MULTI-YEAR
GUIDANCE (1)
- TOTAL 5-YEAR PRODUCTION INCREASES 4% OVER PRIOR LIFE OF MINE
PLANS TO 3.1 MILLION OUNCES GOLD EQUIVALENT, AND INCREASES 9%
INCLUDING CONTRIBUTIONS FROM THE HOD MADEN ACQUISITION
- PRODUCTION PLATFORM APPROACHES 800,000 GOLD EQUIVALENT
OUNCES BY 2027, A 10% CAGR
- AISC EXPECTED TO MEANINGFULLY IMPROVE, TRENDING TOWARDS
$1,300 PER OUNCE BY 2027 AND DRIVING SECTOR LEADING FREE CASH
FLOWS
- POSITIVE FREE CASH FLOW EXPECTED IN 2024, BUILDING FURTHER
ON EXISTING $1 BILLION LIQUIDITY POSITION
- PEER LEADING CAPITAL RETURNS YIELD AND OVERALL RETURNS
STRATEGY EXPECTED TO REMAIN UNCHANGED
- HOD MADEN ON TRACK FOR POSITIVE CONSTRUCTION DECISION
MID-2024; EXPECTED TO DELIVER A +30% PROJECT IRR
TECHNICAL REPORT
SUMMARIES (“TRS”)
- CORPORATE NET ASSET VALUE BASED ON MINERAL RESERVE ONLY
TECHNICAL REPORTS OF GREATER THAN $3 BILLION, OR APPROXIMATELY
US$15 PER SHARE AT CONSENSUS COMMODITY PRICES, INCREASING TO
GREATER THAN $4 BILLION, OR APPROXIMATELY US$20 PER SHARE AT SPOT
COMMODITY PRICES
- TOTAL LIFE OF MINE PRODUCTION INCREASES OVER PRIOR TECHNICAL
REPORTS BY 7% AND 23% RESPECTIVELY, BEFORE AND AFTER THE INCLUSION
OF HOD MADEN
- MORE THAN 85% OF CONSOLIDATED LIFE OF MINE PRODUCTION IN
BOTTOM HALF OF INDUSTRY COST CURVE
- ÇÖPLER TECHNICAL REPORT NET ASSET VALUE OF $1.64 BILLION
BASED ON MINERAL RESERVES ONLY
- ÇÖPLER AVERAGE ANNUAL PRODUCTION OF 281,000 OUNCES OF GOLD
AT AVERAGE COST OF SALES OF $965 PER OUNCE & AISC OF $1,003 PER
OUNCE OVER 15 YEARS, GENERATING OPERATING CASH FLOW OF $197 MILLION
AND FREE CASH FLOW OF $160 MILLION ANNUALLY OVER LIFE OF
MINE
- ÇÖPLER GOLD PRODUCTION IS EXPECTED TO INCREASE TO NEARLY
400,000 OUNCES ANNUALLY BY 2027, A 23% CAGR
- ÇÖPLER TECHNICAL REPORT INCLUDES +30% IRR GRIND-LEACH
CIRCUIT INSTALLATION FOR INITIAL CAPITAL OF $194 MILLION
- MARIGOLD TECHNICAL REPORT NET ASSET VALUE OF $800 MILLION
BASED ON MINERAL RESERVES ONLY
- MARIGOLD AVERAGE ANNUAL PRODUCTION OF 212,000 OUNCES OF GOLD
AT AVERAGE COST OF SALES OF $1,065 PER OUNCE & AISC OF $1,213
PER OUNCE OVER 9 YEARS, GENERATING OPERATING CASH FLOW OF $124
MILLION AND FREE CASH FLOW OF $95 MILLION ANNUALLY OVER LIFE OF
MINE
- MARIGOLD PRODUCTION PROFILE IS EXPECTED TO EXCEED 300,000
OUNCES IN ANNUAL PRODUCTION BY 2029, A 13% CAGR
YEAR-END 2023 MINERAL
RESERVES & MINERAL RESOURCES
- 2023 CONSOLIDATED MINERAL RESERVES, ON AN ATTRIBUTABLE
BASIS, OF NEARLY 8 MILLION OUNCES GOLD EQUIVALENT
- MINERAL RESERVES INCLUDING ATTRIBUTABLE 40% OF HOD MADEN TO
EXCEED 9 MILLION OUNCES GOLD EQUIVALENT
- PORTFOLIO WEIGHTED AVERAGE MINE LIFE BASED ON MINERAL
RESERVES OF AT LEAST 14 YEARS
- C2 MINERAL RESOURCES REMOVED FOLLOWING COMPLETION OF
TECHNICAL WORK RESULTING IN A $349 MILLION NON-CASH IMPACT TO
ÇÖPLER MINERAL PROPERTIES AND FIXED ASSETS VALUE FROM ~$2.80
BILLION TO ~$2.45 BILLION
- ÇAKMAKTEPE MINERAL RESERVES INCREASED 75% TO 3 MILLION
OUNCES GOLD
SSR Mining Inc. (Nasdaq/TSX: SSRM; ASX: SSR) (“SSR Mining” or
the “Company”) announces a comprehensive and positive business
update, including updated life of mine plans and the Company’s
production outlook for 2024 through 2028. In 2023, SSR Mining’s
four operating assets produced 706,894 gold equivalent ounces at
full-year cost of sales of $1,141 per payable ounce and all-in
sustaining costs (“AISC”) of $1,461 per payable ounce. Fourth
quarter 2023 production was 211,226 gold equivalent ounces at cost
of sales of $1,064 per payable ounce and AISC of $1,326 per payable
ounce.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20240211540792/en/
Figure 1. SSR Mining Production History
and Outlook (13) (13) Historical production is reported on a
consolidated basis and is a combination of SSR Mining and Alacer
Gold production figures; 2024 – 2028E based on the mid-point of
five-year guidance; Hod Maden reported on a 40% attributable basis.
(Graphic: Business Wire)
(1)
The Company reports non-GAAP financial
measures including free cash flow and All-In Sustaining Cost
(“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.
In 2024, the Company expects to deliver total consolidated
production of 540,000 to 600,000 gold equivalent ounces at
consolidated cost of sales of $1,300 to $1,350 per payable ounce
and AISC of $1,575 to $1,625 per payable ounce. SSR Mining expects
production and margins to remain stable at these levels through
2026 as the Company delivers the Grind-Leach Circuit and Hod Maden
growth projects, each with an approximately 30% or higher expected
after-tax internal rate of return (“IRR”). First production from
the two projects is expected in 2027, driving significant
production growth towards 800,000 gold equivalent ounces with AISC
trending towards $1,300 per ounce by 2027.
Rod Antal, Executive Chairman of SSR Mining, said, “We are
pleased with the strong results in the fourth quarter of 2023,
successfully delivering on our commitment to produce more than
400,000 gold equivalent ounces in the second half of the year and
generating more than $335 million in operating cash flow and $235
million in free cash flow over the same period. Our business has
now delivered on its production guidance targets for 11 of the last
12 years, reinforcing our reputation as strong and consistent
operators.
This year, we are presenting an extended production guidance
outlook, showcasing a strong growth profile approaching 800,000
gold equivalent ounces at AISC trending towards $1,300 per ounce by
2027. This outlook is the culmination of significant technical work
and asset optimization efforts across the portfolio, including a
nearly 75% increase in Mineral Reserves from Çakmaktepe. The
combination of the increase in Mineral Reserves at Çakmaktepe and
the concurrent investment in a Grind-Leach Circuit to improve gold
recoveries is expected to deliver a doubling of life of mine
production from Çakmaktepe, providing a more than 30% expected
internal rate of return. Overall, as we’ve optimized our mine plans
across the portfolio, we have seen a 7% increase in gold equivalent
production as compared to prior life of mine totals, or more than
20% inclusive of Hod Maden.
This company-wide technical work sets a refreshed and positive
baseline for our business, with steady production in the near-term
and meaningful growth and free cash flow over the five-year period.
Our anticipated growth capital expenditures over the next three
years are supported by our current liquidity position of nearly $1
billion, our ongoing operating cash flow, and our efforts to
finance Hod Maden through a $200 to $300 million project finance
facility. Our strong financial position indicates that we will exit
this growth cycle with a solid balance sheet while still
maintaining our commitment to capital returns. This includes our
quarterly cash dividend, which underpins our baseline commitment to
capital returns and currently yields nearly 3% annually. In
addition, we will continue to supplement these baseline returns
through additional share buybacks.
With a weighted average mine life of at least 14 years, a
production growth trajectory driven by two of the highest returning
projects in the industry, a wealth of additional organic growth
opportunities and a continued commitment to capital returns, our
business begins 2024 in an enviable position. We look forward to
continuing to deliver on our track record of operational
consistency, project execution and value accretive strategic
initiatives in the years to come.”
Full-Year 2024 Outlook & Multi-Year Production
Guidance
SSR Mining reports its updated full-year 2024 outlook that
includes production and cost guidance by asset and on a
consolidated basis. In addition, the Company announces a five-year
production guidance outlook, showcasing a strong growth profile
over the period.
Table 1: Full-Year 2024 Outlook
Operating Guidance (2)
�pler (3)
Marigold
Seabee
Puna
Hod Maden (4)
Other
Consolidated
Gold Production
koz
200 — 220
155 — 175
75 — 85
—
—
—
430 — 480
Silver Production
Moz
—
—
—
8.75 — 9.50
8.75 — 9.50
Gold Equivalent Production
koz AuEq
200 — 220
155 — 175
75 — 85
110 — 120
—
—
540 — 600
Cost of Sales per Ounce (5)
$/oz
1,420 — 1,460
1,300 — 1,340
990 — 1,030
16.50 — 18.00
—
—
1,300 — 1,350
Cash Cost per Ounce (6)
$/oz
1,410 — 1,450
1,300 — 1,340
990 — 1,030
11.50 — 13.00
—
—
1,220 — 1,270
Sustaining Capital Expenditures (7)
$M
29
37
40
17
—
—
123
Reclamation Cost Accretion &
Amortization
$M
2
3
3
13
—
—
21
General & Administrative
$M
—
—
—
—
—
60 — 65
60 — 65
All-In Sustaining Cost per Ounce (5)
$/oz
1,550 — 1,590
1,535 — 1,575
1,495 — 1,535
14.75 — 16.25
—
—
1,575 — 1,625
Growth Capital
$M
77
1
2
—
37
—
117
Growth Exploration and Resource
Development Expense (8)
$M
12
9
15
10
—
4
50
Total Growth Expenditures
$M
89
11
17
10
37
4
167
(2)
Figures may not add due to rounding.
(3)
�pler figures are reported on a 100%
basis. �pler is 80% owned by SSR Mining.
(4)
Hod Maden figures presented as 40%
attributable. Hod Maden is currently 10% owned by SSR Mining. SSR
Mining has the option to increase its ownership to 40% through
funding of 40% of the pre-production capital commitments and up to
$150 million in contingent payments.
(5)
Excludes depreciation, depletion, and
amortization.
(6)
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.
(7)
Includes sustaining exploration and
evaluation expenditures. Includes approximately $9 million in lease
payments at �pler, $1 million of expensed sustaining exploration
at Marigold and $24 million in underground mine development at
Seabee.
(8)
Growth exploration and resource
development expenditures are shown on a 100% basis, of which the
SSR Mining attributable amount totals $48 million. All growth
exploration and resource development spend is expensed. Growth
exploration includes project studies and evaluation.
Table 2: Five-Year Production Outlook
Operating Guidance (9)
2023A
2024E
2025E
2026E
2027E
2028E
�pler (10)
koz Au
221
200 — 220
205 — 225
240 — 260
370 — 400
380 — 415
Marigold
koz Au
278
155 — 175
155 — 175
220 — 240
240 — 270
220 — 250
Seabee (12)
koz Au
91
75 — 85
80 — 90
65 — 75
65 — 75
60 — 80
Puna
Moz Ag
9.7
8.75 — 9.50
8.00 — 8.75
1.20 — 1.95
—
—
Hod Maden (11)
koz AuEq
—
—
—
—
25 — 55
65 — 80
Gold Equivalent Production
koz AuEq
707
540 — 600
540 — 600
540 — 600
700 — 800
725 — 825
(9)
Figures may not add due to rounding.
(10)
�pler figures reported on a 100% basis.
�pler is 80% owned by SSR Mining.
(11)
Hod Maden figures presented as 40%
attributable. Hod Maden is currently 10% owned by SSR Mining. SSR
Mining has the option to increase its ownership to 40% through
funding of 40% of the pre-production capital commitments and up to
$150 million in contingent payments during the construction
period.
(12)
Seabee guidance includes potential Mineral
Resource conversion in 2028.
Guidance Overview (14)
Consolidated production in 2024 is expected to be approximately
60% weighted to the second half of the year, with the strongest
consolidated production period in the fourth quarter. This
production distribution is driven largely by higher grades and
tonnes stacked at Marigold in the second half of 2024. Quarterly
AISC is expected to reflect this production profile, with AISC
trending well above the full-year 2024 guidance range in the first
half reflecting increased waste stripping at Marigold and the
timing of spend at Seabee associated with the winter road season.
AISC in the second half of 2024 are expected to be below the
full-year guidance range. Accordingly, free cash flow generation in
2024 is expected to be strongly weighted to the second half of the
year due to aforementioned production weighting and cost profile,
as well as annual tax and royalty payments incurred in the first
half of 2024. Free cash flow in 2024 is expected to be positive
despite initial growth capital spending for Hod Maden and the
Grind-Leach Circuit of $117 million.
Ç�pler, Türkiye
In 2023, �pler produced 220,999 ounces. 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. 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, reflecting continued operational
improvement efforts.
In 2024, �pler is expected to produce 200,000 to 220,000 ounces
of gold at mine site cost of sales of $1,420 to $1,460 per payable
ounce and AISC of $1,550 to $1,590 per payable ounce. The expected
production profile at �pler is approximately 55% weighted to the
first half of 2024, reflecting higher grades as well as planned
maintenance in the fourth quarter. Heap leach production in 2024 is
expected to total approximately 40,000 ounces of gold.
The 2024 sustaining capex budget at Ҫӧpler of $29 million
includes $9 million in capital leases for the Air Liquide oxygen
plant.
Over the five-year period, the gold production profile at �pler
is expected to increase to nearly 400,000 ounces annually by 2027,
a 23% compound annual growth rate (“CAGR”), reflecting the
significant gold recovery uplift enabled by the Grind-Leach Circuit
that is expected to be completed by 2027 for total growth capital
of $194 million. Over the five-year period, AISC are expected to be
relatively flat in 2024 and 2025, before improving significantly in
2026 through 2028.
Marigold, USA
In 2023, gold production at Marigold was 278,488 ounces, a
record for the operation over its more than 30-year operating
history and in line with full-year guidance. 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.
In 2024, Marigold is expected to produce 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. For
the full-year, production is expected to be 70% weighted to the
second half of 2024, reflecting a second-half weighted grade
profile and increased waste stripping in the first quarter.
Marigold’s AISC profile is expected to trend well above its
asset-level 2024 guidance ranges in the first half, reflecting the
aforementioned production profile and waste stripping. The fourth
quarter of 2024 is expected to represent Marigold’s strongest
production and lowest cost period of the year.
Sustaining capital spend for Marigold in 2024 is forecasted to
total $37 million, a more than 50% reduction in capital spend
compared to 2023 levels which included the purchase of four new
haul trucks to support waste stripping activities over the
near-term. Waste stripping at Red Dot is a key focus for 2024 and
2025, enabling increased gold production over the remainder of the
decade.
The gold production profile at Marigold is expected to increase
to over 270,000 ounces annually in 2027, an 18% CAGR over that
four-year period, and above 300,000 ounces by 2029. Costs are
expected to improve significantly in 2026 as stacked grades
increase due to increased ore contribution from Red Dot. Technical
work is ongoing to potentially expand Marigold’s Mineral Reserves
and enable mine life extensions beyond the current nine-year mine
plan, including potential expansions to the Mackay, Valmy, New
Millennium, and Buffalo Valley deposits.
Seabee, Canada
For 2023, gold production at Seabee was 90,777 ounces. Gold
production was 38,757 ounces in the fourth quarter of 2023, at cost
of sales of $666 per payable ounce and AISC of $916 per payable
ounce. Processed grades in the fourth quarter averaged 10.1
g/t.
In 2024, Seabee is expected to produce 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. Seabee’s
production is expected to be strongest in the first and third
quarters of 2024, reflecting processed grades. Grades are expected
to average between 5.0 and 6.0 g/t in 2024, slightly above the
Seabee Mineral Reserve grade. Mine and mill productivity are
expected to average approximately 1,300 tonnes per day through
2024. AISC are expected to be highest in the first half of the
year, particularly the first quarter, reflecting purchases
associated with the winter road season.
Sustaining capital expenditures are planned to total $40 million
in 2024, including $24 million in capitalized underground
development. Capital expenditures are expected to be concentrated
in the first half of the year, particularly the first quarter, due
to the winter road season.
Over the five-year period, Seabee’s production is expected to
average approximately 75,000 ounces annually. Grades are expected
to trend closer to 5.0 g/t in 2025 and beyond, while throughputs
are expected to increase to 1,350 to 1,400 tonnes per day.
Near-mine exploration continues with the goal of delineating new
Mineral Reserves at Santoy 8, 9 and the Gap and Santoy Hangingwall
targets. Exploration and resource development activity also
continues to aggressively advance the Porky and Porky West targets
as a potential new underground mining front that could complement
and extend the existing Seabee mine life.
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, it is
expected the Company will record a write-down of $50 million in
goodwill at Seabee in the Company’s financial statements for the
year ended December 31, 2023, to be released on February 21,
2024.
Puna, Argentina
For 2023, silver production from Puna was 9.7 million ounces, a
record for the operation over its more than 15 year operating life
and exceeding the mine’s original full-year production guidance
range. 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.
In 2024, Puna is expected to produce 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 peak in the fourth quarter.
Continued delivery of operational improvement initiatives has
enabled further improvement to process plant throughputs at Puna,
which are targeted to average more than 4,750 tonnes per day
throughout the year. AISC are expected to be highest in the first
half of 2024, including a peak in the first quarter, reflecting the
site-level capital spend profile.
Sustaining capital expenditures are planned to total $17 million
in 2024 and are primarily related to maintenance of mine and plant
equipment.
Based on current Mineral Reserves, mining from the Chinchillas
open pit is expected to be completed in 2026. Technical work
continues to evaluate opportunities to extend the Puna life of mine
through Mineral Reserve conversion at Chinchillas, as well as the
definition of initial Mineral Reserves at the Cortaderas
target.
Growth, Exploration and Resource Development
In 2024, growth exploration and resource development
expenditures are expected to total $50 million. This growth
exploration budget is a decrease of approximately 35% over 2023
budgets, reflecting the near-term focus on currently defined
development projects. Growth capital expenditures are expected to
total $117M, driven almost entirely by �pler and Hod Maden.
At �pler, 2024 consolidated exploration and resource
development expenditures are estimated to total $12 million, with a
primary focus on additional Mineral Reserve conversion and
expansion of the Ҫӧpler and Çakmaktepe ore bodies. Regional
exploration on the Kartaltepe licenses, most notably Mavidere /
Mavidere South, is also continuing as the Company evaluates
additional potential ore sources across the greater �pler
district. Growth capital expenditures at �pler are expected to
total $77 million and are associated with expansion costs for the
�pler tailings storage facility, along with initial development
costs for the installation of Grind-Leach Circuit to process oxide
ore in 2027 and beyond.
At Marigold, 2024 consolidated exploration and resource
development expenditures are estimated at $9 million, focusing on
oxide Mineral Reserve additions and conversion at Buffalo Valley,
Mackay, Valmy and New Millennium. Growth exploration expenditures
also include geophysics and testing of new targets across the
greater Marigold land package.
At Hod Maden, technical work continues ahead of a construction
decision and accompanying project financing package. As per the
previously disclosed transaction terms, during the earn-in period,
SSR Mining will contribute 40% of project development costs. In
2024, the attributable spend at Hod Maden for SSR Mining is
expected to total approximately $37 million. This includes
continued advancement of initial earth works and site access
activities, as well as the commencement of underground portal
development in the second half of the year. In addition to SSR
Mining’s attributable capital commitments, up to $30 million in
earn-in structured payments are expected to be incurred in 2024.
All Hod Maden development costs will be recorded at 100%
attributable in SSR Mining’s financial statements, and then
credited against accordingly by non-controlling interest inflows.
Technical work completed to-date continues to affirm prior due
diligence outcomes around project capital and scope, and an initial
infill drill program continues at site with the aim of de-risking
the first four years of the mine. Results to date have not shown
any deviation from the existing resource model, affirming Hod
Maden’s best-in-class grades.
At Seabee, 2024 consolidated exploration and resource
development expenditures are estimated at $15 million with a focus
on defining initial Mineral Reserves at the Porky and Porky West
targets. Further drilling will also be completed at the Gap
Hangingwall to evaluate potential extensions to the existing
Mineral Reserves and mine life at Seabee. Earlier stage exploration
activity also continues across the broader Seabee property,
including follow-up sampling and potential drill testing at a
number of regional targets.
At Puna, 2024 consolidated exploration and resource development
expenditures are anticipated to total $10 million, with the
majority of that spend allocated to advancing Mineral Resource
definition at the Cortaderas target ahead of an initial economic
evaluation of the target. Work is also underway to evaluate
potential Mineral Reserve conversion at Chinchillas in order to
extend the mine life in the near-term.
Other exploration and development expenditures total $4 million
as SSR Mining advances greenfield opportunities across its
portfolio, including drilling programs at the Copper Hill target in
northeastern Türkiye and at the Amisk project in Saskatchewan.
Mapping and sampling work is also continuing at earlier stage and
regional opportunities in the U.S., Türkiye, and Canada.
(14)
The Company reports non-GAAP financial
measures including free cash flow and All-In Sustaining Cost
(“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.
Technical Report Summaries (“TRS”) Highlights
SSR Mining has published updated TRS for its four producing
assets. The TRS for each asset are based exclusively on Mineral
Reserves and expand upon the production profiles set out in the
2021 Technical Report Summaries. Effective dates for the 2023
reports are September 30, 2023 for Marigold, October 31, 2023 for
�pler and December 31, 2023 for Seabee and Puna. Updated technical
work at Hod Maden is ongoing.
Table 3: Key metrics from 2023 Technical Report
Summaries
Producing Asset (15)
Mine Life
LOM Production
LOM Free Cash Flow
After-Tax NPV5%
�pler
15 years
4,254koz Au
$2,368M
$1,643M
Marigold
9 years active mining / 15 years
incl. residual leaching
2,199koz Au
$1,072M
$800M
Seabee
4 years
327koz Au
$102M
$95M
Puna (16)
3 years
19.9 Moz Ag
$132M
$136M
(15)
Figures are reported on a 100% basis.
�pler is 80% owned by SSR Mining.
(16)
Puna 2023 TRS NPV uses an 8% discount
rate. Puna NPV exceeds life of mine free cash flow as a result of
discounting factor on reclamation spend following the completion of
production.
Ҫӧpler Technical Report Summary
The Technical Report Summary on the Ҫӧpler Property, Türkiye
(the “2023 Ҫӧpler TRS”) represents the synthesis of extensive
exploration activity, updated geotechnical and metallurgical test
work, and ongoing continual improvement initiatives. Overall, total
Mineral Reserves have increased 2% from end-2022, despite 2023
depletion, reflecting successful Mineral Resource conversion at
Çakmaktepe, which now hosts 3 million ounces of gold Mineral
Reserves (2.4 million ounces attributable). The resulting
consolidated 5.1 million ounces of Mineral Reserves (4.1 million
ounces attributable) at Ҫӧpler support a 15-year mine life, with
significant potential upside across near-mine and regional targets
going forward.
Highlights of the 2023 Ҫӧpler TRS include:
- NPV5% of $1.64 billion;
- 15-year mine life including
- Life of mine production of 4,254 ounces gold, a ~10% increase
in total production over the 2021 TRS Mineral Reserve Case;
- Average annual production of 281,000 ounces of gold over the
life of mine;
- Average cost of sales of $965 per payable ounce and AISC of
$1,003 per payable ounce over the life of mine;
- Average annual after-tax operating cash flow of $197 million
and free cash flow of approximately $160 million over the life of
mine;
- An initial $194 million investment in a Grind-Leach Circuit,
expected to be completed in early 2027, adds an incremental 570
thousand ounces of life of mine gold production from Çakmaktepe.
- Grind Leach projected IRR: +30%
Table 4: Key Metrics From 2023 Ҫӧpler TRS
Unit
2024 – 2028
Life of Mine (18)
Total Production
Au koz
1,494
4,254
Avg. Annual Production
Au koz
299
281
Total Operating Cash Flow
$M
$1,059
$3,005
Total Capital Costs (Incl. Reclamation)
(17)
$M
$394
$637
Total Free Cash Flow
$M
$665
$2,368
Average Annual Free Cash Flow
$M
$133
$160
Cost of Sales
Au $/oz
$1,081
$965
Cash Costs
Au $/oz
$1,081
$965
AISC
Au $/oz
$1,104
$1,003
(17)
Total capital costs include reclamation
and working capital.
(18)
Life of mine average production and free
cash flow reflect the period from 2024 to 2038.
Additional potential for upside at Ҫӧpler
The updated 2023 �pler TRS highlights improvement to the
production and free cash flow profile as compared to the Reserve
Case production scenario in the 2021 �pler TRS. Additionally there
are multiple opportunities for possible growth beyond the 2023 TRS
that are currently being investigated, including:
- Continued evaluation of additional Çakmaktepe Mineral Reserve
growth at depth and through additional targets along trend to the
southeast;
- Near-pit exploration success at targets adjacent to the Ҫӧpler
Pits that could further complement the existing Sulfide and/or
Oxide production profile;
- Initial drill testing of higher-grade, discreet mineralization
targets below the �pler, Manganese and Marble pits that could
potentially support future growth
- Optimization of the blended ore feed to the three flowsheets
(sulfide plant, grind-leach circuit and heap leach pads) to
increase recoveries and value;
- Evaluation of additional tailings capacity, including dry stack
tailings, to support additional Mineral Reserve conversion and mine
life extension; and
- Regional exploration success at targets across the Ҫӧpler
District, in particular Mavidere and Mavidere South.
SSR Mining has budgeted more than 30,000 meters of exploration
and resource development drilling across the Ҫӧpler District in
2024.
As a result of the removal of Mineral Resources associated with
C2 at �pler, SSR Mining performed its long lived asset and
impairment evaluation. Based on the evaluation, the Company expects
to record a $349 million non-cash write down, adjusting its fixed
asset and mineral property value from approximately $2.80 billion
to $2.45 billion in its full-year 2023 results to be released on
February 21, 2024.
Marigold Technical Report Summary
The 2023 Technical Report Summary on the Marigold Complex,
Nevada, USA (the “2023 Marigold TRS”) is based exclusively on
existing Mineral Reserves and does not yet incorporate initial
Mineral Resources at Buffalo Valley, or any potential Mineral
Resource conversion at the Valmy, Mackay or New Millennium targets.
The focus of continued near-mine exploration will be to deliver
additional Mineral Reserves at brownfield targets to extend the
9-year Marigold mine life. The mine plan in the TRS expands on the
production profile outlined in Marigold’s 2021 Technical Report
Summary, including a 4% increase in remaining life of mine
production as compared to the remaining production profile in the
2021 Technical Report Summary. Cost assumptions were also updated
to reflect recent actual results. For the remainder of the current
mine plan, there are limited major capital projects expected,
positioning the mine to deliver strong free cash flow.
Highlights of the 2023 Marigold TRS include:
- NPV5% of $800 million;
- 9-year mine life, 15 years of total production including
residual leaching;
- Life of mine production of 2.2 million ounces gold, a 4%
increase in LOM production over the remaining period in the prior
2021 technical report;
- Average annual production of 212,000 ounces of gold over the
life of mine period from 2024 to 2032;
- Average cost of sales of $1,065 per ounce and AISC of $1,213
per ounce over the life of mine; and
- Average annual after-tax operating cash flow of $124 million
and free cash flow of $95 million over the nine-year period of
active mining.
Table 5. Key Metrics from the Marigold TRS
2024 – 2028
Life of Mine (20)
Total Production
Au koz
1,068
2,199
Average Annual Production
Au koz
214
212
Operating Cash Flow
$M
$549
$1,399
Total Capital Costs (19)
$M
$204
$327
Total Free Cash Flow
$M
$345
$1,072
Average Annual Free Cash Flow
$M
$69
$95
Cost of Sales
$ / Au oz
$1,239
$1,065
Cash Costs
$ / Au oz
$1,239
$1,065
AISC
$ / Au oz
$1,430
$1,213
(19)
Total capital costs include working
capital and reclamation.
(20)
Life of mine metrics are from 2024
onwards. Average annual metrics exclude residual leaching.
Additional potential for upside at Marigold
The Marigold property hosts significant potential for mine life
extension through future Mineral Reserve conversion and growth.
Opportunities for possible growth beyond the TRS life of mine plan
include:
- M&I Mineral Resources of 1.7 million ounces gold and
Inferred Resources of 0.4 million ounces gold not incorporated in
the current Mineral Reserve,
- Continued exploration across the Marigold land package with a
focus on definition and growth opportunities,
- New Millennium and Buffalo Valley may host potential for
longer-term stand-alone processing infrastructure, improving
operating costs through shorter hauls
SSR Mining has planned nearly 50,000 meters of exploration and
resource development drilling at Marigold in 2024 to continue
advancing these brownfield exploration targets.
Mineral Reserves and Mineral Resources (“MRMR”) for Year-End
2023
SSR Mining reported its updated MRMR as of December 31, 2023,
reflecting depletion that occurred through mining activity,
stockpile changes, new Mineral Reserves and Mineral Resources
delineated from drilling activity, Mineral Resource conversion, and
changes resulting from asset acquisitions and divestitures
announced in 2023. SSR Mining continues to advance exploration and
resource development activities at each of its assets, and this
data will be incorporated into MRMR statements as the accompanying
technical work so dictates.
As per Subpart 1300 of Regulation S-K, the Company’s year-end
2023 MRMR are presented on an attributable basis.
- Commodity price assumptions aligned with peers: The gold
price used in the calculation of Mineral Reserves was increased
from $1,350 per ounce in 2022 to $1,450 per ounce used in 2023. The
gold price used in Seabee’s Mineral Reserve price remained
unchanged at $1,600 per ounce, All other commodity prices used in
the calculation of Mineral Reserves for both 2023 and 2022 are
unchanged from $18.50 per ounce silver, $0.90 per pound of lead,
$1.05 per pound of zinc, and $3.30 per pound copper. Mineral
Resource prices of $1,750 per ounce gold, $22.00 per ounce silver,
$0.95 per pound lead, $1.15 per pound zinc and $3.95 per pound
copper were unchanged from 2022.
- Acquisition of Hod Maden; Non-Core San Luis Project
Divested: In the second quarter of 2023, SSR Mining announced
the acquisition of an up to 40% ownership interest and operatorship
in the Hod Maden gold-copper project. At a 40% basis, Hod Maden
will contribute nearly one million ounces of gold and approximately
115 million pounds of copper to SSR Mining’s Mineral Reserves. As
announced on November 30, 2023, SSR Mining entered into an
agreement to sell its San Luis project. As a result, all Measured,
Indicated and Inferred Mineral Resources at San Luis were removed
from SSR Mining’s consolidated Mineral Resource statement. No
Mineral Reserves had been identified at San Luis.
- Mineral Reserves: Gold Mineral Reserves as of December
31, 2023 were 7.3 million, excluding any contribution from Hod
Maden, down 5% compared to year-end 2022, and reflecting mine
depletion and Mineral Resource conversion. Total gold equivalent
Mineral Reserves as of December 31, 2023 were 7.8 million
ounces.
- Measured and Indicated Mineral Resources: Gold Measured
and Indicated Mineral Resources as of December 31, 2023 were 4.0
million ounces, excluding any contribution from Hod Maden, down 30%
or 1.7 million ounces as compared to year-end 2022. Total gold
equivalent Measured and Indicated Mineral Resources were 5.3
million ounces, down 28% or 2.0 million ounces from the prior year
largely a result of Mineral Resource conversion, the sale of San
Luis, and the removal of copper-gold mineralization associated with
the C2 Project at Ç�pler from the Company’s Mineral Resources.
- Inferred Mineral Resources: Gold Inferred Mineral
Resources of 2.6 million ounces, excluding any contribution from
Hod Maden, decreased by 44% or 2.1 million ounces as compared to
year-end 2022 Inferred Mineral Resources. Gold equivalent Inferred
Mineral Resources of 3.2 million ounces decreased by 47% or 2.7
million ounces as compared to year-end 2022. This was largely
driven by the sale of San Luis and the aforementioned removal of C2
mineralization from all categories of Mineral Resources.
Table 6: SSR Mining Mineral Reserves
and Resources as of December 31, 2023 (21)
SSRM Attributable
(Excluding Hod Maden)
Gold
y/y
Silver
y/y
Lead
Zinc
Copper
AuEq (22)
koz
%
koz
%
Mlb
Mlb
Mlb
koz
Total P+P Reserves
7,275
(5%)
26,806
(33%)
113
20
27
7,764
Total M&I Resource (23)
4,034
(30%)
66,218
(1%)
196
404
30
5,307
Total Inferred Resource
2,642
(43%)
20,932
(46%)
24
227
24
3,211
(21)
MRMR are shown as attributable to SSR
Mining only. As of December 31, 2023, SSR Mining owns 80% of the
�pler district. Hod Maden Mineral Reserves and Mineral Resources
are not included in SSR Mining’s consolidated MRMR tables as of
year-end 2023.
(22)
All gold equivalent ounces (GEO or AuEq)
figures are based on the above-mentioned commodity prices. Metal
equivalence is calculated for the respective and applicable metals
as follows: GEO = Au oz + ((Ag oz * Ag price) + (Pb lb * Pb price
per pound) + (Zn lb * Zn price per pound) + (Cu lb * Cu price per
pound)) / (Au price per ounce).
(23)
Measured and indicated Mineral Resources
are shown exclusive of Mineral Reserves.
Hod Maden
Gold
Copper
AuEq (24)
koz
Mlb
koz
Total P+P Reserves (40%
Attributable)
981
115
1,246
(24)
All gold equivalent ounces (GEO or AuEq)
figures are based on a $1,300/oz gold price and $3.00/lb copper
price. Metal equivalence is calculated for Hod Maden as follows:
GEO = Au oz + (Cu lb * Cu price per pound) / (Au price per ounce).
See endnote on Reserve and Resource Estimates by Mineral for Hod
Maden for the assumptions on which these Mineral Reserves are
reported.
Conference Call Information
To accompany this press release, SSR Mining’s senior leadership
team will host a conference call this morning to provide an
overview of current operations as well as the Company’s outlook and
long-term growth strategy. Investors, media and the public are
invited to listen to the conference call and accompanying
webcast.
- Conference call and webcast: Tuesday, February 13, 2024, at
9:00 am 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
Assumptions
All figures are in U.S. dollars, unless otherwise noted. Gold
equivalent figures for operating guidance are based on a
gold-to-silver ratio of 81:1 in 2024, 79:1 in 2025 and 76:1 in 2026
and beyond. Gold equivalent figures for 2023 are based on a
gold-silver ratio of 83:1. Cost of sales, cash costs, AISC and
capital expenditure guidance is based on an exchange rate of 1.33
Canadian dollars to one U.S. dollar and an exchange rate of 34
Turkish Lira to one U.S. dollar and are subject to the key
assumptions, risks and uncertainties described under “Cautionary
Note Regarding Forward-Looking Information and Statements”. All
figures are presented on a 100% basis, unless otherwise noted.
�pler is 80% owned by SSR Mining. Hod Maden is 10% owned by SSR
Mining but is classified as a variable interest entity due to SSR
Mining’s majority voting rights within the entity. SSR Mining has
the option to increase its ownership to 40% through contingent
payments during the construction period.
Consensus gold and silver prices were used in the compilation of
the 2023 TRS. This includes gold prices of: 2023 - $1,925/oz; 2024
- $1,930/oz; 2025 - $1,890/oz; 2026 - $1,810/oz; 2027 - $1,780/oz;
long-term - $1,755/oz, and silver prices of: 2023 - $23.50/oz; 2024
- $24.00/oz; 2025 – $23.95/oz; 2026 – $23.70/oz; 2027 - $23.35/oz;
long-term - $22.75/oz.
About SSR Mining
SSR Mining Inc. is a leading, free cash flow focused gold
company with four producing operations located in the USA, Türkiye,
Canada, and Argentina, combined with a global pipeline of
high-quality development and exploration assets. Over the last
three years, the four operating assets combined have produced on
average more than 700,000 gold-equivalent ounces annually. SSR
Mining is listed under the ticker symbol SSRM on the Nasdaq and the
TSX, and SSR on the ASX.
Reserve and Resource Estimates by Mineral for Hod Maden
The Mineral Reserves and Mineral Resources for Hod Maden as of
December 31, 2023 that are presented herein are estimates that have
been prepared by SSR Mining based on data available as of July 2019
and have been approved by internal SSR Mining qualified persons, as
defined under Regulation S-K 1300. Hod Maden is not considered a
material property of the Company, as it relates to Regulation S-K
1300.
The Hod Maden Resources and Hod Maden Reserves (as defined
below) are estimates made by SSR Mining and have not been prepared,
reviewed or verified by an independent, third-party qualified
person and have not been prepared or presented in accordance with
Regulations S-K 1300.
The Hod Maden Reserves are estimates based on information
available at the time of calculation in a manner consistent with
industry practice.
Measured and Indicated Resources were converted to Proven and
Probable Mineral Reserves through application of relevant modifying
factors and the appropriate mining recovery and dilution parameters
were applied. Mineral Reserves are reported based on mined ore to
be delivered to the plant as mill feed. Ounces of gold or pounds of
copper in the Hod Maden Reserves presented herein are calculated
without regard to any losses during metallurgical treatment. Market
price fluctuations of gold and copper, as well as increased cost of
production/sales or reduced metallurgical recovery rates, could
result in the Hod Maden Reserves containing relatively lower grades
of mineralization uneconomic to exploit and result in a decrease in
actual recovery as compared to the Hod Maden Reserves reported
herein.
The Mineral Resources presented herein for Hod Maden (the “Hod
Maden Resources”) are presented exclusive of the Hod Maden
Reserves. Due to the uncertainty that may be attached to Inferred
Mineral Resources, it cannot be assumed that all or any part of an
Inferred Mineral Resource will be upgraded to an Indicated or
Measured Mineral Resource as a result of continued exploration.
Hod Maden Reserves and Hod Maden Resources are based on
$1,300/oz gold price and $3.00/lb copper and an 85% metallurgical
recovery for gold, and are reported based on incremental cut-off of
NSR of $63/t and $40/t for development. Metals shown in the tables
are contained metals in ore mined and processed. Tonnage is metric
tonnes, ounces represent troy ounces, and g/t represents grams per
metric tonne. The point of reference for the Hod Maden Reserves is
the proposed onsite processing facility.
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 global
pandemics, including the duration, severity and scope of a 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; 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 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.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.
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.
Qualified Persons
All key assumptions, parameters and methods used to estimate
Mineral Reserves and Mineral Resources reported herein in respect
of �pler, Marigold, Seabee and Puna, and the data verification
procedures followed, are set out in the Technical Report Summary on
the Ç�pler Property, Türkiye, the Technical Report Summary on the
Marigold Complex, Nevada, USA , the Technical Report Summary on the
Seabee Gold Operation, Saskatchewan, Canada, and the Technical
Report Summary on the Puna Operations, Argentina (each a “Technical
Report Summary”). Each Technical Report Summary has been filed with
the SEC as part of the Company's Current Report on Form 8-K filed
on February 13, 2024, and incorporated by reference herein, and is
available for review on EDGAR at www.sec.gov. Each Technical Report
Summary will also be filed with the applicable securities
regulatory authorities in Canada as a technical report in
compliance with National Instrument 43-101 – Standards of
Disclosure for Mineral Projects, and will be available for review
on SEDAR+ at www.sedarplus.ca.
Except as otherwise set out herein, the scientific and technical
information contained in this press release relating to �pler has
been reviewed and verified by SLR International Corporation, RSC
Consulting Ltd., WSP USA Inc., and Ausenco Services Pty Limited,
each of which is a qualified person under Subpart 1300 of
Regulation SK with respect to the sections of the 2023 �pler TRS
for which such entity acted as qualified person, as set forth in
the 2023 �pler TRS. The scientific and technical information
contained in this press release relating to Marigold, Seabee and
Puna TRS has been reviewed and verified by SLR International
Corporation, a qualified person under Subpart 1300 of Regulation
SK.
Cautionary Note Regarding Non-GAAP Measures
We have included certain non-GAAP performance measures
throughout this document. These performance measures are employed
by us to measure our operating and economic performance internally
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 also use this information
to evaluate our operating and financial performance; however, these
non-GAAP performance measures do not have any standardized meaning.
Accordingly, 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 condensed consolidated interim financial statements.
Cash costs, AISC per ounce sold, and free cash flow are Non-GAAP
Measures with no standardized definition under U.S GAAP.
The Company uses cash costs per ounce of precious metals sold, a
non-GAAP financial measure, to monitor its operating performance
internally, including operating cash costs, and for internal
decision making. 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 the
by-product credits as it considers the cost to produce the gold or
silver is reduced as a result of the by-product sales incidental to
the gold and silver production process, thereby allowing management
and other stakeholders to assess the net costs of gold and silver
production. In calculating cash costs per payable ounce, the
Company also excludes the impact of specific items that are
significant, but not reflective of its underlying operations. 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. Cash costs per
payable ounce metrics, net of by-product credits, are also used in
the Company's internal decision making processes.
AISC includes total cost of sales incurred at the Company's
mining operations, which forms the basis of its by-product 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, growth expenditures are excluded. Certain other cash
expenditures, including tax payments and financing costs are also
excluded. The Company believes that this measure 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.
We have presented our projected 2027 AISC trend in this press
release. We have not presented a projected 2027 cost of sales
amount, the most comparable GAAP measure, and a corresponding
reconciliation of projected 2027 cost of sales to projected 2027
AISC in this press release because the adjustments, including
inventory movements and related expenses, for example, are not
calculable at this time without unreasonable efforts. In
addition, we believe projections of these adjustments would imply a
degree of precision and certainty that could be confusing to
investors. It is probable that projected 2027 AISC may be
materially different from projected 2027 cost of sales, the most
comparable GAAP financial measure. We have, however,
presented a reconciliation of our full year 2024 cost of sales
guidance to our full year AISC guidance below.
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) (25)
$
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
$
17,979
$
4,453
$
6,774
$
3,293
$
—
$
32,499
Sustaining exploration and evaluation
expense
$
3,419
$
872
$
—
$
—
$
—
$
4,291
Reclamation cost accretion and
amortization (26)
$
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) (27, 28)
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
Twelve Months Ended December
31, 2023
(in thousands, unless otherwise noted)
�pler
Marigold
Seabee
Puna
Corporate
Total
Cost of sales (GAAP) (25)
$
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
$
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) (27, 28)
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
(25)
Excludes depreciation, depletion, and
amortization.
(26)
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.
(27)
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.
(28)
Gold equivalent ounces sold may not
re-calculate based on amounts presented in this table due to
rounding
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 100% basis) (29)
�pler (30)
Marigold
Seabee
Puna
Hod Maden(31)
Corporate
Total
Gold Production
koz
200 - 220
155 - 175
75 - 85
—
—
—
430 - 480
Silver Production
Moz
—
—
—
8.75 - 9.50
—
—
8.75 - 9.50
Gold Equivalent Production
koz
200 - 220
155 - 175
75 - 85
110 - 120
—
—
540 - 600
Gold Sold
koz
200 - 220
155 - 175
75 - 85
—
—
—
435 - 485
Silver Sold
Moz
—
—
—
8.75 - 9.25
—
—
8.75 - 9.5
Gold Equivalent Sold
koz
200 - 220
155 - 175
75 - 85
110 - 120
—
—
540 - 600
Cost of Sales (GAAP) (32)
$M
284 - 321
201 – 235
75 - 85
140 – 162
—
—
700 - 803
By-Product Credits + Treatment
& Refining Costs
$M
(2)
—
—
(45)
—
—
(46)
Cash Cost (non-GAAP)
$M
282 – 319
202 – 235
75 – 85
96 – 117
—
—
654 - 756
Sustaining Capital Expenditures (33)
$M
29
37
40
17
—
—
123
Reclamation Cost Accretion &
Amortization
$M
2
3
3
13
—
—
21
General & Administrative
$M
—
—
—
—
—
60 - 65
60 - 65
All-In Sustaining Cost (non-GAAP)
$M
313 - 350
241 – 274
118 – 128
125 – 147
—
60 – 65
857 - 965
Cost of Sales per Ounce (GAAP)
(32)
$/oz
1,420 - 1,460
1,300 - 1,340
990 - 1,030
16.50 - 18.00
—
—
1,300 - 1,350
Cash Cost per Ounce (non-GAAP)
(34)
$/oz
1,410 - 1,450
1,300 - 1,340
990 - 1,030
11.50 - 13.00
—
—
1,220 - 1,270
All-In Sustaining Cost per Ounce (non-
GAAP) (34)
$/oz
1,550 - 1,590
1,535 - 1,575
1,495 - 1,535
14.75 - 16.25
—
—
1,575 - 1,625
Growth Capital Expenditures
$M
77
1
2
—
37
—
117
Growth Exploration and Resource
Development Expenditures (35)
$M
12
9
15
10
—
4
50
Total Growth Capital
$M
89
10
17
10
37
4
167
(29)
Figures may not add due to rounding.
Figures are reported on a 100% basis.
(30)
�pler is 80% owned by SSR Mining.
(31)
Hod Maden figures presented as 40%
attributable. Hod Maden is currently 10% owned by SSR Mining. SSR
Mining has the option to increase its ownership to 40% through
funding of 40% of the pre-production capital commitments and up to
$150 million in contingent payments.
(32)
Excludes depreciation, depletion,
and amortization.
(33)
Includes sustaining exploration and
evaluation expenditures. Includes approximately $9 million in lease
payments at �pler, $1 million in expensed sustaining exploration
at Marigold and $24 million in underground mine development at
Seabee.
(34)
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. AISC includes reclamation cost accretion
and amortization and certain lease payments.
(35)
Growth exploration and resource
development expenditures are shown on a 100% basis, of which SSR
Mining attributable amount totals $48 million. All growth
exploration and resource development spend is expensed. Growth
exploration includes project studies and evaluation.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240211540792/en/
SSR Mining:
F. Edward Farid, Executive Vice President, Chief Corporate
Development Officer Alex Hunchak, Vice President, 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.
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