Ssr Mining Reports Fourth Quarter and Year-End 2018 Results
News Release 19-03
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 21, 2019
SSR MINING REPORTS FOURTH QUARTER AND YEAR-END 2018 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, 2018.
Paul Benson, President and CEO said, “SSR Mining had another successful year in 2018 as we
continued our track record of achieving production and cost guidance for the seventh consecutive
year while transitioning to commercial production at Chinchillas. We maintained a strong balance
sheet after a year of investment that brought a new mine into production, delivered reserve growth
and included our strategic investment in SilverCrest Metals.
Looking ahead, 2019 consolidated gold production is forecast to gro w to nearly 400,000 gold
equivalent ounces as all three operations increase output, including our newest mine, Chinchillas,
which is ramping up to steady -state operations. And by 2021, our production profile is expected
to grow to 440,000 gold equivalent o unces, not including the potential upside at Marigold or
success from our brownfield exploration programs. With nearly $420 million of cash and an
outlook of increasing production and higher margins, we are well positioned to continue our track
record of creating value for shareholders."
Fourth Quarter and Year-End 2018 Highlights:
(All figures are in U.S. dollars unless otherwise noted)
▪ Achieved annual production and cost guidance: Achieved initial guidance for the seventh
consecutive year by delivering gold equivalent production of over 345,000 ounces at cash
costs of $736 per payable gold equivalent ounce sold.
▪ Continued our track record of Mineral Reserves growth: Successful exploration activities
in 2018 increased gold Mineral Reserves at the Marigold mine to 3.3 million ounces and at
the Seabee Gold Operation to 608,000 ounces.
▪ Delivered record annual gold production at Seabee: The operation achieved its fifth
consecutive annual production record, producing 95,602 ounces of gold, exceeding the top
end of our upwardly revised annual guidance. Annual cash costs were $505 per payable
ounce of gold sold.
SSR Mining Inc. PAGE 2
▪ Strong operating performance at Marigold: Delivered quarterly gold production of 54,306
ounces, resulting in annual production of 205,161 ounces of gold. Reported annual cash costs
of $723 per payable ounce of gold sold, at the lower end of our improved guidance.
▪ Delivered updated Marigold life of mine plan: Released updated plan on June 18, 2018,
outlining a ten-year mine life, 30% growth in production through 2021, and robust economics.
▪ Declared commercial production at Chinchillas: The mine achieved commercial
production on December 1, 2018, marking a major milestone as we reached sustainable ore
delivery from the Chinchillas mine to the Pirquitas plant. In December 2018, the Pirquitas mill
operated at 3,605 tpd, processing exclusively Chinchillas ore.
▪ Investment in high-grade Las Chispas project: In the fourth quarter we purchased 9.7% of
the issued and outstanding common shares of SilverCrest Metals Inc. for $23 million.
SilverCrest's Las Chispas project represents exposure to an exciting high-grade development
project with exploration upside in a favourable mining jurisdicti on and compelling near -term
development catalysts.
▪ Balance sheet remains strong: Cash and marketable securities totaled $449 million at year-
end 2018 after project development and investments for 2019 growth and beyond.
SSR Mining Inc. PAGE 3
Marigold Mine, U.S.
Three months ended Total
Operating data
December
31, 2018
September
30, 2018
June 30,
2018
March 31,
2018 2018 2017
Total material mined (kt) 17,039 21,284 15,958 16,150 70,431 69,011
Waste removed (kt) 11,361 14,411 8,083 9,052 42,907 43,422
Total ore stacked (kt) 5,679 6,873 7,875 7,099 27,526 25,589
Strip ratio 2.0 2.1 1.0 1.3 1.6 1.7
Mining cost ($/t mined) 1.86 1.51 1.92 1.80 1.76 1.68
Gold stacked grade (g/t) 0.34 0.32 0.42 0.37 0.37 0.35
Processing cost ($/t processed) 1.27 1.12 0.86 0.93 1.03 0.92
Gold recovery (%) 72.9 72.3 74.4 73.6 73.5 73.0
General and admin cost ($/t
processed) 0.51
0.50
0.41
0.42
0.45
0.46
Gold produced (oz) 54,306 58,459 49,436 42,960 205,161 202,240
Gold sold (oz) 50,550 59,612 46,644 42,078 198,884 200,192
Realized gold price ($/oz) (1) 1,227 1,207 1,304 1,331 1,261 1,254
Cash costs ($/oz) (1) 760 711 700 720 723 647
AISC ($/oz) (1) 995 965 981 954 974 896
Financial data ($000s)
Revenue 61,861 71,848 60,752 55,880 250,341 250,825
Income from mine operations 9,977 13,254 14,670 12,312 50,213 66,666
Capital expenditures (2) 8,328 25,461 14,481 4,665 52,935 20,364
Capitalized stripping 1,208 2,529 850 2,902 7,489 22,863
Exploration expenditures (3) 2,096 2,956 3,243 1,914 10,209 4,900
(1) We report the non-GAAP financial measures of realized gold price, cash costs and all-in sustaining costs ("AISC")
per payable ounce of gold sold to manage and evaluate operating performance at the Marigold mine. See
“Cautionary Note Regarding Non-GAAP Measures”.
(2) Includes expansion capital expenditure of $22 million for the twelve months ended December 31, 2018.
(3) Includes capitalized and expensed exploration expenditures.
Mine production
In 2018, the Marigold mine produced 205,161 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 delivered to the leach pads with over 27.5 million
tonnes stacked.
SSR Mining Inc. PAGE 4
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 during the fourth quarter. This compares to 6.9 million tonnes of ore delivered to the heap
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, the Marigold mine produced 54,306 ounces of gold, representing a
7% reduction as compared to 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 $760 per payable
ounce of gold sold in the fourth quarter of 2018 were 7% higher than the previous quarter primarily
due to planned lower grades mined in the second half of the year. Total mining costs of $1.86 per
tonne in the fourth quarter of 2018 were 23% higher than in the previous quarter due to fewer
tonnes mined. Processing and general and administrative unit costs were higher in the fourth
quarter of 2018 than in the third quarter of 2018 due to lower tonnes mined and processed.
Processing and general and administrative costs in the current quarter were comparable on an
absolute basis to the preceding quarter while minin g costs declined. Cash costs per payable
ounce of gold sold in 2018 were $723, higher than the $647 per payable ounce of gold sold in
2017, mainly due to higher leach pad opening inventory unit costs in 2018 relative to 2017.
AISC in the fourth quarter of 2018 was $995 per payable ounce of gold sold compared to $965 in
the third quarter due to increased capital spending mostly related to mobile equipment and
construction of a new leach pad. AISC of $974 per payable ounce of gold sold in 2018 increased
from $896 in 2017, primarily due to higher capital investments and exploration partially offset by
lower capitalized stripping.
Mine sales
A total of 50,550 ounces of gold were sold at an average realized price of $1,227 per ounce during
the fourth quarter of 2018, a decrease of 15% from the 59,612 ounces of gold sold at an average
realized price of $1,207 per ounce during the third quarter of 2018. In 2018, gold sales decreased
marginally and totaled 198,884 ounces, compared to 200,192 ounces in 2017.
SSR Mining Inc. PAGE 5
Exploration
Exploration at Marigold in 2018 successfully replaced mine depletion with growth in Mineral
Reserves compared to the end of 2017. Mineral Reserves increased to 3.30 million gold ounces
(201.5 million tonnes at an average gold grade of 0.47 g/t), while Measured and Indicated Mineral
Resources (inclusive of Mineral Reserves) totaled 5.56 million gold ounces (354.5 million tonnes
at an average gold grade of 0.47 g/t).
Drilling activities during the fourth quarter of 2018 targeted infill drilling and upgrade of Mineral
Resources at Red Dot and growth at various phases of the Mackay Pit, with work also targeting
resource addition. This is consistent with our longer -term objective of completing the necessary
infill and geotechnical drilling to complete pit designs and an economic evaluation over the entire
Red Dot area by mid-year 2019. During the quarter, we completed 21,260 meters of drilling in 60
reverse circulation ("RC") holes at the Mackay pit and within the Red Dot area. RC drilling for the
year totaled 93,276 meters in 259 RC holes.
Following our exploration news release of November 6, 2018, we have received results from an
additional 33 RC drill holes that targeted Mineral Resource portions of the Red Dot deposit and
its northern extensions. T his contributed, in part, to success in achieving our objective of
converting Mineral Resources to Mineral Reserves.
For 2019, we are planning 60,000 meters of drilling as our exploration focus returns to resource
growth on the prospective Valmy, East Basalt, and North and South Red Dot areas.
SSR Mining Inc. PAGE 6
Seabee Gold Operation, Canada
Three months ended
Total
Operating data
December
31, 2018
September
30, 2018
June 30,
2018
March 31,
2018 2018 2017
Total ore milled (t) 86,447 88,273 84,010 93,269 351,999 330,415
Ore milled per day (t/day) 940 959 923 1,036 964 905
Gold mill feed grade (g/t) 10.20 9.52 7.95 8.95 9.16 8.25
Mining cost ($/t mined) 57 48 60 59 56 68
Processing cost ($/t
processed) 26
26
27
21
25 23
Gold recovery (%) 97.6 97.1 97.3 97.4 97.4 97.4
General and admin cost
($/t processed) 63
47
62
53
56 54
Gold produced (oz) 20,473 27,831 23,582 23,716 95,602 83,998
Gold sold (oz) (1) 21,711 29,175 20,512 20,012 91,410 86,087
Realized gold price ($/oz) (2) 1,236 1,210 1,306 1,340 1,267 1,259
Cash costs ($/oz) (2) 502 447 616 481 505 602
AISC ($/oz) (2) 743 596 854 896 755 843
Financial data ($000s)
Revenue 26,890 35,270 26,706 26,789 115,655 108,334
Income from mine operations 7,347
11,061
5,703
6,672
30,783
15,644
Capital expenditures 625 968 1,035 4,426 7,054 7,190
Capitalized development 2,910 1,812 2,069 2,283 9,074 8,294
Exploration expenditures (3) 1,661 2,860 2,745 2,032 9,298 5,959
(1) Beginning with the first quarter of 2018, the holder of the 3% net smelter return royalty elected to receive its royalty
in-kind and we will no longer report these ounces within gold sold.
(2) We report the non -GAAP financial measures of realized gold price, cash costs and AISC per payable ounce of
gold sold to manage and evaluate operating performance at the Seabee Gold Operation. See “Cautionary Note
Regarding Non-GAAP Measures”.
(3) Includes capitalized and expensed exploration expenditures.
Mine production
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.
In 2018, the operation milled 351,999 tonnes of ore, 7% higher than 2017 and 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.
SSR Mining Inc. PAGE 7
In the fourth quarter of 2018, the operation produced 20,473 ounces of gold, a 26% dec rease
primarily due to gold ounces contained in-circuit at year-end 2018 due to timing of gold pours.
During the fourth quarter, 86,447 tonnes of ore were milled at an average gold grade of 10.20 g/t
and recovery of 97.6%. This compares to 88,273 tonnes o f ore milled at an average gold grade
of 9.52 g/t and recovery of 97.1% in the third quarter of 2018.
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, and refining costs
were $502 in the fourth quarter of 2018, higher than the $447 recorded in the third quarter of 2018.
Higher cash costs were due to higher unit mining and general and administrative costs and lower
production. Costs per tonne mined were $57 in the fourth quarter of 2018, 19% higher than in the
previous quarter due to lower tonnes mined. Processing costs per tonne remained comparable to
the prior q uarter, while general and administrative unit costs increased by 34% in the fourth
quarter of 2018 compared to the third quarter of 2018, due to adjustments to payroll accruals
between the two quarters and lower tonnes milled. Cash costs per payable ounce of gold sold in
2018 were $505, lower than the $602 per payable ounce sold in 2017 due to lower unit mining
costs and higher gold mill feed grade.
AISC per payable ounce of gold sold were $743 in the fourth quarter of 2018, compared to $596
in the third quarter, due to higher cash costs and higher per ounce underground capital
development in conjunction with lower ounces sold. In 2018, AISC per payable ounce of gold sold
decreased to $755 from $843 in 2017, mainly due to lower cash costs per payable ounce of gold
sold.
Mine sales
A total of 21,711 ounces of gold were sold at an average realized price of $1,236 per ounce of
gold during the fourth quarter of 2018. This compares to 29,175 ounces of gold sold in the third
quarter of 2018 at an average realiz ed price of $1,210 per ounce of gold. Gold sales totaled
91,410 ounces in 2018 compared to 86,087 ounces in 2017. Realized prices were marginally
higher in 2018 than in 2017.
Exploration
At the Seabee Gold Operation, our 2018 objectives were to maximize Mineral Resource to Mineral
Reserve conversion on the Santoy 8, and Santoy Gap zones. We were successful with those
objectives, as 2018 Mineral Reserves increased 39% after depletion to 608,000 gold ounces
(Proven Mineral Reserves were 94,500 ounces (0.33 million tonnes at an average gold grade of
SSR Mining Inc. PAGE 8
9.00 g/t) and Probable Mineral Reserves were 513,500 ounces (1.73 million tonnes at an average
gold grade of 9.24 g/t)). Measured and Indicated Mineral Resources (inclusive of Mineral
Reserves) at 2018 year -end a re 26% higher at 856,000 gold ounces (Measured Mineral
Resources were 170,000 ounces (0.45 million tonnes at an average gold grade of 11.7 g/t) and
Indicated Mineral Resources were 686,000 ounces (1.85 million tonnes at an average gold grade
of 11.56 g/t)). Inferred Mineral Resources for 2018 are 482,000 gold ounces (1.70 million tonnes
at an average gold grade of 8.82 g/t), reflecting our focus on conversion activities during the year.
During the fourth quarter of 2018, Seabee Gold Operation completed 15,453 meters of
underground drilling for a total of 52,500 meters for the year to infill the Santoy 8A and Santoy
Gap deposits. From surface, in the immediate vicinity of the Santoy mine, we completed 6,168
meters of drilling in the fourth quarter for a total of 24,389 meters of drilling for the year exploring at
the Santoy Gap targets. Discovery and exploration of the Santoy Gap hanging wall ("HW")
resulted in an initial Inferred Mineral Resource being reported in this mineralized structure sitting
adjacent to the Santoy main ore zones. Greenfields drilling during the fourth quarter of 2018
totaled 3,552 meters with activities on the adjacent Fisher property, currently under option from
Taiga Gold Corp.
For 2019, we are planning to drill 68,000 meters in the area of the Santoy mine, with another
16,000 meters of drilling on greenfields targets on property owned or optioned by us.