Ssr Mining Reports First Quarter 2018 Results
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."
News Release 18-07
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
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 $13.0 million from
the previous quarter.
Marigold mine, U.S.
Three months ended
Operating data
March 31
2018
December 31
2017
September 30
2017
June 30
2017
March 31
2017
Total material mined (kt) 16,150 13,979 20,311 17,985 16,736
Waste removed (kt) 9,052 8,136 13,149 11,075 11,062
Total ore stacked (kt) 7,099 5,843 7,162 6,910 5,674
Strip ratio 1.3 1.4 1.8 1.6 1.9
Mining costs ($/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 $1,269 per ounce during the fourth quarter of 2017.
Exploration
The main focus of our 2018 exploration program is to conduct infill drilling of the Red Dot resource
area and to explore higher grade structural zones within the Mackay Phase 5 pit. During the first
quarter, we completed a total of 48 reverse circulation drillholes for 17,170 meters on these targets.
The first series of drillholes targeting higher-grade structures (21 holes, 6,561 meters) at Mackay
were collared from within the Phase 5 pit. This drilling has yielded encouraging results, with higher-
grade intercepts being returned within and just outside of the current Mineral Reserve pit outline.
Twenty-seven drill holes totaling 10,609 meters were completed during the quarter within the Red
Dot area. Drill results have confirmed the current geologic interpretation and are expected to convert
Inferred Mineral Resources to Indicated Mineral Resources.
During the second quarter of 2018, we will continue drilling for higher grade structures in Mackay
Phase 5 while increasing the number of drill rigs deployed within the Red Dot area to accelerate
the exploration program .
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Seabee Gold Operation, Canada
Three months ended
Operating data March 31
2018
December 31
2017
September 30
2017
June 30
2017
March 31
2017
Total ore milled (t) 93,269 89,237 84,315 84,469 72,394
Ore milled per day (t/day) 1,036 970 916 928 804
Gold mill feed grade (g/t) 8.95 8.89 7.03 7.97 9.22
Mining costs ($/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
processed) 53 61 53 50 59
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 $1,276 per ounce of gold. The reduction in ounces sold is a
result of timing of sales recorded.
Exploration
For 2018, the Seabee Gold Operation plans 45,000 meters of underground drilling and 20,000
meters of surface drilling with the objective to increase and convert Mineral Resources into Mineral
Reserves near the Santoy mine. In the first quarter of 2018, we completed 10,016 meters of
underground drilling and 9,779 meters of surface drilling in 20 and 16 drillholes, respectively.
Our underground drill program for the first quarter of 2018 focused on three targets, including
Santoy Gap, Santoy 8A zone and Santoy Gap hanging wall. Surface drilling in the first quarter
focused on four areas including Carr, CRJ, Santoy 3 and Fisher with 16 drillholes being completed.
Strongly altered rock was encountered at Carr, while drilling at CRJ intersected visible gold in two
drillholes. By quarter end two drillholes had been completed at the Fisher property for 1,100 meters
of drilling on the extension of the Santoy shear zone, and analytical results are pending.
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Puna Operations, Argentina (75% interest)
(amounts presented on 100% basis unless otherwise stated)
Three months ended
Operating data
March 31
2018
December 31
2017
September 30
2017
June 30
2017
March 31
2017
Ore milled (kt) 373 442 461 446 449
Silver mill feed grade (g/t) 115 125 153 185 145
Processing costs ($/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
SSR Mining Inc. PAGE 7
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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