Ssr Mining Reports Fourth Quarter and Full Year 2019 Production Results and 2020 Operating Guidance
News Release 20-02
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
January 15, 2020
SSR MINING REPORTS FOURTH QUARTER AND FULL YEAR 2019 PRODUCTION
RESULTS AND 2020 OPERATING GUIDANCE
VANCOUVER, B.C. – SSR Mining Inc. (NASDAQ: SSRM) (TSX: SSRM) (“SSR Mining”) reports
fourth quarter and 2019 operating results. Additionally, we are providing 2020 operating guidance.
Fourth Quarter and Full Year 2019 Operating Highlights
(All figures are in U.S. dollars unless otherwise noted)
▪ Record annual gold equivalent production : Our three operations produced a record
421,906 consolidated gold equivalent ounces in 2019 including 106,208 gold equivalent
ounces produced in the fourth quarter. Each operation exceeded the top end of production
guidance for the year.
▪ Continued operating strength at Marigold: In 2019, Marigold produced 220,227 ounces of
gold, a record in its 30 th year of continuous operation and above the top end of annual
guidance. Fourth quarter production was 59,186 gold ounces.
▪ Seabee gold production growth: Higher gold grade and recovery led to the site’s fourth
consecutive annual production record of 112,137 ounces of gold, exceeding the top end of
guidance.
▪ Puna achieves steady-state performance: Annual production of 7.7 million ounces of silver
exceeded the top end of guidance , with fourth quarter milling rates and recoveries showing
significant improvements.
2020 Operating Guidance Highlights
▪ Strong production: At the mid -point of guidance , we expect to produce approximately
425,000 gold equivalent ounces, with anticipated annual production records at Marigold and
Seabee.
▪ Robust margins: Gold equivalent cash costs at the mid-point of guidance are expected to be
$740 per payable ounce sold (1).
▪ Capital investments focus on infrastructure to support longer mine lives and lowering
unit costs : At Marigold , investments include build ing an additional leach pad and
replacement of higher cost haul trucks. At Seabee, our tailings facility expansion, anticipated
to be completed in 2021, is expected to provide capacity into the early 2030s at current mill
rates.
SSR Mining Inc.
PAGE 2
▪ Exploration aims for added Mineral Resources and new discoveries: Reverse circulation
drilling at Marigold and Trenton Canyon is focused on near-surface Mineral Resources, while
diamond drilling targeting high-grade sulphides has already commenced at Trenton Canyon.
At Seabee, the priorities are Santoy Gap Hanging Wall and testing regional targets identified
during the 2019 field program.
(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 Seabe e Gold Operation and Puna Operations. Please see “Cautionary
Note Regarding Non-GAAP Measures”.
Paul Benson, President and CEO said, “ SSR Mining achieved record production again in 2019
due to solid operating performance at each of our three operations. Most importantly , the
corporate production record was accomplished safely. We carry that momentum into 2020 where
we anticipate another strong year of gold equivalent production. At Marigold, gold grades are
anticipated to increase compared to 2019 resulting in higher production and robust margins. At
Seabee, increased mill throughput and strong ore grades are anticipated to drive another record
year of gold production. Together with our exploration programs, we anticipate another successful
year with our operating performance driving cash flow and generating value for our shareholders.”
Marigold Mine, U.S.
Q4 2019 Q3 2019 % Change (1) FY 2019 FY 2018 % Change (1)
Total material mined kt 18,457 19,033 (3.0%) 74,040 70,431 5.1%
Waste removed kt 11,736 12,676 (7.4%) 48,364 42,906 12.7%
Ore to leach pad kt 6,721 6,357 5.7% 25,676 27,525 (6.7%)
Strip ratio w/o 1.7 2.0 (12.4%) 1.9 1.6 20.8%
Gold grade to leach pad g/t 0.36 0.51 (29.4%) 0.40 0.37 8.1%
Gold recovery % 76 77 (1.3%) 75 73 2.7%
Gold produced oz 59,186 52,968 11.7% 220,227 205,160 7.3%
Gold sold oz 61,088 50,650 20.6% 226,957 198,884 14.1%
Note:
(1) Percent changes are calculated using rounded numbers presented in the table.
In 2019, the Marigold mine produced 220,227 ounces of gold, surpassing the upper end of our
revised production guidance. This compares to 205,160 ounces of gold produced in 201 8.
Production in 2019 benefited from higher grades and ore stacking in the fourth quart er of 2018.
Gold sales for the year were 226,957 ounces.
Material mined during the year totaled 74.0 million tonnes, a 5% increase as compared to 2018.
Marigold stacked 25.7 million tonnes of ore on the leach pads.
SSR Mining Inc.
PAGE 3
In the fourth quarter of 2019, Marigold produced 59,186 ounces of gold, representing a 12%
increase as compared to the previous quarter due largely to the higher grade ore that was stacked
in the third quarter. Gold sales totaled 61,088 ounces for the quarter.
During the fourth quarter , 18.5 million tonnes of material were mined, down 3% from the third
quarter due mainly to planned maintenance of one hydraulic shovel and longer haulage cycles
associated with the increased ore stacked . The new leach pad cell was commissioned on
schedule and on budget with ore stacking commencing in the fourth quarter of 2019.
Approximately 6.7 million tonnes of ore were delivered to the heap leach pads at a gold grade of
0.36 g/t in the fourth quarter. This compares to 6. 4 million tonnes of ore delivered to the leach
pads at a gold grade of 0. 51 g/t in the third quarter. Gold grade mined in the fourth quarter was
29% lower than the third quarter due to planned mining of lower grade material in the Mackay pit.
The strip ratio declined to 1.7:1 in the quarter, a 12% reduction compared to the previous quarter.
Seabee Gold Operation, Canada
Q4 2019 Q3 2019 % Change (1) FY 2019 FY 2018 % Change (1)
Total ore milled t 87,394 77,465 12.8% 344,040 352,000 (2.3%)
Ore milled per day t/day 950 842 12.8% 943 964 (2.2%)
Gold mill feed grade g/t 7.89 12.39 (36.3%) 9.56 9.16 4.4%
Gold recovery % 97.9 98.8 (0.9%) 98.2 97.4 0.8%
Gold produced oz 22,069 32,345 (31.8%) 112,137 95,602 17.3%
Gold sold (2) oz 24,362 28,278 (13.8%) 104,915 91,410 14.8%
Notes:
(1) Percent changes are calculated using rounded numbers presented in the table.
(2) Beginning with the first quarter of 2018, the holder of a 3% net smelter returns royalty elected to receive its royalty in-kind. These
ounces are not reported as gold ounces sold.
The Seabee Gold Operation produced 112,137 ounces of gold in 2019, an annual production
record resulting from higher gold grade s, improved recoveries and drawdown of in -process
inventories. Production in 2019 increased 17% compared to the 95,602 ounces produced in 2018.
A total of 104,915 ounces of gold were sold during the year.
In 2019, the operation milled 344,040 tonnes of ore, a 2% decrease compa red to 2018. During
the year, average gold mill feed grade was 9. 56 g/t, 4% higher compared to the average gold
grade milled in 2018.
In the fourth quarter of 201 9, the operation produced 22,069 ounces of gold, a 32% decrease
from the third quarter primarily due to lower gold grades more than offsetting higher milling rates.
Gold sales totaled 24,362 ounces during the quarter.
During the fourth quarter, 87,394 tonnes of ore were milled at an average gold grade of 7.89 g/t
and recovery of 97.9%. This compares to 77,465 tonnes of ore milled at an average gold grade
of 12.39 g/t and recovery of 98.8% in the third quarter of 2019.
SSR Mining Inc.
PAGE 4
Puna Operations, Argentina (1)
Q4 2019 Q3 2019 % Change (2) FY 2019 FY 2018 % Change (2)
Total material mined kt 3,244 3,116 4.1% 12,295 897 (5) NA
Waste removed kt 2,725 2,531 7.7% 10,851 696 (5) NA
Strip ratio w/o 5.3 4.3 21.4% 7.5 3.5 (5) 117.0%
Ore milled kt 400 336 19.0% 1,393 1,420 (1.9%)
Silver mill feed grade g/t 174 165 5.5% 184 114 61.4%
Lead mill feed grade % 0.99 0.81 22.2% 0.89 0.92 (5) (3.3%)
Zinc mill feed grade % 0.63 0.60 5.0% 0.54 0.84 (35.7%)
Silver recovery % 95.1 93.5 1.7% 93.2 72.1 29.3%
Lead recovery % 91.9 88.1 4.3% 85.8 83.1 (5) 3.2%
Zinc recovery % 54.3 49.3 10.1% 49.2 39.3 25.2%
Silver produced koz 2,132 1,664 28.1% 7,674 3,747 104.8%
Silver sold koz 2,584 1,505 71.7% 7,694 3,761 104.6%
Lead produced (3) Klb 7,985 5,304 50.5% 23,958 3,107 NA
Lead sold (3) Klb 9,371 4,119 127.5% 24,118 1,059 NA
Zinc produced (4) Klb 3,007 2,206 36.3% 8,392 8,775 (4.4%)
Zinc sold (4) Klb 3,067 2,030 51.1% 14,072 2,365 495.0%
Notes:
(1) Figures are on 100% basis. On September 18, 2019, we acquired the remaining 25% interest in Puna Operations Inc. from
Golden Arrow Resources Corporation to consolidate our ownership.
(2) Percent changes are calculated using rounded numbers presented in the table.
(3) Data for lead production and sales relate only to lead in lead concentrate.
(4) Data for zinc production and sales relate only to zinc in zinc concentrate.
(5) Data is for the period subsequent to December 1, 2018, the date upon which commercial production was declared at the
Chinchillas mine.
In 2019, Puna Operations produced a total of 7.7 million ounces of silver, 24.0 million pounds of
lead and 8.4 million pounds of zinc. After declaring commercial production at Chinchillas in
December 2018, 2019 represents the first full year of Puna Operations milling Chinchillas open
pit ore. Silver sold for the year totaled 7.7 million ounces.
During the year, ore was milled at an aver age of 3,819 tonnes per day. Ore milled contained an
average silver grade of 184 g/t. The average silver recovery was 93.2%, a 29% improvement as
compared to 2018 when the operation milled primarily low-grade stockpiled ore.
SSR Mining Inc.
PAGE 5
In the fourth quarter of 2019, silver production was 2.1 million ounces, an increase of 28% relative
to the third quarter, due to increased mill throughput and processing of higher-grade ore. Silver
sales totaled 2.6 million ounces.
During the fourth quarter, ore was milled at an aver age of 4,349 tonnes per day. Processed ore
in the fourth quarter contained an average silver grade of 174 g/t, a 6% increase as compared to
the third quarter of 2019. The average silver recovery in the fourth quarter was 95.1% as mill
performance continues to benefit from our Operational Excellence initiatives.
Outlook
This section of the news release provides management's production, cost, capital, exploration
and development expenditure estimates for 2020. Please see "Cautionary Note Regarding
Forward-Looking Statements."
Operating Guidance Marigold mine
Seabee Gold
Operation
Puna
Operations
Gold Production oz 225,000 - 240,000 110,000 - 120,000 —
Silver Production Moz — — 6.0 - 7.0
Lead Production Mlb — — 21.0 - 24.0
Zinc Production Mlb — — 7.0 - 9.0
Cash Cost per Payable Ounce Sold (1) $/oz 780 - 810 460 - 500 10.50 - 12.00
Capital Expenditures
Sustaining $M 60 15 15
Growth $M — 5 6
Capitalized Stripping / Capitalized
Development $M 20 12 12
Exploration Expenditures
Sustaining $M 4 1 —
Growth $M 8 11 1
Note:
(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”.
In 2020, we expect to produce on a consolidated basis, at the midpoint of guidance, approximately
425,000 gold equivalent ounces at gold equivalent cash costs of $740 per payable ounce sold.
At the Marigold mine, gold production is expected to increase in 2020 compared to 2019. Marigold
is well-positioned for another record production year as the mine benefits from an additional
hydraulic loading unit purchased in 2019 , expected to be commissioned in early 2020 , and
continued Operational Excellence efficiencies. Production is weighted toward the second half of
the year as a result of mine sequencing and access to higher grade ore. Capital investments are
expected to total $60 million, including $12 million for two replacement haul trucks and $15 million
for an additional leach pad to be built in 2020 . The accelerated build of leach pad capacity will
ensure the operation can maintain leach cycle times and gold recoveries at higher ore stacking
rates. Capitalized stripping is expected to total $20 million with the majority incurred through the
first three quarters of the year. Exploration expenditures totaling $12 million are expected to focus
on drill programs at Mackay, Basalt, Valmy and Trenton Canyon with the goals of adding Mineral
Reserves and defining additional Mineral Resources within these areas. Exploration expenditures
include $2 million for drill testing Trenton Canyon’s sulphide targets.
SSR Mining Inc.
PAGE 6
At the Seabee Gold Operation, we expect to deliver another record gold production year in 2020,
as we continue executing our plan of increasing mining rates to support higher sustained mill
throughput. Production is weighted to the first half of the year due to higher grade ore access.
Cash costs are expected to remain low between $460 to $500 per payable ounce of gold sol d.
Sustaining capital investment s remain focused on mining equipment and ventilation, with $5
million planned for underground and surface equipment to enable higher mine production. Due to
continued exploration success at Seabee, in 2019 we commenced an expansion of tailings
storage capacity at the mine. In 2020, investment in the tailings facility expansion is estimated to
total $12 million as phase 1 of the project is completed and phase 2 is initiated , with completion
expected in 2021. Once completed, Seabee is expected to have tailings capacity for current mill
throughput levels into the early 2030s . Non-tailings facility-related capital expenditures are
concentrated in the first quarter of 2020 as equipment is delivered over the ice road. Expected
capitalized development expenditures of $12 million support higher mining rates and reflects the
development strategy for the Santoy complex. Exploration expenditures at Seabee are estimated
to total $12 million with a focus on expansion and definition of Santoy Gap Hanging Wall and
surface drill programs at the Seabee and Fisher properties following up on targets identified in
2019.
At Puna Operations, we expect to produce between 6.0 and 7.0 million ounces of silver at cash
costs net of by-products of between $10.50 and $12.00 per payable silver ounce sold. Production
is weighted to the first half of the year due to higher grades, with the majority of capital stripping
expected in the second half of the year. Sustaining c apital investments of $ 15 million relate
principally to maintenance of mine, mill and power generating equipment. A $6 million investment
to replace contracted ore transportation is also planned as the operation focuses on lowering unit
operating costs.
At the Pitarrilla project, located in Mexico, we plan to spend $4 million in 2020 as part of a two -
year $10 million program related to extending an existing decline to provide drill access to the
underground Mineral Resources . An improved geological model from work completed in 2019
indicates strong potential to better define known, high-grade mineralized veining associated with
steeply dipping rhyolite dyke contacts. Extending the underground ramp provides access for
tighter spaced drilling at better orientations to test the rhyolite dykes and veins for continuity . If
infill drilling confirms the continuity of high-grade mineralized structures, there would be potential
to enhance the grades of existing Mineral Resources.
At the San Luis project, located in Peru, in 2020 we expect to commence a detailed mapping
program in the area of the existing high-grade gold-silver Mineral Resources.
Our 2013 convertible notes, of which $115 million remain outstanding, provide for investors to put
the notes to us for repurchase at par, plus accrued and unpaid interest thereon, if any, on February
1, 2020. Any notes not put to us by such date are callable by us, at our option, to repurchase from
investors at par, plus accrued and unpaid interest thereon, if any, at any time after February 1,
2020.
Gold equivalent figures for our 20 20 operating guidance are based on a gold -to-silver ratio of
86:1. Cash costs and capital expenditures guidance is based on an oil price of $60 per barrel and
an exchange rate of 1. 30 Canadian dollars to one U.S. dollar. Royalty costs at Marigold were
calculated using a gold price of $1,550 per ounce.
SSR Mining Inc.
PAGE 7
Qualified Persons
The scientific and technical data contained in this news release relating to the Marigold mine has
been reviewed and approved by Greg Gibson, P.E., a qualified person under National Instrument
43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) and General Manager at the
Marigold mine. The scientific and technical data contained in this news release relating to the
Seabee Gold Operation has been reviewed and approved by Cameron Chapman, P.Eng., a
qualified person under NI 43 -101 a nd General Manager at the Seabee Gold Operation. The
scientific and technical data contained in this news release relating to Puna Operations has been
reviewed and approved by Robert Gill, P.Eng., a qualified person under NI 43 -101 and General
Manager at Puna Operations.
About SSR Mining
SSR Mining Inc. is a Canadian-based precious metals producer with three operations, including
the Marigold mine in Nevada, U.S., the Seabee Gold Operation in Saskatchewan, Canada and
Puna Operations in Jujuy, Argentina. We also have two feasibility stage p rojects and a portfolio
of exploration properties in North and South America. 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 e xploration and acquisition of assets for
accretive growth, while maintaining financial strength.
SOURCE: SSR Mining Inc.
For further information contact:
W. John DeCooman, Jr.
Senior Vice President, Business Development and Strategy
SSR Mining Inc.
Vancouver, BC
Toll free: +1 (888) 338-0046
All others: +1 (604) 689-3846
E-Mail: [email protected]
To receive SSR Mining's news releases by e-mail, please register using the SSR Mining website
at www.ssrmining.com.
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward -looking information within the meaning of Canadian securities laws and forward -
looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 (collectively,
“forward-looking statements”) concerning the anticipated developments in our operations in future periods, and other
events or conditions that may occur or exist in the future . All statements, other than statements of historical fact, are
forward-looking statements.
Generally, forward-looking statements can be identified by the use of words or phrases such as “expects,” “anticipates,”
“plans,” “projects,” “estimates,” “assumes,” “intends,” “strategy,” “goals,” “objectives,” “potential,” or variations thereof ,
or stating that certain actions, events or results “may,” “could,” “would,” “might” or “will” be taken, occur or be achieved,
or the negative of any of these terms or similar expressions. The forward-looking statements in this news release relate
to, among other t hings: future production of gold, silver and other metals; the prices of gold, silver and other metals;
the effects of laws, regulations and government policies affecting our operations or potential future operations; future
successful development of our projects; the sufficiency of our current working capital, anticipated operating cash flow
or our ability to raise necessary funds; estimated production rates for gold, silver and other metals produced by us;
SSR Mining Inc.
PAGE 8
timing of production and the cash costs and total costs of production at the Marigold mine, the Seabee Gold Operation
and Puna Operations; our ability to convert Inferred Mineral Resources to Indicated Mineral Resources and to convert
Mineral Resources into Mineral Reserves; timing of production and production levels at the Marigold mine, the Seabee
Gold Operation and Puna Operations; achieving production records in 2020 at each of the Marigold mine and the
Seabee Gold Operation; expected increase in gold grades at the Marigold mine in 2020; expected incr ease in mill
throughput at the Seabee Gold Operation in 2020; expected capital, exploration and development expenditures; timing
and focus of our exploration and development programs; expected timing of the commissioning of the additional
hydraulic loading unit at the Marigold mine in early 2020 and the construction of an additional leach pad at the Marigold
mine in 2020; expected cost and timing of completion of the first and second phase of the expansion to tailings capacity
at the Seabee Gold Operation i n 20 20 and 2021, respectively ; upon completion of the tailings facility expansion,
expected tailings capacity for current mill throughput levels at the Seabee Gold Operation into the early 2030s; ongoing
or future development plans and capital replacement, improvement or remediation programs; the estimates of expected
or anticipated economic returns from our mining projects, including future sales of metals, concentrate or other products
produced by us; our ability to achieve our production and cost guidanc e; and our plans and expectations for our
properties and operations.
These forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors
that could cause actual events or results to differ from those expr essed or implied, including, without limitation, the
following: uncertainty of production, development plans and cost estimates for the Marigold mine, the Seabee Gold
Operation, Puna Operations and our projects; our ability to replace Mineral Reserves; com modity price fluctuations;
political or economic instability and unexpected regulatory changes; currency fluctuations; the possibility of future
losses; general economic conditions; counterparty and market risks related to the sale of our concentrate and m etals;
uncertainty in the accuracy of Mineral Reserves and Mineral Resources estimates and in our ability to extract
mineralization profitably; differences in U.S. and Canadian practices for reporting Mineral Reserves and Mineral
Resources; lack of suitable infrastructure or damage to existing infrastructure; future development risks, including start-
up delays and cost overruns; our ability to obtain adequate financing for further exploration and development programs
and opportunities; uncertainty in acquiring additional commercially mineable mineral rights; delays in obtaining or failure
to obtain governmental permits, or non-compliance with our permits; our ability to attract and retain qualified personnel
and management; the impact of governmental regulat ions, including health, safety and environmental regulations,
including increased costs and restrictions on operations due to compliance with such regulations; unpredictable risks
and hazards related to the development and operation of a mine or mineral pr operty that are beyond our control;
reclamation and closure requirements for our mineral properties; potential labour unrest, including labour actions by
our unionized employees at Puna Operations; indigenous peoples' title claims and rights to consultatio n and
accommodation may affect our existing operations as well as development projects and future acquisitions; certain
transportation risks that could have a negative impact on our ability to operate; assessments by taxation authorities in
multiple jurisdictions; recoverability of value added tax and significant delays in the collection process in Argentina;
claims and legal proceedings, including adverse rulings in litigation against us and/or our directors or officers;
compliance with anti-corruption laws and internal controls, and increased regulatory compliance costs; complying with
emerging climate change regulations and the impact of climate change; fully realizing our interest in deferred
consideration received in connection with recent divestitures; fully realizing the value of our shareholdings in our
marketable securities, due to changes in price, liquidity or disposal cost of such marketable securities; uncertainties
related to title to our mineral properties and the ability to obtain surface rights; the sufficiency of our insurance coverage;
civil disobedience in the countries where our mineral properties are located; operational safety and security risks;
actions required to be taken by us under human rights law; competition in the mining industr y for mineral properties;
our ability to complete and successfully integrate an announced acquisition; reputation loss resulting in decreased
investor confidence, increased challenges in developing and maintaining community relations and an impediment to
our overall ability to advance our projects; an event of default under our 2013 convertible notes or our 2019 convertible
notes may significantly reduce our liquidity and adversely affect our business; failure to meet covenants under our
senior secured revolving credit facility; information systems security threats; conflicts of interest that could arise from
certain of our directors' and officers' involvement with other natural resource companies; other risks related to our
common shares; and those other various risks and uncertainties identified under the heading "Risk Factors" in our most
recent Annual Information Form filed with the Canadian securities regulatory authorities and included in our most recent
Annual Report on Form 40-F filed with the U.S. Securities and Exchange Commission ("SEC").
This list is not exhaustive of the factors that may affect any of our forward -looking statements. Our forward -looking
statements are based on what our management currently considers to be reasonable assumptions, beliefs,
expectations and opinions based on the information currently available to it. Assumptions have been made regarding,
among other things, our ability to carry on our exploration and development activities, our ability to meet our obligations
under our property agreements, the timing and resul ts of drilling programs, the discovery of Mineral Resources and
Mineral Reserves on our mineral properties, the timely receipt of required approvals and permits, including those
approvals and permits required for successful project permitting, construction and operation of our projects, the price
of the minerals we produce, the costs of operating and exploration expenditures, our ability to operate in a safe, efficient
and effective manner, our ability to obtain financing as and when required and on reasona ble terms, our ability to
continue operating the Marigold mine, the Seabee Gold Operation and Puna Operations, dilution and mining recovery