VANCOUVER, Feb. 22, 2018 /PRNewswire/ - SSR Mining Inc.
(NASDAQ: SSRM) (TSX: SSRM) ("SSR Mining") reports consolidated
financial results for the fourth quarter and year ended
December 31, 2017.
Paul Benson, President and CEO
said, "2017 was another strong year for SSR Mining, generating
$145 million of operating cash flow
from more than 370,000 gold equivalent ounces of annual production.
Our relentless focus on Operational Excellence has allowed us to
meet or exceed our annual production and cost guidance for the
sixth consecutive year, while our successful track record in
exploration led to another year of reserve growth and mine life
extension."
"Looking ahead, 2018 is an exciting year for SSR Mining with the
ramping up of the Chinchillas mine and continued growth in
production at Seabee. Our current mine plans forecast consolidated
production to rise by 27% from this year to over 410,000 gold
equivalent ounces in 2021, and this is before we evaluate a
potential expansion at Marigold, and any increase resulting from
our investment in brownfields exploration. We are fully funded to
achieve this growth with $460 million
in cash at year-end, allowing us to continue creating value for our
shareholders."
Fourth Quarter and Year-End 2017 Highlights:
(All
figures are in U.S. dollars unless otherwise noted)
- Strong financial performance: Generated cash from
operations of $144.7 million in 2017
and increased our cash position by $132.7
million to $459.9 million.
Generated net income of $71.5 million
or $0.58 per share and adjusted net
income of $40.1 million or
$0.34 per share.
- Achieved annual production and cost guidance: Met or
exceeded initial guidance for the sixth consecutive year by
delivering gold equivalent production of over 370,000 ounces at
cash costs of $703 and AISC of
$972 per payable gold equivalent
ounce sold in 2017.
- Continued our track record of Mineral Reserves increases at
Marigold and Seabee: Successful exploration activities in 2017
increased gold Mineral Reserves, after depletion, at the Marigold
mine by 350,000 ounces to 3.2 million ounces and at the Seabee Gold
Operation by 80,000 ounces to 440,000 ounces, the latter at 21%
higher average gold grade.
- Delivered record annual gold production at Seabee: The
mine achieved the highest annual production in its 27-year history,
producing 83,998 ounces of gold in 2017, at the upper end of our
upwardly revised annual guidance. Annual cash costs and AISC were
$602 and $843 per payable ounce of gold sold,
respectively.
- Strong production at Marigold: Delivered quarterly gold
production of 52,768 ounces, 36% higher than the third quarter of
2017, resulting in annual production of 202,240 ounces of gold in
2017. Reported annual cash costs of $647 per payable ounce of gold sold, at the lower
end of our improved guidance, and AISC of $896 per payable gold ounce sold.
- Exceeded annual production guidance at Puna Operations:
Exceeded the upper end of our upwardly revised annual production
guidance with 6.2 million ounces of silver produced, reflecting
strong performance of stockpiles processed. Annual cash costs were
$13.07 per payable silver ounce sold,
at the lower end of annual guidance. Reported AISC of $14.30 per payable silver ounce sold.
- Extended Pirquitas operating life: Formed Puna
Operations joint venture, extending the anticipated Pirquitas
operating life by eight years. Received approval of the
Environmental Impact Assessment for the Chinchillas project in 2017
with development activities now underway.
- Enhanced financial strength: Generated $36 million of cash in the fourth quarter of
2017, our ninth consecutive quarter of increasing cash for total
liquidity of more than $640 million,
including marketable securities and our revolving credit
facility.
Marigold Mine, U.S.
|
Three months
ended
|
Total
|
Operating
data
|
December 31,
2017
|
September
30,
2017
|
|
June 30,
2017
|
|
March 31,
2017
|
|
|
2017
|
|
|
2016
|
Total material mined
(kt)
|
13,979
|
20,311
|
|
17,985
|
|
16,736
|
|
|
69,011
|
|
|
75,093
|
Waste removed
(kt)
|
8,136
|
13,149
|
|
11,075
|
|
11,062
|
|
|
43,422
|
|
|
51,480
|
Total ore stacked
(kt)
|
5,843
|
7,162
|
|
6,910
|
|
5,674
|
|
|
25,589
|
|
|
23,613
|
Strip
ratio
|
1.4
|
1.8
|
|
1.6
|
|
1.9
|
|
|
1.7
|
|
|
2.2
|
Mining cost ($/t
mined)
|
1.98
|
1.52
|
|
1.67
|
|
1.65
|
|
|
1.68
|
|
|
1.50
|
Gold stacked grade
(g/t)
|
0.37
|
0.31
|
|
0.31
|
|
0.42
|
|
|
0.35
|
|
|
0.45
|
Processing cost ($/t
processed)
|
1.08
|
0.89
|
|
0.82
|
|
0.89
|
|
|
0.92
|
|
|
0.78
|
Gold recovery
(%)
|
74.0
|
72.0
|
|
73.0
|
|
74.0
|
|
|
73.0
|
|
|
72.0
|
General and admin
costs ($/t
processed)
|
0.51
|
0.40
|
|
0.42
|
|
0.52
|
|
|
0.46
|
|
|
0.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold produced
(oz)
|
52,768
|
38,699
|
|
55,558
|
|
55,215
|
|
|
202,240
|
|
|
205,116
|
Gold sold
(oz)
|
51,420
|
38,818
|
|
57,426
|
|
52,528
|
|
|
200,192
|
|
|
204,315
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized gold price
($/oz) (1)
|
1,269
|
1,270
|
|
1,265
|
|
1,214
|
|
|
1,254
|
|
|
1,255
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash costs ($/oz)
(1)
|
699
|
684
|
|
632
|
|
585
|
|
|
647
|
|
|
647
|
AISC ($/oz)
(1)
|
1,001
|
979
|
|
833
|
|
799
|
|
|
896
|
|
|
960
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial data
($000s)
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
65,217
|
49,395
|
|
72,451
|
|
63,762
|
|
|
250,825
|
|
|
256,817
|
Income from mine
operations
|
12,777
|
11,189
|
|
21,373
|
|
21,327
|
|
|
66,666
|
|
|
80,672
|
Capital
expenditures
|
8,194
|
3,855
|
|
5,272
|
|
3,043
|
|
|
20,364
|
|
|
30,531
|
Capitalized
stripping
|
5,712
|
6,056
|
|
4,350
|
|
6,745
|
|
|
22,863
|
|
|
32,624
|
Exploration
expenditures (2)
|
1,208
|
1,130
|
|
1,538
|
|
1,024
|
|
|
4,900
|
|
|
5,120
|
|
|
(1)
|
We report the
non-GAAP financial measure of cash costs per payable ounce of gold
sold, realized gold prices and all-in sustaining costs ("AISC") to
manage and evaluate operating performance at the Marigold mine. For
a better understanding and a reconciliation of these measures to
cost of sales, as shown in our consolidated statements of
comprehensive income, please see "Non-GAAP and Additional GAAP
Financial Measures" in section 10 of our management's discussion
and analysis for the year ended December 31, 2017
("MD&A").
|
(2)
|
Includes
capitalized and expensed exploration expenditures.
|
Mine production
In 2017, the Marigold mine produced 202,240 ounces of gold,
achieving the upper end of our revised production guidance. This
compares to 205,116 ounces of gold produced in 2016.
Material mined during the year totaled 69.0 million tonnes, 8%
lower compared to the record tonnage moved in 2016, due to adverse
weather conditions in the first quarter of 2017 and a lower mining
rate in the fourth quarter as discussed below. The mine achieved a
record 25.6 million tonnes of ore stacked on leach pads in
2017.
During the fourth quarter of 2017, a total of 14.0 million
tonnes of material were mined, down 31% from the third quarter due
to planned maintenance of the rope shovel and operational
shut-downs and interruptions resulting from the fatal incident in
October. The operation focused on addressing the leaching
constraints related to clay ore encountered in the second half of
the year. Multiple actions were implemented resulting in
improvement of the leach pad operation over the last three months
of the year. A combination of ore blending, adding surfactants to
reduce ponding and improving ripping practices have allowed
solution application rates to return to normal and recovery rates
to expected levels. This was reflected in the increased gold
production in the fourth quarter.
Approximately 5.8 million tonnes of ore were delivered to the
heap leach pads at a gold grade of 0.37 g/t during the fourth
quarter. This compares to 7.2 million tonnes of ore delivered to
the heap leach pads at a gold grade of 0.31 g/t in the third
quarter. Gold grade mined in the fourth quarter was 19% higher than
the third quarter due to mining deeper in the current phase of the
Mackay pit. The strip ratio declined to 1.4:1 in the quarter, a 22%
reduction compared to the previous quarter.
In the fourth quarter of 2017, the Marigold mine produced 52,768
ounces of gold, 36% higher than 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".
Cash costs, which include all costs of inventory, refining costs
and royalties, of $699 per payable
ounce of gold sold in the fourth quarter of 2017 were 2% higher
than the previous quarter primarily due to higher production unit
costs. Total mining costs of $1.98
per tonne in the fourth quarter of 2017 were 30% higher than in the
previous quarter due to fewer tonnes mined for reasons described
above. Processing and general and administrative unit costs were
21% and 28% higher, respectively, in the fourth quarter of 2017
than in the third quarter of 2017 due to lower tonnes mined and
processed. Processing and general and administrative costs were
comparable on an absolute basis in the current and preceding
quarter while mining costs were lower. Cash costs of $647 per payable ounce of gold sold in 2017 were
comparable to 2016, as we mined more ore tonnes which offset the
lower ore grade.
AISC increased in the fourth quarter of 2017 to $1,001 per payable ounce of gold sold from
$979 in the third quarter due to
increased capital spending mostly related to mobile equipment and
construction of a new leach pad expansion. AISC of $896 per payable ounce of gold sold in 2017
decreased from $960 in 2016,
primarily due to lower capital investments and lower capitalized
stripping.
Mine sales
A total of 51,420 ounces of gold were sold at an average
realized price of $1,269 per ounce
during the fourth quarter of 2017, an increase of 32% from the
38,818 ounces of gold sold at an average realized price of
$1,270 per ounce during the third
quarter of 2017. The increase in sales was a function of increased
gold production. In 2017, gold sales decreased marginally and
totaled 200,192 ounces, compared to 204,315 ounces in 2016.
Exploration
Exploration at Marigold in 2017 was successful with significant
growth in Mineral Reserves and Resources compared to the end of
2016. Mineral Reserves, after depletion, increased by 12% to total
3.2 million gold ounces and Measured and Indicated Mineral
Resources (inclusive of Mineral Reserves) increased by 10% to 5.7
million gold ounces.
Exploration during the fourth quarter of 2017 targeted growth of
Mineral Reserves and Resources proximal to, and within, planned
open pits. During the quarter we completed 16,000 meters of
drilling in 50 reverse circulation ("RC") holes at the Mackay pit
and within the Red Dot area. Drilling was also completed in East
Basalt, Valmy and the Showdown
target. RC drilling for the year totaled 54,814 meters in 188 RC
holes with one core hole completed over 1,128 meters.
Initial exploration of the Showdown target area during the
fourth quarter, yielded several encouraging intervals of shallow
low grade gold mineralization between the East Basalt deposit and
the Valmy deposits that is outside
the current Mineral Resource estimate. The known zone of
mineralization has been extended below and east of the current
resource pit at East Basalt based on drill results.
Positive results were received within the Mineral Resource
portions of the Red Dot deposit. This drilling is expected to be
beneficial in converting areas of Inferred Mineral Resources to
Indicated Mineral Resources where the current drill spacing
required additional data. This drilling has, to date, confirmed the
geologic interpretation.
Seabee Gold Operation, Canada
|
Three months
ended
|
|
Total
|
|
Operating
data
|
December 31,
2017
|
September 30,
2017
|
|
June 30,
2017
|
|
March 31,
2017
|
|
|
2017
|
Period from
Acquisition to
December 31,
2016 (1)
|
Total ore milled
(t)
|
89,237
|
84,315
|
|
84,469
|
|
72,394
|
|
|
330,415
|
186,138
|
Ore milled per day
(t/day)
|
970
|
916
|
|
928
|
|
804
|
|
|
905
|
870
|
Gold mill feed grade
(g/t)
|
8.89
|
7.03
|
|
7.97
|
|
9.22
|
|
|
8.25
|
7.44
|
Mining costs ($/t
mined)
|
66
|
74
|
|
60
|
|
68
|
|
|
68
|
65
|
Processing costs
($/t
processed)
|
24
|
22
|
|
20
|
|
23
|
|
|
23
|
20
|
Gold recovery
(%)
|
97.4
|
97.2
|
|
97.3
|
|
97.7
|
|
|
97.4
|
96.7
|
General and admin
costs
($/t
processed)
|
61
|
53
|
|
50
|
|
59
|
|
|
54
|
43
|
|
|
|
|
|
|
|
|
|
|
|
Gold produced
(oz)
|
24,227
|
18,058
|
|
20,690
|
|
21,023
|
|
|
83,998
|
46,574
|
Gold sold
(oz)
|
23,969
|
21,798
|
|
17,909
|
|
22,411
|
|
|
86,087
|
50,446
|
|
|
|
|
|
|
|
|
|
|
|
Realized gold price
($/oz) (2)
|
1,276
|
1,269
|
|
1,257
|
|
1,233
|
|
|
1,259
|
1,271
|
|
|
|
|
|
|
|
|
|
|
|
Cash costs ($/oz)
(2,3)
|
605
|
634
|
|
592
|
|
574
|
|
|
602
|
639
|
AISC ($/oz)
(2,3)
|
776
|
775
|
|
831
|
|
990
|
|
|
843
|
823
|
|
|
|
|
|
|
|
|
|
|
|
Financial data
($000s)
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
30,571
|
27,652
|
|
22,502
|
|
27,609
|
|
|
108,334
|
64,826
|
Income from mine
operations
|
2,923
|
3,643
|
|
4,083
|
|
4,995
|
|
|
15,644
|
8,206
|
Capital
expenditures
|
920
|
799
|
|
711
|
|
4,760
|
|
|
7,190
|
1,926
|
Capitalized
development
|
2,301
|
1,314
|
|
2,165
|
|
2,514
|
|
|
8,294
|
5,377
|
Exploration
expenditures (4)
|
1,187
|
1,253
|
|
1,566
|
|
1,953
|
|
|
5,959
|
2,152
|
|
|
(1)
|
The data presented
in this column is for the period from May 31, 2016, to December 31,
2016, the period for which we were entitled to all economic
benefits of the Seabee Gold Operation following our acquisition of
Claude Resources Inc. ("Claude Resources").
|
(2)
|
We report the
non-GAAP financial measures of realized gold prices, cash costs and
AISC per payable ounce of gold sold to manage and evaluate
operating performance at the Seabee Gold Operation. For a better
understanding and a reconciliation of these measures to cost of
sales, as shown in our consolidated statements of comprehensive
income, please see "Non-GAAP and Additional GAAP Financial
Measures" in section 10 of our MD&A.
|
(3)
|
The non-GAAP
financial measure of cash costs per payable ounce of gold sold from
the Seabee Gold Operation in 2016 was adjusted to eliminate the
adjustment of inventory to fair value as at the date of our
acquisition of Claude Resources.
|
(4)
|
Includes
capitalized and expensed exploration expenditures.
|
Mine production
The Seabee Gold Operation produced 83,998 ounces of gold in
2017, marking record annual production in its 27-year history,
resulting from an improved milling rate and higher gold grades.
In 2017, the operation milled 330,415 tonnes of ore, another
operating record, due largely to our ongoing Operational Excellence
initiatives. During the year, average gold mill feed grade was 8.25
g/t, 11% higher compared to the average gold grade milled in in the
period from acquisition to December 31,
2016. The Santoy mine supplied 82% of ore milled,
predominantly from long hole stopes, with the remaining ore sourced
from the Seabee mine.
In the fourth quarter of 2017, the operation produced 24,227
ounces of gold, a 34% increase compared to the previous quarter and
a quarterly record mainly due to record throughput and higher gold
grades.
A record 89,237 tonnes of ore were milled during the fourth
quarter at an average gold grade of 8.89 g/t and recovery of 97.4%.
This compares to a total of 84,315 tonnes of ore milled at an
average gold grade of 7.03 g/t and recovery of 97.2% in the third
quarter of 2017. During the fourth quarter, the mill maintained a
higher throughput of 970 tonnes per day, a record quarterly
performance. The Santoy mine supplied approximately 72% of total
ore milled in the fourth quarter of 2017, with the remainder
sourced from the Seabee mine.
Mine operating costs
Cash costs and AISC per payable ounce of gold sold are
non-GAAP financial measures. Please see "Cautionary Note Regarding
Non-GAAP Measures".
Cash costs per payable ounce of gold sold, which include all
costs of inventory, refining costs and royalties, were $605 in the fourth quarter of 2017, lower than
the $634 in the third quarter of 2017
due to higher production. Costs per tonne mined were $66 in the fourth quarter of 2017, 11% lower than
in the previous quarter due to higher tonnes mined and more
operating costs capitalized to underground development. Processing
and general and administrative unit costs were higher by 9% and
15%, respectively, in the fourth quarter of 2017 compared to the
third quarter of 2017, mainly due to the stronger CAD. Cash costs
per payable ounce of gold sold in 2017 were $602, lower than the $639 per payable ounce sold in 2016, mainly due
to higher gold mill feed grade.
AISC per payable ounce of gold sold were $776 in the fourth quarter of 2017, comparable to
$775 in the third quarter, as lower
cash costs was offset by higher underground capital development. In
2017, AISC per payable ounce of gold sold increased to $843 from $823 for
the period from acquisition to December 31,
2016, due to higher underground capital development, capital
expenditures and sustaining exploration, which was partially offset
by higher ounces of gold sold.
Mine sales
A total of 23,969 ounces of gold were sold at an average
realized price of $1,276 per ounce of
gold during the fourth quarter of 2017. This compares to 21,798
ounces of gold sold in the third quarter of 2017 at an average
realized price of $1,269 per ounce of
gold. The increase in sales was a function of increased gold
production. Gold sales totaled 86,087 ounces in 2017 compared to
50,446 ounces in 2016, with the increase mainly due to the shorter
comparative period of seven months in 2016. Realized prices were
marginally lower in 2017 than in 2016.
Exploration
For 2017, the Seabee Gold Operation undertook a program of
underground and surface drilling with the objective of increasing
and converting Mineral Resources to Mineral Reserves at Santoy and
demonstrating the exploration potential of several drill-ready
targets for discovery of mineralization to utilize nearby
infrastructure. The success of these in-mine programs is reflected
in the growth of Mineral Reserves after depletion reported at the
end of 2017 compared to the end of 2016. Mineral Reserves increased
by 21% to total 437,000 ounces and Measured and Indicated Mineral
Resources (inclusive of Mineral Reserves) increased by 19% to
681,000 ounces of gold with gains realized at Santoy Gap and Santoy
8. Inferred Mineral Resources of 674,000 ounces increased by 34,000
ounces despite conversion.
During the fourth quarter of 2017, we completed 15,050 meters of
underground diamond drilling for a total of 61,180 meters for the
year to explore further the extensions to the Santoy 8A and Santoy
Gap deposits. From surface, we completed 14,840 meters of drilling
for the year exploring Carr,
Herb Lake and another 10,506 meters
exploring the upper reaches of Santoy Gap and Santoy 8A.
Puna Operations, Argentina
(75% interest)
(amounts presented on 100% basis unless
otherwise stated)
|
Three months
ended
|
Total
|
Operating
data
|
December 31,
2017
|
September 30,
2017
|
|
June 30,
2017
|
|
March 31,
2017
|
|
|
2017
|
|
2016
|
Ore milled
(kt)
|
442
|
461
|
|
446
|
|
449
|
|
|
1,798
|
|
1,774
|
Silver mill feed
grade (g/t)
|
125
|
153
|
|
185
|
|
145
|
|
|
152
|
|
235
|
Processing cost ($/t
milled)
|
13.53
|
11.92
|
|
12.94
|
|
13.66
|
|
|
13.00
|
|
14.41
|
Silver recovery
(%)
|
66.0
|
67.8
|
|
73.5
|
|
72.6
|
|
|
70.3
|
|
77.8
|
General and admin
costs ($/t milled)
|
5.74
|
4.81
|
|
5.00
|
|
5.22
|
|
|
5.19
|
|
5.99
|
|
|
|
|
|
|
|
|
|
|
|
|
Silver produced ('000
oz)
|
1,169
|
1,541
|
|
1,947
|
|
1,520
|
|
|
6,177
|
|
10,422
|
Silver produced
(attributable) ('000 oz) (1)
|
877
|
1,156
|
|
1,777
|
|
1,520
|
|
|
5,330
|
|
10,422
|
Silver sold ('000
oz)
|
820
|
2,076
|
|
1,655
|
|
1,443
|
|
|
5,994
|
|
11,397
|
Silver sold
(attributable) ('000 oz) (1)
|
615
|
1,557
|
|
1,473
|
|
1,443
|
|
|
5,088
|
|
11,397
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized silver price
($/oz) (2)
|
16.96
|
16.77
|
|
17.31
|
|
17.35
|
|
|
17.10
|
|
17.05
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash costs ($/oz)
(2,3)
|
16.36
|
12.76
|
|
12.15
|
|
12.68
|
|
|
13.07
|
|
9.00
|
AISC ($/oz)
(2,3)
|
18.30
|
13.56
|
|
12.78
|
|
14.82
|
|
|
14.30
|
|
10.21
|
|
|
|
|
|
|
|
|
|
|
|
Financial Data
($000s)
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
12,093
|
28,958
|
|
22,029
|
|
26,534
|
|
|
89,614
|
|
169,343
|
Income from mine
operations
|
5,490
|
7,690
|
|
4,006
|
|
13,767
|
|
|
30,953
|
|
65,128
|
Capital expenditures
(4)
|
917
|
1,006
|
|
420
|
|
2,261
|
|
|
4,604
|
|
10,260
|
Exploration
expenditures (4)
|
—
|
—
|
|
—
|
|
—
|
|
|
—
|
|
65
|
|
|
(1)
|
Attributable
production and sales figures for the third and fourth quarter of
2017 are on 75% attributable basis. Attributable production and
sales for the second quarter of 2017 represent 100% for April and
May 2017 and 75% for June 2017.
|
(2)
|
We report the
non-GAAP financial measures of cash costs per payable ounce of
silver sold, realized silver prices and AISC to manage and evaluate
operating performance at Puna Operations. For a better
understanding and a reconciliation of these measures to cost of
sales, as shown in our consolidated statements of income, please
see "Non-GAAP and Additional GAAP Financial Measures" in section 10
of our MD&A.
|
(3)
|
Cash costs and
AISC per payable ounce of silver sold include stockpile inventory
costs previously incurred of $5.30 for the three months ended
December 31, 2017 (September 31, 2017 - $5.20, June 30, 2017 -
$3.30, March 31, 2017 - $2.00) and $3.90 for the year ended
December 31, 2017.
|
(4)
|
Does not include
exploration or development of the Chinchillas
project.
|
Mine production
In 2017, the operation produced a total of 6.2 million ounces of
silver, exceeding our increased annual production guidance. This
was largely due to stockpile grades and metallurgical performance
exceeding plan.
During the year, ore was milled at an average rate of 4,927
tonnes per day. Stockpile ore milled contained an average silver
grade of 152 g/t, higher than planned. While the average silver
recovery of 70.3% was lower than the previous year due to planned
lower silver mill feed grade, it was above our planned recovery for
the year.
In the fourth quarter of 2017, silver production of 1.2 million
ounces declined relative to the third quarter, as expected, due to
processing lower grade stockpile ore.
During the fourth quarter, ore was milled at an average rate of
4,800 tonnes per day. Ore milled contained an average silver grade
of 125 g/t, 18% lower than the 153 g/t reported in the third
quarter of 2017 as we continue to process lower grade stockpiles.
The average silver recovery in the fourth quarter was 66.0%.
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".
Cash costs, which include cost of inventory, treatment and
refining costs, provincial royalties and by-product credits, were
$16.36 per payable ounce of silver
sold in the fourth quarter of 2017, 28% higher than the
$12.76 per payable ounce of silver
sold in the third quarter of 2017 principally due to lower
production resulting from lower silver grades of the stockpiled ore
processed. In the fourth quarter of 2017, cash costs included
approximately $5.30 per payable ounce
of stockpile inventory costs that were previously incurred.
Cash costs per payable ounce of silver sold in 2017 increased,
as anticipated, to $13.07 from
$9.00 in 2016, as 2017 was impacted
by the cessation of mining activities at the Pirquitas property in
January, resulting in processing lower grade stockpiles for the
remainder of the year.
AISC per payable ounce of silver sold in the fourth quarter of
2017 were at $18.30 compared to
$13.56 in the third quarter due to
higher cash costs and lower volumes sold. AISC of $14.30 per payable ounce of silver sold in 2017
were higher than $10.21 per payable
ounce of silver sold in 2016 due to higher cash costs and higher
capital investments per ounce sold.
Mine sales
Silver sales totaled 0.8 million ounces and attributable sales
were 0.6 million in the fourth quarter of 2017, a 61% decrease from
the third quarter of 2017, due to lower production in the fourth
quarter of 2017 and timing of concentrate shipments which led to an
increase in concentrate inventories. Silver sales for the year
totaled 6.0 million ounces and attributable share of silver sales
in 2017 was 5.1 million ounces. This compares to 11.4 million
ounces of silver sold in 2016.
Exploration
There was no exploration activity at the Pirquitas property
during 2017 as we focused on advancing the Chinchillas project.
Chinchillas Project, Argentina
Since the initiation of development activities in June 2017, project execution is well underway
with purchase commitments made for critical long lead equipment
including a geodesic stockpile cover, tailings and reclaim water
pumps, piping, pre-fabricated electrical rooms and all mining and
supporting mobile equipment.
The Chinchillas mine Environmental Impact Assessment ("EIA")
approval was received in December
2017 including final negotiations on land leases and
community commitments.
Construction contracts were issued for tender with negotiations
underway and award expected through the first quarter of
2018. These contracts include concrete and earthworks and
general electromechanical installation at Pirquitas, and
infrastructure buildings at Chinchillas, including administration
buildings, truck shop, diesel and explosives storage and
distribution systems. The mine pre-stripping has been advanced with
further detailed planning on pioneering activities. Pre-stripping
and construction contractors are anticipated to mobilize in the
first quarter of 2018 with delivery of ore to the Pirquitas mill in
the second half of 2018.
Other Projects
SIB project, Canada
We recently announced plans to continue with the exploration
program committing to a $3.2 million
drill program of approximately 10,000 meters planned for 2018. The
SIB exploration project is located near the high-grade,
past-producing Eskay Creek mine in
northwest British Columbia. We
hold a three-year option to acquire up to a 60% undivided interest
in the project and have met the first year spending requirement of
$2.9 million.
Outlook
This section of the news release provides management's
production, cost, capital, exploration and development expenditure
estimates for 2018. See "Cautionary Note Regarding Forward-Looking
Statements."
For the full year 2018, we expect:
Operating
Guidance
|
|
Marigold
mine
|
|
Seabee Gold
Operation
|
|
Puna
Operations
(75% interest)(4)
|
|
Gold
Production
|
oz
|
190,000 -
210,000
|
|
85,000 -
92,000
|
|
—
|
|
Silver
Production
|
Moz
|
—
|
|
—
|
|
3.0 - 4.4
|
|
Silver Production
(attributable)
|
Moz
|
—
|
|
—
|
|
2.3 - 3.3
|
|
Lead
Production
|
Mlb
|
—
|
|
—
|
|
7.0 - 12.5
|
|
Lead Production
(attributable)
|
Mlb
|
—
|
|
—
|
|
5.3 - 9.4
|
|
Zinc
Production
|
Mlb
|
—
|
|
—
|
|
5.5 - 7.5
|
|
Zinc Production
(attributable)
|
Mlb
|
—
|
|
—
|
|
4.1 - 5.6
|
|
Cash Cost per Payable
Ounce Sold (1)
|
$/oz
|
725 - 775
|
|
560 - 610
|
|
12.50 -
15.00
|
|
Sustaining Capital
Expenditures (2)
|
$M
|
35
|
|
10
|
|
10
|
|
Capitalized Stripping
/ Capitalized
Development
|
$M
|
15
|
|
9
|
|
10
|
|
Exploration
Expenditures (3)
|
$M
|
9
|
|
9
|
|
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 the
Marigold mine, the Seabee Gold Operation and Puna Operations. See
"Cautionary Note Regarding Non-GAAP Measures".
|
(2)
|
Sustaining capital
expenditures for Puna Operations exclude initial capital
expenditures related to the development of the Chinchillas
project.
|
(3)
|
Includes
capitalized and expensed exploration expenditures.
|
(4)
|
Shown on a 100%
basis unless otherwise indicated.
|
On a consolidated basis, at the mid-point of guidance, we expect
to produce 340,000 gold equivalent ounces in 2018 at gold
equivalent cash costs of between $715
and $770 per ounce. On an
attributable basis, we expect to produce 325,000 gold equivalent
ounces in 2018 at gold equivalent cash costs of between
$705 and $760 per ounce.
Marigold production is expected to remain at or near the levels
achieved in 2017 as the mine benefits from sustaining higher mining
rates and expanded leach pad infrastructure. Due to the ongoing
positive operating performance, cash cost guidance of $725 to $775 per
payable gold ounce is materially lower than that forecast in the
5-year Outlook published in September
2016. Sustaining capital expenditures are expected to total
approximately $35 million including
$18 million for maintenance and
purchase of mobile fleet and $10
million for leach pad construction and pumping upgrades.
Quarterly production is expected to range between 40,000 ounces and
60,000 ounces of gold during the year. Production in the first
quarter is expected to be near the lower end and production in the
fourth quarter near the upper end of the range, due to higher
amount of gold ounces stacked in the first half of the year and
faster leaching in the second half of the year associated with the
new leach pad. Capitalized stripping is expected to total
$15 million with the majority to be
incurred in the second half of the year as the mine commences
stripping the next phase of the Mackay pit.
Since the release of our Outlook in early January and in
addition to the above, we have approved the purchase of four 300
tonne class haul trucks for Marigold at a cost of $22 million for expected service in the third
quarter of 2018. Upon review of the Mineral Reserves added in 2017
that identified a wider and deeper mining phase within the Mackay
pit, the truck purchase accommodates the required longer haul
distances and stripping requirements while utilizing available
loading capacity. Although the additions to the trucking fleet will
not change the production profile significantly from that presented
in the 5-Year Outlook, these purchases are expected to increase
production capacity to enable potential increased annual production
of over 250,000 ounces in 2022 and facilitate the mining of the
increased Mineral Reserves identified in 2017.
At the Seabee Gold Operation, we expect to build on the mine's
record 2017 operating performance and continue the implementation
of the development and expansion scenario contemplated in the
Preliminary Economic Assessment (the "PEA"), which was published in
October 2017. Our focus remains on
increasing production from the Santoy mine to support higher mill
throughput levels and lower unit costs. The original Seabee mine is
expected to be closed by mid-2018 after remnant ore extraction and
removal of infrastructure, contributing in part to the lower unit
costs. Gold production is expected to increase by approximately 5%
while cash costs per payable ounce of gold is expected to further
decline.
Sustaining capital expenditures of $10
million at the Seabee Gold Operation include additions to
the underground and surface mobile equipment fleet, tailings
expansion and upgrade to site camp infrastructure to support the
longer mine life, all expenditures contemplated in the PEA.
Capitalized development of $9 million
is principally related to Santoy decline development and to
establish stations for underground definition and exploration
drilling.
With the receipt of permits in December
2017 to construct the Chinchillas project, Puna Operations
will complete development of this deposit in 2018 to materially
extend its operating life. Consistent with the pre-feasibility
study on this high return project, project development expenditures
are expected to total $81 million,
with $70 million remaining to be
invested in 2018. Our 75% share of project capital before VAT is,
therefore, $53 million for 2018.
First ore delivery to the Pirquitas mill is expected in the second
half of 2018 with sequential ramp up through the remaining months
of 2018. Once Chinchillas ore is being processed, Puna Operations
will produce lead-silver and zinc concentrates. The operation is
expected to produce between 3.0 million and 4.4 million ounces of
silver in 2018, with approximately 1.6 million ounces of production
anticipated in the first half of the year based solely on
processing of stockpiles and Chinchillas production anticipated in
the second half of 2018.
Due to the success of our 2016 and 2017 exploration programs and
consistent with our strategy to invest in our assets, we are
increasing exploration investment at the Marigold mine and Seabee
Gold Operation to $9 million at each
asset. Marigold mine exploration will target infill drilling of
higher grade zones within the Mackay pit and commence a more
focused program on the Red Dot deposit among additional ongoing
programs. The Seabee Gold Operation exploration programs are
focused in three areas, including infill drilling and exploration
at Santoy Gap, exploration on the Seabee land package for new
deposits, including follow-up on the 2017 Carr project results, and
initial drill programs on the Fisher property. Exploration at Puna
Operations, SIB, Perdito and other projects as well as property
holding costs amount to $10 million
for a total exploration and development investment of $28 million in 2018.
Gold equivalent figures for our 2018 operating guidance are
based on gold-to-silver ratio of 73:1. Cash costs and capital
expenditures guidance is based on an oil price of $60 per barrel and exchange rate of 1.25 Canadian dollar ("CAD") to U.S. dollar
("USD").
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
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Revenue
|
107,881
|
|
127,317
|
|
448,773
|
|
490,986
|
|
Income from mine
operations (1)
|
21,190
|
|
27,456
|
|
113,263
|
|
154,006
|
|
Gross
margin
|
20
|
%
|
22
|
%
|
25
|
%
|
31
|
%
|
Operating income
(1)
|
19,937
|
|
23,506
|
|
101,332
|
|
112,605
|
|
Net income
|
16,850
|
|
12,132
|
|
71,466
|
|
64,957
|
|
Basic attributable
income per share
|
0.14
|
|
0.10
|
|
0.58
|
|
0.63
|
|
Adjusted attributable
income before tax (1)
|
3,542
|
|
32,707
|
|
46,281
|
|
116,778
|
|
Adjusted attributable
net income (1)
|
2,862
|
|
30,750
|
|
40,074
|
|
100,302
|
|
Adjusted basic
attributable income per share (1)
|
0.02
|
|
0.26
|
|
0.34
|
|
0.97
|
|
Cash generated by
operating activities
|
45,175
|
|
74,130
|
|
144,725
|
|
170,684
|
|
Cash used in
investing activities
|
(9,633)
|
|
(24,042)
|
|
(15,494)
|
|
(43,264)
|
|
Cash generated by
(used in) financing activities
|
1,942
|
|
336
|
|
4,601
|
|
(11,064)
|
|
|
|
|
|
|
|
|
|
Financial
Position
|
December 31,
2017
|
|
December 31,
2016
|
|
Cash and cash
equivalents
|
459,864
|
|
327,127
|
|
Marketable
securities
|
114,001
|
|
148,944
|
|
Current assets -
total
|
799,597
|
|
704,240
|
|
Current liabilities -
total
|
71,466
|
|
144,306
|
|
Working
capital
|
728,131
|
|
559,934
|
|
Total
assets
|
1,537,454
|
|
1,438,688
|
|
|
|
(1)
|
We report non-GAAP
measures including income from mine operations, operating income,
adjusted attributable income before tax, adjusted attributable net
income, adjusted basic attributable income per share,, to manage
and evaluate our operating performance. Please see "Cautionary Note
Regarding Non-GAAP Measures".
|
Quarterly financial summary
Revenue in the fourth quarter of 2017 decreased by 15% relative
to the comparative quarter in 2016, as 39% higher payable ounces
sold from the Seabee Gold Operation and 2% higher realized gold
price were more than offset by 16% lower payable gold ounces of
gold sold from the Marigold mine and 69% lower payable ounces of
silver sold from Puna Operations. The increase in sales from the
Seabee Gold Operation in the fourth quarter of 2017, compared to
the fourth quarter of 2016, was a result of higher production due
to higher gold grade of ore mined and increased mill throughput,
while at Puna Operations the reduction was due to the decrease in
production associated with planned processing of lower grade
stockpiles. At the Marigold mine, the gold grade stacked in the
current quarter was lower than in the comparative quarter and the
mine experienced operational shut downs due to planned maintenance
and the fatal incident in October
2017.
Income from mine operations in the fourth quarter of 2017
generated a gross margin of 20%, comparable to the 22% gross margin
generated in the fourth quarter of 2016. In the fourth quarter of
2017, the higher cost of sales at Puna Operations, where we are
processing lower grade stockpiles, and the higher costs of sales at
both the Marigold mine and the Seabee Gold Operation, which
resulted mainly from higher depreciation and depletion, were offset
by higher realized gold price and the positive impact of non-cash
inventory provision reversal of $6.3
million. In the comparative quarter, income from mine
operations was negatively impacted by a non-cash adjustment to
inventory and restructuring costs reflecting the cessation of
mining from the San Miguel pit at Puna Operations totaling
$9.4 million. Net income for the
fourth quarter of 2017 was $4.7
million higher than the comparative quarter due to income
tax recoveries, which offset lower income from mine operations and
higher interest expense resulting from interest incurred on our
moratorium liability in Argentina.
Cash generated by operating activities was $45.2 million in the fourth quarter of 2017
compared to $74.1 million in the
fourth quarter of 2016. Lower sales at higher unit costs at the
Marigold mine and Puna Operations, partially offset by higher sales
at similar costs at Seabee Gold Operation, generated lower cash
from operating activities. We used $9.6
million in investing activities in the fourth quarter of
2017 compared to $24.0 million in the
fourth quarter of 2016. Our use of cash for investing was lower in
the fourth quarter of 2017, because our investment in property,
plant and equipment of $15.4 million,
was lower than $23.6 million in the
comparative quarter of 2016, and we received $14.2 million from the sale of common shares of
Pretium Resources Inc. ("Pretium") and $1.2
million from our joint venture partner for its share of the
development costs of Chinchillas.
Annual financial summary
Revenue in 2017 compared to 2016 was lower by 9% despite the 12%
increase in gold payable ounces sold, as we owned the Seabee Gold
Operation for the whole year in 2017, as it was more than offset by
47% lower payable ounces of silver sold, as a result of planned
processing of lower grade stockpiles at Puna Operations. Gold and
silver realized prices were comparable in both periods.
Income from mine operations in 2017 generated a gross margin of
25%, lower than the 31% in 2016, as lower sales of silver and
higher cost of sales at the Marigold mine and Puna Operations were
partially offset by lower cost of sales at the Seabee Gold
Operation. In the year ended December 31, 2017, the release of
a supplies inventory provision at Puna Operations and the
resolution of our export duty claim in Argentina resulted in a $10.5 million reduction to cost of sales. In the
year ended December 31, 2016, income from mine operations was
negatively impacted by a restructuring provision in relation to the
cessation of mining in the San Miguel pit at Puna Operations and
other non-cash adjustments to inventory totaling $9.4 million. Net income for the year ended
December 31, 2017, was 10% higher than 2016 as it was
positively impacted by an impairment reversal of the Pirquitas
plant of $24.4 million resulting from
its operating life extension following the formation of Puna
Operations.
Cash generated from operating activities was $144.7 million in 2017, compared to $170.7 million in 2016. Lower silver volumes sold
at higher unit costs at Puna Operations and payment of $16.9 million into the Argentina tax moratorium system, generated
lower cash from operations. We used $15.5
million in investing activities in the year ended
December 31, 2017, compared to $43.3
million used in the comparative period of 2016. There were a
number of non-recurring transactions that impacted our investing
cash flows in both years. In 2017, we received proceeds of
$68.6 million from disposal of a
portion of our common shares of Pretium and paid $13.0 million for our option exercise on the
Chinchillas project. In 2016, we received $16.8 million of cash as part of the acquisition
of the Seabee Gold Operation and a tax refund from the Canada
Revenue Agency of $18.2 million. In
2017 compared to 2016, investment in plant and equipment was also
lower by $13.4 million, we invested
less in capitalized stripping at the Marigold mine by $9.8 million and incurred $11.4 million on the Chinchillas project. In the
year ended December 31, 2016, we
repaid $17.6 million of bank loans
which related to the acquisition of Claude Resources Inc. ("Claude
Resources") and the bank loan in Argentina.
Corporate Summary
SSR Mining is equipped with an experienced management team of
mine-builders and operators with proven capabilities. We have an
enviable balance sheet with $459.9
million in cash and cash equivalents and $114.0 million in marketable securities as at
December 31, 2017. 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 31, 2017, we resolved our
outstanding export duty liability in Argentina and entered into the tax moratorium
system which converted the export duty liability to Argentine pesos
("ARS"). We have agreed to pay approximately ARS 1 billion, of
which we paid 5% upon entry and the balance will be in equal
installments over 60 months. Outstanding ARS amounts are subject to
interest at a rate of 1.5% per month.
On May 31, 2017, we completed a
joint venture, called Puna Operations Inc. ("Puna Operations"),
comprised of our Pirquitas property and Golden Arrow Resources
Corporation's ("Golden Arrow") Chinchillas property of which we own
75% and we are the operator.
Effective August 1, 2017, we
changed our name to SSR Mining Inc. from Silver Standard Resources
Inc. to better reflect our business focus as a precious metals
producer.
On September 7, 2017, we reported
positive results of a PEA for the Seabee Gold Operation, which
provides a mine expansion scenario. The PEA contemplates near-term
production growth, extends production to 2024, expands operating
margins and improves processing plant performance while requiring
low capital investment. We filed a technical report titled "NI
43-101 Technical Report for the Seabee Gold Operation, Saskatchewan, Canada" in support of the PEA,
which is available on SEDAR at www.sedar.com, the EDGAR section of
the SEC website at www.sec.gov and on our website. The PEA is
preliminary in nature and includes Inferred Mineral Resources that
are considered too speculative geologically to have the economic
considerations applied to them that would enable them to be
categorized as Mineral Reserves, and there is no certainty that the
PEA will be realized. Mineral Resources that are not Mineral
Reserves do not have demonstrated economic viability.
On December 27, 2017, we announced
that we had received approval of the EIA from the Argentine
regulatory authorities for Puna Operations' Chinchillas project in
Jujuy Province, Argentina.
Development activities commenced, with first ore feed to the
Pirquitas mill expected in the second half of 2018. Priority
development activities include initiating the earthworks projects
at Chinchillas and commencing construction activities at Pirquitas,
as well as pioneering works for pre-stripping at the Chinchillas
deposit.
During 2017, we sold 7.9 million common shares of Pretium,
realizing pre-tax cash proceeds of $68.6 million. At
December 31, 2017, we held 9.04 million common shares,
representing approximately 4.99% of Pretium. Subsequent to
year-end, we divested of an additional 3.6 million shares of
Pretium for pre-tax proceeds of approximately $25.0 million.
During 2017, we also completed the sale of our Berenguela
exploration project in Peru.
On January 1, 2018, we appointed
Ms. Elizabeth A. Wademan and Mr. Simon A. Fish, to our
Board of Directors with the objective to strengthen the Board's
expertise in the areas of international capital markets and legal
and corporate governance.
Mineral Reserves and Mineral Resources
At December 31, 2017, our total
Proven and Probable gold Mineral Reserves estimate was 3.92 million
ounces and total Proven and Probable silver Mineral Reserves
estimate was 52.9 million ounces. 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, 2016,
reflecting market conditions and consensus long-term metal prices.
All Mineral Resources and Mineral Reserves estimates are reported
on a 100% basis, except for Puna Operations, Mineral Resources and
Mineral Reserves estimates of silver ounces for Puna Operations are
reported on a 75% attributable basis.
At Marigold, positive exploration results and discoveries led to
increases of Mineral Reserves and Mineral Resources. Probable
Mineral Reserves increased by 12% to 3.19 million ounces of gold,
after accounting for mining depletion and changes to mining cost
assumptions, while gold grade increased to 0.46 g/t. The increase
in Probable Mineral Reserves is attributable to our successful
infill and exploration drilling programs, which converted Mineral
Resources at East Basalt, and Mackay Phase 4, collectively
contributing 360,000 ounces of gold. A modeling improvement
supported by several years of positive tonnage reconciliation
resulted in an increase of 280,000 ounces of gold to Probable
Mineral Reserves. Indicated Mineral Resources increased by 10% to
5.47 million ounces of gold (370.2 million tonnes at an average
grade of 0.46 g/t) after accounting for mining depletion and
changes to mining cost assumptions. The increase in Indicated
Mineral Resources (inclusive of Mineral Reserves) is attributed to
the above items and drilling additions and conversion of
approximately 280,000 gold ounces at Valmy, East Basalt, Battle Cry and Mackay
Phase 4 areas. Inferred Mineral Resources declined 10% to 630,000
ounces of gold (49.7 million tonnes at an average gold grade of
0.41 g/t) due to conversion.
At the Seabee Gold Operation, Proven and Probable Mineral
Reserves total 437,000 ounces of gold, a 21% increase, after
depletion, compared to year-end 2016 as a result of conversion and
development drilling. Average Mineral Reserve grade has increased
to 9.88 g/t gold due to the addition of higher grade Mineral
Reserves from Santoy 8 and Santoy Gap. Proven and Probable
Mineral Reserve increases are due to conversion of 78,000 gold
ounces at Santoy 8A and 97,000 gold ounces at Santoy Gap. Measured
and Indicated Mineral Resources (inclusive of Mineral Reserves)
total 681,000 gold ounces at year-end 2017, reflecting an increase
of 155,000 gold ounces at Santoy 8 and 158,000 gold ounces at
Santoy Gap. As at December 31, 2017,
Inferred Mineral Resources total 674,000 gold ounces (2.26 million
tonnes at an average gold grade of 9.29 g/t), reflecting a 5%
increase as exploration activities during 2017 more than offset
conversion.
At Puna Operations, Probable Mineral Reserves increased to 45.7
million ounces of silver (12.76 million tonnes at an average silver
grade of 149 g/t) due to the addition of the Chinchillas project
which added 43.4 million ounces of silver. Measured and Indicated
Mineral Resources (inclusive of Mineral Reserves) total 92.5
million ounces of silver within the open pit, underground and
stockpile inventory at both Chinchillas and Pirquitas. Inferred
Mineral Resources total 30.8 million ounces of silver (22.0 million
tonnes at an average silver grade of 58 g/t) at December 31, 2017.
Details on Mineral Reserves and Mineral Resources by mine
including tonnes, grades, ounces and notes, are presented
below.
Mineral Reserves and Resources
(As of December 31, 2017)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SSRM
Interest
|
SSRM
Interest
|
|
Location
|
Tonnes
|
Silver
|
Gold
|
Lead
|
Zinc
|
SSRM
|
Silver
|
Gold
|
|
|
millions
|
g/t
|
g/t
|
%
|
%
|
%
Interest
|
million
oz
|
million
oz
|
MINERAL
RESERVES:
|
|
|
|
|
|
|
|
|
|
|
Proven Mineral
Reserves
|
Seabee
|
Canada
|
0.26
|
|
7.58
|
|
|
100
|
|
0.06
|
Chinchillas
|
Argentina
|
1.64
|
180
|
|
0.75
|
0.42
|
75
|
7.1
|
|
Total
|
|
|
|
|
|
|
|
7.1
|
0.06
|
|
|
|
|
|
|
|
|
|
|
Probable Mineral
Reserves
|
Marigold
|
U.S.
|
205.10
|
|
0.46
|
|
|
100
|
|
3.00
|
Marigold Leach
Pad Inventory
|
U.S.
|
|
|
|
|
|
100
|
|
0.19
|
Seabee
|
Canada
|
1.12
|
|
10.41
|
|
|
100
|
|
0.37
|
Chinchillas
|
Argentina
|
10.07
|
150
|
|
1.27
|
0.50
|
75
|
36.3
|
|
Pirquitas
Stockpiles
|
Argentina
|
1.05
|
90
|
|
|
0.69
|
75
|
2.3
|
|
San Luis
|
Peru
|
0.51
|
447
|
18.06
|
|
|
100
|
7.2
|
0.29
|
Total
|
|
|
|
|
|
|
|
45.8
|
3.85
|
|
|
|
|
|
|
|
|
|
|
Proven and
Probable Mineral Reserves
|
Marigold
|
U.S.
|
205.10
|
|
0.46
|
|
|
100
|
|
3.00
|
Marigold
Leach
Pad
Inventory
|
U.S.
|
|
|
|
|
|
100
|
|
0.19
|
Seabee
|
Canada
|
1.37
|
|
9.88
|
|
|
100
|
|
0.44
|
Chinchillas
|
Argentina
|
11.71
|
154
|
|
1.20
|
0.49
|
75
|
43.4
|
|
Pirquitas
Stockpiles
|
Argentina
|
1.05
|
90
|
|
|
0.69
|
75
|
2.3
|
|
San Luis
|
Peru
|
0.51
|
447
|
18.06
|
|
|
100
|
7.2
|
0.29
|
Total Proven and
Probable
|
|
|
|
|
52.9
|
3.92
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SSRM
Interest
|
SSRM
Interest
|
|
Location
|
Tonnes
|
Silver
|
Gold
|
Lead
|
Zinc
|
SSRM
|
Silver
|
Gold
|
|
|
millions
|
g/t
|
g/t
|
%
|
%
|
%
Interest
|
million
oz
|
million
oz
|
MINERAL
RESOURCES:
|
|
|
|
|
|
|
|
|
|
|
Measured Mineral
Resource (inclusive of Proven Mineral Reserves)
|
Seabee
|
Canada
|
0.57
|
|
9.29
|
|
|
100
|
|
0.17
|
Chinchillas
|
Argentina
|
3.09
|
128
|
|
0.60
|
0.41
|
75
|
9.5
|
|
Pitarrilla
|
Mexico
|
12.35
|
90
|
|
0.70
|
1.22
|
100
|
35.7
|
|
Total
|
|
|
|
|
|
|
|
45.3
|
0.17
|
|
|
|
|
|
|
|
|
|
|
Indicated Mineral
Resources (inclusive of Probable Mineral Reserves)
|
Marigold
|
U.S.
|
370.20
|
|
0.46
|
|
|
100
|
|
5.47
|
Marigold
Leach
Pad
Inventory
|
U.S.
|
|
|
|
|
|
100
|
|
0.19
|
Seabee
|
Canada
|
1.40
|
|
11.33
|
|
|
100
|
|
0.51
|
Chinchillas
|
Argentina
|
26.20
|
98
|
|
0.94
|
0.62
|
75
|
62.1
|
|
Pirquitas
UG
|
Argentina
|
2.63
|
292
|
|
|
4.46
|
75
|
18.6
|
|
Pirquitas
Stockpiles
|
Argentina
|
1.05
|
90
|
|
|
0.69
|
75
|
2.3
|
|
Pitarrilla
|
Mexico
|
147.02
|
97
|
|
0.32
|
0.87
|
100
|
460.7
|
|
Pitarrilla
UG
|
Mexico
|
5.43
|
165
|
|
0.68
|
1.34
|
100
|
28.8
|
|
San Luis
|
Peru
|
0.48
|
578
|
22.40
|
|
|
100
|
9.0
|
0.35
|
Amisk
|
Canada
|
30.15
|
6
|
0.85
|
|
|
100
|
6.0
|
0.83
|
Total
|
|
|
|
|
|
|
|
587.5
|
7.34
|
|
|
|
|
|
|
|
|
|
|
Measured and
Indicated Mineral Resources (inclusive of Mineral
Reserves)
|
Marigold
|
U.S.
|
370.20
|
|
0.46
|
|
|
100
|
|
5.47
|
Marigold
Leach
Pad
Inventory
|
U.S.
|
|
|
|
|
|
100
|
|
0.19
|
Seabee
|
Canada
|
1.97
|
|
10.74
|
|
|
100
|
|
0.68
|
Chinchillas
|
Argentina
|
29.29
|
101
|
|
0.90
|
0.60
|
75
|
71.6
|
|
Pirquitas
UG
|
Argentina
|
2.63
|
292
|
|
|
4.46
|
75
|
18.6
|
|
Pirquitas
Stockpiles
|
Argentina
|
1.05
|
90
|
|
|
0.69
|
75
|
2.3
|
|
Pitarrilla
|
Mexico
|
159.36
|
97
|
|
0.35
|
0.89
|
100
|
496.5
|
|
Pitarrilla
UG
|
Mexico
|
5.43
|
165
|
|
0.68
|
1.34
|
100
|
28.8
|
|
San Luis
|
Peru
|
0.48
|
578
|
22.40
|
|
|
100
|
9.0
|
0.35
|
Amisk
|
Canada
|
30.15
|
6
|
0.85
|
|
|
100
|
6.0
|
0.83
|
Total Measured and
Indicated
|
|
|
|
|
632.7
|
7.52
|
|
|
|
|
|
|
|
|
|
|
Inferred Mineral
Resources
|
Marigold
|
U.S.
|
49.70
|
|
0.41
|
|
|
100
|
|
0.63
|
Seabee
|
Canada
|
2.26
|
|
9.29
|
|
|
100
|
|
0.67
|
Chinchillas
|
Argentina
|
20.92
|
50
|
|
0.54
|
0.81
|
75
|
25.4
|
|
Pirquitas
UG
|
Argentina
|
1.08
|
207
|
|
|
7.45
|
75
|
5.4
|
|
Pitarrilla
|
Mexico
|
8.52
|
77
|
|
0.18
|
0.58
|
100
|
21.2
|
|
Pitarrilla
UG
|
Mexico
|
1.23
|
138
|
|
0.89
|
1.25
|
100
|
5.5
|
|
San Luis
|
Peru
|
0.02
|
270
|
5.60
|
|
|
100
|
0.2
|
0.00
|
Amisk
|
Canada
|
28.65
|
4
|
0.64
|
|
|
100
|
3.7
|
0.59
|
Total
Inferred
|
|
|
|
|
|
61.4
|
1.90
|
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 estimates of Mineral Reserves and
Mineral Resources for each property other than the Marigold mine,
the Seabee Gold Operation and the Amisk project have been reviewed
and approved by Bruce Butcher,
P.Eng., our Director, Mine Planning,
and F. Carl Edmunds, P.Geo., our
Chief Geologist, each of whom is a Qualified Person.
Mineral Resources are reported inclusive of Mineral Reserves.
Mineral Resources that 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 Resources and Mineral Reserves estimates of silver
ounces for Puna Operations are reported on a 75% attributable
basis. Mineral Resources and Mineral Reserves 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 of December 31, 2017.
Metal prices utilized for Mineral Reserves estimates are
$1,250 per ounce of gold,
$18.00 per ounce of silver,
$0.90 per pound of lead and
$1.00 per pound of zinc, except as
noted below for the San Luis project. Metal prices utilized for
Mineral Resources estimates are $1,400 per ounce of gold, $20.00 per ounce of silver, $1.10 per pound of lead and $1.30 per pound of zinc, except as noted below
for each of the Chinchillas project, 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
- Except for updates to cost parameters and metal price
assumptions noted above, 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 November 19,
2014 (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
Thomas Rice, SME Registered Member,
a Qualified Person and our Technical Services Manager at the
Marigold mine, and is reported at a cut-off grade of 0.065 g/t
payable gold.
- Mineral Resources estimate was prepared under the supervision
of James N. Carver, SME Registered
Member, our Chief Geologist at the Marigold mine, and Karthik Rathnam, MAusIMM (CP), our Chief
Engineer at the Marigold mine, each of whom is a Qualified Person.
Mineral Resources estimate is reported based on an optimized pit
shell at a cut-off grade of 0.065 g/t payable gold, and includes an
estimate of Mineral Resources for mineralized stockpiles. Mineral
Resources for mineralized stockpiles were estimated using Inverse
Distance cubed.
Seabee Gold Operation
- Except for updates to cost parameters, metal price assumptions
noted above, 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 Reserves estimate for the Seabee mine is
reported at a cut-off grade of 4.55 g/t gold, and for the Santoy
mine is reported at a cut-off grade of 3.68 g/t gold.
- 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 Resources estimate for the Seabee
mine is reported at a cut-off grade of 4.06 g/t gold, and for the
Santoy mine is reported at a cut-off grade of 3.29 g/t gold.
- Block modeling techniques were used for Mineral Resources and
Mineral Reserves evaluation for the Santoy mine and the majority of
the Seabee mine. Polygonal techniques were used in areas of
historical mining at the Seabee mine.
- The preliminary economic assessment set forth in the Seabee
Technical Report is preliminary in nature, and it includes Inferred
Mineral Resources that are considered too speculative geologically
to have the economic considerations applied to them that would
enable them to be categorized as Mineral Reserves, and there is no
certainty that the preliminary economic assessment will be
realized. Mineral Resources that are not Mineral Reserves do not
have demonstrated economic viability.
Puna Operations
- Chinchillas Mineral Reserves estimate is reported at a cut-off
grade of $32.56 per tonne net smelter
return ("NSR"). For additional information on the key assumptions,
parameters and methods used to estimate Chinchillas Mineral
Reserves and the data verification procedures followed, readers are
encouraged to review the technical report entitled "NI 43-101
Technical Report Pre-feasibility Study of the Chinchillas
Silver-Lead-Zinc Project, Jujuy Province, Argentina" dated May
15, 2017 (the "Chinchillas Technical Report").
- Chinchillas Mineral Resources estimate is reported at a base
case cut-off grade, which reflects the transport to and processing
of ore at the Pirquitas property, of 60.00 grams per tonne silver
equivalent based on projected operating costs and using metal price
assumptions of $22.50 per ounce of
silver, $1.00 per pound of lead and
$1.10 per pound of zinc. For
additional information on the key assumptions, parameters and
methods used to estimate Chinchillas Mineral Resources and the data
verification procedures followed, readers are encouraged to review
the Chinchillas Technical Report.
- Pirquitas underground Mineral Resources (Pirquitas UG) estimate
is reported below the completed open pit shell; Mineral Resources
estimate for the Mining Area (which includes San Miguel, Chocaya,
Oploca and Potosà zones) is reported at a cut-off grade of
$100.00 per tonne NSR for San Miguel,
Oploca and Potosi, and
$90.00 per tonne NSR for
Cortaderas.
- Pirquitas Mineral Reserves and Pirquitas Mineral Resources
estimates in surface stockpiles are reported at a cut-off grade of
$16.93 per tonne NSR, respectively,
and were determined based on grade, rehandling costs and recovery
estimates from metallurgical testing.
San Luis Project
- Mineral Reserves estimate is reported at a cut-off grade of 6.9
g/t gold equivalent, using metal price assumptions of $800 per ounce of gold and $12.50 per ounce of silver.
- Mineral Resources estimate is reported at a cut-off grade of
6.0 g/t gold equivalent, using metal price assumptions of
$600 per ounce of gold and
$9.25 per ounce of silver.
Pitarrilla Project
- Mineral Resources estimate for the open pit is reported at a
cut-off grade of $16.38 per tonne NSR
for direct leach material, and $16.40
per tonne NSR for flotation/leach material.
- Underground Mineral Resources (Pitarrilla UG) estimate is
reported below the constrained open pit resource shell above a
cut-off grade of $80.00 per tonne
NSR, using grade shells that have been trimmed to exclude distal
and lone blocks that would not support development costs.
Amisk Project
- Mineral Resources estimate was prepared by Sebastien Bernier, P.Geo., Principal Consultant
(Resource Geology), SRK Consulting (Canada) Inc., a Qualified Person. Mineral
Resources estimate is reported at a cut-off grade of 0.40 grams of
gold equivalent per tonne using metal price assumptions of
$1,100 per ounce of gold and
$16.00 per ounce of silver inside
conceptual pit shells optimized using metallurgical and process
recovery of 87%, overall ore mining and processing costs of
$15.00 per tonne and overall pit
slope of fifty-five degrees.
Qualified Persons
Except as otherwise set out herein, the scientific and technical
information contained in this news release relating to the Marigold
mine has been reviewed and approved by Thomas Rice and James N.
Carver, each of whom is a SME Registered Member and a
Qualified Person under NI 43-101. Mr. Rice is our Technical
Services Manager and Mr. Carver is our Chief Geologist at the
Marigold mine. The scientific and technical data 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 Bruce Butcher, P.Eng., and F.
Carl Edmunds, P. Geo., each of whom
is a Qualified Person under NI 43-101. Mr. Butcher is our Director,
Mine Planning and Mr. Edmunds is our
Chief Geologist.
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 23, 2018, 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 1988
|
|
All other
callers:
|
+1 (412) 317-0088,
replay code 1988
|
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 the 75%-owned and operated
Puna Operations joint venture 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.
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: future production of gold, silver and other metals,
including forecasted production increase by 27% in 2021;
timing of production; future costs of inventory; cash costs and
AISC per payable ounce of gold, silver and other metals sold;
expected exploration and development expenditures; the prices of
gold, silver and other metals; our ability to discover new areas of
mineralization, to convert Inferred Mineral Resources to Indicated
Mineral Resources, to expand Mineral Reserves and to convert
Mineral Resources into Mineral Reserves; expansion of the Seabee
Gold Operation based on the results of the PEA; the PEA
representing production growth, improved margins and processing
plant performance and low capital investment; timing, amount and
duration of future production of gold under the PEA; the timing of
closure of the original Seabee mine; the timing of awarding
construction contracts for the Chinchillas project's supporting
infrastructure; expected timing of construction of and ore delivery
from the Chinchillas project; the expected timing of first ore
delivery to the Pirquitas mill and anticipated production resulting
therefrom; the anticipated effect of equipment purchases at
Marigold mine on future production; the expected benefits of the
new leach pad at the Marigold mine; the effects of laws,
regulations and government policies affecting our operations or
potential future operations; our exposure to fluctuations in ARS
and interest rates on the liability under the tax moratorium;
future successful exploration and development of our projects; the
sufficiency of our current working capital, anticipated operating
cash flow or our ability to raise necessary funds; 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, improvement or
remediation programs; the estimates of expected or anticipated
economic returns from our mining projects, including future sales
of metals, concentrate or other products produced by us; 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; our ability to
obtain necessary permits for the Chinchillas project; commodity
price fluctuations; political or economic instability and
unexpected regulatory changes; currency and interest rate
fluctuations; the possibility of future losses; general economic
conditions; fully realizing the value of our shareholdings in
Pretium Resources Inc. and our other marketable securities, due to
changes in price, liquidity or disposal cost of such marketable
securities; 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; potential labour
unrest, including labour actions by our unionized employees at Puna
Operations; the impact of governmental regulations, including
health, safety and environmental regulations, including increased
costs and restrictions on operations due to compliance with such
regulations; reclamation and closure requirements for our mineral
properties; failure to effectively manage our tailings facilities;
social and economic changes following closure of a mine, may lead
to adverse impacts and unrest; unpredictable risks and hazards
related to the development and operation of a mine or mineral
property that are beyond our control; indigenous peoples' title
claims and rights to consultation and accommodation may affect our
existing operations as well as development projects and future
acquisitions; assessments by taxation authorities in multiple
jurisdictions; 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,
including extreme weather conditions; fully realizing our interest
in deferred consideration received in connection with recent
divestitures; 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; an event of default under our Notes may
significantly reduce our liquidity and adversely affect our
business; failure to meet covenants under our senior secured
revolving credit facility; conflicts of interest that could arise
from certain of our directors' and officers' involvement with other
natural resource companies; information systems security threats;
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 U.S. Securities and Exchange Commission ("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 terms or performance
measures commonly used in the mining industry that are not defined
under International Financial Reporting Standards ("IFRS"),
including free cash flow, cash costs and AISC per payable ounce of
precious metals sold, realized metal prices, adjusted attributable
income (loss) before tax, adjusted attributable net income (loss),
adjusted basic attributable income (loss) per share, income from
mine operations, operating income and working capital. Non-GAAP
financial measures do not have any standardized meaning prescribed
under IFRS and, therefore, they may not be comparable to similar
measures reported by other companies. We believe that, in addition
to conventional measures prepared in accordance with IFRS, certain
investors use this information to evaluate our performance. The
data presented is intended to provide additional information and
should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with IFRS. These
non-GAAP measures should be read in conjunction with our
consolidated financial statements. Readers should refer to
"Non-GAAP and Additional GAAP Financial Measures" in section 10 of
our MD&A, available under our corporate profile at
www.sedar.com or on our website at www.ssrmining.com, for a more
detailed discussion of how we calculate such measures and for a
reconciliation of such measures to IFRS terms.
SOURCE SSR Mining Inc.