Ssr Mining Reports Fourth Quarter and Full-Year 2023 Results
SSR Mining Inc.
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News Release
February 27, 2024
SSR MINING REPORTS FOURTH QUARTER AND FULL-YEAR 2023 RESULTS
DENVER - SSR Mining Inc. (Nasdaq/TSX: SSRM, ASX: SSR) ("SSR Mining" or the “Company") reports consolidated
financial results for the fourth quarter and full-year ended December 31, 2023. Subsequent to year-end 2023, on February
13, 2024, operations at Çöpler were suspended as a result of a significant slip on the heap leach pad (the "Çöpler Incident").
Nine individuals remain unaccounted for as a result . The Company is not, at this time, able to estimate or predict when it
will resume operations at Çöpler. The Company is assessing the potential impacts on the business, cash flows, results of
operations and financial condition.
Rod Antal, Executive Chairman of SSR Mining, said, “Right now, our attention is focused at Çöpler. The events of February
13, 2024 were tragic and overshadow today’s results. We are heartbroken and sympathize with what we know is an
extraordinarily stressful time for the families, friends and colleagues of the nine missing personnel.
We would like to recognize the overwhelming support by a number of government agencies who are providing significant
resources at Çöpler. Our teams are supporting the various government agencies to ensure that areas impacted are safe to
continue the recovery and containment work. Finally, initial discussions and technical support is progressing to agree on the
ultimate permanent storage location for the heap leach material that has been displaced from the heap leach pad.
Due to the evolving situation at our Çöpler mine, we are retracting our previously issued 2024 and long -term guidance
forecasts for Çöpler and Türkiye. We are also suspending our quarterly dividend payments and the automatic share
purchase plan (“ASPP”). While we continue to assess the impact of the Çöpler Incident, with a year-end 2023 cash balance
of nearly $500 million and our operations at Marigold, Seabee and Puna continuing to generate cash flow, we do not, at this
time, anticipate any near -term liquidity concerns. This is a challenging time , and we continue to offer our support to all
individuals impacted by the events of February 13, 2024.”
Detailed disclosure related to the Çöpler Incident is included in the Company’s 10-K filed today. SSR Mining has also created
a page on its website where it will be providing further updates on the situation at Çöpler.
The Company reports non-GAAP financial measures including adjusted attributable net income, adjusted attributable net income per share, cash generate d by
operating activities before working capital adjustments, free cash flow, free cash flow before changes in working capital, net cash (debt), cash costs and AISC per
ounce sold (a common measure in the mining industry), to manage and evaluate its operating performance at its mines. See "Cautionary Note Regarding Non-GAAP
Financial Measures" for an explanation of these f inancial measures and a reconciliation of these financial measures to the most comparable GAAP financial
measures.
SSR Mining Inc.
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Fourth Quarter and Full-Year 2023 Results & Subsequent Events: (1)
(All figures are in U.S. dollars unless otherwise noted; 2023 results do not reflect any impact of the Çöpler Incident)
▪ Çöpler Incident: On February 13, 2024, the Company suspended operations at Çöpler as a result of a significant slip
on the heap leach pad. At this time, nine personnel remain unaccounted for . The Turkish government is conducting
environmental monitoring of surface water, groundwater, soil and air quality in the region with respect to potential
contamination. Public comments from the Turkish government indicate that , to date, the testing results have been
negative with respect to potential contamination in the locations being monitored. Containment and remediation efforts
are ongoing, which are being directed by the Turkish government and supported by the Company, with an initial focus
on removing heap leach material from the Sabırlı Valley and relocating it to a permanent storage location. The Company
is in the process of evaluating the estimated remediation costs and anticipates recording a remediation liability during
the first quarter of 2024. We also anticipate recording an impairment of inventory and specific assets directly impacted
by the Çöpler Incident and will evaluate the Çöpler long -lived asset group for additional impairment during the first
quarter of 2024. As of December 31, 2023, the Çöpler leach pad inventory of $73.3 million represents 19% and 10% of
Çöpler's total inventory and of the Company's total inventory, respectively. As of December 31, 2023, the Çöpler mineral,
properties, plant and equipment ("MPP&E") related to the leach pad of $33.1 million represents 1.0% and 0.8% of
Çöpler's total MPP&E and of the Company's total MPP&E, respectively.
▪ Board of Directors: In light of the Çöpler Incident, Michael Anglin, currently our Lead Independent Director, who had
previously advised the Company of his decision to retire and not stand for re -election to the Board, is expected to
postpone his retirement and stand for re-election at the Company’s 2024 Annual Meeting of Shareholders. Mr. Anglin
has served on the Board since 2008 and brings more than 30 years of industry experience to his role. Mr. Anglin’s
continued presence during this period will provide important experience and leadership on the Board.
▪ Operating results: Fourth quarter 2023 production was 211,226 gold equivalent ounces at cost of sales of $1,064 per
gold equivalent ounce and AISC of $ 1,326 per gold equivalent ounce. For the twelve months ending December 31,
2023, SSR Mining reported production of 706,894 gold equivalent ounces at cost of sales of $1,141 per gold equivalent
ounce and AISC of $1,461 per gold equivalent ounce. Production was previously reported in mid -January 2024 and
was in line with 2023 guidance.
▪ Financial results: Attributable net loss in the fourth quarter of 2023 was $217.8 million, or $1.07 per diluted share,
largely attributed to a non-cash impairment at Çöpler as a result of the Company removing C2 Mineral Resources from
its consolidated Mineral Reserves and Mineral Resources (“MRMR”) statement. Adjusted attributable net income in the
fourth quarter was $127.1 million, or $0.59 per diluted share. In the fourth quarter of 2023 operating cash flow was
$203.2 million, or $218.4 million before working capital adjustments, and free cash flow was $144.4 million, or $159.6
million before changes in working capital. For the twelve months ending December 31, 2023, attributable net loss was
$98.0 million, or $0.48 per diluted share and adjusted attributable net income was $ 276.5 million, or $1.29 per diluted
share. For the twelve months ending December 31, 2023, operating cash flow was $421.7 million, or $ 555.9 million
before working capital adjustments, and free cash flow was $198.3 million, or $332.5 million before changes in working
capital.
▪ Capital returns program: For the twelve months ending December 31, 2023, SSR Mining returned $114.0 million to
shareholders, a capital returns yield of approximately 5.0%. Capital returns were composed of $57.7 million in quarterly
cash dividend payments and $56.3 million in share repurchases. As a result of the Çöpler Incident, the Company
suspended its dividend and share repurchases.
▪ Year-end cash and liquidity position: As of December 31, 2023, SSR Mining had a cash and cash equivalent balance
of $492.4 million and a non-GAAP net cash position of $261.6 million.
SSR Mining Inc.
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▪ Technical Report Summaries published for all producing assets: On February 13, 2024, the Company released
Technical Report Summaries (“TRS”) for Marigold, Puna, and Seabee. The TRS are in compliance with Subpart 1300
of Regulation SK. These reports include refreshed operating and economic assumptions for each asset. The Company
also released a TRS for Çöpler, which had an effective date of October 31, 2023 and as such does not reflect the impact
of the Çöpler incident. The operating and economic assumptions in the TRS are being evaluated.
▪ Çöpler 2023 operating results : Gold production was 57,126 ounces in the fourth quarter of 2023 at cost of sales of
$1,160 per payable ounce and AISC of $1,535 per payable ounce. During the fourth quarter of 2023, Çöpler recovered
approximately 10,000 ounces of gold from Çakmaktepe, which delivered first production in late September 2023. For
the twelve months ending December 31, 2023, gold production for Çöpler was 220,999 ounces at full-year cost of sales
of $1,191 per payable ounce and AISC of $ 1,433 per payable ounce. As a result of the Çöpler Incident, all operations
at the mine are suspended.
▪ Marigold 2023 operating results: Gold production was 82,794 ounces in the fourth quarter of 2023 at cost of sales of
$1,095 per payable ounce and AISC of $1,170 per payable ounce. For the twelve months ending December 31, 2023,
gold production for Marigold was 278,488 ounces, a record for the operation over its more than 30 -year operating
history. For the full -year, the Company reported cost of sales of $ 1,047 per payable ounce and AISC of $ 1,349 per
payable ounce.
▪ Seabee 2023 operating results: Gold production was 38,757 ounces in the fourth quarter of 2023, reflecting processed
grades of over 10.1 g/t in the quarter, at cost of sales of $666 per payable ounce and AISC of $916 per payable ounce.
Underground mining and plant throughput averaged approximately 1,300 tonnes per day during the fourth quarter of
2023, highlighting the ongoing success of continuous improvement initiatives at the mine. For the twelve months ending
December 31, 2023, gold production for Seabe e was 90,777 ounces at cost of sales of $ 991 per payable ounce and
AISC of $1,427 per payable ounce.
▪ Puna 2023 operating results: Silver production was 2.8 million ounces in the fourth quarter of 2023 at cost of sales of
$14.07 per payable ounce and AISC of $15.51 per payable ounce. For the twelve months ending December 31, 2023,
Puna’s silver production was 9.7 million ounces, exceeding the full-year guidance range, at cost of sales of $16.49 per
payable ounce and AISC of $15.37 per payable ounce, below the full-year guidance range.
▪ Automatic Share Purchase Plan Termination: The Company announces that, in connection with its normal course
issuer bid (the “NCIB”), it has terminated its previously announced automatic share purchase plan (the “ASPP”) with a
designated broker, pursuant to which the designated broker could acquire common shares of the Company based on
pre-established purchasing parameters, without further instructions by the Company, in compliance with the rules of the
Toronto Stock Exchange. The termination is effective March 1, 2024. The Company confirms that at the time of sending
the notice of termination of the ASPP, it did not possess knowledge of any material fact or material change about the
Company or any of its securities that has not been generally disclosed.
(1) The Company reports non-GAAP financial measures including adjusted attributable net income, adjusted attributable net income per share, cash generated by
operating activities before working capital adjustments, free cash flow, free cash flow before changes in working capital, net cash (debt), cash costs and AISC
per ounce sold (a common measure in the mining industry), 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 the most comparable GAAP
financial measures.
SSR Mining Inc.
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Select Updated 2024 Guidance Outlook
As a result of the Çöpler Incident, the Company is retracting all previously issued operating and cost guidance for Çöpler
and its operations and projects in Türkiye. SSR Mining will revisit the forward-looking guidance at an appropriate future
date.
Table 1: Full-Year 2024 Outlook (Excluding Çöpler and Hod Maden)
Operating Guidance (2) Marigold Seabee Puna Corporate
Gold Production koz 155 — 175 75 — 85 — —
Silver Production Moz — — 8.75 — 9.50 —
Gold Equivalent Production koz AuEq 155 — 175 75 — 85 110 — 120 —
Cost of Sales per Ounce (3) $/oz 1,300 — 1,340 990 — 1,030 16.50 — 18.00 —
Cash Cost per Ounce (4) $/oz 1,300 — 1,340 990 — 1,030 11.50 — 13.00 —
Sustaining Capital Expenditures (5) $M 37 40 17 —
Reclamation Cost Accretion & Amortization $M 3 3 13 —
General & Administrative $M — — — 60 — 65
All-In Sustaining Cost per Ounce (4) $/oz 1,535 — 1,575 1,495 — 1,535 14.75 — 16.25 —
Growth Capital $M 1 2 — —
Growth Exploration and Resource Development Expense (6) $M 9 15 10 4
Total Growth Expenditures $M 11 17 10 4
(2) Figures may not add due to rounding.
(3) Excludes depreciation, depletion, and amortization.
(4) SSR Mining reports the non -GAAP financial measures of cash costs and AISC per payable ounce of gold and silver sold to manage and evaluate operating
performance at Çöpler, Marigold, Seabee and Puna. See “Cautionary Note Regarding Non-GAAP Measures” at the end of this press release for an explanation
of these financial measures and a reconciliation of these financial measures to cost of sales, previously referred to as production costs, which is the most
comparable GAAP financial measures. AISC includes reclamation cost accretion and amortization and certain lease payments.
(5) Includes sustaining exploration and evaluation expenditures. Includes approximately $1 million of expensed sustaining exploration at Marigold and $24 million in
underground mine development at Seabee.
(6) All growth exploration and resource development spend is expensed. Growth exploration includes project studies and evaluation.
SSR Mining Inc.
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Financial and Operating Highlights
A summary of the Company's consolidated financial and operating results for the three and twelve months ended
December 31, 2023 and December 31, 2022 are presented below:
Three Months Ended Twelve Months Ended
(in thousands of US dollars, except per share data) December 31, December 31,
2023 2022 2023 2022
Financial Results
Revenue $ 425,897 $ 306,377 $ 1,426,927 $ 1,148,033
Operating income (loss) $ (297,623) $ 39,367 $ (130,244) $ 190,268
Net income (loss) $ (264,360) $ 95,177 $ (120,225) $ 210,428
Net income (loss) attributable to equity holders of SSR Mining $ (217,845) $ 93,884 $ (98,007) $ 194,140
Basic net income (loss) per share attributable to equity holders of SSR Mining $ (1.07) $ 0.45 $ (0.48) $ 0.92
Diluted net income (loss) per share attributable to equity holders of SSR
Mining $ (1.07) $ 0.43 $ (0.48) $ 0.89
Adjusted attributable net income (7) $ 127,077 $ 25,580 $ 276,494 $ 144,814
Adjusted basic attributable net income per share (7) $ 0.62 $ 0.12 $ 1.35 $ 0.69
Adjusted diluted attributable net income per share (7) $ 0.59 $ 0.12 $ 1.29 $ 0.67
Cash generated by operating activities before changes in working capital (7) $ 218,388 $ 95,463 $ 555,872 $ 308,166
Cash generated by operating activities $ 203,159 $ 118,097 $ 421,725 $ 160,896
Cash generated by (used in) investing activities $ (59,050) $ (166,299) $ (339,261) $ (236,282)
Cash generated by (used in) financing activities $ (24,450) $ (33,148) $ (182,256) $ (271,782)
Operating Results
Gold produced (oz) 178,677 153,187 590,264 522,159
Gold sold (oz) 172,917 146,385 585,171 521,928
Silver produced ('000 oz) 2,759 2,389 9,688 8,397
Silver sold ('000 oz) 2,830 2,098 9,920 7,864
Lead produced ('000 lb) (8) 13,814 13,422 45,772 41,004
Lead sold ('000 lb) (8) 13,758 10,138 48,640 38,393
Zinc produced ('000 lb) (8) 1,322 3,643 7,127 8,583
Zinc sold ('000 lb) (8) 1,992 1,452 8,166 6,998
Gold equivalent produced (oz) (9) 211,226 182,655 706,894 623,819
Gold equivalent sold (oz) (9) 206,310 172,308 704,594 617,135
Average realized gold price ($/oz sold) $ 1,976 $ 1,749 $ 1,950 $ 1,812
Average realized silver price ($/oz sold) $ 23.23 $ 18.58 $ 22.82 $ 19.47
Cost of sales per gold equivalent ounce sold (9, 10) $ 1,064 $ 1,064 $ 1,141 $ 985
Cash cost per gold equivalent ounce sold (9, 10) $ 1,008 $ 1,019 $ 1,083 $ 928
AISC per gold equivalent ounce sold (9, 10) $ 1,326 $ 1,358 $ 1,461 $ 1,339
Financial Position December 31, 2023 December 31, 2022
Cash and cash equivalents $ 492,393 $ 655,453
Current assets $ 1,196,476 $ 1,376,435
Total assets $ 5,385,773 $ 5,254,657
Current liabilities $ 170,573 $ 279,252
Total liabilities $ 1,081,570 $ 1,128,458
Working capital (11) $ 1,025,903 $ 1,097,183
(7) The Company reports non-GAAP financial measures including adjusted attributable net income, adjusted attributable net income per share, cash generated
by operating activities before changes in working capital, cash costs and AISC per ounce sold to manage and evaluate its operating performance at its
mines. See “Non-GAAP Financial Measures” at the end of this press release for an explanation of these financial measures and a reconciliation of these
financial measures to net income, cost of sales, and cash generated by operating activities, which are the most comparable GAAP financial measures.
(8) 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.
(9) Gold equivalent ounces are calculated multiplying the silver ounces by the ratio of the silver price to the gold price, using the average London Bullion Market
Association (“LBMA”) prices for the period. The Company does not include by-products in the gold equivalent ounce calculations
(10) Excludes depreciation, depletion, and amortization
(11) Working capital is defined as current assets less current liabilities
SSR Mining Inc.
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Çöpler, Türkiye
(amounts presented on 100% basis)
Three Months Ended Twelve Months Ended
December 31, December 31,
Operating Data 2023 2022 2023 2022
Gold produced (oz) 57,126 65,603 220,999 191,366
Gold sold (oz) 59,694 59,949 225,599 192,811
Ore mined (kt) 1,223 1,407 4,501 3,161
Waste removed (kt) 7,533 5,596 25,197 17,311
Total material mined (kt) 8,756 7,003 29,698 20,472
Strip ratio 6.2 4.0 5.6 5.5
Ore stacked (kt) 182 249 813 459
Gold grade stacked (g/t) 1.24 1.22 1.36 1.06
Ore milled (kt) 710 748 2,733 2,068
Gold mill feed grade (g/t) 2.55 2.75 2.56 2.86
Gold recovery (%) 88.2 86.8 87.5 87.0
Average realized gold price ($/oz sold) $ 1,989 $ 1,743 $ 1,945 $ 1,826
Cost of sales ($/oz gold sold) $ 1,160 $ 1,065 $ 1,191 $ 985
Cash costs ($/oz gold sold) (12) $ 1,146 $ 1,053 $ 1,175 $ 969
AISC ($/oz gold sold) (12) $ 1,535 $ 1,269 $ 1,433 $ 1,328
(12) The Company reports the non-GAAP financial measures of cash costs and AISC per ounce of gold sold to manage and evaluate operating performance at
Çöpler. See "Non-GAAP Financial Measures" for an explanation of these financial measures and a reconciliation to cost of sales, which are the comparable
GAAP financial measure. For the three and twelve months ended December 31, 2023 and December 31, 2022, cash costs and AISC per ounce of gold sold
exclude the impact of any fair value adjustment on acquired inventories.
For the three months ended December 31, 2023 and 2022, Çöpler produced 57,126 and 65,603 ounces of gold,
respectively. For the twelve months ended December 31, 2023 and 2022, Çöpler produced 220,999 and 191,366 ounces
of gold, respectively. In the fourth quarter of 2023, Çöpler recovered approximately 10,000 ounces of gold from Çakmaktepe,
which delivered first production late in the third quarter of 2023 in line with guidance. The Çöpler sulfide plant operated a t
an average throughput rate of nearly 7,500 tonnes per day in 2023 and more than 7,700 tonnes per day in the fourth quarter
of 2023. Fourth quarter 2023 cost of sales of $1,160 per payable ounce and AISC of $1,535 per payable ounce resulted in
full-year cost of sales of $1,191 per payable ounce and AISC of $1,433 per payable ounce.
As a result of the removal of copper-gold mineralization associated with the C2 Project at Çöpler from the Company’s
Mineral Resources as of December 31, 2023, SSR Mining performed its long-lived asset and impairment evaluation. Based
on the evaluation, the Company record ed a non-cash write down of $349 million at Çöpler in the Company’s financial
statements for the year ended December 31, 2023. This reduced the fixed asset and mineral property value for Çöpler from
approximately $2.80 billion to $2.45 billion as of 2023 year-end.
The Company is unable to reasonably estimate the impact of the Çöpler Incident on the financial position, results of
operations and cash flows of Çöpler and the Company as a whole at this time.
SSR Mining Inc.
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Marigold, USA
Three Months Ended Twelve Months Ended
December 31, December 31,
Operating Data 2023 2022 2023 2022
Gold produced (oz) 82,794 62,875 278,488 194,668
Gold sold (oz) 81,173 62,936 275,962 195,617
Ore mined (kt) 3,705 4,861 21,846 18,061
Waste removed (kt) 25,793 15,880 74,800 72,166
Total material mined (kt) 29,499 20,741 96,646 90,227
Strip ratio 7.0 3.3 3.4 4.0
Ore stacked (kt) 3,705 4,861 21,846 18,061
Gold grade stacked (g/t) 0.43 0.60 0.45 0.56
Average realized gold price ($/oz sold) $ 1,971 $ 1,719 $ 1,950 $ 1,783
Cost of sales ($/oz gold sold) $ 1,095 $ 1,004 $ 1,047 $ 1,053
Cash costs ($/oz gold sold) (13) $ 1,097 $ 1,010 $ 1,049 $ 1,056
AISC ($/oz gold sold) (13) $ 1,170 $ 1,160 $ 1,349 $ 1,378
(13) The Company reports the non-GAAP financial measures of cash costs and AISC per ounce of gold sold to manage and evaluate operating performance at
Marigold. See "Non-GAAP Financial Measures" for an explanation of these financial measures and a reconciliation to cost of sales, which are the comparable
GAAP financial measure.
For the three months ended December 31, 2023 and 2022, Marigold produced 82,794 and 62,875 ounces of gold,
respectively. For the twelve months ended December 31, 2023 and 2022, Marigold produced 278,488 and 194,668 ounces
of gold, respectively, a record for the operation over its more than 30 -year operating history and in line with full -year
guidance. Fourth quarter 2023 cost of sales of $ 1,095 per payable ounce and AISC of $ 1,170 per payable ounce were in
line with expectations resulting in full-year 2023, cost of sales of $1,047 per payable ounce and AISC of $1,349 per payable
ounce.
SSR Mining Inc.
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Seabee, Canada
Three Months Ended Twelve Months Ended
December 31, December 31,
Operating Data 2023 2022 2023 2022
Gold produced (oz) 38,757 24,709 90,777 136,125
Gold sold (oz) 32,050 23,500 83,610 133,500
Ore mined (kt) 117 118 443 425
Waste removed (kt) 83 90 307 291
Total material mined (kt) 199 208 750 716
Ore milled (kt) 122 119 445 414
Gold mill feed grade (g/t) 10.14 6.69 6.62 10.36
Gold recovery (%) 97.0 97.2 96.7 98.0
Average realized gold price ($/oz sold) $ 1,988 $ 1,725 $ 1,965 $ 1,833
Cost of sales ($/oz gold sold) $ 666 $ 909 $ 991 $ 559
Cash costs ($/oz gold sold) (14) $ 666 $ 911 $ 992 $ 561
AISC ($/oz gold sold) (14) $ 916 $ 1,234 $ 1,427 $ 823
(14) The Company reports the non-GAAP financial measures of cash costs and AISC per ounce of gold sold to manage and evaluate operating performance at
Seabee. See "Non-GAAP Financial Measures" for an explanation of these financial measures and a reconciliation to cost of sales, which are the comparable
GAAP financial measure.
For the three months ended December 31, 2023 and 2022, Seabee produced 38,757 and 24,709 ounces of gold,
respectively, reflecting strong grades of over 10.1 g/t in the fourth quarter of 2023. For the twelve months ended
December 31, 2023 and 2022, Seabee produced 90,777 and 136,125 ounces of gold, respectively. Underground mining
and plant throughput averaged approximately 1,300 tonnes per day during the fourth quarter of 2023. Fourth quarter 2023
cost of sales of $ 666 per payable ounce and AISC of $ 916 per payable ounce resulted in full -year 2023, cost of sales of
$991 per payable ounce and AISC of $1,427 per payable ounce.
As a result of the updates to Mineral Reserves and Mineral Resources as of year-end 2023, the Company evaluated goodwill
and long-lived assets for impairment. Based on that analysis, the Company recorded a write-down of $50 million in goodwill
at Seabee in the Company’s financial statements for the year ended December 31, 2023 .