SSR Mining Inc. (Nasdaq/TSX: SSRM, ASX: SSR) ("SSR Mining" or
the “Company") reports consolidated financial results for the third
quarter ended September 30, 2024, as well as an update on the
February 13, 2024 incident at the Ç�pler mine (the “Ç�pler
Incident” or the “Incident”).
�pler
Update
Following the �pler Incident, the Company focused on four key
priorities: (1) the recovery of our missing colleagues; (2)
containment of the Incident and remediation of the site; (3) the
investigation into the root cause of the Incident; and (4)
preparing for the restart of the �pler mine.
With respect to our missing colleagues, all nine individuals
have been recovered and returned to their families and we continue
to support the families and the community members impacted by the
�pler Incident.
All the planned containment infrastructure, including a grout
curtain, coffer dam, and buttress, as well as pumping systems and
the Sabırlı creek diversion, has been successfully installed and is
proving to be effective. Public statements from Turkish government
officials continue to reiterate that there has been no recordable
contamination to local soil, water or air in the sampling
locations.
In partnership with the Turkish authorities, the Company has
continued to progress the remediation at the site. To date, over 16
million tonnes (approximately 86%) of the displaced heap leach
material has been moved to temporary storage locations, including
substantially all the displaced material from the Sabırlı Valley.
As part of the remediation work, the heap leach pad will be
permanently closed, and heap leach processing will no longer take
place at �pler. We are continuing discussions with Turkish
government officials around the final remediation plan, including
the approval and construction of the east storage facility, which
will permanently store the displaced material.
The �pler remediation and containment work is estimated to cost
between $250.0 to $300.0 million and take a total of 24 to 36
months to complete. In the third quarter of 2024, $48.3 million was
spent on remediation activities at �pler, bringing total
remediation spend since April 1, 2024 to $103.3 million.
The initial design of the heap leach facility prepared prior to
commencing production in 2010, and each subsequent expansion
thereafter, was engineered, reviewed, and approved by independent,
third-party engineering firms. Throughout the various stages of
construction across the life of the heap leach facility,
third-party reviews were also conducted to ensure conformance with
the underlying engineering design parameters.
The investigations into the cause of the �pler Incident began
shortly after the event. The Company has commissioned independent
experts to review the design, construction, and operation of the
heap leach facility. To date, this review has not identified any
material non-conformance with the construction or operation of the
heap leach facility relative to the third-party engineered design
parameters.
SSR Mining continues to work closely with the relevant
authorities to advance the required permits for the restart of the
�pler mine. Once all necessary regulatory approvals, including the
operating permits, are reinstated, it is anticipated that initial
operations at �pler could restart within 20 days and would consist
of processing a combination of stockpiled ore and ore mined from
Çakmaktepe, while the remediation work continues.
As previously disclosed, in November 2023, prior to the �pler
Incident, a legal challenge was filed in a local court against the
Ç�pler mine’s environmental impact assessment, which was approved
in 2021 (the “2021 EIA”). On August 20, 2024, the local court
issued a decision cancelling the 2021 EIA due to insufficiencies in
the 2021 EIA approval process. The Turkish Ministry of Environment,
Urbanization and Climate Change, who had originally approved the
2021 EIA, has filed an appeal of the decision, and the Company has
filed a simultaneous intervener appeal as well. As previously
disclosed, with the cancellation of the 2021 EIA, the operating
guidelines at Ç�pler revert to those outlined in the Company’s
prior Environmental Impact Assessment, which was issued in 2014
(the “2014 EIA”). Among other operating considerations, the 2014
EIA prescribes a lower throughput rate for the sulfide plant
operations of 6,000 tonnes per day, as compared to 9,000 tonnes per
day under the 2021 EIA.
At this time, we are not able to estimate or predict when and
under what conditions we will resume operations at �pler.
Additionally, SSR Mining cannot, at this time, assess the entire
scope of the impact of operating under the 2014 EIA. SSR Mining
held $334.3 million in total cash at the end of the third quarter,
with total available liquidity of $834.0 million and expected
strong free cash flow generation from Marigold, Seabee and Puna in
the fourth quarter of 2024. SSR Mining remains well positioned to
continue remediation efforts ahead of a potential restart of
operations at �pler.
For additional information on the �pler Incident, including a
discussion of the associated risks, see the Company’s Annual Report
on Form 10-K for the year ended December 31, 2023 filed on February
27, 2024, as well as the Company’s Quarterly Reports on Form 10-Q
for the quarter ended March 31, 2024 filed on May 8, 2024, for the
quarter ended June 30, 2024 filed on July 31, 2024, and for the
quarter ended September 30, 2024 filed on November 6, 2024. Further
updates on the �pler Incident, as and when available, will
continue to be provided through press releases and posts to the
Company’s website.
Third Quarter 2024 Summary: (1) (All figures are in US
dollars unless otherwise noted)
- Operating results: Third quarter 2024 production was
97,429 gold equivalent ounces. In the third quarter of 2024,
operations at �pler remained suspended following the February 13,
2024 incident. Additionally, operations at Seabee were suspended on
August 21, 2024 due to forest fires in the vicinity of the mine.
Seabee successfully restarted operations on October 11, 2024.
Year-to-date, the Company produced 275,113 gold equivalent ounces
at a consolidated cost of sales of $1,312 per ounce and all-in
sustaining costs (“AISC”) of $1,886 per ounce. The Company’s
year-to-date AISC includes $49.2 million in cash care and
maintenance costs, or approximately $179 per gold equivalent ounce,
of which $41.5 million was incurred at �pler and $7.7 million was
incurred at Seabee.
- Financial results: Net income attributable to SSR Mining
shareholders in the third quarter of 2024 was $10.6 million, or
$0.05 per diluted share, including $29.8 million in care and
maintenance costs incurred at �pler and $9.6 million at Seabee.
Adjusted net income attributable to SSR Mining shareholders in the
third quarter of 2024 was $6.4 million, or $0.03 per diluted share,
after adjusting for items related to the �pler Incident and other
tax impacts. In the third quarter of 2024, operating cash flow was
$(1.3) million, and free cash flow was $(34.1) million.
- Cash and liquidity position: As of September 30, 2024,
the Company had a cash and cash equivalent balance of $334.3
million and total liquidity of $834.0 million inclusive of its
revolving credit facility and accompanying accordion feature. At
the end of the third quarter, the Company had no borrowings
outstanding under the revolving credit facility, exclusive of de
minimus letters of credit, and was in compliance with its
covenants.
- �pler remediation: As of September 30, 2024,
substantially all of the heap leach material displaced during the
February 13th incident had been removed from the Sabırlı Valley.
Remediation spend in the third quarter totaled $48.3 million,
bringing total remediation spend since April 1, 2024 to $103.3
million.
- Marigold operations: Gold production was 48,189 ounces
in the third quarter of 2024 at cost of sales of $1,573 per payable
ounce and AISC of $1,828 per payable ounce. Year-to-date, Marigold
produced 108,560 ounces of gold at cost of sales of $1,484 per
payable ounce and AISC of $1,749 per payable ounce. Marigold
remains on track for full-year 2024 production guidance of 155,000
to 175,000 ounces of gold. Reflecting increased royalty and
maintenance components costs the Company now expects full-year mine
site cost of sales of $1,450 to $1,480 per payable ounce and AISC
of $1,650 to $1,680 per payable ounce at Marigold in 2024.
- Seabee operations: Gold production was 10,252 ounces in
the third quarter of 2024, reflecting the temporary suspension of
operations at Seabee due to forest fires. Employees were cleared to
return to the site on September 23, 2024 and production restarted
on October 11, 2024. Third quarter cost of sales of $1,280 per
payable ounce and AISC of $2,301 per payable ounce reflected fewer
ounces sold and the inclusion of $7.7 million in cash care and
maintenance costs from the temporary suspension. Full-year 2024
production guidance for Seabee is now 65,000 to 70,000 ounces of
gold at mine site cost of sales of $1,135 to $1,165 per payable
ounce and AISC of $1,725 to $1,755 per payable ounce.
- Puna operations: Silver production was 2.9 million
ounces in the third quarter of 2024 at cost of sales of $16.06 per
payable ounce of silver and AISC of $15.37 per payable ounce of
silver. The average realized silver price for Puna sales in the
third quarter of 2024 was $30.05 per ounce, showcasing the mine’s
significant margins in the current silver price environment.
Quarterly process plant throughput averaged over 5,275 tonnes per
day, a second consecutive quarterly record for the mine.
Year-to-date, Puna produced 7.5 million ounces of silver at cost of
sales of $16.27 per payable ounce and AISC of $15.36 per payable
ounce. Reflecting higher throughputs and grades than originally
expected, full-year 2024 production guidance at Puna has been
increased to 10.0 to 10.5 million ounces of silver at unchanged
mine site cost of sales of $16.50 to $18.00 per payable ounce and
AISC of $14.75 to $16.25 per payable ounce.
- Hod Maden: During the third quarter of 2024, engineering
studies and site preparation activities continued as the Company
continues to advance the Hod Maden project through to a
construction decision. In the third quarter of 2024, approximately
$10.9 million were spent at Hod Maden. The Company will provide
guidance on its expected 2025 capital spend at Hod Maden with its
annual 2025 guidance.
(1)
The Company reports non-GAAP
financial measures including adjusted attributable net income,
adjusted attributable net income per share, cash provided by (used
in) operating activities before working capital adjustments, free
cash flow, free cash flow before changes in working capital, net
cash (debt), cash costs and AISC per ounce sold (a common measure
in the mining industry), to manage and evaluate its operating
performance at its mines. See "Cautionary Note Regarding Non-GAAP
Financial Measures" for an explanation of these financial measures
and a reconciliation of these financial measures to the most
comparable GAAP financial measures.
Financial and Operating Summary
A summary of the Company's consolidated financial and operating
results for the three and nine months ended September 30, 2024 and
September 30, 2023 are presented below:
(in thousands of US dollars, except per
share data)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
Financial Results
Revenue
$
257,356
$
385,390
$
672,431
$
1,001,030
Cost of sales
$
138,281
$
214,670
$
360,764
$
584,607
Operating income (loss)
$
9,037
$
77,465
$
(356,667
)
$
167,379
Net income (loss)
$
6,251
$
(7,245
)
$
(349,447
)
$
144,135
Net income (loss) attributable to SSR
Mining shareholders
$
10,557
$
15,159
$
(266,832
)
$
119,838
Basic net income (loss) per share
attributable to SSR Mining shareholders
$
0.05
$
0.07
$
(1.32
)
$
0.58
Diluted net income (loss) per share
attributable to SSR Mining shareholders
$
0.05
$
0.07
$
(1.32
)
$
0.57
Adjusted attributable net income (2)
$
6,360
$
53,040
$
36,325
$
149,417
Adjusted basic attributable net income per
share (2)
$
0.03
$
0.26
$
0.18
$
0.73
Adjusted diluted attributable net income
per share (2)
$
0.03
$
0.26
$
0.18
$
0.70
Cash provided by (used in) operating
activities
$
(1,349
)
$
135,256
$
(54,849
)
$
218,566
Cash provided by operating activities
before changes in working capital (2)
$
13,898
$
141,892
$
22,772
$
336,235
Cash used in investing activities
$
(35,094
)
$
(48,470
)
$
(103,556
)
$
(280,211
)
Cash provided by (used in) financing
activities
$
13,942
$
(46,672
)
$
4,610
$
(157,806
)
Operating Results
Gold produced (oz)
63,155
159,863
185,835
411,587
Gold sold (oz)
63,052
161,227
192,801
412,254
Silver produced ('000 oz)
2,885
2,645
7,531
6,930
Silver sold ('000 oz)
2,785
2,852
6,933
7,090
Lead produced ('000 lb) (3)
15,005
10,403
38,294
31,957
Lead sold ('000 lb) (3)
14,304
11,707
35,355
34,882
Zinc produced ('000 lb) (3)
878
1,577
2,954
5,805
Zinc sold ('000 lb) (3)
660
1,454
2,589
6,174
Gold equivalent produced (oz) (4)
97,429
192,195
275,113
495,668
Gold equivalent sold (oz) (4)
96,143
196,088
274,996
498,284
Average realized gold price ($/oz
sold)
$
2,531
$
1,913
$
2,281
$
1,925
Average realized silver price ($/oz
sold)
$
30.05
$
21.99
$
28.23
$
23.14
Cost of sales per gold equivalent ounce
sold (4)
$
1,438
$
1,095
$
1,312
$
1,173
Cash cost per gold equivalent ounce sold
(2,4)
$
1,312
$
1,046
$
1,198
$
1,114
AISC per gold equivalent ounce sold
(2,4,5)
$
2,065
$
1,289
$
1,886
$
1,516
Financial Position
September 30, 2024
December 31, 2023
Cash and cash equivalents
$
334,341
$
492,393
Current assets
$
996,469
$
1,196,476
Total assets
$
5,143,919
$
5,385,773
Current liabilities
$
254,895
$
170,573
Total liabilities
$
1,195,162
$
1,081,570
Working capital (6)
$
741,574
$
1,025,903
(2)
The Company reports non-GAAP
financial measures including adjusted attributable net income,
adjusted attributable net income per share, cash generated by
operating activities before changes in working capital, cash costs
and AISC per ounce sold to manage and evaluate its operating
performance at its mines. See “Non-GAAP Financial Measures” at the
end of this press release for an explanation of these financial
measures and a reconciliation of these financial measures to net
income (loss) attributable to SSR Mining shareholders, cost of
sales, and cash generated by operating activities, which are the
most comparable GAAP financial measures. Cost of sales excludes
depreciation, depletion, and amortization.
(3)
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.
(4)
Gold equivalent ounces are
calculated by multiplying the silver ounces by the ratio of the
silver price to the gold price, using the average London Bullion
Market Association (“LBMA”) prices for the period. The Company does
not include by-products in the gold equivalent ounce
calculations.
(5)
AISC include the cash component
of care and maintenance costs incurred during 2024. At �pler, cash
care and maintenance costs in the third quarter of 2024 and
year-to-date totaled $16.5 million and $41.5 million, respectively.
At Seabee, cash care and maintenance costs of $7.7 million were
incurred in the third quarter of 2024. These costs represent
approximately $252 per gold equivalent ounce sold in the third
quarter of 2024, or $179 per gold equivalent ounce over the
year-to-date.
(6)
Working capital is defined as
current assets less current liabilities.
Marigold, USA
Three Months Ended
September 30,
Nine Months Ended
September 30,
Operating Data
2024
2023
2024
2023
Gold produced (oz)
48,189
83,272
108,560
195,694
Gold sold (oz)
47,100
83,103
109,419
194,789
Ore mined (kt)
7,151
7,732
20,347
18,141
Waste removed (kt)
15,392
16,329
54,757
49,007
Total material mined (kt)
22,543
24,061
75,104
67,148
Strip ratio
2.2
2.1
2.7
2.7
Ore stacked (kt)
7,151
7,732
20,347
18,141
Gold grade stacked (g/t)
0.36
0.45
0.24
0.46
Average realized gold price ($/oz
sold)
$
2,546
$
1,908
$
2,351
$
1,923
Cost of sales costs ($/oz gold sold)
$
1,573
$
980
$
1,484
$
1,027
Cash costs ($/oz gold sold) (7)
$
1,575
$
981
$
1,486
$
1,029
AISC ($/oz gold sold) (7)
$
1,828
$
1,106
$
1,749
$
1,423
(7)
The Company reports the non-GAAP
financial measures of cash costs and AISC per ounce of gold sold to
manage and evaluate operating performance at Marigold. See
"Cautionary Note Regarding Non-GAAP Financial Measures" at the end
of this press release for an explanation of these financial
measures and a reconciliation to cost of sales, which are the
comparable GAAP financial measure. Cost of sales excludes
depreciation, depletion, and amortization.
For the three months ended September 30, 2024 and 2023, Marigold
produced 48,189 and 83,272 ounces of gold, respectively. For the
nine months ended September 30, 2024 and 2023, Marigold produced
108,560 and 195,694 ounces of gold, respectively. During the third
quarter of 2024, Marigold reported cost of sales of $1,573 per
payable ounce and AISC of $1,828 per payable ounce.
Marigold remains on track for full-year 2024 production guidance
of 155,000 to 175,000 ounces of gold. The Company now expects
full-year mine site cost of sales of $1,450 to $1,480 per payable
ounce and AISC of $1,650 to $1,680 per payable ounce at Marigold in
2024. Approximately 60% of the increase to AISC guidance is the
result of increased royalty costs reflecting a higher year-to-date
gold price against the Company’s initial forecasts. The remainder
of the cost increase is associated with higher than forecast costs
for components and parts utilized in equipment maintenance. These
cost pressures are expected to persist into 2025.
Seabee, Canada
Three Months Ended
September 30,
Nine Months Ended
September 30,
Operating Data
2024
2023
2024
2023
Gold produced (oz)
10,252
19,824
50,734
52,020
Gold sold (oz)
11,250
19,430
54,720
51,560
Ore mined (kt)
56
108
275
326
Ore milled (kt)
56
105
274
323
Gold mill feed grade (g/t)
6.10
6.17
6.01
5.29
Gold recovery (%)
95.9
96.5
96.0
96.5
Average realized gold price ($/oz
sold)
$
2,479
$
1,884
$
2,232
$
1,915
Cost of sales ($/oz gold sold)
$
1,280
$
1,026
$
1,025
$
1,192
Cash costs ($/oz gold sold) (8)
$
1,281
$
1,027
$
1,026
$
1,193
AISC ($/oz gold sold) (8)
$
2,301
$
1,382
$
1,655
$
1,742
(8)
The Company reports the non-GAAP
financial measures of cash costs and AISC per ounce of gold sold to
manage and evaluate operating performance at Seabee. See
"Cautionary Note Regarding Non-GAAP Financial Measures" at the end
of this press release for an explanation of these financial
measures and a reconciliation to cost of sales, which are the
comparable GAAP financial measure. Cost of sales excludes
depreciation, depletion, and amortization.
For the three months ended September 30, 2024 and 2023, Seabee
produced 10,252 and 19,824 ounces of gold, respectively. For the
nine months ended September 30, 2024 and 2023, Seabee produced
50,734 and 52,020 ounces of gold, respectively. On August 21, 2024,
operations at Seabee were suspended due to forest fires in the
vicinity of the mine. Production restarted on October 11, 2024.
During the third quarter of 2024, Seabee reported cost of sales of
$1,280 per payable ounce and AISC of $2,301 per payable ounce.
Third quarter AISC reflects $7.7 million in care and maintenance
expenses incurred during the temporary suspension of operations, or
approximately $685 per payable ounce. Year-to-date, the Company
reported cost of sales of $1,025 per payable ounce and AISC of
$1,655 per payable ounce, inclusive of approximately $141 per
payable ounce associated with the third quarter care and
maintenance costs.
As a result of the August 21 suspension, full-year 2024
production guidance for Seabee is now 65,000 to 70,000 ounces of
gold at mine site cost of sales of $1,135 to $1,165 per payable
ounce and AISC of $1,725 to $1,755 per payable ounce.
Puna, Argentina
Three Months Ended
September 30,
Nine Months Ended
September 30,
Operating Data
2024
2023
2024
2023
Silver produced ('000 oz)
2,885
2,645
7,531
6,930
Silver sold ('000 oz)
2,785
2,852
6,933
7,090
Lead produced ('000 lb)
15,005
10,403
38,294
31,957
Lead sold ('000 lb)
14,304
11,707
35,355
34,882
Zinc produced ('000 lb)
878
1,577
2,954
5,805
Zinc sold ('000 lb)
660
1,454
2,589
6,174
Gold equivalent sold ('000 oz) (9)
33,091
34,861
82,195
86,030
Ore mined (kt)
648
522
1,578
1,381
Waste removed (kt)
1,535
1,356
4,564
4,864
Total material mined (kt)
2,183
1,878
6,142
6,245
Strip ratio
2.4
2.6
2.9
3.5
Ore milled (kt)
486
445
1,372
1,278
Silver mill feed grade (g/t)
190.5
192.7
176.3
175.6
Lead mill feed grade (%)
1.46
1.14
1.33
1.21
Zinc mill feed grade (%)
0.19
0.32
0.21
0.37
Silver mill recovery (%)
97.0
96.0
96.8
96.0
Lead mill recovery (%)
96.0
93.4
95.3
93.8
Zinc mill recovery (%)
43.5
49.9
46.6
55.4
Average realized silver price ($/oz
sold)
$
30.05
$
21.99
$
28.23
$
23.14
Cost of sales ($/oz silver sold)
$
16.06
$
15.23
$
16.27
$
17.45
Cash costs ($/oz silver sold) (10)
$
11.66
$
12.33
$
11.71
$
13.57
AISC ($/oz silver sold) (10)
$
15.37
$
13.04
$
15.36
$
15.31
(9)
Gold equivalent ounces are
calculated multiplying the silver ounces by the ratio of the silver
price to the gold price, using the average LBMA prices for the
period. The Company does not include by-products in the gold
equivalent ounce calculations.
(10)
The Company reports the non-GAAP
financial measures of cash costs and AISC per ounce of silver sold
to manage and evaluate operating performance at Puna. See
"Cautionary Note Regarding Non-GAAP Financial Measures" at the end
of this press release for an explanation of these financial
measures and a reconciliation to cost of sales, which are the
comparable GAAP financial measure. Cost of sales excludes
depreciation, depletion, and amortization.
For the three months ended September 30, 2024 and 2023, Puna
produced 2.9 and 2.6 million ounces of silver, respectively with
the year-over-year increase primarily driven by more ore tonnes
milled. Quarterly process plant throughput averaged over 5,275
tonnes per day, a second consecutive quarterly record for the mine.
For the nine months ended September 30, 2024 and 2023, Puna
produced 7.5 and 6.9 million ounces of silver, respectively. During
the third quarter of 2024, Puna reported cost of sales of $16.06
per payable ounce and AISC of $15.37 per payable ounce.
Year-to-date, the Company reported cost of sales of $16.27 per
payable ounce and AISC of $15.36 per payable ounce.
Reflecting higher throughputs and grades than originally
expected, full-year 2024 production guidance at Puna has been
increased to 10.0 to 10.5 million ounces of silver at unchanged
mine site cost of sales of $16.50 to $18.00 per payable ounce and
AISC of $14.75 to $16.25 per payable ounce.
Ç�pler, Türkiye (amounts presented on 100% basis)
Operations at �pler were suspended following the �pler
Incident on February 13, 2024. During the suspension, care and
maintenance expense has been recorded which represents direct costs
not associated with the environmental reclamation and remediation
costs and depreciation.
Three Months Ended
September 30,
Nine Months Ended
September 30,
Operating Data
2024
2023
2024
2023
Gold produced (oz)
4,714
56,768
26,541
163,873
Gold sold (oz)
4,702
58,694
28,662
165,905
Ore mined (kt)
—
915
266
3,278
Waste removed (kt)
—
7,448
3,571
17,664
Total material mined (kt)
—
8,363
3,837
20,942
Strip ratio
—
8.1
13.4
5.4
Ore stacked (kt)
—
289
184
631
Gold grade stacked (g/t)
—
1.47
1.17
1.40
Ore milled (kt)
—
618
343
2,022
Gold mill feed grade (g/t)
—
2.92
2.39
2.56
Gold recovery (%)
—
85.1
78.9
87.2
Average realized gold price ($/oz
sold)
$
2,510
$
1,928
$
2,095
$
1,930
Cost of sales ($/oz gold sold)
$
1,073
$
1,190
$
1,028
$
1,202
Cash costs ($/oz gold sold) (11)
$
1,080
$
1,167
$
1,030
$
1,186
AISC ($/oz gold sold) (11)
$
5,266
$
1,378
$
2,959
$
1,397
(11)
The Company reports the non-GAAP
financial measures of cash costs and AISC per ounce of gold sold to
manage and evaluate operating performance at �pler. See
"Cautionary Note Regarding Non-GAAP Financial Measures" at the end
of this press release for an explanation of these financial
measures and a reconciliation to cost of sales, which are the
comparable GAAP financial measure. Cost of sales excludes
depreciation, depletion, and amortization.
Conference Call Information
This news release should be read in conjunction with the
Company’s Quarterly Report on Form 10-Q for the quarter ended
September 30, 2024, filed with the U.S. Securities and Exchange
Commission (the “SEC”) and available on the SEC website at
www.sec.gov or www.ssrmining.com.
- Conference call and webcast: Wednesday, November 6, 2024, at
5:00 pm EST.
Toll-free in U.S. and Canada:
+1 (844) 763-8274
All other callers:
+1 (412) 717-9224
Webcast:
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 9428896
All other callers:
+1 (412) 317-0088, replay code 9428896
About SSR Mining
SSR Mining is listed under the ticker symbol SSRM on the Nasdaq
and the TSX, and SSR on the ASX.
For more information, please visit www.ssrmining.com.
Cautionary Note Regarding Forward-Looking Information and
Statements:
Except for statements of historical fact relating to us, certain
statements contained in this news release (including information
incorporated by reference herein) constitute forward-looking
information, future oriented financial information, or financial
outlooks (collectively “forward-looking information”) within the
meaning of Section 27A of the Securities Act of 1933, as amended
(the “Securities Act”), and Section 21E of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”), and are intended to
be covered by the safe harbor provided for under these sections.
Forward-looking information may be contained in this document and
our other public filings. Forward-looking information relates to
statements concerning our outlook and anticipated events or results
and, in some cases, can be identified by terminology such as “may”,
“will”, “could”, “should”, “expect”, “plan”, “anticipate”,
“believe”, “intend”, “estimate”, “projects”, “predict”,
“potential”, “continue” or other similar expressions concerning
matters that are not historical facts, as well as statements
written in the future tense. When made, forward-looking statements
are based on information known to management at such time and/or
management’s good faith belief with respect to future events. Such
statements are subject to risks and uncertainties that could cause
actual performance or results to differ materially from those
expressed in the Company's forward-looking statements. Many of
these factors are beyond the Company's ability to control or
predict. Given these uncertainties, readers are cautioned not to
place undue reliance on forward-looking statements.
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 global pandemics, including the duration, severity
and scope of a pandemic and potential impacts on mining operations;
risks and uncertainties resulting from the incident at �pler
described in our Annual Report on Form 10-K for the year ended
December 31, 2023 and in our quarterly report on Form 10-Q for the
quarter end June 30, 2024 and for the quarter end September 30,
2024; and other risk factors detailed from time to time in our
reports filed with the Securities and Exchange Commission on EDGAR
at www.sec.gov the Canadian securities regulatory authorities on
SEDAR at www.sedarplus.ca and on our website at
www.ssrmining.com.
Forward-looking information and statements in this news release
include any statements concerning, among other things: all
information related to the Company’s Ç�pler operations, including
timelines, outlook, preliminary costs, remediation plans, and
possible restart plans; forecasts and outlook; preliminary cost
reporting in this document; timing, production, operating, cost,
and capital expenditure guidance; our operational and development
targets and catalysts and the impact of any suspensions on
operations; the results of any gold reconciliations; the ability to
discover additional ore; the generation of free cash flow and
payment of dividends; matters relating to proposed exploration;
communications with local stakeholders; maintaining community and
government relations; negotiations of joint ventures; negotiation
and completion of transactions; commodity prices; Mineral
Resources, Mineral Reserves, conversion of Mineral Resources,
realization of Mineral Reserves, and the existence or realization
of Mineral Resource estimates; the development approach; the timing
and amount of future production; the timing of studies,
announcements, and analysis; the timing of construction and
development of proposed mines and process facilities; capital and
operating expenditures; economic conditions; availability of
sufficient financing; exploration plans; receipt of regulatory
approvals; timing and impact surrounding suspension or interruption
of operations as a result of regulatory requirements or actions by
governmental authority; renewal of NCIB program; and any and all
other timing, exploration, development, operational, financial,
budgetary, economic, legal, social, environmental, regulatory, and
political matters that may influence or be influenced by future
events or conditions.
Such forward-looking information and statements are based on a
number of material factors and assumptions, including, but not
limited in any manner to, those disclosed in any other of our
filings on EDGAR and SEDAR, and include: any assumptions made in
respect of the Company’s Ç�pler operations; the inherent
speculative nature of exploration results; the ability to explore;
communications with local stakeholders; maintaining community and
governmental relations; status of negotiations of joint ventures;
weather conditions at our operations; commodity prices; the
ultimate determination of and realization of Mineral Reserves;
existence or realization of Mineral Resources; the development
approach; availability and receipt of required approvals, titles,
licenses and permits; sufficient working capital to develop and
operate the mines and implement development plans; access to
adequate services and supplies; foreign currency exchange rates;
interest rates; access to capital markets and associated cost of
funds; availability of a qualified work force; ability to
negotiate, finalize, and execute relevant agreements; lack of
social opposition to our mines or facilities; lack of legal
challenges with respect to our properties; the timing and amount of
future production; the ability to meet production, cost, and
capital expenditure targets; timing and ability to produce studies
and analyses; capital and operating expenditures; economic
conditions; availability of sufficient financing; the ultimate
ability to mine, process, and sell mineral products on economically
favorable terms; and any and all other timing, exploration,
development, operational, financial, budgetary, economic, legal,
social, geopolitical, regulatory and political factors that may
influence future events or conditions. While we consider these
factors and assumptions to be reasonable based on information
currently available to us, they may prove to be incorrect.
Such factors are not exhaustive of the factors that may affect
any of the Company’s forward-looking statements and information,
and such statements and information will not be updated to reflect
events or circumstances arising after the date of such statements
or to reflect the occurrence of anticipated or unanticipated
events. Forward-looking information and statements are only
predictions based on our current estimations and assumptions.
Actual results may vary materially from such forward-looking
information. Other than as required by law, we do not intend, and
undertake no obligation to update any forward-looking information
to reflect, among other things, new information or future events.
The information contained on, or that may be accessed through, our
website is not incorporated by reference into, and is not a part
of, this document.
Cautionary Note Regarding Non-GAAP Financial Measures
We have included certain non-GAAP financial measures to assist
in understanding the Company’s financial results. The non-GAAP
financial measures are employed by us to measure our operating and
economic performance and to assist in decision-making, as well as
to provide key performance information to senior management. We
believe that, in addition to conventional measures prepared in
accordance with GAAP, certain investors and other stakeholders will
find this information useful to evaluate our operating and
financial performance; however, these non-GAAP performance measures
– including total cash, total debt, net cash (debt), cash costs,
all-in sustaining costs (“AISC”) per ounce sold, adjusted net
income (loss) attributable to shareholders, cash generated by (used
in) operating activities before changes in working capital, free
cash flow, and free cash flow before changes in working capital –
do not have any standardized meaning. These performance measures
are intended to provide additional information and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with GAAP. Our definitions of
our non-GAAP financial measures may not be comparable to similarly
titled measures reported by other companies. These non-GAAP
measures should be read in conjunction with our consolidated
financial statements.
Non-GAAP Measure – Net Cash
(Debt)
Net cash (debt) are used by management and investors to measure
the Company's underlying operating performance. The Company
believes that net cash (debt) is a useful measure for shareholders
as it helps evaluate liquidity and available cash.
The following table provides a reconciliation of cash and cash
equivalents to net cash:
As of
(in thousands)
September 30, 2024
December 31, 2023
Cash and cash equivalents
$
334,341
$
492,393
Restricted cash
$
—
$
101
Total cash
$
334,341
$
492,494
Face value of 2019 convertible note
$
230,000
$
230,000
Other debt
$
—
$
920
Total debt
$
230,000
$
230,920
Net cash (debt)
$
104,341
$
261,574
In addition to net cash and net debt, the Company also uses
Total liquidity to measure its financial position. Total liquidity
is calculated as Cash and cash equivalents plus Restricted cash and
borrowing capacity under current revolving credit facilities,
including accordion features. As of September 30, 2024 and as of
December 31, 2023, the Company’s $400 million credit facility was
undrawn, with a $100 million accordion feature.
The following table provides a reconciliation of Cash and cash
equivalents to Total liquidity:
As of
(in thousands)
September 30, 2024
December 31, 2023
Cash and cash equivalents
$
334,341
$
492,393
Restricted cash
$
—
$
101
Total cash
$
334,341
$
492,494
Borrowing capacity on credit facility
$
400,000
$
400,000
Borrowing capacity on accordion feature of
credit facility
$
100,000
$
100,000
Total liquidity *
$
834,341
$
992,494
* Excludes $0.4 million in letters of
credit. Inclusive of these letters of credit, total liquidity is
$834.0 million
Non-GAAP Measure - Cash Costs and
AISC
Cash Costs and All-In Sustaining Costs (“AISC”) per payable
ounce of gold and respective unit cost measures are non-U.S. GAAP
metrics developed by the World Gold Council to provide transparency
into the costs associated with producing gold and provide a
standard for comparison across the industry. The World Gold Council
is a market development organization for the gold industry.
The Company uses cash costs per ounce of precious metals sold
and AISC per ounce of precious metals to monitor its operating
performance internally. The most directly comparable measure
prepared in accordance with GAAP is cost of sales. The Company
believes this measure provides investors and analysts with useful
information about its underlying cash costs of operations and the
impact of by-product credits on its cost structure. The Company
also believes it is a relevant metric used to understand its
operating profitability. When deriving the cost of sales associated
with an ounce of precious metal, the Company includes by-product
credits, which allows management and other stakeholders to assess
the net costs of gold and silver production.
AISC includes total cost of sales incurred at the Company's
mining operations, which forms the basis of cash costs.
Additionally, the Company includes sustaining capital expenditures,
sustaining mine-site exploration and evaluation costs, reclamation
cost accretion and amortization, and general and administrative
expenses. This measure seeks to reflect the ongoing cost of gold
and silver production from current operations; therefore, growth
capital is excluded. The Company determines sustaining capital to
be capital expenditures that are necessary to maintain current
production and execute the current mine plan. The Company
determines growth capital to be those payments used to develop new
operations or related to projects at existing operations where
those projects will materially benefit the operation.
The Company believes that AISC provides additional information
to management and stakeholders that provides visibility to better
define the total costs associated with production and better
understanding of the economics of the Company's operations and
performance compared to other producers.
In deriving the number of ounces of precious metal sold, the
Company considers the physical ounces available for sale after the
treatment and refining process, commonly referred to as payable
metal, as this is what is sold to third parties.
The following tables provide a reconciliation of Cost of sales
to Cash costs and AISC:
Three Months Ended September
30, 2024
(in thousands, unless otherwise noted)
�pler
Marigold
Seabee
Puna
Corporate
Total
Cost of sales (GAAP) (12)
$
5,047
$
74,106
$
14,404
$
44,724
$
—
$
138,281
By-product credits
$
—
$
(22
)
$
(12
)
$
(13,813
)
$
—
$
(13,847
)
Treatment and refining charges
$
33
$
119
$
22
$
1,577
$
—
$
1,751
Cash costs (non-GAAP)
$
5,080
$
74,203
$
14,414
$
32,488
$
—
$
126,185
Sustaining capital expenditures
$
2,678
$
10,413
$
3,078
$
4,928
$
—
$
21,097
Sustaining exploration and evaluation
expense
$
—
$
790
$
—
$
—
$
—
$
790
Care and maintenance (13)
$
16,507
$
—
$
7,713
$
—
$
—
$
24,220
Reclamation cost accretion and
amortization
$
493
$
680
$
678
$
5,388
$
—
$
7,239
General and administrative expense and
stock-based compensation expense
$
—
$
—
$
—
$
—
$
19,016
$
19,016
Total AISC (non-GAAP)
$
24,758
$
86,086
$
25,883
$
42,804
$
19,016
$
198,547
Gold sold (oz)
4,702
47,100
11,250
—
—
63,052
Silver sold (oz)
—
—
—
2,785,411
—
2,785,411
Gold equivalent sold (oz) (14)
4,702
47,100
11,250
33,091
—
96,143
Cost of sales per gold ounce sold
1,073
1,573
1,280
N/A
N/A
N/A
Cost of sales per silver ounce sold
N/A
N/A
N/A
16.06
N/A
N/A
Cost of sales per gold equivalent ounce
sold
1,073
1,573
1,280
1,352
N/A
1,438
Cash cost per gold ounce sold
1,080
1,575
1,281
N/A
N/A
N/A
Cash cost per silver ounce sold
N/A
N/A
N/A
11.66
N/A
N/A
Cash cost per gold equivalent ounce
sold
1,080
1,575
1,281
982
N/A
1,312
AISC per gold ounce sold
5,266
1,828
2,301
N/A
N/A
N/A
AISC per silver ounce sold
N/A
N/A
N/A
15.37
N/A
N/A
AISC per gold equivalent ounce sold
5,266
1,828
2,301
1,294
N/A
2,065
Three Months Ended September
30, 2023
(in thousands, unless otherwise noted)
�pler
Marigold
Seabee
Puna
Corporate
Total
Cost of sales (GAAP) (12)
$
69,830
$
81,464
$
19,939
$
43,437
$
—
$
214,670
By-product credits
$
(1,307
)
$
(26
)
$
(16
)
$
(12,987
)
$
—
$
(14,336
)
Treatment and refining charges
$
—
$
50
$
24
$
4,717
$
—
$
4,791
Cash costs (non-GAAP)
$
68,523
$
81,488
$
19,947
$
35,167
$
—
$
205,125
Sustaining capital expenditures
$
9,100
$
8,683
$
6,212
$
4,593
$
—
$
28,588
Sustaining exploration and evaluation
expense (15)
$
1,156
$
1,009
$
—
$
(3,371
)
$
—
$
(1,206
)
Reclamation cost accretion and
amortization
$
427
$
708
$
692
$
765
$
—
$
2,592
General and administrative expense and
stock-based compensation expense
$
1,668
$
—
$
—
$
43
$
15,853
$
17,564
Total AISC (non-GAAP)
$
80,874
$
91,888
$
26,851
$
37,197
$
15,853
$
252,663
Gold sold (oz)
58,694
83,103
19,430
—
—
161,227
Silver sold (oz)
—
—
—
2,852,065
—
2,852,065
Gold equivalent sold (oz) (14)
58,694
83,103
19,430
34,861
—
196,088
Cost of sales per gold ounce sold
1,190
980
1,026
N/A
N/A
N/A
Cost of sales per silver ounce sold
N/A
N/A
N/A
15.23
N/A
N/A
Cost of sales per gold equivalent ounce
sold
1,190
980
1,026
1,246
N/A
1,095
Cash cost per gold ounce sold
1,167
981
1,027
N/A
N/A
N/A
Cash cost per silver ounce sold
N/A
N/A
N/A
12.33
N/A
N/A
Cash cost per gold equivalent ounce
sold
1,167
981
1,027
1,009
N/A
1,046
AISC per gold ounce sold
1,378
1,106
1,382
N/A
N/A
N/A
AISC per silver ounce sold
N/A
N/A
N/A
13.04
N/A
N/A
AISC per gold equivalent ounce sold
1,378
1,106
1,382
1,067
N/A
1,289
(12)
Excludes depreciation, depletion,
and amortization.
(13)
Care and maintenance expense only
includes direct costs not associated with environmental reclamation
and remediation costs, as depreciation is not included in the
calculation of AISC.
(14)
Gold equivalent ounces are
calculated by multiplying the silver ounces by the ratio of the
silver price to the gold price, using the average LBMA prices for
the period. The Company does not include by-products in the gold
equivalent ounce calculations. Gold equivalent ounces sold may not
add based on amounts presented in this table due to rounding.
(15)
During the three months ended
September 30, 2023, the Company reclassified Sustaining exploration
and evaluation expense to Sustaining capital expenditures at Puna.
These costs had been appropriately capitalized in prior periods,
but had been reported as expense rather than capital in the AISC
table. The update to the presentation for these costs did not
impact the AISC per ounce calculation.
Nine Months Ended September
30, 2024
(in thousands, unless otherwise noted)
�pler
Marigold
Seabee
Puna
Corporate
Total
Cost of sales (GAAP) (16)
$
29,471
$
162,414
$
56,111
$
112,768
$
—
$
360,764
By-product credits
$
(345
)
$
(84
)
$
(51
)
$
(36,661
)
$
—
$
(37,141
)
Treatment and refining charges
$
384
$
266
$
102
$
5,097
$
—
$
5,849
Cash costs (non-GAAP)
$
29,510
$
162,596
$
56,162
$
81,204
$
—
$
329,472
Sustaining capital expenditures
$
12,368
$
25,150
$
24,184
$
11,837
$
—
$
73,539
Sustaining exploration and evaluation
expense
$
—
$
1,418
$
—
$
—
$
—
$
1,418
Care and maintenance (17)
$
41,468
$
—
$
7,713
$
—
$
—
$
49,181
Reclamation cost accretion and
amortization
$
1,472
$
2,221
$
2,526
$
13,463
$
—
$
19,682
General and administrative expense and
stock-based compensation expense
$
—
$
—
$
—
$
—
$
45,329
$
45,329
Total AISC (non-GAAP)
$
84,818
$
191,385
$
90,585
$
106,504
$
45,329
$
518,621
Gold sold (oz)
28,662
109,419
54,720
—
—
192,801
Silver sold (oz)
—
—
—
6,933,096
—
6,933,096
Gold equivalent sold (oz) (18)
28,662
109,419
54,720
82,195
—
274,996
Cost of sales per gold ounce sold
1,028
1,484
1,025
N/A
N/A
N/A
Cost of sales per silver ounce sold
N/A
N/A
N/A
16.27
N/A
N/A
Cost of sales per gold equivalent ounce
sold
1,028
1,484
1,025
1,372
N/A
1,312
Cash cost per gold ounce sold
1,030
1,486
1,026
N/A
N/A
N/A
Cash cost per silver ounce sold
N/A
N/A
N/A
11.71
N/A
N/A
Cash cost per gold equivalent ounce
sold
1,030
1,486
1,026
988
N/A
1,198
AISC per gold ounce sold
2,959
1,749
1,655
N/A
N/A
N/A
AISC per silver ounce sold
N/A
N/A
N/A
15.36
N/A
N/A
AISC per gold equivalent ounce sold
2,959
1,749
1,655
1,296
N/A
1,886
Nine Months Ended September
30, 2023
(in thousands, unless otherwise noted)
�pler
Marigold
Seabee
Puna
Corporate
Total
Cost of sales (GAAP) (16)
$
199,425
$
199,970
$
61,476
$
123,736
$
—
$
584,607
By-product credits
$
(2,674
)
$
(99
)
$
(41
)
$
(41,463
)
$
—
$
(44,277
)
Treatment and refining charges
$
—
$
509
$
73
$
13,964
$
—
$
14,546
Cash costs (non-GAAP)
$
196,751
$
200,380
$
61,508
$
96,237
$
—
$
554,876
Sustaining capital expenditures
$
26,313
$
73,994
$
26,220
$
9,900
$
—
$
136,427
Sustaining exploration and evaluation
expense
$
3,271
$
815
$
—
$
—
$
—
$
4,086
Reclamation cost accretion and
amortization
$
1,282
$
2,019
$
2,108
$
2,295
$
—
$
7,704
General and administrative expense and
stock-based compensation expense
$
4,095
$
—
$
—
$
132
$
48,139
$
52,366
Total AISC (non-GAAP)
$
231,712
$
277,208
$
89,836
$
108,564
$
48,139
$
755,459
Gold sold (oz)
165,905
194,789
51,560
—
—
412,254
Silver sold (oz)
—
—
—
7,090,205
—
7,090,205
Gold equivalent sold (oz) (18)
165,905
194,789
51,560
86,030
—
498,284
Cost of sales per gold ounce sold
1,202
1,027
1,192
N/A
N/A
N/A
Cost of sales per silver ounce sold
N/A
N/A
N/A
17.45
N/A
N/A
Cost of sales per gold equivalent ounce
sold
1,202
1,027
1,192
1,438
N/A
1,173
Cash cost per gold ounce sold
1,186
1,029
1,193
N/A
N/A
N/A
Cash cost per silver ounce sold
N/A
N/A
N/A
13.57
N/A
N/A
Cash cost per gold equivalent ounce
sold
1,186
1,029
1,193
1,119
N/A
1,114
AISC per gold ounce sold
1,397
1,423
1,742
N/A
N/A
N/A
AISC per silver ounce sold
N/A
N/A
N/A
15.31
N/A
N/A
AISC per gold equivalent ounce sold
1,397
1,423
1,742
1,262
N/A
1,516
(16)
Excludes depreciation, depletion,
and amortization.
(17)
Care and maintenance expense only
includes direct costs not associated with environmental reclamation
and remediation costs, as depreciation is not included in the
calculation of AISC.
(18)
Gold equivalent ounces are
calculated by multiplying the silver ounces by the ratio of the
silver price to the gold price, using the average LBMA prices for
the period. The Company does not include by-products in the gold
equivalent ounce calculations. Gold equivalent ounces sold may not
add based on amounts presented in this table due to rounding.
The following tables provide a reconciliation of cost of sales
to cash costs and AISC used in the calculation of 2024 cost
guidance for the Marigold, Seabee and Puna operations and corporate
office:
(2024 operating guidance) (19)
Marigold
Seabee
Puna
Corporate
Gold Production
koz
155 – 175
65 – 70
—
—
Silver Production
Moz
—
—
10.0 – 10.5
—
Gold Equivalent Production
koz
155 – 175
65 – 70
120 – 125
—
Gold Sold
koz
155 – 175
65 – 70
—
—
Silver Sold
Moz
—
—
10.0 – 10.5
—
Gold Equivalent Sold
koz
155 – 175
65 – 70
120 – 125
—
Cost of Sales (GAAP) (20)
$M
235 – 250
70 – 80
165 – 180
—
By-Product Credits + Treatment &
Refining Costs
$M
—
—
(45)
—
Cash Cost (non-GAAP) (21)
$M
235 – 250
70 – 80
120 – 135
—
Sustaining Capital Expenditures (22)
$M
37
40
17
—
Care & Maintenance
$M
—
8
—
—
Reclamation Cost Accretion &
Amortization
$M
3
3
13
—
General & Administrative
$M
—
—
—
60 – 65
All-In Sustaining Cost (non-GAAP) (21)
$M
275 – 290
121 – 131
150 – 165
60 – 65
Cost of Sales per Ounce (GAAP)
(20)
$/oz
1,450 – 1,480
1,135 – 1,165
16.50 – 18.00
—
Cash Cost per Ounce (non-GAAP)
(21)
$/oz
1,450 – 1,480
1,135 – 1,165
11.50 – 13.00
—
All-In Sustaining Cost per Ounce
(non-GAAP) (21)
$/oz
1,650 – 1,680
1,725 – 1,755
14.75 – 16.25
—
Growth Capital Expenditures
$M
1
2
—
—
Growth Exploration and Resource
Development Expenditures (23)
$M
9
15
10
4
Total Growth Capital
$M
10
17
10
4
(19)
Figures may not add due to
rounding.
(20)
Excludes depreciation, depletion,
and amortization.
(21)
SSR Mining reports the non-GAAP
financial measures of cash costs and AISC per payable ounce of gold
and silver sold to manage and evaluate operating performance at
Marigold, Seabee and Puna. AISC includes reclamation cost accretion
and amortization and certain lease payments.
(22)
Includes sustaining exploration
and evaluation expenditures.
(23)
All growth exploration and
resource development spend is expensed. Growth exploration includes
project studies and evaluation.
Non-GAAP Measure - Adjusted Attributable
Net Income (loss) and Adjusted Attributable Net Income (Loss) Per
Share
Adjusted attributable net income (loss) and adjusted
attributable net income (loss) per share are used by management to
measure the Company's underlying operating performance. We believe
this measure is also useful for shareholders to assess the
Company’s operating performance. The most directly comparable
financial measures prepared in accordance with GAAP are net income
(loss) attributable to SSR Mining shareholders and net income
(loss) per share attributable to SSR Mining shareholders. Adjusted
attributable net income (loss) is defined as net income (loss)
adjusted to exclude the after-tax impact of specific items that are
significant, but not reflective of the Company's underlying
operations, including the expected impacts of �pler Incident;
inflationary impacts on tax balances; transaction, integration; and
other non-recurring items.
The following table provides a reconciliation of Net income
(loss) attributable to SSR Mining shareholders to adjusted net
income (loss) attributable to SSR Mining shareholders:
(in thousands of US dollars, except per
share data)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
Net income (loss) attributable to SSR
Mining shareholders (GAAP)
$
10,557
$
15,159
$
(266,832
)
$
119,838
Interest saving on 2019 notes, net of
tax
$
—
$
—
$
—
$
3,693
Net income (loss) used in the calculation
of diluted net income per share
$
10,557
$
15,159
$
(266,832
)
$
123,531
Weighted-average shares used in the
calculation of net income (loss) and adjusted net income per
share
Basic
202,140
203,878
202,209
205,101
Diluted
202,447
203,878
202,209
217,902
Net income per share attributable to SSR
Mining shareholders (GAAP)
Basic
$
0.05
$
0.07
$
(1.32
)
$
0.58
Diluted
$
0.05
$
0.07
$
(1.32
)
$
0.57
Adjustments:
Artmin transaction and integration
costs
$
—
$
30
$
—
$
406
Effects of the �pler Incident (24)
$
(1,939
)
$
—
$
319,981
$
—
Impairment of long-lived and other assets
(25)
$
369
$
2,637
$
369
$
2,637
Change in fair value of marketable
securities
$
(330
)
$
555
$
(6,749
)
$
(565
)
Loss (gain) on sale of mineral properties,
plant and equipment
$
—
$
560
$
—
$
1,610
Income tax impact related to above
adjustments
$
187
$
(815
)
$
1,208
$
(785
)
Inflationary impacts on tax balances
$
(2,484
)
$
(1,631
)
$
(11,652
)
$
(12,371
)
Impact of income tax rate change in
Türkiye
$
—
$
37,170
$
—
$
37,170
Other tax adjustments (26)
$
—
$
(625
)
$
—
$
1,477
Adjusted net income attributable to SSR
Mining shareholders (Non-GAAP)
$
6,360
$
53,040
$
36,325
$
149,417
Adjusted net income per share attributable
to SSR Mining shareholders (Non-GAAP)
Basic
$
0.03
$
0.26
$
0.18
$
0.73
Diluted (27)
$
0.03
$
0.26
$
0.18
$
0.70
(24)
The effects of the �pler
Incident represent the following unusual and nonrecurring charges:
(1) reclamation costs of $9.0 million and remediation costs of
$209.3 million (amounts are presented net of pre-tax attributable
to non-controlling interest of $50.1 million); (2) impairment
charges of $91.4 million related to plans to permanently close the
heap leach pad (amount is presented net of pre-tax attributable to
non-controlling interest of $22.8 million); and (3) contingencies
and expenses of $10.3 million (amount is presented net of pre-tax
attributable to non-controlling interest of $2.6 million). Refer to
Note 3 to the Condensed Consolidated Financial Statements for
further details related to the impact of the �pler
Incident.
(25)
For the year ended
September 30, 2024, impairments of long-lived and other assets
are related to remote equipment damaged due to forest fires at
Seabee. For the year ended September 30, 2023, impairments of
long-lived and other assets represent non-cash write-downs of
various assets and materials and supplies inventories.
(26)
Represents charges related to a
one-time tax imposed by Türkiye to fund earthquake recovery
efforts, offset by a release of an uncertain tax position.
(27)
Adjusted net income (loss) per
diluted share attributable to SSR Mining shareholders is calculated
using diluted common shares, which are calculated in accordance
with GAAP. For the three months ended September 30, 2024, $1.2
million interest saving on 2019 Notes, net of tax, and potentially
dilutive shares of approximately 13.0 million were excluded from
the computation of diluted loss per common share attributable to
SSR Mining shareholders in the Condensed Consolidated Statement of
Operations as they were antidilutive. For the nine months ended
September 30, 2024, $3.7 million interest saving on 2019 Notes, net
of tax, and potentially dilutive shares of approximately 13.3
million were excluded from the computation of diluted loss per
common share attributable to SSR Mining shareholders in the
Condensed Consolidated Statement of Operations as they were
antidilutive. These interest savings and shares were excluded in
the computation of adjusted net income (loss) per diluted share
attributable to SSR Mining shareholders for the three and nine
months ended September 30, 2024 as they were antidilutive.
Non-GAAP Measure - Free Cash Flow, Cash
Flow from Operating Activities before Changes in Working Capital,
and Free Cash Flow before Changes in Working Capital
The Company uses free cash flow, cash flow from operating
activities before changes in working capital, and free cash flow
before changes in working capital to supplement information in its
condensed consolidated financial statements. The most directly
comparable financial measures prepared in accordance with GAAP is
cash provided by operating activities. The Company believes that in
addition to conventional measures prepared in accordance with US
GAAP, certain investors and analysts use this information to
evaluate the ability of the Company to generate cash flow after
capital investments and build the Company's cash resources. The
Company calculates free cash flow by deducting cash capital
spending from cash generated by operating activities. The Company
does not deduct payments made for business acquisitions.
The following table provides a reconciliation of cash provided
by operating activities to free cash flow:
(in thousands of US dollars, except per
share data)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
Cash provided by operating activities
(GAAP)
$
(1,349
)
$
135,256
$
(54,849
)
$
218,566
Expenditures on mineral properties, plant,
and equipment
$
(32,750
)
$
(47,456
)
$
(104,961
)
$
(164,633
)
Free cash flow (non-GAAP)
$
(34,099
)
$
87,800
$
(159,810
)
$
53,933
We also present operating cash flow before working capital
adjustments and free cash flow before working capital adjustments
as non-GAAP cash flow measures to supplement our operating cash
flow and free cash flow (non-GAAP) measures. We believe presenting
both operating cash flow and free cash flow before working capital
adjustments, which reflects an exclusion of net changes in
operating assets and liabilities, will be useful for investors
because it presents cash flow that is actually generated from the
continuing business. The Company calculates cash generated by (used
in) operating activities before changes in working capital by
adjusting cash generated by (used in) operating activities by the
net change in operating assets and liabilities. The Company also
calculates free cash flow before changes in working capital by
deducting cash capital spending from cash flow from operating
activities before changes in working capital.
The following table provides a reconciliation of cash provided
by operating activities to cash generated by (used in) operating
activities before changes in working capital, and free cash flow
before changes in working capital:
(in thousands of US dollars, except per
share data)
Three Months Ended
September 30,
Nine Months Ended
September 30,
2024
2023
2024
2023
Cash provided by (used in) operating
activities (GAAP)
$
(1,349
)
$
135,256
$
(54,849
)
$
218,566
Net change in operating assets and
liabilities
$
15,247
$
6,636
$
77,621
$
117,669
Cash provided by (used in) operating
activities before changes in working capital (non-GAAP)
$
13,898
$
141,892
$
22,772
$
336,235
Expenditures on mineral properties, plant,
and equipment
$
(32,750
)
$
(47,456
)
$
(104,961
)
$
(164,633
)
Free cash flow before changes in working
capital (non-GAAP)
$
(18,852
)
$
94,436
$
(82,189
)
$
171,602
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version on businesswire.com: https://www.businesswire.com/news/home/20241106464176/en/
E-Mail: invest@ssrmining.com Phone: +1 (888) 338-0046
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