SSR Mining Reports Fourth Quarter and Year-End 2017 Results
News Release 18-03
February 22, 2018
SSR MINING REPORTS FOURTH QUARTER AND YEAR-END 2017 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, 2017.
Paul Benson, President and CEO said, “2017 was another strong year for SSR Mining, generating $145 million of operating cash flow from more than 370,000 gold equivalent ounces of annual production. Our relentless focus on Operational Excellence has allowed us to meet or exceed our annual production and cost guidance for the sixth consecutive year, while our successful track record in exploration led to another year of reserve growth and mine life extension.”
“Looking ahead, 2018 is an exciting year for SSR Mining with the ramping up of the Chinchillas mine and continued growth in production at Seabee. Our current mine plans forecast consolidated production to rise by 27% from this year to over 410,000 gold equivalent ounces in 2021, and this is before we evaluate a potential expansion at Marigold, and any increase resulting from our investment in brownfields exploration. We are fully funded to achieve this growth with $460 million in cash at year-end, allowing us to continue creating value for our shareholders.”
Fourth Quarter and Year-End 2017 Highlights:
(All figures are in U.S. dollars unless otherwise noted)
- Strong financial performance: Generated cash from operations of $144.7 million in 2017 and increased our cash position by $132.7 million to $459.9 million. Generated net income of $71.5 million or $0.58 per share and adjusted net income of $40.1 million or $0.34 per share.
- Achieved annual production and cost guidance: Met or exceeded initial guidance for the sixth consecutive year by delivering gold equivalent production of over 370,000 ounces at cash costs of $703 and AISC of $972 per payable gold equivalent ounce sold in 2017.
- Continued our track record of Mineral Reserves increases at Marigold and Seabee: Successful exploration activities in 2017 increased gold Mineral Reserves, after depletion, at the Marigold mine by 350,000 ounces to 3.2 million ounces and at the Seabee Gold Operation by 80,000 ounces to 440,000 ounces, the latter at 21% higher average gold grade.
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- Delivered record annual gold production at Seabee: The mine achieved the highest annual production in its 27-year history, producing 83,998 ounces of gold in 2017, at the upper end of our upwardly revised annual guidance. Annual cash costs and AISC were $602 and $843 per payable ounce of gold sold, respectively.
- Strong production at Marigold: Delivered quarterly gold production of 52,768 ounces, 36% higher than the third quarter of 2017, resulting in annual production of 202,240 ounces of gold in 2017. Reported annual cash costs of $647 per payable ounce of gold sold, at the lower end of our improved guidance, and AISC of $896 per payable gold ounce sold.
- Exceeded annual production guidance at Puna Operations: Exceeded the upper end of our upwardly revised annual production guidance with 6.2 million ounces of silver produced, reflecting strong performance of stockpiles processed. Annual cash costs were $13.07 per payable silver ounce sold, at the lower end of annual guidance. Reported AISC of $14.30 per payable silver ounce sold.
- Extended Pirquitas operating life: Formed Puna Operations joint venture, extending the anticipated Pirquitas operating life by eight years. Received approval of the Environmental Impact Assessment for the Chinchillas project in 2017 with development activities now underway.
- Enhanced financial strength: Generated $36 million of cash in the fourth quarter of 2017, our ninth consecutive quarter of increasing cash for total liquidity of more than $640 million, including marketable securities and our revolving credit facility.
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Marigold Mine, U.S.
| Three months ended December 31, September 30, June 30, March 31, Operating data 2017 2017 2017 2017 | Total 2017 2016 |
| Total material mined (kt) 13,979 20,311 17,985 16,736 Waste removed (kt) 8,136 13,149 11,075 11,062 Total ore stacked (kt) 5,843 7,162 6,910 5,674 Strip ratio 1.4 1.8 1.6 1.9 Mining cost ($/t mined) 1.98 1.52 1.67 1.65 Gold stacked grade (g/t) 0.37 0.31 0.31 0.42 Processing cost ($/t processed) 1.08 0.89 0.82 0.89 Gold recovery (%) 74.0 72.0 73.0 74.0 General and admin costs ($/t processed) 0.51 0.40 0.42 0.52 Gold produced (oz) 52,768 38,699 55,558 55,215 Gold sold (oz) 51,420 38,818 57,426 52,528 Realized gold price ($/oz) (1) 1,269 1,270 1,265 1,214 Cash costs ($/oz) (1) 699 684 632 585 AISC ($/oz) (1) 1,001 979 833 799 Financial data ($000s) | 69,011 75,093 43,422 51,480 25,589 23,613 1.7 2.2 1.68 1.50 0.35 0.45 0.92 0.78 73.0 72.0 0.46 0.46 202,240 205,116 200,192 204,315 1,254 1,255 647 647 896 960 |
| Revenue 65,217 49,395 72,451 63,762 Income from mine operations 12,777 11,189 21,373 21,327 Capital expenditures 8,194 3,855 5,272 3,043 Capitalized stripping 5,712 6,056 4,350 6,745 Exploration expenditures (2) 1,208 1,130 1,538 1,024 | 250,825 256,817 66,666 80,672 20,364 30,531 22,863 32,624 4,900 5,120 |
(1) We report the non-GAAP financial measure of cash costs per payable ounce of gold sold, realized gold prices and all-in sustaining costs ("AISC") to manage and evaluate operating performance at the Marigold mine. For a better understanding and a reconciliation of these measures to cost of sales, as shown in our consolidated statements of comprehensive income, please see “Non-GAAP and Additional GAAP Financial Measures” in section 10 of our management's discussion and analysis for the year ended December 31, 2017 (“MD&A”).
(2) Includes capitalized and expensed exploration expenditures.
Mine production
In 2017, the Marigold mine produced 202,240 ounces of gold, achieving the upper end of our revised production guidance. This compares to 205,116 ounces of gold produced in 2016.
Material mined during the year totaled 69.0 million tonnes, 8% lower compared to the record tonnage moved in 2016, due to adverse weather conditions in the first quarter of 2017 and a lower mining rate in the fourth quarter as discussed below. The mine achieved a record 25.6 million tonnes of ore stacked on leach pads in 2017.
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During the fourth quarter of 2017, a total of 14.0 million tonnes of material were mined, down 31% from the third quarter due to planned maintenance of the rope shovel and operational shut-downs and interruptions resulting from the fatal incident in October. The operation focused on addressing the leaching constraints related to clay ore encountered in the second half of the year. Multiple actions were implemented resulting in improvement of the leach pad operation over the last three months of the year. A combination of ore blending, adding surfactants to reduce ponding and improving ripping practices have allowed solution application rates to return to normal and recovery rates to expected levels. This was reflected in the increased gold production in the fourth quarter.
Approximately 5.8 million tonnes of ore were delivered to the heap leach pads at a gold grade of 0.37 g/t during the fourth quarter. This compares to 7.2 million tonnes of ore delivered to the heap leach pads at a gold grade of 0.31 g/t in the third quarter. Gold grade mined in the fourth quarter was 19% higher than the third quarter due to mining deeper in the current phase of the Mackay pit. The strip ratio declined to 1.4:1 in the quarter, a 22% reduction compared to the previous quarter.
In the fourth quarter of 2017, the Marigold mine produced 52,768 ounces of gold, 36% higher than the previous quarter.
Mine operating costs
Cash costs and AISC per payable ounce of gold sold are non-GAAP financial measures. Please see “Cautionary Note Regarding Non-GAAP Measures”.
Cash costs, which include all costs of inventory, refining costs and royalties, of $699 per payable ounce of gold sold in the fourth quarter of 2017 were 2% higher than the previous quarter primarily due to higher production unit costs. Total mining costs of $1.98 per tonne in the fourth quarter of 2017 were 30% higher than in the previous quarter due to fewer tonnes mined for reasons described above. Processing and general and administrative unit costs were 21% and 28% higher, respectively, in the fourth quarter of 2017 than in the third quarter of 2017 due to lower tonnes mined and processed. Processing and general and administrative costs were comparable on an absolute basis in the current and preceding quarter while mining costs were lower. Cash costs of $647 per payable ounce of gold sold in 2017 were comparable to 2016, as we mined more ore tonnes which offset the lower ore grade.
AISC increased in the fourth quarter of 2017 to $1,001 per payable ounce of gold sold from $979 in the third quarter due to increased capital spending mostly related to mobile equipment and construction of a new leach pad expansion. AISC of $896 per payable ounce of gold sold in 2017 decreased from $960 in 2016, primarily due to lower capital investments and lower capitalized stripping.
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Mine sales
A total of 51,420 ounces of gold were sold at an average realized price of $1,269 per ounce during the fourth quarter of 2017, an increase of 32% from the 38,818 ounces of gold sold at an average realized price of $1,270 per ounce during the third quarter of 2017. The increase in sales was a function of increased gold production. In 2017, gold sales decreased marginally and totaled 200,192 ounces, compared to 204,315 ounces in 2016.
Exploration
Exploration at Marigold in 2017 was successful with significant growth in Mineral Reserves and Resources compared to the end of 2016. Mineral Reserves, after depletion, increased by 12% to total 3.2 million gold ounces and Measured and Indicated Mineral Resources (inclusive of Mineral Reserves) increased by 10% to 5.7 million gold ounces.
Exploration during the fourth quarter of 2017 targeted growth of Mineral Reserves and Resources proximal to, and within, planned open pits. During the quarter we completed 16,000 meters of drilling in 50 reverse circulation ("RC") holes at the Mackay pit and within the Red Dot area. Drilling was also completed in East Basalt, Valmy and the Showdown target. RC drilling for the year totaled 54,814 meters in 188 RC holes with one core hole completed over 1,128 meters.
Initial exploration of the Showdown target area during the fourth quarter, yielded several encouraging intervals of shallow low grade gold mineralization between the East Basalt deposit and the Valmy deposits that is outside the current Mineral Resource estimate. The known zone of mineralization has been extended below and east of the current resource pit at East Basalt based on drill results.
Positive results were received within the Mineral Resource portions of the Red Dot deposit. This drilling is expected to be beneficial in converting areas of Inferred Mineral Resources to Indicated Mineral Resources where the current drill spacing required additional data. This drilling has, to date, confirmed the geologic interpretation.
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Seabee Gold Operation, Canada
| Three months ended Operating data December 31, September 30, June 30, March 31, 2017 2017 2017 2017 | Total Period from Acquisition to December 2017 31, 2016 (1) |
| Total ore milled (t) 89,237 84,315 84,469 72,394 Ore milled per day (t/day) 970 916 928 804 Gold mill feed grade (g/t) 8.89 7.03 7.97 9.22 Mining costs ($/t mined) 66 74 60 68 Processing costs ($/t processed) 24 22 20 23 Gold recovery (%) 97.4 97.2 97.3 97.7 General and admin costs ($/t processed) 61 53 50 59 Gold produced (oz) 24,227 18,058 20,690 21,023 Gold sold (oz) 23,969 21,798 17,909 22,411 Realized gold price ($/oz) (2) 1,276 1,269 1,257 1,233 Cash costs ($/oz) (2,3) 605 634 592 574 AISC ($/oz) (2,3) 776 775 831 990 Financial data ($000s) | 330,415 186,138 905 870 8.25 7.44 68 65 23 20 97.4 96.7 54 43 83,998 46,574 86,087 50,446 1,259 1,271 602 639 843 823 |
| Revenue 30,571 27,652 22,502 27,609 Income from mine operations 2,923 3,643 4,083 4,995 Capital expenditures 920 799 711 4,760 Capitalized development 2,301 1,314 2,165 2,514 Exploration expenditures (4) 1,187 1,253 1,566 1,953 | 108,334 64,826 15,644 8,206 7,190 1,926 8,294 5,377 5,959 2,152 |
(1) The data presented in this column is for the period from May 31, 2016, to December 31, 2016, the period for which we were entitled to all economic benefits of the Seabee Gold Operation following our acquisition of Claude Resources Inc. ("Claude Resources").
(2) We report the non-GAAP financial measures of realized gold prices, cash costs and AISC per payable ounce of gold sold to manage and evaluate operating performance at the Seabee Gold Operation. For a better understanding and a reconciliation of these measures to cost of sales, as shown in our consolidated statements of comprehensive income, please see “Non-GAAP and Additional GAAP Financial Measures” in section 10 of our MD&A.
(3) The non-GAAP financial measure of cash costs per payable ounce of gold sold from the Seabee Gold Operation in 2016 was adjusted to eliminate the adjustment of inventory to fair value as at the date of our acquisition of Claude Resources.
(4) Includes capitalized and expensed exploration expenditures.
Mine production
The Seabee Gold Operation produced 83,998 ounces of gold in 2017, marking record annual production in its 27-year history, resulting from an improved milling rate and higher gold grades.
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In 2017, the operation milled 330,415 tonnes of ore, another operating record, due largely to our ongoing Operational Excellence initiatives. During the year, average gold mill feed grade was 8.25 g/t, 11% higher compared to the average gold grade milled in in the period from acquisition to December 31, 2016. The Santoy mine supplied 82% of ore milled, predominantly from long hole stopes, with the remaining ore sourced from the Seabee mine.
In the fourth quarter of 2017, the operation produced 24,227 ounces of gold, a 34% increase compared to the previous quarter and a quarterly record mainly due to record throughput and higher gold grades.
A record 89,237 tonnes of ore were milled during the fourth quarter at an average gold grade of 8.89 g/t and recovery of 97.4%. This compares to a total of 84,315 tonnes of ore milled at an average gold grade of 7.03 g/t and recovery of 97.2% in the third quarter of 2017. During the fourth quarter, the mill maintained a higher throughput of 970 tonnes per day, a record quarterly performance. The Santoy mine supplied approximately 72% of total ore milled in the fourth quarter of 2017, with the remainder sourced from the Seabee mine.
Mine operating costs
Cash costs and AISC per payable ounce of gold sold are non-GAAP financial measures. Please see “Cautionary Note Regarding Non-GAAP Measures”.
Cash costs per payable ounce of gold sold, which include all costs of inventory, refining costs and royalties, were $605 in the fourth quarter of 2017, lower than the $634 in the third quarter of 2017 due to higher production. Costs per tonne mined were $66 in the fourth quarter of 2017, 11% lower than in the previous quarter due to higher tonnes mined and more operating costs capitalized to underground development. Processing and general and administrative unit costs were higher by 9% and 15%, respectively, in the fourth quarter of 2017 compared to the third quarter of 2017, mainly due to the stronger CAD. Cash costs per payable ounce of gold sold in 2017 were $602, lower than the $639 per payable ounce sold in 2016, mainly due to higher gold mill feed grade.
AISC per payable ounce of gold sold were $776 in the fourth quarter of 2017, comparable to $775 in the third quarter, as lower cash costs was offset by higher underground capital development. In 2017, AISC per payable ounce of gold sold increased to $843 from $823 for the period from acquisition to December 31, 2016, due to higher underground capital development, capital expenditures and sustaining exploration, which was partially offset by higher ounces of gold sold.
Mine sales
A total of 23,969 ounces of gold were sold at an average realized price of $1,276 per ounce of gold during the fourth quarter of 2017. This compares to 21,798 ounces of gold sold in the third quarter of 2017 at an average realized price of $1,269 per ounce of gold. The increase in sales was a function of increased gold production. Gold sales totaled 86,087 ounces in 2017 compared
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to 50,446 ounces in 2016, with the increase mainly due to the shorter comparative period of seven months in 2016. Realized prices were marginally lower in 2017 than in 2016.
Exploration
For 2017, the Seabee Gold Operation undertook a program of underground and surface drilling with the objective of increasing and converting Mineral Resources to Mineral Reserves at Santoy and demonstrating the exploration potential of several drill-ready targets for discovery of mineralization to utilize nearby infrastructure. The success of these in-mine programs is reflected in the growth of Mineral Reserves after depletion reported at the end of 2017 compared to the end of 2016. Mineral Reserves increased by 21% to total 437,000 ounces and Measured and Indicated Mineral Resources (inclusive of Mineral Reserves) increased by 19% to 681,000 ounces of gold with gains realized at Santoy Gap and Santoy 8. Inferred Mineral Resources of 674,000 ounces increased by 34,000 ounces despite conversion.
During the fourth quarter of 2017, we completed 15,050 meters of underground diamond drilling for a total of 61,180 meters for the year to explore further the extensions to the Santoy 8A and Santoy Gap deposits. From surface, we completed 14,840 meters of drilling for the year exploring Carr, Herb Lake and another 10,506 meters exploring the upper reaches of Santoy Gap and Santoy 8A.
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Puna Operations, Argentina (75% interest)
(amounts presented on 100% basis unless otherwise stated)
Three months ended Total
| December 31, September 30, June 30, March 31, Operating data 2017 2017 2017 2017 | 2017 2016 |
| Ore milled (kt) 442 461 446 449 Silver mill feed grade (g/t) 125 153 185 145 Processing cost ($/t milled) 13.53 11.92 12.94 13.66 Silver recovery (%) 66.0 67.8 73.5 72.6 General and admin costs ($/t milled) 5.74 4.81 5.00 5.22 Silver produced ('000 oz) 1,169 1,541 1,947 1,520 Silver produced (attributable) ('000 oz) (1) 877 1,156 1,777 1,520 Silver sold ('000 oz) 820 2,076 1,655 1,443 Silver sold (attributable) ('000 oz) (1) 615 1,557 1,473 1,443 Realized silver price ($/oz) (2) 16.96 16.77 17.31 17.35 Cash costs ($/oz) (2,3) 16.36 12.76 12.15 12.68 AISC ($/oz) (2,3) 18.30 13.56 12.78 14.82 Financial Data ($000s) | 1,798 1,774 152 235 13.00 14.41 70.3 77.8 5.19 5.99 6,177 10,422 5,330 10,422 5,994 11,397 5,088 11,397 17.10 17.05 13.07 9.00 14.30 10.21 |
| Revenue 12,093 28,958 22,029 26,534 Income from mine operations 5,490 7,690 4,006 13,767 Capital expenditures (4) 917 1,006 420 2,261 Exploration expenditures (4) — — — — | 89,614 169,343 30,953 65,128 4,604 10,260 — 65 |
(1) Attributable production and sales figures for the third and fourth quarter of 2017 are on 75% attributable basis. Attributable production and sales for the second quarter of 2017 represent 100% for April and May 2017 and 75% for June 2017.
(2) We report the non-GAAP financial measures of cash costs per payable ounce of silver sold, realized silver prices and AISC to manage and evaluate operating performance at Puna Operations. For a better understanding and a reconciliation of these measures to cost of sales, as shown in our consolidated statements of income, please see “Non-GAAP and Additional GAAP Financial Measures” in section 10 of our MD&A.
(3) Cash costs and AISC per payable ounce of silver sold include stockpile inventory costs previously incurred of $5.30 for the three months ended December 31, 2017 (September 31, 2017 - $5.20, June 30, 2017 - $3.30, March 31, 2017 - $2.00) and $3.90 for the year ended December 31, 2017.
(4) Does not include exploration or development of the Chinchillas project.
Mine production
In 2017, the operation produced a total of 6.2 million ounces of silver, exceeding our increased annual production guidance. This was largely due to stockpile grades and metallurgical performance exceeding plan.
During the year, ore was milled at an average rate of 4,927 tonnes per day. Stockpile ore milled contained an average silver grade of 152 g/t, higher than planned. While the average silver recovery of 70.3% was lower than the previous year due to planned lower silver mill feed grade, it was above our planned recovery for the year.
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In the fourth quarter of 2017, silver production of 1.2 million ounces declined relative to the third quarter, as expected, due to processing lower grade stockpile ore.
During the fourth quarter, ore was milled at an average rate of 4,800 tonnes per day. Ore milled contained an average silver grade of 125 g/t, 18% lower than the 153 g/t reported in the third quarter of 2017 as we continue to process lower grade stockpiles. The average silver recovery in the fourth quarter was 66.0%.
Mine operating costs
Cash costs and AISC per payable ounce of silver sold are non-GAAP financial measures. Please see “Cautionary Note Regarding Non-GAAP Measures”.
Cash costs, which include cost of inventory, treatment and refining costs, provincial royalties and by-product credits, were $16.36 per payable ounce of silver sold in the fourth quarter of 2017, 28% higher than the $12.76 per payable ounce of silver sold in the third quarter of 2017 principally due to lower production resulting from lower silver grades of the stockpiled ore processed. In the fourth quarter of 2017, cash costs included approximately $5.30 per payable ounce of stockpile inventory costs that were previously incurred.
Cash costs per payable ounce of silver sold in 2017 increased, as anticipated, to $13.07 from $9.00 in 2016, as 2017 was impacted by the cessation of mining activities at the Pirquitas property in January, resulting in processing lower grade stockpiles for the remainder of the year.
| AISC per payable ounce of silver sold in the fourth quarter of | 2017 | were at | $18.30 | compared to | |||||
| $13.56 | in the third quarter | due to higher cash costs and lower volumes sold. AISC of $14.30 per | |||||||
| payable ounce of silver sold in | 2017 were higher than $10.21 per payable ounce of silver sold in and higher capital investments per ounce sold. | were higher than $10.21 per payable ounce of silver sold in | |||||||
| 2016 | due to higher cash costs |
Mine sales
Silver sales totaled 0.8 million ounces and attributable sales were 0.6 million in the fourth quarter of 2017, a 61% decrease from the third quarter of 2017, due to lower production in the fourth quarter of 2017 and timing of concentrate shipments which led to an increase in concentrate inventories. Silver sales for the year totaled 6.0 million ounces and attributable share of silver sales in 2017 was 5.1 million ounces. This compares to 11.4 million ounces of silver sold in 2016.
Exploration
There was no exploration activity at the Pirquitas property during 2017 as we focused on advancing the Chinchillas project.
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Chinchillas Project, Argentina
Since the initiation of development activities in June 2017, project execution is well underway with purchase commitments made for critical long lead equipment including a geodesic stockpile cover, tailings and reclaim water pumps, piping, pre-fabricated electrical rooms and all mining and supporting mobile equipment.
The Chinchillas mine Environmental Impact Assessment (“EIA”) approval was received in December 2017 including final negotiations on land leases and community commitments.
Construction contracts were issued for tender with negotiations underway and award expected through the first quarter of 2018. These contracts include concrete and earthworks and general electromechanical installation at Pirquitas, and infrastructure buildings at Chinchillas, including administration buildings, truck shop, diesel and explosives storage and distribution systems. The mine pre-stripping has been advanced with further detailed planning on pioneering activities. Prestripping and construction contractors are anticipated to mobilize in the first quarter of 2018 with delivery of ore to the Pirquitas mill in the second half of 2018.
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Other Projects
SIB project, Canada
We recently announced plans to continue with the exploration program committing to a $3.2 million drill program of approximately 10,000 meters planned for 2018. The SIB exploration project is located near the high-grade, past-producing Eskay Creek mine in northwest British Columbia. We hold a three-year option to acquire up to a 60% undivided interest in the project and have met the first year spending requirement of $2.9 million.
Outlook
This section of the news release provides management's production, cost, capital, exploration and development expenditure estimates for 2018. See "Cautionary Note Regarding Forward- Looking Statements."
For the full year 2018, we expect:
Seabee Gold Puna Operations Operating Guidance Marigold mine
Operation (75% interest)(4)
| Gold Production | oz 190,000 - 210,000 | 85,000 - 92,000 | — | |
| Silver Production | Moz | — | — | 3.0 - 4.4 |
| Silver Production (attributable) | Moz | — | — | 2.3 - 3.3 |
| Lead Production | Mlb | — | — | 7.0 - 12.5 |
| Lead Production (attributable) | Mlb | — | — | 5.3 - 9.4 |
| Zinc Production | Mlb | — | — | 5.5 - 7.5 |
| Zinc Production (attributable) | Mlb | — | — | 4.1 - 5.6 |
| Cash Cost per Payable Ounce Sold $/oz | 725 - 775 | 560 - 610 | 12.50 - 15.00 |
(1)
Sustaining Capital Expenditures (2) $M 35 10 10 Capitalized Stripping / Capitalized $M 15 9 10 Development Exploration Expenditures (3) $M 9 9 1
(1) We report the non-GAAP financial measure of cash costs per payable ounce of gold and silver sold to manage and evaluate operating performance at the Marigold mine, the Seabee Gold Operation and Puna Operations. See “Cautionary Note Regarding Non-GAAP Measures”.
(2) Sustaining capital expenditures for Puna Operations exclude initial capital expenditures related to the development of the Chinchillas project.
(3) Includes capitalized and expensed exploration expenditures.
(4) Shown on a 100% basis unless otherwise indicated.
On a consolidated basis, at the mid-point of guidance, we expect to produce 340,000 gold equivalent ounces in 2018 at gold equivalent cash costs of between $715 and $770 per ounce. On an attributable basis, we expect to produce 325,000 gold equivalent ounces in 2018 at gold equivalent cash costs of between $705 and $760 per ounce.
Marigold production is expected to remain at or near the levels achieved in 2017 as the mine benefits from sustaining higher mining rates and expanded leach pad infrastructure. Due to the ongoing positive operating performance, cash cost guidance of $725 to $775 per payable gold
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