Ssr Mining Reports Fourth Quarter and Year-End 2018 Production Results and 2019 Guidance
News Release 19-01
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, 2019
SSR MINING REPORTS FOURTH QUARTER AND YEAR-END 2018 PRODUCTION
RESULTS AND 2019 GUIDANCE
VANCOUVER, B.C. – SSR Mining Inc. (NASDAQ: SSRM) (TSX: SSRM) (“SSR Mining”) reports
fourth quarter and year-end 2018 operating results. Additionally, we are providing 2019 guidance.
Fourth Quarter and 2018 Operating Highlights
Achieved total annual production guidance: Produced over 345,000 gold equivalent
ounces in 2018 and over 88 ,000 gold equivalent ounces in the fourth quarter , meeting or
exceeding initial guidance for a seventh consecutive year. Delivered a ttributable gold
equivalent production of over 335,000 ounces in 2018.
Strong finish to the year at Marigold: Annual production of 205,160 ounces of gold in 2018,
as fourth quarter gold production of 54,306 ounces led to Marigold exceeding the upper end
of our revised annual guidance.
Delivered record annual gold production at Seabee: The operation achieved the highest
annual production in its history, producing 95,602 ounces of gold in 2018, exceeding the top
end of the upwardly revised annual guidance.
Strong operating performance at Seabee: In 2018, the operation milled 352,000 tonnes of
ore or 964 tonnes per day, another operating record, while average gold mill feed grade was
an impressive 9.16 g/t.
Ramp-up of operations at Puna: Exceeded the upper end of the revised annual silver
production guidance with a total of 3.7 million ounces. With the declaration of commercial
production at the Chinchillas mine in December 2018, we produced 1.2 million ounces of silver
in the fourth quarter, a 79% increase over the third quarter, as the mill averaged nearly 3,800
tonnes per day.
Paul Benson, President and CEO said, “As all three of our operations exceeded expectations and
with both Marigold and Seabee at or near record annual production, we produced over 345,000
gold equivalent ounces in 2018. This marks the s eventh consecutive year that we have met or
exceeded our annual production guidance. In the year ahead, we are forecasting production
growth to nearly 400,000 gold equivalent ounces, with Seabee and Marigold continuing to deliver
to plan and Puna ramping- up to steady -state operations. Importantly, due to the exploration
success across our portfolio and our strong balance sheet, we are able to invest in our assets for
the long-term benefit of our shareholders, communities, and employees.”
SSR Mining Inc.
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Marigold Mine, U.S.
Q4 2018 Q3 2018 % Change 1 FY 2018 FY 2017 % Change 1
Total material mined kt 17,039 21,284 (19.9%) 70,431 69,011 2.1%
Waste removed kt 11,361 14,411 (21.2%) 42,906 43,422 (1.2%)
Ore to leach pad kt 5,679 6,873 (17.4%) 27,525 25,589 7.6%
Strip ratio w/o 2.0 2.1 (4.8%) 1.6 1.7 (5.9%)
Gold grade to leach pad g/t 0.34 0.32 6.3% 0.37 0.35 5.7%
Gold recovery % 73% 72% 1.4% 73% 73% 0.0%
Gold produced oz 54,306 58,459 (7.1%) 205,160 202,240 1.4%
Gold sold oz 50,550 59,612 (15.2%) 198,884 200,192 (0.7%)
Notes:
(1) Percent changes are calculated using rounded numbers presented in the table.
In 2018, the Marigold mine produced 205,160 ounces of gold, surpassing the upper end of our
revised production guidance. This compares to 202,240 ounces of gold produced in 2017. For
the full-year, gold sales were 198,884 ounces due to bullion inventory increasing in the fourth
quarter relative to the previous quarter, which we expect to sell in the first quarter of 2019.
Material mined during the year totaled 70.4 million tonnes, a 2% increase as compared to 2017.
The mine achieved record annual ore tonnes to the leach pads with over 27.5 million tonnes
stacked.
During the fourth quarter of 2018, 17.0 million tonnes of material were mined, down 20% from the
third quarter due to scheduled maintenance on the electric rope shovel and longer haul cycles.
Construction delays deferred the new leach pad commissioning to the first quarter of 2019 and
solution application commenced in January 2019.
Approximately 5.7 million tonnes of ore were delivered to the heap leach pads at a gold grade of
0.34 g/t in the fourth quarter. This compares to 6.9 million tonnes of ore delivered to the leach
pads at a gold grade of 0.32 g/t in the third quarter. Gold grade mined in the fourth quarter was
6% higher than the third quarter due to mining deeper in the current phase of the Mackay pit. The
strip ratio declined to 2.0:1 in the quarter, a 5% reduction compared to the previous quarter.
In the fourth quarter of 2018, Marigold produced 54,306 ounces of gold, representing a 7.1%
reduction as compared to the previous quarter. Gold sales totaled 50,550 ounces for the quarter.
SSR Mining Inc.
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Seabee Gold Operation, Canada
Q4 2018 Q3 2018 % Change 1 FY 2018 FY 2017 2 % Change 1
Total ore milled t 86,447 88,273 (2.1%) 352,000 330,415 6.5%
Ore milled per day t/day 940 959 (2.0%) 964 905 6.5%
Gold mill feed grade g/t 10.20 9.52 7.1% 9.16 8.25 11.0%
Gold recovery % 97.6% 97.1% 0.5% 97.4% 97.4% 0.0%
Gold produced oz 20,473 27,831 (26.4%) 95,602 83,998 13.8%
Gold sold oz 21,711 29,175 (25.6%) 91,410 86,087 6.2%
Notes:
(1) Percent changes are calculated using rounded numbers presented in the table.
The Seabee Gold Operation produced 95,602 ounces of gold in 2018, an annual production
record resulting from an improved milling rate and higher gold grade. A total of 91,371 ounces of
gold were sold during the year.
In 2018, the operation milled 352,000 tonnes of ore, another operating record, largely due to our
ongoing Operational Excellence initiatives. During the year, average gold mill feed grade was
9.16 g/t, 11% higher compared to the average gold grade milled in 2017. The Santoy mine
supplied 93% of ore milled, predominantly from long hole stopes; the remaining ore was sourced
from the Seabee mine, which was closed in the second quarter of 2018.
In the fourth quarter of 2018, the operation produced 20,473 ounces of gold, a 26% decrease
primarily due to gold ounces contained in circuit at year -end 2018 due to timing of gold pours .
Gold sales totaled 21,711 ounces during the quarter.
During the fourth quarter, 86,447 tonnes of ore were milled at an average gold grade of 10.2 g/t
and recovery of 97.6%. This compares to 88,273 tonnes of ore milled at an average gold grade
of 9.52 g/t and recovery of 97.1% in the third quarter of 2018.
SSR Mining Inc.
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Puna Operations, Argentina 1
Q4 2018 Q3 2018 % Change 2 FY 2018 FY 2017 3 % Change 2
Total material mined kt 897 4 - - 897 4 89 na
Waste removed kt 696 4 - - 696 4 36 na
Ore mined kt 201 4 - - 201 4 53 na
Strip ratio w/o 3.5 4 - - 3.5 4 0.7 na
Ore milled kt 342 308 11.0% 1,420 1,798 (21.0%)
Silver mill feed grade g/t 133 96 38.5% 114 152 (25.0%)
Zinc mill feed grade % 1.14% 1.25% (8.8%) 0.84% - -
Lead mill feed grade % 0.92% - - 0.85% - -
Silver recovery % 81.5% 69.9% 16.6% 72.1% 70.3% 2.6%
Zinc recovery % 49.5% 38.1% 27.2% 39.3% - -
Lead recovery % 83.1% 78.7% 5.6% 82.6% - -
Silver produced koz 1,189 666 78.5% 3,747 6,177 (39.3%)
Silver sold koz 932 623 49.6% 3,761 5,994 (37.3%)
Zinc produced Klb 4,014 3,241 23.9% 8,775 - -
Zinc sold Klb 1,983 383 na 2,365 - -
Lead produced Klb 2,735 372 na 3,107 - -
Lead sold Klb 1,059 - - 1,059 - -
Notes:
(1) Figures are on 100% basis; “na” refers to not applicable.
(2) Percent changes are calculated using rounded numbers presented in the table.
(3) Figures for 2017 represent 100% for the period from January to May 2017 and 75% for the period from June to December 2017.
(4) Data is for the period subsequent to December 1, 2018, the date upon which commercial production was declared at the
Chinchillas mine.
In 2018, Puna Operations produced a total of 3.7 million ounces of silver, 8.8 million pounds of
zinc and 3.1 million pounds of lead. Silver sold for the year totaled 3.8 million ounces. On an
attributable basis, silver production and sales in 2018 totaled 2.8 million ounces and 2. 8 million
ounces, respectively.
During the year, ore was milled at an average of 3,890 tonnes per day. Ore milled contained an
average silver grade of 114 g/t. T he average silver recovery was 72.1%, a 3% improvement as
compared to 2017.
In the fourth quarter of 2018, silver production was 1.2 million ounces, an increase of 79% relative
to the third quarter, due mainly to the increased tonnage of higher-grade Chinchillas ore milled.
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Silver sales totaled 0 .9 million ounces. On an attributable basis, silver production and sales for
the quarter totaled 0.9 million ounces and 0.7 million ounces, respectively.
Subsequent to the declaration of commercial production at Chinchillas, material mined in
December 2018 totaled 897,000 tonnes, including 201,000 tonnes of ore.
During the fourth quarter, ore was milled at an average of 3,720 tonnes per day. In December ore
was sourced exclusively from Chinchillas and achieved a 3,605 tonnes per day milling rate .
Processed ore in the fourth quarter contained an average silver grade of 133 g/t, a 38% increase
as compared to the third quarter of 2018, due to processing of high grade Chinchillas ore in
December. The average silver recovery in the fourth quarter was 81.5%.
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 200,000 – 220,000 95,000 – 110,000 -
Silver Production
(Attributable)
Moz - - 6.0 – 7.0
(4.5 – 5.3)
Lead Production
(Attributable)
Mlb - - 20.0 – 26.0
(15.0 – 19.5)
Zinc Production
(Attributable)
Mlb - - 15.0 – 20.0
(11.3 – 15.0)
Cash Costs per Payable Ounce Sold 1 $/oz $750 – $790 $525 – $555 $8.00 – $10.00
Sustaining Capital Expenditures 2 $M $35.0 $25.0 $12.0
Capitalized Stripping / Capitalized
Development $M $20.0 $12.0 $20.0
Exploration Expenditures 3 $M $7.5 $6.0 $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 c apital 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 by “attributable” which is shown on a 75% basis.
Based on the mid-points of guidance, on a consolidated basis we expect to produce 395,000 gold
equivalent ounces in 2019 at gold equivalent cash costs of $ 700 per ounce. On an attributable
basis we expect to produce 375,000 gold equivalent ounces in 2019 at gold equivalent cash costs
of $700 per ounce based on the mid-points of guidance.
SSR Mining Inc.
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At the Marigold mine, gold production is expected to increase in 2019 with the full -year benefits
from the four haul trucks added to the fleet in mid- 2018 and production from the new leach pad
beginning in the first quarter of 2019. Due to the ongoing positive operating performance and
optimization of pit designs, cash cost guidance of $750 to $790 per payable gold ounce sold is
an improvement to the forecast from the 2018 Technical Report. Capital investments are expected
to total $35 million including $22 million in the mine for maintenance and purchase of mobile fleet
as well as $10 million for accelerated leach pad construction and process infrastructure . To
accommodate the higher ore tonnes mined and to provide additional operating flexibility regarding
leach cycles, construction of a leach pad is expected to be accelerated to the second half of 2019
from 2020. Capitalized stripping is expected to total $20 million with the majority incurred through
the first three quarters of the year. Exploration expenditures totaling $7.5 million re-focuses to
Mackay, Valmy and Basalt with the goals of adding M ineral Reserves and defining additional
Mineral Resources within these areas . Having completed t he Red Do t exploration program in
2018, we intend to complete geotechnical drilling and engineering of the R ed Dot M ineral
Resources with the objective of evaluating the potential for Red Dot Mineral Reserves by mid-
2019.
At the Seabee Gold Operation we expect to continue executing our plan of increasing mining and
milling rates and to deliver another record gold production year in 2019 . The plan includes
investment of $7 million in underground mining equipment to increase capacity and reliability.
With h igher tonnes mined and demonstrated milling infrastructure capacity, cash costs are
expected to remain low at between $525 and $555 per payable gold ounce sold. Due to continued
exploration success at Seabee, we are embarking on an expansion to tailings capacity in excess
of that contemplated in the 2017 Technical Report. The first phase is expected to be completed
in 2019 at an investment of $15 million, with the remaining sustaining capital investments related
for the mill and surface infrastructure. Capitalized development expenditures of $12 million
support higher mining rates and reflects the development strategy for the Santoy complex.
Exploration expenditures at Seabee total $6 million to continue underground exploration at depth,
expansion of Santoy Gap hanging wall and continued testing of surface targets.
At Puna Operations, with commercial completion of the Chinchillas open pit achieved, 2019 marks
the first full year of ore production from the Chinchillas mine transported for processing at the
Pirquitas mill. Puna is expected to produce between 6.0 and 7.0 million ounces of silver at cash
costs of between $8.00 and $10.00 per payable silver ounce sold. Reported cash costs may vary
quarter to quarter due to the by -product credits arising from the production of lead and zinc as
such credits vary based on the timing of sales of each concentrate. Capital investments at Puna
of $12 million include $5 million for mine equipment maintenance, and $5 million for plant
equipment maintenance. Capitalized stripping is elevated through 2019 as the mine completes
the hig hwall pushback and commences stripping the next phase of the Chinchillas pit. As
Chinchillas operations ram p-up through 2019, only waste material will be mined over certain
periods of the year with ore stockpiled during the pre -production phase transported to and
processed at the Pirquitas mill.
With Puna focused on optimization of the mine, transport and mill operations through 2019, limited
exploration expenditures of $1 million are planned.
As previously announced, the completion of certain Chinchillas project infrastructure carries over
into 2019 with remaining investment of approximately $9 million expected to be incurred in the
first quarter. The project remains on budget.
SSR Mining Inc.
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In addition to exploration at our three operating mines, we expect to invest $3 million in exploration
on the Fisher project adjacent to our Seabee Gold Operation. Community, development and
holding costs related to non-operating properties total approximately $5 million.
Gold equivalent figures for our 2019 operating guidance are based on gold-to-silver ratio of 81:1.
Cash costs and capital expenditures guidance is based on an oil price of $65 per barrel and
exchange rate of 1.25 Canadian dollar to U.S. dollar.
Qualified Persons
The scientific and technical data contained in this news release relating to the Marigold mine has
been reviewed and approved by James Frost, P.E., a qualified person under National Instrument
43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) and our Technical Services
Superintendent 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 relentless em phasis 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.
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
SSR Mining Inc.
PAGE 8
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 pr oduction 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 suf ficiency 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 produc tion 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; timing and focus of our
exploration and development programs; expected timing of the commissioning of the new leach pad at the
Marigold mine in the first quarter of 2019 and the construction of an additional leach pad at the Marigold
mine in the second half of 2019; expected cost and timing of completion of the first phase of the expansion
to tailings capacity at the Seabee Gold Operation in 2019; expected cost and timing of completion of
construction milestones at Puna Operations, including the expectation that the Chinchillas project will
remain on budget and certain project infrastructure will be completed in the first quarter of 2019; 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 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 thos e 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; commodity 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 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 s uitable
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 r egulations, 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 property 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 consultation 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