ADJUSTED ATTRIBUTABLE EPS OF $0.47 PER SHARE
DENVER, May 6, 2021 /PRNewswire/ - SSR Mining Inc.
(NASDAQ: SSRM) (TSX: SSRM) (ASX: SSR) ("SSR Mining" or "the
Company") reports consolidated financial results for first quarter
ended March 31, 2021. In addition,
the Board of Directors declared a quarterly cash dividend of
US$0.05 per common share, payable on
June 14, 2021 to holders of record at
the close of business on May 17,
2021. This dividend qualifies as an 'eligible dividend' for
Canadian tax purposes.
Rod Antal, President and CEO
said, "The first quarter of 2021 represented another strong
operational and financial quarter for SSR Mining as we delivered
production of 196,094 gold equivalent ounces at an AISC of
$1,004 per ounce and generated
$77 million of free cash flow.
The operational consistency of our four operating sites combined
with our peer leading free cash flow generation has allowed us to
come full circle with our 2021 capital allocation program and
supplement our existing $44 million
per year base dividend with a sizeable share buyback program of up
to $150 million. The combination of
the base dividend and our share buyback program will align our peer
leading free cash flow yield with our capital returns
yield.
From a growth perspective, we continue to invest in and advance
our large brownfield organic portfolio across Turkey, the US and Canada. At Çöpler, the flotation plant
construction is on-track for commissioning mid-year and will drive
stronger operational performance in the 2nd half of the year. In
addition, step-out and infill drilling at Ardich continues to
support resource expansion and conversion as we continue to
progress this sizeable, low capital intensity asset into production
by 2023. Exploration updates detailing the positive progress across
targets at Marigold, Çöpler, and Seabee are expected over the
course of the year."
First Quarter 2021 Highlights:
(All figures are in U.S. dollars unless otherwise noted)
- Robust quarterly operating performance across all four
operations: Delivered first quarter production of 196,094 gold
equivalent ounces at AISC of $1,004
per gold equivalent ounce, on track to meet full-year guidance
ranges.
- Strong financial performance: Generated cash flows from
operating activities of $145.2
million and free cash flow of $76.6
million in the first quarter.(1) Reported first
quarter attributable net income of $53.0
million, or $0.24 per share,
and adjusted attributable net income of $102.4 million, or $0.47 per share.(1)
- Maintained strong, peer-leading balance sheet: Cash and
cash equivalents and consolidated cash balances remained strong at
quarter end, increasing to $866.0
million and $901.6 million,
following $49.1 million in dividend
payments to equity shareholders and to Çöpler's non-controlling
interest, while also reducing debt balances $17.5 million during the quarter.
- Capital allocation framework in place: The Board
declared the first quarterly cash dividend of $0.05 per share on February 17, 2021. Subsequent to the quarter-end,
the Company announced that it has received acceptance from the
Toronto Stock Exchange, to initiate a Normal Course Issuer Bid
permitting SSR Mining to purchase for cancellation up to 10,000,000
common shares of the Company, representing 4.5% of SSR Mining's
total issued and outstanding common shares.
- Released year-end 2020 Mineral Reserves and Resources:
Gold Mineral Reserves increased 5% to 8.0 million ounces (9.0
million gold-equivalent ounces), while gold Measured and Indicated
Mineral Resources increased 14% to 15.0 million ounces (27.0
million gold-equivalent ounces).
- Delivered integrated sustainability report: On
March 30, 2021, the Company published
its third annual ESG and Sustainability Report, and its first since
the merger with Alacer. The ESG report included a commitment to net
zero greenhouse emissions by 2050.
- Çöpler delivered strong margins and progressed growth
initiatives: Delivered gold production of 78,478 ounces in the
first quarter. Reported AISC of $743
per ounce in the first quarter, generating robust
margins.(1) Çöpler flotation plant commissioning and
ramp-up remain on schedule for mid-year 2021.
- Marigold had record material movement and the Mineral
Resource grew: Delivered gold production of 67,936 ounces for
the first quarter as the mine moved a record 23.8 million tonnes of
material. The record movement was achieved despite a 35 day
scheduled maintenance shutdown of the largest shovel. Indicated
Mineral Resources increased by 9% for a total of 5.4 million ounces
of gold compared to 4.9 million ounces at year-end 2019. Mineral
Resources increased at Mackay, Red Dot, New Millennium, Crossfire
and Valmy.
- Seabee continues to deliver, Mineral Reserves were replaced
and the land position more than doubled: Produced 23,735 ounces
of gold in-line with the full-year mine plan. In the first quarter
of 2021, Seabee exercised its option to acquire an additional 20%
interest in the Fisher property, bringing its joint venture
interest to 80%. Despite a limited exploration program due to
COVID-19, Seabee largely replaced Mineral Reserves for the
year.
- Puna generated robust margins: Produced 1.8 million
ounces of silver at cash costs of $9.41 per ounce in the first quarter and AISC of
$13.98 per ounce. Puna revenue
increased by 92% in the first quarter of 2021 compared to the first
quarter of 2020, due to a 49% increase in the average realized
silver price.(1)
(1)
|
SSR Mining reports
the non-GAAP financial measures of all-in sustaining costs ("AISC")
per ounce of gold, silver and gold equivalent sold, adjusted
attributable net income, adjusted attributable net income per
share, free cash flow and consolidated cash to manage and
evaluate the Company's operating performance. See "Non-GAAP Financial Measures" in Section 13 of the MD&A.
|
Financial and Operating Highlights
A summary of the Company's consolidated financial and operating
results for the three months ended March 31,
2021 and 2020 are presented below:
(in thousands of US dollars, except per share data)
|
Three months ended March 31,
|
|
2021
|
2020
|
Financial Results
|
|
|
Revenue
|
$
|
366,484
|
$
|
164,463
|
Income from mine operations
|
$
|
147,820
|
$
|
44,783
|
Gross margin
(2)
|
40
%
|
27 %
|
Operating income
|
$
|
128,013
|
$
|
34,766
|
Net income
|
$
|
59,762
|
$
|
23,976
|
Net income attributable to equity holders of SSR Mining
|
$
|
52,980
|
$
|
23,976
|
Basic attributable net income per share
|
$
|
0.24
|
$
|
0.19
|
Adjusted attributable net income (1)
|
$
|
102,378
|
$
|
24,026
|
Adjusted basic attributable net income per share (1)
|
$
|
0.47
|
$
|
0.19
|
|
|
|
Cash generated by operating activities
|
$
|
145,221
|
$
|
64,136
|
Cash used in investing activities
|
$
|
(68,053)
|
$
|
(49,361)
|
Cash used in financing activities
|
$
|
(71,788)
|
$
|
(119,447)
|
|
|
|
Operating Results
|
|
|
Gold produced (oz)
|
170,149
|
87,968
|
Gold sold (oz)
|
173,370
|
85,742
|
Silver produced ('000 oz)
|
1,792
|
1,770
|
Silver sold ('000 oz)
|
2,038
|
1,834
|
Lead produced ('000 lb) (4)
|
6,164
|
5,536
|
Lead sold ('000 lb) (4)
|
6,432
|
6,407
|
Zinc produced ('000 lb) (4)
|
3,079
|
1,821
|
Zinc sold ('000 lb) (4)
|
956
|
2,166
|
|
|
|
Gold equivalent produced (oz) (5)
|
196,094
|
107,331
|
Gold equivalent sold (oz) (5)
|
201,494
|
104,715
|
|
|
|
Average realized gold price ($/oz sold)
|
$
|
1,798
|
$
|
1,597
|
Average realized silver price ($/oz sold)
|
$
|
26.02
|
$
|
17.47
|
|
|
|
Cash cost per
gold equivalent
ounce sold (1, 5)
|
$
|
665
|
$
|
824
|
AISC per
gold equivalent
ounce sold (1, 5)
|
$
|
1,004
|
$
|
1,261
|
|
|
|
Financial Position
|
March 31,
2021
|
December 31, 2020
|
Cash and cash equivalents
|
$
|
866,029
|
$
|
860,637
|
Current assets
|
$
|
1,438,393
|
$
|
1,424,522
|
Total assets
|
$
|
5,273,127
|
$
|
5,244,986
|
Current liabilities
|
$
|
238,404
|
$
|
248,933
|
Total liabilities
|
$
|
1,308,124
|
$
|
1,305,083
|
Working capital (3)
|
$
|
1,199,989
|
$
|
1,175,589
|
|
|
(1)
|
The Company reports
non-GAAP financial measures including adjusted attributable net
income, adjusted basic attributable net income per share, cash
costs and AISC per ounce sold to manage and evaluate its operating
performance at its mines. See "Non-GAAP
Financial Measures" in Section 13.
|
(2)
|
Gross margin is defined as income from mine operations divided by revenue.
|
(3)
|
Working capital is defined as current assets less current liabilities.
|
(4)
|
Data for lead
production and sales relate only to lead in lead concentrate. Data
for zinc production and sales relate only to zinc in
zinc concentrate.
|
(5)
|
Gold equivalent
ounces have been established using the average realized metal
prices per ounce of precious metals sold in the period
and applied to the recovered silver metal content produced by
the mines. Zinc and lead production are not included in gold
equivalent ounces produced.
|
Management Discussion & Analysis and Conference Call
This news release should be read in conjunction with our
unaudited Condensed Consolidated Interim Financial Statements
and our MD&A as filed with the Canadian Securities
Administrators and available at
www.sedar.com or our website at www.ssrmining.com.
-
Conference call and webcast: Thursday, May 6, 2021, at 5:00 pm EST.
Toll-free in U.S. and Canada:
|
+1 (855) 327-6838
|
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 6703
|
All other callers:
|
+1 (412) 317-0088, replay code 6703
|
Dividend Declaration
The Board of Directors declared a quarterly cash dividend of
US$0.05 per common share, payable on
June 14, 2021 to holders of record at
the close of business on May 17,
2021. This dividend qualifies as an 'eligible dividend' for
Canadian income tax purposes.
The dividend payment applies to holders of SSR Mining's common
shares, which trade on the Toronto Stock Exchange and the
Nasdaq under the symbol SSRM, and to holders of its CHESS
Depositary Interests ("CDIs"), which trade on the Australian
Securities Exchange under the symbol SSR. Each CDI confers a
beneficial interest in one common share. Therefore, CDI
holders are entitled to a dividend calculated on the same basis as
the holders of SSR Mining's common shares.
SSR Mining has sought and been granted a temporary waiver of
certain of the ASX Settlement Operating Rules. Under the authority
of the waiver, the processing of conversions of common shares to
CDIs, or CDIs to common shares, lodged on or after May 14, 2021, will be deferred until after the
record date of May 17, 2021.
The key dates with respect to the dividend are as follows:
Last date for
processing requests to convert CDIs into common shares and to
convert
common shares into CDIs before the record date for the
dividend
|
May 13, 2021
|
|
|
CDIs trade on the ASX on an ex–dividend basis
|
May 14, 2021
|
|
|
Common shares trade on the TSX and Nasdaq on an ex–dividend basis
|
May 14, 2021
|
|
|
Record date for the dividend
|
May 17, 2021
|
|
|
Processing recommences for requests to convert CDIs into common shares and to convert
common shares into CDIs
|
May 18, 2021
|
|
|
Common share dividend payment date
|
June 14, 2021
(in Canada and
the United States)
|
|
|
Payment of dividend to CDI holders
|
June 15, 2021
(in Australia)
|
Payments to Canadian shareholders will be made in Canadian
dollars based on the exchange rate on the record date as reported
by the Bank of Canada. Payments to
other shareholders will be made in U.S. dollars. For CDI holders,
payments will be made in Australian dollars, and it is expected to
be based on the prevailing exchange rate sourced from the wholesale
foreign exchange market on or around 5 business days after the
record date.
About SSR Mining
SSR Mining Inc. is a leading, free cash flow focused gold
company with four producing assets located in the USA, Turkey,
Canada, and Argentina, combined with a global pipeline of
high-quality development and exploration assets in the USA, Turkey,
Mexico, Peru, and Canada. In 2020, the four operating assets
produced approximately 711,000 gold-equivalent ounces. SSR Mining
is listed under the ticker symbol SSRM on the NASDAQ and the TSX,
and SSR on the ASX.
SSR Mining Contacts:
F. Edward Farid, Executive Vice President, Chief Corporate Development Officer SSR Mining Inc.
E-Mail: invest@ssrmining.com
Phone: +1 (888) 338-0046 or +1 (604) 689-3846
To receive SSR Mining's news releases by e-mail, please
register using the SSR Mining website at
www.ssrmining.com.
Cautionary Note Regarding Forward-Looking Statements
Except for statements of historical fact relating to the
Company, certain statements contained in this press release
constitute forward-looking information, future oriented financial
information, or financial outlooks (collectively "forward-looking
information") within the meaning of Canadian securities laws.
Forward-looking information may be contained in this document and
the Company's other public filings. Forward-looking information
relates to statements concerning the Company's outlook and
anticipated events or results and in some cases, can be identified
by terminology such as "may", "will", "could", "should", "expect",
"plan", "anticipate", "believe", "intend", "estimate", "projects",
"predict", "potential", "continue" or other similar expressions
concerning matters that are not historical facts.
Forward-looking information and statements in this press
release are based on certain key expectations and assumptions made
by the Company. Although the Company believes that the expectations
and assumptions on which such forward-looking information and
statements are based are reasonable, undue reliance should not be
placed on the forward-looking information and statements because
the Company can give no assurance that they will prove to be
correct. Forward-looking information and statements are subject to
various risks and uncertainties which could cause actual results
and experience to differ materially from the anticipated results or
expectations expressed in this press release. The key risks and
uncertainties include, but are not limited to: local and global
political and economic conditions; governmental and regulatory
requirements and actions by governmental authorities, including
changes in government policy, government ownership requirements,
changes in environmental, tax and other laws or regulations and the
interpretation thereof; developments with respect to COVID-19
pandemic, including the duration, severity and scope of the
pandemic and potential impacts on mining operations; and other risk
factors detailed from time to time in the Company's reports filed
with the Canadian securities regulatory authorities.
Forward-looking information and statements in this press
release include statements concerning, among other things:
forecasts; outlook; timing of production; production, cost,
operating and capital expenditure guidance; the Company's intention
to return excess attributable free cash flow to shareholders; the
timing and implementation of the Company's dividend policy; the
implementation of any share buyback program and the amount thereof;
statements regarding plans or expectations for the declaration of
future dividends and the amount thereof; future cash costs and all
in sustaining costs ("AISC") per ounce of gold, silver and other
metals sold; the prices of gold, silver and other metals; Mineral
Resources, Mineral Reserves, realization of Mineral Reserves, and
the existence or realization of Mineral Resource estimates; the
Company's ability to discover new areas of mineralization; the
timing and extent of capital investment at the Company's
operations; the timing and extent of capitalized stripping at the
Company's operations; the timing of production and production
levels and the results of the Company's exploration and development
programs; current financial resources being sufficient to carry out
plans, commitments and business requirements for the next twelve
months; movements in commodity prices not impacting the value of
any financial instruments; estimated production rates for gold,
silver and other metals produced by the Company; the estimated cost
of sustaining capital; availability of sufficient financing;
receipt of regulatory approvals; the timing of studies,
announcements, and analysis; the timing of construction and
development of proposed mines and process facilities; ongoing or
future development plans and capital replacement; estimates of
expected or anticipated economic returns from the Company's mining
projects, including future sales of metals, concentrate or other
products produced by the Company and the timing thereof; the
Company's plans and expectations for its properties and operations;
and all other timing, exploration, development, operational,
financial, budgetary, economic, legal, social, environmental,
regulatory, and political matters that may influence or be
influenced by future events or conditions.
Such forward-looking information and statements are based on
a number of material factors and assumptions, including, but
not limited in any manner to, those disclosed in any other of
the Company's filings, and include: the inherent speculative nature
of exploration results; the ability to explore; communications
with local stakeholders; maintaining community and
governmental relations; status of negotiations and potential
transactions, including joint ventures; weather conditions at the
Company's operations; commodity prices; the ultimate
determination of and realization of Mineral Reserves; existence or
realization of Mineral Resources; the development approach;
availability and receipt of required approvals, titles, licenses
and permits; sufficient working capital to develop and operate
the mines and implement development plans; access to adequate
services and supplies; foreign currency exchange rates;
interest rates; access to capital markets and associated cost of
funds; availability of a qualified work force; ability to
negotiate, finalize, and execute relevant agreements; lack of
social opposition to the Company's mines or facilities; lack
of legal challenges with respect to the Company's properties; the
timing and amount of future production; the ability to meet
production, cost, and capital expenditure targets; timing and
ability to produce studies and analyses; capital and operating
expenditures; economic conditions; availability of sufficient
financing; the ultimate ability to mine, process, and
sell mineral products on economically favorable terms; and any
and all other timing, exploration, development, operational,
financial, budgetary, economic, legal, social, geopolitical,
regulatory and political factors that may influence future events
or conditions. While the Company considers these factors and
assumptions to be reasonable based on information currently
available to the Company, they may prove to be
incorrect.
Cautionary Note Regarding Forward-Looking Statements (continued)
The above list is not exhaustive of the factors that may
affect any of the Company's forward-looking statements and
information. You should not place undue reliance on forward-looking
information and statements. Forward-looking information and
statements are only predictions based on the Company's current
expectations and the Company's projections about future events.
Actual results may vary from such forward-looking information for a
variety of reasons including, but not limited to, risks and
uncertainties disclosed in the Company's filings on the Company's
website at www.ssrmining.com, on SEDAR at
www.sedar.com, on EDGAR at www.sec.gov and on
the ASX at www.asx.com.au and other unforeseen
events or circumstances. Other than as required by law, the Company
does not intend, and undertake no obligation to update any forward-
looking information to reflect, among other things, new information
or future events.
All references to "$" in this press release are to U.S. dollars unless otherwise stated.
Qualified Persons
Except as otherwise set out herein, the scientific and
technical information contained in this press release relating to
Çöpler has been reviewed and approved by Robert L. Clifford, BS (Mine Eng), SME Registered Member, and Dr.
Cengiz Y. Demirci, AIPG (CPG), each
of whom is a qualified person under NI 43-101 – Standards of
Disclosure for Mineral Projects ("NI 43-101"). Mr. Clifford is the
Company's Director, Mine Planning
(Turkey, Argentina), and Dr. Demirci is the Company's
Vice President, Exploration. The scientific and technical
information contained in this press release relating to Marigold
has been reviewed and approved by Greg
Gibson and James N. Carver,
each of whom is a SME Registered Member and a qualified person
under NI 43-101. Mr. Gibson is the Company's General Manager at
Marigold and Mr. Carver is the Company's Resource Development
Manager, USA. The scientific and
technical information contained in this press release relating to
Seabee has been reviewed and approved by Samuel Mah, P.Eng., and Jeffrey Kulas, P.Geo., each of whom is a
qualified person under NI 43-101. Mr. Mah is the Company's
Director, Mine Planning
(North America), and Mr. Kulas is
the Company's Resource Development Manager, Canada. The scientific and technical
information contained in this press release relating to Puna has
been reviewed and approved by Robert
Gill, P.Eng., and Karthik
Rathnam, MAusIMM (CP), each of whom is a qualified person
under NI 43-101. Mr. Gill is the Company's General Manager at Puna.
and Mr. Rathnam is the Company's Resource Manager,
Corporate.
Cautionary Note Regarding Mineral Reserves and Mineral Resources Estimates
This press 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 the SEC's rules that are
applicable to domestic United
States reporting companies. Consequently,
Mineral Reserves and Mineral Resources information included in
this press release may not be comparable to similar information
that would generally be disclosed by domestic U.S. reporting
companies subject to the reporting and disclosure requirements of
the SEC. Accordingly, information concerning mineral deposits
set forth herein may not be comparable with information made
public by companies that report in accordance with
U.S. standards.
Cautionary Note Regarding Non-GAAP Measures
This press 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
gold and silver sold, realized metal prices, earnings before
interest, taxes, depreciation and amortization ("EBITDA"), adjusted
attributable net income, adjusted basic attributable earnings per
share, consolidated cash and consolidated net cash. Non-GAAP
measures do not have any standardized meaning prescribed under IFRS
and, therefore, they may not be comparable to similar measures
employed by other companies. The Company believe that, in addition
to conventional measures prepared in accordance with IFRS, certain
investors use this information to evaluate the Company's
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. Readers should refer to the endnotes in this press release
for further information regarding how the Company calculates
certain of these measures. Readers should also refer to the
Company's management's discussion and analysis, available under the
Company's corporate profile at www.sedar.com or on the Company's
website at www.ssrmining.com, under the heading "Non-GAAP Financial
Measures" for a more detailed discussion of how the Company
calculates such measures and a reconciliation of certain measures
to GAAP terms.
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SOURCE SSR Mining Inc.