Ssr Mining Reports Fourth Quarter and Year-End 2017 Production Results and 2018 Guidance
News Release 18-01
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, 2018
SSR MINING REPORTS FOURTH QUARTER AND YEAR-END 2017 PRODUCTION
RESULTS AND 2018 GUIDANCE
VANCOUVER, B.C. – SSR Mining Inc. (NASDAQ: SSRM) (TSX: SSRM) (“SSR Mining”) reports
fourth quarter and year-end 2017 operating results. Additionally, we are providing 2018 guidance.
Fourth Quarter and 2017 Operating Highlights
Achieved total production guidance: Produced over 370,000 gold equivalent ounces in
2017, meeting or exceeding initial guidance for a sixth consecutive year. Delivered attributable
gold equivalent production of over 358,000 ounces in 2017 and over 88,000 ounces in the
fourth quarter, 14% higher than the third quarter of 2017.
Achieved gold production guidance at Marigold: Quarterly gold production of 52,768
ounces, 36% higher than the third quarter of 2017, resulted in annual production of 202,240
ounces of gold in 2017.
Record quarterly production at Seabee: Achieved record mill throughput of 89,237 tonnes
or 970 tonnes per day during the fourth quarter, which combined with high er milled grades
and improved recovery resulted in record quarterly gold production of 24,227 ounces.
Delivered record annual gold production at Seabee: The mine achieved the highest annual
production in its 27-year history, producing 83,998 ounces of gold in 2017 , at the upper end
of the upwardly revised annual guidance.
Exceeded annual production guidance at Puna Operations: Exceeded the upper end of
the upwardly revised annual production guidance with a total of 6.2 million ounces of silver.
Continued excellent performance of stockpile processing resulted in silver production of 1.2
million ounces in the fourth quarter.
Paul Benson, President and CEO said, “A strong fourth quarter at all three operations resulted in
annual production of over 370,000 gold equivalent ounces. This marks the sixth consecutive year
that we have met or exceeded ou r production guidance. All three operations performed well ,
particularly Puna Operations which exceeded the top end of its improved production guidance.
These results are driven by our teams and their continued focus on Operational E xcellence to
optimize our operations. In the year ahead, we are positioning the company to grow production
as Seabee ramps up and the Chinchillas deposit comes on -line in Argent ina. Importantly, our
exceptionally strong balance sheet enables us to increase our investment in brownfields
exploration at both Marigold and Seabee.”
SSR Mining Inc.
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Marigold Mine, U.S.
Q4 2017 Q3 2017 % Change 1 FY 2017 FY 2016 % Change 1
Total material mined kt 13,979 20,311 (31.2%) 69,011 75,093 (8.1%)
Waste removed kt 8,136 13,149 (38.1%) 43,422 51,480 (15.7%)
Ore to leach pad kt 5,843 7,162 (18.4%) 25,589 23,613 8.4%
Strip ratio w/o 1.4 1.8 (22.2%) 1.7 2.2 (22.7%)
Gold grade to leach pad g/t 0.37 0.31 19.4% 0.35 0.45 (22.2%)
Gold recovery % 74% 72% 2.8% 73% 72% 1.4%
Gold produced oz 52,768 38,699 36.4% 202,240 205,116 (1.4%)
Gold sold oz 51,420 38,818 32.5% 200,192 204,315 (2.0%)
Notes:
(1) Percent changes are calculated using rounded numbers presented in the table.
In 2017, the Marigold mine produced 202,240 ounces of gold, achieving the upper end of our
revised production guidance. This compares to 205,116 ounces of gold produced in 2016. Gold
sales were 200,192 ounces for the year.
Material mined during the year totaled 69.0 million tonnes, 8% lower compared to the record
tonnage moved in 2016, due to adverse weather conditions in the first quarter of 2017 and a lower
mining rate in the fourth quarter as discussed below . The mine achieved a record 25.6 million
tonnes of ore stacked on leach pads in 2017.
During the fourth quarter of 2017, a total of 14.0 million tonnes of material were mined, down 31%
from the third quarter due to planned maintenance of the rope shovel and operational shut-downs
and interruptions resulting from the fatal incident in October. The operation focused on addressing
the leaching constraints related to clay ore encountered in the second half of the year. Multiple
actions were implemented resulting in improvement of the leach pad operation over the last three
months of the year. A co mbination of ore blending, adding surfactants to reduce ponding and
improving ripping practices have allowed solution application rates to return to normal and
recovery rates to expected levels. This was reflected in the increased gold production in the fourth
quarter.
Approximately 5.8 million tonnes of ore were delivered to the heap leach pads at a gold grade of
0.37 g/t in the fourth quarter . This compares to 7.2 million tonnes of ore delivered to the leach
pads at a gold grade of 0.31 g/t in the third quarter. Gold grade mined in the fourth quarter was
19% higher than the third quarter due to mining deeper in the current phase of the Mackay pit .
The strip ratio declined to 1.4:1 in the quarter, a 22% reduction compared to the previous quarter.
In the fourth quarter of 2017, Marigold produced 52,768 ounces of gold, 36% higher than the
previous quarter. Gold sales totaled 51,420 ounces for the quarter.
SSR Mining Inc.
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Seabee Gold Operation, Canada
Q4 2017 Q3 2017 % Change 1 FY 2017 FY 2016 2 % Change 1
Total ore milled t 89,237 84,315 5.8% 330,415 312,679 5.7%
Ore milled per day t/day 970 916 5.9% 905 854 6.0%
Gold mill feed grade g/t 8.89 7.03 26.5% 8.25 7.91 4.3%
Gold recovery % 97.4% 97.2% 0.2% 97.4% 96.7% 0.7%
Gold produced oz 24,227 18,058 34.2% 83,998 77,640 8.2%
Gold sold oz 23,969 21,798 10.0% 86,087 76,474 12.6%
Notes:
(1) Percent changes are calculated using rounded numbers presented in the table.
(2) The data presented in this column is for the period from January 1, 2016 to December 31, 2016 and includes operating results
for the Seabee Gold Operation for the period from January 1, 2016 to May 30, 2016 prior to our acquisition.
The Seabee Gold Operation produced 83,998 ounces of gold in 2017 , marking record annual
production in its 27-year history, resulting from an improved milling rate and higher gold grades.
A total of 86,087 ounces of gold were sold during the year.
In 2017, the operation milled 330,415 tonnes of ore, another operating record, due largely to our
ongoing Operational Excellence initiatives. During the year, average gold mill feed grade was
8.25 g/t, 4% higher compared to the average gold grade milled in 2016. The Santoy mine supplied
82% of ore milled, predominantly from long hole stopes, with the remaining ore sourced from the
Seabee mine.
In the fourth quarter of 2017, the operation produced 24,227 ounces of gold, a 34% increase
compared to the previous quarter and a quarterly record mainly due to record throughput and
higher gold grades. Gold sales totaled 23,969 ounces during the quarter.
A record 89,237 tonnes of ore were milled during the fourth quarter at an average gold grade of
8.89 g/t and recovery of 97.4%. This compares to a total of 84,315 tonnes of ore milled at an
average gold grade o f 7.03 g/t and recovery of 97.2% in the third quarter of 2017. During the
fourth quarter, the mill maintained a higher throughput of 970 tonnes per day, a record quarterly
performance. The Santoy mine supplied approximately 72% of total ore milled, with the remainder
sourced from the Seabee mine.
SSR Mining Inc.
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Puna Operations, Argentina (1)
Q4 2017 Q3 2017 % Change 1 FY 2017 FY 2016 % Change 1
Ore milled kt 442 461 (4.1%) 1,798 1,774 1.4%
Silver mill feed grade g/t 125 153 (18.3%) 152 235 (35.3%)
Silver recovery % 66.0% 67.8% (2.7%) 70.3% 77.8% (9.6%)
Silver produced koz 1,169 1,541 (24.1%) 6,177 10,422 (40.7%)
Silver produced (attributable) (2) koz 877 1,156 (24.1%) 5,330 10,422 n/a
Silver sold koz 820 2,076 (60.5%) 5,994 11,397 (47.4%)
Silver sold (attributable) (2) koz 615 1,557 (60.5%) 5,088 11,397 n/a
Notes:
(1) Figures are on 100% basis unless otherwise noted.
(2) Figures for the third and fourth quarter of 2017 are on 75% attributable basis. Figures for 2017 represent 100% for the period
from January to May 2017 and 75% for the period from June to December 2017.
(3) Percent changes are calculated using rounded numbers presented in the table.
In 2017, the operation produced a total of 6.2 million ounces of silver, exceeding our increased
annual production guidance. This was largely due to stockpile grades and metallurgical
performance exceeding plan. Silver sales for the year totaled 6.0 million ounces. Attributable
share of silver p roduction and sales in 2017 was 5.3 million ounces and 5.1 million ounces,
respectively.
During the year, ore was milled at an average rate of 4,927 tonnes per day. Stockpile ore milled
contained an average silver grade of 152 g/t, higher than planned. While t he average silver
recovery of 70.3% was lower than the previous year due to planned lower silver mill feed grade,
it was above our planned recovery for the year.
In the fourth quarter of 2017, silver production of 1.2 million ounces declined relative to the third
quarter, as expected, due to processing lower grade stockpile ore. Silver sales totaled 0.8 million
ounces. Attributable share of silver production and sales for the quarter was 0.9 million ounces
and 0.6 million ounces, respectively.
During the fourth quarter, ore was milled at an average rate of 4,800 tonnes per day. Ore milled
contained an average silver grade of 125 g/t, 18% lower than the 153 g/t reported in the third
quarter of 2017 as we continue to process lower grade stockpiles. The average silver recovery in
the fourth quarter was 66.0%.
SSR Mining Inc.
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Outlook
This section of the news release provides management's production and cost estimates. See
"Cautionary Note Regarding Forward-Looking Statements."
Operating Guidance Marigold mine
Seabee Gold
Operation
Puna Operations
(75% interest) (4)
Gold Production oz 190,000 – 210,000 85,000 – 92,000 —
Silver Production Moz — — 3.0 – 4.4
Silver Production (attributable) Moz — — 2.3 – 3.3
Lead Production Mlb — — 7.0 – 12.5
Lead Production (attributable) Mlb — — 5.3 – 9.4
Zinc Production Mlb — — 5.5 – 7.5
Zinc Production (attributable) Mlb — — 4.1 – 5.6
Cash Costs per Payable Ounce Sold (1) $/oz $725 – $775 $560 – $610 $12.50 – $15.00
Sustaining Capital Expenditures (2) $M $35.0 $10.0 $10.0
Capitalized Stripping / Capitalized
Development $M $15.0 $9.0 $10.0
Exploration Expenditures (3) $M $9.0 $9.0 $1.0
Notes:
(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". Cash costs figures are presented on a by-product basis.
(2) Sustaining capital expenditures for Puna Operations exclude initial capital expenditures related to the development of the
Chinchillas project.
(3) Includes capitalized and expensed exploration expenses.
(4) Shown on a 100% basis unless otherwise indicated.
On a consolidated basis, we expect to produce 340,000 gold equivalent ounces in 2018 at gold
equivalent cash costs of between $715 and $770 per ounce. On an attributable basis, we expect
to produce 325,000 gold equivalent ounces in 2018 at gold equivalent cash costs of between
$705 and $760 per ounce.
Marigold production is expected to remain at or near the levels achieved in 2017 as the mine
benefits from sustaining higher mining rates and expanded leach pad infrastructure. Due to the
ongoing positive operating performa nce, cash cost guidance of $ 725 to $775 per payable gold
ounce is materially lower than that forecast in the 5-year Outlook published in 2016. Sustaining
capital expenditures are expected to total approximately $35 million including $18 million for
maintenance and purchase of mobile fleet and $10 million for leach pad construction and pumping
upgrades. Quarterly production is expected to range between 40,000 ounces and 60,000 ounces
of gold during the year . Production in the first quarter is expected to be near the lower end and
production in the fourth quarter near the upper end of the range, due to higher amount of gold
SSR Mining Inc.
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ounces stacked in the first half of the year and faster leaching in the second half of the year
associated with the new leach pad. Capitalized stripping is expected to total $15 million with the
majority to be incurred in the second half o f the year as the mine commences stripping the next
phase of the Mackay pit.
At the Seabee Gold Operation, we expect to build on the mine’s record 2017 operating
performance and continue the implementation of the development and expansion scenario
contemplated in the Preliminary Economic Assessment (“PEA”), which was published in October
2017. Our focus remains on increasing production from the Santoy mine to support higher mill
throughput levels and lower unit costs. The original Seabee mine will be closed by mid-2018 after
remnant ore extraction and removal of infrastructure, contributing in part to the lower unit costs .
Gold production is expected to increase by approximately 5% while cash costs per payable ounce
of gold is expected to further decline.
Sustaining capital expenditures of $10 million at Seabee include additions to the underground
and surface mobile equipment fleet, tailings expansion and upgrade to site camp infrastructure to
support the longer mine life, all expenditures contemplated in the PEA. Capitalized development
of $9 million i s principally related to Santoy decline development and to establish stations for
underground definition and exploration drilling.
With the receipt of permits in December 2017 to construct the Chinchillas project, Puna
Operations will complete development of this deposit in 2018 to materially extend its operating
life. Consistent with the pre-feasibility study on this high return project , project development
expenditures are expected to total $81 million with $70 million remaining to be invested in 2018.
Our 75% share of project capital before VAT is, therefore, $53 million for 2018. First ore delivery
to the Pirquitas mill is expected in the second half of 2018 with sequential ramp up through the
remaining months of 2018. Once Chinchillas ore is being pro cessed, Pu na Operations will
produce lead-silver and zinc concentrates. The operation is expected to produce between 3.0
million and 4.4 million ounces of silver in 2018, with approximately 1.6 million ounces of production
anticipated in the first half of the year based solely on processing of stockpiles and Chinchillas
production anticipated in the second half of 2018.
Due to the success of our 2016 and 2017 exploration programs and consistent with our strategy
to invest in our assets, we are increasing exploration investment at Marigold and Seabee to $9
million at each asset. Marigold exploration will target infill drilling of higher grade zones within the
Mackay zone and commence a more focused program on the Red Dot deposit among additional
ongoing programs. The Seabee exploration prog rams are focused in three areas including infill
drilling and exploration at Santoy Gap, exploration on the Seabee land package for new deposits,
including follow -up on the 2017 Carr project results, and initial drill programs on the Fisher
property. Exploration at Puna Operations, SIB, Perdito and other projects as well as property
holding costs amount to $10 million for a total exploration and development investment of $28
million in 2018.
Gold equivalent figures for our 2018 operating guidance are based on gold-to-silver ratio of 73:1.
Cash costs and capital expenditures guidance is based on an oil price of $60 per barrel and
exchange rate of 1.25 Canadian dollar to U.S. dollar.
SSR Mining Inc.
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Qualified Persons
The scientific and technical data contained in this news release relating to the Marigold mine has
been reviewed and approved by Thomas Rice, SME Registered Member, a Qualified Person
under National Instrument 43 -101 – Standards of Disclosure for Mineral P rojects (“NI 43-101”)
and our Technical Services 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 and 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 Bruce Butcher, P.Eng.,
a Qualified Person under NI 43-101 and our Director, Mine Planning.
About SSR Mining
SSR Mining Inc. is a Canadian-based precious metals producer with three operations, including
the Marigold gold mine in Nevada, U.S., the Seabee Gold Operation in Saskatchewan, Canada
and the 75%-owned and operated Puna Operations joint venture in Jujuy, Argentina. We also
have two feasibility stage projects and a portfolio of exploration properties in North and South
America. We are committed to delivering safe production through relentle ss emphasis on
Operational Excellence. We are also focused on growing production and Mineral Reserves
through the exploration and acquisition of assets for accretive growth, while maintaining financial
strength.
SOURCE: SSR Mining Inc.
For further information contact:
W. John DeCooman, Jr.
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 things: future production of
SSR Mining Inc.
PAGE 8
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; timing
of production and the cash costs and total costs of production at the Marigold mine, the Seabee Gold
Operation and Puna Operations; timing and expected expenditures of our exploration and development
programs; expected timing for capitalized stripping at the Marigold mine; expected timing for the closure of
the original Seabee mine; expansion of the Seabee Gold Operation based on the results of the PEA; the
PEA representing production growth, improved margins an d processing plant performance , low capital
investment and extended mine life at the Seabee Gold Operation ; expected timing of construction of and
ore delivery from the Chinchillas project; the estimated cost of sustaining capital; 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 guidance; 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 expressed 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; our ability to obtain necessary permits for the Chinchillas project; commodity price fluctuations;
political or economic instability and unexpected regulatory changes; currency and interest rate fluctuations;
the possibility of future losses; general economic conditions; fully realizing the value of our shareholdings
in Pretium Resources Inc. and our other marketable securities, due to changes in price, liquidity or disposal
cost of such marketable securities; counterparty and market risks related to the sale of our concentrate and
metals; 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; differing results from technical studies and reports ; our ability to attract and
retain qualified personnel and management; potential labour unrest, including labour actions by our
unionized employees at Puna Operations; the impact of governmental regulations, including health, safety
and environmental regulations, including increased costs and restrictions on operations due to compliance
with such regulations; reclamation and closure requirements for our mineral properties; failure to effectively
manage our tailings facilities; social and economic changes following closure of a mine may lead to adverse
impacts and unrest; unpredictable risks and hazards related to the development and operation of a mine or
mineral property that are beyond our control; potential impacts of the Marigold mine incident, including with
respect to operation continuity; indigenous peoples’ title claims and rights to consultation and
accommodation may affect our existing operations as well as development projects and future acquisitions;
assessments by taxation authorities in multiple jurisdictions; recoverability of VAT and significant delays in
the collection process in Argentina; claims and l egal 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, including extreme weather conditions; fully realizing our interest in deferred
consideration received in connection with recent divestitures; uncertainties related to title to our mineral
properties and the ability to obt ain 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 th e mining industry for
mineral properties; our ability to complete and successfully integrate an announced acquisition; an event
of default under our convertible notes may significantly reduce our liquidity and adversely affect our
business; failure to meet covenants under our senior secured revolving credit facility; conflicts of interest
that could arise from certain of our directors ’ and officers ’ involvement with other natural resource
companies; information systems security threats; and those other various risks and uncertainties identified
under the heading "Risk Factors" in our most recent Annual Information Form filed with the Canadian