SSR Mining Reports Fourth Quarter and Year-End 2019 Results
News Release 20-06
February 20, 2020
SSR MINING REPORTS FOURTH QUARTER AND YEAR-END 2019 RESULTS
VANCOUVER, B.C. - SSR Mining Inc. (NASDAQ: SSRM) (TSX: SSRM) (“SSR Mining”) reports consolidated financial results for the fourth quarter and year ended December 31, 2019.
Paul Benson, President and CEO said, “SSR Mining had another successful year in 2019 as we continued our track record of achieving production and cost guidance for the eighth consecutive year. We delivered reserve growth at Marigold and resource growth at Seabee, which continue to support mine life extensions at both assets.
Looking ahead, 2020 consolidated production is forecast to grow to approximately 425,000 gold equivalent ounces. With over $500 million of cash and an outlook of increasing production and higher margins at today’s precious metal prices, we are well positioned to continue our track record of creating value for our shareholders."
Fourth Quarter and Year-End 2019 Highlights:
(All figures are in U.S. dollars unless otherwise noted)
- Achieved annual production and cost guidance: Achieved guidance for the eighth consecutive year by delivering gold equivalent production of 421,828 ounces at cash costs of $740 per payable gold equivalent ounce sold. (1)
- Continued our track record of Mineral Reserves and Resources growth: Successful exploration activities in 2019 increased gold Mineral Reserves at the Marigold mine to 3.9 million ounces. At the Seabee Gold Operation, gold Measured and Indicated Mineral Resources (inclusive of Mineral Reserves) increased to 1.1 million ounces and gold Inferred Mineral Resources increased to 583,000 ounces.
- Fourth consecutive year of positive earnings per share: Annual basic attributable income per share in 2019 was $0.47, an increase of 840% from 2018. Annual adjusted basic attributable income per share in 2019 was $0.81, a 252% increase from 2018. (1)
- Delivered record annual gold production at Seabee: The operation achieved its sixth consecutive annual production record, producing 112,137 ounces of gold, exceeding the top end of our annual guidance. Annual cash costs were $464 per payable ounce of gold sold. (1)
- Strong operating performance at Marigold: Delivered gold production of 59,186 ounces for the fourth quarter of 2019, resulting in annual production of 220,227 ounces of gold, marking
SSR Mining Inc. PHONE +1 604.689.3846 Suite 800 - 1055 Dunsmuir Street www.ssrmining.com TOLL FREE +1 888.338.0046 PO Box 49088 Vancouver, BC, Canada V7X 1G4 an annual production record and exceeding the top end of our annual guidance. Reported annual cash costs of $811 per payable ounce of gold sold. (1)
- Successful ramp-up of Puna: Produced 7.7 million ounces of silver in 2019 at annual cash costs of $10.38 per payable ounce of silver sold.(1) Strong fourth quarter results with production of 2.1 million ounces of silver and cash costs of $8.90 per payable ounce of silver sold (1), demonstrating operational improvements made through the year.
- Acquired 8,900 hectares contiguous to the Marigold mine: Prospective land package on trend with several zones of gold mineralization.
- Consolidated 100% ownership in Puna Operations: Completed acquisition of the remaining 25% interest in Puna Operations leading to an immediate increase in silver production and improved operational flexibility.
- Maintained strong liquidity and balance sheet: Cash balance increased to $504 million and the value of marketable securities increased to $66 million.
- Completed $230 million convertible notes offering: Issued $230 million aggregate principal amount of 2.50% unsecured convertible senior notes on March 19, 2019. A portion of the proceeds was used to repurchase $150 million of our outstanding $265 million 2.875% convertible notes.
- Published inaugural Sustainability Report: Report outlines our approach to sustainability and underscores our commitment to transparency with our stakeholders.
(1) We report the non-GAAP financial measures of cash costs per payable ounce of gold and silver sold and basic attributable income per share to manage and evaluate operating performance. See “Cautionary Note Regarding Non-GAAP Measures”.
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Marigold Mine, U.S.
| Three months ended December 31, September 30, June 30, March 31, Operating data 2019 2019 2019 2019 | Total 2019 2018 |
| Total material mined (kt) 18,457 19,033 19,254 17,295 Waste removed (kt) 11,736 12,676 12,185 11,767 Total ore stacked (kt) 6,721 6,357 7,070 5,528 Gold stacked grade (g/t) 0.36 0.51 0.38 0.34 Gold recovery (%) 76.0 77.0 75.0 73.0 Strip ratio 1.7 2.0 1.7 2.1 Mining cost ($/t mined) 1.83 1.73 1.65 1.73 Processing cost ($/t processed) 1.03 1.17 1.01 1.20 General and administrative cost ($/t processed) 0.54 0.54 0.47 0.54 Gold produced (oz) 59,186 52,968 54,922 53,151 Gold sold (oz) 61,088 50,650 59,702 55,517 Realized gold price ($/oz) (1) 1,478 1,481 1,309 1,303 Cash costs ($/oz) (1) 778 822 835 812 AISC ($/oz) (1) 1,117 1,104 986 930 Financial data ($000s) | 74,039 70,431 48,364 42,907 25,676 27,526 0.40 0.37 75.4 73.5 1.9 1.6 1.74 1.76 1.10 1.03 0.51 0.45 220,227 205,161 226,957 198,884 1,391 1,261 811 723 1,034 974 |
| Revenue 90,198 74,820 78,039 72,263 Income from mine operations 30,263 22,064 13,939 12,981 Capital expenditures (2) 17,768 10,496 6,924 3,167 Capitalized stripping 2,116 2,031 871 2,293 Exploration expenditures (3) 1,190 1,990 2,452 3,653 | 315,320 250,341 79,247 50,213 38,355 52,935 7,311 7,489 9,285 10,209 |
(1) We report the non-GAAP financial measures of realized gold price, cash costs and AISC per payable ounce of gold sold to manage and evaluate operating performance at the Marigold mine. For further information, please refer to “Cautionary Note Regarding Non-GAAP Measures”.
(2) Excludes capitalized exploration expenditures.
(3) Includes capitalized and expensed exploration expenditures.
Mine production
For the year ended December 31, 2019, the Marigold mine produced 220,227 ounces of gold, an increase of 7% compared to the 205,161 ounces of gold produced for the year ended 2018. For the year ended 2019, gold sales were 226,957 ounces as 2019 began with 6,300 ounces in finished goods inventory.
For the year ended December 31, 2019, total material mined was 74.0 million tonnes, a 5% increase as compared to the year ended 2018. During the year ended December 31, 2019, we
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mined 25.7 million ore tonnes, a 7% decrease from the previous year, offset by an 8% increase in gold stacked grade.
During the fourth quarter of 2019, 18.5 million tonnes of material were mined, a decrease of 3% compared to the third quarter of 2019, due to a long shovel move and variance to planned haulage cycles. A new leach pad cell was commissioned on schedule with material stacking commencing in the fourth quarter.
During the fourth quarter of 2019, we delivered approximately 6.7 million tonnes of ore to the heap leach pads at a gold grade of 0.36 g/t. This compares to 6.4 million tonnes of ore delivered to the heap leach pads at a gold grade of 0.51 g/t in the third quarter of 2019. Gold grade mined in the fourth quarter of 2019 was 29% lower than the prior quarter as primary ore deliveries from Mackay Phase 5 wound down and were replaced by lower grade material from Mackay Phase 4. The strip ratio declined to 1.7:1 in the fourth quarter of 2019, a decrease of 12% compared to the prior quarter.
During the fourth quarter of 2019, the Marigold mine produced 59,186 ounces of gold, a 12% increase compared to the prior quarter. The increase was due to higher-grade ore stacked during the third quarter of 2019, becoming available for production in the fourth quarter of 2019.
Mine operating costs
Cash costs and AISC per payable ounce of gold sold are non-GAAP financial measures. Please see “Cautionary Note Regarding Non-GAAP Measures”.
For the year ended December 31, 2019, cash costs per payable ounce of gold sold were $811, an increase of 12% compared to the year ended 2018, primarily due to higher leach pad opening inventory unit costs. Total mining costs of $1.74 per tonne for the year ended December 31, 2019 were consistent with the prior year primarily due to 5% higher tonnes mined, offset partially by 4% higher total mining costs. Processing and general and administrative unit costs were higher for the year ended December 31, 2019 compared to the prior year mainly due to 7% fewer ore tonnes mined. Total processing costs for the year ended December 31, 2019 were consistent with total processing costs for the year ended 2018, while general and administrative costs increased 7% primarily due to higher labor costs.
For the year ended December 31, 2019, AISC per payable ounce of gold sold was $1,034 compared to $974 for the year ended December 31, 2018, primarily due to the higher cash costs referred to above, offset partially by an increase in the number of ounces sold.
In the fourth quarter of 2019, cash costs per payable ounce of gold sold were $778, a decrease of 5% compared to the previous quarter primarily due to lower leach pad opening inventory unit costs in the fourth quarter resulting from higher grades mined in the third quarter. Total mining costs of $1.83 per tonne in the fourth quarter of 2019 were 6% higher than the previous quarter due to 3% fewer tonnes mined and 3% higher total mining costs. Total mining costs were higher in the fourth quarter of 2019 mainly due to the timing of haul truck tire replacements. Processing unit costs were 12% lower in the fourth quarter of 2019 compared to the previous quarter mainly due to 6% higher ore tonnes mined and 7% lower total processing costs. Total processing costs were lower in the fourth quarter of 2019 mainly due to lower cyanide consumption and lower power unit rates. General and administrative unit costs in the fourth quarter of 2019 were consistent with the previous quarter as higher ore tonnes mined were offset by higher labor costs.
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In the fourth quarter of 2019, AISC per payable ounce of gold sold was $1,117 compared to $1,104 in the third quarter of 2019 due to higher planned sustaining capital expenditures, primarily related to the purchase of a PC7000 Komatsu shovel during the quarter for approximately $10.6 million.
Mine sales
Realized gold price is a non-GAAP financial measure. Please see “Cautionary Note Regarding Non-GAAP Measures”.
For the year ended December 31, 2019, we sold 226,957 ounces of gold, a 14% increase compared to sales of 198,884 ounces of gold during the prior year. We realized an average gold price of $1,391 per ounce during the year ended December 31, 2019, compared to an average realized gold price of $1,261 per ounce during the year ended December 31, 2018.
In the fourth quarter of 2019, we sold 61,088 ounces of gold, a 21% increase compared to sales of 50,650 ounces of gold in the third quarter of 2019. We realized an average gold price of $1,478 per ounce during the fourth quarter of 2019, compared to an average realized gold price of $1,481 per ounce during the third quarter of 2019.
Exploration
The main focus of the 2019 exploration program at Marigold was to convert Red Dot Mineral Resources into Mineral Reserves. During previous quarters, we conducted exploration drilling for additional Mineral Resources along areas that were north and south of Red Dot, within the Mackay pit and on Valmy target areas such as Crossfire and East Basalt. During the fourth quarter of 2019, we completed a total of 64 reverse circulation ("RC") drill holes for 20,682 meters on these targets.
During the year ended December 31, 2019, our Red Dot exploration program focused on geotechnical drilling and engineering with the goal of declaring additional Mineral Reserves. In the fourth quarter of 2019, we completed the second phase of confirmation drilling, which included nine core holes for 3,700 meters. Based on the results of these evaluations, we converted Mineral Resources to Mineral Reserves and Red Dot is anticipated to extend the Marigold mine life into the early 2030s, without requiring expansion of the haul fleet or the associated expansion capital.
Exploration at Marigold for the year ended December 31, 2019 was successful in replacing mined depletion and growing Mineral Reserves compared to the year ended December 31, 2018. Including leach pad inventory, year-over-year Probable Mineral Reserves increased by 18%. At the same time, Indicated Mineral Resources (inclusive of Mineral Reserves and leach pad inventory) decreased by 11% due to depletion and model changes. Inferred Mineral Resources declined by 55% to 0.18 million gold ounces (16.2 million tonnes at an average gold grade of 0.35 g/t). Please see the section “Mineral Reserves and Mineral Resources” for more detail on our Mineral Reserves and Mineral Resources.
During the fourth quarter of 2019, we completed 20,825 meters of drilling in 64 RC drill holes at Trenton Canyon. RC drilling for the year amounted to 93,006 meters in 272 drill holes.
Following the exploration release of July 30, 2019, we received another 42 intercepts with gradethickness products exceeding 20 gram-meters. These results, in addition to earlier published drill assays, contribute to the Mineral Resources reported for the Marigold mine.
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For 2020, we are planning 64,000 meters of RC and core drilling for resource growth at Trenton Canyon, Valmy, East Basalt, Mackay, and on two recently acquired small land parcels internal to Marigold's mineral claims package. This work includes diamond drilling to explore for higher-grade sulphide hosted gold deposits between East Basalt and Trenton Canyon.
Seabee Gold Operation, Canada
| Three months ended December 31, September 30, June 30, March 31, Operating data 2019 2019 2019 2019 | Total 2019 2018 |
| Total ore milled (t) 87,394 77,465 88,424 90,756 Ore milled per day (t/day) 950 842 971 1,008 Gold mill feed grade (g/t) 7.89 12.39 9.83 8.59 Gold recovery (%) 97.9 98.8 98.4 97.2 Mining cost ($/t mined) 59 61 53 52 Processing cost ($/t processed) 29 28 35 28 General and administrative cost ($/t processed) 59 59 50 53 Gold produced (oz) 22,069 32,345 26,539 31,184 Gold sold (oz) (1) 24,362 28,278 24,276 27,999 Realized gold price ($/oz) (2) 1,484 1,480 1,329 1,302 Cash costs ($/oz) (2) 505 373 526 467 AISC ($/oz) (2) 751 715 828 947 Financial data ($000s) | 344,039 351,999 943 964 9.56 9.16 98.2 97.4 56 56 30 25 54 56 112,137 95,602 104,915 91,410 1,398 1,267 464 505 812 755 |
| Revenue 36,142 41,331 32,237 36,431 Income from mine operations 13,735 22,134 11,762 13,672 Capital expenditures 2,772 5,406 3,358 8,772 Capitalized development 3,312 3,352 3,345 3,379 Exploration expenditures (3) 1,210 2,131 2,257 3,172 | 146,141 115,655 61,303 30,783 20,308 7,054 13,388 9,074 8,770 9,298 |
(1) Beginning with the first quarter of 2018, the holder of the 3% net smelter return royalty elected to receive its royalty in-kind and we will no longer report these ounces within gold sold.
(2) We report the non-GAAP financial measures of realized gold price, cash costs and AISC per payable ounce of gold sold to manage and evaluate operating performance at the Seabee Gold Operation. See “Cautionary Note Regarding Non-GAAP Measures”.
(3) Includes capitalized and expensed exploration expenditures.
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Mine production
For the year ended December 31, 2019, the Seabee Gold Operation produced 112,137 ounces of gold, an annual production record and a 17% increase compared to the year ended December 31, 2018. The increase in gold production was mainly due to higher mill feed head grade, in addition to 1,244 ounces (on a gross basis) recovered from sludge, fines and cathodes during the third quarter of 2019.
For the year ended December 31, 2019, the operation milled 344,039 tonnes of ore, a decrease of 2% from the 351,999 tonnes milled during the year ended December 31, 2018. For the year ended December 31, 2019, the average gold mill feed grade was 9.56 g/t, a 4% increase compared to the prior year. The Santoy mine supplied 100% of ore milled, predominantly from long hole stopes.
In the fourth quarter of 2019, the operation produced 22,069 ounces of gold, a 32% decrease from the third quarter of 2019, mainly due to lower gold grades more than offsetting higher milling rates.
In the fourth quarter of 2019, the operation milled 87,394 tonnes of ore compared to 77,465 tonnes in the third quarter of 2019. The mill achieved an average throughput of 950 tonnes per day over the fourth quarter of 2019, a 13% increase compared to the previous quarter, mainly due to increased mill feed from the Santoy mine. During the fourth quarter of 2019, gold mill feed grade was 7.89 g/t, a 36% decrease compared to the third quarter of 2019, as a result of stope sequencing. Gold recovery for the fourth quarter of 2019 was 97.9%, consistent with the previous quarter.
Mine operating costs
Cash costs and AISC per payable ounce of gold sold are non-GAAP financial measures. Please see “Cautionary Note Regarding Non-GAAP Measures”.
For the year ended December 31, 2019, cash costs per payable ounce of gold sold were $464, 8% lower than the $505 for the year ended December 31, 2018. The decrease is due primarily to a 15% increase in ounces sold in 2019 as a result of the higher gold mill feed grade, offset partially by higher processing costs.
For the year ended December 31, 2019, AISC per payable ounce of gold sold was $812, 8% higher than the $755 for the year ended December 31, 2018. The increase is due to higher planned capital expenditures in 2019, related mainly to the Tailings Management Facility expansion, offset partially by the decrease in cash costs.
For the fourth quarter of 2019, cash costs per payable ounce of gold sold were $505, 35% higher than the $373 for the third quarter of 2019, due primarily to lower gold grade, 14% fewer ounces sold compared to the third quarter of 2019 and increases in total mining and general and administrative costs.
For the fourth quarter of 2019, AISC per payable ounce of gold sold was $751, compared to $715 in the third quarter of 2019 due to higher cash costs in conjunction with lower ounces sold in the fourth quarter of 2019, offset partially by lower sustaining capital expenditures.
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Realized gold price is a non-GAAP financial measure. Please see “Cautionary Note Regarding
For the year ended December 31, 2019, we sold 104,915 ounces of gold, a 15% increase compared to the 91,410 ounces of gold sold in during the prior year. We realized an average gold price of $1,398 per ounce during the year ended December 31, 2019 compared to an average realized gold price of $1,267 per ounce during the year ended December 31, 2018.
In the fourth quarter of 2019, we sold 24,362 ounces of gold, a decrease of 14% compared to the 28,278 ounces of gold sold in the third quarter of 2019. We realized an average gold price of $1,484 per ounce during the fourth quarter of 2019 compared to an average realized gold price of $1,480 per ounce during the third quarter of 2019.
Exploration
In 2019, exploration at Seabee focused on increasing and upgrading Mineral Resources near the Santoy mine through 68,000 meters of drilling from surface and underground. Specific targets included Santoy 8A and Santoy Gap and the recently discovered Inferred Mineral Resources at Gap Hanging Wall (“Gap HW”).
For the year ended December 31, 2019, Mineral Reserves decreased by 18%, due to mining depletion; however, the average gold grade is 11% higher compared to the year ended December 31, 2018. As of December 31, 2019, Measured and Indicated Mineral Resources (inclusive of Mineral Reserves) increased by 23% at an average gold grade of 10.61 g/t as a result of our exploration focus at Gap HW. As of December 31, 2019, Inferred Mineral Resources are 583,000 ounces (2.13 million tonnes at an average gold grade of 8.50 g/t), 21% higher compared to the year ended December 31, 2018, due to conversion and continued exploration activity at Gap HW. Gap HW is now a significant discovery for the Seabee Gold Operation and remains open on strike and at depth. Please see the section “Mineral Reserves and Mineral Resources” for more detail on our Mineral Reserves and Mineral Resources.
During the fourth quarter of 2019, Seabee Gold Operation completed 12,738 meters of underground drilling for a total of 68,158 meters for the year ended December 31, 2019 to convert and extend portions of Santoy 8A, Santoy Gap and Gap HW deposits. The majority of the drilled meters were targeting Gap HW.
For 2020, we are planning to drill 50,000 meters in the area of the Santoy mine and Gap HW as brownfield work, with another 37,000 meters of drilling on greenfield targets on tenures controlled by us. Additionally, we are planning 12,000 meters of greenfield drilling on the Fisher property.
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Puna Operations, Argentina
(amounts presented on a 100% basis)
Three months ended Total
| December 31, September 30, June 30, March 31, Operating data 2019 2019 2019 2019 | 2019 2018 |
| Total material mined (kt) (1) 3,244 3,116 3,304 2,618 Waste removed (kt) (1) 2,725 2,531 3,114 2,469 Strip ratio (1) 5.3 4.3 16.4 16.6 Ore milled (kt) 400 336 313 345 Silver mill feed grade (g/t) 174 165 160 235 Lead mill feed grade (%) (1) 0.99 0.81 0.71 1.07 Zinc mill feed grade (%) 0.63 0.60 0.46 0.46 Silver recovery (%) 95.1 93.5 92.4 91.7 Lead recovery (%) (1) 91.9 88.1 79.4 83.6 Zinc recovery (%) 54.3 49.3 48.1 47.3 Mining cost ($/t mined) (1) 2.62 2.76 2.33 2.74 Processing cost ($/t milled) 29.53 36.34 32.57 29.62 General and admin cost ($/t milled) 9.11 9.24 8.27 8.02 Silver produced ('000 oz) 2,132 1,664 1,486 2,392 Silver sold ('000 oz) 2,584 1,505 2,679 927 Lead produced ('000 lb) (2) 7,985 5,304 3,879 6,789 Lead sold ('000 lb) (2) 9,371 4,119 7,652 2,977 Zinc produced ('000 lb) (3) 3,007 2,206 1,539 1,640 Zinc sold ('000 lb) (3) 3,067 2,030 5,757 3,218 Realized silver price ($/oz) (4) 17.32 17.31 14.92 15.35 Cash costs ($/oz) (4) 8.90 14.22 9.80 9.94 AISC ($/oz) (4) 11.18 17.36 13.08 19.76 Financial Data ($000s) | 12,282 897 10,839 696 7.5 3.5 1,394 1,420 184 114 0.89 0.92 0.54 0.84 93.2 72.1 85.8 83.1 49.2 39.3 2.60 2.61 32.04 18.72 8.68 7.34 7,674 3,747 7,695 3,761 23,957 3,107 24,119 1,059 8,392 8,775 14,072 2,365 16.26 15.92 10.38 15.91 14.06 19.33 |
| Revenue 51,263 31,697 44,873 17,556 Income (loss) from mine operations 14,915 7,708 4,126 3,584 Capital expenditures (5) 2,134 1,782 1,157 1,543 Capitalized stripping 2,565 1,385 6,273 6,191 Exploration expenditures 492 229 65 1 | 145,389 54,679 30,333 (4,151) 6,616 9,680 16,414 — 787 462 |
(1) Data is for the period subsequent to December 1, 2018, the date upon which commercial production was declared at the Chinchillas mine.
(2) Data for lead production and sales relate only to lead in lead concentrate.
(3) Data for zinc production and sales relate only to zinc in zinc concentrate.
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(4) We report the non-GAAP financial measures of realized metal prices, cash costs and AISC per payable ounce of precious metal sold to manage and evaluate operating performance at Puna Operations. See “Cautionary Note Regarding Non-GAAP Measures”.
(5) Does not include exploration or development of the Chinchillas project or capitalized stripping.
Mine production
For the year ended December 31, 2019, Puna Operations produced a total of 7.7 million ounces of silver, 24.0 million pounds of lead and 8.4 million pounds of zinc. After declaring commercial production at the Chinchillas mine in December 2018, 2019 represented the first full year of Puna Operations milling Chinchillas open pit ore. During the year ended December 31, 2019, ore was milled at an average of 3,819 tonnes per day and contained an average silver grade of 184 g/t. The average silver recovery was 93.2%, a 29% improvement as compared to 2018 when the operation milled primarily low-grade stockpiled ore.
In the fourth quarter of 2019, silver production was 2.1 million ounces, an increase of 28% compared to the third quarter of 2019, due mainly to increased mill throughput and processing of higher-grade ore. During the fourth quarter of 2019, ore was milled at an average of 4,349 tonnes per day. Processed ore in the fourth quarter of 2019 contained an average silver grade of 174 g/t, a 5% increase compared to the third quarter of 2019. The average silver recovery in the fourth quarter of 2019 was 95.1% as mill performance continues to benefit from our Operational Excellence initiatives.
Mine operating costs
Cash costs and AISC per payable ounce of silver sold are non-GAAP financial measures. Please see “Cautionary Note Regarding Non-GAAP Measures”.
For the year ended December 31, 2019, cash costs per payable ounce of silver sold were $10.38, a decrease of 35% compared to the year ended December 31, 2018. The decrease is mainly due to increased production as the Chinchillas mine achieved steady state operations, driven by higher silver mill feed grades and recoveries, partially offset by higher unit processing costs, driven by a re-start of the zinc circuit in 2019, the pumping of tailings for in-pit disposal at the Pirquitas plant and higher ore haulage costs.
For the year ended December 31, 2019, AISC per payable ounce of silver sold was $14.06, a decrease of 27% compared to the year ended December 31, 2018. The decrease is mainly due to lower cash costs per payable ounce of silver sold, offset partially by higher capital expenditures, including capital stripping costs, of which the majority were incurred in the first half of 2019.
In the fourth quarter of 2019, cash costs per payable ounce of silver sold were $8.90, a decrease of 37% compared to the third quarter of 2019. The decrease is mainly due to lower per unit operating costs as a result of higher mill throughput and higher by-product credits during the fourth quarter of 2019, driven by higher production resulting from an increase in mill throughput, feed grades, and recoveries.
In the fourth quarter of 2019, AISC per payable ounce of silver sold was $11.18, a decrease of 36% compared to the third quarter of 2019. The decrease is mainly due to lower cash costs per payable ounce of silver sold, offset partially by higher capital expenditures, including capitalized stripping costs during the fourth quarter of 2019.
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Realized silver price is a non-GAAP financial measure. Please see “Cautionary Note Regarding
For the year ended December 31, 2019, silver sales totaled 7.7 million ounces, an increase of 105% compared to the year ended December 31, 2018. Lead sales totaled 24.1 million pounds and zinc sales totaled 14.1 million pounds. The increase in concentrate sales is mainly due to an increase in production, as 2019 represented the first full year of production at the Chinchillas mine. For the year ended December 31, 2019, realized silver price was $16.26 per ounce, an increase of 2% compared to the previous year.
In the fourth quarter of 2019, silver sales totaled 2.6 million ounces, an increase of 72% compared to the third quarter of 2019. Lead and zinc sales totaled 9.4 million pounds and 3.1 million pounds, respectively, representing increases of 128% and 51%, respectively, compared to the previous quarter. The increase in concentrate sales is mainly due to higher production in the fourth quarter of 2019, driven by higher throughput, feed grades, and recoveries, as well as the timing of concentrate sales.
Exploration
During the fourth quarter of 2019, we completed 2,074 meters of diamond drilling exploring the Granada target. The Granada target is the projected intersection of the north-dipping past producing historic Potosi vein and the south-dipping Cortaderas Breccia vein which hosts much of the current underground Mineral Resources at Pirquitas. We anticipate completing the drilling in 2020 and reporting these results in the first half of 2020.
Chinchillas Project, Argentina
The Chinchillas project was completed in the fourth quarter of 2019 with all project components handed over to operations. The project was completed for an investment of $75 million, approximately $6 million below approved budget.
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Outlook
This section provides management's production, cost, capital, exploration and development expenditure estimates for 2020. Cash costs per payable ounce of gold and silver sold are non- GAAP financial measures. Please see the "Cautionary Note Regarding Forward-Looking Statements" and "Cautionary Note Regarding Non-GAAP Measures".
For the full year 2020, we expect:
Seabee Gold Operating Guidance Marigold mine Operation Puna Operations
Gold Production oz 225,000 – 240,000 110,000 – 120,000 — Moz — — Silver Production 6.0 – 7.0 Mlb — — Lead Production 21.0 – 24.0 Zinc Production Mlb — — 7.0 – 9.0 Cash Costs per Payable Ounce Sold (1) $/oz 780 – 810 460 – 500 10.50 – 12.00 Capital Expenditures Sustaining $M 60 15 15 Growth $M — 5 6 Capitalized Stripping / Capitalized Development $M 20 12 12 Exploration Expenditures Sustaining $M 4 1 — Growth $M 8 11 1
(1) We report the non-GAAP financial measure of cash costs per payable ounce of gold and silver sold to manage and evaluate operating performance at our operations. See “Cautionary Note Regarding Non-GAAP Measures”.
In 2020, we expect to produce on a consolidated basis, at the midpoint of guidance, approximately 425,000 gold equivalent ounces at gold equivalent cash costs of $740 per payable ounce sold.
At the Marigold mine, gold production is expected to increase in 2020 compared to 2019. Marigold is well-positioned for another record production year as the mine benefits from an additional hydraulic loading unit purchased in 2019, expected to be commissioned in the first quarter of 2020, and continued operational efficiencies. Production is weighted toward the second half of the year as a result of mine sequencing and access to higher grade ore. Capital investments are expected to total $60 million, including $12 million for two replacement haul trucks and $15 million for an additional leach pad to be built in 2020. The continuous build of leach pad capacity will ensure the operation can maintain leach cycle times and gold recoveries at higher ore stacking rates. Capitalized stripping is expected to total $20 million with the majority incurred through the first three quarters of the year. Exploration expenditures totaling $12 million are expected to focus on drill programs at Mackay, Basalt, Valmy and Trenton Canyon with the goals of adding Mineral Reserves and defining additional Mineral Resources within these areas. Exploration expenditures include $2 million for drill testing Trenton Canyon’s sulphide targets.
At the Seabee Gold Operation, we expect to deliver another record gold production year in 2020 as we continue executing our plan of increasing mining rates to support higher sustained mill throughput. Production is weighted to the first half of the year due to access to higher grade ore. Cash costs are expected to remain low between $460 and $500 per payable ounce of gold sold. Sustaining capital investments remain focused on mining equipment and ventilation, with $5
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