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SSR MINING REPORTS FIRST QUARTER 2022 RESULTS

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Cision

HIGHLIGHTS

  • ATTRIBUTABLE & ADJUSTED ATTRIBUTABLE Q1 DILUTED EPS OF $0.31 AND $0.30 PER SHARE, RESPECTIVELY

  • ROBUST QUARTERLY PRODUCTION OF APPROXIMATELY 174,000 OUNCES AT AISC * OF $1,093 PER OUNCE

  • ÇӦPLER QUARTERLY SULFIDE THROUGHPUT RECORD, FLOTATION PLANT RAMP UP CONTINUED

  • SEABEE ACHIEVED QUARTERLY PRODUCTION RECORD OF APPROXIMATELY 53,000 OUNCES

  • ÇAKMAKTEPE EXTENSION ("ARDICH") ADVANCING TOWARDS 2023 FIRST PRODUCTION

  • INTERNAL APPROVALS TO ADVANCE ~60% IRR C2 PROJECT TO PFS

  • CLOSED THE ACQUISITION OF TAIGA GOLD, EXPANDING LAND POSITION IN SASKATCHEWAN TO APPROXIMATELY 131,000 HECTARES

  • INCREASED Q1 DIVIDEND BY 40%

  • PUBLISHED FOURTH ANNUAL ESG AND SUSTAINABILITY REPORT

DENVER, May 3, 2022 /CNW/ - SSR Mining Inc. (NASDAQ: SSRM) (TSX: SSRM) (ASX: SSR) ("SSR Mining" or the "Company") reports consolidated financial results for the first quarter ended March 31, 2022. In addition, the Board of Directors declared a quarterly cash dividend of $0.07 per common share payable on June 9, 2022 to holders of record at the close of business on May 13, 2022. This dividend qualifies as an 'eligible dividend' for Canadian tax purposes.

Rod Antal, President and CEO said, "The first quarter of 2022 continued SSR Mining's proud track record of operational outperformance, as we delivered gold equivalent production of 173,675 ounces at AISC of $1,093/oz, positioning the Company well against full year guidance. In particular, we reported record quarterly production of 52,582 ounces at Seabee as we accessed a continuation of a high-grade zone outside of the Mineral Reserve that was first mined in the second quarter of 2021. Similarly at Çöpler, the ramp up of the flotation circuit is well underway, allowing us to process a record number of tonnes through the sulfide plant in the quarter. Across the remainder of the portfolio, we continue to expect stronger production in the quarters ahead, in line with our previously announced guidance of 700,000 to 780,000 gold equivalent ounces at AISC of $1,120 to $1,180 per gold equivalent ounce.

From a financial perspective, we increased our quarterly dividend payment by 40% to $0.07 per share within the first quarter. We continue to expect free cash flow to be weighted to the second half of 2022, and we will work to ensure that our capital returns initiatives appropriately reflect our robust free cash flow generation. Finally, our high-return growth initiatives continue to advance on schedule with Çakmaktepe Extension and C2 targeting first production in 2023 and 2025, respectively. We expect to release a number of exploration updates across our asset base through the second half of the year and will look to incorporate those results into updated technical reports in 2023 that build on the strong base-line established earlier this year."

* AISC is a non-GAAP metric which is customary in the mining industry, but for which there is no standardized definition or comparable financial measure under U.S. GAAP. As a result, we have not identified a comparable financial measure calculated under U.S. GAAP. See "Cautionary Note Regarding Non-GAAP Financial Measures".


First Quarter 2022 Highlights:
(All figures are in U.S. dollars unless otherwise noted)

  • Robust quarterly operating performance: Delivered first quarter production of 173,675 gold equivalent ounces at AISC of $1,093/oz. (1) Previously announced full year guidance of 700,000 – 780,000 gold equivalent ounces at AISC of $1,120 to $1,180 per gold equivalent ounce is unchanged and remains weighted to the second half of the year.

  • Continued delivery of cash flow: Generated cash flows from operating activities of $62.2 million and free cash flow of $27.7 million in the first quarter. (1) As previously guided, free cash flow was impacted by increased tax and royalty payments, as well as increased working capital outlays, in the first quarter and remains significantly second half weighted. Attributable net income in the first quarter was $67.6 million, or $0.31 per diluted share, and adjusted attributable net income was $65.9 million, or $0.30 per diluted share. (1)

  • Dividend increased as part of capital returns commitment: During the first quarter, the Board declared a quarterly cash dividend of $0.07 per share, a 40% increase over the prior quarter, which was paid on April 4, 2022. The Normal Course Issuer Bid ("NCIB"), first announced on April 19, 2021, remained active during the quarter.

  • Balance sheet continues to support growth initiatives: At the end of the first quarter, the Company had a cash and cash equivalents balance of $999.0 million, after $17.8 million in scheduled debt repayments and $30.8 million in dividends to joint venture partners. Non-GAAP net cash totals $680.6 million as of March 31, 2022. (1)

  • Three-year guidance showcased stable production profile above 700,000 gold equivalent ounces: In the first quarter, SSR Mining announced its inaugural three-year production guidance highlighting annual production in excess of 700,000 gold equivalent ounces in 2022, 2023 and 2024 without requirements for material capital investment. In addition, updated technical report summaries for all four producing assets established a platform that we expect will be capable of maintaining 700,000 gold equivalent ounces of production for at least the remainder of the decade.

  • Increased gold Mineral Reserves by 14% to 9.2 million ounces: Mineral Reserve conversion at Ardich and Seabee's Gap Hangingwall drove a 1.1 million ounce, or 14%, increase to total gold Mineral Reserves, net of depletion.

  • Çöpler flotation circuit ramp-up well underway, Çakmaktepe Extension development progressing: Delivered gold production of 70,641 ounces in the first quarter at AISC of $955 per ounce. The sulfide plant treated a record of approximately 645,000 tonnes in the quarter. The Company continues to progress Çakmaktepe Extension towards first gold production in 2023. In the first quarter of 2022, the Company released an updated Çöpler District Master Plan ("CDMP21") that showcased life of mine production of more than 1.2 million ounces of gold from Çakmaktepe Extension for $69 million in initial capital, and an Initial Assessment Case ("IAC") for the C2 project that featured more than 1.0 million ounces of gold production for $218 million in initial capital and an IRR of approximately 60%.

  • Marigold on track for full year production guidance: Delivered gold production of 33,788 ounces for the first quarter as the timing and grade of material stacked deferred some ounces into the second quarter. Full-year production remains second-half weighted as higher-grade ore is accessed later in the year.

  • Seabee delivers record quarterly production: Produced 52,582 ounces of gold at AISC of $596 per ounce as processed grades of 17.8 g/t were well above plan. Mining accessed a continuation of a very high grade zone outside of the Mineral Reserve that was first mined in the second quarter of 2021. Exploration is underway in an attempt to further define extension of this high-grade zone, though grades are scheduled to return closer to plan of 9.2 g/t for the remainder of 2022. Operational excellence initiatives also improved underlying mine performance in the first quarter, including a quarterly record of nearly 103,000 tonnes mined (approximately 1,150 tonnes per day).

  • Puna continues strong cost performance: Produced 1.3 million ounces of silver at cash costs of $13.06 per ounce in the first quarter and AISC of $14.67 per ounce. The mine remains on track to achieve its full-year guidance.

  • 2021 ESG and Sustainability Report: On April 14, 2022, the Company published its fourth annual ESG and Sustainability Report. The report outlines SSR Mining's approach to sustainability across a range of areas, including Health & Safety, environment, communities and diversity, as well as summarizes our 2021 ESG performance.

  • Announced the sale of the Pitarrilla project: On January 13, 2022, the Company announced it had entered into a definitive agreement to sell its Pitarrilla silver project in Durango, Mexico to Endeavour Silver Corp. ("EXK") for total consideration of up to $127 million. This consideration includes $35 million in cash, $35 million in EXK shares, and a 1.25% Net Smelter Return ("NSR") royalty on the Pitarrilla property.(2) The transaction, which is subject to TSX and NYSE regulatory approvals, the approval of the Mexican Federal Economic Competition Commission and customary closing conditions, is expected to close in the second quarter of 2022.

  • Closed the acquisition of Taiga Gold Corp.: Subsequent to the quarter's end, on April 14, 2022, SSR Mining completed the previously announced plan of arrangement (the "Arrangement") to acquire all of the issued and outstanding shares of Taiga Gold Corp. (CSE: TGC) ("Taiga Gold"). The transaction consolidated a 100% interest in the Fisher property contiguous to the Seabee mine, eliminated a 2.5% NSR royalty on the Fisher property, and added five new properties covering over 29,100 hectares to complement the Company's existing exploration platform in the underexplored and geologically prospective Province of Saskatchewan. SSR Mining's Saskatchewan assets now cover an area of approximately 131,150 hectares.

(1)

The Company reports non-GAAP financial measures including adjusted attributable net income, adjusted basic attributable net income per share, free cash flow, net cash, cash costs and AISC per ounce sold 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 net income and production costs, which are the comparable GAAP financial measures.

(2)

The estimated value of the net smelter return royalty is based on the present value of net smelter returns of the Pitarrilla property from the "NI 43-101 Technical Report on the Pitarrilla Project, Durango State, Mexico", dated December 14, 2012, which is available on Company's website at www.ssrmining.com, discounted at a rate of 5%. The estimated value assumes a silver price of US$25/oz, a lead price of US$0.90/lb, and a zinc price of US$0.95/lb. The assumptions underlying the estimated value of the Pitarrilla project NSR royalty, including those supporting the Technical Report on the Pitarrilla Project and future metal prices, represent estimates and actual royalties received by SSR Mining in connection with the Transaction may differ from projected amounts.

Financial and Operating Highlights

A summary of the Company's consolidated financial and operating results for the three months ended March 31, 2022 are presented below:

(in thousands of US dollars, except per share data)


Three Months Ended March 31,



2022


2021

Financial Results







Revenue


$

355,446


$

366,484

Income from mine operations (2)


$

143,184


$

150,842

Gross margin (2)



40 %



41 %

Operating income


$

115,870


$

129,183

Net income


$

76,106


$

127,451

Net income attributable to equity holders of SSR Mining


$

67,563


$

108,861

Basic net income per share attributable to equity holders of SSR Mining


$

0.32


$

0.50

Diluted net income per share attributable to equity holders of SSR Mining


$

0.31


$

0.48

Adjusted attributable net income (1)


$

65,942


$

110,735

Adjusted basic attributable net income per share (1)


$

0.31


$

0.50

Adjusted diluted attributable net income per share (1)


$

0.30


$

0.48








Cash generated by operating activities


$

62,187


$

127,503

Cash used in investing activities


$

(27,885)


$

(55,734)

Cash used in financing activities


$

(53,449)


$

(66,407)








Operating Results







Gold produced (oz)



157,010



170,149

Gold sold (oz)



157,179



173,370

Silver produced ('000 oz)



1,303



1,792

Silver sold ('000 oz)



1,760



1,949

Lead produced ('000 lb) (4)



7,303



6,164

Lead sold ('000 lb) (4)



10,212



6,102

Zinc produced ('000 lb) (4)



1,843



3,079

Zinc sold ('000 lb) (4)



3,129



808








Gold equivalent produced (oz) (5)



173,675



196,094

Gold equivalent sold (oz) (5)



179,692



201,494








Average realized gold price ($/oz sold)


$

1,880


$

1,798

Average realized silver price ($/oz sold)


$

23.85


$

26.02








Cash cost per gold equivalent ounce sold (1, 5)


$

775


$

689

AISC per gold equivalent ounce sold (1, 5)


$

1,093


$

970








Financial Position


March 31, 2022


December 31, 2021

Cash and cash equivalents


$

998,986


$

1,017,562

Current assets


$

1,677,539


$

1,600,314

Total assets


$

5,212,663


$

5,211,438

Current liabilities


$

278,501


$

283,882

Total liabilities


$

1,126,572


$

1,158,921

Working capital (3)


$

1,399,038


$

1,316,432








(1)

The Company reports non-GAAP financial measures including adjusted attributable net income, adjusted basic attributable net income per share, cash costs and AISC per ounce sold to manage and evaluate its operating performance at its mines. See "Non-GAAP Financial Measures" for an explanation of these financial measures and a reconciliation of these financial measures to net income and production costs, which are the comparable GAAP financial measures.

(2)

Income from mine operations is defined as revenue less production costs and DD&A. Gross margin is defined as income from mine operations divided by revenue.

(3)

Working capital is defined as current assets less current liabilities.

(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 using the silver ounces produced or sold multiplied by the ratio of the sliver price to the gold price, using the average London Bullion Market Association ("LBMA") prices for the period. The Company does not include copper, lead, or zinc as they are considered by-products.


Çöpler, Turkey
(amounts presented on 100% basis)


Three months ended March 31,

Operating Data


2022


2021

Gold produced (oz)



70,641



78,478

Gold sold (oz)



72,425



82,502








Ore mined (kt)



1,011



3,007

Waste removed (kt)



5,135



3,683

Total material mined (kt)



6,146



6,689

Strip ratio



5.1



1.2








Ore stacked (kt)



63



941

Gold grade stacked (g/t)



0.78



1.29








Ore milled (kt)



645



580

Gold mill feed grade (g/t)



3.32



3.32

Gold recovery (%)



87.0



90.8








Average realized gold price ($/oz sold)


$

1,873


$

1,811

Production costs ($/oz gold sold)


$

864


$

805

Cash costs ($/oz gold sold) 6


$

844


$

589

AISC ($/oz gold sold) 6


$

955


$

738



(6)

The Company reports the non-GAAP financial measures of cash costs and AISC per ounce of gold sold to manage and evaluate operating performance at Çöpler. See "Non-GAAP Financial Measures" for an explanation of these financial measures and a reconciliation to production costs, which are the comparable GAAP financial measure. Cash costs and AISC per ounce of gold sold in 2022 no longer exclude the impact of any fair value adjustment on acquired inventories as of the date of the Company's acquisition of Alacer.


For the three months ended March 31, 2022 and 2021, Çöpler produced 70,641 and 78,478 ounces of gold, respectively. Lower production against the prior year period is mainly due to depleting oxide ore. AISC of $955/oz for the first quarter was in line with full-year guidance.

Çöpler remains on track with 2022 production guidance of 255,000 to 285,000 ounces of gold at mine site AISC of $915 to $965 per payable ounce. The flotation circuit continued to ramp up in the quarter, supporting record throughput of 645,239 tonnes in the sulfide plant while helping to reduce reagent usage going forward. Scheduled autoclave maintenance is planned for the second and fourth quarters of 2022.

Çakmaktepe Extension continues to progress towards first gold production in 2023. As highlighted in the CDMP21, Çakmaktepe Extension is expected to contribute more than 1.2 million ounces of gold production for initial capital of $69 million. The Company is also progressing the C2 project through a Pre-Feasibility Study in 2022, targeting first production for the project in 2025 for initial capital of $218 million.

Marigold, USA


Three months ended March 31,

Operating Data


2022


2021

Gold produced (oz)



33,788



67,936

Gold sold (oz)



36,954



65,012








Ore mined (kt)



4,820



5,711

Waste removed (kt)



19,788



18,051

Total material mined (kt)



24,608



23,763

Strip ratio



4.1



3.2








Ore stacked (kt)



4,820



5,711

Gold grade stacked (g/t)



0.39



0.41








Average realized gold price ($/oz sold)


$

1,864


$

1,787

Production costs ($/oz gold sold)


$

1,048


$

826

Cash costs ($/oz gold sold) 7


$

1,048


$

823

AISC ($/oz gold sold) 7


$

1,564


$

1,195



(7)

The Company reports the non-GAAP financial measures of cash costs and AISC per ounce of gold sold to manage and evaluate operating performance at Marigold. See "Non-GAAP Financial Measures" for an explanation of these financial measures and a reconciliation to production costs, which are the comparable GAAP financial measure.

For the three months ended March 31, 2022 and 2021, Marigold produced 33,788 and 67,936 ounces of gold, respectively. Marigold stacked 46,445 ounces of recoverable gold to the heap leach in Q1 2022. The decrease against the prior year period was the result of mine scheduling and increase in heap leach inventory delaying some gold production into the second quarter. The heap leach inventory increased due to the timing of the ore placements on the pads and slower leaching rates of finer ore from the north pits. As previously guided, quarterly AISC of $1,564/oz was above Marigold's full-year guidance range due to increased waste stripping and fewer ounces sold.

In 2022, Marigold remains on track for production guidance of 215,000 to 245,000 ounces of gold at mine site AISC of $1,245 to $1,295 per ounce. As previously guided, production is weighted to the second half of the year. Production will increase in subsequent quarters, alongside improving AISC, as the heap leach inventory is drawn back down and as higher-grade ore is accessed later in the year.

Seabee, Canada


Three months ended March 31,

Operating Data


2022


2021

Gold produced (oz)



52,582



23,735

Gold sold (oz)



47,800



25,766








Ore mined (kt)



103



88

Waste removed (kt)



65



70

Total material mined (kt)



167



158








Ore milled (kt)



95



90

Gold mill feed grade (g/t)



17.77



8.45

Gold recovery (%)



98.6



98.3








Average realized gold price ($/oz sold)


$

1,902


$

1,780

Production costs ($/oz gold sold)


$

343


$

643

Cash costs ($/oz gold sold) 8


$

344


$

616

AISC ($/oz gold sold) 8


$

596


$

1,111



(8)

The Company reports the non-GAAP financial measures of cash costs and AISC per ounce of gold sold to manage and evaluate operating performance at Seabee. See "Non-GAAP Financial Measures" for an explanation of these financial measures and a reconciliation to production costs, which are the comparable GAAP financial measure.

For the three months ended March 31, 2022 and 2021, Seabee produced 52,582 and 23,735 ounces of gold, respectively. The increase in gold production was the result of a mill feed grade of 17.8 g/t during the first quarter of 2022, a 110% increase compared to the same period in 2021, as mining accessed a continuation of a very high grade zone outside of the Mineral Reserve that was first mined in the second quarter of 2021. AISC of $596/oz was below full-year guidance due to the increased production during the quarter. Seabee also benefited from continued operational excellence initiatives that drove improved mine performance in the first quarter, including a quarterly record of 102,528 tonnes mined (approximately 1,150 tonnes per day). Grades are expected to return closer to plan (approximately 9.2 g/t) through the remainder of 2022.

Following the record quarterly performance, Seabee is tracking to the top end of the mine's 115,000 to 125,000 gold production guidance, while costs track to the lower end of the $895 to $945 per ounce AISC guidance.

Puna, Argentina


Three months ended March 31,

Operating Data


2022


2021

Silver produced ('000 oz)



1,303



1,792

Silver sold ('000 oz)



1,760



1,949

Lead produced ('000 lb)



7,303



6,164

Lead sold ('000 lb)



10,212



6,102

Zinc produced ('000 lb)



1,843



3,079

Zinc sold ('000 lb)



3,129



808

Gold equivalent sold ('000 oz) (2)



22,513



28,214








Ore mined (kt)



347



239

Waste removed (kt)



2,078



1,994

Total material mined (kt)



2,425



2,234

Strip ratio



6.0



8.3








Ore milled (kt)



373



383

Silver mill feed grade (g/t)



114.4



153.7

Lead mill feed grade (%)



0.97



0.83

Zinc mill feed grade (%)



0.44



0.61

Silver mill recovery (%)



92.8



94.6

Lead mill recovery (%)



91.6



87.8

Zinc mill recovery (%)



44.0



59.4








Average realized silver price ($/oz sold)


$

23.85


$

26.02

Production costs ($/oz silver sold)


$

20.33


$

12.92

Cash costs ($/oz silver sold) 9


$

13.06


$

10.65

AISC ($/oz silver sold) 9


$

14.67


$

13.10



(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 Puna. See "Non-GAAP Financial Measures" for an explanation of these financial measures and a reconciliation to production costs, which are the comparable GAAP financial measure.

For the three months ended March 31, 2022 and 2021, Puna produced 1.3 million and 1.8 million ounces of silver, respectively, a 27% decrease against the prior year period. The decrease is primarily due to silver grades and tonnes processed that were 26% and 3% lower, respectively, during the three months ended March 31, 2022. Unfavorable weather conditions during the first two months of the first quarter of 2022 impeded access to the bottom of Phase 2 of the mine containing high-grade ore. As such, lower grades of ore in existing stockpiles were fed into the plant, which resulted in fewer silver ounces produced.

Puna remains on track to produce 8.0 to 9.0 million ounces of silver at mine site AISC of $14.75 to $16.25 per ounce in 2022. Production is expected to remain weighted to the second half of 2022, with tonnes processed targeted to remain at or above 4,500 tpd throughout the year.

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, 2022, filed with the U.S. Securities and Exchange Commission (the "SEC") and available on the SEC website at www.sec.gov or www.ssrmining.com.

  • Conference call and webcast: Tuesday, May 3, 2022, at 5:00 pm EDT.


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 8630


All other callers:

+1 (412) 317-0088, replay code 8630

Dividend Declaration

On May 3, 2022 the Board of Directors declared a quarterly cash dividend of $0.07 per common share, payable on June 9, 2022 to holders of record at the close of business on May 13, 2022. This dividend qualifies as an 'eligible dividend' for Canadian income tax purposes.

The dividend payment applies to holders of SSR Mining's common shares, which trade on the Toronto Stock Exchange and the Nasdaq under the symbol SSRM, and to holders of its CHESS Depositary Interests ("CDIs"), which trade on the Australian Securities Exchange under the symbol SSR. Each CDI confers a beneficial interest in one common share. Therefore, CDI holders are entitled to a dividend calculated on the same basis as the holders of SSR Mining's common shares.

SSR Mining has sought and been granted a temporary waiver of certain of the ASX Settlement Operating Rules. Under the authority of the waiver, the processing of conversions of common shares to CDIs, or CDIs to common shares, lodged on or after or after May 12, 2022, will be deferred until after the record date of May 13, 2022. The key dates with respect to the dividend are as follows:

Last date for processing requests to convert CDIs into common shares and to convert common shares into CDIs before the record date for the dividend


...