VANCOUVER, BC, Aug. 6, 2020 /PRNewswire/ - SSR Mining Inc.
(NASDAQ: SSRM) (TSX: SSRM) ("SSR Mining") reports consolidated
financial results for the second quarter ended June 30,
2020.
Paul Benson, President and CEO
said, "Each of our sites have responded admirably to this
challenging environment, implementing new protocols to keep our
employees safe when they come to work. Corporately, we
reported positive income from mine operations totaling $34 million during the quarter and our cash
balance was further strengthened, sitting at $462 million as of June
30. We have been pleased with the safe ramp-ups at both
Seabee and Puna, with both operations implementing phased restarts
during the quarter. Importantly, we continued to advance our
zero-premium merger with Alacer Gold and anticipate closing the
transaction in the near-term."
Second Quarter 2020 Highlights:
(All figures are in
U.S. dollars unless otherwise noted)
- Financial performance: With Seabee Gold Operation and
Puna Operations on COVID-19 related temporary care and maintenance
for the quarter, reported positive income from mine operations
totaling $34.2 million, a net loss of
$6.3 million, or loss per share of
$0.05, and adjusted attributable net
loss of $2.1 million, or loss per
share of $0.02.(1)
- Announced a zero-premium merger with Alacer Gold:
Completion of the transaction with Alacer Gold will create a
leading intermediate precious metals producer with robust margins,
strong free cash flow generation, and long mine lives led by a
highly experienced management team with a track record of value
creation.
- Maintained strong balance sheet and liquidity: Cash
balance at quarter end increased to $461.7
million.
- Strong operational result at the Marigold mine: Produced
49,918 ounces of gold at cash costs of $864 per payable ounce of gold
sold.(1) Total material mined was over 22 million
tonnes, a quarterly record in Marigold's 31 year history.
- Continued exploration success: Drilling at Trenton
Canyon yielded high-grade gold results from newly discovered
sulphide mineralization in a geologic setting analogous to other
high-grade underground gold mines in Nevada.
- Safe restart of operation at Seabee Gold Operation and Puna
Operations: At Seabee, a phased restart was implemented
beginning with underground mine development in early June. At Puna
Operations, transport of ore from Chinchillas to the plant began
May 22, followed by concentrate
production beginning June 12, and
mining of ore at the Chinchillas mine on June 25.
- Divested SilverCrest equity position: On May 14, 2020, sold entire SilverCrest Metals Inc.
investment for a pre-tax gain of approximately C$55.3 million.
(1)
|
We report the
non-GAAP financial measures of cash costs per payable ounce of gold
and silver sold, adjusted attributable net income (loss) and
adjusted attributable net income (loss) per share to manage and
evaluate operating performance. See "Cautionary Note Regarding
Non-GAAP Measures".
|
Marigold mine, U.S.
|
Three months
ended
|
Operating
data
|
June 30
2020
|
March 31
2020
|
December 31
2019
|
September 30
2019
|
June 30
2019
|
Total material mined
(kt)
|
22,054
|
20,259
|
18,457
|
19,033
|
19,254
|
Waste removed
(kt)
|
16,947
|
15,255
|
11,736
|
12,676
|
12,185
|
Total ore stacked
(kt)
|
5,107
|
5,004
|
6,721
|
6,357
|
7,070
|
Gold stacked grade
(g/t)
|
0.30
|
0.30
|
0.36
|
0.51
|
0.38
|
Gold recovery
(%)
|
76.0
|
76.0
|
76.0
|
77.0
|
75.0
|
Strip
ratio
|
3.3
|
3.0
|
1.7
|
2.0
|
1.7
|
|
|
|
|
|
|
Mining cost ($/t
mined)
|
$
|
1.46
|
$
|
1.64
|
$
|
1.83
|
$
|
1.73
|
$
|
1.65
|
Processing cost ($/t
processed)
|
$
|
1.18
|
$
|
1.21
|
$
|
1.03
|
$
|
1.17
|
$
|
1.01
|
General and
administrative costs
($/t processed)
|
$
|
0.78
|
$
|
0.70
|
$
|
0.54
|
$
|
0.54
|
$
|
0.47
|
|
|
|
|
|
|
Gold produced
(oz)
|
49,918
|
58,448
|
59,186
|
52,968
|
54,922
|
Gold sold
(oz)
|
46,387
|
58,028
|
61,088
|
50,650
|
59,702
|
|
|
|
|
|
|
Realized gold price
($/oz) (1)
|
$
|
1,722
|
$
|
1,588
|
$
|
1,478
|
$
|
1,481
|
$
|
1,309
|
|
|
|
|
|
|
Cash costs ($/oz)
(1)
|
$
|
864
|
$
|
824
|
$
|
778
|
$
|
822
|
$
|
835
|
AISC ($/oz)
(1)
|
$
|
1,373
|
$
|
1,277
|
$
|
1,117
|
$
|
1,104
|
$
|
986
|
|
|
|
|
|
|
Financial data
($000s)
|
|
|
|
|
|
Revenue
|
$
|
79,786
|
$
|
92,081
|
$
|
90,198
|
$
|
74,820
|
$
|
78,039
|
Income from mine
operations
|
$
|
30,261
|
$
|
32,457
|
$
|
30,263
|
$
|
22,064
|
$
|
13,939
|
Capital expenditures
(2)
|
$
|
13,348
|
$
|
13,900
|
$
|
17,768
|
$
|
10,496
|
$
|
6,924
|
Capitalized
stripping
|
$
|
8,733
|
$
|
10,927
|
$
|
2,116
|
$
|
2,031
|
$
|
871
|
Exploration
expenditures (3)
|
$
|
1,135
|
$
|
1,102
|
$
|
1,190
|
$
|
1,990
|
$
|
2,452
|
|
|
(1)
|
We report the
non-GAAP financial measures of realized gold price, cash costs and
AISC per payable ounce of gold sold to manage and evaluate
operating performance at the Marigold mine. For further
information, please refer to "Cautionary Note Regarding Non-GAAP
Measures."
|
(2)
|
Excludes
capitalized exploration expenditures.
|
(3)
|
Includes
capitalized and expensed exploration expenditures.
|
Mine production
In the second quarter of 2020, 22.1 million tonnes of material
were mined, a 9% increase compared to the first quarter of 2020,
reflecting the impact of shorter haul distances associated with
increased waste movement and enhanced shovel and truck
availability.
During the second quarter of 2020, we delivered approximately
5.1 million tonnes of ore to the heap leach pads at a gold grade of
0.30 g/t. This compares to 5.0 million tonnes of ore delivered to
the heap leach pads at a gold grade of 0.30 g/t in the first
quarter of 2020. The gold grade delivered to the leach pad was
comparable to the prior quarter; however, the strip ratio increased
by 10% to 3.3:1 in the second quarter of 2020 compared to the prior
quarter. The consistency in gold grade from the previous quarter
reflects the continued mining in similar areas as the prior
quarter. The increase in strip ratio is due to further stripping of
upper portions of the Mackay pit. During the second quarter, we
continued construction on our new leach pad. Construction is
progressing to plan and is on track to be completed late this
year.
During the second quarter of 2020, the Marigold mine produced
49,918 ounces of gold, a decrease of 15% compared to the prior
quarter due to lower ounces stacked through the first two quarters
of 2020. The first quarter of 2020 benefited from a greater number
of tonnes stacked at a higher grade during the fourth quarter of
2019.
Mine operating costs
Cash costs and AISC per payable ounce of gold sold are
non-GAAP financial measures. Please see "Cautionary Note Regarding
Non-GAAP Measures".
In the second quarter of 2020, cash costs per payable ounce of
gold sold were $864, a 5% increase
compared to the prior quarter due to an increase in per unit
royalty costs due to higher realized gold prices and lower costs
capitalized to deferred stripping. Total unit mining costs of
$1.46 per tonne in the second quarter
of 2020 were 11% lower than the previous quarter primarily due to a
9% increase in tonnes mined, lower diesel costs and lower
maintenance costs due to component change-out timing. Processing
unit costs were 2% lower than the previous quarter due to a 2%
increase in ore tonnes stacked at similar total processing costs.
General and administrative costs unit costs were 11% higher in the
second quarter of 2020 compared to the first quarter of 2020 due to
a 13% increase in costs as a result of employee transportation and
other costs relating to COVID-19 safety protocols.
In the second quarter of 2020, AISC per payable ounce of gold
sold was $1,373, an 8% increase
compared to the prior quarter due to higher cash costs and an
increase in capital expenditures per payable gold ounce sold.
Capital expenditures during the second quarter included the planned
purchase of a new haul truck, construction of a new leach pad and
capitalized maintenance components.
Mine sales
Average realized gold price is a non-GAAP financial measure.
Please see "Cautionary Note Regarding Non-GAAP Measures".
In the second quarter of 2020, we sold 46,387 ounces of gold, a
20% decrease compared to sales of 58,028 ounces of gold sold in the
first quarter of 2020 due to lower production and a marginal
build-up in finished goods inventories. We realized an average gold
price of $1,722 per ounce during the
second quarter of 2020, an increase of 8% compared to an average
realized gold price of $1,588 per
ounce during the first quarter of 2020.
Exploration
Our exploration plan for 2020 is focused on the discovery of
additional Mineral Resources south of the currently producing
Mackay Pit, including targets at Trenton Canyon, Valmy, East Basalt and Crossfire. During the
second quarter of 2020, exploration drilling on extensions to oxide
mineralization have demonstrated positive results at Trenton
Canyon, Valmy and Crossfire.
During the second quarter of 2020, exploration drilling amounted
to 19,400 meters in 61 holes, with the majority of the drilling
completed at Trenton Canyon and Valmy. We have drilled over 39,870 meters in
118 drill holes during the six months ended June 30, 2020.
At Trenton Canyon, we continue to systematically explore
extensions to existing near-surface oxide deposits similar to those
mined at Marigold and higher-grade sulphide deposits associated
with deep fault structures and favourable Comus Formation
sedimentary rocks similar to those hosting the gold deposits at the
Turquoise Ridge mine. Our exploration plan for 2020 now includes
6,300 meters of core drilling supported by seismic and gravity
geophysical surveys for high-grade, sulphide gold mineralization,
and 75,000 meters of reverse circulation drilling for oxide gold
mineralization.
Seabee Gold Operation, Canada
|
Three months
ended
|
Operating
data
|
June 30
2020
|
March 31
2020
|
December 31
2019
|
September 30
2019
|
June 30
2019
|
Total ore milled
(t)
|
—
|
89,282
|
87,394
|
77,465
|
88,424
|
Ore milled per day
(t/day)
|
—
|
981
|
950
|
842
|
971
|
Gold mill feed grade
(g/t)
|
—
|
10.34
|
7.89
|
12.39
|
9.83
|
Gold recovery
(%)
|
—
|
98.1
|
97.9
|
98.8
|
98.4
|
|
|
|
|
|
|
Mining costs ($/t
mined)
|
$
|
—
|
$
|
68
|
$
|
59
|
$
|
61
|
$
|
53
|
Processing costs ($/t
processed)
|
$
|
—
|
$
|
31
|
$
|
29
|
$
|
28
|
$
|
35
|
General and
administrative costs
($/t processed)
|
$
|
—
|
$
|
65
|
$
|
59
|
$
|
59
|
$
|
50
|
|
|
|
|
|
|
Gold produced
(oz)
|
—
|
29,521
|
22,069
|
32,345
|
26,539
|
Gold sold
(oz)
|
—
|
27,714
|
24,362
|
28,278
|
24,276
|
|
|
|
|
|
|
Realized gold price
($/oz) (1)
|
$
|
—
|
$
|
1,615
|
$
|
1,484
|
$
|
1,480
|
$
|
1,329
|
|
|
|
|
|
|
Cash costs ($/oz)
(1)
|
$
|
—
|
$
|
544
|
$
|
505
|
$
|
373
|
$
|
526
|
AISC ($/oz)
(1)
|
$
|
—
|
$
|
982
|
$
|
751
|
$
|
715
|
$
|
828
|
|
|
|
|
|
|
Financial data
($000s)
|
|
|
|
|
|
Revenue
|
$
|
—
|
$
|
44,697
|
$
|
36,142
|
$
|
41,331
|
$
|
32,237
|
Income from mine
operations
|
$
|
—
|
$
|
19,731
|
$
|
13,735
|
$
|
22,134
|
$
|
11,762
|
Capital expenditures
(2)
|
$
|
1,476
|
$
|
9,027
|
$
|
2,772
|
$
|
5,406
|
$
|
3,358
|
Capitalized
development
|
$
|
1,538
|
$
|
3,067
|
$
|
3,312
|
$
|
3,352
|
$
|
3,345
|
Exploration
expenditures (3)
|
$
|
475
|
$
|
2,437
|
$
|
1,210
|
$
|
2,131
|
$
|
2,257
|
|
|
(1)
|
We report the
non-GAAP financial measures of realized gold price, cash costs and
AISC per payable ounce of gold sold to manage and evaluate
operating performance at the Seabee Gold Operation. For further
information, please refer to "Cautionary Note Regarding Non-GAAP
Measures."
|
(2)
|
Excludes
capitalized exploration expenditures.
|
(3)
|
Includes
capitalized and expensed exploration expenditures.
|
Mine production
The Seabee Gold Operations did not mill any ore or produce any
gold during the second quarter of 2020 as operations remained
temporarily suspended due to the COVID-19 pandemic.
In response to the COVID-19 pandemic, our Seabee Gold Operation
was voluntarily placed into temporary care and maintenance on
March 25, 2020 as a precautionary
measure to protect our employees, their families and our
communities. Through this period, employees maintained the mine in
a state of operational readiness.
In June 2020, we commenced a
phased restart of production. The first phase focused on
underground ventilation raise and capital development within the
mine while we assessed COVID-19-related protocols. Limited ore
extraction was initiated at the end of June. In early July, we
commenced the second phase, which involved increasing underground
development rates and mine production while continuing to monitor
COVID-19 related protocols. In August, we expect to commence the
third and final phase, which involves a restart of milling
operations and ramp up to full mine production with a complete
workforce, while continuing to maintain effective COVID-19-related
protocols.
Mine operating costs
Cash costs and AISC per payable ounce of gold sold are
non-GAAP financial measures. Please see "Cautionary Note Regarding
Non-GAAP Measures".
Cash costs and AISC per payable ounce of gold sold were nil
during the second quarter of 2020, as no production occurred.
Expenditures incurred during the quarter were classified as care
and maintenance expenses.
During the second quarter, we incurred $3
million in capital expenditures, mainly related to mine
development, the purchase of mining equipment and the tailings
management project.
Mine sales
There were no gold sales during the second quarter of 2020 as a
direct result of the temporary suspension of operations.
Exploration
Exploration plans, including geology drilling, at the Seabee
Gold Operation for 2020 initially focused on Mineral Reserves
definition and Mineral Resources addition at Gap Hanging Wall ("Gap
HW") and increasing Mineral Reserves and Mineral Resources at
Santoy 8A.
Due to the temporary suspension of operations prompted by the
COVID-19 pandemic, we were unable to complete any exploration work
at the site in the second quarter. For the remainder of 2020, we
have reduced our underground drilling to 38,000 meters and surface
drilling to 7,500 meters.
In the second quarter, development began on the access drift to
the Gap HW of the Santoy mine. We expect to intersect the existing
Gap HW Mineral Resources in the third quarter of 2020 and then
develop the structure as we target establishing a new Mineral
Reserve at Gap HW when estimated at year-end 2020.
Exploration at Seabee recommenced in July
2020. The focus for the remainder of 2020 is expected to be
on infill drilling and extension to Gap HW. Additionally, a 3,000
meter surface drill program focused at the Fisher property is
expected to begin in the third quarter of 2020.
Puna Operations, Argentina
(amounts presented on 100%
basis)
|
Three months
ended
|
Operating
data
|
June 30
2020
|
|
March 31
2020
|
|
December 31
2019
|
|
September 30
2019
|
|
June 30
2019
|
Total material mined
(kt)
|
91
|
|
1,953
|
|
3,244
|
|
3,116
|
|
3,304
|
Waste removed
(kt)
|
43
|
|
1,674
|
|
2,725
|
|
2,531
|
|
3,114
|
Strip
ratio
|
0.9
|
|
6.0
|
|
5.3
|
|
4.3
|
|
16.4
|
Ore milled
(kt)
|
78
|
|
340
|
|
400
|
|
336
|
|
313
|
|
|
|
|
|
|
Silver mill feed
grade (g/t)
|
159
|
|
170
|
|
174
|
|
165
|
|
160
|
Lead mill feed grade
(%)
|
0.78
|
|
0.81
|
|
0.99
|
|
0.81
|
|
0.71
|
Zinc mill feed grade
(%)
|
0.54
|
|
0.44
|
|
0.63
|
|
0.60
|
|
0.46
|
Silver recovery
(%)
|
91.6
|
|
95.3
|
|
95.1
|
|
93.5
|
|
92.4
|
Lead recovery
(%)
|
87.0
|
|
91.4
|
|
91.9
|
|
88.1
|
|
79.4
|
Zinc recovery
(%)
|
38.5
|
|
55.0
|
|
54.3
|
|
49.3
|
|
48.1
|
|
|
|
|
|
|
Mining costs ($/t
mined)
|
$
|
11.10
|
|
$
|
3.62
|
|
$
|
2.62
|
|
$
|
2.76
|
|
$
|
2.33
|
Processing costs ($/t
milled)
|
$
|
46.07
|
|
$
|
29.98
|
|
$
|
29.53
|
|
$
|
36.34
|
|
$
|
32.57
|
General and
administrative costs ($/t milled)
|
$
|
7.55
|
|
$
|
8.36
|
|
$
|
9.11
|
|
$
|
9.24
|
|
$
|
8.27
|
|
|
|
|
|
|
Silver produced ('000
oz)
|
366
|
|
1,770
|
|
2,132
|
|
1,664
|
|
1,486
|
Silver sold ('000
oz)
|
624
|
|
1,834
|
|
2,584
|
|
1,505
|
|
2,679
|
|
|
|
|
|
|
Lead produced ('000
lb) (1)
|
1,176
|
|
5,536
|
|
7,985
|
|
5,304
|
|
3,879
|
Lead sold ('000 lb)
(1)
|
1,683
|
|
6,407
|
|
9,371
|
|
4,119
|
|
7,652
|
|
|
|
|
|
|
Zinc produced ('000
lb) (2)
|
359
|
|
1,821
|
|
3,007
|
|
2,206
|
|
1,539
|
Zinc sold ('000 lb)
(2)
|
418
|
|
2,166
|
|
3,067
|
|
2,030
|
|
5,757
|
|
|
|
|
|
|
Realized silver price
($/oz) (3)
|
$
|
15.45
|
|
$
|
17.47
|
|
$
|
17.32
|
|
$
|
17.31
|
|
$
|
14.92
|
Realized lead price
($/lb) (3)
|
$
|
0.71
|
|
$
|
0.85
|
|
$
|
0.92
|
|
$
|
0.94
|
|
$
|
0.85
|
Realized zinc price
($/lb) (3)
|
$
|
0.86
|
|
$
|
0.88
|
|
$
|
1.11
|
|
$
|
1.03
|
|
$
|
1.28
|
|
|
|
|
|
|
Cash costs ($/oz)
(3,5)
|
$
|
13.51
|
|
$
|
13.49
|
|
$
|
8.90
|
|
$
|
14.22
|
|
$
|
9.80
|
AISC ($/oz)
(3,5)
|
$
|
17.68
|
|
$
|
16.40
|
|
$
|
11.18
|
|
$
|
17.36
|
|
$
|
13.08
|
|
|
|
|
|
|
Financial Data
($000s)
|
|
|
|
|
|
Revenue
|
$
|
12,699
|
|
$
|
27,685
|
|
$
|
51,263
|
|
$
|
31,697
|
|
$
|
44,873
|
Income (loss) from
mine operations
|
$
|
3,916
|
|
$
|
(7,405)
|
|
$
|
14,915
|
|
$
|
7,708
|
|
$
|
4,126
|
Capital expenditures
(4)
|
$
|
1,773
|
|
$
|
2,088
|
|
$
|
2,134
|
|
$
|
1,782
|
|
$
|
1,157
|
Capitalized
stripping
|
$
|
—
|
|
$
|
2,192
|
|
$
|
2,565
|
|
$
|
1,385
|
|
$
|
6,273
|
Exploration
expenditures
|
$
|
5
|
|
$
|
150
|
|
$
|
492
|
|
$
|
229
|
|
$
|
65
|
|
|
(1)
|
Data for lead
production and sales relate only to lead in lead
concentrate.
|
(2)
|
Data for zinc
production and sales relate only to zinc in zinc
concentrate.
|
(3)
|
We report the
non-GAAP financial measures of realized silver, lead and zinc
prices, cash costs and AISC per payable ounce of silver sold to
manage and evaluate operating performance at Puna Operations. For
further information, please refer to "Cautionary Note Regarding
Non-GAAP Measures."
|
(4)
|
Does not include
capitalized exploration or development of the Chinchillas
project.
|
(5)
|
Puna Operations
cash costs and AISC per payable silver ounce sold include a
write-down of metal inventories to net realizable value of $0.1
million in the second quarter of 2020, $8.5 million in the first
quarter of 2020, $1.2 million in the fourth quarter of 2019, $1.5
million in the third quarter of 2019 and $0.5 million in the second
quarter of 2019.
|
Mine production
On March 20, 2020, we temporarily
suspended operations at Puna Operations as a result of
government-mandated restrictions due to the COVID-19 pandemic. The
Government of Argentina has since
reinstated mining as an essential business activity.
During the second quarter, we implemented a phased restart while
complying with government regulations and guidelines. In mid-May,
we re-activated the transport of stockpiled ore from the
Chinchillas mine to the Pirquitas plant, followed by the restart of
ore processing in mid-June and mining activities in
late-June.
Total material mined during the second quarter of 2020 was 0.1
million tonnes, while material milled was 0.1 million tonnes. Ore
stockpiles exist at both the Chinchillas and Pirquitas sites.
Processed ore contained an average silver grade of 159 g/t, a 6%
decrease compared to the first quarter of 2020. The average silver
recovery in the second quarter of 2020 was 91.6%. Puna Operations
produced 0.4 million ounces of silver, 1.2 million pounds of lead
and 0.4 million pounds of zinc. Silver production decreased 79%
compared to the first quarter of 2020 due to the temporary
suspension of operations for most of the second quarter.
Mine operating costs
Cash costs and AISC per payable ounce of silver sold are
non-GAAP financial measures. Please see "Cautionary Note Regarding
Non-GAAP Measures".
In the second quarter of 2020, cash costs per payable ounce of
silver sold were $13.51, consistent
with the first quarter of 2020. Cash costs for the period were
negatively impacted by lower by-product credits as a result of
final price adjustments on sales settled during the quarter. Unit
costs are not meaningful in the second quarter due to the short
operating period of the mine and mill with associated restart
costs. Expenditures incurred during the quarter that were not
related to operating activities were classified as care and
maintenance expenses. AISC per payable ounce of silver sold was
$17.68, an 8% increase compared to
the first quarter of 2020.
Mine sales
In the second quarter of 2020, silver sales totaled 0.6 million
ounces, a 66% decrease compared to the first quarter of 2020. Lead
and zinc sales totaled 1.7 million pounds and 0.4 million pounds,
respectively, representing decreases of 74% and 81%, respectively,
compared to the prior quarter. The decrease in concentrate sales is
due to lower production in the second quarter of 2020 as a result
of the temporary suspension of operations for most of the
quarter.
Exploration
During the second quarter of 2020, we received the assay results
related to the exploration drill program on the Granada target at the Pirquitas property and
are analyzing these results. No further work is planned for the
Granada target at this time.
Outlook
Please see "Cautionary Note Regarding Forward-Looking
Statements."
As previously announced on March 25,
2020, we withdrew our 2020 operating guidance due to
operating interruptions at certain of our mines and projects caused
by the Coronavirus Disease 2019 ("COVID-19") pandemic. As discussed
in "Results of Operations" in Section 4, the Seabee Gold Operation
and Puna Operations were placed into care and maintenance at the
end of the first quarter of 2020 while Marigold's operations
continued uninterrupted.
Through the second quarter, we implemented protocols at all of
our mine sites to control risks related to COVID-19 and both the
Seabee Gold Operation and Puna Operations entered into phased
restart processes toward the end of the second quarter. At the
Seabee Gold Operation, limited underground development and ore
mining operations commenced in June. Ore extraction and development
rates ramped up through July and milling operations at the Seabee
Gold Operation are scheduled to commence on August 7. Milling operations will commence with
an ore stockpile of more than 25,000 tonnes, providing mill
operating flexibility relative to mine extraction. The restart
sequencing and ongoing prioritization of activities at our Seabee
Gold Operation will maintain flight and camp operations within
determined health and safety protocols.
Puna Operations returned to production in the second quarter
with mining, hauling and milling all operating. Travel protocols
and restrictions within Argentina
and the province of Juyjuy remain in place, causing sporadic
impacts to operations. Puna Operations is operating with a planned
lower workforce and contract labour to reduce transport levels and
camp occupancy, with certain capital projects being
re-sequenced.
Currently, the Marigold mine, Seabee Gold Operation and Puna
Operations are operating at expected levels in the context of the
COVID-19 pandemic. The mines continue to work with national and
local authorities in accordance with applicable regulations and
remain vigilant with respect to on-site specific protocols to
protect the health and safety of our employees and stakeholders,
however all sites remain exposed to potential COVID-19 impacts. We
expect to re-issue our operating and capital guidance concurrent
with closing of our announced merger with Alacer Gold Corp.
("Alacer").
See the "Risks and Uncertainties" and "Cautionary Notes"
sections of our latest MD&A for further information on the
impact that the COVID-19 pandemic has had on our business and the
actions we are taking in response.
Consolidated financial summary
(presented in thousands
of USD, except for per share value)
Selected Financial
Data
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
|
2020
|
|
|
2019
|
|
2020
|
|
2019
|
Revenue
|
$
|
92,485
|
|
$
|
155,149
|
|
$
|
256,948
|
|
$
|
281,399
|
Income from mine
operations
|
$
|
34,177
|
|
$
|
29,827
|
|
$
|
78,960
|
|
$
|
60,064
|
Gross margin
(2)
|
37%
|
|
19%
|
|
31%
|
|
21%
|
Operating (loss)
income
|
$
|
(5,111)
|
|
$
|
19,591
|
|
$
|
29,655
|
|
$
|
39,219
|
Net (loss)
income
|
$
|
(6,276)
|
|
$
|
12,414
|
|
$
|
17,700
|
|
$
|
18,146
|
Net (loss) income
attributable to equity holders of SSR Mining
|
$
|
(6,276)
|
|
$
|
10,631
|
|
$
|
17,700
|
|
$
|
17,095
|
Basic attributable
(loss) income per share
|
$
|
(0.05)
|
|
$
|
0.09
|
|
$
|
0.14
|
|
$
|
0.14
|
Adjusted attributable
(loss) income before tax (1) (4)
|
$
|
(2,966)
|
|
$
|
18,426
|
|
$
|
40,687
|
|
$
|
38,988
|
Adjusted attributable
net (loss) income (1) (4)
|
$
|
(2,104)
|
|
$
|
17,788
|
|
$
|
35,286
|
|
$
|
34,004
|
Adjusted basic
attributable (loss) income per share (1) (4)
|
$
|
(0.02)
|
|
$
|
0.15
|
|
$
|
0.29
|
|
$
|
0.28
|
Cash generated by
operating activities
|
$
|
21,768
|
|
$
|
33,367
|
|
$
|
81,345
|
|
$
|
33,064
|
Cash generated by
(used in) investing activities
|
$
|
39,144
|
|
$
|
(44,955)
|
|
$
|
(10,217)
|
|
$
|
(78,717)
|
Cash generated by
(used in) generated by financing activities
|
$
|
582
|
|
$
|
791
|
|
$
|
(113,401)
|
|
$
|
78,232
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial
Position
|
|
|
|
|
June 30,
2020
|
|
|
|
|
|
December 31,
2019
|
Cash and cash
equivalents
|
$
|
|
|
|
461,716
|
|
$
|
|
|
|
503,647
|
Marketable
securities
|
|
|
|
|
9,411
|
|
|
|
|
|
66,453
|
Current
assets
|
|
|
|
|
746,128
|
|
|
|
|
|
899,662
|
Current
liabilities
|
|
|
|
|
83,264
|
|
|
|
|
|
234,171
|
Working capital
(3)
|
|
|
|
|
662,864
|
|
|
|
|
|
665,491
|
Total
assets
|
|
|
|
|
1,634,694
|
|
|
|
|
|
1,750,107
|
|
|
(1)
|
We report non-GAAP
financial measures including adjusted attributable income before
tax, adjusted attributable net income, and adjusted basic
attributable income per share to manage and evaluate our operating
performance. See "Cautionary Note Regarding Non-GAAP
Measures."
|
(2)
|
Gross margin is
defined as income from mine operations divided by
revenue.
|
(3)
|
Working capital is
defined as current assets less current liabilities.
|
(4)
|
We have not
included care and maintenance expenses of $19.7 million and $21.1
million, respectively, as an adjusting item in our determination of
adjusted attributable income before tax, adjusted attributable net
income and adjusted basic attributable income per share. See
"Cautionary Note Regarding Non-GAAP Measures."
|
Quarterly financial summary
Realized gold price is a non-GAAP financial measure. Please
see "Cautionary Note Regarding Non-GAAP Measures".
Revenue in the second quarter of 2020 decreased by 40% compared
to the second quarter of 2019, mainly due to nil gold sales volume
at our Seabee Gold Operation and limited silver sales volume at
Puna Operations as a result of the temporary suspension of their
respective operations in response to the COVID-19
pandemic.
Income from mine operations of $34.2
million in the second quarter of 2020 generated a gross
margin of 37% compared to income from mine operations of
$29.8 million and a gross margin of
19% in the second quarter of 2019. Relative to the comparative
quarter of 2019, income from mine operations was higher at the
Marigold mine mainly due to a 32% increase in realized gold price.
In the second quarter of 2020, we generated a net loss of
$6.3 million, a decrease of
$18.7 million compared to net income
of $12.4 million in the second
quarter of 2019, as operating income was negatively impacted by the
costs associated with temporary suspension of operations at the
Seabee Gold Operation and Puna Operations.
Cash generated by operating activities in the second quarter of
2020 was $21.8 million compared to
cash generated by operating activities of $33.4 million in the second quarter of 2019. The
decrease in cash generated by operating activities compared to the
comparative period of 2019 is due to lower income from mine
operations at our Seabee Gold Operation and Puna Operations as a
result of the temporary suspension of operations. This decrease was
partially offset by an increase in cash generated by our Marigold
mine, which generated higher income from mine operations mainly due
to a higher realized gold price, offset partially by lower gold
sales volume. The decrease in income from mine operations was
partially offset by the impact of changes in working capital,
driven by the collection of our concentrate trade receivables at
Puna Operations.
Cash generated by investing activities in the second quarter of
2020 was $39.1 million compared to
cash used in investing activities of $45.0
million in the second quarter of 2019. In the second quarter
of 2020, we sold marketable securities for net proceeds of
$83.8 million, offset partially by
$19.4 million in purchases of
marketable securities. Additionally, we invested $16.3 million in plant and equipment,
$8.7 million in capitalized stripping
and $0.6 million in capitalized
exploration costs.
Cash generated by financing activities of $0.6 million in the second quarter of 2020 was
consistent with cash generated by financing activities of
$0.8 million in the second quarter of
2019.
Year-to-date financial summary
Revenue for the six months ended June 30,
2020 decreased by 9% compared to the six months ended
June 30 2019, mainly due to 9% and
47% lower gold sale volumes at our Marigold mine and Seabee Gold
Operation, respectively, and 32% lower silver sale volumes at Puna
Operations. The lower sales volumes at the Seabee Gold Operation
and Puna Operations are due to the temporary suspension of
operations related to COVID-19. These decreases were offset
partially by an increase in realized gold prices of approximately
25%.
Income from mine operations of $79.0
million for the six months ended June
30, 2020 generated a gross margin of 31% compared to income
from mine operations of $60.1 million
and a gross margin of 21% for the six months ended June 30, 2019. For the six months ended
June 30, 2020, we generated net
income of $17.7 million, a decrease
of $0.4 million compared to net
income of $18.1 million for the six
months ended June 30, 2019.
Cash generated by operating activities for the six months ended
June 30, 2020 increased to
$81.3 million compared to cash
generated by operating activities of $33.1
million for the six months ended June
30, 2019. The increase in cash generated by operating
activities compared to the comparative period of 2019 is mainly due
to the impact of changes in working capital, driven by the
collection of our concentrate trade receivables at Puna Operations.
The increase due to the impact of changes in working capital was
partially offset by lower income from mine operations at our Seabee
Gold Operation and Puna Operations as a result of the temporary
suspension of operations.
Cash used in investing activities for the six months ended
June 30, 2020 decreased to
$10.2 million compared to cash used
in investing activities of $78.7
million for the six months ended June
30, 2019. For the six months ended June 30, 2020, we sold marketable securities for
net proceeds of $95.9 million, offset
partially by $29.6 million in
purchases of marketable securities. Additionally, we invested
$53.5 million in plant and equipment,
$21.8 million in capitalized
stripping, $1.2 million in
capitalized exploration costs and $4.6
million in underground development costs.
Cash used in financing activities was $113.4 million for the six months ended
June 30, 2020, compared to cash
generated by financing activities of $78.2
million for the six months ended June
30, 2019. For the six months ended June 30, 2020, we redeemed our remaining
outstanding 2013 Notes for $115.0
million. We also received proceeds from stock option
exercises of $2.2 million. For the
six months ended June 30, 2019, we
repurchased a portion of our 2013 Notes for $152.3 million and issued our 2.50% convertible
senior notes due in 2039 (the "2019 Notes") for net proceeds of
$222.9 million.
Corporate summary
SSR Mining has an experienced management team of mine-builders
and operators with proven capabilities. We have a strong balance
sheet with $461.7 million in cash and
cash equivalents as at June 30, 2020. We are committed to
delivering safe production through relentless emphasis on
Operational Excellence. We are also focused on growing production
and Mineral Reserves through the exploration and acquisition of
assets for accretive growth, while maintaining financial
strength.
On May 11, 2020, we announced that
we entered into a definitive arrangement agreement with Alacer (the
"Agreement") pursuant to which we agreed to acquire all of the
outstanding common shares of Alacer in a zero premium
share-for-share transaction (the "Transaction"). Completion of the
Transaction would create a combined company with a market
capitalization of approximately $5.3
billion, based on closing prices for the common shares of
both companies on the Toronto Stock Exchange as of August 5, 2020. Under the terms of the Agreement,
we will acquire each Alacer share for 0.3246 of an SSR Mining
share. At closing of the Transaction, SSR Mining and Alacer
shareholders will collectively own approximately 57% and 43% of SSR
Mining, respectively, on an issued and outstanding share basis.
The combined entity will continue as SSR Mining Inc. with two
corporate offices, one in Denver,
Colorado and one in Vancouver,
British Columbia. The combined entity will be led by
Rod Antal as President & CEO and
Michael Anglin as Chairman.
Following the completion of the Transaction, the new board of
directors will be comprised of five directors from each of the
current SSR Mining and Alacer boards of directors for a total of
ten directors, including the CEO.
The zero-premium merger of SSR Mining and Alacer is expected to
create a leading intermediate gold producer with robust margins,
strong free cash flow generation, and long mine lives across four
mining-friendly jurisdictions. In addition, the increased financial
strength of the combined business is expected to allow us to
leverage the proven project execution capabilities of the combined
management team to continue delivering on the extensive organic
growth portfolio and compete for attractive assets as they arise.
The complementary nature of the assets and the cultural alignment
of the organizations are expected to facilitate an effective
integration and allow us to continue to deliver value to our
shareholders.
On July 10, 2020, each of SSR
Mining and Alacer received the required shareholder approvals for
the Transaction and on July 17, 2020,
Alacer obtained a final order from the Supreme Court of
Yukon approving the Transaction.
Completion of the Transaction, expected to occur in the third
quarter of 2020, is subject to the receipt of certain regulatory
approvals and satisfaction of other customary closing
conditions.
On March 11, 2020, the World
Health Organization declared COVID-19 to be a pandemic. During the
first six months of 2020, the COVID-19 pandemic has impacted major
economic and financial markets. Most industries have been impacted
by the COVID-19 pandemic and are facing operating challenges
associated with the regulations and guidelines resulting from
efforts to contain it. The pandemic has also significantly impacted
the prices of the primary metals we produce and caused significant
price volatility. Overall, the impact resulted in higher prices of
gold and silver at the end of the second quarter of 2020, with
further increases subsequent to quarter-end.
As a direct result of the COVID-19 pandemic, we temporarily
suspended operations at our Puna Operations and Seabee Gold
Operation on March 20, 2020 and
March 25, 2020, respectively. During
the temporary suspensions at Puna Operations and the Seabee Gold
Operation, we continued to perform care and maintenance activities.
Costs incurred during the suspensions associated with these
activities have been separately identified and accounted for as
care and maintenance costs within operating income in the condensed
consolidated interim statements of (loss) income.
During the second quarter of 2020, at both Puna Operations and
Seabee Gold Operation, we commenced a phased restart of
production, starting with the re-activation of the transport of ore
at Puna Operations in May 2020,
followed by processing of stockpiled ore and ramp up of mining
activities at the Chinchillas mine in June
2020. During June, underground development commenced at the
Seabee Gold Operation and ore mining operations during the last
week of the month. Ore extraction ramped up during July and this
continued into August. Milling operations at the Seabee Gold
Operation are scheduled to commence in early August. The Marigold
mine continues to operate with limited impact from COVID-19 and we
have implemented numerous measures intended to protect our
employees, including ensuring physical distancing and providing
additional protective equipment, as we have at the Seabee Gold
Operation and Puna Operations.
On May 14, 2020, we completed a
transaction to divest all of our equity position in SilverCrest
Metals Inc. ("SilverCrest"). We divested an aggregate 9,000,645
common shares of SilverCrest at a price of C$10.06 per share for gross proceeds of
$64.3 million (C$90.5 million). Upon divestment, a pre-tax gain
of $37.8 million (C$55.3 million) was recognized on our investment
within other comprehensive income.
During the first quarter of 2020, holders of our 2.875% senior
convertible notes issued in 2013 (the "2013 Notes") had the right
to surrender their 2013 Notes for purchase by us at their option
(the "Put Option") pursuant to the terms of the indenture governing
the 2013 Notes any time before January 31,
2020. As of the expiration of the Put Option on January 31, 2020, $49,000 aggregate principal amount of the 2013
Notes were put to us and redeemed, and $4,000 of 2013 Notes were converted to
equity.
The remaining outstanding 2013 Notes were callable by us at par,
plus accrued and unpaid interest thereon. On February 13, 2020, we provided notice of
redemption to call the remaining outstanding 2013 Notes. On
March 30, 2020, we redeemed all of
our remaining outstanding 2013 Notes consisting of an aggregate
principal amount of $114,947,000 plus
accrued interest of $542,000 in
exchange for payment of cash of $115,487,000 and equity of $2,000.
Qualified Persons
The scientific and technical information contained in this news
release relating to the Marigold mine has been reviewed and
approved by Greg Gibson, P.E., and James N.
Carver, each of whom is a SME Registered Member and a
qualified person under National Instrument 43-101 - Standards of
Disclosure for Mineral Projects ("NI 43-101"). Mr. Gibson is our
General Manager and Mr. Carver is our Exploration Manager at the
Marigold mine. The scientific and technical information contained
in this news release relating to the Seabee Gold Operation has been
reviewed and approved by Samuel Mah,
P.Eng., and Jeffrey Kulas, P. Geo.,
each of whom is a qualified person under NI 43-101. Mr. Mah is our
Director, Mine Planning, and Mr.
Kulas is our Manager Geology, Mining Operations at the Seabee Gold
Operation. The scientific and technical information contained in
this news release relating to Puna Operations has been reviewed and
approved by Robert Gill, P.Eng. and
F. Carl Edmunds, P. Geo., each of
whom is a qualified person under NI 43-101. Mr. Gill is our General
Manager at Puna Operations and Mr. Edmunds is our Vice President,
Exploration.
Management Discussion & Analysis and Conference
Call
This news release should be read in conjunction with our
unaudited Condensed Consolidated Interim Financial Statements and
our MD&A as filed with the Canadian Securities Administrators
and available at www.sedar.com or our website at
www.ssrmining.com.
- Conference call and webcast: Friday,
August 7, 2020, at 11:00 am
ET.
Toll-free in U.S. and
Canada:
|
+1 (800)
319-4610
|
All other
callers:
|
+1 (416)
915-3239
|
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 4952
|
All other
callers:
|
+1 (412) 317-0088,
replay code 4952
|
About SSR Mining
SSR Mining Inc. is a Canadian-based precious metals producer
with three operations, including the Marigold mine in Nevada, U.S., the Seabee Gold Operation in
Saskatchewan, Canada and Puna
Operations in Jujuy, Argentina. We
also have two feasibility stage projects and a portfolio of
exploration properties in North and South
America. We are committed to delivering safe production
through relentless emphasis on Operational Excellence. We are also
focused on growing production and Mineral Reserves through the
exploration and acquisition of assets for accretive growth, while
maintaining financial strength.
For further information contact:
Michael McDonald
Director, Investor Relations
SSR Mining Inc.
Vancouver, BC
Toll free: +1 (888) 338-0046
All others: +1 (604) 689-3846
E-Mail: invest@ssrmining.com
To receive SSR Mining's news releases by e-mail, please
register using the SSR Mining website at www.ssrmining.com.
Cautionary Note Regarding Forward-Looking
Statements
This news release contains forward-looking information within
the meaning of Canadian securities laws and forward-looking
statements within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995 (collectively, "forward-looking
statements"). All statements, other than statements of historical
fact, are forward-looking statements.
Generally, forward-looking statements can be identified by
the use of words or phrases such as "expects," "anticipates,"
"plans," "projects," "estimates," "assumes," "intends," "strategy,"
"goals," "objectives," "potential," "believes," or variations
thereof, or stating that certain actions, events or results "may,"
"could," "would," "might" or "will" be taken, occur or be achieved,
or the negative of any of these terms or similar expressions. The
forward-looking statements in this news release relate to, among
other things: forecasts; outlook; the expected timing for
re-issuing our operating and capital guidance future production of
gold, silver and other metals; timing of production; future cash
costs and AISC per payable ounce of gold, silver and other metals
sold; the prices of gold, silver and other metals; our ability to
discover new areas of mineralization, to add Mineral Reserves,
including establishing a new Mineral Reserves estimate at Gap HW at
our Seabee Gold Operation by year-end 2020, and to define
additional Mineral Resources, including the discovery of additional
Mineral Resources at Trenton Canyon, Valmy, East Basalt, and Crossfire; the
continued construction of our new leach pad at the Marigold mine,
including the expected completion and timing thereof; the timing
and extent of capital investment at our operations; the timing and
extent of capitalized stripping at our operations; the timing of
production and production levels and our expected drill programs at
each of the Marigold mine, the Seabee Gold Operation and Puna
Operations; the impact of the COVID-19 outbreak on our business and
financial condition, including the ability to continue operations
at the Seabee Gold Operation and Puna Operations based on the
implementation of our phased restart plans; the timing, focus
and results of our exploration and development programs, including
our ability to achieve certain exploration objectives at the
Marigold mine and Seabee Gold Operation and to safely resume our
underground exploration drilling at the Seabee Gold Operation in
the third quarter; the Marigold mine continuing to operate with
limited impact from COVID-19, including exploration activities at
the Marigold mine continuing as planned; the anticipated completion
of the Transaction with Alacer and the timing and benefits thereof;
current financial resources being sufficient to carry out plans,
commitments and business requirements for the next twelve months;
movements in commodity prices not impacting the value of any
financial instruments; estimated production rates for gold, silver
and other metals produced by us; the estimated cost of sustaining
capital; ongoing or future development plans and capital
replacement; estimates of expected or anticipated economic returns
from our mining projects, including future sales of metals,
concentrate or other products produced by us and the timing
thereof; and our plans and expectations for our properties and
operations.
These forward-looking statements are subject to a variety of
known and unknown risks, uncertainties and other factors that could
cause actual events or results to differ from those expressed or
implied, including, without limitation, the following: uncertainty
of production, development and exploration plans and cost estimates
for the Marigold mine, the Seabee Gold Operation, Puna Operations
and our projects, including as a result of the COVID-19 pandemic;
the continued development and resumption of operations at Seabee
Gold Operation and Puna Operations; disruptions to our supply
chain, customers and workforce due to the COVID-19 outbreak; the
responses of the relevant governments to the COVID-19 outbreak not
being sufficient to contain the impact of the COVID-19 outbreak; an
economic recession or downturn as a result of the COVID-19 outbreak
that materially adversely affects our operations or liquidity
position; failure to obtain any remaining required regulatory and
other approvals (or to do so in a timely manner) in connection with
the Transaction with Alacer; the anticipated timeline for
completion of the Transaction with Alacer may change for a number
of reasons, including the inability to secure necessary regulatory,
stock exchange or other approvals in the time assumed, developments
with respect to the COVID-19 pandemic or the need for additional
time to satisfy the conditions to the completion of the
Transaction; our ability to replace Mineral Reserves; commodity
price and exchange rate fluctuations; political or economic
instability and unexpected regulatory changes; currency
fluctuations; the possibility of future losses; general economic
conditions; counterparty and market risks related to the sale of
our concentrates and metals; uncertainty in the accuracy of Mineral
Reserves and Mineral Resources estimates and in our ability to
extract mineralization profitably; differences in U.S. and Canadian
practices for reporting Mineral Reserves and Mineral Resources;
lack of suitable infrastructure or damage to existing
infrastructure; future development risks, including start-up delays
and cost overruns; our ability to obtain adequate financing for
further exploration and development programs and opportunities;
uncertainty in acquiring additional commercially mineable mineral
rights; delays in obtaining or failing to obtain governmental
permits, or non-compliance with our permits; our ability to attract
and retain qualified personnel and management; the impact of
governmental regulations, including health, safety and
environmental regulations, including increased costs and
restrictions on operations due to compliance with such regulations;
unpredictable risks and hazards related to the development and
operation of a mine or mineral property that are beyond our
control; reclamation and closure requirements for our mineral
properties; potential labour unrest, including labour actions by
our unionized employees at Puna Operations; indigenous peoples'
title claims and rights to consultation and accommodation may
affect our existing operations as well as development projects and
future acquisitions; certain transportation risks that could have a
negative impact on our ability to operate; assessments by taxation
authorities in multiple jurisdictions; recoverability of VAT and
significant delays in the VAT collection process in Argentina; claims and legal proceedings,
including adverse rulings in litigation against us and/or our
directors or officers; complying with anti-corruption laws and
internal controls, and increased regulatory compliance costs;
complying with emerging climate change regulations and the impact
of climate change; the ability to fully realize the value of our
shareholdings in our marketable securities, due to changes in
price, liquidity or disposal cost of such marketable securities;
uncertainties related to title to our mineral properties and the
ability to obtain surface rights; the sufficiency of our insurance
coverage; civil disobedience in the countries where our mineral
properties are located; operational safety and security risks;
actions required to be taken by us under human rights law;
competition in the mining industry for mineral properties; our
ability to complete and successfully integrate an announced
acquisition; reputation loss resulting in decreased investor
confidence; increased challenges in developing and maintaining
community relations and an impediment to our overall ability to
advance our projects; an event of default under our 2019 Notes may
significantly reduce our liquidity and adversely affect our
business; failure to meet covenants under our senior secured
revolving credit facility; epidemics, pandemics or other public
health crises could adversely affect our business; information
systems security threats; the ability to fully realize our interest
in deferred consideration received in connection with divestitures;
conflicts of interest that could arise from certain of our
directors' and/or officers' involvement with other natural resource
companies; other risks related to our common shares; and those
other various risks and uncertainties identified under the heading
"Risk Factors" in our most recent Annual Information Form filed
with the Canadian securities regulatory authorities and included in
our most recent Annual Report on Form 40-F filed with the
SEC.
This list is not exhaustive of the factors that may affect
any of our forward-looking statements. Our forward-looking
statements are based on what our management considers to be
reasonable assumptions, beliefs, expectations and opinions based on
the information currently available to it.
Assumptions have been made regarding, among other things, our
ability to carry on our exploration and development activities, our
ability to meet our obligations under our property agreements, the
timing and results of drilling programs, the discovery of Mineral
Resources and Mineral Reserves on our mineral properties, the
timely receipt of required approvals and permits, including those
approvals and permits required for successful project permitting,
construction and operation of our projects, the price of the
minerals we produce, the costs of operating and exploration
expenditures, our ability to operate in a safe, efficient and
effective manner, our ability to obtain financing as and when
required and on reasonable terms, current financial resources being
sufficient to carry out plans, commitments and business
requirements for the next twelve months, our ability to continue
operating the Marigold mine, our ability to resume operations at
the Seabee Gold Operation and Puna Operations, there being no cases
of COVID-19 in our workforce or any requirement for employees to
self-isolate to the extent that such cases of COVID-19 impact our
operations, the responses of the relevant governments to the
COVID-19 outbreak being sufficient to contain the impact of the
COVID-19 outbreak, long-term effects of the COVID-19 outbreak not
having a material adverse impact on our operations or liquidity
position, the receipt, in a timely manner, of remaining required
approvals in respect of the Transaction with Alacer, dilution and
mining recovery assumptions, assumptions regarding stockpiles, the
success of mining, processing, exploration and development
activities, the accuracy of geological, mining and metallurgical
estimates, no significant unanticipated operational or technical
difficulties, maintaining good relations with the communities
surrounding the Marigold mine, the Seabee Gold Operation and Puna
Operations, no significant events or changes relating to
regulatory, environmental, health and safety matters, certain tax
matters and no significant and continuing adverse changes in
general economic conditions or conditions in the financial markets
other than as set out herein (including commodity prices, foreign
exchange rates and inflation rates). You are cautioned that the
foregoing list is not exhaustive of all factors and assumptions
which may have been used. We cannot assure you that actual events,
performance or results will be consistent with these
forward-looking statements, and management's assumptions may prove
to be incorrect. Our forward-looking statements reflect current
expectations regarding future events and operating performance and
speak only as of the date hereof and we do not assume any
obligation to update forward-looking statements if circumstances or
management's beliefs, expectations or opinions should change other
than as required by applicable law. For the reasons set forth
above, you should not place undue reliance on forward-looking
statements.
Cautionary Note to U.S. Investors
This news release includes Mineral Reserves and Mineral
Resources classification terms that comply with reporting standards
in Canada and the Mineral Reserves
and the Mineral Resources estimates are made in accordance with NI
43-101. 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. These standards differ significantly from the
requirements of the SEC set out in SEC Industry Guide 7.
Consequently, Mineral Reserves and Mineral Resources information
included in this news release is not comparable to similar
information that would generally be disclosed by domestic U.S.
reporting companies subject to the reporting and disclosure
requirements of the SEC. Under SEC standards, mineralization may
not be classified as a "reserve" unless the determination has been
made that the mineralization could be economically produced or
extracted at the time the reserve determination is made.
In addition, the SEC's disclosure standards normally do not
permit the inclusion of information concerning "Measured Mineral
Resources," "Indicated Mineral Resources" or "Inferred Mineral
Resources" or other descriptions of the amount of mineralization in
mineral deposits that do not constitute "reserves" by U.S.
standards in documents filed with the SEC. U.S. investors should
understand that "Inferred Mineral Resources" have a great amount of
uncertainty as to their existence and great uncertainty as to their
economic and legal feasibility. Moreover, the requirements of NI
43-101 for identification of "reserves" are also not the same as
those of the SEC, and reserves reported by us in compliance with NI
43-101 may not qualify as "reserves" under SEC standards.
Accordingly, information concerning mineral deposits set forth
herein may not be comparable with information made public by
companies that report in accordance with U.S. standards.
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. These non-GAAP measures should be read in conjunction
with our condensed consolidated interim financial
statements.
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SOURCE SSR Mining Inc.