VANCOUVER, Feb. 20, 2020 /PRNewswire/ - SSR Mining Inc.
(NASDAQ: SSRM) (TSX: SSRM) ("SSR Mining") reports consolidated
financial results for the fourth quarter and year ended
December 31, 2019.
Paul Benson, President and CEO
said, "SSR Mining had another successful year in 2019 as we
continued our track record of achieving production and cost
guidance for the eighth consecutive year. We delivered reserve
growth at Marigold and resource growth at Seabee, which continue to
support mine life extensions at both assets.
Looking ahead, 2020 consolidated production is forecast to grow
to approximately 425,000 gold equivalent ounces. With over
$500 million of cash and an outlook
of increasing production and higher margins at today's precious
metal prices, we are well positioned to continue our track record
of creating value for our shareholders."
Fourth Quarter and Year-End 2019 Highlights:
(All
figures are in U.S. dollars unless otherwise noted)
- Achieved annual production and cost guidance: Achieved
guidance for the eighth consecutive year by delivering gold
equivalent production of 421,828 ounces at cash costs of
$740 per payable gold equivalent
ounce sold. (1)
- Continued our track record of Mineral Reserves and Resources
growth: Successful exploration activities in 2019 increased
gold Mineral Reserves at the Marigold mine to 3.9 million ounces.
At the Seabee Gold Operation, gold Measured and Indicated Mineral
Resources (inclusive of Mineral Reserves) increased to 1.1 million
ounces and gold Inferred Mineral Resources increased to 583,000
ounces.
- Fourth consecutive year of positive earnings per share:
Annual basic attributable income per share in 2019 was $0.47, an increase of 840% from 2018. Annual
adjusted basic attributable income per share in 2019 was
$0.81, a 252% increase from 2018.
(1)
- Delivered record annual gold production at Seabee: The
operation achieved its sixth consecutive annual production record,
producing 112,137 ounces of gold, exceeding the top end of our
annual guidance. Annual cash costs were $464 per payable ounce of gold sold.
(1)
- Strong operating performance at Marigold: Delivered gold
production of 59,186 ounces for the fourth quarter of 2019,
resulting in annual production of 220,227 ounces of gold, marking
an annual production record and exceeding the top end of our annual
guidance. Reported annual cash costs of $811 per payable ounce of gold sold. (1)
- Successful ramp-up of Puna: Produced 7.7 million ounces
of silver in 2019 at annual cash costs of $10.38 per payable ounce of silver
sold.(1) Strong fourth quarter results with production
of 2.1 million ounces of silver and cash costs of $8.90 per payable ounce of silver sold
(1), demonstrating operational improvements made through
the year.
- Acquired 8,900 hectares contiguous to the Marigold mine:
Prospective land package on trend with several zones of gold
mineralization.
- Consolidated 100% ownership in Puna Operations:
Completed acquisition of the remaining 25% interest in Puna
Operations leading to an immediate increase in silver production
and improved operational flexibility.
- Maintained strong liquidity and balance sheet: Cash
balance increased to $504 million and
the value of marketable securities increased to $66 million.
- Completed $230 million
convertible notes offering: Issued $230
million aggregate principal amount of 2.50% unsecured
convertible senior notes on March 19,
2019. A portion of the proceeds was used to repurchase
$150 million of our outstanding
$265 million 2.875% convertible
notes.
- Published inaugural Sustainability Report: Report
outlines our approach to sustainability and underscores our
commitment to transparency with our stakeholders.
(1)
|
We report the
non-GAAP financial measures of cash costs per payable ounce of gold
and silver sold and basic attributable income per share to manage
and evaluate operating performance. See "Cautionary Note Regarding
Non-GAAP Measures".
|
Marigold Mine, U.S.
|
Three months
ended
|
Total
|
Operating
data
|
December 31,
2019
|
September 30,
2019
|
June 30,
2019
|
March 31,
2019
|
2019
|
2018
|
Total material mined
(kt)
|
18,457
|
19,033
|
19,254
|
17,295
|
74,039
|
70,431
|
Waste removed
(kt)
|
11,736
|
12,676
|
12,185
|
11,767
|
48,364
|
42,907
|
Total ore stacked
(kt)
|
6,721
|
6,357
|
7,070
|
5,528
|
25,676
|
27,526
|
Gold stacked grade
(g/t)
|
0.36
|
0.51
|
0.38
|
0.34
|
0.40
|
0.37
|
Gold recovery
(%)
|
76.0
|
77.0
|
75.0
|
73.0
|
75.4
|
73.5
|
Strip
ratio
|
1.7
|
2.0
|
1.7
|
2.1
|
1.9
|
1.6
|
|
|
|
|
|
|
|
Mining cost ($/t
mined)
|
1.83
|
1.73
|
1.65
|
1.73
|
1.74
|
1.76
|
Processing cost ($/t
processed)
|
1.03
|
1.17
|
1.01
|
1.20
|
1.10
|
1.03
|
General and
administrative cost
($/t processed)
|
0.54
|
0.54
|
0.47
|
0.54
|
0.51
|
0.45
|
|
|
|
|
|
|
|
Gold produced
(oz)
|
59,186
|
52,968
|
54,922
|
53,151
|
220,227
|
205,161
|
Gold sold
(oz)
|
61,088
|
50,650
|
59,702
|
55,517
|
226,957
|
198,884
|
|
|
|
|
|
|
|
Realized gold price
($/oz) (1)
|
1,478
|
1,481
|
1,309
|
1,303
|
1,391
|
1,261
|
|
|
|
|
|
|
|
Cash costs ($/oz)
(1)
|
778
|
822
|
835
|
812
|
811
|
723
|
AISC ($/oz)
(1)
|
1,117
|
1,104
|
986
|
930
|
1,034
|
974
|
|
|
|
|
|
|
|
Financial data
($000s)
|
|
|
|
|
|
|
Revenue
|
90,198
|
74,820
|
78,039
|
72,263
|
315,320
|
250,341
|
Income from mine
operations
|
30,263
|
22,064
|
13,939
|
12,981
|
79,247
|
50,213
|
Capital expenditures
(2)
|
17,768
|
10,496
|
6,924
|
3,167
|
38,355
|
52,935
|
Capitalized
stripping
|
2,116
|
2,031
|
871
|
2,293
|
7,311
|
7,489
|
Exploration
expenditures (3)
|
1,190
|
1,990
|
2,452
|
3,653
|
9,285
|
10,209
|
|
|
(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
For the year ended December 31,
2019, the Marigold mine produced 220,227 ounces of gold, an
increase of 7% compared to the 205,161 ounces of gold produced for
the year ended 2018. For the year ended 2019, gold sales were
226,957 ounces as 2019 began with 6,300 ounces in finished goods
inventory.
For the year ended December 31,
2019, total material mined was 74.0 million tonnes, a 5%
increase as compared to the year ended 2018. During the year ended
December 31, 2019, we mined 25.7
million ore tonnes, a 7% decrease from the previous year, offset by
an 8% increase in gold stacked grade.
During the fourth quarter of 2019, 18.5 million tonnes of
material were mined, a decrease of 3% compared to the third quarter
of 2019, due to a long shovel move and variance to planned haulage
cycles. A new leach pad cell was commissioned on schedule with
material stacking commencing in the fourth quarter.
During the fourth quarter of 2019, we delivered approximately
6.7 million tonnes of ore to the heap leach pads at a gold grade of
0.36 g/t. This compares to 6.4 million tonnes of ore delivered to
the heap leach pads at a gold grade of 0.51 g/t in the third
quarter of 2019. Gold grade mined in the fourth quarter of 2019 was
29% lower than the prior quarter as primary ore deliveries from
Mackay Phase 5 wound down and were replaced by lower grade material
from Mackay Phase 4. The strip ratio declined to 1.7:1 in the
fourth quarter of 2019, a decrease of 12% compared to the prior
quarter.
During the fourth quarter of 2019, the Marigold mine produced
59,186 ounces of gold, a 12% increase compared to the prior
quarter. The increase was due to higher-grade ore stacked during
the third quarter of 2019, becoming available for production in 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".
For the year ended December 31,
2019, cash costs per payable ounce of gold sold were
$811, an increase of 12% compared to
the year ended 2018, primarily due to higher leach pad opening
inventory unit costs. Total mining costs of $1.74 per tonne for the year ended December 31, 2019 were consistent with the prior
year primarily due to 5% higher tonnes mined, offset partially by
4% higher total mining costs. Processing and general and
administrative unit costs were higher for the year ended
December 31, 2019 compared to the
prior year mainly due to 7% fewer ore tonnes mined. Total
processing costs for the year ended December
31, 2019 were consistent with total processing costs for the
year ended 2018, while general and administrative costs increased
7% primarily due to higher labor costs.
For the year ended December 31,
2019, AISC per payable ounce of gold sold was $1,034 compared to $974 for the year ended December 31, 2018, primarily due to the higher
cash costs referred to above, offset partially by an increase in
the number of ounces sold.
In the fourth quarter of 2019, cash costs per payable ounce of
gold sold were $778, a decrease of 5%
compared to the previous quarter primarily due to lower leach pad
opening inventory unit costs in the fourth quarter resulting from
higher grades mined in the third quarter. Total mining costs of
$1.83 per tonne in the fourth quarter
of 2019 were 6% higher than the previous quarter due to 3% fewer
tonnes mined and 3% higher total mining costs. Total mining costs
were higher in the fourth quarter of 2019 mainly due to the timing
of haul truck tire replacements. Processing unit costs were 12%
lower in the fourth quarter of 2019 compared to the previous
quarter mainly due to 6% higher ore tonnes mined and 7% lower total
processing costs. Total processing costs were lower in the fourth
quarter of 2019 mainly due to lower cyanide consumption and lower
power unit rates. General and administrative unit costs in the
fourth quarter of 2019 were consistent with the previous quarter as
higher ore tonnes mined were offset by higher labor costs.
In the fourth quarter of 2019, AISC per payable ounce of gold
sold was $1,117 compared to
$1,104 in the third quarter of 2019
due to higher planned sustaining capital expenditures, primarily
related to the purchase of a PC7000 Komatsu shovel during the
quarter for approximately $10.6
million.
Mine sales
Realized gold price is a non-GAAP financial measure. Please
see "Cautionary Note Regarding Non-GAAP Measures".
For the year ended December 31,
2019, we sold 226,957 ounces of gold, a 14% increase
compared to sales of 198,884 ounces of gold during the prior year.
We realized an average gold price of $1,391 per ounce during the year ended
December 31, 2019, compared to an
average realized gold price of $1,261
per ounce during the year ended December 31,
2018.
In the fourth quarter of 2019, we sold 61,088 ounces of gold, a
21% increase compared to sales of 50,650 ounces of gold in the
third quarter of 2019. We realized an average gold price of
$1,478 per ounce during the fourth
quarter of 2019, compared to an average realized gold price of
$1,481 per ounce during the third
quarter of 2019.
Exploration
The main focus of the 2019 exploration program at Marigold was
to convert Red Dot Mineral Resources into Mineral Reserves. During
previous quarters, we conducted exploration drilling for additional
Mineral Resources along areas that were north and south of Red Dot,
within the Mackay pit and on Valmy
target areas such as Crossfire and East Basalt. During the fourth
quarter of 2019, we completed a total of 64 reverse circulation
("RC") drill holes for 20,682 meters on these targets.
During the year ended December 31,
2019, our Red Dot exploration program focused on
geotechnical drilling and engineering with the goal of declaring
additional Mineral Reserves. In the fourth quarter of 2019, we
completed the second phase of confirmation drilling, which included
nine core holes for 3,700 meters. Based on the results of these
evaluations, we converted Mineral Resources to Mineral Reserves and
Red Dot is anticipated to extend the Marigold mine life into the
early 2030s, without requiring expansion of the haul fleet or the
associated expansion capital.
Exploration at Marigold for the year ended December 31, 2019 was successful in replacing
mined depletion and growing Mineral Reserves compared to the year
ended December 31, 2018. Including
leach pad inventory, year-over-year Probable Mineral Reserves
increased by 18%. At the same time, Indicated Mineral Resources
(inclusive of Mineral Reserves and leach pad inventory) decreased
by 11% due to depletion and model changes. Inferred Mineral
Resources declined by 55% to 0.18 million gold ounces (16.2 million
tonnes at an average gold grade of 0.35 g/t). Please see the
section "Mineral Reserves and Mineral Resources" for more detail on
our Mineral Reserves and Mineral Resources.
During the fourth quarter of 2019, we completed 20,825 meters of
drilling in 64 RC drill holes at Trenton Canyon. RC drilling for
the year amounted to 93,006 meters in 272 drill holes.
Following the exploration release of July
30, 2019, we received another 42 intercepts with
grade-thickness products exceeding 20 gram-meters. These results,
in addition to earlier published drill assays, contribute to the
Mineral Resources reported for the Marigold mine.
For 2020, we are planning 64,000 meters of RC and core drilling
for resource growth at Trenton Canyon, Valmy, East Basalt, Mackay, and on two
recently acquired small land parcels internal to Marigold's mineral
claims package. This work includes diamond drilling to explore for
higher-grade sulphide hosted gold deposits between East Basalt and
Trenton Canyon.
Seabee Gold Operation, Canada
|
Three months
ended
|
Total
|
Operating
data
|
December 31,
2019
|
September 30,
2019
|
June 30,
2019
|
March 31,
2019
|
2019
|
2018
|
Total ore milled
(t)
|
87,394
|
77,465
|
88,424
|
90,756
|
344,039
|
351,999
|
Ore milled per day
(t/day)
|
950
|
842
|
971
|
1,008
|
943
|
964
|
Gold mill feed grade
(g/t)
|
7.89
|
12.39
|
9.83
|
8.59
|
9.56
|
9.16
|
Gold recovery
(%)
|
97.9
|
98.8
|
98.4
|
97.2
|
98.2
|
97.4
|
|
|
|
|
|
|
|
Mining cost ($/t
mined)
|
59
|
61
|
53
|
52
|
56
|
56
|
Processing cost ($/t
processed)
|
29
|
28
|
35
|
28
|
30
|
25
|
General and
administrative cost ($/t
processed)
|
59
|
59
|
50
|
53
|
54
|
56
|
|
|
|
|
|
|
|
Gold produced
(oz)
|
22,069
|
32,345
|
26,539
|
31,184
|
112,137
|
95,602
|
Gold sold (oz)
(1)
|
24,362
|
28,278
|
24,276
|
27,999
|
104,915
|
91,410
|
|
|
|
|
|
|
|
Realized gold price
($/oz) (2)
|
1,484
|
1,480
|
1,329
|
1,302
|
1,398
|
1,267
|
|
|
|
|
|
|
|
Cash costs ($/oz)
(2)
|
505
|
373
|
526
|
467
|
464
|
505
|
AISC ($/oz)
(2)
|
751
|
715
|
828
|
947
|
812
|
755
|
|
|
|
|
|
|
|
Financial data
($000s)
|
|
|
|
|
|
|
Revenue
|
36,142
|
41,331
|
32,237
|
36,431
|
146,141
|
115,655
|
Income from mine
operations
|
13,735
|
22,134
|
11,762
|
13,672
|
61,303
|
30,783
|
Capital
expenditures
|
2,772
|
5,406
|
3,358
|
8,772
|
20,308
|
7,054
|
Capitalized
development
|
3,312
|
3,352
|
3,345
|
3,379
|
13,388
|
9,074
|
Exploration
expenditures (3)
|
1,210
|
2,131
|
2,257
|
3,172
|
8,770
|
9,298
|
|
|
(1)
|
Beginning with the
first quarter of 2018, the holder of the 3% net smelter return
royalty elected to receive its royalty
in-kind and we will no longer report these ounces within gold
sold.
|
(2)
|
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. See "Cautionary Note
Regarding Non-GAAP Measures".
|
(3)
|
Includes
capitalized and expensed exploration expenditures.
|
Mine production
For the year ended December 31,
2019, the Seabee Gold Operation produced 112,137 ounces of
gold, an annual production record and a 17% increase compared to
the year ended December 31, 2018. The
increase in gold production was mainly due to higher mill feed head
grade, in addition to 1,244 ounces (on a gross basis) recovered
from sludge, fines and cathodes during the third quarter of
2019.
For the year ended December 31,
2019, the operation milled 344,039 tonnes of ore, a decrease
of 2% from the 351,999 tonnes milled during the year ended
December 31, 2018. For the year ended
December 31, 2019, the average gold
mill feed grade was 9.56 g/t, a 4% increase compared to the prior
year. The Santoy mine supplied 100% of ore milled, predominantly
from long hole stopes.
In the fourth quarter of 2019, the operation produced 22,069
ounces of gold, a 32% decrease from the third quarter of 2019,
mainly due to lower gold grades more than offsetting higher milling
rates.
In the fourth quarter of 2019, the operation milled 87,394
tonnes of ore compared to 77,465 tonnes in the third quarter of
2019. The mill achieved an average throughput of 950 tonnes per day
over the fourth quarter of 2019, a 13% increase compared to the
previous quarter, mainly due to increased mill feed from the Santoy
mine. During the fourth quarter of 2019, gold mill feed grade was
7.89 g/t, a 36% decrease compared to the third quarter of 2019, as
a result of stope sequencing. Gold recovery for the fourth quarter
of 2019 was 97.9%, consistent with the previous quarter.
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".
For the year ended December 31,
2019, cash costs per payable ounce of gold sold were
$464, 8% lower than the $505 for the year ended December 31, 2018. The decrease is due primarily
to a 15% increase in ounces sold in 2019 as a result of the higher
gold mill feed grade, offset partially by higher processing
costs.
For the year ended December 31,
2019, AISC per payable ounce of gold sold was $812, 8% higher than the $755 for the year ended December 31, 2018. The increase is due to higher
planned capital expenditures in 2019, related mainly to the
Tailings Management Facility expansion, offset partially by the
decrease in cash costs.
For the fourth quarter of 2019, cash costs per payable ounce of
gold sold were $505, 35% higher than
the $373 for the third quarter of
2019, due primarily to lower gold grade, 14% fewer ounces sold
compared to the third quarter of 2019 and increases in total mining
and general and administrative costs.
For the fourth quarter of 2019, AISC per payable ounce of gold
sold was $751, compared to
$715 in the third quarter of 2019 due
to higher cash costs in conjunction with lower ounces sold in the
fourth quarter of 2019, offset partially by lower sustaining
capital expenditures.
Mine sales
Realized gold price is a non-GAAP financial measure. Please
see "Cautionary Note Regarding Non-GAAP Measures".
For the year ended December 31,
2019, we sold 104,915 ounces of gold, a 15% increase
compared to the 91,410 ounces of gold sold in during the prior
year. We realized an average gold price of $1,398 per ounce during the year ended
December 31, 2019 compared to an
average realized gold price of $1,267
per ounce during the year ended December 31,
2018.
In the fourth quarter of 2019, we sold 24,362 ounces of gold, a
decrease of 14% compared to the 28,278 ounces of gold sold in the
third quarter of 2019. We realized an average gold price of
$1,484 per ounce during the fourth
quarter of 2019 compared to an average realized gold price of
$1,480 per ounce during the third
quarter of 2019.
Exploration
In 2019, exploration at Seabee focused on increasing and
upgrading Mineral Resources near the Santoy mine through 68,000
meters of drilling from surface and underground. Specific targets
included Santoy 8A and Santoy Gap and the recently discovered
Inferred Mineral Resources at Gap Hanging Wall ("Gap
HW").
For the year ended December 31,
2019, Mineral Reserves decreased by 18%, due to mining
depletion; however, the average gold grade is 11% higher compared
to the year ended December 31, 2018.
As of December 31, 2019, Measured and
Indicated Mineral Resources (inclusive of Mineral Reserves)
increased by 23% at an average gold grade of 10.61 g/t as a result
of our exploration focus at Gap HW. As of December 31, 2019, Inferred Mineral Resources are
583,000 ounces (2.13 million tonnes at an average gold grade of
8.50 g/t), 21% higher compared to the year ended December 31, 2018, due to conversion and
continued exploration activity at Gap HW. Gap HW is now a
significant discovery for the Seabee Gold Operation and remains
open on strike and at depth. Please see the section "Mineral
Reserves and Mineral Resources" for more detail on our Mineral
Reserves and Mineral Resources.
During the fourth quarter of 2019, Seabee Gold Operation
completed 12,738 meters of underground drilling for a total of
68,158 meters for the year ended December
31, 2019 to convert and extend portions of Santoy 8A, Santoy
Gap and Gap HW deposits. The majority of the drilled meters were
targeting Gap HW.
For 2020, we are planning to drill 50,000 meters in the area of
the Santoy mine and Gap HW as brownfield work, with another 37,000
meters of drilling on greenfield targets on tenures controlled by
us. Additionally, we are planning 12,000 meters of greenfield
drilling on the Fisher property.
Puna Operations, Argentina
(amounts presented on a
100% basis)
|
Three months
ended
|
Total
|
Operating
data
|
December 31,
2019
|
September 30,
2019
|
June 30,
2019
|
March 31,
2019
|
2019
|
2018
|
Total material mined
(kt) (1)
|
3,244
|
3,116
|
3,304
|
2,618
|
12,282
|
897
|
Waste removed (kt)
(1)
|
2,725
|
2,531
|
3,114
|
2,469
|
10,839
|
696
|
Strip ratio
(1)
|
5.3
|
4.3
|
16.4
|
16.6
|
7.5
|
3.5
|
Ore milled
(kt)
|
400
|
336
|
313
|
345
|
1,394
|
1,420
|
|
|
|
|
|
|
|
Silver mill feed
grade (g/t)
|
174
|
165
|
160
|
235
|
184
|
114
|
Lead mill feed grade
(%) (1)
|
0.99
|
0.81
|
0.71
|
1.07
|
0.89
|
0.92
|
Zinc mill feed grade
(%)
|
0.63
|
0.60
|
0.46
|
0.46
|
0.54
|
0.84
|
Silver recovery
(%)
|
95.1
|
93.5
|
92.4
|
91.7
|
93.2
|
72.1
|
Lead recovery (%)
(1)
|
91.9
|
88.1
|
79.4
|
83.6
|
85.8
|
83.1
|
Zinc recovery
(%)
|
54.3
|
49.3
|
48.1
|
47.3
|
49.2
|
39.3
|
|
|
|
|
|
|
|
Mining cost ($/t
mined) (1)
|
2.62
|
2.76
|
2.33
|
2.74
|
2.60
|
2.61
|
Processing cost ($/t
milled)
|
29.53
|
36.34
|
32.57
|
29.62
|
32.04
|
18.72
|
General and admin
cost ($/t milled)
|
9.11
|
9.24
|
8.27
|
8.02
|
8.68
|
7.34
|
|
|
|
|
|
|
|
Silver produced ('000
oz)
|
2,132
|
1,664
|
1,486
|
2,392
|
7,674
|
3,747
|
Silver sold ('000
oz)
|
2,584
|
1,505
|
2,679
|
927
|
7,695
|
3,761
|
|
|
|
|
|
|
|
Lead produced ('000
lb) (2)
|
7,985
|
5,304
|
3,879
|
6,789
|
23,957
|
3,107
|
Lead sold ('000 lb)
(2)
|
9,371
|
4,119
|
7,652
|
2,977
|
24,119
|
1,059
|
|
|
|
|
|
|
|
Zinc produced ('000
lb) (3)
|
3,007
|
2,206
|
1,539
|
1,640
|
8,392
|
8,775
|
Zinc sold ('000 lb)
(3)
|
3,067
|
2,030
|
5,757
|
3,218
|
14,072
|
2,365
|
|
|
|
|
|
|
|
Realized silver price
($/oz) (4)
|
17.32
|
17.31
|
14.92
|
15.35
|
16.26
|
15.92
|
|
|
|
|
|
|
|
Cash costs ($/oz)
(4)
|
8.90
|
14.22
|
9.80
|
9.94
|
10.38
|
15.91
|
AISC ($/oz)
(4)
|
11.18
|
17.36
|
13.08
|
19.76
|
14.06
|
19.33
|
|
|
|
|
|
|
|
Financial Data
($000s)
|
|
|
|
|
|
|
Revenue
|
51,263
|
31,697
|
44,873
|
17,556
|
145,389
|
54,679
|
Income (loss) from
mine operations
|
14,915
|
7,708
|
4,126
|
3,584
|
30,333
|
(4,151)
|
Capital expenditures
(5)
|
2,134
|
1,782
|
1,157
|
1,543
|
6,616
|
9,680
|
Capitalized
stripping
|
2,565
|
1,385
|
6,273
|
6,191
|
16,414
|
—
|
Exploration
expenditures
|
492
|
229
|
65
|
1
|
787
|
462
|
|
|
(1)
|
Data is for the
period subsequent to December 1, 2018, the date upon which
commercial production was declared
at the Chinchillas mine.
|
(2)
|
Data for lead
production and sales relate only to lead in lead
concentrate.
|
(3)
|
Data for zinc
production and sales relate only to zinc in zinc
concentrate.
|
(4)
|
We report the
non-GAAP financial measures of realized metal prices, cash costs
and AISC per payable ounce of
precious metal sold to manage and evaluate operating performance at
Puna Operations. See "Cautionary Note
Regarding Non-GAAP Measures".
|
(5)
|
Does not include
exploration or development of the Chinchillas project or
capitalized stripping.
|
Mine production
For the year ended December 31,
2019, Puna Operations produced a total of 7.7 million ounces
of silver, 24.0 million pounds of lead and 8.4 million pounds of
zinc. After declaring commercial production at the Chinchillas mine
in December 2018, 2019 represented
the first full year of Puna Operations milling Chinchillas open pit
ore. During the year ended December 31,
2019, ore was milled at an average of 3,819 tonnes per day
and contained an average silver grade of 184 g/t. The average
silver recovery was 93.2%, a 29% improvement as compared to 2018
when the operation milled primarily low-grade stockpiled ore.
In the fourth quarter of 2019, silver production was 2.1 million
ounces, an increase of 28% compared to the third quarter of 2019,
due mainly to increased mill throughput and processing of
higher-grade ore. During the fourth quarter of 2019, ore was milled
at an average of 4,349 tonnes per day. Processed ore in the fourth
quarter of 2019 contained an average silver grade of 174 g/t, a 5%
increase compared to the third quarter of 2019. The average silver
recovery in the fourth quarter of 2019 was 95.1% as mill
performance continues to benefit from our Operational Excellence
initiatives.
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".
For the year ended December 31,
2019, cash costs per payable ounce of silver sold were
$10.38, a decrease of 35% compared to
the year ended December 31, 2018. The
decrease is mainly due to increased production as the Chinchillas
mine achieved steady state operations, driven by higher silver mill
feed grades and recoveries, partially offset by higher unit
processing costs, driven by a re-start of the zinc circuit in 2019,
the pumping of tailings for in-pit disposal at the Pirquitas plant
and higher ore haulage costs.
For the year ended December 31,
2019, AISC per payable ounce of silver sold was $14.06, a decrease of 27% compared to the year
ended December 31, 2018. The decrease
is mainly due to lower cash costs per payable ounce of silver sold,
offset partially by higher capital expenditures, including capital
stripping costs, of which the majority were incurred in the first
half of 2019.
In the fourth quarter of 2019, cash costs per payable ounce of
silver sold were $8.90, a decrease of
37% compared to the third quarter of 2019. The decrease is mainly
due to lower per unit operating costs as a result of higher mill
throughput and higher by-product credits during the fourth quarter
of 2019, driven by higher production resulting from an increase in
mill throughput, feed grades, and recoveries.
In the fourth quarter of 2019, AISC per payable ounce of silver
sold was $11.18, a decrease of 36%
compared to the third quarter of 2019. The decrease is mainly due
to lower cash costs per payable ounce of silver sold, offset
partially by higher capital expenditures, including capitalized
stripping costs during the fourth quarter of 2019.
Mine sales
Realized silver price is a non-GAAP financial measure. Please
see "Cautionary Note Regarding Non-GAAP Measures".
For the year ended December 31,
2019, silver sales totaled 7.7 million ounces, an increase
of 105% compared to the year ended December
31, 2018. Lead sales totaled 24.1 million pounds and zinc
sales totaled 14.1 million pounds. The increase in concentrate
sales is mainly due to an increase in production, as 2019
represented the first full year of production at the Chinchillas
mine. For the year ended December 31,
2019, realized silver price was $16.26 per ounce, an increase of 2% compared to
the previous year.
In the fourth quarter of 2019, silver sales totaled 2.6 million
ounces, an increase of 72% compared to the third quarter of 2019.
Lead and zinc sales totaled 9.4 million pounds and 3.1 million
pounds, respectively, representing increases of 128% and 51%,
respectively, compared to the previous quarter. The increase in
concentrate sales is mainly due to higher production in the fourth
quarter of 2019, driven by higher throughput, feed grades, and
recoveries, as well as the timing of concentrate sales.
Exploration
During the fourth quarter of 2019, we completed 2,074 meters of
diamond drilling exploring the Granada target. The Granada target is the projected intersection
of the north-dipping past producing historic Potosi vein and the south-dipping Cortaderas
Breccia vein which hosts much of the current underground Mineral
Resources at Pirquitas. We anticipate completing the drilling in
2020 and reporting these results in the first half of 2020.
Chinchillas Project, Argentina
The Chinchillas project was completed in the fourth quarter of
2019 with all project components handed over to operations. The
project was completed for an investment of $75 million, approximately $6 million below approved budget.
Outlook
This section provides management's production, cost, capital,
exploration and development expenditure estimates for 2020. Cash
costs per payable ounce of gold and silver sold are non-GAAP
financial measures. Please see the "Cautionary Note Regarding
Forward-Looking Statements" and "Cautionary Note Regarding Non-GAAP
Measures".
For the full year 2020, we expect:
Operating
Guidance
|
|
Marigold
mine
|
Seabee Gold
Operation
|
Puna
Operations
|
Gold
Production
|
oz
|
225,000 –
240,000
|
110,000 –
120,000
|
—
|
Silver
Production
|
Moz
|
—
|
—
|
6.0 – 7.0
|
Lead
Production
|
Mlb
|
—
|
—
|
21.0 –
24.0
|
Zinc
Production
|
Mlb
|
—
|
—
|
7.0 – 9.0
|
Cash Costs per
Payable Ounce Sold (1)
|
$/oz
|
780 – 810
|
460 – 500
|
10.50 –
12.00
|
Capital
Expenditures
|
|
|
|
|
Sustaining
|
$M
|
60
|
15
|
15
|
Growth
|
$M
|
—
|
5
|
6
|
Capitalized Stripping
/ Capitalized
Development
|
$M
|
20
|
12
|
12
|
Exploration
Expenditures
|
|
|
|
|
Sustaining
|
$M
|
4
|
1
|
—
|
Growth
|
$M
|
8
|
11
|
1
|
|
|
(1)
|
We report the
non-GAAP financial measure of cash costs per payable ounce of gold
and silver sold to manage
and evaluate operating performance at our operations. See
"Cautionary Note Regarding Non-GAAP Measures".
|
In 2020, we expect to produce on a consolidated basis, at the
midpoint of guidance, approximately 425,000 gold equivalent ounces
at gold equivalent cash costs of $740
per payable ounce sold.
At the Marigold mine, gold production is expected to increase in
2020 compared to 2019. Marigold is well-positioned for another
record production year as the mine benefits from an additional
hydraulic loading unit purchased in 2019, expected to be
commissioned in the first quarter of 2020, and continued
operational efficiencies. Production is weighted toward the second
half of the year as a result of mine sequencing and access to
higher grade ore. Capital investments are expected to total
$60 million, including $12 million for two replacement haul trucks and
$15 million for an additional leach
pad to be built in 2020. The continuous build of leach pad capacity
will ensure the operation can maintain leach cycle times and gold
recoveries at higher ore stacking rates. Capitalized stripping is
expected to total $20 million with
the majority incurred through the first three quarters of the year.
Exploration expenditures totaling $12
million are expected to focus on drill programs at Mackay,
Basalt, Valmy and Trenton Canyon
with the goals of adding Mineral Reserves and defining additional
Mineral Resources within these areas. Exploration expenditures
include $2 million for drill testing
Trenton Canyon's sulphide targets.
At the Seabee Gold Operation, we expect to deliver another
record gold production year in 2020 as we continue executing our
plan of increasing mining rates to support higher sustained mill
throughput. Production is weighted to the first half of the year
due to access to higher grade ore. Cash costs are expected to
remain low between $460 and
$500 per payable ounce of gold sold.
Sustaining capital investments remain focused on mining equipment
and ventilation, with $5 million
planned for underground and surface equipment to enable higher mine
production. Due to continued exploration success at Seabee, in 2019
we commenced an expansion of tailings storage capacity at the mine.
In 2020, investment in the tailings facility expansion is estimated
to total $12 million as phase 1 of
the project is completed and phase 2 is initiated, with completion
expected in 2021. Once completed, Seabee is expected to have
tailings capacity for current mill throughput levels into the early
2030s. Non-tailings facility-related capital expenditures are
concentrated in the first quarter of 2020 as equipment is delivered
over the ice road. Expected capitalized development expenditures of
$12 million support higher mining
rates and reflect the development strategy for the Santoy complex.
Exploration expenditures at Seabee are estimated to total
$12 million with a focus on expansion
and definition of Santoy Gap HW and surface drill programs at the
Seabee and Fisher properties following up on targets identified in
2019.
At Puna Operations, we expect to produce between 6.0 and 7.0
million ounces of silver at cash costs, net of by-products, of
between $10.50 and $12.00 per payable silver ounce sold. Production
is weighted to the first half of the year due to higher grades,
with the majority of capital stripping expected in the second half
of the year. Sustaining capital investments of $15 million relate principally to maintenance of
mine, mill and power generating equipment. A $6 million investment to replace contracted ore
transportation is also planned as the operation focuses on lowering
unit operating costs.
At the Pitarrilla project, located in Mexico, we plan to spend $4 million in 2020 as part of a two-year
$10 million exploration program
related to extending an existing decline to provide drill access to
the underground Mineral Resources. An improved geological model
from work completed in 2019 indicates strong potential to better
define known, high-grade mineralized veining associated with
steeply dipping rhyolite dyke contacts. Extending the underground
ramp provides access for tighter spaced drilling at better
orientations to test the rhyolite dykes and veins for continuity.
If infill drilling confirms the continuity of high-grade
mineralized structures, there would be potential to enhance the
grades of existing Mineral Resources.
At the San Luis project,
located in Peru, we expect to
commence a detailed mapping program in the area of the existing
high-grade gold-silver Mineral Resources in 2020.
Our 2.875% senior convertible notes issued in 2013 (the "2013
Notes"), of which approximately $115
million remain outstanding, provide for investors to put the
notes to us at their option (the "Put Option") for repurchase at
par, plus accrued and unpaid interest thereon, if any, on
February 1, 2020.
On January 31, 2020, we announced
that as of the expiration of the Put Option, $49,000 aggregate principal amount of the 2013
Notes were validly surrendered for purchase. The remaining
outstanding 2013 Notes are callable by us at par, plus accrued and
unpaid interest thereon, if any, at any time at our election giving
due notice, in accordance with the terms and conditions of the
Indenture governing the 2013 Notes (the "Indenture"). On
February 13, 2020, we provided notice
of redemption to call the remaining outstanding 2013 Notes. We will
redeem all of our outstanding 2013 Notes on March 30, 2020 totaling an aggregate principal
amount of $114,947,000 at a
redemption price equal to 100% of the aggregate principal amount,
plus accrued and unpaid interest, unless any of the outstanding
2013 Notes are converted into common shares of the Company in
accordance with the terms of the 2013 Notes. Following the
redemption of the 2013 Notes, no 2013 Notes will remain
outstanding.
Gold equivalent figures for our 2020 operating guidance are
based on a gold-to-silver ratio of 86:1. Cash costs and capital
expenditures guidance is based on an oil price of $60 per barrel and an exchange rate of
1.30 Canadian dollars to one U.S. dollar. Royalty costs at Marigold were
calculated using a gold price of $1,550 per ounce.
Consolidated Financial Summary
(presented in
thousands of U.S., dollars, except for per share value)
Selected Financial
Data(1)
|
|
Three Months
Ended December 31
|
Year
Ended December 31
|
|
2019
|
2018
|
2019
|
2018
|
|
$
|
$
|
$
|
$
|
Revenue
|
177,603
|
103,712
|
606,850
|
420,675
|
Income from mine
operations (1)
|
58,913
|
16,536
|
170,883
|
76,845
|
Gross margin (%)
(2)
|
33
|
16
|
28
|
18
|
Operating income
(1)
|
43,228
|
3,061
|
122,338
|
29,895
|
Net income
(loss)
|
19,479
|
(2,544)
|
55,757
|
(31)
|
Net income (loss)
attributable to equity holders of SSR Mining
|
19,479
|
(3,486)
|
57,315
|
6,379
|
Basic attributable
income (loss) per share
|
0.16
|
(0.03)
|
0.47
|
0.05
|
Adjusted attributable
income (loss) before tax (1)
|
48,211
|
(345)
|
129,419
|
28,586
|
Adjusted attributable
net income (1)
|
36,625
|
4,369
|
98,215
|
27,961
|
Adjusted basic
attributable income per share (1)
|
0.30
|
0.04
|
0.81
|
0.23
|
Cash generated by
(used in) operating activities
|
48,632
|
(3,744)
|
134,198
|
59,769
|
Cash used in
investing activities
|
(22,303)
|
(63,027)
|
(130,328)
|
(115,930)
|
Cash (used in)
generated by financing activities
|
(251)
|
11,903
|
80,553
|
20,516
|
|
|
|
|
|
|
Financial
Position
|
December 31,
2019
|
December 31,
2018
|
Cash and cash
equivalents
|
503,647
|
419,212
|
Marketable
securities
|
66,453
|
29,542
|
Current
assets
|
899,662
|
733,119
|
Current
liabilities
|
234,171
|
83,254
|
Working capital
(3)
|
665,491
|
649,865
|
Total
assets
|
1,750,107
|
1,521,138
|
|
|
(1)
|
We report non-GAAP
financial measures including income from mine operations, operating
income, adjusted
attributable income (loss) before tax, adjusted attributable net
income, and adjusted basic attributable income per
share, to manage and evaluate our operating performance. Please 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.
|
Quarterly financial summary
Revenue increased by 71% in the fourth quarter of 2019 compared
to the fourth quarter of 2018, mainly due to an 18% increase in
gold ounces sold and a 20% increase in realized gold price at our
Marigold mine and Seabee Gold Operation, as well as a 177% increase
in silver ounces sold and a 20% increase in realized silver price
at our Puna Operations.
Income from mine operations of $58.9
million in the fourth quarter of 2019 generated a gross
margin of 33% compared to a gross margin of 16% in the fourth
quarter of 2018. Compared to the fourth quarter of 2018, income
from mine operations generated at all of our operations were higher
mainly due to higher average realized prices of gold and silver and
higher gold and silver ounces sold. Net income for the fourth
quarter of 2019 was $19.5 million,
compared to a net loss of $2.5
million in the same quarter of 2018.
Cash generated from operating activities in the fourth quarter
of 2019 increased to $48.6 million
compared to $3.7 million used in
operating activities in the fourth quarter of 2018. All mine
operations generated higher margins driven primarily by higher
realized gold and silver prices.
Investing activities used $22.3
million of cash in the fourth quarter of 2019. This included
expenditures of $18.9 million on
plant and equipment, capitalized stripping costs of $3.7 million and underground development costs of
$3.3 million, offset partially by
$2.2 million of interest received. In
the fourth quarter of 2018, we invested $10.6 million in mineral properties, plant and
equipment, $18.9 million on the
Chinchillas project and $23.1 million
on the purchase of marketable securities.
Cash used in financing activities was $0.3 million in the fourth quarter of 2019,
compared to cash generated of $11.9
million in the fourth quarter of 2018.
Annual financial summary
Revenue for the year ended 2019 increased by 44% compared to the
year ended 2018 mainly due to a 14% increase in gold ounces sold
and a 10% increase in realized gold price at our Marigold mine and
Seabee Gold Operation, as well as a 105% increase in silver ounces
sold and a 2% increase in realized silver price at our Puna
Operations.
Income from mine operations for the year ended 2019 of
$170.9 million generated a gross
margin of 28% compared to a gross margin of 18% for the year ended
2018, primarily due to higher ounces of gold and silver sold and
higher average realized prices of gold and silver. Net income for
the year ended 2019 was $55.8
million, compared to net loss of $0.0
million for the comparative period 2018.
Cash generated by operating activities for the year ended 2019
increased to $134.2 million compared
to $59.8 million for the year ended
2018. The increase is mainly due to higher ounces sold and higher
average realized prices of gold and silver.
Investing activities used $130.3
million for the year ended 2019 compared to using
$115.9 million for the year ended
2018. In 2019, we invested $55.9
million in plant and equipment, $22.6
million to acquire Trenton Canyon and Buffalo Valley,
$23.2 million in capitalized
stripping costs, $13.4 million in
underground development costs and $11.6
million in the Chinchillas project. We also received
$9.7 million of interest. In 2018, we
invested $67.7 million in plant and
equipment, $60.2 million on the
Chinchillas project and $23.1 million
in marketable securities, which was partially offset by
$63.4 million received from the sale
of marketable securities.
Cash generated by financing activities for the year ended 2019
increased to $80.6 million compared
to $20.5 million for the year ended
2018. In 2019, we repurchased a portion of our 2013 Notes for
$152.3 million and issued the 2019
Notes for net proceeds of $222.9
million. In addition, we received proceeds from stock option
exercises of $7.2 million and
funding, prior to the acquisition of the non-controlling interest,
from our joint venture partner at Puna Operations of $3.7 million. In 2018, we received funding from
our joint venture partner for $15.2
million at Puna Operations, as well as proceeds on the
exercise of stock options of $5.3
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 $503.6 million in cash and
cash equivalents as at December 31, 2019. 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 March 19, 2019, we issued
$230.0 million aggregate principal
amount of 2.50% unsecured convertible senior notes (the "2019
Notes") for net proceeds of $222.9
million after payment of commissions and expenses related to
the offering. For a full description of the 2019 Notes, see
the "Capital Resources" discussion in Section 6 of our
MD&A.
Of the proceeds from the 2019 Notes, $152.3 million was used to repurchase, in
separate privately negotiated transactions, $150 million of our outstanding 2013 Notes.
On June 27, 2019, we acquired
approximately 8,900 hectares of land contiguous to the Marigold
mine, comprised of a 100% interest in the Trenton Canyon and
Buffalo Valley properties (the "Properties") from Newmont
Corporation and Fairmile Gold Mining, Inc., net of a 0.5% net
smelter returns royalty on the Properties. The aggregate purchase
price included $22 million in cash
and the assumption of related long-term environmental and
reclamation obligations then valued at approximately $13 million. The acquisition of the Properties
increases Marigold's land position by 84%, provides a potential
opportunity to increase mineralization and adds multiple zones of
mineralization as potential exploration targets.
In August 2019, we completed the
purchase of common shares of SilverCrest Metals Inc.
("SilverCrest") pursuant to our equity participation right. Upon
closing of the transaction, we owned approximately 9.8% of the
issued and outstanding common shares of SilverCrest on a
non-diluted basis. As at December 31,
2019, we owned approximately 8.4% of the issued and
outstanding common shares of SilverCrest on a non-diluted
basis.
On September 18, 2019, we closed
the acquisition of the remaining 25% interest in Puna Operations
Inc. from Golden Arrow Resources Corporation ("Golden Arrow") for
aggregate consideration totaling approximately $32.4 million (the "Transaction"). The
Transaction allowed us to consolidate ownership in Puna Operations,
streamlined our reporting structure and is expected to allow for
cost savings and operational flexibility. The Transaction also
provides us with near-term low-risk silver production growth. Under
the terms of the Transaction, aggregate consideration consisted of
$2.3 million in cash, $11.4 million for the cancellation of the
outstanding principal and accrued interest on the non-revolving
term loan to Golden Arrow,
$18.2 million in common shares of SSR
Mining, and $0.5 million for the transfer to Golden Arrow of 4,285,714 of their common shares
held by us.
Mineral Reserves and Mineral Resources
At December 31, 2019, our total
estimated gold Proven and Probable Mineral Reserves were 4.4
million ounces including Marigold leach pad inventory (230.3
million tonnes at an average gold grade of 0.56 g/t excluding
Marigold leach pad inventory) and total estimated silver Proven and
Probable Mineral Reserves were 49.7 million ounces (10.4 million
tonnes at an average silver grade of 149 g/t) compared to 3.9
million ounces including Marigold leach pad inventory (203.6
million tonnes at an average gold grade of 0.56 g/t excluding
Marigold leach pad inventory) and 38.7 million ounces (7.74 million
tonnes at an average silver grade of 156 g/t), respectively, at
December 31, 2018. Mineral Reserves
estimates for the Marigold mine, the Seabee Gold Operation and Puna
Operations have been determined based on prices of $1,250 per ounce of gold and $18.00 per ounce of silver. These prices are
unchanged from those used to determine the Mineral Reserves
estimate at December 31, 2018.
At the Marigold mine, our 2019 exploration program led to an
increase in Mineral Reserves. Probable Mineral Reserves increased
to 3.9 million ounces of gold (228.8 million tonnes at an average
gold grade of 0.49 g/t) at the year ended December 31, 2019, an increase of 18% compared to
the year ended December 31, 2018.
After consideration of mining depletion in 2019 of 330,000 ounces,
912,000 ounces (51.9 million tonnes at an average gold grade of
0.55 g/t) of Probable Mineral Reserves were added in 2019. The
increase in Probable Mineral Reserves is mainly attributable to our
successful infill and exploration drilling programs which converted
Mineral Resources at Phases 2 and 3 of Red Dot and Mackay. We added
874,000 ounces (53.0 million tonnes at an average gold grade of
0.51 g/t) of gold Probable Mineral Reserves at Red Dot in Phases 2
and 3. Indicated Mineral Resources (inclusive of Mineral Reserves)
totaled 4.9 million ounces of gold (301.8 million tonnes at an
average gold grade of 0.48 g/t) at December
31, 2019, compared to 5.6 million ounces (354.5 million
tonnes at an average gold grade of 0.47 g/t) at December 31, 2018. The reduction is principally
due to depletion and revised slope angles. Inferred Mineral
Resources declined to 182,000 ounces of gold (16.2 million tonnes
at an average gold grade of 0.35 g/t) at December 31, 2019, compared to 404,000 ounces of
gold (33.6 million tonnes at an average gold grade of 0.37 g/t) at
December 31, 2018, due to conversion
in certain areas at Mackay and Red Dot. Both the 3.9 million ounce
Probable Mineral Reserve and the 4.9 million ounce Indicated
Mineral Resource (inclusive of Mineral Reserves) are inclusive of
the respective year's leach pad inventory. For further information
regarding our Mineral Reserves and Mineral Resources estimate at
Marigold, please see the technical report entitled "NI 43-101
Technical Report on the Marigold mine, Humboldt County, Nevada, U.S.A" dated
July 31, 2018.
At the Seabee Gold Operation, Proven and Probable Mineral
Reserves total 500,000 ounces of gold at December 31, 2019, compared to 608,000 ounces at
December 31, 2018. Proven Mineral
Reserves were 117,000 ounces (0.37 million tonnes at an average
gold grade of 9.82 g/t) and Probable Mineral Reserves were 383,000
ounces (1.16 million tonnes at an average gold grade of 10.29 g/t).
The decrease in Proven and Probable Mineral Reserves was primarily
due to depletion. Measured and Indicated Mineral Resources
(inclusive of Mineral Reserves) total 1,050,000 gold ounces (3.08
million tonnes at an average gold grade of 10.61 g/t) at
December 31, 2019, compared to
856,000 ounces (2.29 million tonnes at an average gold grade of
11.60 g/t) at December 31, 2018. This
23% addition of Measured and Indicated Mineral Resources
principally reflects conversion and additions at Gap HW. Measured
Mineral Resources are 201,000 ounces (0.49 million tonnes at an
average gold grade of 12.69 g/t) at December
31, 2019, compared to 170,000 ounces (0.45 million tonnes at
an average gold grade of 11.76 g/t) at December 31, 2018 and Indicated Mineral Resources
are 849,000 ounces (2.59 million tonnes at an average gold grade of
10.22 g/t) at December 31, 2019,
compared to 686,000 ounces (1.85 million tonnes at an average gold
grade of 11.56 g/t) at December 31,
2018. As at December 31, 2019,
Inferred Mineral Resources totaled 583,000 gold ounces (2.13
million tonnes at an average gold grade of 8.50 g/t) compared to
483,000 ounces (1.70 million tonnes at an average gold grade of
8.82 g/t) at December 31, 2018, with
the majority of the increase resulting from discovery at Gap HW
more than offsetting the conversion at Gap HW to Indicated Mineral
Resources. The Gap HW discovery now totals 279,000 ounces (1.15
million tonnes at an average gold grade of 7.52 g/t) classified as
Indicated Mineral Resources and an additional 217,000 ounces (0.85
million tonnes at an average gold grade of 7.94 g/t) classified as
Inferred Mineral Resources. For further information regarding our
Mineral Reserves and Mineral Resources estimate at the Seabee Gold
Operation, please see the technical report entitled "NI 43-101
Technical Report for the Seabee Gold Operation, Saskatchewan, Canada" dated October 20, 2017.
At Puna Operations, silver Proven and Probable Mineral Reserves
are 49.7 million ounces at December 31,
2019 compared to 38.7 million ounces at December 31, 2018. The increase in reported
Mineral Reserves results from our purchase of the remaining 25%
interest in Puna Operations, which more than offset depletion and
modelling adjustments. Proven Mineral Reserves are 3.8 million
ounces (0.81 million tonnes at an average silver grade of 147 g/t)
at December 31, 2019 compared to 4.4
million ounces (0.71 million tonnes at an average silver grade of
196 g/t) at December 31, 2018 and
Probable Mineral Reserves are 45.9 million ounces (9.6 million
tonnes at an average silver grade of 149 g/t) compared to 34.3
million ounces (7.03 million tonnes at an average silver grade of
152 g/t) at December 31, 2018.
Measured and Indicated Mineral Resources (inclusive of Mineral
Reserves) total 110.7 million ounces of silver within the open pit,
underground and stockpiles at both Chinchillas and Pirquitas at
December 31, 2019 compared to 89.0
million ounces at December 31, 2018.
Measured Mineral Resources were 6.2 million ounces (1.51 million
tonnes at an average silver grade of 127 g/t) at December 31, 2019 and Indicated Mineral Resources
were 104.5 million ounces (27.4 million tonnes at an average silver
grade of 119 g/t). Inferred Mineral Resources are estimated to
total 42.7 million ounces (23.3 million tonnes at an average silver
grade of 57 g/t) of silver at December 31,
2019, compared to 31.1 million ounces (16.8 million tonnes
at an average silver grade of 58 g/t) of silver at December 31, 2018.
Details on Mineral Reserves and Mineral Resources by mine and
project including tonnes, grades, ounces and notes, are presented
below.
Mineral Reserves and Resources
(As of December 31, 2019)
|
|
Tonnes
|
Gold
|
Silver
|
Lead
|
Zinc
|
Gold
|
Silver
|
Lead
|
Zinc
|
Gold-
Equivalent
|
|
Location
|
kt
|
g/t
|
g/t
|
%
|
%
|
koz
|
koz
|
M-lbs
|
M-lbs
|
koz
|
|
|
|
|
|
|
|
|
|
|
|
|
MINERAL
RESERVES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proven Mineral
Reserves
|
|
|
|
Seabee (2)
(UG)
|
Canada
|
370
|
9.82
|
-
|
-
|
-
|
117
|
-
|
-
|
-
|
117
|
Chinchillas
(3,4)
|
Argentina
|
807
|
-
|
146.9
|
0.56
|
0.30
|
-
|
3,809
|
10
|
5
|
66
|
Total
Proven
|
|
|
|
|
|
117
|
3,809
|
10
|
5
|
183
|
|
|
|
|
|
|
|
|
|
|
|
|
Probable Mineral
Reserves
|
|
|
|
Marigold
(1)
|
U.S
|
228,763
|
0.49
|
-
|
-
|
-
|
3,610
|
-
|
-
|
-
|
3,610
|
Marigold Leach
Pad Inventory (1)
|
U.S
|
|
|
|
|
|
277
|
|
|
|
277
|
Seabee (2)
(UG)
|
Canada
|
1,158
|
10.29
|
-
|
-
|
-
|
383
|
-
|
-
|
-
|
383
|
Chinchillas
(3,4)
|
Argentina
|
8,113
|
-
|
160.8
|
1.36
|
0.37
|
-
|
41,944
|
243
|
66
|
832
|
Chinchillas
Stockpile (3)
|
Argentina
|
587
|
-
|
114.8
|
0.57
|
0.66
|
-
|
2,167
|
7
|
9
|
43
|
Pirquitas
Stockpile (3)
|
Argentina
|
870
|
-
|
63.9
|
-
|
1.43
|
-
|
1,789
|
-
|
28
|
48
|
Total
Probable
|
|
|
|
|
|
4,270
|
45,901
|
251
|
102
|
5,193
|
|
|
|
|
|
|
|
|
|
|
|
|
Proven and
Probable Mineral Reserves
|
|
|
|
Marigold
(1)
|
U.S
|
228,763
|
0.49
|
-
|
-
|
-
|
3,610
|
-
|
-
|
-
|
3,610
|
Marigold Leach
Pad Inventory (1)
|
U.S
|
|
|
|
|
|
277
|
|
|
|
277
|
Seabee (2)
(UG)
|
Canada
|
1,528
|
10.17
|
-
|
-
|
-
|
500
|
-
|
-
|
-
|
500
|
Chinchillas
(3,4)
|
Argentina
|
10,377
|
-
|
149.0
|
1.14
|
0.47
|
-
|
49,710
|
260
|
108
|
989
|
Total Proven and
Probable
|
|
|
|
|
4,387
|
49,710
|
260
|
108
|
5,376
|
|
|
Tonnes
|
Gold
|
Silver
|
Lead
|
Zinc
|
Gold
|
Silver
|
Lead
|
Zinc
|
Gold-
Equivalent
|
|
Location
|
kt
|
g/t
|
g/t
|
%
|
%
|
koz
|
koz
|
M-lbs
|
M-lbs
|
koz
|
|
|
|
|
|
|
|
|
|
|
|
|
MINERAL
RESOURCES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Measured Mineral
Resources
|
|
|
|
Seabee (2)
(UG)
|
Canada
|
493
|
12.69
|
-
|
-
|
-
|
201
|
-
|
-
|
-
|
201
|
Chinchillas
(3,4)
|
Argentina
|
1,512
|
-
|
126.8
|
0.54
|
0.37
|
-
|
6,165
|
18
|
12
|
114
|
Pitarrilla
(6)
|
Mexico
|
12,345
|
-
|
90.1
|
0.70
|
1.22
|
-
|
35,746
|
190
|
333
|
969
|
Total
Measured
|
201
|
41,911
|
208
|
346
|
1,284
|
|
|
|
|
|
|
|
|
|
|
|
|
Indicated Mineral
Resources
|
|
|
|
Marigold
(1)
|
U.S
|
301,760
|
0.48
|
-
|
-
|
-
|
4,665
|
-
|
-
|
-
|
4,665
|
Marigold Leach
Pad Inventory (1)
|
U.S
|
|
|
|
|
|
277
|
|
|
|
277
|
Seabee (2)
(UG)
|
Canada
|
2,586
|
10.22
|
-
|
-
|
-
|
849
|
-
|
-
|
-
|
849
|
Amisk
(9)
|
Canada
|
30,150
|
0.85
|
6.2
|
-
|
-
|
827
|
5,978
|
-
|
-
|
912
|
Chinchillas
(3,4)
|
Argentina
|
23,266
|
-
|
101.4
|
0.98
|
0.63
|
-
|
75,815
|
502
|
321
|
1,776
|
Chinchillas
Stockpile (3)
|
Argentina
|
587
|
-
|
114.8
|
0.57
|
0.66
|
-
|
2,167
|
7
|
9
|
45
|
Pirquitas
Stockpile (3)
|
Argentina
|
870
|
-
|
63.9
|
-
|
1.43
|
-
|
1,789
|
-
|
28
|
51
|
Pirquitas
(3,5) (UG)
|
Argentina
|
2,634
|
-
|
292.4
|
-
|
4.46
|
-
|
24,756
|
-
|
259
|
594
|
Pitarrilla
(6)
|
Mexico
|
147,016
|
-
|
97.5
|
0.32
|
0.87
|
-
|
460,728
|
1,040
|
2,804
|
10,003
|
Pitarrilla
(7) (UG)
|
Mexico
|
5,430
|
-
|
164.9
|
0.68
|
1.34
|
-
|
28,793
|
81
|
160
|
624
|
San Luis
(8) (UG)
|
Peru
|
484
|
22.40
|
578.1
|
-
|
-
|
349
|
9,003
|
-
|
-
|
477
|
Total
Indicated
|
6,967
|
609,030
|
1,631
|
3,580
|
20,273
|
|
|
|
|
|
|
|
|
|
|
|
|
Measured and
Indicated Mineral Resources
|
|
|
|
Marigold
(1)
|
U.S
|
301,760
|
0.48
|
-
|
-
|
-
|
4,665
|
-
|
-
|
-
|
4,665
|
Marigold Leach
Pad Inventory (1)
|
U.S
|
|
|
|
|
|
277
|
|
|
|
277
|
Seabee (2)
(UG)
|
Canada
|
3,079
|
10.61
|
-
|
-
|
-
|
1,050
|
-
|
-
|
-
|
1,050
|
Amisk
(9)
|
Canada
|
30,150
|
0.85
|
6.2
|
-
|
-
|
827
|
5,978
|
-
|
-
|
912
|
Chinchillas
(3,4) +
Pirquitas(3,5)
|
Argentina
|
28,870
|
-
|
119.3
|
0.83
|
0.99
|
-
|
110,692
|
528
|
628
|
2,579
|
Pitarrilla
(6,7) (OP +
UG)
|
Mexico
|
164,791
|
-
|
99.1
|
0.36
|
0.91
|
-
|
525,267
|
1,312
|
3,297
|
11,596
|
San Luis
(8) (UG)
|
Peru
|
484
|
22.40
|
578.1
|
-
|
-
|
349
|
9,003
|
-
|
-
|
477
|
Total Measured and
Indicated
|
7,168
|
650,941
|
1,839
|
3,925
|
21,557
|
|
|
|
|
|
|
|
|
|
|
|
|
Inferred Mineral
Resources
|
|
|
|
Marigold
(1)
|
U.S
|
16,194
|
0.35
|
-
|
-
|
-
|
182
|
-
|
-
|
-
|
182
|
Seabee (2)
(UG)
|
Canada
|
2,132
|
8.50
|
-
|
-
|
-
|
583
|
-
|
-
|
-
|
583
|
Amisk
(9)
|
Canada
|
28,653
|
0.64
|
4.0
|
-
|
-
|
589
|
3,693
|
-
|
-
|
642
|
Chinchillas
(3,4)
|
Argentina
|
22,172
|
-
|
49.9
|
0.55
|
0.83
|
-
|
35,558
|
268
|
407
|
1,096
|
Pirquitas
(3,5) (UG)
|
Argentina
|
1,080
|
-
|
206.9
|
-
|
7.45
|
-
|
7,185
|
-
|
177
|
267
|
Pitarrilla
(6)
|
Mexico
|
8,524
|
-
|
77.4
|
0.18
|
0.58
|
-
|
21,213
|
33
|
108
|
429
|
Pitarrilla
(7) (UG)
|
Mexico
|
1,230
|
-
|
138.1
|
0.89
|
1.25
|
-
|
5,461
|
24
|
34
|
128
|
San Luis
(8) (UG)
|
Peru
|
20
|
5.60
|
272.0
|
-
|
-
|
4
|
175
|
-
|
-
|
6
|
Total
Inferred
|
1,358
|
73,286
|
325
|
726
|
3,334
|
Notes to Mineral Reserves and Mineral Resources Table
All estimates set forth in the Mineral Reserves and Mineral
Resources table have been prepared in accordance with National
Instrument 43-101 – Standards of Disclosure for Mineral Projects
("NI 43-101"). The Mineral Reserves and Mineral Resources estimates
have been reviewed and approved by Samuel
Mah, P.Eng., our Director, Mine
Planning, and F. Carl
Edmunds, P.Geo., our Vice President, Exploration, each of
whom is a qualified person as defined under NI 43-101.
All Mineral Resources are reported inclusive of Mineral
Reserves. Mineral Resources which are not Mineral Reserves do not
have demonstrated economic viability. Due to the uncertainty that
may be attached to Inferred Mineral Resources, it cannot be assumed
that all or any part of an Inferred Mineral Resource will be
upgraded to an Indicated or Measured Mineral Resource as a result
of continued exploration.
Mineral Reserves and Mineral Resources figures have some
rounding applied, and thus totals may not sum exactly. All ounces
reported herein represent troy ounces, and "g/t" represents grams
per tonne. All $ references are in U.S. dollars. All Mineral
Reserves and Mineral Resources estimates are as at December 31, 2019.
Mineral Reserves are estimated using the following commodity
prices: $1,250 per ounce of gold;
$18.00 per ounce of silver;
$1.00 per pound of zinc; and
$0.90 per pound of lead. Additional
modifying parameters such as mine recovery, dilution, metallurgical
recovery and geotechnical are appropriately taken into
consideration. Mineral Resources are estimated using the following
commodity prices: $1,400 per ounce of
gold; $20.00 per ounce of silver;
$1.30 per pound of zinc; and
$1.10 per pound of lead, except as
noted below for each of the San
Luis project and the Amisk project.
All technical reports for the properties are available under
our profile on the SEDAR website at www.sedar.com or on our website
at www.ssrmining.com.
Marigold
Mine
|
(1)
|
Except for updates
to cost parameters, all other key assumptions, parameters and
methods used to estimate Mineral Reserves and Mineral Resources and
the data verification procedures followed are set out in the
technical report entitled "NI 43-101 Technical Report on the
Marigold Mine, Humboldt County, Nevada" dated July 31, 2018 (the
"Marigold Technical Report"). For additional information about the
Marigold mine, readers are encouraged to review the Marigold
Technical Report.
|
|
|
Mineral Reserves
estimate was prepared under the supervision of Jeremy W. Johnson,
SME Registered Member, a qualified person and our Technical
Services Superintendent at the Marigold mine. Mineral Resources
estimate was prepared under the supervision of James N. Carver, SME
Registered Member, our Exploration Manager at the Marigold mine,
and Karthik Rathnam, MAusIMM (CP), our Resource Manager, Corporate,
each of whom is a qualified person.
|
|
|
Mineral Reserves
are reported within a design pit shell whereas Mineral Resources
are constrained within a conceptual open pit shell. Mineral
Reserves are reported at a cut-off grade of 0.065 g/t payable gold,
which includes a calculation for royalty and metallurgical recovery
within the block model. On-site costs incorporate the appropriate
amount for sustaining capital within the respective average unit
costs for mining of $1.91 per tonne mined, processing of $1.68 per
tonne placed (heap leach), and site general of $0.74 per tonne
placed.
|
|
|
Seabee Gold
Operation
|
(2)
|
Except for updates
to cost parameters, mill recovery and dilution to include recent
operating results, and resource modeling techniques based on
recommendations set forth in the technical report entitled "NI 43-
101 Technical Report for the Seabee Gold Operation, Saskatchewan,
Canada" dated October 20, 2017 (the "Seabee Gold Operation
Technical Report"), all other key assumptions, parameters and
methods used to estimate Mineral Reserves and Mineral Resources and
the data verification procedures followed are set out in the Seabee
Gold Operation Technical Report. For additional information about
the Seabee Gold Operation, readers are encouraged to review the
Seabee Gold Operation Technical Report.
|
|
|
Mineral Reserves
estimate was prepared under the supervision of Kevin Fitzpatrick,
P.Eng., a qualified person and our Engineering Supervisor at the
Seabee Gold Operation. Mineral Resources estimate was prepared
under the supervision of Jeffrey Kulas, P.Geo., a qualified person
and our Manager Geology, Mining Operations at the Seabee Gold
Operation.
|
|
|
Mineral Reserves
are reported at a cut-off grade of 3.44 g/t gold. On-site costs
include the average costs for mining of $54.17 per tonne processed,
process and surface transport of $38.16 per tonne processed, and
site general costs of $75.65 per tonne processed. The overall
metallurgical recovery is 98.0% for gold.
|
|
Puna
Operations
|
(3)
|
Mineral Reserves
estimates for Minera Pirquitas S.A. Operations was prepared under
the supervision of Robert Gill, P.Eng., a qualified person and our
General Manager at Minera Pirquitas S.A. Operations. Mineral
Resources estimate was prepared under the supervision of F. Carl
Edmunds, P.Geo., a qualified person and our Vice President,
Exploration.
|
|
(4)
|
Mineral Reserves
for Chinchillas Mine are reported within a design pit shell whereas
Mineral Resources are constrained within a conceptual open pit
shell. Mineral Reserves are reported at a net smelter return
("NSR") cut-off value of $44.11 per tonne, which incorporates the
appropriate metallurgical recoveries and an amount for sustaining
capital. On-site costs include the average costs for mining of
$3.03 per tonne mined, surface transport cost of $9.80 per tonne
hauled, rehandling cost of $1.93 per tonne crushed, processing of
$16.89 per tonne processed, and site general costs of $9.70 per
tonne processed.
|
|
(5)
|
Mineral Resources
for Pirquitas Underground are reported below the as-built open pit
topographic surface above an NSR cut- off value of $100.00 per
tonne. Additional factors of dilution, mine recovery and the
requisite development costs were considered to exclude any
potentially uneconomical stope shapes.
|
|
Pitarrilla
Project
|
(6)
|
Mineral Resources
amenable to conventional open pit mining method are constrained
within conceptual pit shell at an NSR cut-off value of $16.38 per
tonne (leach) or $16.40 per tonne (flotation), which incorporates
the appropriate metallurgical recoveries for the respective
concentrates and off-site charges.
|
|
(7)
|
Mineral Resources
(Pitarrilla UG) are reported below the constrained open pit
resource shell above an NSR cut-off value of $80.00 per tonne,
using grade shells that have been trimmed to exclude distal and
lone blocks that would not support development
costs.
|
|
San Luis
Project
|
(8)
|
Mineral Resources
are reported at a cut-off grade of 6.0 g/t gold equivalent, using
metal price assumptions of $600.00 per ounce of gold and $9.25 per
ounce of silver.
|
|
Amisk
Project
|
(9)
|
Mineral Resources
estimate was prepared by Glen Cole, P.Geo., Principal Resource
Geologist, SRK Consulting (Canada) Inc., a qualified person.
Mineral Resources are reported at a cut-off grade of 0.40 g/t gold
equivalent, using metal price assumptions of $1,100 per ounce of
gold and $16.00 per ounce of silver.
|
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 Cameron
Chapman, P.Eng., and Jeffrey
Kulas, P. Geo., each of whom is a qualified person under NI
43-101. Mr. Chapman is our General Manager 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 audited
consolidated financial statements and the 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,
February 21, 2020, at 11:00 a.m.
EST.
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 3955
|
All other
callers:
|
+1 (412) 317-0088,
replay code 3955
|
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:
W. John DeCooman, Jr.
Senior Vice President, Business Development and Strategy
SSR Mining Inc.
Vancouver, BC
N.A. 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; 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 and
to define additional Mineral Resources; the timing and extent of
capital investment at our operations; the timing and extent of
capitalized stripping at our operations; timing of production and
production levels at the Marigold mine, the Seabee Gold Operation
and Puna Operations; achieving production records in 2020 at each
of the Marigold mine and the Seabee Gold Operation; expected
increase in access to higher grade ore at the Marigold mine and
Seabee Gold Operation in 2020; expected increase in mining rates
and mill throughput at the Seabee Gold Operation in 2020; expected
capital, exploration and development expenditures; expected timing
and benefits of the commissioning of the additional hydraulic
loading unit at the Marigold mine in early 2020 and the
construction of an additional leach pad at the Marigold mine in
2020; expected cost and timing of completion of the first and
second phase of the expansion to tailings capacity at the Seabee
Gold Operation in 2020 and 2021, respectively; upon completion of
the Tailings Facility Expansion, expected tailings capacity for
current mill throughput levels at the Seabee Gold Operation into
the early 2030s; our expected drill programs at the Marigold mine,
the Seabee Gold Operation and Puna Operations; estimated mine life
and extensions thereof, including anticipated extension of the mine
life of the Marigold mine into the early 2030s, without requiring
expansion of mining fleet or the associated expansion capital;
timing of production at the Marigold mine, the Seabee Gold
Operation and Puna Operations; timing, focus and results of our
exploration and development programs; the investments made in the
Marigold mine and the Seabee Gold Operation benefiting future
periods; the expected high inflation rates in Argentina generally offsetting the benefits of
the devaluation of the currency; current financial resources being
sufficient to carry out plans, commitments and business
requirements for the next twelve months; movements in gold 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 plans and cost estimates for the
Marigold mine, the Seabee Gold Operation, Puna Operations and our
projects; our ability to replace Mineral Reserves; commodity price
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 concentrate 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 failure 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 value added tax and significant
delays in the collection process in Argentina; claims and legal proceedings,
including adverse rulings in litigation against us and/or our
directors or officers; compliance with anti-corruption laws and
internal controls, and increased regulatory compliance costs;
complying with emerging climate change regulations and the impact
of climate change; fully realizing our interest in deferred
consideration received in connection with recent divestitures;
fully realizing 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 2013
Notes or our 2019 Notes may significantly reduce our liquidity and
adversely affect our business; failure to meet covenants under our
senior secured revolving credit facility; information systems
security threats; conflicts of interest that could arise from
certain of our directors' and officers' involvement with other
natural resource companies; 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, our ability to continue operating the Marigold mine, the
Seabee Gold Operation and Puna Operations, 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 (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
This news release includes 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 providing
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 consolidated
financial statements. Readers should refer to our MD&A,
available on www.sedar.com under the heading "Non-GAAP Financial
Measures" for a more detailed discussion of how we calculate
certain of such measures and a reconciliation of certain measures
to GAAP terms.
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SOURCE SSR Mining Inc.