DENVER, Jan. 19, 2021 /CNW/ - SSR Mining Inc. ("SSR
Mining" or the "Company") (NASDAQ: SSRM) (TSX: SSRM) (ASX: SSR)
announces full year 2020 production results and 2021 outlook. In
2020, the Company's four operating assets produced approximately
711,000 gold-equivalent ounces, delivering strong fourth quarter
performance of approximately 220,000 gold-equivalent ounces. In
2021, the Company expects to produce, on a consolidated basis,
720,000 to 800,000 gold-equivalent ounces at consolidated all-in
sustaining costs ("AISC") of $1,050
to $1,110 per ounce.
Rod Antal, President and
CEO said, "2020 was a transformational year for SSR
Mining as we successfully completed and integrated the merger with
Alacer Gold, delivered a number of value-enhancing catalysts, and
navigated the challenges presented by the COVID-19 pandemic. During
this period of unprecedented change, the Company delivered on its
2020 production guidance and all four operating sites exited the
year with strong operational momentum and clearly defined growth
initiatives.
Looking ahead to 2021, we are focused on continuing to
generate peer leading free cash flow and returning capital to our
shareholders, while prudently investing-in and optimizing our
assets. This year we will be advancing and executing on our organic
growth portfolio aimed at increasing production, reducing costs,
and extending mine lives from our near-mine, low capital intensity
pipeline. Our 2021 outlook builds on our 2020 performance and will
continue to demonstrate our capability to sustain 700,000 to
800,000 gold-equivalent ounces of production for the next 5+
years."
Full Year 2021 Outlook
Operating Guidance
(100%) (1)
|
|
Çöpler
(2)
|
Marigold
|
Seabee
|
Puna
|
Other
|
Consolidated
|
Gold
Production
|
koz
|
310 - 340
|
235 - 265
|
95 - 105
|
—
|
—
|
640 - 710
|
Silver
Production
|
Moz
|
—
|
—
|
—
|
6.0 - 7.0
|
—
|
6.0 - 7.0
|
Gold Equivalent
Production
|
koz
|
310 -
340
|
235 -
265
|
95 -
105
|
80 -
90
|
—
|
720 -
800
|
Cash Cost per Ounce
(3)
|
$/oz
|
550 - 600
|
810 - 860
|
525 - 575
|
10.00 -
11.50
|
—
|
660 - 715
|
Sustaining
Capital
Expenditures
(4)
|
$M
|
52
|
53
|
11
|
19
|
—
|
135
|
Capitalized Stripping
/
Capitalized Development
|
$M
|
9
|
47
|
19
|
13
|
—
|
88
|
Sustaining
Exploration
Expenditures
|
$M
|
2
|
7
|
1
|
1
|
—
|
11
|
General &
Administrative
|
$M
|
—
|
—
|
—
|
—
|
30 - 35
|
30 - 35
|
Share Based
Compensation
|
$M
|
—
|
—
|
—
|
—
|
15 - 20
|
15 - 20
|
All-In Sustaining
Cost per
Ounce (3)
|
$/oz
|
760 -
810
|
1,250 -
1,290
|
860 -
910
|
16.00 -
17.50
|
—
|
1,050 -
1,110
|
Growth Capital
Expenditures
|
$M
|
26
|
—
|
7
|
—
|
—
|
33
|
Growth Exploration
and
Development Expenditures(5)
|
$M
|
31
|
11
|
7
|
—
|
5
|
54
|
Total Growth
Capital
|
$M
|
57
|
11
|
14
|
—
|
5
|
87
|
(1)
|
Figures may not
add due to rounding.
|
(2)
|
Figures are
reported on a 100% basis. Çöpler is 80% owned by SSR
Mining.
|
(3)
|
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 Çöpler, Marigold, Seabee and Puna. See "Cautionary
Note Regarding Non-GAAP Measures". AISC includes site level G&A
allocations, reclamation and closure cost provision accretion
expense and IFRS 16 lease payments.
|
(4)
|
Excludes
sustaining exploration expenditures. Includes $9.5 million in
oxygen plant lease payments at Çöpler.
|
(5)
|
Growth exploration
and development expenditures are shown on a 100%, of which SSR
Mining attributable amount totals $46M.
|
2021 Priority Operational and Development Catalysts:
Çöpler:
- Flotation circuit construction, with expected ramp-up beginning
mid-year 2021
- Ardich exploration and concurrent development towards first
production in 2023
- C2 exploration and advancement, focusing on an expandable
development plan
Marigold:
- Ongoing cost reduction and continuous improvement
initiatives
- Oxide exploration targeting higher grades and conversion at
Mackay, Valmy, New Millennium,
Trenton Canyon and Buffalo Valley
- Sulfide exploration and evaluation
Seabee:
- Increase mining rates to exploit latent mill capacity
- Gap Hanging Wall Mineral Resource conversion
- Seabee and Fisher exploration and resource development
Puna:
- Continue steady state production with focus on increasing
productivity
- Achieve and sustain mill throughput rates above 4,000 tonnes
per day
- Implement and integrate owner-operated ore transport fleet
Free cash flow generation in 2021 is expected to be
approximately 75% weighted to the second half of the year due to
the timing of the ramp-up and commissioning of the flotation
circuit at Çöpler, timing of capital expenditures across all sites,
working capital seasonality at Seabee, and tax and royalty payments
that are paid in the first half of the year.
Çöpler, Turkey
For 2020, gold production for Çöpler was 327,000 ounces, in-line
with updated full-year guidance. Gold production was 83,000 ounces
in the fourth quarter of 2020.
In 2021, Çöpler is expected to produce 310,000 to 340,000 ounces
of gold at mine site AISC of $760 to
$810 per ounce. For the full-year,
gold production is weighted to the second half of 2021 due to the
commissioning and ramp-up of the flotation circuit within the
sulfide plant. The flotation circuit is anticipated to increase the
gold and sulfide sulfur grades processed through the autoclaves,
reduce unit costs, and increase sulfide plant throughput and gold
production. Commissioning and ramp-up of the flotation circuit is
expected by mid-year 2021.
Sustaining capital expenditures are planned to total
$52 million, which includes ongoing
construction of the tailings storage facility ("TSF"), oxygen plant
lease payments and for continued optimization work on the sulfide
plant. Of this amount, $8 million is
carried over from 2020 due to delays related to COVID-19. Growth
capital expenditures are planned to total $26 million, which includes capital for the
flotation circuit and heap leach pad expansions. Capitalized
stripping is expected to be $9
million for the full year.
Marigold, USA
For 2020, gold production for Marigold was 234,000 ounces,
in-line with updated full-year guidance. Marigold finished the year
with strong quarterly gold production of 77,000 ounces, a new
quarterly record for the operation.
In 2021, Marigold production is expected to be 235,000 to
265,000 ounces of gold at mine site AISC of $1,250 to $1,290
per ounce.
Sustaining capital expenditures are planned to total
$53 million, which includes scheduled
mine fleet replacements, construction of de-watering water wells,
construction of a new leach pad cell and equipment purchases.
Capitalized stripping is expected to be $47
million for the full year due to stripping of the M4 phase
within the Mackay pit. 2021 represents a high-stripping year for
Marigold, providing access to future ore sources in 2022 and
beyond.
Seabee, Canada
For 2020, gold production for Seabee was 82,000 ounces, in-line
with updated full-year guidance. Gold production was 32,000 ounces
in the fourth quarter of 2020.
In 2021, Seabee is expected to produce 95,000 to 105,000 ounces
of gold at mine site AISC of $860 to
$910 per ounce.
Sustaining capital expenditures are planned to total
$11 million which includes mining and
surface equipment purchases and underground infrastructure. Growth
capital expenditures, which are predominantly carried over from
2020 due to COVID-19 related impacts, are planned to total
$7 million, and are for phase two of
the Triangle Lake TSF expansion project. Capital expenditures are
concentrated in the first half of the year during the ice road
season. Capitalized development is expected to be $19 million for the full year to support higher
mining rates and establish access to deeper portions of Santoy 8A
and 9A.
Puna Operations, Argentina
For 2020, silver production from Puna was 5.6 million ounces,
exceeding updated full-year guidance. Silver production was 2.2
million ounces in the fourth quarter of 2020.
In 2021, Puna is expected to produce 6.0 to 7.0 million ounces
of silver at mine site AISC of $16.00
to $17.50 per ounce. The operation is
expected to transition to the owner-operated ore haulage truck
fleet in the first half of the year following COVID-19 related
delays in 2020.
Sustaining capital expenditures are planned to total
$19 million, which includes
$8 million carried over from 2020 and
is primarily related to maintenance of mining equipment and plant
maintenance. Capitalized stripping is expected to be $13 million for the full year.
Exploration and Resource Development
In 2021, total exploration and resource development expenditures
are expected to total $65 million, of
which $54 million represents
discretionary growth expenditures to advance near-mine brownfield
opportunities across our portfolio.
At Çöpler, 2021 consolidated exploration expenditures are
estimated at $33 million, with a
primary focus on Ardich Mineral Resource expansion and conversion,
Çöpler Saddle, Mavialtin, C2 copper-gold exploration, and Çöpler
District Master Plan development.
At Marigold, 2021 total exploration expenditures are estimated
at $18 million, focusing on oxide
Mineral Resource additions and conversion at Mackay, Valmy, New Millennium, and Trenton Canyon.
Growth exploration expenditures also include studies and test work
at Trenton Canyon and Buffalo Valley.
At Seabee, 2021 total exploration expenditures are estimated at
$8 million with a focus on expansion
and definition of the Santoy Gap Hanging Wall and surface drill
programs at the Seabee, Fisher and Amisk properties. The Company
exercised its option agreement at the Fisher property in
January 2021, and now holds an 80%
ownership interest and operatorship of the Fisher joint venture.
At Puna, 2021 total exploration expenditures are anticipated to
total $1 million. Other exploration
and development expenditures total $5
million and are related to Pitarrilla, San Luis, U.S. and Canadian greenfield
exploration opportunities.
Assumptions
All figures in U.S. dollars, unless otherwise noted. Gold
equivalent figures for 2021 operating guidance are based on a
gold-to-silver ratio of 76:1. Gold equivalent figures for 2020 are
based on a gold-silver ratio of 81:1. Cash costs and capital
expenditures guidance is based on an oil price of $45 per barrel and an exchange rate of
1.30 Canadian dollars to one U.S. dollar. All figures are presented on a
100% basis.
About SSR Mining
SSR Mining Inc. is a leading, free cash flow focused gold
company with four producing assets located in the USA, Turkey,
Canada, and Argentina, combined with a global pipeline
of high-quality development and exploration assets in the
USA, Turkey, Mexico, Peru,
and Canada. In 2020, the four
operating assets produced 711,000 gold-equivalent ounces.
SSR Mining's diversified asset portfolio is comprised of high
margin, long-life assets along several of the world's
most prolific precious metal districts
including the Çöpler mine along the Tethyan
belt in Turkey; the Marigold mine along the
Battle Mountain-Eureka trend in Nevada, USA; the Seabee mine along
the Trans-Hudson Corridor in Saskatchewan, Canada; and Puna
Operations along the Bolivian silver belt in Jujuy,
Argentina. SSR Mining has an
experienced leadership team with a proven track record of value
creation. Across SSR Mining, the team has expertise in project
construction, mining (open pit and
underground), and processing (pressure oxidation, heap
leach, and flotation), with a strong commitment to health,
safety and environmental management.
SSR Mining intends to leverage its strong balance sheet and
proven track record of free cash flow generation as foundations to
organically fund growth across the portfolio and to
facilitate superior returns to shareholders.
SSR Mining is listed under the ticker symbol SSRM on the NASDAQ
and the TSX, and SSR on the ASX.
SSR Mining Contacts
F. Edward Farid, Executive Vice
President, Chief Corporate Development Officer
Brian Martin, Director, Corporate
Development & Investor Relations
SSR Mining Inc.
E-Mail: invest@ssrmining.com
Phone: +1 (888) 338-0046 or +1 (604) 689-3846
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 Information and
Statements:
Except for statements of historical fact relating to us,
certain statements contained in this press release constitute
forward-looking information, future oriented financial information,
or financial outlooks (collectively "forward-looking information")
within the meaning of Canadian 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 press
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 press 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 the COVID-19
pandemic, including the duration, severity and scope of the
pandemic and potential impacts on mining operations; and other risk
factors detailed from time to time in our reports filed with the
Canadian securities regulatory authorities.
Forward-looking information and statements in this press
release include statements concerning, among other things:
preliminary cost reporting in this document; production, cost, and
capital expenditure guidance; our near term operational and
development catalysts; 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; expectations regarding
COVID-19, its ongoing impact on us and any interruptions it may
cause on our operations; 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, 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.
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.sedar.com, 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.
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
National Instrument 43-101 – Standards of Disclosure for Mineral
Projects ("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's
rules that are applicable to domestic United States reporting companies.
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. 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.
Cash costs and AISC per ounce sold are Non-GAAP Measures with
no standardized definition under IFRS. For further information and
a detailed reconciliation to IFRS, please see the "Non-GAAP
Financial Measures" section of our Management's Discussion and
Analysis dated as of November 12,
2020 filed on SEDAR at www.sedar.com.
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SOURCE SSR Mining Inc.