Ssr Mining Reports Fourth Quarter and Full Year 2021 Results Highlights
SSR Mining Inc. PAGE 1
News Release
February 23, 2022
SSR MINING REPORTS FOURTH QUARTER AND FULL YEAR 2021 RESULTS
HIGHLIGHTS
• ATTRIBUTABLE & ADJUSTED ATTRIBUTABLE FOURTH QUARTER EPS OF $0.60 AND $0.46 PER SHARE, RESPECTIVELY
• 2021 OPERATING CASH FLOW OF $609 MILLION, FREE CASH FLOW OF $444 MILLION
• 2021 CAPITAL RETURNS OF $191 MILLION
• 2022 DIVIDEND INCREASED BY 40%
• INCREASED GOLD MINERAL RESERVES BY 14% OR 1.1 MILLION OUNCES
• UPDATED RESERVE CASE TECHNICAL REPORTS FOR ALL FOUR PRODUCING ASSETS
• INITIAL ASSESSMENT CASE OUTLINING C2 DEVELOPMENT FOR TOTAL CAPITAL OF $218 MILLION AND A ~60% IRR
DENVER - SSR Mining Inc. (NASDAQ/TSX: SSRM, ASX:SSR) ("SSR Mining" or the “Company") reports consolidated
financial results in accordance with U.S. GAAP for the full year ended December 31, 2021. In addition, the Board of Directors
declared a quarterly cash dividend of US$0.0 7 per common share, an increase of 40% over the third quarter dividend,
payable on April 4, 2022 to holders of record at the close of business on March 7, 2022. This dividend qualifies as an 'eligible
dividend' for Canadian tax purposes.
Rod Antal, President and CEO said, " SSR Mining ended 2021 with another strong quarter , rounding out a year of
operational outperformance, strong free cash flow generation and peer -leading capital returns. We delivered full-year gold
equivalent production at the top-end of our 2021 guidance range and full-year AISC * below our previously lowered guidance
range despite pervasive inflationary pressures across the industry . Subsequently, last month we announced our inaugural
three-year operating outlook and increased our base dividend by 40%.
Accompanying today’s strong fourth quarter and full year financial results, w e announced our updated Mineral Reserve s
and Resources for year-end 2021, including a 14% or 1.1 million ounce increase in total gold Mineral Reserves as compared
to year-end 2020. Additionally, we have filed SK1300 Technical Report Summaries ( “TRS”) for all four of our producing
assets. The Çöpler District Master Plan TRS (“CDMP21”) includes a Mineral Reserve Case incorporating maiden Mineral
Reserves from Çakmaktepe Extension (Ardich), and an Initial Assessment Case ( “IAC”) which contemplates the
construction of a copper concentrator to process Çöpler Copper-Gold (“C2”) sulfide ore beginning in 2025 at an IRR of
~60%.
Together, the four TRS reports outline an improved production platform and reaffirm our ability to sustain a +700koz
production profile through the end of the decade. This is further supported by the consideration that Seabee and Marigold
TRS do not yet fully incorporate the ongoing exploration efforts including the recent positive drill results issued late last year,
and are based exclusively on existing Mineral Reserves. Overall, the new TRS reports provide refreshed base case
production scenarios with no significant capital requirements that we will continue to improve into the future.”
* AISC is a non-GAAP metric which is customary in the mining industry, but for which there is no standardized definition or comparable financial measure
under U.S. GAAP. As a result, we have not identified a comparable financial measure calculated under U.S. GAAP. See. "Cautionary Note Regarding
Non-GAAP Financial Measures".
SSR Mining Inc. PAGE 2
Fourth Quarter and Full Year 2021 Highlights:
(All figures are in U.S. dollars unless otherwise noted)
▪ Achieved full year production at the top end of guidance while beating AISC guidance: Delivered fourth quarter
production of 211,717 gold equivalent ounces at AISC of $961/oz. (1) Full year production of 794,456 gold equivalent
ounces approached the top end of the Company’s guidance range of 720,000 to 800,000 gold equivalent ounces . The
Company’s 2021 AISC was $955 per gold equivalent ounce, beating the previously lowered AISC guidance range of
$1,000 to $1,040 per ounce. (1) (2)
▪ Announced 2022 guidance and inaugural three-year operating outlook: Three-year production guidance of
700,000 to 780,000 gold equivalent ounces annually reflects a strong and stable production profile without requirements
for material capital investment. The Company’s 2022 guidance included AISC guidance of $1,120 to $1,180 per ounce,
reflecting a cost profile that ensures strong free cash flow and capital returns going forward. (1)
▪ Generated continued peer leading cash flow: Cash flows from operating activities of $ 184.6 million and free cash
flow of $148.7 million in the fourth quarter, contributing to full year operating cash flow of $609.0 million and free cash
flow of $ 444.2 million. (1) Attributable net income in the fourth quarter was $127.4 million, or $0. 60 per share, and
adjusted attributable net income was $98.3 million, or $0.46 per share. (1) For the full year period, attributable net income
was $368.1 million, or $1.70 per share, while adjusted attributable net income was $401.8 million or $1.86 per share. (1)
▪ Delivered $191 million in capital returns and increased d ividend by 40% : The Board declared a quarterly cash
dividend of $0.07 per share on February 22, 2022, a 40% increase over the third quarter dividend of $0.05. In 2021,
SSR Mining returned $191.3 million to shareholders through dividend payments and the purchase of 8,800,700 shares
at an average share price of $16.82 per share under the Normal Course Issuer Bid (“NCIB”) program announced on
April 19, 2021.
▪ Balance sheet remains a key strength: At the end of 2021, the Company had a cash and cash equivalent balance of
$1,017.6 million, after the aforementioned $191.3 million in capital returns to shareholders and $70 million in scheduled
debt repayments. Non-GAAP net cash now totals $681.4 million. (1)
▪ Increased gold Mineral Reserves by 14% or 1 .1 million ounces to 9.2 million ounces : Resource to Reserve
conversion at Çakmaktepe Extension (Ardich) and Gap Hangingwall drove an increase to Mineral Reserves and offset
depletion at Marigold and Puna. Total gold equivalent Mineral Reserves increased by 11%, or 1.0 million ounces, to
10.0 million ounces.
▪ Positive results at the Çöpler District Master Plan TRS (“CDMP21”) add upside: CDMP21 builds on Ҫӧpler’s 2020
technical report, including a Mineral Reserve case with a 21 year mine life and total production of 4.4 million ounces of
gold. An Initial Assessment Case (IAC) production plan includes a 22 year mine plan with total gold production 5.4
million ounces of gold through the development of the Çöpler Copper-Gold (C2) project for incremental capex of $218
million and a ~60% IRR.
▪ Updated Technical Report Summaries at all producing assets reiterate quality of longer-term platform: The TRS
doubled the life of Seabee and demonstrated solid base case mine plans at Marigold and Puna. These reports include
refreshed operating and economic assumptions for each asset and provide a base line for further growth and
optimization to support the Company’s long-term production base.
▪ Delivered strong near -mine and greenfi eld exploration results across the portfolio : In the fourth quarter, SSR
Mining delivered positive exploration updates from the Marigold, Copper Hill, and Amisk properties. The Company also
increased its ownership in the Copper Hill joint venture to 70%. The exploration updates in the fourth quarter build on
the positive results from Çakmaktepe Extension (Ardich) and Seabee earlier in the year, showcasing SSR Mining’s
robust exploration platform.
SSR Mining Inc. PAGE 3
▪ Expanded land position in Saskatchewan with proposed acquisition of Taiga Gold Corp. On December 2, 2021,
SSR Mining announced the proposed acquisition of Taiga Gold Corp. (“Taiga”) for C$0.265 per Taiga share, implying
an equity value of $21 million. The transaction consolidated a 100% interest in the Fisher property contiguous to the
Seabee mine, eliminated an existing 2.5% net smelter return (“NSR”) royalty on the Fisher property, and added five
new properties covering 30,480 hectares to complement the Company’s existing exploration platform in th e
underexplored and highly geologically prospective Province of Saskatchewan. The transaction, which is subject to Taiga
shareholder approval, court and regulatory approvals and customary closing conditions, is expected to close in the first
half of 2022.
▪ Announced the sale of the Pitarrilla project: On January 13, 2022, the Company announced it had entered into a
definitive agreement to sell its Pitarrilla silver project in Durango, Mexico to Endeavour Silver Corp . (“EXK”) for total
consideration of up to $127 million. This consideration includes $ 35 million in cash, $ 35 million in EXK shares, and a
1.25% Net Smelter Return (“NSR”) royalty on the Pitarrilla property (3). The transaction, which is subject to TSX and
NYSE regulatory approvals, the approval of the Mexican Federal Economic Competition Commission and customary
closing conditions, is expected to close in the first half of 2022.
(1) The Company reports non -GAAP financial measures including adjusted attributable net income, adjusted basic attributable net income per share,
free cash flow, net cash, cash costs and AISC per ounce sold 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 n et
income and production costs, which are the comparable GAAP financial measures.
(2) SSR Mining’s 2021 AISC guidance was issued in accordance with IFRS.
(3) The estimated value of the net smelter return royalty is based on the present value of net smelter returns of the Pitarrilla property from the “NI 43-101
Technical Report on th e Pitarrilla Project, Durango State, Mexico”, dated December 14, 2012, which is available on Company’s website at
www.ssrmining.com, discounted at a rate of 5%. The estimated value assumes a silver price of US$25/oz, a lead price of US$0.90/ lb, and a zinc
price of US$0.95/lb. The assumptions underlying the estimated value of the Pitarrilla project net smelter return royalty, including those supporting the
Technical Report on the Pitarrilla Project and future metal prices, represent estimates and actual royalties received by SSR Mining in connection with
the Transaction may differ from projected amounts.
SSR Mining Inc. PAGE 4
Financial and Operating Highlights
A summary of the Company's consolidated financial and operating results for the three and twelve months ended
December 31, 2021 and 2020 are presented below:
(in thousands of US dollars, except per share data) Three months ended December 31, Twelve months ended December 31,
2021 2020 2021 2020
Financial Results
Revenue $ 407,919 $ 370,729 $ 1,474,199 $ 853,089
Income from mine operations $ 153,647 $ 151,592 $ 574,866 $ 299,293
Gross margin (2) 38 % 41 % 39 % 35 %
Operating income $ 118,816 $ 123,902 $ 444,375 $ 188,275
Net income $ 156,499 $ 86,863 $ 425,922 $ 157,162
Net income attributable to equity holders of SSR Mining $ 127,435 $ 83,178 $ 368,076 $ 151,535
Basic attributable net income per share $ 0.60 $ 0.38 $ 1.70 $ 1.00
Adjusted attributable net income (1) $ 98,259 $ 109,666 $ 401,757 $ 193,401
Adjusted basic attributable net income per share (1) $ 0.46 $ 0.50 $ 1.86 $ 1.28
Cash generated by operating activities $ 184,606 $ 211,336 $ 608,986 $ 307,098
Cash used in investing activities $ 1,362 $ (53,245) $ (129,137) $ 240,423
Cash used in financing activities $ (29,380) $ (31,255) $ (319,769) $ (158,374)
Operating Results
Gold produced (oz) 185,042 191,885 683,446 418,745
Gold sold (oz) 186,159 182,259 689,354 413,775
Silver produced ('000 oz) 2,043 2,165 8,010 5,581
Silver sold ('000 oz) 2,461 956 7,810 4,411
Lead produced ('000 lb) (4) 11,319 6,529 37,695 17,193
Lead sold ('000 lb) (4) 11,653 3,005 33,378 14,179
Zinc produced ('000 lb) (4) 3,208 2,932 13,642 6,988
Zinc sold ('000 lb) (4) 3,803 1,608 10,751 5,111
Gold equivalent produced (oz) (5) 211,717 220,431 794,456 484,153
Gold equivalent sold (oz) (5) 218,282 194,862 797,602 465,471
Average realized gold price ($/oz sold) $ 1,798 $ 1,880 $ 1,802 $ 1,812
Average realized silver price ($/oz sold) $ 23.48 $ 24.78 $ 24.98 $ 21.23
Cash cost per gold equivalent ounce sold (1, 5) $ 697 $ 688 $ 698 $ 814
AISC per gold equivalent ounce sold (1, 5) $ 961 $ 951 $ 955 $ 1,193
Financial Position December 31, 2021 December 31, 2020
Cash and cash equivalents $ 1,017,562 $ 860,633
Current assets $ 1,600,314 $ 1,423,795
Total assets $ 5,211,438 $ 5,177,344
Current liabilities $ 283,882 $ 249,297
Total liabilities $ 1,158,921 $ 1,326,856
Working capital (3) $ 1,316,432 $ 1,174,498
(1) The Company reports non-GAAP financial measures including adjusted attributable net income, adjusted basic attributable net income per share, cash
costs and AISC per ounce sold to manage and evaluate its operating performance at its mines. See "Non-GAAP Financial Measures" for an explanation
of these financial measures an d a reconciliation of these financial measures to net income and production costs, which are the comparable GAAP
financial measures.
(2) Gross margin is defined as income from mine operations divided by revenue.
(3) Working capital is defined as current assets less current liabilities.
(4) Data for lead production and sales relate only to lead in lead concentrate. Data for zinc production and sales relate only to zinc in zinc concentrate.
(5) Gold equivalent ounces have been established using the average realized metal prices per ounce of precious metals sold in the period and applied to
the recovered silver metal content produced by the mines. Zinc and lead production are not included in gold equivalent ounces produced.
SSR Mining Inc. PAGE 5
Updated Mineral Reserves and Resources for Year-End 2021
SSR Mining reports its updated Mineral Reserves and Mineral Resources as of December 31, 202 1. For a detailed
summary by asset, please refer to Item 2 Properties in SSR Mining’s 2021 10-K filing associated with this release.
▪ Continued delivery of Mineral Reserve r eplacement: Gold Mineral Reserves increased 14% or 1.1 million
ounces to 9.2 million ounces as compared to year-end 2020 Mineral Reserves. Total gold equivalent Mineral
Reserves increased 11% or 1.0 million ounces to 10.0 million ounces. The additions were driven primarily by the
initial Mineral Reserve at Çöpler’s Çakmaktepe Extension, along with the Gap Hangingwall at Seabee.
▪ Measured and Indicated Mineral Resources of nearly 18 million gold equivalent ounces (exclusive of
Mineral Reserves): Gold Measured and Indicated Mineral Resources of 6.5 million ounces decreased by 0.4
million ounces as compared to year -end 2020 Measured and Indicated Mineral resources, reflecting depletion.
Gold equivalent Measured and Indicated Mineral Resources decreased b y 1% to 17. 8 million ounces as
compared to year-end 2020.
▪ Inferred Mineral Resources highlight targets for future conversion: Gold Inferred Mineral Resources of 5.5
million ounces increased by 15% or 0.7 million ounces as compared to year-end 2020 Inferred Mineral Resources.
Gold equivalent Inferred Mineral Resources of 7. 3 million ounces increased by 7% or 0. 5 million ounces as
compared to year-end 2020 Inferred Mineral Resources.
▪ Çakmaktepe Extension and C2 drive Çöpler District Mineral Reserve and Resource growth, respectively:
Çöpler Mineral Reserves increased 34% to 5.2 million ounces of gold with the successful conversion at
Çakmaktepe Extension. Total gold contained in Measured and Indicated Mineral Resources plus the Mineral
Reserves increased 15% to 8.3 million gold ounces. Çöpler also hosts 299 million pounds of Measured and
Indicated copper resources in Çöpler, which the Çöpler Copper-Gold project aims to leverage value from.
▪ Commodity price assumptions largely unchanged from 2020: Commodity prices used in the calculation of
Mineral Reserves remain at $1,350/oz gold, $18.50/oz silver, $0.90/lb of lead, $1.05/lb of zinc, while the copper
price was increased to $3.30/lb from $3.00/lb previously. At Seabee, a $1,600 /oz gold price was use d in the
calculation of Mineral Reserves to better align with site-level mine plans. Mineral Resource prices of $1,750 /oz
gold, $22.00/oz silver, $0.95/lb lead, $1.15/lb zinc were unchanged from 2020, while the copper price assumption
increased to $3.95/lb from $3.25/lb previously.
Table 1. SSR Mining Mineral Reserves and Resources as of December 31, 2021 .
Mineral Reserves and Resources as of
December 31, 2021
Gold Silver Lead Zinc Copper AuEq (7) GEO Y/Y
Change
koz koz Mlb Mlb Mlb koz %
Total P+P Reserves 9,154 47,906 219 48 9 10,016 11%
Total M&I Resource (6) 6,483 596,069 1,430 3,584 299 17,782 (1%)
Total Inferred Resource 5,495 71,819 59 320 286 7,285 7%
(6) Measured and Indicated Mineral Resources are shown exclusive of Mineral Reserves.
(7) All gold equivalent ounce (GEO) figures are based on the above-mentioned commodity prices. Metal equivalence is calculated for the respective and
applicable metals as follows: AuEq = Au koz + ((Ag koz * Ag price per ounce) + (Pb klb * Pb price per pound) + (Zn klb * Zn price per pound) + (Cu klb
* Cu price per pound)) / (Au price per ounce).
SSR Mining Inc. PAGE 6
SK1300 Technical Report Summary Highlights:
As required under SEC regulations, SSR Mining has published updated TRS for its four producing assets. At Ҫӧpler,
the updated CDMP21 includes a Mineral Reserve Case incorporating the maiden Mineral Reserve from Çakmaktepe
Extension (Ardich), and an Initial Assessment Case (IAC) which contemplates the production and value upside
possible through the construction of a copper concentrator to process Çöpler Copper-Gold Resources. Both the
Reserve Case and the Initial Assessment Case extend the operating life for the Ҫӧpler mine and expand the
production profile against the November 2020 Ҫӧpler District Master Plan (“CDMP20”) .
The Seabee TRS reflects a doubling of the mine life with the inclusion of the Gap Hangingwall Mineral Reserves and
includes recently demonstrated improved operating performance. The accelerated filing of the Marigold TRS means
that recent drilling work was not yet developed to a stage ready for Mineral Reserve declaration, which is targeted for
subsequent filings. With respect to Puna, the TRS includes the improved operating performance that the mine has
demonstrated over the last year.
The updated life of mine plans are aligned with the Company’s three-year production guidance of 700,000 to 780,000
gold equivalent oun ces annually, and provide a robust production base for SSR Mining to complement with future
resource conversion and growth projects. In aggregate, the combined Net Asset Value of the four assets is aligned
with consensus analyst estimates, without incorporating future growth opportunities at each mine. The company has
a pipeline of highly prospective near mine targets at all of its producing mi nes, a history of near mine exploration
success/mine life extension and has substantially increased spending on nea r mine exploration and project
development in 2022.
Table 2. Key Metrics From 2021 SK1300 Technical Report Summaries (8)
Asset Mine Life LOM Production 5-Year Avg. Annual
Production After-Tax NPV5%
Reserve Case
(yrs.)
IAC
(yrs.)
Reserve Case
(koz Au)
IAC
(koz Au)
Reserve Case
(koz Au)
IAC
(koz Au)
Reserve Case
($M)
IAC
($M)
Ҫӧpler 21 22 4,369 5,368 278 300 $1,732 $2,004
Marigold 11 2,536 215 $860
Seabee 6 565 96 $249
Subtotal 16 18 7,470 8,469 589 611 $2,841 $3,113
Moz Ag Moz Ag
Puna 5 35.1 7.0 $228
Weighted Average Mine Life
(yrs.) koz AuEq koz AuEq Total Producing Asset NPV5%
($M)
Total 16 17 7,958 8,957 686 708 $3,068 $3,341
(8) Gold equivalent calculated using a 72:1 gold to silver ratio in accordance with 2022 SSR Mining guidance.
SSR Mining Inc. PAGE 7
Ҫӧpler District Master Plan – Reserve Case
The first of two development scenarios outlined in the CDMP21, the Reserve Case incorporates the successful
Mineral Reserve conversion efforts at Çakmaktepe Extension (Ardich) to extend and expand upon the production
profile outlined in the CDMP20. Highlights of the CDMP21 Reserve Case include:
• NPV5% of $1.7 billion;
• 21-year asset life including 13 years of oxide mining;
• Life of mine production of 4.4 million ounces gold, a 37% increase over the CDMP20 Reserve Case;
• Average annual production of 278,000 ounces of gold over the first five years;
• Average AISC of $1,071 per ounce over the first five years;
• Average annual operating cash flow of $205 million and free cash flow of $158 million over the first five years;
• Incorporation of Mineral Reserves at Çakmaktepe Extension (Ardich) that adds an addition al 1.2 million
ounces of gold production into the life of mine profile beginning in 2023 for total development capital of $69
million
Figure 1. Life of Mine Production Profile from CDMP21 Reserve Case as compared to CDMP20 Reserve Case mine
plan
Table 3. Key Metrics From 2021 Ҫӧpler District Master Plan Reserve Case
2022 – 2026 2022 – 2031 Life of Mine
Average Annual Production Au koz 278 258 208
Total Production Au koz 1,390 2,579 4,369
Total Cash Costs $ / Au oz $880 $867 $803
AISC $ / Au oz $1,071 $1,049 $966
Operating Cash Flow $M $1,024 $1,818 $3,144
Total Capital Costs * $M $233 $365 $588
Total Free Cash Flow $M $791 $1,453 $2,555
Average Annual Free Cash Flow $M $158 $145 $122
* Total capital costs include working capital.
SSR Mining Inc. PAGE 8
Ҫӧpler District Master Plan – Initial Assessment Case
The Initial Assessment Case development scenario outlined in the CDMP21 expands on the life of mine production
plan highlighted in both the CDMP21 Reserve Case and the 2020 Ҫӧpler District Master Plan (“CDMP20”) PEA Case
with the construction of a Copper Concentrator to recover copper from the Sulfide Mineral Resource.
The Initial Assessment Case has been prepared to demonstrate economic potential of the Mineral Resources at the
Çöpler Deposit. The Initial Assessment Case is preliminary in nature, it includes Inferred Mineral Resources that are
considered too speculative geologically to have modifying factors applied to them that would enable them to be
categorized as Mineral Reserves, and there is no certainty that this economic assessment will be realized.
The copper concentrator would produce a gold-rich copper concentrate for sale to smelters and a high gold content
pyrite concentrate to be fed into the autoclaves in the sulfide plant. The pyrite concentrate would increase annual gold
production while also providing sulfur as a source of fuel for the autoclaves. In addition, the changes in pit shape
driven by the added value attributed by the copper also results in additional ore feed for both the autoclaves and heap
leach pads. Highlights of the CDMP21 Initial Assessment Case include:
• NPV5% of $2.0 billion;
• 22-year asset life including 19 years of oxide mining;
• Life of mine production of 5.4 million ounces gold, a 26% increase in LOM production over the CDMP20 PEA
Case despite depletion;
• Average annual production of 300,000 ounces of gold over the first five years;
• Average AISC of $938 per ounce over the first five years;
• Average annual operating cash flow of $255 million and free cash flow of $165 million over the first five years;
• Incorporation of the Copper Concentrator adds 1.0Moz gold in life of mine production starting in 2025 for
initial capital investment of $218 million;
• Most of the value in the gold -rich copper concentrate is derived from gold with t otal copper revenue
representing ~6% of LOM total revenue in the CDMP21 Initial Assessment Case;
• IRR: ~60%
Figure 2. Life of Mine Production Profile from CDMP21 Initial Assessment Case as compared to CDMP20 PEA Case
mine plan