SSR Mining Reports First Quarter 2018 Results
News Release 18-07
May 10, 2018
SSR MINING REPORTS FIRST QUARTER 2018 RESULTS
VANCOUVER, B.C. - SSR Mining Inc. (NASDAQ: SSRM) (TSX: SSRM) (“SSR Mining”) reports consolidated financial results for the first quarter ended March 31, 2018.
Paul Benson, President and CEO said, "We produced over 78,000 gold equivalent ounces with all three operations performing well during the quarter. Seabee had a standout quarter, with the lowest cash costs since we acquired the operation in 2016 and record mill throughput of more than 1,030 tonnes per day. With development at Chinchillas remaining on track for delivery in the second half of the year, and production at Seabee and Marigold ramping up through the year, our operating and financial performance positions us well for growth in 2018 and 2019."
First Quarter 2018 Highlights:
(All figures are in U.S. dollars unless otherwise noted)
- Solid financial performance: Produced 78,483 gold equivalent ounces at cash costs of $766 per payable ounce, generating operating cash flow of $11.0 million and adjusted attributable net income of $5.7 million or $0.05 per share.
- Record quarterly throughput at the Seabee Gold Operation: Continued to successfully ramp up mill throughput, operating at an average of 1,036 tonnes per day during the quarter.
- Low-cost production at the Seabee Gold Operation: Produced 23,717 ounces of gold at cash costs of $481 per payable ounce of gold sold, a record low cash cost since acquiring the operation in 2016.
- Production in line with guidance at the Marigold mine: Produced 42,960 ounces of gold at cash costs of $720 per payable ounce of gold sold, and a near-record 7.1 million tonnes of ore stacked.
- Solid quarterly performance at Puna Operations: Produced 0.9 million ounces of silver at cash costs of $17.07 per payable ounce of silver sold, as lower grade stockpiles are processed.
- Chinchillas project remains on track: Capital expenditures totaled $12 million as the project remains on track for ore delivery in the second half of 2018.
- Increased cash position: Quarter-end cash increased to $472.9 million, up $13.0 million from the previous quarter.
SSR Mining Inc. PHONE +1 604.689.3846 Suite 800 - 1055 Dunsmuir Street www.ssrmining.com TOLL FREE +1 888.338.0046 PO Box 49088 Vancouver, BC, Canada V7X 1G4
Marigold mine, U.S.
Three months ended
| March 31 December 31 September 30 | June 30 | March 31 | |||
|---|---|---|---|---|---|
| Operating data | 2018 | 2017 | 2017 | 2017 | 2017 |
| Total material mined (kt) | 16,150 | 13,979 | 20,311 | 17,985 | 16,736 |
| Waste removed (kt) | 9,052 | 8,136 | 13,149 | 11,075 | 11,062 |
| Total ore stacked (kt) | 7,099 | 5,843 | 7,162 | 6,910 | 5,674 |
| Strip ratio | 1.3 | 1.4 | 1.8 | 1.6 | 1.9 |
| Mining costs ($/t mined) | 1.80 | 1.98 | 1.52 | 1.67 | 1.65 |
| Gold stacked grade (g/t) | 0.37 | 0.37 | 0.31 | 0.31 | 0.42 |
| Processing costs ($/t processed) | 0.93 | 1.08 | 0.89 | 0.82 | 0.89 |
| Gold recovery (%) | 74.0 | 74.0 | 72.0 | 73.0 | 74.0 |
General and admin costs ($/t
| processed) | 0.42 | 0.51 | 0.40 | 0.42 | 0.52 |
| Gold produced (oz) | 42,960 | 52,768 | 38,699 | 55,558 | 55,215 |
| Gold sold (oz) | 42,078 | 51,420 | 38,818 | 57,426 | 52,528 |
| Realized gold price ($/oz)(1) | 1,331 | 1,269 | 1,270 | 1,265 | 1,214 |
| Cash costs ($/oz)(1) | 720 | 699 | 684 | 632 | 585 |
| AISC ($/oz)(1) | 954 | 1,001 | 979 | 833 | 799 |
Financial data ($000s)
| Revenue | 55,880 | 65,217 | 49,395 | 72,451 | 63,762 |
| Income from mine operations | 12,312 | 12,777 | 11,189 | 21,373 | 21,327 |
| Capital expenditures | 4,665 | 8,194 | 3,855 | 5,272 | 3,043 |
| Capitalized stripping | 2,902 | 5,712 | 6,056 | 4,350 | 6,745 |
| Exploration expenditures(2) | 1,914 | 1,208 | 1,130 | 1,538 | 1,024 |
(1)
We report the non-GAAP financial measure realized gold prices, cash costs and all-in sustaining costs ("AISC") per payable ounce of gold sold 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 (loss) income, please refer to “Non-GAAP and Additional GAAP Financial Measures” in Section 9 of our management's discussion and analysis for the quarter ended March 31, 2018 (“MD&A”).
(2)
Includes capitalized and expensed exploration expenditures.
Mine production
In the first quarter of 2018, the Marigold mine produced 42,960 ounces of gold, in line with guidance. Production was 19% less than the previous quarter, due to lower ore stacked in the fourth quarter of 2017.
During the quarter, 16.2 million tonnes of material were mined, 16% more than the fourth quarter of 2017, reflecting an increase in operating days for the quarter due to a resumption of normal mining activities. We expect quarterly material movement to increase in the second quarter of 2018, and further in the second half of the year as four additional haul trucks are added to the fleet. Approximately 7.1 million tonnes of ore were delivered to the heap leach pads at an average gold grade of 0.37 g/t in the quarter. This compares to 5.8 million tonnes of ore delivered to the heap
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leach pads at a gold grade of 0.37 g/t in the fourth quarter of 2017. The strip ratio was 1.3:1 for the quarter, a 7% decrease compared to 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 $720 per payable ounce of gold sold in the first quarter of 2018 was 3% higher than the previous quarter. This was primarily due to the cost per ounce of leach pad inventory increasing in the fourth quarter of 2017 resulting from operational impacts, continued lower gold grades and a reduction in deferred stripping. Total mining costs of $1.80 per tonne in the first quarter of 2018 were 9% lower than in the previous quarter due to more tonnes mined for the reasons described above. Processing and general administrative unit costs were 14% and 18% lower, respectively, in the first quarter of 2018 than in the fourth quarter of 2017 due to higher tonnes mined and processed while total costs remained stable.
AISC per payable ounce of gold sold decreased in the first quarter of 2018 to $954 from $1,001 in the fourth quarter due to lower capital expenditures and lower deferred stripping.
Mine sales
A total of 42,078 ounces of gold were sold at an average realized price of $1,331 per ounce during the first quarter of 2018, a decrease of 18% from the 51,420 ounces of gold sold at average realized price of $1,269 per ounce during the fourth quarter of 2017.
Exploration
The main focus of our 2018 exploration program is to conduct infill drilling of the Red Dot resource area and to explore higher grade structural zones within the Mackay Phase 5 pit. During the first quarter, we completed a total of 48 reverse circulation drillholes for 17,170 meters on these targets.
The first series of drillholes targeting higher-grade structures (21 holes, 6,561 meters) at Mackay were collared from within the Phase 5 pit. This drilling has yielded encouraging results, with highergrade intercepts being returned within and just outside of the current Mineral Reserve pit outline.
Twenty-seven drill holes totaling 10,609 meters were completed during the quarter within the Red Dot area. Drill results have confirmed the current geologic interpretation and are expected to convert Inferred Mineral Resources to Indicated Mineral Resources.
During the second quarter of 2018, we will continue drilling for higher grade structures in Mackay Phase 5 while increasing the number of drill rigs deployed within the Red Dot area to accelerate the exploration program.
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Seabee Gold Operation, Canada
Three months ended
| Operating data | March 31 December 31 September 30 | June 30 | March 31 | ||
|---|---|---|---|---|---|
| 2018 | 2017 | 2017 | 2017 | 2017 | |
| Total ore milled (t) | 93,269 | 89,237 | 84,315 | 84,469 | 72,394 |
| Ore milled per day (t/day) | 1,036 | 970 | 916 | 928 | 804 |
| Gold mill feed grade (g/t) | 8.95 | 8.89 | 7.03 | 7.97 | 9.22 |
| Mining costs ($/t mined) | 59 | 66 | 74 | 60 | 68 |
| Processing costs ($/t processed) | 21 | 24 | 22 | 20 | 23 |
| Gold recovery (%) | 97.4 | 97.4 | 97.2 | 97.3 | 97.7 |
General and admin costs ($/t 53 61 53 50 59 processed)
| Gold produced (oz) | 23,717 | 24,227 | 18,058 | 20,690 | 21,023 |
| Gold sold (oz)(1) | 20,012 | 23,969 | 21,798 | 17,909 | 22,411 |
| Realized gold price ($/oz)(2) | 1,340 | 1,276 | 1,269 | 1,257 | 1,233 |
| Cash costs ($/oz)(2) | 481 | 605 | 634 | 592 | 574 |
| AISC ($/oz)(2) | 896 | 776 | 775 | 831 | 990 |
Financial data ($000s)
| Revenue | 26,789 | 30,571 | 27,652 | 22,502 | 27,609 |
| Income from mine operations | 6,672 | 2,923 | 3,643 | 4,083 | 4,995 |
| Capital expenditures | 4,426 | 920 | 799 | 711 | 4,760 |
| Capitalized development | 2,283 | 2,301 | 1,314 | 2,165 | 2,514 |
| Exploration expenditures(3) | 2,032 | 1,187 | 1,253 | 1,566 | 1,953 |
(1)
Beginning with the first quarter of 2018, the holder of the 3% net smelter returns 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 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 (loss) income, please refer to “Non-GAAP and Additional GAAP Financial Measures” in Section 9 of our MD&A.
(3)
Includes capitalized and expensed exploration expenditures.
Mine production
In the first quarter of 2018, Seabee Gold Operation produced 23,717 ounces of gold. With the commissioning of the new gravity circuit at the end of the quarter, in circuit gold inventory increased by approximately 2,400 ounces of gold, which is expected to positively impact gold production through the remainder of 2018.
During the first quarter, total ore milled increased 5% over the previous quarter, with the Santoy mine supplying 73% of ore milled. Following an extensive underground exploration program, ore extraction at the Seabee mine completed during the first quarter and it is currently undergoing decommissioning in advance of closure later this year. Going forward, all ore will be sourced from the Santoy mine.
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The mill achieved an average throughput of 1,036 tonnes per day during the quarter, 7% higher than the previous quarter due to a combination of Operational Excellence initiatives at both the mill and the Santoy mine. Gold recovery remained consistent at 97.4%.
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 and refining costs, were $481 in the first quarter of 2018, lower than the $605 in the fourth quarter of 2017. Our record low cash costs per payable ounce sold were primarily the result of higher mill throughput which increased gold production and in circuit inventory while incurring similar total operating costs compared to the prior quarter. Costs per tonne mined were $59 in the first quarter of 2018, 11% lower than in the previous quarter due to higher tonnes mined. Processing and general and administrative unit costs were each lower by 13% in the first quarter of 2018 compared to the fourth quarter of 2017, due to higher tonnes milled. Costs were also positively impacted by a weaker Canadian dollar.
AISC per payable ounce of gold sold were $896 in the first quarter of 2018, higher than the $776 in the fourth quarter of 2017. This increase is due to the seasonal nature of our operation whereby annual sustaining capital items are purchased in the first quarter of each year for delivery on the ice road for summer construction. Exploration expenditures increased as planned with a more aggressive drilling campaign due to last year’s exploration success and Fisher property earn-in.
Mine sales
A total of 20,012 ounces were sold at an average realized price of $1,340 per ounce of gold during the first quarter of 2018, 17% lower than the 23,969 ounces of gold sold in the fourth quarter of 2017, at an average realized price of $1,276 per ounce of gold. The reduction in ounces sold is a result of timing of sales recorded.
Exploration
For 2018, the Seabee Gold Operation plans 45,000 meters of underground drilling and 20,000 meters of surface drilling with the objective to increase and convert Mineral Resources into Mineral Reserves near the Santoy mine. In the first quarter of 2018, we completed 10,016 meters of underground drilling and 9,779 meters of surface drilling in 20 and 16 drillholes, respectively.
Our underground drill program for the first quarter of 2018 focused on three targets, including Santoy Gap, Santoy 8A zone and Santoy Gap hanging wall. Surface drilling in the first quarter focused on four areas including Carr, CRJ, Santoy 3 and Fisher with 16 drillholes being completed. Strongly altered rock was encountered at Carr, while drilling at CRJ intersected visible gold in two drillholes. By quarter end two drillholes had been completed at the Fisher property for 1,100 meters of drilling on the extension of the Santoy shear zone, and analytical results are pending.
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Puna Operations, Argentina (75% interest)
(amounts presented on 100% basis unless otherwise stated)
Three months ended
| March 31 December 31 September 30 | June 30 | March 31 | |||
|---|---|---|---|---|---|
| Operating data | 2018 | 2017 | 2017 | 2017 | 2017 |
| Ore milled (kt) | 373 | 442 | 461 | 446 | 449 |
| Silver mill feed grade (g/t) | 115 | 125 | 153 | 185 | 145 |
| Processing costs ($/t milled) | 15.34 | 13.53 | 11.92 | 12.94 | 13.66 |
| Silver recovery (%) | 67.7 | 66.0 | 67.8 | 73.5 | 72.6 |
| General and admin costs ($/t milled) | 6.33 | 5.74 | 4.81 | 5.00 | 5.22 |
| Silver produced ('000 oz) | 938 | 1,169 | 1,541 | 1,947 | 1,520 |
| Silver produced (attributable) ('000 oz)(1) | 704 | 877 | 1,156 | 1,777 | 1,520 |
| Silver sold ('000 oz) | 1,064 | 820 | 2,076 | 1,655 | 1,443 |
| Silver sold (attributable) ('000 oz)(1) | 798 | 615 | 1,557 | 1,473 | 1,443 |
| Realized silver price ($/oz)(2) | 16.79 | 16.96 | 16.77 | 17.31 | 17.35 |
| Cash costs ($/oz)(2,3) | 17.07 | 16.36 | 12.76 | 12.15 | 12.68 |
| AISC ($/oz)(2,3) | 18.37 | 18.30 | 13.56 | 12.78 | 14.82 |
Financial Data ($000s)
| Revenue | 15,233 | 12,093 | 28,958 | 22,029 | 26,534 |
| (Loss) income from mine operations | (1,753) | 5,490 | 7,690 | 4,006 | 13,767 |
| Capital expenditures(4) | 789 | 917 | 1,006 | 420 | 2,261 |
| Exploration expenditures(4) | 6 | — | — | — | — |
(1)
Attributable production and sales for the second quarter of 2017 represent 100% for April and May and 75% for June 2017. Attributable production and sales for all subsequent quarters represent 75%.
(2)
We report the non-GAAP financial measures of cash costs per payable ounce of silver sold, realized silver prices and AISC per payable ounce of silver sold 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 (loss) income, please refer to “Non-GAAP and Additional GAAP Financial Measures” in Section 9 of our MD&A.
(3)
Cash costs and AISC per payable ounce of silver sold include stockpile inventory costs previously incurred of $5.75 for the three months ended March 31, 2018 (December 31, 2017 - $5.30, September 31, 2017 - $5.20, June 30, 2017 - $3.30, March 31, 2017 - $2.00).
(4)
Does not include exploration or development of the Chinchillas project.
Mine production
During the first quarter of 2018, the operation produced 0.9 million ounces of silver, in line with expected silver production from stockpiles of 1.6 million ounces in the first half of 2018. Our attributable share of silver production in the first quarter was 0.7 million ounces.
Ore was milled at an average rate of 4,144 tonnes per day in the first quarter, 14% below the previous quarter. Crusher operations in the first quarter were constrained by construction of the crushed ore stockpile dome and wetter than normal weather conditions. Ore milled in the first quarter of 2018 contained an average silver grade of 115 g/t, 8% lower than the 125 g/t reported in the fourth quarter of 2017 as we process increasingly lower grade stockpiles. The average silver recovery in the first quarter was 67.7%, marginally above the previous quarter.
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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 $17.07 per payable ounce of silver sold in the first quarter of 2018. These cash costs were 4% higher than the $16.36 per payable ounce of silver sold in the fourth quarter of 2017 principally due to lower production resulting from processing lower silver grade stockpiled ore. In the first quarter of 2018, cash costs included approximately $5.75 per payable ounce of stockpile inventory costs that were previously incurred.
AISC per payable ounce of silver sold in the first of quarter of 2018 were $18.37, comparable to $18.30 in the fourth quarter of 2017.
Mine sales
Silver sales totaled 1.1 million ounces and attributable sales were 0.8 million in the first quarter of 2018, a 30% increase from the fourth quarter of 2017 as we sold down concentrate inventories that had accumulated at year end 2017.
Exploration
During the first quarter of 2018, we began a 2,400 meter surface drill program at Pirquitas targeting resources that would augment the Cortaderas resource. Three drillholes were completed for 812 meters with positive silver-zinc results from two narrow vein structures.
Chinchillas project, Argentina
Following receipt of development permits in December 2017, pre-stripping and construction activities advanced in the first quarter.
To support pre-strip mining operations, refurbished mine equipment was transferred from Pirquitas to Chinchillas and additional mining equipment within the project scope was delivered to site and commissioned. The operations team initiated its first blast within the Chinchillas pit in March and, during the month, 172,000 tonnes of waste was stripped. Ramp up of pre-stripping is on track for first ore delivery to Pirquitas in the second half of the year.
All major materials and infrastructure have been ordered with deliveries scheduled through to May 2018. In addition, major construction contracts have been awarded with contractors having been mobilized in March 2018 at both Pirquitas, for the in-pit tailings system and stockpile dome, and, at Chinchillas, for earthworks. Concrete foundations for the tailings pumps and electrical room advanced to 75% completion allowing the electromechanical contractor to proceed with installation of the pumps. Pipe installation for the six-kilometer tailings line from the plant to the pit also started during the quarter and is advancing well. The stockpile dome was 25% complete at quarter end.
Earthworks at Chinchillas for infrastructure, buildings and internal access roads advanced to 60% and are on schedule to receive buildings in May 2018. Fabrication of structural steel for the haul truck maintenance facility is in progress. Pre-fabricated buildings for site offices, the dining room
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and the change house will be delivered and installed in the third quarter. Temporary facilities to support construction and pre-strip works are in place.
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Other Projects
The SIB exploration project is located near the high-grade, past-producing Eskay Creek mine in northwest British Columbia. During the fourth quarter of 2017, we announced plans to continue with the exploration program committing to a $3.2 million drill program and geophysics activities in 2018. 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. Field work is planned to commence in the second quarter.
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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."
Our guidance is unchanged from that reported on January 15, 2018. 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(1) $/oz | 725 - 775 | 560 - 610 | 12.50 - 15.00 | |
| 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 the Marigold mine exclude $22 million for four additional haul trucks as announced in our news release dated February 22, 2018, and 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 payable ounce of gold sold. 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 payable ounce of gold sold.
Gold equivalent figures for our 2018 operating guidance are based on gold-to-silver ratio of 73:1. Cash costs and capital expenditures guidance is based on an oil price of $60 per barrel and exchange rate of 1.25 Canadian dollar to U.S. dollar.
We expect to file a NI 43-101 technical report for the Marigold mine by the third quarter of 2018. The technical report will include the 2017 Mineral Reserves contained within the life of mine pit design and reflect added hauling capacity provided by the trucking fleet additions for expected annual gold production of over 250,000 ounces in 2022.
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Consolidated Financial Summary
(presented in thousands of U.S, dollars, except for per share value)
Selected Financial Data (1)
Three months ended March 31,
2018 2017 $ $
| Revenue | 97,902 | 117,905 |
| Income from mine operations | 17,231 | 40,089 |
| Gross margin (%) | 18 | 34 |
| Operating income(1) | 7,731 | 24,809 |
| Net (loss) income | (2,322) | 15,047 |
| Basic attributable (loss) income per share | (0.01) | 0.13 |
| Adjusted attributable income before tax(1) | 6,736 | 23,161 |
| Adjusted attributable net income(1) | 5,662 | 19,741 |
| Adjusted basic attributable income per share(1) | 0.05 | 0.17 |
| Cash generated by operating activities | 11,007 | 30,643 |
| Cash generated by (used in) investing activities | 1,387 | (18,118) |
| Cash generated by financing activities | 1,916 | 335 |
Financial Position
March 31, 2018 December 31, 2017
| Cash and cash equivalents | 472,901 | 459,864 |
| Marketable securities | 43,840 | 114,001 |
| Current assets | 758,679 | 799,597 |
| Current liabilities | 72,948 | 71,466 |
| Working capital | 685,731 | 728,131 |
| Total assets | 1,490,123 | 1,537,454 |
(1) We report non-GAAP measures including income from mine operations, gross margin, operating income, adjusted attributable income before tax, adjusted attributable net income, and adjusted basic attributable income per share, to manage and evaluate our operating performance. Please see “Cautionary Note Regarding Non-GAAP Measures”.
Quarterly financial summary
Revenue in the first quarter of 2018 decreased by 17% relative to the comparative quarter of 2017 due principally to the expected declines in sales at Puna Operations, as it processed lower grade stockpiles, and at the Marigold mine, due to planned production and leach cycles.
Income from mine operations in the first quarter of 2018 generated a gross margin of 18%, lower than the 34% margin in the first quarter of 2017. In the first quarter of 2018, cost of sales at Puna Operations were elevated as we processed lower grade stockpiles, and also higher cost of sales were experienced at the Marigold mine as we have been processing higher cost material stacked in the second half of 2017. In addition, the elevated margin in the first quarter of 2017 benefited from a $4.3 million reduction to cost of sales following the resolution of our export duty claim in Argentina.
Cash generated by operating activities in the quarter was $11.0 million compared to $30.6 million in the first quarter of 2017. Higher production and lower unit costs at the Seabee Gold Operation was more than offset by lower production at the Marigold mine and Puna Operations, resulting in lower volumes of gold and silver sold at higher unit costs, which generated lower cash from operating
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activities. We also saw an increase in inventory at the Seabee Gold Operation and Marigold which impacted operating cash flows in the current period, and we paid tax installments of $2.2 million which were not incurred in the same period in 2017. We generated $1.4 million from investing activities in the first quarter of 2018 compared to a use of $18.1 million in the first quarter of 2017. In the first quarter of 2018, we received $28.1 million from the sale of common shares of Pretium Resources which was partially offset by investing $8.8 million in property, plant and equipment, and $11.7 million in the Chinchillas project. We received $1.5 million from our joint venture partner for its share of the development costs of the Chinchillas project. Our working capital position decreased to $685.7 million, which was a decrease of $42.4 million from $728.1 million at December 31, 2017, mainly due to the reduction in value of our marketable securities. As a result, cash and cash equivalents increased to $472.9 million during the quarter.
Corporate summary
SSR Mining has an experienced management team of mine-builders and operators with proven capabilities. We have an enviable balance sheet with $472.9 million in cash and cash equivalents and $43.8 million in marketable securities as at March 31, 2018. We are committed to delivering safe production through relentless emphasis on Operational Excellence. We are also focused on growing production and Mineral Reserves through the exploration and acquisition of assets for accretive growth, while maintaining financial strength.
On January 1, 2018, we appointed Ms. Elizabeth A. Wademan and Mr. Simon A. Fish, to our Board of Directors with the objective to strengthen the Board's expertise in the areas of international capital markets and legal and corporate governance. On May 3, 2018, we announced the appointment of Kevin O'Kane as Chief Operating Officer effective June 4, 2018.
In the first quarter of 2018, we sold 4.0 million common shares of Pretium, realizing pre-tax cash proceeds of $28.1 million. At March 31, 2018, we held 5.0 million common shares, representing approximately 2.8% of Pretium. Subsequent to the quarter end, we sold our remaining position in Pretium for pre-tax proceeds of approximately $35 million.
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