Ssr Mining Reports Fourth Quarter and Year-End 2017 Results
News Release 18-03
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
February 22, 2018
SSR MINING REPORTS FOURTH QUARTER AND YEAR-END 2017 RESULTS
VANCOUVER, B.C. - SSR Mining Inc. (NASDAQ: SSRM) (TSX: SSRM) (“SSR Mining”) reports
consolidated financial results for the fourth quarter and year ended December 31, 2017.
Paul Benson, President and CEO said, “2017 was another strong year for SSR Mining, generating
$145 million of operating cash flow from more than 370,000 gold equivalent ounces of annual
production. Our relentless focus on Operational Excellence has allowed us to meet or exceed our
annual production and cost guidance for the sixth consecutive year, while our successful track
record in exploration led to another year of reserve growth and mine life extension.”
“Looking ahead, 2018 is an exciting year for SSR Minin g with the ramping up of the Chinchillas
mine and continued growth in production at Seabee. Our current mine plans forecast consolidated
production to rise by 27% from this year to over 410,000 gold equivalent ounces in 2021, and this
is before we evaluate a potential expansion at Marigold, and any increase resulting from our
investment in brownfields exploration. We are fully funded to achieve this growth with $460 million
in cash at year-end, allowing us to continue creating value for our shareholders.”
Fourth Quarter and Year-End 2017 Highlights:
(All figures are in U.S. dollars unless otherwise noted)
▪ Strong financial performance: Generated cash from operations of $144.7 million in 2017
and increased our cash position by $132.7 million to $459.9 million. Generated net income of
$71.5 million or $0.58 per share and adjusted net income of $40.1 million or $0.34 per share.
▪ Achieved annual production and cost guidance: Met or exceeded initial guidance for the
sixth consecutive year by delivering gold equ ivalent production of over 370,000 ounces at
cash costs of $703 and AISC of $972 per payable gold equivalent ounce sold in 2017.
▪ Continued our track record of Mineral Reserves increases at Marigold and Seabee:
Successful exploration activities in 2017 increased gold Mineral Reserves, after depletion, at
the Marigold mine by 350,000 ounces to 3.2 million ounces and at the Seabee Gold Operation
by 80,000 ounces to 440,000 ounces, the latter at 21% higher average gold grade.
SSR Mining Inc. PAGE 2
▪ 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 our upwardly revised annual guidance. Annual cash costs and AISC were $602 and $843
per payable ounce of gold sold, respectively.
▪ Strong production at Marigold: Delivered quarterly gold production of 52,768 ounces, 36%
higher than the third quarter of 2017, resulting in annual production of 202,240 ounces of gold
in 2017. Reported annual cash costs of $647 per payable ounce of gold sold, at the lower end
of our improved guidance, and AISC of $896 per payable gold ounce sold.
▪ Exceeded annual production guidance at Puna Operations: Exceeded the upper end of
our upwardly revised annual production guidance with 6.2 million ounces of silver produced,
reflecting strong performance of stockpiles processed. Annual cash costs were $13.07 per
payable silver ounce sold, at the lower end of annual guidance. Reported AISC of $14.30 per
payable silver ounce sold.
▪ Extended Pirquitas operating life: Formed Puna Operations joint venture, extending the
anticipated Pirquitas operating life by eight years. Received approval of the Environmental
Impact Assessment for the Chinchillas project in 2017 with development activities now
underway.
▪ Enhanced financial strength: Generated $36 million of cash in the fourth quarter of 2017,
our ninth consecutive quarter of increasing cash for total liquidity of more than $640 million,
including marketable securities and our revolving credit facility.
SSR Mining Inc. PAGE 3
Marigold Mine, U.S.
Three months ended Total
Operating data
December 31,
2017
September 30,
2017
June 30,
2017
March 31,
2017 2017 2016
Total material mined (kt) 13,979 20,311 17,985 16,736 69,011 75,093
Waste removed (kt) 8,136 13,149 11,075 11,062 43,422 51,480
Total ore stacked (kt) 5,843 7,162 6,910 5,674 25,589 23,613
Strip ratio 1.4 1.8 1.6 1.9 1.7 2.2
Mining cost ($/t mined) 1.98 1.52 1.67 1.65 1.68 1.50
Gold stacked grade (g/t) 0.37 0.31 0.31 0.42 0.35 0.45
Processing cost ($/t processed) 1.08 0.89 0.82 0.89 0.92 0.78
Gold recovery (%) 74.0 72.0 73.0 74.0 73.0 72.0
General and admin costs ($/t
processed) 0.51
0.40
0.42
0.52
0.46
0.46
Gold produced (oz) 52,768 38,699 55,558 55,215 202,240 205,116
Gold sold (oz) 51,420 38,818 57,426 52,528 200,192 204,315
Realized gold price ($/oz) (1) 1,269 1,270 1,265 1,214 1,254 1,255
Cash costs ($/oz) (1) 699 684 632 585 647 647
AISC ($/oz) (1) 1,001 979 833 799 896 960
Financial data ($000s)
Revenue 65,217 49,395 72,451 63,762 250,825 256,817
Income from mine operations 12,777 11,189 21,373 21,327 66,666 80,672
Capital expenditures 8,194 3,855 5,272 3,043 20,364 30,531
Capitalized stripping 5,712 6,056 4,350 6,745 22,863 32,624
Exploration expenditures (2) 1,208 1,130 1,538 1,024 4,900 5,120
(1) We report the non-GAAP financial measure of cash costs per payable ounce of gold sold, realized gold prices and
all-in sustaining costs ("AISC") to manage and evaluate operating performance at the Marigold mine. For a better
understanding and a reconciliation of these measures to cost of sales, as shown in our consolidated statements
of comprehensive income, please see “Non-GAAP and Additional GAAP Financial Measures” in section 10 of our
management's discussion and analysis for the year ended December 31, 2017 (“MD&A”).
(2) Includes capitalized and expensed exploration expenditures.
Mine production
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.
Material mined during the year totaled 69.0 million tonnes, 8% lower com pared 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.
SSR Mining Inc. PAGE 4
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 combination 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 during the fourth quarter. This compares to 7.2 million tonnes of ore delivered to the heap
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, the Marigold mine produced 52,768 ounces of gold, 36% higher than
the previous quarter.
Mine operating costs
Cash costs and AISC per payable ounce of gold sold are non-GAAP financial measures. Please
see “Cautionary Note Regarding Non-GAAP Measures”.
Cash costs, which include all costs of inventory, refining costs and royalties, of $699 per payable
ounce of gold sold in the fourth quarter of 2017 were 2% higher than the previous quarter primarily
due to higher production unit costs. Total mining costs of $1.98 per tonne in the fourth quarter of
2017 were 30% higher than in the previous quarter due to fewer tonnes mined for reasons
described above. Processing and general and administrative unit costs were 21% and 28%
higher, respectively, in the fourth quarter of 2017 than in the third quarter of 2017 due to lower
tonnes mined and processed. Processing and general and administrative costs were comparable
on an absolute basis in the current and preceding quarter while min ing costs were lower. Cash
costs of $647 per payable ounce of gold sold in 2017 were comparable to 2016, as we mined
more ore tonnes which offset the lower ore grade.
AISC increased in the fourth quarter of 2017 to $1,001 per payable ounce of gold sold from $979
in the third quarter due to increased capital spending mostly related to mobile equipment and
construction of a new leach pad expansion. AISC of $896 per payable ounce of gold sold in 2017
decreased from $960 in 2016, primarily due to lower capita l investments and lower capitalized
stripping.
SSR Mining Inc. PAGE 5
Mine sales
A total of 51,420 ounces of gold were sold at an average realized price of $1,269 per ounce during
the fourth quarter of 2017, an increase of 32% from the 38,818 ounces of gold sold at an average
realized price of $1,270 per ounce during the third quarter of 2017. The increase in sales was a
function of increased gold production. In 2017, gold sales decreased marginally and totaled
200,192 ounces, compared to 204,315 ounces in 2016.
Exploration
Exploration at Marigold in 2017 was successful with significant growth in Mineral Reserves and
Resources compared to the end of 2016. Mineral Reserves, after depletion, increased by 12% to
total 3.2 million gold ounces and Measured and Indicated Mineral Resources (inclusive of Mineral
Reserves) increased by 10% to 5.7 million gold ounces.
Exploration during the fourth quarter of 2017 targeted growth of Mineral Reserves and Resources
proximal to, and within, planned open pits. During the quarter we complete d 16,000 meters of
drilling in 50 reverse circulation ("RC") holes at the Mackay pit and within the Red Dot area. Drilling
was also completed in East Basalt, Valmy and the Showdown target. RC drilling for the year
totaled 54,814 meters in 188 RC holes with one core hole completed over 1,128 meters.
Initial exploration of the Showdown target area during the fourth quarter, yielded several
encouraging intervals of shallow low grade gold mineralization between the East Basalt deposit
and the Valmy deposits that is outside the current Mineral Resource estimate. The known zone
of mineralization has been extended below and east of the current resource pit at East Basalt
based on drill results.
Positive results were received within the Mineral Resource portions of the Red Dot deposit. This
drilling is expected to be beneficial in converting areas of Inferred Mineral Resources to Indicated
Mineral Resources where the current drill spacing required additional data. This drilling has, to
date, confirmed the geologic interpretation.
SSR Mining Inc. PAGE 6
Seabee Gold Operation, Canada
Three months ended
Total Period from
Acquisition to
December
31, 2016 (1)
Operating data
December 31,
2017
September 30,
2017
June 30,
2017
March 31,
2017 2017
Total ore milled (t) 89,237 84,315 84,469 72,394 330,415 186,138
Ore milled per day (t/day) 970 916 928 804 905 870
Gold mill feed grade (g/t) 8.89 7.03 7.97 9.22 8.25 7.44
Mining costs ($/t mined) 66 74 60 68 68 65
Processing costs ($/t
processed) 24
22
20
23
23 20
Gold recovery (%) 97.4 97.2 97.3 97.7 97.4 96.7
General and admin costs
($/t processed) 61
53
50
59
54 43
Gold produced (oz) 24,227 18,058 20,690 21,023 83,998 46,574
Gold sold (oz) 23,969 21,798 17,909 22,411 86,087 50,446
Realized gold price ($/oz) (2) 1,276 1,269 1,257 1,233 1,259 1,271
Cash costs ($/oz) (2,3) 605 634 592 574 602 639
AISC ($/oz) (2,3) 776 775 831 990 843 823
Financial data ($000s)
Revenue 30,571 27,652 22,502 27,609 108,334 64,826
Income from mine operations 2,923 3,643 4,083 4,995 15,644 8,206
Capital expenditures 920 799 711 4,760 7,190 1,926
Capitalized development 2,301 1,314 2,165 2,514 8,294 5,377
Exploration expenditures (4) 1,187 1,253 1,566 1,953 5,959 2,152
(1) The data presented in this column is for the period from May 31, 2016, to December 31, 2016, the period for which
we were entitled to all economic benefits of the Seabee Gold Operation following our acquis ition of Claude
Resources Inc. ("Claude Resources").
(2) We report the non -GAAP financial measures of realized gold prices, cash costs and AISC per payable ounce of
gold sold to manage and evaluate operating performance at the Seabee Gold Operation. For a bett er
understanding and a reconciliation of these measures to cost of sales, as shown in our consolidated statements
of comprehensive income, please see “Non-GAAP and Additional GAAP Financial Measures” in section 10 of our
MD&A.
(3) The non-GAAP financial measure of cash costs per payable ounce of gold sold from the Seabee Gold Operation
in 2016 was adjusted to eliminate the adjustment of inventory to fair value as at the date of our acquisition of
Claude Resources.
(4) Includes capitalized and expensed exploration expenditures.
Mine production
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.
SSR Mining Inc. PAGE 7
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, 11% higher compared to the average gold grade milled in in the period from acquisition to
December 31, 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.
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 tota l of 84,315 tonnes of ore milled at an
average gold grade of 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 in the fourth quarter
of 2017, with the remainder sourced from the Seabee mine.
Mine operating costs
Cash costs and AISC per payable ounce of gold sold are non-GAAP financial measures. Please
see “Cautionary Note Regarding Non-GAAP Measures”.
Cash costs per payable ounce of gold sold, which include all costs of inventory, refining costs and
royalties, were $605 in the fourth quarter of 2017, lower than the $634 in the third quarter of 2017
due to higher production. Costs per tonne mined were $66 in the fourth quarter of 2017, 11%
lower than in the previous quarter due to higher tonnes mined and more operating costs
capitalized to underground development. Processing and general and administrative unit cos ts
were higher by 9% and 15%, respectively, in the fourth quarter of 2017 compared to the third
quarter of 2017, mainly due to the stronger CAD. Cash costs per payable ounce of gold sold in
2017 were $602, lower than the $639 per payable ounce sold in 2016, mainly due to higher gold
mill feed grade.
AISC per payable ounce of gold sold were $776 in the fourth quarter of 2017, comparable to $775
in the third quarter, as lower cash costs was offset by higher underground capital development.
In 2017, AISC per payable ounce of gold sold increased to $843 from $823 for the period from
acquisition to December 31, 2016, due to higher underground capital development, capital
expenditures and sustaining exploration, which was partially offset by higher ounces of gold sold.
Mine sales
A total of 23,969 ounces of gold were sold at an average realized price of $1,276 per ounce of
gold during the fourth quarter of 2017. This compares to 21,798 ounces of gold sold in the third
quarter of 2017 at an average realized pr ice of $1,269 per ounce of gold. The increase in sales
was a function of increased gold production. Gold sales totaled 86,087 ounces in 2017 compared
SSR Mining Inc. PAGE 8
to 50,446 ounces in 2016, with the increase mainly due to the shorter comparative period of seven
months in 2016. Realized prices were marginally lower in 2017 than in 2016.
Exploration
For 2017, the Seabee Gold Operation undertook a program of underground and surface drilling
with the objective of increasing and converting Mineral Resources to Mineral Reserves at Santoy
and demonstrating the exploration potential of several drill -ready targets for discovery of
mineralization to utilize nearby infrastructure. The success of these in-mine programs is reflected
in the growth of Mineral Reserves after depletion reported at the end of 2017 compared to the
end of 2016. Mineral Reserves increased by 21% to total 437,000 ounces and Measured and
Indicated Mineral Resources (inclusive of Mineral Reserves) increased by 19% to 681,000 ounces
of gold with gains realized a t Santoy Gap and Santoy 8. Inferred Mineral Resources of 674,000
ounces increased by 34,000 ounces despite conversion.
During the fourth quarter of 2017, we completed 15,050 meters of underground diamond drilling
for a total of 61,180 meters for the year to explore further the extensions to the Santoy 8A and
Santoy Gap deposits. From surface, we completed 14,840 meters of drilling for the year exploring
Carr, Herb Lake and another 10,506 meters exploring the upper reaches of Santoy Gap and
Santoy 8A.