DENVER–(BUSINESS WIRE)–SSR Mining Inc. (NASDAQ/TSX: SSRM, ASX: SSR) (“SSR Mining” or the “Company”) reports consolidated financial results for the first quarter ended March 31, 2024, as well as an update on the February 13, 2024 incident at the Çöpler mine (the “Çöpler Incident”).
Çöpler Update
Our primary focus at Çöpler continues to be the return of our missing colleagues to their families. Following the recovery of four of our missing colleagues, recovery efforts for the five remaining individuals continue. To-date over 6.7 million tonnes of heap leach material has been relocated as part of the ongoing recovery, containment and remediation activity, including 4.2 million tonnes from the Sabırlı Valley.
SSR Mining currently expects the completion of the removal of all displaced heap leach material resulting from the Çöpler Incident out of the Sabırlı Valley and into temporary storage locations in the third quarter of 2024. Concurrently, containment efforts have been completed alongside the removal of the displaced material with the installation of a grout curtain, coffer dam and buttress as well as the ongoing installation of pumping systems and diversion channels in the Sabırlı Valley.
In parallel with the recovery and containment work, the Company is progressing a remediation plan following comprehensive consultation and evaluations with various Turkish government agencies, ministries, independent experts and external consultants. The remediation plan will be submitted for government approval in the second quarter of 2024 and will include, among other things, the construction of a permanent storage facility for the displaced heap leach material. The design of the storage facility is capable of containing the approximately 18 to 20 million tonnes of displaced material in an area referred to as the East Storage Facility (see Figure 1).
The remediation work is expected to cost between $250 to $300 million on a 100% basis, in addition to the approximately $22.5 million incurred as of March 31, 2024. The remediation efforts are expected to be implemented over a period of 24 to 36 months. With a total cash position of $467 million at the end of the first quarter 2024, ongoing cash flow from three operations, and access to an additional $400 million revolving credit facility, the Company remains well positioned to fund these remediation commitments.
As part of the remediation plan, the heap leach pad will be permanently closed and no further heap leach processing will take place at Çöpler. In order to restart the operations, the Company will require the necessary operating permits and approvals. Once all necessary regulatory approvals, including the Environmental Impact Assessment (EIA) and operating permits, are reinstated, it is anticipated that initial ore processing at Çöpler will occur exclusively through the sulfide plant, which will process stockpiled material while Çöpler’s mining team remains focused on completing the recovery and remediation work. As of the end of 2023, sulfide stockpiles totaled 10.8 million tonnes of ore at a grade of 2.0 grams per tonne gold, or approximately 706,000 contained ounces. At this time, the Company is not able to estimate when and under what conditions operations will resume at Çöpler.
In the first quarter of 2024, SSR Mining produced 101,873 gold equivalent ounces at cost of sales of $1,166 per payable ounce and AISC of $1,569 per payable ounce, which includes care and maintenance costs incurred at Çöpler. Excluding any production from Çöpler, and in line with existing guidance, SSR Mining expects Marigold, Seabee and Puna will produce a consolidated total of 340,000 to 380,000 gold equivalent ounces in 2024. (1)
More information related to the Çöpler Incident is included in the Company’s Annual Report on Form 10-K filed on February 27, 2024 and in the Company’s Quarterly Report on Form 10-Q filed on May 8, 2024. Further updates on the Çöpler Incident, as and when available, will continue to be provided through press releases and posts to the Company’s website.
| (1) | The Company reports non-GAAP financial measures including all-in sustaining costs (“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 this financial measure and a reconciliation to cost of sales, which is the most comparable GAAP financial measure. |
First Quarter 2024 Summary: (2)
(All figures are in US dollars unless otherwise noted)
| (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 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.
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Financial and Operating Summary
A summary of the Company’s consolidated financial and operating results for the three months ended March 31, 2024 and March 31, 2023 are presented below:
| (in thousands of US dollars, except per share data) |
| Three Months Ended March 31, | ||||||||
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| 2024 | 2023 | ||||||
| Financial Results |
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| Revenue |
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| $ | 230,234 |
| $ | 314,614 |
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| Cost of sales |
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| $ | 125,901 |
| $ | 199,297 |
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| Operating income (loss) |
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| $ | (376,424 | ) | $ | 36,985 |
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| Net income (loss) |
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| $ | (358,162 | ) | $ | 29,004 |
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| Net income (loss) attributable to SSR Mining shareholders |
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| $ | (287,082 | ) | $ | 29,813 |
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| Basic net income (loss) per share attributable to SSR Mining shareholders |
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| $ | (1.42 | ) | $ | 0.14 |
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| Diluted net income (loss) per share attributable to SSR Mining shareholders |
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| $ | (1.42 | ) | $ | 0.14 |
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| Adjusted attributable net income (3) |
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| $ | 22,510 |
| $ | 21,274 |
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| Adjusted basic attributable net income per share (3) |
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| $ | 0.11 |
| $ | 0.10 |
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| Adjusted diluted attributable net income per share (3) |
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| $ | 0.11 |
| $ | 0.10 |
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| Cash generated by operating activities before changes in working capital (3) |
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| $ | 32,257 |
| $ | 90,869 |
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| Cash generated by operating activities |
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| $ | 24,631 |
| $ | 2,967 |
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| Cash used in investing activities |
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| $ | (36,778 | ) | $ | (51,881 | ) | ||
| Cash used in financing activities |
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| $ | (10,820 | ) | $ | (38,189 | ) | ||
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| Operating Results |
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| Gold produced (oz) |
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| 80,280 |
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| 122,821 |
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| Gold sold (oz) |
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| 89,279 |
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| 126,111 |
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| Silver produced (‘000 oz) |
|
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| 1,915 |
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| 2,015 |
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| Silver sold (‘000 oz) |
|
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| 1,659 |
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| 2,382 |
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| Lead produced (‘000 lb) (4) |
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| 9,998 |
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| 11,361 |
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| Lead sold (‘000 lb) (4) |
|
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| 8,666 |
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| 13,370 |
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| Zinc produced (‘000 lb) (4) |
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| 1,217 |
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| 2,480 |
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| Zinc sold (‘000 lb) (4) |
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| 510 |
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| 3,687 |
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| Gold equivalent produced (oz) (5) |
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| 101,873 |
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| 146,894 |
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| Gold equivalent sold (oz) (5) |
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| 107,983 |
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| 154,557 |
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| Average realized gold price ($/oz sold) |
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| $ | 2,061 |
| $ | 1,902 |
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| Average realized silver price ($/oz sold) |
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| $ | 22.18 |
| $ | 23.38 |
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| Cost of sales per gold equivalent ounce sold (5) |
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| $ | 1,166 |
| $ | 1,289 |
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| Cash cost per gold equivalent ounce sold (3,5) |
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| $ | 1,097 |
| $ | 1,204 |
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| AISC per gold equivalent ounce sold (3,5) |
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| $ | 1,569 |
| $ | 1,693 |
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| Financial Position | March 31, 2024 | December 31, 2023 | ||||||||
| Cash and cash equivalents | $ | 467,010 | $ | 492,393 |
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| Current assets | $ | 1,081,870 | $ | 1,196,476 |
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| Total assets | $ | 5,251,782 | $ | 5,385,773 |
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| Current liabilities | $ | 352,768 | $ | 170,573 |
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| Total liabilities | $ | 1,312,954 | $ | 1,081,570 |
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| Working capital (6) | $ | 729,102 | $ | 1,025,903 |
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| (3) | 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 (loss) attributable to SSR Mining shareholders, 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. |
| (4) | 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. |
| (5) | Gold equivalent ounces are calculated by 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. |
| (6) | Working capital is defined as current assets less current liabilities. |
Çöpler, Türkiye
(amounts presented on 100% basis)
Operations at Çöpler were suspended following the Çöpler Incident on February 13, 2024. During the suspension, care and maintenance expense was recorded which represents direct costs not associated with the environmental reclamation and remediation costs and depreciation. No production was recorded following February 13, 2024.
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| Three Months Ended March 31, | ||||
| Operating Data |
| 2024 | 2023 | |||
| Gold produced (oz) |
| 21,827 |
| 55,074 | ||
| Gold sold (oz) |
| 23,960 |
| 58,014 | ||
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| Ore mined (kt) |
| 266 |
| 1,179 | ||
| Waste removed (kt) |
| 3,571 |
| 5,375 | ||
| Total material mined (kt) |
| 3,837 |
| 6,554 | ||
| Strip ratio |
| 13.4 |
| 4.6 | ||
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| Ore stacked (kt) |
| 184 |
| 188 | ||
| Gold grade stacked (g/t) |
| 1.17 |
| 1.22 | ||
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| Ore milled (kt) |
| 343 |
| 724 | ||
| Gold mill feed grade (g/t) |
| 2.39 |
| 2.47 | ||
| Gold recovery (%) |
| 78.9 |
| 87.7 | ||
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| Average realized gold price ($/oz sold) | $ | 2,013 | $ | 1,890 | ||
| Cost of sales ($/oz gold sold) | $ | 1,019 | $ | 1,287 | ||
| Cash costs ($/oz gold sold) (7) | $ | 1,020 | $ | 1,272 | ||
| AISC ($/oz gold sold) (7) | $ | 1,573 | $ | 1,420 | ||
| (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 Çöpler. See “Cautionary Note Regarding Non-GAAP Financial Measures” at the end of this press release 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 March 31, 2024 and 2023, Çöpler produced 21,827 and 55,074 ounces of gold, respectively. During the first quarter of 2024, Çöpler reported cost of sales of $1,019 per payable ounce and AISC of $1,573 per payable ounce.
As a result of the Çöpler Incident, the Company plans to permanently close the heap leach pad; therefore, the Company fully impaired the heap leach pad inventory and related heap leach pad processing facilities. Accordingly, during the three months ended March 31, 2024, the Company recorded non-cash impairment charges of $76.0 million related to Inventories and $38.2 million related to Mineral properties, plant and equipment, net, for a total non-cash impairment charge of $114.2 million.
Marigold, USA
|
| Three Months Ended March 31, | |||||
| Operating Data | 2024 | 2023 | ||||
| Gold produced (oz) |
| 34,680 |
| 51,979 | ||
| Gold sold (oz) |
| 36,869 |
| 51,297 | ||
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| Ore mined (kt) |
| 5,721 |
| 5,367 | ||
| Waste removed (kt) |
| 20,587 |
| 17,029 | ||
| Total material mined (kt) |
| 26,309 |
| 22,396 | ||
| Strip ratio |
| 3.6 |
| 3.2 | ||
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| Ore stacked (kt) |
| 5,721 |
| 5,367 | ||
| Gold grade stacked (g/t) |
| 0.13 |
| 0.42 | ||
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| Average realized gold price ($/oz sold) | $ | 2,074 | $ | 1,913 | ||
| Cost of sales costs ($/oz gold sold) | $ | 1,331 | $ | 1,063 | ||
| Cash costs ($/oz gold sold) (8) | $ | 1,333 | $ | 1,066 | ||
| AISC ($/oz gold sold) (8) | $ | 1,430 | $ | 1,663 | ||
| (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 Marigold. See “Cautionary Note Regarding Non-GAAP Financial Measures” at the end of this press release 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 March 31, 2024 and 2023, Marigold produced 34,680 and 51,979 ounces of gold, respectively. During the first quarter of 2024, Marigold reported cost of sales of $1,331 per payable ounce and AISC of $1,430 per payable ounce. As planned, first quarter 2024 results include increased waste stripping to support near-term activities at Red Dot, which is a key focus for 2024 and 2025.
Full-year 2024 production guidance for Marigold is 155,000 to 175,000 ounces of gold at mine site cost of sales of $1,300 to $1,340 per payable ounce and AISC of $1,535 to $1,575 per payable ounce. Production guidance remains 70% weighted to the second half of 2024, with the fourth quarter of 2024 expected to be the strongest quarter of production for the year.
Seabee, Canada
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| Three Months Ended March 31, | |||||
| Operating Data | 2024 | 2023 | ||||
| Gold produced (oz) |
| 23,773 |
| 15,768 | ||
| Gold sold (oz) |
| 28,450 |
| 16,800 | ||
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| Ore mined (kt) |
| 104 |
| 99 | ||
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| Ore milled (kt) |
| 115 |
| 112 | ||
| Gold mill feed grade (g/t) |
| 6.51 |
| 4.60 | ||
| Gold recovery (%) |
| 96.4 |
| 96.1 | ||
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| Average realized gold price ($/oz sold) | $ | 2,070 | $ | 1,910 | ||
| Cost of sales ($/oz gold sold) | $ | 859 | $ | 1,385 | ||
| Cash costs ($/oz gold sold) (9) | $ | 859 | $ | 1,386 | ||
| AISC ($/oz gold sold) (9) | $ | 1,416 | $ | 2,207 | ||
| (9) | 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 “Cautionary Note Regarding Non-GAAP Financial Measures” at the end of this press release 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 March 31, 2024 and 2023, Seabee produced 23,773 and 15,768 ounces of gold, respectively. During the first quarter of 2024, Seabee reported cost of sales of $859 per payable ounce and AISC of $1,416 per payable ounce.
Full-year 2024 production guidance at Seabee is 75,000 to 85,000 ounces of gold at mine site cost of sales of $990 to $1,030 per payable ounce and AISC of $1,495 to $1,535 per payable ounce. Grades are expected to average between 5.0 and 6.0g/t over the year.
Puna, Argentina
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| Three Months Ended March 31, | |||||
| Operating Data | 2024 | 2023 | ||||
| Silver produced (‘000 oz) |
| 1,915 |
| 2,015 | ||
| Silver sold (‘000 oz) |
| 1,659 |
| 2,382 | ||
| Lead produced (‘000 lb) |
| 9,998 |
| 11,361 | ||
| Lead sold (‘000 lb) |
| 8,666 |
| 13,370 | ||
| Zinc produced (‘000 lb) |
| 1,217 |
| 2,480 | ||
| Zinc sold (‘000 lb) |
| 510 |
| 3,687 | ||
| Gold equivalent sold (‘000 oz) (10) |
| 18,704 |
| 28,446 | ||
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| Ore mined (kt) |
| 263 |
| 349 | ||
| Waste removed (kt) |
| 1,510 |
| 1,984 | ||
| Total material mined (kt) |
| 1,773 |
| 2,333 | ||
| Strip ratio |
| 5.7 |
| 5.7 | ||
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| Ore milled (kt) |
| 417 |
| 415 | ||
| Silver mill feed grade (g/t) |
| 148.5 |
| 157.4 | ||
| Lead mill feed grade (%) |
| 1.16 |
| 1.32 | ||
| Zinc mill feed grade (%) |
| 0.27 |
| 0.44 | ||
| Silver mill recovery (%) |
| 96.2 |
| 96.0 | ||
| Lead mill recovery (%) |
| 93.9 |
| 94.4 | ||
| Zinc mill recovery (%) |
| 49.2 |
| 62.0 | ||
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| Average realized silver price ($/oz sold) | $ | 22.18 | $ | 23.38 | ||
| Cost of sales ($/oz sold) | $ | 16.87 | $ | 19.67 | ||
| Cash costs ($/oz silver sold) (11) | $ | 12.29 | $ | 14.41 | ||
| AISC ($/oz silver sold) (11) | $ | 15.61 | $ | 16.40 | ||
| (10) | 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. |
| (11) | 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 “Cautionary Note Regarding Non-GAAP Financial Measures” at the end of this press release 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 March 31, 2024 and 2023, Puna produced 1.9 and 2.0 million ounces of silver, respectively. Tonnes mined were impacted by significant rainfall in the first quarter. During the first quarter of 2024, Puna reported cost of sales of $16.87 per payable ounce and AISC of $15.61 per payable ounce.
Full-year 2024 production guidance at Puna is 8.75 to 9.50 million ounces of silver at mine site cost of sales of $16.50 to $18.00 per payable ounce and AISC of $14.75 to $16.25 per payable ounce. Production is expected to be 55% weighted to the second half of 2024, driven largely by grades that are expected to peak in the fourth quarter.
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 March 31, 2024, 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.
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| Toll-free in U.S. and Canada: | +1 (844) 763-8274 |
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| All other callers: | +1 (412) 717-9224 |
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| Webcast: |
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| Toll-free in U.S. and Canada: | +1 (855) 669-9658, replay code 0774 |
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| All other callers: | +1 (412) 317-0088, replay code 0774 |
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 (including information incorporated by reference herein) constitute forward-looking information, future oriented financial information, or financial outlooks (collectively “forward-looking information”) within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and are intended to be covered by the safe harbor provided for under these sections. 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, as well as statements written in the future tense. When made, forward-looking statements are based on information known to management at such time and/or management’s good faith belief with respect to future events. Such statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the Company’s forward-looking statements. Many of these factors are beyond the Company’s ability to control or predict. Given these uncertainties, readers are cautioned not to place undue reliance on forward-looking statements.
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 global pandemics, including the duration, severity and scope of a pandemic and potential impacts on mining operations; risks and uncertainties resulting from the incident at Çöpler described in our Annual Report on Form 10-K for the year ended December 31, 2023 and in our quarterly report on Form 10-Q for the quarter end March 31, 2024; and other risk factors detailed from time to time in our reports filed with the Securities and Exchange Commission on EDGAR at www.sec.gov the Canadian securities regulatory authorities on SEDAR at www.sedarplus.ca and on our website at www.ssrmining.com.
Forward-looking information and statements in this news release include any statements concerning, among other things: all information related to the Company’s Çöpler operations, including timelines, outlook, preliminary costs, remediation plans, and possible restart plans; 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; 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.
Contacts
SSR Mining Contacts:
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.
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