SSR Mining Inc. (Nasdaq/TSX: SSRM, ASX: SSR) ("SSR Mining" or
the “Company") reports consolidated financial results for the
fourth quarter and full-year ended December 31, 2023. Subsequent to
year-end 2023, on February 13, 2024, operations at �pler were
suspended as a result of a significant slip on the heap leach pad
(the "�pler Incident"). Nine individuals remain unaccounted for as
a result. The Company is not, at this time, able to estimate or
predict when it will resume operations at �pler. The Company is
assessing the potential impacts on the business, cash flows,
results of operations and financial condition.
Rod Antal, Executive Chairman of SSR Mining, said, “Right now,
our attention is focused at �pler. The events of February 13, 2024
were tragic and overshadow today’s results. We are heartbroken and
sympathize with what we know is an extraordinarily stressful time
for the families, friends and colleagues of the nine missing
personnel.
We would like to recognize the overwhelming support by a number
of government agencies who are providing significant resources at
�pler. Our teams are supporting the various government agencies to
ensure that areas impacted are safe to continue the recovery and
containment work. Finally, initial discussions and technical
support is progressing to agree on the ultimate permanent storage
location for the heap leach material that has been displaced from
the heap leach pad.
Due to the evolving situation at our �pler mine, we are
retracting our previously issued 2024 and long-term guidance
forecasts for Ç�pler and Türkiye. We are also suspending our
quarterly dividend payments and the automatic share purchase plan
(“ASPP”). While we continue to assess the impact of the Ç�pler
Incident, with a year-end 2023 cash balance of nearly $500 million
and our operations at Marigold, Seabee and Puna continuing to
generate cash flow, we do not, at this time, anticipate any
near-term liquidity concerns. This is a challenging time, and we
continue to offer our support to all individuals impacted by the
events of February 13, 2024.”
Detailed disclosure related to the �pler Incident is included
in the Company’s 10-K filed today. SSR Mining has also created a
page on its website where it will be providing further updates on
the situation at �pler.
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, 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.
Fourth Quarter and Full-Year 2023 Results & Subsequent
Events: (1) (All figures are in U.S. dollars unless otherwise
noted; 2023 results do not reflect any impact of the �pler
Incident)
- �pler Incident: On February 13, 2024, the Company
suspended operations at �pler as a result of a significant slip on
the heap leach pad. At this time, nine personnel remain unaccounted
for. The Turkish government is conducting environmental monitoring
of surface water, groundwater, soil and air quality in the region
with respect to potential contamination. Public comments from the
Turkish government indicate that to date, the testing results have
been negative with respect to potential contamination in the
locations being monitored. Containment and remediation efforts are
ongoing, which are being directed by the Turkish government and
supported by the Company, with an initial focus on removing heap
leach material from the Sabırlı Valley and relocating it to a
permanent storage location. The Company is in the process of
evaluating the estimated remediation costs and anticipates
recording a remediation liability during the first quarter of 2024.
We also anticipate recording an impairment of inventory and
specific assets directly impacted by the �pler Incident and will
evaluate the �pler long-lived asset group for additional
impairment during the first quarter of 2024. As of December 31,
2023, the �pler leach pad inventory of $73.3 million represents
19% and 10% of �pler's total inventory and of the Company's total
inventory, respectively. As of December 31, 2023, the �pler
mineral, properties, plant and equipment ("MPP&E") related to
the leach pad of $33.1 million represents 1.0% and 0.8% of �pler's
total MPP&E and of the Company's total MPP&E,
respectively.
- Board of Directors: In light of the �pler Incident,
Michael Anglin, currently our Lead Independent Director, who had
previously advised the Company of his decision to retire and not
stand for re-election to the Board, is expected to postpone his
retirement and stand for re-election at the Company’s 2024 Annual
Meeting of Shareholders. Mr. Anglin has served on the Board since
2008 and brings more than 30 years of industry experience to his
role. Mr. Anglin’s continued presence during this period will
provide important experience and leadership on the Board.
- Operating results: Fourth quarter 2023 production was
211,226 gold equivalent ounces at cost of sales of $1,064 per gold
equivalent ounce and AISC of $1,326 per gold equivalent ounce. For
the twelve months ending December 31, 2023, SSR Mining reported
production of 706,894 gold equivalent ounces at cost of sales of
$1,141 per gold equivalent ounce and AISC of $1,461 per gold
equivalent ounce. Production was previously reported in mid-January
2024 and was in line with 2023 guidance.
- Financial results: Attributable net loss in the fourth
quarter of 2023 was $217.8 million, or $1.07 per diluted share,
largely attributed to a non-cash impairment at �pler as a result
of the Company removing C2 Mineral Resources from its consolidated
Mineral Reserves and Mineral Resources (“MRMR”) statement. Adjusted
attributable net income in the fourth quarter was $127.1 million,
or $0.59 per diluted share. In the fourth quarter of 2023 operating
cash flow was $203.2 million, or $218.4 million before working
capital adjustments, and free cash flow was $144.4 million, or
$159.6 million before changes in working capital. For the twelve
months ending December 31, 2023, attributable net loss was $98.0
million, or $0.48 per diluted share and adjusted attributable net
income was $276.5 million, or $1.29 per diluted share. For the
twelve months ending December 31, 2023, operating cash flow was
$421.7 million, or $555.9 million before working capital
adjustments, and free cash flow was $198.3 million, or $332.5
million before changes in working capital.
- Capital returns program: For the twelve months ending
December 31, 2023, SSR Mining returned $114.0 million to
shareholders, a capital returns yield of approximately 5.0%.
Capital returns were composed of $57.7 million in quarterly cash
dividend payments and $56.3 million in share repurchases. As a
result of the �pler Incident, the Company suspended its dividend
and share repurchases.
- Year-end cash and liquidity position: As of December 31,
2023, SSR Mining had a cash and cash equivalent balance of $492.4
million and a non-GAAP net cash position of $261.6 million.
- Technical Report Summaries published for all producing
assets: On February 13, 2024, the Company released Technical
Report Summaries (“TRS”) for Marigold, Puna, and Seabee. The TRS
are in compliance with Subpart 1300 of Regulation SK. These reports
include refreshed operating and economic assumptions for each
asset. The Company also released a TRS for �pler, which had an
effective date of October 31, 2023 and as such does not reflect the
impact of the �pler incident. The operating and economic
assumptions in the TRS are being evaluated.
- �pler 2023 operating results: Gold production was
57,126 ounces in the fourth quarter of 2023 at cost of sales of
$1,160 per payable ounce and AISC of $1,535 per payable ounce.
During the fourth quarter of 2023, �pler recovered approximately
10,000 ounces of gold from Çakmaktepe, which delivered first
production in late September 2023. For the twelve months ending
December 31, 2023, gold production for �pler was 220,999 ounces at
full-year cost of sales of $1,191 per payable ounce and AISC of
$1,433 per payable ounce. As a result of the �pler Incident, all
operations at the mine are suspended.
- Marigold 2023 operating results: Gold production was
82,794 ounces in the fourth quarter of 2023 at cost of sales of
$1,095 per payable ounce and AISC of $1,170 per payable ounce. For
the twelve months ending December 31, 2023, gold production for
Marigold was 278,488 ounces, a record for the operation over its
more than 30-year operating history. For the full-year, the Company
reported cost of sales of $1,047 per payable ounce and AISC of
$1,349 per payable ounce.
- Seabee 2023 operating results: Gold production was
38,757 ounces in the fourth quarter of 2023, reflecting processed
grades of over 10.1 g/t in the quarter, at cost of sales of $666
per payable ounce and AISC of $916 per payable ounce. Underground
mining and plant throughput averaged approximately 1,300 tonnes per
day during the fourth quarter of 2023, highlighting the ongoing
success of continuous improvement initiatives at the mine. For the
twelve months ending December 31, 2023, gold production for Seabee
was 90,777 ounces at cost of sales of $991 per payable ounce and
AISC of $1,427 per payable ounce.
- Puna 2023 operating results: Silver production was 2.8
million ounces in the fourth quarter of 2023 at cost of sales of
$14.07 per payable ounce and AISC of $15.51 per payable ounce. For
the twelve months ending December 31, 2023, Puna’s silver
production was 9.7 million ounces, exceeding the full-year guidance
range, at cost of sales of $16.49 per payable ounce and AISC of
$15.37 per payable ounce, below the full-year guidance range.
- Automatic Share Purchase Plan Termination: The Company
announces that, in connection with its normal course issuer bid
(the “NCIB”), it has terminated its previously announced automatic
share purchase plan (the “ASPP”) with a designated broker, pursuant
to which the designated broker could acquire common shares of the
Company based on pre-established purchasing parameters, without
further instructions by the Company, in compliance with the rules
of the Toronto Stock Exchange. The termination is effective March
1, 2024. The Company confirms that at the time of sending the
notice of termination of the ASPP, it did not possess knowledge of
any material fact or material change about the Company or any of
its securities that has not been generally disclosed.
(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, 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.
Select Updated 2024 Guidance Outlook
As a result of the �pler Incident, the Company is retracting
all previously issued operating and cost guidance for �pler and
its operations and projects in Türkiye. SSR Mining will revisit the
forward-looking guidance at an appropriate future date.
Table 1: Full-Year 2024 Outlook (Excluding �pler and Hod
Maden)
Operating Guidance (2)
Marigold
Seabee
Puna
Corporate
Gold Production
koz
155 – 175
75 – 85
—
—
Silver Production
Moz
—
—
8.75 – 9.50
—
Gold Equivalent Production
koz AuEq
155 – 175
75 – 85
110 – 120
—
Cost of Sales per Ounce (3)
$/oz
1,300 – 1,340
990 – 1,030
16.50 – 18.00
—
Cash Cost per Ounce (4)
$/oz
1,300 – 1,340
990 – 1,030
11.50 – 13.00
—
Sustaining Capital Expenditures (5)
$M
37
40
17
—
Reclamation Cost Accretion &
Amortization
$M
3
3
13
—
General & Administrative
$M
—
—
—
60 – 65
All-In Sustaining Cost per Ounce (4)
$/oz
1,535 – 1,575
1,495 – 1,535
14.75 – 16.25
—
Growth Capital
$M
1
2
—
—
Growth Exploration and Resource
Development Expense (6)
$M
9
15
10
4
Total Growth Expenditures
$M
11
17
10
4
(2)
Figures may not add due to rounding.
(3)
Excludes depreciation, depletion, and
amortization.
(4)
SSR Mining reports the non-GAAP financial measures of cash costs
and AISC per payable ounce of gold and silver sold to manage and
evaluate operating performance at �pler, Marigold, Seabee and
Puna. See “Cautionary Note Regarding Non-GAAP Measures” at the end
of this press release for an explanation of these financial
measures and a reconciliation of these financial measures to cost
of sales, previously referred to as production costs, which is the
most comparable GAAP financial measures. AISC includes reclamation
cost accretion and amortization and certain lease payments.
(5)
Includes sustaining exploration and
evaluation expenditures. Includes approximately $1 million of
expensed sustaining exploration at Marigold and $24 million in
underground mine development at Seabee.
(6)
All growth exploration and resource
development spend is expensed. Growth exploration includes project
studies and evaluation.
Financial and Operating Highlights
A summary of the Company's consolidated financial and operating
results for the three and twelve months ended December 31, 2023 and
December 31, 2022 are presented below:
Three Months Ended
Twelve Months Ended
(in thousands of US dollars, except per
share data)
December 31,
December 31,
2023
2022
2023
2022
Financial Results
Revenue
$
425,897
$
306,377
$
1,426,927
$
1,148,033
Operating income (loss)
$
(297,623)
$
39,367
$
(130,244)
$
190,268
Net income (loss)
$
(264,360)
$
95,177
$
(120,225)
$
210,428
Net income (loss) attributable to equity
holders of SSR Mining
$
(217,845)
$
93,884
$
(98,007)
$
194,140
Basic net income (loss) per share
attributable to equity holders of SSR Mining
$
(1.07)
$
0.45
$
(0.48)
$
0.92
Diluted net income (loss) per share
attributable to equity holders of SSR Mining
$
(1.07)
$
0.43
$
(0.48)
$
0.89
Adjusted attributable net income (7)
$
127,077
$
25,580
$
276,494
$
144,814
Adjusted basic attributable net income per
share (7)
$
0.62
$
0.12
$
1.35
$
0.69
Adjusted diluted attributable net income
per share (7)
$
0.59
$
0.12
$
1.29
$
0.67
Cash generated by operating activities
before changes in working capital (7)
$
218,388
$
95,463
$
555,872
$
308,166
Cash generated by operating activities
$
203,159
$
118,097
$
421,725
$
160,896
Cash generated by (used in) investing
activities
$
(59,050)
$
(166,299)
$
(339,261)
$
(236,282)
Cash generated by (used in) financing
activities
$
(24,450)
$
(33,148)
$
(182,256)
$
(271,782)
Operating Results
Gold produced (oz)
178,677
153,187
590,264
522,159
Gold sold (oz)
172,917
146,385
585,171
521,928
Silver produced ('000 oz)
2,759
2,389
9,688
8,397
Silver sold ('000 oz)
2,830
2,098
9,920
7,864
Lead produced ('000 lb) (8)
13,814
13,422
45,772
41,004
Lead sold ('000 lb) (8)
13,758
10,138
48,640
38,393
Zinc produced ('000 lb) (8)
1,322
3,643
7,127
8,583
Zinc sold ('000 lb) (8)
1,992
1,452
8,166
6,998
Gold equivalent produced (oz) (9)
211,226
182,655
706,894
623,819
Gold equivalent sold (oz) (9)
206,310
172,308
704,594
617,135
Average realized gold price ($/oz
sold)
$
1,976
$
1,749
$
1,950
$
1,812
Average realized silver price ($/oz
sold)
$
23.23
$
18.58
$
22.82
$
19.47
Cost of sales per gold equivalent ounce
sold (9, 10)
$
1,064
$
1,064
$
1,141
$
985
Cash cost per gold equivalent ounce sold
(9, 10)
$
1,008
$
1,019
$
1,083
$
928
AISC per gold equivalent ounce sold (9,
10)
$
1,326
$
1,358
$
1,461
$
1,339
Financial Position
December 31, 2023
December 31, 2022
Cash and cash equivalents
$
492,393
$
655,453
Current assets
$
1,196,476
$
1,376,435
Total assets
$
5,385,773
$
5,254,657
Current liabilities
$
170,573
$
279,252
Total liabilities
$
1,081,570
$
1,128,458
Working capital (11)
$
1,025,903
$
1,097,183
(7)
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.
(8)
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.
(9)
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
(10)
Excludes depreciation, depletion, and
amortization
(11)
Working capital is defined as current
assets less current liabilities.
Ç�pler, Türkiye
(amounts presented on 100% basis)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
Operating Data
2023
2022
2023
2022
Gold produced (oz)
57,126
65,603
220,999
191,366
Gold sold (oz)
59,694
59,949
225,599
192,811
Ore mined (kt)
1,223
1,407
4,501
3,161
Waste removed (kt)
7,533
5,596
25,197
17,311
Total material mined (kt)
8,756
7,003
29,698
20,472
Strip ratio
6.2
4.0
5.6
5.5
Ore stacked (kt)
182
249
813
459
Gold grade stacked (g/t)
1.24
1.22
1.36
1.06
Ore milled (kt)
710
748
2,733
2,068
Gold mill feed grade (g/t)
2.55
2.75
2.56
2.86
Gold recovery (%)
88.2
86.8
87.5
87.0
Average realized gold price ($/oz
sold)
$
1,989
$
1,743
$
1,945
$
1,826
Cost of sales ($/oz gold sold)
$
1,160
$
1,065
$
1,191
$
985
Cash costs ($/oz gold sold) (12)
$
1,146
$
1,053
$
1,175
$
969
AISC ($/oz gold sold) (12)
$
1,535
$
1,269
$
1,433
$
1,328
(12)
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 �pler. 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. For the three and twelve months ended
December 31, 2023 and December 31, 2022, cash costs and AISC per
ounce of gold sold exclude the impact of any fair value
adjustment on acquired inventories.
For the three months ended December 31, 2023 and 2022, �pler
produced 57,126 and 65,603 ounces of gold, respectively. For the
twelve months ended December 31, 2023 and 2022, �pler produced
220,999 and 191,366 ounces of gold, respectively. In the fourth
quarter of 2023, �pler recovered approximately 10,000 ounces of
gold from Çakmaktepe, which delivered first production late in the
third quarter of 2023 in line with guidance. The �pler sulfide
plant operated at an average throughput rate of nearly 7,500 tonnes
per day in 2023 and more than 7,700 tonnes per day in the fourth
quarter of 2023. Fourth quarter 2023 cost of sales of $1,160 per
payable ounce and AISC of $1,535 per payable ounce resulted in
full-year cost of sales of $1,191 per payable ounce and AISC of
$1,433 per payable ounce.
As a result of the removal of copper-gold mineralization
associated with the C2 Project at Ç�pler from the Company’s Mineral
Resources as of December 31, 2023, SSR Mining performed its
long-lived asset and impairment evaluation. Based on the
evaluation, the Company recorded a non-cash write down of $349
million at Ç�pler in the Company’s financial statements for the
year ended December 31, 2023. This reduced the fixed asset and
mineral property value for �pler from approximately $2.80 billion
to $2.45 billion as of 2023 year-end.
The Company is unable to reasonably estimate the impact of the
�pler Incident on the financial position, results of operations
and cash flows of �pler and the Company as a whole at this
time.
Marigold, USA
Three Months Ended
Twelve Months Ended
December 31,
December 31,
Operating Data
2023
2022
2023
2022
Gold produced (oz)
82,794
62,875
278,488
194,668
Gold sold (oz)
81,173
62,936
275,962
195,617
Ore mined (kt)
3,705
4,861
21,846
18,061
Waste removed (kt)
25,793
15,880
74,800
72,166
Total material mined (kt)
29,499
20,741
96,646
90,227
Strip ratio
7.0
3.3
3.4
4.0
Ore stacked (kt)
3,705
4,861
21,846
18,061
Gold grade stacked (g/t)
0.43
0.60
0.45
0.56
Average realized gold price ($/oz
sold)
$
1,971
$
1,719
$
1,950
$
1,783
Cost of sales ($/oz gold sold)
$
1,095
$
1,004
$
1,047
$
1,053
Cash costs ($/oz gold sold) (13)
$
1,097
$
1,010
$
1,049
$
1,056
AISC ($/oz gold sold) (13)
$
1,170
$
1,160
$
1,349
$
1,378
(13)
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.
For the three months ended December 31, 2023 and 2022, Marigold
produced 82,794 and 62,875 ounces of gold, respectively. For the
twelve months ended December 31, 2023 and 2022, Marigold produced
278,488 and 194,668 ounces of gold, respectively, a record for the
operation over its more than 30-year operating history and in line
with full-year guidance. Fourth quarter 2023 cost of sales of
$1,095 per payable ounce and AISC of $1,170 per payable ounce were
in line with expectations resulting in full year 2023, cost of
sales of $1,047 per payable ounce and AISC of $1,349 per payable
ounce.
Seabee, Canada
Three Months Ended
Twelve Months Ended
December 31,
December 31,
Operating Data
2023
2022
2023
2022
Gold produced (oz)
38,757
24,709
90,777
136,125
Gold sold (oz)
32,050
23,500
83,610
133,500
Ore mined (kt)
117
118
443
425
Waste removed (kt)
83
90
307
291
Total material mined (kt)
199
208
750
716
Ore milled (kt)
122
119
445
414
Gold mill feed grade (g/t)
10.14
6.69
6.62
10.36
Gold recovery (%)
97.0
97.2
96.7
98.0
Average realized gold price ($/oz
sold)
$
1,988
$
1,725
$
1,965
$
1,833
Cost of sales ($/oz gold sold)
$
666
$
909
$
991
$
559
Cash costs ($/oz gold sold) (14)
$
666
$
911
$
992
$
561
AISC ($/oz gold sold) (14)
$
916
$
1,234
$
1,427
$
823
(14)
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.
For the three months ended December 31, 2023 and 2022, Seabee
produced 38,757 and 24,709 ounces of gold, respectively, reflecting
strong grades of over 10.1 g/t in the fourth quarter of 2023. For
the twelve months ended December 31, 2023 and 2022, Seabee produced
90,777 and 136,125 ounces of gold, respectively. Underground mining
and plant throughput averaged approximately 1,300 tonnes per day
during the fourth quarter of 2023. Fourth quarter 2023 cost of
sales of $666 per payable ounce and AISC of $916 per payable ounce
resulted in full-year 2023, cost of sales of $991 per payable ounce
and AISC of $1,427 per payable ounce.
As a result of the updates to Mineral Reserves and Mineral
Resources as of year-end 2023, the Company evaluated goodwill and
long-lived assets for impairment. Based on that analysis, the
Company recorded a write-down of $50 million in goodwill at Seabee
in the Company’s financial statements for the year ended December
31, 2023.
Puna, Argentina
Three Months Ended
Twelve Months Ended
December 31,
December 31,
Operating Data
2023
2022
2023
2022
Silver produced ('000 oz)
2,759
2,389
9,688
8,397
Silver sold ('000 oz)
2,830
2,098
9,920
7,864
Lead produced ('000 lb)
13,814
13,422
45,772
41,004
Lead sold ('000 lb)
13,758
10,138
48,640
38,393
Zinc produced ('000 lb)
1,322
3,643
7,127
8,583
Zinc sold ('000 lb)
1,992
1,452
8,166
6,998
Gold equivalent sold ('000 oz) (15)
33,393
25,923
119,423
95,207
Ore mined (kt)
545
455
1,926
1,851
Waste removed (kt)
1,377
2,017
6,240
8,634
Total material mined (kt)
1,921
2,472
8,166
10,485
Strip ratio
2.5
4.4
3.2
4.4
Ore milled (kt)
450
415
1,728
1,638
Silver mill feed grade (g/t)
196.7
186.5
181.1
166.7
Lead mill feed grade (%)
1.46
1.59
1.27
1.23
Zinc mill feed grade (%)
0.26
0.69
0.34
0.49
Silver mill recovery (%)
96.9
95.8
96.3
95.7
Lead mill recovery (%)
95.7
92.0
94.3
92.3
Zinc mill recovery (%)
51.6
57.9
54.6
48.7
Average realized silver price ($/oz
sold)
$
23.23
$
18.58
$
22.82
$
19.47
Cost of sales ($/oz sold)
$
14.07
$
16.53
$
16.49
$
17.48
Cash costs ($/oz silver sold) (16)
$
10.32
$
13.01
$
12.64
$
13.23
AISC ($/oz silver sold) (16)
$
15.51
$
15.97
$
15.37
$
15.50
(15)
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.
(16)
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.
For the three months ended December 31, 2023 and 2022, Puna
produced 2.8 million and 2.4 million ounces of silver,
respectively. For the twelve months ended December 31, 2023 and
2022, Puna produced 9.7 million ounces of silver and 8.4 million
ounces of silver. Full-year 2023 production was a record for the
operations more than 15 year operating life and exceeded the mine’s
original full-year production guidance range. Fourth quarter 2023
cost of sales of $14.07 per payable ounce and AISC of $15.51 per
payable ounce resulted in full-year 2023 cost of sales of $16.49
per payable ounce and AISC of $15.37 per payable ounce.
Mineral Reserves and Mineral Resources (“MRMR”) for Year-End
2023
For a detailed summary by asset, please refer to Item 2.
Properties in the Company’s Annual Report, and for a discussion of
year-over-year changes to the MRMR figures below, please see the
Company’s press release on February 13, 2024 titled, “SSR Mining
Issues Multi-Year Guidance and Technical Reports for all Operating
Assets”. Please note that the information in the Company’s press
release dated February 13, 2024 and the Technical Report Summary
for �pler filed at the same time did not reflect the impact of the
�pler Incident. The operating and economic assumptions, along with
the mineral reserve, mineral resources, cost estimates and other
findings contained in press release and the Technical Report
Summary may no longer be accurate and, when more information is
available regarding the operations at �pler, the TRS may need to
be amended.
As per Subpart 1300 of Regulation S-K, the Company’s year-end
2023 MRMR are presented on an attributable basis.
Conference Call Information
This news release should be read in conjunction with the
Company’s Annual Report on Form 10-K for the year ended December
31, 2023, filed with the U.S. Securities and Exchange Commission
(the “SEC”) and available on the SEC website at www.sec.gov or
www.ssrmining.com.
- Conference call and webcast: Tuesday, February 27, 2024, at
5:00 pm EST.
Toll-free in U.S. and Canada:
+1 (800) 319-4610
All other callers:
+1 (604) 638-5340
Webcast:
http://ir.ssrmining.com/investors/events
- The conference call will be archived and available on our
website. Audio replay will be available for two weeks by
calling:
Toll-free in U.S. and Canada:
+1 (855) 669-9658, replay code 0631
All other callers:
+1 (412) 317-0088, replay code 0631
SSR Mining has created a page on its website where it will be
providing updates on the situation at �pler. Accordingly,
interested parties, investors and others should monitor this
section of our website, in addition to following our press
releases, SEC filings, public conference calls, presentations and
webcasts for more information on the situation at �pler.
About SSR Mining
SSR Mining is listed under the ticker symbol SSRM on the Nasdaq
and the TSX, and SSR on the ASX.
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
include any statements concerning, among other things: the incident
at �pler, including, among other things, the impact on the
Company, the response from the Türkiye government, the length of
time operations will remain suspended and the financial and legal
impact on the Company, 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 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; timing and
impact surrounding suspension or interruption of operations as a
result of regulatory requirements or actions by governmental
authority; renewal of NCIB program; 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 wide ranging,
potentially material and presently uncertain impacts of the
incident at �pler, 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 Company has included important information related to the
incident at �pler in its Annual Report on Form 10-K, which has
been filed with the SEC, including a discussion of risks and
uncertainties resulting from the incident at �pler. You are
strongly encouraged to review the Company's Annual Report on Form
10-K in its entirety.
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.sedarplus.ca, 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.
Qualified Persons
The scientific and technical information concerning our mineral
projects in this news release have been reviewed and verified by a
“qualified person” under subpart 1 of Regulation S-K 1300 (“S-K
1300”). For a description of the key assumptions, parameters and
methods used to estimate mineral reserves and mineral resources
included in this news release, as well as data verification
procedures and a general discussion of the extent to which the
estimates may be affected by any known environmental, permitting,
legal, title, taxation, sociopolitical, marketing or other relevant
factors, please review the Technical Report Summaries for each of
the Company’s material properties, which are available under the
Company’s corporate profile on EDGAR at www.sec.gov.
Cautionary Note to U.S. Investors
This news release includes terms that comply with reporting
standards in Canada under National Instrument 43-101 – Standards of
Disclosure for Mineral Projects (“NI 43-101”), including the terms
“Mineral Reserves” and “Mineral Resources”. NI 43-101 is a rule
developed by the Canadian Securities Administrators that
establishes standards for all public disclosure an issuer makes of
scientific and technical information concerning mineral projects.
The standards of NI 43-101 differ significantly from the
requirements of the SEC. Accordingly, information concerning
mineral deposits set forth herein may not be comparable with
information made in accordance with U.S. standards.
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 U.S GAAP.
Non-GAAP Measure – Net Cash 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)
December 31, 2023
December 31, 2022
Cash and cash equivalents
$
492,393
$
655,453
Restricted cash
$
101
$
33,653
Total Cash
$
492,494
$
689,106
Short and Long Term Portion of Term
Loan
$
—
$
70,000
Face Value of 2019 Convertible Note
$
230,000
$
230,000
Other Debt
$
920
$
1,797
Total Debt
$
230,920
$
301,797
Net Cash (Debt)
$
261,574
$
387,309
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 December 31, 2023, no
borrowings were outstanding on the Company’s $400 million credit
facility with a $100 million accordion feature.
The following table provides a reconciliation of Cash and cash
equivalents to Total liquidity:
As of
(in thousands)
December 31, 2023
December 31, 2022
Cash and cash equivalents
$
492,393
$
655,453
Restricted cash
$
101
$
33,653
Total cash
$
492,494
$
689,106
Borrowing capacity on credit facility
$
400,000
$
200,000
Borrowing capacity on accordion feature of
credit facility
$
100,000
$
100,000
Total liquidity
$
992,494
$
989,106
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 December
31, 2023
(in thousands, unless otherwise noted)
�pler
Marigold
Seabee
Puna
Corporate
Total
Cost of sales (GAAP) (17)
$ 69,259
$ 88,920
$ 21,338
$ 39,822
$ —
$ 219,340
By-product credits
$ (849)
$ (55)
$ (13)
$ (15,310)
$ —
$ (16,227)
Treatment and refining charges
$ —
$ 157
$ 28
$ 4,685
$ —
$ 4,869
Cash costs (non-GAAP)
$ 68,410
$ 89,023
$ 21,353
$ 29,197
$ —
$ 207,982
Sustaining capital expenditures
$ 21,398
$ 4,453
$ 6,774
$ 3,293
$ —
$ 35,918
Sustaining exploration and evaluation
expense
$ —
$ 872
$ —
$ —
$ —
$ 872
Reclamation cost accretion and
amortization (18)
$ 427
$ 609
$ 1,239
$ 11,302
$ —
$ 13,578
General and administrative expense and
stock-based compensation expense
$ 1,384
$ —
$ —
$ 114
$ 13,582
$ 15,080
Total AISC (non-GAAP)
$ 91,619
$ 94,957
$ 29,365
$ 43,906
$ 13,582
$ 273,429
Gold sold (oz)
59,694
81,173
32,050
—
—
172,917
Silver sold (oz)
—
—
—
2,830,057
—
2,830,057
Gold equivalent sold (oz) (19, 20)
59,694
81,173
32,050
33,277
—
206,194
Cost of sales per gold ounces sold
$ 1,160
$ 1,095
$ 666
N/A
N/A
N/A
Cost of sales per silver ounces sold
N/A
N/A
N/A
$ 14.07
N/A
N/A
Cost of sales per gold equivalent ounce
sold
$ 1,160
$ 1,095
$ 666
$ 1,197
N/A
$ 1,064
Cash cost per gold ounce sold
$ 1,146
$ 1,097
$ 666
N/A
N/A
N/A
Cash cost per silver ounce sold
N/A
N/A
N/A
$ 10.32
N/A
N/A
Cash cost per gold equivalent ounce
sold
$ 1,146
$ 1,097
$ 666
$ 877
N/A
$ 1,008
AISC per gold ounce sold
$ 1,535
$ 1,170
$ 916
N/A
N/A
N/A
AISC per silver ounce sold
N/A
N/A
N/A
$ 15.51
N/A
N/A
AISC per gold equivalent ounce sold
$ 1,535
$ 1,170
$ 916
$ 1,319
N/A
$ 1,326
Three Months Ended December
31, 2022
(in thousands, unless otherwise noted)
�pler
Marigold
Seabee
Puna
Corporate
Total
Cost of sales (GAAP) (17)
$ 63,839
$ 63,173
$ 21,360
$ 34,669
$ —
$ 183,041
By-product credits
$ (726)
$ (30)
$ (14)
$ (11,107)
$ —
$ (11,877)
Treatment and refining charges
$ —
$ 393
$ 53
$ 3,723
$ —
$ 4,169
Cash costs (non-GAAP)
$ 63,113
$ 63,536
$ 21,399
$ 27,286
$ —
$ 175,334
Sustaining capital expenditures
$ 11,175
$ 8,083
$ 6,664
$ 2,361
$ —
$ 27,519
Sustaining exploration and evaluation
expense
$ —
$ 800
$ —
$ 3,388
$ —
$ 4,951
Reclamation cost accretion and
amortization
$ 643
$ 585
$ 930
$ 432
$ —
$ 2,590
General and administrative expense and
stock-based compensation expense
$ 1,125
$ —
$ —
$ 33
$ 22,081
$ 23,239
Total AISC (non-GAAP)
$ 76,055
$ 73,004
$ 28,993
$ 33,499
$ 22,081
$ 233,632
Gold sold (oz)
59,949
62,936
23,500
—
—
146,385
Silver sold (oz)
—
—
—
2,097,482
—
2,097,482
Gold equivalent sold (oz) (19, 20)
59,949
62,936
23,500
25,657
—
172,042
Cost of sales per gold ounces sold
$ 1,065
$ 1,004
$ 909
N/A
N/A
N/A
Cost of sales per silver ounces sold
N/A
N/A
N/A
$ 16.53
N/A
N/A
Cost of sales per gold equivalent ounce
sold
$ 1,065
$ 1,004
$ 909
$ 1,351
N/A
$ 1,064
Cash cost per gold ounce sold
$ 1,053
$ 1,010
$ 911
N/A
N/A
N/A
Cash cost per silver ounce sold
N/A
N/A
N/A
$ 13.01
N/A
N/A
Cash cost per gold equivalent ounce
sold
$ 1,053
$ 1,010
$ 911
$ 1,063
N/A
$ 1,019
AISC per gold ounce sold
$ 1,269
$ 1,160
$ 1,234
N/A
N/A
N/A
AISC per silver ounce sold
N/A
N/A
N/A
$ 15.97
N/A
N/A
AISC per gold equivalent ounce sold
$ 1,269
$ 1,160
$ 1,234
$ 1,306
N/A
$ 1,358
(17)
Excludes depreciation, depletion, and
amortization.
(18)
During the fourth quarter of 2023, the
Company identified an adjustment of $10.5 million related to 2023
asset retirement cost depreciation, which was erroneously excluded
from Puna's AISC calculation. The Company recognized the total
adjustment in the fourth quarter of 2023 and the impact to prior
periods was not material. The adjustment only impacts the AISC
calculation and does not impact Exploration, evaluation and
reclamation costs or Net income (loss) attributable to SSR Mining
shareholders in the Company's Consolidated Statements of
Operations.
(19)
Gold equivalent ounces are calculated
using the silver ounces produced or sold multiplied by the ratio of
the silver price to the gold price, using the average LBMA prices
for the period. The Company does not include copper, lead, or zinc
as they are considered by-products.
(20)
Gold equivalent ounces sold may not
re-calculate based on amounts presented in this table due to
rounding
Year Ended December 31,
2023
(in thousands, unless otherwise noted)
�pler
Marigold
Seabee
Puna
Corporate
Total
Cost of sales (GAAP) (21)
$ 268,628
$ 289,063
$ 82,898
$ 163,558
$ —
$ 804,147
By-product credits
$ (3,523)
$ (154)
$ (54)
$ (56,773)
$ —
$ (60,504)
Treatment and refining charges
$ —
$ 666
$ 101
$ 18,649
$ —
$ 19,416
Cash costs (non-GAAP)
$ 265,105
$ 289,575
$ 82,945
$ 125,434
$ —
$ 763,059
Sustaining capital expenditures
$ 50,982
$ 79,151
$ 32,994
$ 13,193
$ —
$ 176,320
Sustaining exploration and evaluation
expense
$ —
$ 983
$ —
$ —
$ —
$ 983
Reclamation cost accretion and
amortization (22)
$ 1,709
$ 2,628
$ 3,347
$ 13,598
$ —
$ 21,282
General and administrative expense and
stock-based compensation expense
$ 5,479
$ —
$ —
$ 246
$ 61,721
$ 67,446
Total AISC (non-GAAP)
$ 323,275
$ 372,337
$ 119,286
$ 152,471
$ 61,721
$ 1,029,090
Gold sold (oz)
225,599
275,962
83,610
—
—
585,171
Silver sold (oz)
—
—
—
9,920,262
—
9,920,262
Gold equivalent sold (oz) (23, 24)
225,599
275,962
83,610
119,423
—
704,594
Cost of sales per gold ounces sold
$ 1,191
$ 1,047
$ 991
N/A
N/A
N/A
Cost of sales per silver ounces sold
N/A
N/A
N/A
$ 16.49
N/A
N/A
Cost of sales per gold equivalent ounce
sold
$ 1,191
$ 1,047
$ 991
$ 1,370
N/A
$ 1,141
Cash cost per gold ounce sold
$ 1,175
$ 1,049
$ 992
N/A
N/A
N/A
Cash cost per silver ounce sold
N/A
N/A
N/A
$ 12.64
N/A
N/A
Cash cost per gold equivalent ounce
sold
$ 1,175
$ 1,049
$ 992
$ 1,050
N/A
$ 1,083
AISC per gold ounce sold
$ 1,433
$ 1,349
$ 1,427
N/A
N/A
N/A
AISC per silver ounce sold
N/A
N/A
N/A
$ 15.37
N/A
N/A
AISC per gold equivalent ounce sold
$ 1,433
$ 1,349
$ 1,427
$ 1,277
N/A
$ 1,461
Year Ended December 31,
2022
(in thousands, unless otherwise noted)
�pler
Marigold
Seabee
Puna
Corporate
Total
Cost of sales (GAAP) (21)
$ 189,825
$ 206,014
$ 74,679
$ 137,424
$ —
$ 607,942
By-product credits
$ (2,928)
$ (125)
$ (111)
$ (48,124)
$ —
$ (51,288)
Treatment and refining charges
$ —
$ 693
$ 316
$ 14,753
$ —
$ 15,762
Cash costs (non-GAAP)
$ 186,897
$ 206,582
$ 74,884
$ 104,053
$ —
$ 572,416
Sustaining capital expenditures
$ 34,064
$ 53,514
$ 32,980
$ 10,446
$ —
$ 131,004
Sustaining exploration and evaluation
expense
$ —
$ 7,377
$ —
$ 5,372
$ —
$ 12,749
Care and maintenance (25)
$ 31,067
$ —
$ —
$ —
$ —
$ 31,067
Reclamation cost accretion and
amortization
$ 1,320
$ 2,181
$ 1,983
$ 1,726
$ —
$ 7,210
General and administrative expense and
stock-based compensation expense
$ 2,794
$ 1
$ 11
$ 266
$ 68,588
$ 71,660
Total AISC (non-GAAP)
$ 256,142
$ 269,655
$ 109,858
$ 121,863
$ 68,588
$ 826,106
Gold sold (oz)
192,811
195,617
133,500
—
—
521,928
Silver sold (oz)
—
—
—
7,863,646
—
7,863,646
Gold equivalent sold (oz) (23, 24)
192,811
195,617
133,500
95,207
—
617,135
Cost of sales per gold ounces sold
$ 985
$ 1,053
$ 559
N/A
N/A
N/A
Cost of sales per silver ounces sold
N/A
N/A
N/A
$ 17.48
N/A
N/A
Cost of sales per gold equivalent ounce
sold
$ 985
$ 1,053
$ 559
$ 1,443
N/A
$ 985
Cash cost per gold ounce sold
$ 969
$ 1,056
$ 561
N/A
N/A
N/A
Cash cost per silver ounce sold
N/A
N/A
N/A
$ 13.23
N/A
N/A
Cash cost per gold equivalent ounce
sold
$ 969
$ 1,056
$ 561
$ 1,093
N/A
$ 928
AISC per gold ounce sold
$ 1,328
$ 1,378
$ 823
N/A
N/A
N/A
AISC per silver ounce sold
N/A
N/A
N/A
$ 15.50
N/A
N/A
AISC per gold equivalent ounce sold
$ 1,328
$ 1,378
$ 823
$ 1,280
N/A
$ 1,339
(21)
Excludes depreciation, depletion, and
amortization
(22)
During the fourth quarter of 2023, the
Company identified an adjustment of $10.5 million related to 2023
asset retirement cost depreciation, which was erroneously excluded
from Puna's AISC calculation. The Company recognized the total
adjustment in the fourth quarter of 2023 and the impact to prior
periods was not material. The adjustment only impacts the AISC
calculation and does not impact Exploration, evaluation and
reclamation costs or Net income (loss) attributable to SSR Mining
shareholders in the Company's Consolidated Statements of
Operations.
(23)
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.
(24)
Gold equivalent ounces sold may not
re-calculate based on amounts presented in this table due to
rounding.
(25)
Care and maintenance expense in the AISC
calculation only includes direct costs, as depreciation is not
included in the calculation of AISC.
The following tables provide a reconciliation
of cost of sales to cash costs and AISC used in the calculation of
2024 cost guidance:
(operating guidance) (26)
Marigold
Seabee
Puna
Corporate
Gold Production
koz
155 – 175
75 – 85
—
—
Silver Production
Moz
—
—
8.75 – 9.50
—
Gold Equivalent Production
koz
155 – 175
75 – 85
110 – 120
—
Gold Sold
koz
155 – 175
75 – 85
—
—
Silver Sold
Moz
—
—
8.75 – 9.50
—
Gold Equivalent Sold
koz
155 – 175
75 – 85
110 – 120
—
Cost of Sales (GAAP) (27)
$M
201 – 235
75 – 85
140 – 162
—
By-Product Credits + Treatment &
Refining Costs
$M
—
—
(45)
—
Cash Cost (non-GAAP) (28)
$M
202 – 235
75 – 85
96 – 117
—
Sustaining Capital Expenditures (29)
$M
37
40
17
—
Reclamation Cost Accretion &
Amortization
$M
3
3
13
—
General & Administrative
$M
—
—
—
60 – 65
All-In Sustaining Cost (non-GAAP) (28)
$M
241 – 274
118 – 128
125 – 147
60 – 65
Cost of Sales per Ounce (GAAP)
(27)
$/oz
1,300 – 1,340
990 – 1,030
16.50 – 18.00
—
Cash Cost per Ounce (non-GAAP)
(28)
$/oz
1,300 – 1,340
990 – 1,030
11.50 – 13.00
—
All-In Sustaining Cost per Ounce
(non-GAAP) (28)
$/oz
1,535 – 1,575
1,495 – 1,535
14.75 – 16.25
—
Growth Capital Expenditures
$M
1
2
—
—
Growth Exploration and Resource
Development Expenditures (30)
$M
9
15
10
4
Total Growth Capital
$M
10
17
10
4
(26)
Figures may not add due to rounding.
(27)
Excludes depreciation, depletion, and
amortization.
(28)
SSR Mining reports the non-GAAP financial
measures of cash costs and AISC per payable ounce of gold and
silver sold to manage and evaluate operating performance at �pler,
Marigold, Seabee and Puna. See “Cautionary Note Regarding Non-GAAP
Measures” at the end of this press release for an explanation of
these financial measures and a reconciliation of these financial
measures to cost of sales, previously referred to as production
costs, which is the most comparable GAAP financial measures. AISC
includes reclamation cost accretion and amortization and certain
lease payments.
(29)
Includes sustaining exploration and
evaluation expenditures. Includes approximately $1 million in
expensed sustaining exploration at Marigold and $24 million in
underground mine development at Seabee.
(30)
All growth exploration and resource
development spend is expensed. Growth exploration includes project
studies and evaluation.
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
Twelve Months Ended
(in thousands of US dollars, except per
share data)
December 31,
December 31,
2023
2022
2023
2022
Net income (loss) attributable to equity
holders of SSR Mining (GAAP)
$
(217,845)
$
93,884
$
(98,007)
$
194,140
Interest saving on convertible notes, net
of tax
$
—
$
1,233
$
—
$
4,910
Net income (loss) used in the calculation
of diluted net income per share
$
(217,845)
$
95,117
$
(98,007)
$
199,050
Weighted-average shares used in the
calculation of net income (loss) and adjusted net income (loss) per
share
Basic
203,566
206,612
204,714
209,883
Diluted
203,566
219,227
204,714
222,481
Net income (loss) per share attributable
to common stockholders (GAAP)
Basic
$
(1.07)
$
0.45
$
(0.48)
$
0.92
Diluted
$
(1.07)
$
0.43
$
(0.48)
$
0.89
Adjustments:
Foreign exchange loss (gain) (31)
$
—
$
12,727
$
—
$
32,460
Gain on acquisition of Kartaltepe
$
—
$
(81,852)
$
—
$
(81,852)
Loss (gain) on sale of mineral properties,
plant and equipment
$
(1,610)
$
288
$
—
$
1,501
Transaction and integration costs (32)
$
(406)
$
—
$
—
$
1,561
SEC conversion costs
$
—
$
—
$
—
$
1,255
Impairment charges (33)
$
338,097
$
—
$
340,734
$
—
Changes in fair value of marketable
securities
$
(3,656)
$
(4,438)
$
(4,221)
$
(602)
Devaluation of ARS (34)
$
26,074
$
—
$
26,074
$
—
Income tax impact related to above
adjustments
$
(9,041)
$
1,079
$
(9,826)
$
(966)
Foreign exchange (gain) loss and
inflationary impacts on tax balances (31)
$
(4,536)
$
3,892
$
(16,907)
$
(14,128)
Impact of income tax rate change in
Türkiye (35)
$
—
$
—
$
37,170
$
—
Other tax adjustments (36)
$
—
$
—
$
1,477
$
11,445
Adjusted net income (loss) attributable to
equity holders of SSR Mining (Non-GAAP)
$
127,077
$
25,580
$
276,494
$
144,814
Adjusted net income (loss) per share
attributable to SSR Mining shareholders (Non-GAAP)
Basic
$
0.62
$
0.12
$
1.35
$
0.69
Diluted (37)
$
0.59
$
0.12
$
1.29
$
0.67
(31)
Effective January 1, 2023, the Company no
longer adjusts for the fluctuations of foreign exchange gains and
losses.
(32)
Represents the transaction of integration
costs of $0.4 million for the acquisition of Artmin during the year
ended December 31, 2023 and $1.6 million for the sale of Pitarrilla
during the year ended December 31, 2022.
(33)
Represents the impairment of $279.3
million related to �pler mineral properties and exploration and
evaluation assets (amount is presented net of pre-tax attributable
to non-controlling interest of $69.8 million), $49.8 million
related to Seabee goodwill, $9.0 million write-off of capitalized
cloud computing arrangement (amount is presented net of pre-tax
attributable to non-controlling interest of $0.8 million), and $2.6
million related to supplies inventories during the year ended
December 31, 2023. Represents impairment charges related to the
Royalty Portfolio sale, based on the differences between the
carrying amount of the assets within the Royalty Portfolio, and the
estimated net transaction price for the year ended December 31,
2022. See Note 7 to the Consolidated Financial Statements for
further details.
(34)
Represents the foreign exchange net loss
due to the measures implemented by the Argentine government during
the fourth quarter of 2023 which included foreign exchange losses
due to the official ARS exchange rate change, foreign exchange
gains related to the conversion of a portion of export proceeds at
a market exchange rate, and the foreign exchange loss on the
utilization of blue chip swaps to convert ARS to USD and manage
currency risk. See Currency Risk in Item 7A. Quantitative and
Qualitative Disclosures About Market Risk in the Company’s Annual
Report for further details.
(35)
Represents the corporate income tax rate
change from 20% to 25% during the year ended December 31, 2023.
(36)
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 during the year ended
December 31, 2023. Represents charges related to a tax settlement
and an uncertain tax position during the year ended December 31,
2022.
(37)
Adjusted net income (loss) per diluted
share attributable to SSR Mining shareholders is calculated using
diluted common shares, which are calculated in accordance with
GAAP. For the year ended December 31, 2023, $4.9 million interest
saving on 2019 Notes, net of tax, and potentially dilutive shares
of approximately 12.9 million were excluded from the computation of
diluted loss per common share attributable to SSR Mining
shareholders in the Consolidated Statement of Operations as they
were antidilutive. These interest savings and shares were included
in the computation of adjusted net income (loss) per diluted share
attributable to SSR Mining shareholders for the year ended December
31, 2023.
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
Twelve Months Ended
(in thousands of US dollars, except per
share data)
December 31,
December 31
2023
2022
2023
2022
Net cash provided by operating activities
(GAAP)
$
203,159
$
118,097
$
421,725
$
160,896
Expenditures on mineral properties, plant,
and equipment (38)
$
(58,789)
$
(46,198)
$
(223,422)
$
(137,515)
Free cash flow (non-GAAP)
$
144,370
$
71,899
$
198,303
$
23,381
(38)
Represents purchases of plant and
equipment, excluding purchases of mineral properties.
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
Twelve Months Ended
(in thousands of US dollars, except per
share data)
December 31,
December 31
2023
2022
2023
2022
Net cash provided by operating activities
(GAAP)
$
203,159
$
118,097
$
421,725
$
160,896
Net change in operating assets and
liabilities
$
15,229
$
(22,634)
$
134,147
$
147,270
Cash generated by (used in) operating
activities before changes in working capital (non-GAAP)
$
218,388
$
95,463
$
555,872
$
308,166
Expenditures on mineral properties, plant,
and equipment (39)
$
(58,789)
$
(46,198)
$
(223,422)
$
(137,515)
Free cash flow before changes in working
capital (non-GAAP)
$
159,599
$
49,265
$
332,450
$
170,651
(39)
Represents purchases of plant and
equipment, excluding purchases of mineral properties.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240227512657/en/
SSR Mining Inc. E-Mail: invest@ssrmining.com Phone: +1 (888)
338-0046
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Grafico Azioni SSR Mining (ASX:SSR)
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Da Nov 2024 a Dic 2024
Grafico Azioni SSR Mining (ASX:SSR)
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Da Dic 2023 a Dic 2024
