Ssr Mining Reports First Quarter 2019 Results
News Release 19-09
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
May 9, 2019
SSR MINING REPORTS FIRST QUARTER 2019 RESULTS
VANCOUVER, B.C. - SSR Mining Inc. (NASDAQ: SSRM) (TSX: SSRM) (“SSR Mining”) reports
consolidated financial results for the first quarter ended March 31, 2019.
Paul Benson, President and CEO said, "Pleasingly, we had a strong first quarter with near-record
consolidated production of over 112,000 gold equivalent ounces at lower cash costs, driven by solid
performance at all three operations. Seabee achieved record production at near-record low cash
costs, while Puna production and costs benefited from a full quarter of processing higher grade
Chinchillas ore and increasing by-product credits. As a result, we delivered another quarter of solid
financial performance and are well positioned to achieve record production for 2019."
First Quarter 2019 Highlights:
(All figures are in U.S. dollars unless otherwise noted)
▪ Increased production at lower costs: Achieved quarterly consolidated production of near-
record 112,513 gold equivalent ounces at cash costs of $712 per payable ounce of gold sold.
▪ Solid financial performance: Reported positive income from mine operations at all three
mines totaling $30.2 million, net income of $5.7 million and adjusted attributable net income of
$17.2 million or $0.14 per share.
▪ Low-cost record production at the Seabee Gold Operation: Produced 31,183 ounces of
gold at cash costs of $467 per payable ounce of gold sold, second lowest quarterly cash costs
since acquiring the operation in 2016.
▪ Solid operating performance at the Marigold mine: Mined 17.3 million tonnes of material
with strong gold production of 53,151 ounces at cash costs of $812 per payable ounce of gold
sold.
▪ Doubled silver production with lower costs at Puna Operations: Produced 2.4 million
ounces of silver at lower cash costs of $9.94 per payable ounce of silver sold, as we processed
higher grade silver ore from the Chinchillas mine.
▪ Chinchillas mine ramp up substantially completed: The Chinchillas mine was substantially
completed during the quarter on budget. Focus is now on achieving steady state production.
▪ Completed $230 million convertible notes offering: Issued $230 million aggregate principal
amount of 2.50% unsecured convertible senior notes on March 19, 2019. A portion of the
proceeds was used to repurchase $150 million of our outstanding $265 million 2.875%
convertible notes.
▪ Maintained strong balance sheet: Quarter-end cash increased to $461 million.
SSR Mining Inc. PAGE 2
Marigold mine, U.S.
Three months ended
Operating data
March 31
2019
December 31
2018
September 30
2018
June 30
2018
March 31
2018
Total material mined (kt) 17,295 17,039 21,284 15,958 16,150
Waste removed (kt) 11,767 11,361 14,411 8,083 9,052
Total ore stacked (kt) 5,528 5,679 6,873 7,875 7,099
Strip ratio 2.1 2.0 2.1 1.0 1.3
Mining costs ($/t mined) 1.73 1.86 1.51 1.92 1.80
Gold stacked grade (g/t) 0.34 0.34 0.32 0.42 0.37
Processing costs ($/t processed) 1.20 1.27 1.12 0.86 0.93
Gold recovery (%) 73.0 72.9 72.3 74.4 73.6
General and admin costs ($/t
processed) 0.54
0.51
0.50
0.41
0.42
Gold produced (oz) 53,151 54,306 58,459 49,436 42,960
Gold sold (oz) 55,517 50,550 59,612 46,644 42,078
Realized gold price ($/oz) (1) 1,303 1,227 1,207 1,304 1,331
Cash costs ($/oz) (1) 812 760 711 700 720
AISC ($/oz) (1) 984 995 965 981 954
Financial data ($000s)
Revenue 72,263 61,861 71,848 60,752 55,880
Income from mine operations 12,981 9,977 13,254 14,670 12,312
Capital expenditures (2) 3,167 8,328 25,461 14,481 4,665
Capitalized stripping 2,293 1,208 2,529 850 2,902
Exploration expenditures (3) 3,653 2,096 2,956 3,243 1,914
(1) We report the non-GAAP financial measures of realized gold price, cash costs and all-in sustaining costs ("AISC") per
payable ounce of gold sold to manage and evaluate operating performance at the Marigold mine. See “Cautionary
Note Regarding Non-GAAP Measures”.
(2) Includes expansion capital expenditure of $22 million in 2018.
(3) Includes capitalized and expensed exploration expenditures.
Mine production
In the first quarter of 2019, the Marigold mine produced 53,151 ounces of gold, a 2% decline from
the fourth quarter of 2018 mainly due to wet weather conditions during the period. Gold sales
totaled 55,517 ounces, 10% higher than the previous quarter as w e sold bullion inventory
accumulated in the fourth quarter of 2018.
During the quarter, 17.3 million tonnes of material were mined, a 2% increase compared to the
fourth quarter of 2018, as we commenced mining the next phase of the Mackay pit, which resulted
in shorter haul distances and offset the weather events early in the quarter.
Approximately 5.5 million tonnes of ore were delivered to the heap leach pads at a grade of 0.34 g/t
gold. This compares to 5.7 million tonnes of ore delivered to the heap leach pads at a grade of 0.34
g/t gold in the fourth quarter of 2018. The strip ratio was 2.1:1 for the quarter.
SSR Mining Inc. PAGE 3
Mine operating costs
Cash costs and AISC per payable ounce of gold sold and realized gold price 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 $812 per payable
ounce of gold sold in the first quarter of 2019 was 7% higher than the previous quarter primarily due
to planned lower grades mined in the second half of 2018 and the first quarter of 2019. Total mining
costs of $1.73 per tonne in the first quarter of 2019 were 7% less than in the previous quarter due to
2% more tonnes mined and lower maintenance costs. Processing unit costs were 6% lower in the
first quarter due to a 17% reduction in cyanide costs that resulted from the start up of a new leach
pad. This reduction in costs offset the 3% reduction in ore tonnes stacked. General and
administrative unit costs were 6% higher in the first quarter of 2019 than in the fourth quarter of
2018 primarily due to lower ore tonnes stacked.
Despite the higher cash costs, AISC per payable ounce of gold sold decreased in the first quarter of
2019 to $984 from $995 in the fourth quarter due to decreased capital spending, partially offset by
higher deferred stripping and capitalized exploration.
Mine sales
A total of 55,517 ounces of gold were sold at an average realized gold price of $1,303 per ounce
during the first quarter of 2019, an increase of 10% from the 50,550 ounces of gold sold at an
average realized gold price of $1,227 per ounce during the fourth quarter of 2018.
Exploration
The primary objective for exploration work in 2019 is to explore the north and south extensions of
Red Dot, and the western area of the Mackay pit. Activities in these areas have the potential to
discover additional Mineral Resources due to their proximity to existing Mineral Resources. During
the first quarter, we completed 70 reverse circulation (RC) drillholes for 23,447 meters.
A limited amount of work during the period advanced the Mineral Resource to Mineral Reserve
conversion at Red Dot through the completion of geotechnical and QA/QC core drilling. This work
comprised 12 core holes for 4,893 meters.
During the period, results were received from 40 of the 70 RC holes, with 29 reporting resource
grade intercepts. These results will be compiled later in the year with our existing data.
Looking ahead to the second quarter, RC drilling on the East Basalt and Valmy targets will
commence once ground conditions improve from the wet weather conditions.
SSR Mining Inc. PAGE 4
Seabee Gold Operation, Canada
Three months ended
Operating data
March 31
2019
December 31
2018
September 30
2018
June 30
2018
March 31
2018
Total ore milled (t) 90,756 86,447 88,273 84,010 93,269
Ore milled per day (t/day) 1,008 940 959 923 1,036
Gold mill feed grade (g/t) 8.59 10.20 9.52 7.95 8.95
Mining costs ($/t mined) 52 57 48 60 59
Processing costs ($/t processed) 28 26 26 27 21
Gold recovery (%) 97.2 97.6 97.1 97.3 97.4
General and admin costs ($/t
processed) 53
63
47
62
53
Gold produced (oz) 31,183 20,473 27,831 23,582 23,716
Gold sold (oz) (1) 27,999 21,711 29,175 20,512 20,012
Realized gold price ($/oz) (2) 1,302 1,236 1,210 1,306 1,340
Cash costs ($/oz) (2) 467 502 447 616 481
AISC ($/oz) (2) 973 743 596 854 896
Financial data ($000s)
Revenue 36,431 26,890 35,270 26,706 26,789
Income from mine operations 13,672 7,347 11,061 5,703 6,672
Capital expenditures 8,772 625 968 1,035 4,426
Capitalized development 3,379 2,910 1,812 2,069 2,283
Exploration expenditures (3) 3,172 1,661 2,860 2,745 2,032
(1) Beginning with the first quarter of 2018, the holder of the 3% net smelter return royalty elected to receive its royalty
in-kind and we will no longer report these ounces within gold sold.
(2) We report the non-GAAP financial measures of realized gold price, cash costs and AISC per payable ounce of gold
sold to manage and evaluate operating performance at the Seabee Gold Operation. See “Cautionary Note Regarding
Non-GAAP Measures”.
(3) Includes capitalized and expensed exploration expenditures.
Mine production
Seabee Gold Operation produced a record 31,183 ounces of gold in the first quarter of 2019, largely
due to timing of gold pours at year-end 2018 and aided by the increased mill throughput rate. Gold
sales totaled 27,999 ounces for the first quarter, 29% higher than the fourth quarter of 2018.
The mill achieved an average throughput of 1,008 tonnes per day over the first quarter, a 7%
increase compared to the previous quarter, reflecting a higher mining rate at the Santoy mine. Gold
mill feed grade was 8.59 g/t, in line with plan. Gold recovery remained consistent at 97.2%.
Mine operating costs
Cash costs and AISC per payable ounce of gold sold and realized gold price are non -GAAP
financial measures. Please see “Cautionary Note Regarding Non-GAAP Measures”.
SSR Mining Inc. PAGE 5
Cash costs per payable ounce of gold sold, which include all costs of inventory and refining costs,
were $467 in the first quarter of 2019, 7% lower than the $502 recorded in the fourth quarter of
2018. Lower cash costs were due to lower unit operating costs for mining and general and
administrative as a higher proportion of underground activities were directed to capitalized
development. Costs per tonne mined were $52 in the first quarter of 2019, 9% lower than in the
previous quarter due to higher tonnes mined. Processing costs per tonne were higher than the prior
quarter, while general and administrative unit costs decreased by 16% in the first quarter of 2019
compared to the fourth quarter of 2018 due to adjustments to payroll accruals and lower tonnes
milled in the fourth quarter of 2018. Lower unit costs more than offset lower grades processed.
AISC per payable ounce of gold sold were $973 in the first quarter of 2019, 31% higher than the
$743 in the fourth quarter of 2018 as increased capital expenditures, capital development and
capitalized exploration were somewhat offset by payable ounce of gold sold. This increase is due to
the seasonal nature of our operation whereby a majority of annual sustaining capital items are
purchased in the first quarter of each year for delivery on the ice road for summer construction. In
the first quarter, sustaining capital included approximately $7 million for our planned investment in
underground mining equipment to increase capacity, flexibility and reliability at the Seabee mine.
Mine sales
A total of 27,999 ounces were sold at an average realized gold price of $1,302 per ounce during the
first quarter of 2019, 29% higher than the 21,711 ounces of gold sold in the fourth quarter of 2018,
at an average realized gold price of $1,236 per ounce of gold.
Exploration
For 2019, the Seabee Gold Operation planned 45,000 meters of underground drilling and 23,000
meters of surface drilling with the objective to increase and convert Mineral Resources into Mineral
Reserves near the Santoy Mine. In the first quarter of 2019, we completed 12,576 meters of
underground drilling and 15,561 meters of surface drilling in 24 and 58 drillholes, respectively.
Underground activities for the first quarter of 2019 centered on three targets, including Santoy Gap
hanging wall (“Gap HW”), Santoy 8A vein zone and Santoy 9 A and C vein zones. Surface drilling in
the first quarter focused on three areas including Gap HW, 8A East, Batman Lake and the Fisher
project with 7,639 meters being completed in 20 core drillholes. Several Gap HW holes intersected
visible gold, particularly in the near surface drillholes targeting the up plunge extension of the
structure. We expect that these results will increase Mineral Resources for Gap HW once compiled
with our existing drill data.
On greenfields targets, we received anomalous positive results from two holes at Batman Lake,
located 800 meters south of Santoy mine on the Seabee property, and the last hole completed on
the north Mac showing at the Fisher project. Results from the majority of the Fisher property drilling
are pending assay results.
SSR Mining Inc. PAGE 6
Puna Operations, Argentina (75% interest)
(amounts presented on a 100% basis unless otherwise stated)
Three months ended
Operating data
March 31
2019
December 31
2018
September 30
2018
June 30
2018
March 31
2018
Total material mined (kt) (1) 2,618 897 — — —
Waste removed (kt) (1) 2,469 696 — — —
Strip ratio (1) 16.5 3.5 — — —
Mining costs ($/t mined) (1) 2.74 2.61 — — —
Ore milled (kt) 345 342 308 396 374
Silver mill feed grade (g/t) 235 133 96 110 115
Zinc mill feed grade (%) 0.46 1.14 1.25 0.71 —
Lead mill feed grade (%) (1) 1.07 0.92 — — —
Processing costs ($/t milled) 29.62 22.18 20.87 17.26 15.34
Silver recovery (%) 91.7 81.5 69.9 68.1 67.7
Zinc recovery (%) 47.3 49.5 38.1 31.5 —
Lead recovery (%) (1) 83.6 83.1 — — —
General and admin costs ($/t milled) 8.02 8.16 7.98 7.07 6.33
Silver produced ('000 oz) 2,392 1,189 666 954 938
Silver sold ('000 oz) 927 932 623 1,142 1,064
Zinc produced ('000 lb) (2) 1,640 4,014 3,241 1,520 —
Zinc sold ('000 lb) (2) 3,218 1,983 382 — —
Lead produced ('000 lb) (3) 6,789 2,735 372 — —
Lead sold ('000 lb) (3) 2,977 1,059 — — —
Realized silver price ($/oz) (4) 15.35 14.42 15.45 16.49 16.79
Cash costs ($/oz) (4) 9.94 15.02 17.41 14.73 17.07
AISC ($/oz) (4) 19.76 20.45 22.39 17.66 18.37
Financial Data ($000s)
Revenue 17,556 14,961 7,915 16,570 15,233
Income (loss) from mine operations 3,584 (788 ) (2,440 ) 830 (1,753 )
Capital expenditures 1,543 3,849 2,390 2,652 789
Capitalized stripping 6,191 — — — —
Exploration expenditures (5) 1 21 6 429 6
(1) Data for the fourth quarter of 2018 is for the period subsequent to December 1, 2018, the date upon which
commercial production was declared at the Chinchillas mine.
(2) Data for zinc production and sales relate only to zinc in zinc concentrate.
(3) Data for lead production and sales relate only to lead in lead concentrate.
(4) We report the non-GAAP financial measures of realized silver price, cash costs and AISC per payable ounce of silver
sold to manage and evaluate operating performance at Puna Operations. See “Cautionary Note Regarding Non-
GAAP Measures”.
(5) Does not include exploration or development expenditures of the Chinchillas project.
Mine production
The Chinchillas mine ramp up was substantially completed during the first quarter of 2019. Total
material mined from the Chinchillas open pit increased significantly compared to the previous
quarter as commercial production was achieved on December 1, 2018.
SSR Mining Inc. PAGE 7
As noted in our annual guidance, waste removal is elevated in 2019 as the Chinchillas mine
completes the highwall pushback and commences the next pit phase. This was demonstrated by
the elevated strip ratio in the first quarter and is expected to continue through the third quarter of
2019 with a downward trend to year -end 2019. As a result, the Pirquitas mill will predominantly
process stockpiled Chinchillas ore into the third quarter of 2019, with ore mined in 2019 principally
supplying the Pirquitas mill in the fourth quarter of 2019.
Silver production was 2.4 million ounces for the quarter, an increase of 101% relative to the fourth
quarter of 2018, mainly due to higher silver mill feed grade and silver recovery, as ore was sourced
exclusively from th e Chinchillas mine. Silver sales totaled 0.9 million ounces as concentrate
shipments commenced later in the quarter. On an attributable basis, silver production and sales for
the first quarter totaled 1.8 million ounces and 0.7 million ounces, respectively.
During the first quarter, ore was milled at an average of 3,830 tonnes per day, a 3% increase
compared to ore milled in the previous quarter, mainly due to improvements in mill flotation
pumping. Processed ore in the first quarter of 2019 contained an average silver grade of 235 g/t, a
77% increase compared to the fourth quarter of 2018, due to solely processing higher grade
Chinchillas ore. Metallurgical recoveries of silver, lead and zinc are expected to be variable until we
achieve steady state production. The new tailings pump system at the Pirquitas mill was completed
during the quarter.
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, export
duties and by-product credits, were $9.94 per payable ounce of silver sold in the first quarter of
2019, a 34% decrease from $15.02 per payable ounce of silver sold in the fourth quarter of 2018.
The decrease was primarily due to higher production resulting from higher silver grade of ore
processed with Chinchillas supplying all the processed ore and recognition of higher by -product
credits.
AISC per payable ounce of silver sold in the first quarter of 2019 were $19.76, slightly lower than
the fourth quarter of 2018 as significantly lower cash costs were offset by high sustaining capital per
payable ounce in the first quarter. As discussed above, mining activities in the quarter focused on
waste removal and drove high capitalized stripping costs. This, combined with payable silver
ounces sold well below production due to the required ramp-up in concentrate sales, drove higher
per payable ounce sustaining capital costs in the quarter.
Mine sales
Silver sales totaled 0.9 million ounces and attributable sales were 0.7 million in the first quarter of
2019, comparable to the fourth quarter of 2018. Sales of silver/lead and zinc concentrates
increased through the first quarter and are expected to be in line with production over the remainder
of 2019. Subsequent to the quarter, we entered into annual contracts for all expected 2019
concentrate tonnage, in line with past practice.
SSR Mining Inc. PAGE 8
Exploration
At Puna Operations, exploration activities were limited to the completion of detailed drone magnetic
data at Chinchillas and the Pirquitas mine areas. Magnetic inversions have been completed and
contribute to target selection at both properties.
In 2018, we evaluated the potential for an underground mine at the Pirquitas deposit to provide
supplemental ore to the Pirquitas mill. The study confirmed a technically feasible and economic
project; however, with a return below our investment thresholds at current metal prices. We have
budgeted $1 million in 2019 fo r a 3,000 -meter drill program to test for extensions to the
mineralization that could have a positive impact on the project economics. We plan to commence
this drilling in the second quarter of 2019.
Chinchillas project, Argentina
During the first quarter, ore feed to the Pirquitas plant has been exclusively from the Chinchillas
mine.
The in-pit tailings pumping system was commissioned during the quarter and tailings deposition to
the pit is ongoing.
The Chinchillas truck shop structure is complete with equipping remaining in process. Three truck
bays are being used for operating maintenance while works are completed.
Road upgrades and improvements were completed during the quarter. Infrastructure and diesel
fueling station construction will continue into the second quarter of 2019 with remaining expected
capital expenditures totaling $8 million. The project remains on budget.