+1 (800) 319-4610 |
|
All other callers: |
+1 (604) 638-5340 |
|
Webcast: |
- The conference call will be archived and available on our website. Audio replay will be available for two weeks by calling:
|
Toll-free in |
+1 (855) 669-9658, replay code 0214 |
|
All other callers: |
+1 (412) 317-0088, replay code 0214 |
Dividend Declaration
On August 2, 2023 the Board of Directors declared a quarterly cash dividend of
The dividend payment applies to holders of SSR Mining’s common shares, which trade on the Toronto Stock Exchange and the Nasdaq under the symbol SSRM, and to holders of its CHESS Depositary Interests ("CDIs"), which trade on the Australian Securities Exchange under the symbol SSR. Each CDI confers a beneficial interest in one common share. Therefore, CDI holders are entitled to a dividend calculated on the same basis as the holders of SSR Mining’s common shares.
SSR Mining has sought and been granted a temporary waiver of certain of the ASX Settlement Operating Rules. Under the authority of the waiver, the processing of conversions of common shares to CDIs, or CDIs to common shares, lodged on or after or after August 11, 2023, will be deferred until after the record date of August 14, 2023. The key dates with respect to the dividend are as follows:
Last date for processing requests to convert CDIs into common shares and to convert common shares into CDIs before the record date for the dividend |
|
August 10, 2023 |
CDIs trade on the ASX on an ex‐dividend basis |
|
August 11, 2023 |
Common shares trade on the TSX and Nasdaq on an ex‐dividend basis |
|
August 11, 2023 |
Record date for the dividend |
|
August 14, 2023 |
Processing recommences for requests to convert CDIs into common shares and to convert common shares into CDIs |
|
August 15, 2023 |
Common share dividend payment date (in |
|
September 11, 2023 |
Payment of dividend to CDI holders (in |
|
September 12, 2023 |
Payments to Canadian shareholders will be made in Canadian dollars based on the exchange rate on the record date as reported by the Bank of
About SSR Mining
SSR Mining Inc. is a leading, free cash flow focused gold company with four producing operations located in the
Cautionary Note Regarding Forward-Looking Information and Statements:
Except for statements of historical fact relating to us, certain statements contained in this news release constitute forward-looking information, future oriented financial information, or financial outlooks (collectively “forward-looking information”) within the meaning of applicable securities laws. Forward-looking information may be contained in this document and our other public filings. Forward-looking information relates to statements concerning our outlook and anticipated events or results and, in some cases, can be identified by terminology such as “may”, “will”, “could”, “should”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “estimate”, “projects”, “predict”, “potential”, “continue” or other similar expressions concerning matters that are not historical facts.
Forward-looking information and statements in this news release are based on certain key expectations and assumptions made by us. Although we believe that the expectations and assumptions on which such forward-looking information and statements are based are reasonable, undue reliance should not be placed on the forward-looking information and statements because we can give no assurance that they will prove to be correct. Forward-looking information and statements are subject to various risks and uncertainties which could cause actual results and experience to differ materially from the anticipated results or expectations expressed in this news release. The key risks and uncertainties include, but are not limited to: local and global political and economic conditions; governmental and regulatory requirements and actions by governmental authorities, including changes in government policy, government ownership requirements, changes in environmental, tax and other laws or regulations and the interpretation thereof; developments with respect to the COVID-19 pandemic, including the duration, severity and scope of the pandemic and potential impacts on mining operations; and other risk factors detailed from time to time in our reports filed with the Securities and Exchange Commission on EDGAR and the Canadian securities regulatory authorities on SEDAR.
Forward-looking information and statements in this news release include any statements concerning, among other things: forecasts and outlook; preliminary cost reporting in this document; timing, production, operating, cost, and capital expenditure guidance; our operational and development targets and catalysts and the impact of any suspensions on operations; the results of any gold reconciliations; the ability to discover additional oxide gold ore; the generation of free cash flow and payment of dividends; matters relating to proposed exploration; communications with local stakeholders; maintaining community and government relations; negotiations of joint ventures; negotiation and completion of transactions; commodity prices; Mineral Resources, Mineral Reserves, conversion of Mineral Resources, realization of Mineral Reserves, and the existence or realization of Mineral Resource estimates; the development approach; the timing and amount of future production; the timing of studies, announcements, and analysis; the timing of construction and development of proposed mines and process facilities; capital and operating expenditures; economic conditions; availability of sufficient financing; exploration plans; receipt of regulatory approvals; expectations regarding COVID-19, its ongoing impact on us and any interruptions it may cause on our operations; renewal of NCIB program; our investment in the Hod Maden project, including our expectation for the earn-in payment structure, the availability of project financing for our investment, the ability to develop the project and our ability to lead this effort, the expected timeframe for production, our expectations for production volumes from the project, our expected return on investment and our statements related to additional opportunities available at the property; our investment in the Hod Maden project, including our expectation for the earn-in payment structure, the availability of project financing for our investment, the ability to develop the project and our ability to lead this effort, the expected timeframe for production, our expectations for production volumes from the project, our expected return on investment and our statements related to additional opportunities available at the property; and any and all other timing, exploration, development, operational, financial, budgetary, economic, legal, social, environmental, regulatory, and political matters that may influence or be influenced by future events or conditions.
Such forward-looking information and statements are based on a number of material factors and assumptions, including, but not limited in any manner to, those disclosed in any other of our filings on EDGAR and SEDAR, and include: the inherent speculative nature of exploration results; the ability to explore; communications with local stakeholders; maintaining community and governmental relations; status of negotiations of joint ventures; weather conditions at our operations; commodity prices; the ultimate determination of and realization of Mineral Reserves; existence or realization of Mineral Resources; the development approach; availability and receipt of required approvals, titles, licenses and permits; sufficient working capital to develop and operate the mines and implement development plans; access to adequate services and supplies; foreign currency exchange rates; interest rates; access to capital markets and associated cost of funds; availability of a qualified work force; ability to negotiate, finalize, and execute relevant agreements; lack of social opposition to our mines or facilities; lack of legal challenges with respect to our properties; the timing and amount of future production; the ability to meet production, cost, and capital expenditure targets; timing and ability to produce studies and analyses; capital and operating expenditures; economic conditions; availability of sufficient financing; the ultimate ability to mine, process, and sell mineral products on economically favorable terms; and any and all other timing, exploration, development, operational, financial, budgetary, economic, legal, social, geopolitical, regulatory and political factors that may influence future events or conditions. While we consider these factors and assumptions to be reasonable based on information currently available to us, they may prove to be incorrect.
The above list is not exhaustive of the factors that may affect any of the Company’s forward-looking information. You should not place undue reliance on forward-looking information and statements. Forward-looking information and statements are only predictions based on our current expectations and our projections about future events. Actual results may vary from such forward-looking information for a variety of reasons including, but not limited to, risks and uncertainties disclosed in our filings on our website at www.ssrmining.com, on SEDAR at www.sedar.com, on EDGAR at www.sec.gov and on the ASX at www.asx.com.au and other unforeseen events or circumstances. Other than as required by law, we do not intend, and undertake no obligation to update any forward-looking information to reflect, among other things, new information or future events. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.
Cautionary Note to U.S. Investors
This news release includes terms that comply with reporting standards in
Cautionary Note Regarding Non-GAAP Financial Measures
We have included certain non-GAAP financial measures to assist in understanding the Company’s financial results. The non-GAAP financial measures are employed by us to measure our operating and economic performance and to assist in decision-making, as well as to provide key performance information to senior management. We believe that, in addition to conventional measures prepared in accordance with GAAP, certain investors and other stakeholders will find this information useful to evaluate our operating and financial performance; however, these non-GAAP performance measures do not have any standardized meaning. These performance measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. Our definitions of our non-GAAP financial measures may not be comparable to similarly titled measures reported by other companies. These non-GAAP measures should be read in conjunction with our consolidated financial statements.
Cash costs, AISC per ounce sold, adjusted attributable net income (loss), free cash flow, and net cash are Non-GAAP Measures with no standardized definition under
Non-GAAP Measure – Net Cash and Liquidity
Net cash and net debt are used by management and investors to measure the Company's underlying operating performance. The Company believes that net cash is a useful measure for shareholders as it helps evaluate the strength of liquidity and available cash.
The following table provides a reconciliation of cash and cash equivalents to net cash:
|
As of |
|||||
(in thousands) |
|
June 30, 2023 |
|
December 31, 2022 |
||
Cash and cash equivalents |
|
$ |
379,243 |
|
$ |
655,453 |
Restricted cash |
|
$ |
33,560 |
|
$ |
218,999 |
Total cash |
|
$ |
412,803 |
|
$ |
874,452 |
|
|
|
|
|
|
|
Short and long term portion of term loan |
|
$ |
35,000 |
|
$ |
70,000 |
Face value of 2019 convertible note |
|
$ |
230,000 |
|
$ |
230,000 |
Other debt |
|
$ |
508 |
|
$ |
1,797 |
Total debt |
|
$ |
265,508 |
|
$ |
301,797 |
|
|
|
|
|
|
|
Net cash (debt) |
|
$ |
147,295 |
|
$ |
572,655 |
In addition to net cash and net debt, the Company also uses Total liquidity to measure its financial position. Total liquidity is calculated as Cash and cash equivalents plus Restricted cash and borrowing capacity under current revolving credit facilities, including accordion features. As of June 30, 2023, no borrowings were outstanding on the Company’s
The following table provides a reconciliation of Cash and cash equivalents to Total liquidity:
|
As of |
|||||
(in thousands) |
|
June 30, 2023 |
|
December 31, 2022 |
||
Cash and cash equivalents |
|
$ |
379,243 |
|
$ |
655,453 |
Restricted cash |
|
$ |
33,560 |
|
$ |
218,999 |
Total cash |
|
$ |
412,803 |
|
$ |
874,452 |
Borrowing capacity on credit facility |
|
$ |
200,000 |
|
$ |
200,000 |
Borrowing capacity on accordion feature of credit facility |
|
$ |
100,000 |
|
$ |
100,000 |
Total liquidity |
|
$ |
712,803 |
|
$ |
1,174,452 |
Non-GAAP Measure - Cash Costs and AISC
The Company uses cash costs per ounce of precious metals sold to monitor its operating performance internally. The most directly comparable measure prepared in accordance with GAAP is Cost of sales. The Company believes this measure provides investors and analysts with useful information about its underlying cash costs of operations and the impact of by-product credits on its cost structure. The Company also believes it is a relevant metric used to understand its operating profitability and ability to generate cash flow. When deriving the cost of sales associated with an ounce of precious metal, the Company includes by-product credits. Thereby allowing management and other stakeholders to assess the net costs of gold and silver production. In calculating cash costs per ounce, the Company also excludes the impact of specific items that are significant, but not reflective of its underlying operations.
AISC includes total Cost of sales incurred at the Company's mining operations, which forms the basis of cash costs. Additionally, the Company includes sustaining capital expenditures, sustaining mine-site exploration and evaluation costs, reclamation cost accretion and amortization, and general and administrative expenses. This measure seeks to reflect the ongoing cost of gold and silver production from current operations; therefore, expansionary capital and non-sustaining expenditures are excluded. Certain other cash expenditures, including tax payments and financing costs are also excluded.
The Company believes that AISC represents the total costs of producing gold and silver from current operations and provides the Company and other stakeholders with additional information about its operating performance and ability to generate cash flows. It allows the Company to assess its ability to support capital expenditures and to sustain future production from the generation of operating cash flows.
When deriving the number of ounces of precious metal sold, the Company considers the physical ounces available for sale after the treatment and refining process, commonly referred to as payable metal, as this is what is sold to third parties.
The following tables provide a reconciliation of Cost of sales to Cash costs and AISC:
|
|
Three Months Ended June 30, 2023 |
||||||||||||||||
(in thousands, unless otherwise noted) |
|
Çöpler |
|
Marigold |
|
Seabee |
|
Puna |
|
Corporate |
|
Total |
||||||
Cost of sales (GAAP) (11) |
|
$ |
54,949 |
|
$ |
63,965 |
|
$ |
18,272 |
|
$ |
33,454 |
|
$ |
— |
|
$ |
170,640 |
By-product credits |
|
$ |
(500) |
|
$ |
(37) |
|
$ |
(14) |
|
$ |
(10,462) |
|
$ |
— |
|
$ |
(11,013) |
Treatment and refining charges |
|
$ |
— |
|
$ |
276 |
|
$ |
19 |
|
$ |
3,749 |
|
$ |
— |
|
$ |
4,044 |
Cash costs (non-GAAP) |
|
$ |
54,449 |
|
$ |
64,204 |
|
$ |
18,277 |
|
$ |
26,741 |
|
$ |
— |
|
$ |
163,671 |
Sustaining capital expenditures |
|
$ |
10,511 |
|
$ |
31,312 |
|
$ |
6,872 |
|
$ |
2,477 |
|
$ |
— |
|
$ |
51,172 |
Sustaining exploration and evaluation expense |
|
$ |
1,354 |
|
$ |
3,829 |
|
$ |
— |
|
$ |
2,299 |
|
$ |
— |
|
$ |
7,482 |
Reclamation cost accretion and amortization |
|
$ |
427 |
|
$ |
666 |
|
$ |
761 |
|
$ |
765 |
|
$ |
— |
|
$ |
2,619 |
General and administrative expense and stock-based compensation expense |
|
$ |
1,326 |
|
$ |
— |
|
$ |
— |
|
$ |
37 |
|
$ |
14,899 |
|
$ |
16,262 |
Total AISC (non-GAAP) |
|
$ |
68,067 |
|
$ |
100,011 |
|
$ |
25,910 |
|
$ |
32,319 |
|
$ |
14,899 |
|
$ |
241,206 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Gold sold (oz) |
|
|
49,197 |
|
|
60,389 |
|
|
15,330 |
|
|
— |
|
|
— |
|
|
124,916 |
Silver sold (oz) |
|
|
— |
|
|
— |
|
|
— |
|
|
1,856,600 |
|
|
— |
|
|
1,856,600 |
Gold equivalent sold (oz) (12) |
|
|
49,197 |
|
|
60,389 |
|
|
15,330 |
|
|
22,789 |
|
|
— |
|
|
147,705 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cost of sales per gold equivalent ounce sold |
|
|
1,117 |
|
|
1,059 |
|
|
1,192 |
|
|
1,468 |
|
|
N/A |
|
|
1,155 |
Cash cost per gold ounce sold |
|
|
1,107 |
|
|
1,063 |
|
|
1,192 |
|
|
N/A |
|
|
N/A |
|
|
N/A |
Cash cost per silver ounce sold |
|
|
N/A |
|
|
N/A |
|
|
N/A |
|
|
14.40 |
|
|
N/A |
|
|
N/A |
Cash cost per gold equivalent ounce sold |
|
|
1,107 |
|
|
1,063 |
|
|
1,192 |
|
|
1,173 |
|
|
N/A |
|
|
1,108 |
AISC per gold ounce sold |
|
|
1,384 |
|
|
1,656 |
|
|
1,690 |
|
|
N/A |
|
|
N/A |
|
|
N/A |
AISC per silver ounce sold |
|
|
N/A |
|
|
N/A |
|
|
N/A |
|
|
17.41 |
|
|
N/A |
|
|
N/A |
AISC per gold equivalent ounce sold |
|
|
1,384 |
|
|
1,656 |
|
|
1,690 |
|
|
1,418 |
|
|
N/A |
|
|
1,633 |
|
|
Three Months Ended June 30, 2022 |
||||||||||||||||
(in thousands, unless otherwise noted) |
|
Çöpler |
|
Marigold |
|
Seabee |
|
Puna |
|
Corporate |
|
Total |
||||||
Cost of sales (GAAP) (11) |
|
$ |
63,095 |
|
$ |
50,422 |
|
$ |
19,015 |
|
$ |
32,396 |
|
$ |
— |
|
$ |
164,928 |
By-product credits |
|
$ |
(743) |
|
$ |
(22) |
|
$ |
(41) |
|
$ |
(11,836) |
|
$ |
— |
|
$ |
(12,642) |
Treatment and refining charges |
|
$ |
— |
|
$ |
142 |
|
$ |
117 |
|
$ |
3,433 |
|
$ |
— |
|
$ |
3,692 |
Cash costs (non-GAAP) |
|
$ |
62,352 |
|
$ |
50,542 |
|
$ |
19,091 |
|
$ |
23,993 |
|
$ |
— |
|
$ |
155,978 |
Sustaining capital expenditures |
|
$ |
8,104 |
|
$ |
15,331 |
|
$ |
7,386 |
|
$ |
2,427 |
|
$ |
— |
|
$ |
33,248 |
Sustaining exploration and evaluation expense |
|
$ |
1,346 |
|
$ |
618 |
|
$ |
— |
|
$ |
115 |
|
$ |
— |
|
$ |
2,079 |
Reclamation cost accretion and amortization |
|
$ |
(133) |
|
$ |
557 |
|
$ |
209 |
|
$ |
432 |
|
$ |
— |
|
$ |
1,065 |
General and administrative expense and stock-based compensation expense |
|
$ |
800 |
|
$ |
1 |
|
$ |
8 |
|
$ |
15 |
|
$ |
18,644 |
|
$ |
19,468 |
Total AISC (non-GAAP) |
|
$ |
72,469 |
|
$ |
67,049 |
|
$ |
26,694 |
|
$ |
26,982 |
|
$ |
18,644 |
|
$ |
211,838 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Gold sold (oz) |
|
|
57,846 |
|
|
45,983 |
|
|
42,500 |
|
|
— |
|
|
— |
|
|
146,329 |
Silver sold (oz) |
|
|
— |
|
|
— |
|
|
— |
|
|
1,771,455 |
|
|
— |
|
|
1,771,455 |
Gold equivalent sold (oz) (12) |
|
|
57,846 |
|
|
45,983 |
|
|
42,500 |
|
|
20,872 |
|
|
— |
|
|
167,201 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cost of sales per gold equivalent ounce sold |
|
|
1,091 |
|
|
1,097 |
|
|
447 |
|
|
1,552 |
|
|
N/A |
|
|
986 |
Cash cost per gold ounce sold |
|
|
1,078 |
|
|
1,099 |
|
|
449 |
|
|
N/A |
|
|
N/A |
|
|
N/A |
Cash cost per silver ounce sold |
|
|
N/A |
|
|
N/A |
|
|
N/A |
|
|
13.54 |
|
|
N/A |
|
|
N/A |
Cash cost per gold equivalent ounce sold |
|
|
1,078 |
|
|
1,099 |
|
|
449 |
|
|
1,150 |
|
|
N/A |
|
|
933 |
AISC per gold ounce sold |
|
|
1,253 |
|
|
1,458 |
|
|
628 |
|
|
N/A |
|
|
N/A |
|
|
N/A |
AISC per silver ounce sold |
|
|
N/A |
|
|
N/A |
|
|
N/A |
|
|
15.23 |
|
|
N/A |
|
|
N/A |
AISC per gold equivalent ounce sold |
|
|
1,253 |
|
|
1,458 |
|
|
628 |
|
|
1,293 |
|
|
N/A |
|
|
1,267 |
(11) Excludes depreciation, depletion, and amortization.
|
||||||||||||||||||
|
|
Six Months Ended June 30, 2023 |
||||||||||||||||
(in thousands, unless otherwise noted) |
|
Çöpler |
|
Marigold |
|
Seabee |
|
Puna |
|
Corporate |
|
Total |
||||||
Cost of sales (GAAP) (13) |
|
$ |
129,595 |
|
$ |
118,506 |
|
$ |
41,537 |
|
$ |
80,299 |
|
$ |
— |
|
$ |
369,937 |
By-product credits |
|
$ |
(1,367) |
|
$ |
(74) |
|
$ |
(24) |
|
$ |
(28,476) |
|
$ |
— |
|
$ |
(29,941) |
Treatment and refining charges |
|
$ |
— |
|
$ |
459 |
|
$ |
49 |
|
$ |
9,247 |
|
$ |
— |
|
$ |
9,755 |
Cash costs (non-GAAP) |
|
$ |
128,228 |
|
$ |
118,891 |
|
$ |
41,562 |
|
$ |
61,070 |
|
$ |
— |
|
$ |
349,751 |
Sustaining capital expenditures |
|
$ |
17,214 |
|
$ |
64,434 |
|
$ |
20,007 |
|
$ |
5,307 |
|
$ |
— |
|
$ |
106,962 |
Sustaining exploration and evaluation expense |
|
$ |
2,115 |
|
$ |
683 |
|
$ |
— |
|
$ |
3,371 |
|
$ |
— |
|
$ |
6,169 |
Reclamation cost accretion and amortization |
|
$ |
854 |
|
$ |
1,311 |
|
$ |
1,416 |
|
$ |
1,530 |
|
$ |
— |
|
$ |
5,111 |
General and administrative expense and stock-based compensation expense |
|
$ |
2,062 |
|
$ |
— |
|
$ |
— |
|
$ |
89 |
|
$ |
32,652 |
|
$ |
34,803 |
Total AISC (non-GAAP) |
|
$ |
150,473 |
|
$ |
185,319 |
|
$ |
62,985 |
|
$ |
71,367 |
|
$ |
32,652 |
|
$ |
502,796 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Gold sold (oz) |
|
|
107,211 |
|
|
111,686 |
|
|
32,130 |
|
|
— |
|
|
— |
|
|
251,027 |
Silver sold (oz) |
|
|
— |
|
|
— |
|
|
— |
|
|
4,238,140 |
|
|
— |
|
|
4,238,140 |
Gold equivalent sold (oz) (14) |
|
|
107,211 |
|
|
111,686 |
|
|
32,130 |
|
|
51,235 |
|
|
— |
|
|
302,262 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cost of sales per gold equivalent ounce sold |
|
|
1,209 |
|
|
1,061 |
|
|
1,293 |
|
|
1,567 |
|
|
N/A |
|
|
1,224 |
Cash cost per gold ounce sold |
|
|
1,196 |
|
|
1,065 |
|
|
1,294 |
|
|
N/A |
|
|
N/A |
|
|
N/A |
Cash cost per silver ounce sold |
|
|
N/A |
|
|
N/A |
|
|
N/A |
|
|
14.41 |
|
|
N/A |
|
|
N/A |
Cash cost per gold equivalent ounce sold |
|
|
1,196 |
|
|
1,065 |
|
|
1,294 |
|
|
1,192 |
|
|
N/A |
|
|
1,157 |
AISC per gold ounce sold |
|
|
1,404 |
|
|
1,659 |
|
|
1,960 |
|
|
N/A |
|
|
N/A |
|
|
N/A |
AISC per silver ounce sold |
|
|
N/A |
|
|
N/A |
|
|
N/A |
|
|
16.84 |
|
|
N/A |
|
|
N/A |
AISC per gold equivalent ounce sold |
|
|
1,404 |
|
|
1,659 |
|
|
1,960 |
|
|
1,393 |
|
|
N/A |
|
|
1,663 |
|
|
Six Months Ended June 30, 2022 |
||||||||||||||||
(in thousands, unless otherwise noted) |
|
Çöpler |
|
Marigold |
|
Seabee |
|
Puna |
|
Corporate |
|
Total |
||||||
Cost of sales (GAAP) (13) |
|
$ |
125,679 |
|
$ |
89,157 |
|
$ |
35,425 |
|
$ |
68,187 |
|
$ |
— |
|
$ |
318,448 |
By-product credits |
|
$ |
(2,207) |
|
$ |
(63) |
|
$ |
(77) |
|
$ |
(28,569) |
|
$ |
— |
|
$ |
(30,916) |
Treatment and refining charges |
|
$ |
— |
|
$ |
177 |
|
$ |
207 |
|
$ |
7,366 |
|
$ |
— |
|
$ |
7,750 |
Cash costs (non-GAAP) |
|
$ |
123,472 |
|
$ |
89,271 |
|
$ |
35,555 |
|
$ |
46,984 |
|
$ |
— |
|
$ |
295,282 |
Sustaining capital expenditures |
|
$ |
14,479 |
|
$ |
33,566 |
|
$ |
19,261 |
|
$ |
4,640 |
|
$ |
— |
|
$ |
71,946 |
Sustaining exploration and evaluation expense |
|
$ |
1,728 |
|
$ |
935 |
|
$ |
— |
|
$ |
165 |
|
$ |
— |
|
$ |
2,828 |
Reclamation cost accretion and amortization |
|
$ |
262 |
|
$ |
1,070 |
|
$ |
351 |
|
$ |
863 |
|
$ |
— |
|
$ |
2,546 |
General and administrative expense and stock-based compensation expense |
|
$ |
1,714 |
|
$ |
1 |
|
$ |
11 |
|
$ |
163 |
|
$ |
33,818 |
|
$ |
35,707 |
Total AISC (non-GAAP) |
|
$ |
141,655 |
|
$ |
124,843 |
|
$ |
55,178 |
|
$ |
52,815 |
|
$ |
33,818 |
|
$ |
408,309 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Gold sold (oz) |
|
|
130,271 |
|
|
82,937 |
|
|
90,300 |
|
|
— |
|
|
— |
|
|
303,508 |
Silver sold (oz) |
|
|
— |
|
|
— |
|
|
— |
|
|
3,531,842 |
|
|
— |
|
|
3,531,842 |
Gold equivalent sold (oz) (14) |
|
|
130,271 |
|
|
82,937 |
|
|
90,300 |
|
|
43,385 |
|
|
— |
|
|
346,893 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Cost of sales per gold equivalent ounce sold |
|
|
965 |
|
|
1,075 |
|
|
392 |
|
|
1,572 |
|
|
N/A |
|
|
918 |
Cash cost per gold ounce sold |
|
|
948 |
|
|
1,076 |
|
|
394 |
|
|
N/A |
|
|
N/A |
|
|
N/A |
Cash cost per silver ounce sold |
|
|
N/A |
|
|
N/A |
|
|
N/A |
|
|
13.30 |
|
|
N/A |
|
|
N/A |
Cash cost per gold equivalent ounce sold |
|
|
948 |
|
|
1,076 |
|
|
394 |
|
|
1,083 |
|
|
N/A |
|
|
851 |
AISC per gold ounce sold |
|
|
1,087 |
|
|
1,505 |
|
|
611 |
|
|
N/A |
|
|
N/A |
|
|
N/A |
AISC per silver ounce sold |
|
|
N/A |
|
|
N/A |
|
|
N/A |
|
|
14.95 |
|
|
N/A |
|
|
N/A |
AISC per gold equivalent ounce sold |
|
|
1,087 |
|
|
1,505 |
|
|
611 |
|
|
1,217 |
|
|
N/A |
|
|
1,177 |
(13) Excludes depreciation, depletion, and amortization.
|
||||||||||||||||||
The following tables provide a reconciliation of Cost of sales to Cash costs and AISC used in our 2023 guidance announced in a news release dated February 9, 2023:
(operating guidance |
|
Çöpler |
|
Marigold |
|
Seabee |
|
Puna |
|
Corporate |
|
Total |
||||
Gold production |
koz |
|
240 — 270 |
|
|
260 — 290 |
|
100 — 110 |
|
— |
|
|
— |
|
600 — 670 |
|
Silver production |
Moz |
|
— |
|
|
— |
|
— |
|
8.0 — 9.0 |
|
— |
|
8.0 — 9.0 |
||
Gold equivalent production |
koz |
|
240 — 270 |
|
|
260 — 290 |
|
100 — 110 |
|
100 — 110 |
|
|
— |
|
700 — 780 |
|
Gold sold |
koz |
|
240 — 270 |
|
|
260 — 290 |
|
100 — 110 |
|
— |
|
|
— |
|
600 — 670 |
|
Silver sold |
Moz |
|
— |
|
|
— |
|
— |
|
8.0 — 9.0 |
|
— |
|
8.0 — 9.0 |
||
Gold equivalent sold |
koz |
|
240 — 270 |
|
|
260 — 290 |
|
100 — 110 |
|
100 — 110 |
|
|
— |
|
700 — 780 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Cost of sales (GAAP) (16) |
$M |
|
265 — 290 |
|
|
270 — 290 |
|
78 — 88 |
|
150 — 160 |
|
|
— |
|
763 — 828 |
|
By-product credits + treatment & refining costs |
$M |
|
(2 |
) |
|
— |
|
— |
|
(32 |
) |
|
— |
|
(34 |
) |
Cash cost (non-GAAP) |
$M |
|
263 — 288 |
|
|
270 — 290 |
|
78 — 88 |
|
118 — 128 |
|
|
— |
|
729 — 794 |
|
Sustaining capital expenditures (17) |
$M |
|
45 |
|
|
81 |
|
33 |
|
15 |
|
|
— |
|
174 |
|
Sustaining exploration expenditures |
$M |
|
4 |
|
|
6 |
|
— |
|
3 |
|
|
— |
|
13 |
|
Reclamation cost accretion & amortization |
$M |
|
2 |
|
|
2 |
|
4 |
|
2 |
|
|
— |
|
10 |
|
General & administrative |
$M |
|
— |
|
|
— |
|
— |
|
— |
|
|
68 — 73 |
|
68 — 73 |
|
All-in sustaining cost (non-GAAP) |
$M |
|
314 — 339 |
|
|
359 — 379 |
|
115 — 125 |
|
138 — 148 |
|
|
68 — 73 |
|
994 — 1,064 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Cost of sales per ounce (GAAP) (18) |
$/oz |
|
1,070 — 1,100 |
|
1,000 — 1,030 |
|
810 — 840 |
|
18.00 — 19.50 |
|
— |
|
1,055 — 1,115 |
|||
Cash cost per ounce (non-GAAP) (18) |
$/oz |
|
1,060 — 1,090 |
|
1,000 — 1,030 |
|
810 — 840 |
|
14.00 — 15.50 |
|
— |
|
1,015 — 1,075 |
|||
All-in sustaining cost per ounce (non-GAAP) (18) |
$/oz |
|
1,245 — 1,295 |
|
1,315 — 1,365 |
|
1,160 — 1,210 |
|
16.25 — 17.75 |
|
— |
|
1,365 — 1,425 |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Growth capital expenditures |
$M |
|
40 |
|
|
— |
|
2 |
|
— |
|
|
— |
|
42 |
|
Growth exploration and resource development expenditures (19) |
$M |
|
27 |
|
|
20 |
|
21 |
|
5 |
|
|
9 |
|
81 |
|
Total growth capital |
$M |
|
67 |
|
|
20 |
|
23 |
|
5 |
|
|
9 |
|
123 |
|
(15) Figures may not add due to rounding. Figures are reported on a |
||||||||||||||||
(16) Excludes depreciation, depletion, and amortization. |
||||||||||||||||
(17) Excludes sustaining exploration and evaluation expenditures. Includes approximately |
||||||||||||||||
(18) Çöpler, Marigold and Seabee costs per ounce based on gold ounces sold; Puna costs per ounce based on silver ounces sold. Gold equivalent ounces sold are used in the calculation for total costs per ounce. |
||||||||||||||||
(19) Growth exploration and resource development expenditures are shown on a |
||||||||||||||||
Non-GAAP Measure - Adjusted Attributable Net Income (loss)
Adjusted attributable net income (loss) and adjusted attributable net income (loss) per share are used by management to measure the Company's underlying operating performance. We believe this measure is also useful for shareholders to assess the Company’s operating performance. The most directly comparable financial measures prepared in accordance with GAAP are Net income (loss) attributable to SSR Mining shareholders and Net income (loss) per share attributable to SSR Mining shareholders. Adjusted attributable net income (loss) is defined as net income (loss) adjusted to exclude the after-tax impact of specific items that are significant, but not reflective of the Company's underlying operations, including impairment charges; inflationary impacts on tax balances; transaction, integration, and SEC conversion expenses; and other non-recurring items.
The following table provides a reconciliation of Net income (loss) attributable to SSR Mining shareholders to adjusted net income (loss) attributable to SSR Mining shareholders:
|
|
Three Months Ended |
|
Six Months Ended |
||||||||
(in thousands of US dollars, except per share data) |
|
June 30, |
|
June 30, |
||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||
Net income attributable to SSR Mining shareholders (GAAP) |
|
$ |
74,866 |
|
$ |
58,488 |
|
$ |
104,679 |
|
$ |
126,051 |
Interest saving on convertible notes, net of tax |
|
$ |
1,236 |
|
$ |
1,230 |
|
$ |
2,456 |
|
$ |
2,446 |
Net income used in the calculation of diluted net income per share |
|
$ |
76,102 |
|
$ |
59,718 |
|
$ |
107,135 |
|
$ |
128,497 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares used in the calculation of net income and adjusted net income per share |
||||||||||||
Basic |
|
|
204,680 |
|
|
212,600 |
|
|
205,723 |
|
|
212,512 |
Diluted |
|
|
217,320 |
|
|
225,084 |
|
|
218,347 |
|
|
224,962 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share attributable to SSR Mining shareholders (GAAP) |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.37 |
|
$ |
0.28 |
|
$ |
0.51 |
|
$ |
0.59 |
Diluted |
|
$ |
0.35 |
|
$ |
0.27 |
|
$ |
0.49 |
|
$ |
0.57 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange loss (gain) (20) |
|
$ |
— |
|
$ |
4,869 |
|
$ |
— |
|
$ |
8,156 |
Artmin transaction and integration costs |
|
$ |
377 |
|
$ |
— |
|
$ |
377 |
|
$ |
— |
SEC conversion costs |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
1,217 |
Change in fair value of marketable securities |
|
$ |
746 |
|
$ |
2,876 |
|
$ |
(1,120) |
|
$ |
3,799 |
Loss (gain) on sale of mineral properties, plant and equipment |
|
$ |
810 |
|
$ |
757 |
|
$ |
1,050 |
|
$ |
1,341 |
Income tax impact related to above adjustments |
|
$ |
(109) |
|
$ |
(945) |
|
$ |
30 |
|
$ |
(1,653) |
Foreign exchange (gain) loss and inflationary impacts on tax balances (20) |
|
$ |
(1,587) |
|
$ |
755 |
|
$ |
(10,741) |
|
$ |
(6,169) |
Other tax adjustments (21) |
|
$ |
— |
|
$ |
— |
|
$ |
2,101 |
|
$ |
— |
Adjusted net income attributable to SSR Mining shareholders (Non-GAAP) |
|
$ |
75,103 |
|
$ |
66,800 |
|
$ |
96,376 |
|
$ |
132,742 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income per share attributable to SSR Mining shareholders (Non-GAAP) |
||||||||||||
Basic |
|
$ |
0.37 |
|
$ |
0.31 |
|
$ |
0.47 |
|
$ |
0.62 |
Diluted |
|
$ |
0.35 |
|
$ |
0.30 |
|
$ |
0.45 |
|
$ |
0.60 |
(20) Effective January 1, 2023, the Company no longer adjusts for the effects of foreign exchange gains and losses. |
||||||||||||
(21) Represents charges related to a one-time tax imposed by Türkiye to fund earthquake recovery efforts, offset by a release of an uncertain tax position. |
||||||||||||
Non-GAAP Measure - Free Cash Flow
The Company uses free cash flow, cash flow from operating activities before changes in working capital, and free cash flow before changes in working capital to supplement information in its condensed consolidated financial statements. The most directly comparable financial measures prepared in accordance with GAAP is cash provided by operating activities. The Company believes that in addition to conventional measures prepared in accordance with US GAAP, certain investors and analysts use this information to evaluate the ability of the Company to generate cash flow after capital investments and build the Company's cash resources. The Company calculates free cash flow by deducting cash capital spending from cash generated by operating activities.
The following table provides a reconciliation of cash provided by operating activities to free cash flow:
|
|
Three Months Ended |
|
Six Months Ended |
||||||||
(in thousands of US dollars, except per share data) |
|
June 30, |
|
June 30, |
||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||
Cash provided by operating activities (GAAP) |
|
$ |
80,343 |
|
$ |
32,838 |
|
$ |
83,310 |
|
$ |
95,025 |
Expenditures on mineral properties, plant, and equipment |
|
$ |
(57,935) |
|
$ |
(17,000) |
|
$ |
(117,177) |
|
$ |
(51,492) |
Free cash flow (non-GAAP) |
|
$ |
22,408 |
|
$ |
15,838 |
|
$ |
(33,867) |
|
$ |
43,533 |
We also present operating cash flow before working capital adjustments and free cash flow before working capital adjustments as non-GAAP cash flow measures to supplement our operating cash flow and free cash flow (non-GAAP) measures. We believe presenting both operating cash flow and free cash flow before working capital adjustments, which reflects an exclusion of net changes in operating assets and liabilities, will be useful for investors because it presents cash flow that is actually generated from the continuing business. The Company calculates cash flow from operating activities before changes in working capital by adjusting cash provided by operating activities by the net change in operating assets and liabilities. The Company also calculates free cash flow before changes in working capital by deducting cash capital spending from cash flow from operating activities before changes in working capital.
The following table provides a reconciliation of cash provided by operating activities to free cash flow before changes in working capital:
|
|
Three Months Ended |
|
Six Months Ended |
||||||||
(in thousands of US dollars, except per share data) |
|
June 30, |
|
June 30, |
||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||
Cash generated by (used in) operating activities (GAAP) |
|
$ |
80,343 |
|
$ |
32,838 |
|
$ |
83,310 |
|
$ |
95,025 |
Net change in operating assets and liabilities |
|
$ |
23,922 |
|
$ |
72,764 |
|
$ |
111,824 |
|
$ |
141,344 |
Cash generated by (used in) operating activities before changes in working capital (non-GAAP) |
|
$ |
104,265 |
|
$ |
105,602 |
|
$ |
195,134 |
|
$ |
236,369 |
Expenditures on mineral properties, plant, and equipment |
|
$ |
(57,935) |
|
$ |
(17,000) |
|
$ |
(117,177) |
|
$ |
(51,492) |
Free cash flow before changes in working capital (non-GAAP) |
|
$ |
46,330 |
|
$ |
88,602 |
|
$ |
77,957 |
|
$ |
325,139 |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230731309032/en/
SSR Mining Contacts:
F. Edward Farid, Executive Vice President, Chief Corporate Development Officer
Alex Hunchak, Director, Corporate Development and Investor Relations
SSR Mining Inc.
E-Mail: invest@ssrmining.com
Phone: +1 (888) 338-0046
To receive SSR Mining’s news releases by e-mail, please register using the SSR Mining website at www.ssrmining.com.
Source: SSR Mining Inc.
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