Ssr Mining Reports Fourth Quarter and Year-End 2019 Results
News Release 20-06
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 20, 2020
SSR MINING REPORTS FOURTH QUARTER AND YEAR-END 2019 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, 2019.
Paul Benson, President and CEO said, “SSR Mining had another successful year in 2019 as we
continued our track record of achieving production and cost guidance for the eighth consecutive
year. We delivered reserve growth at Marigold and resource growth at Seabee, which continue to
support mine life extensions at both assets.
Looking ahead, 2020 consolidated production is forecast to grow to approximately 425,000 gold
equivalent ounces. With over $500 million of cash and an outlook of increasing production and
higher margins at today’s precious metal prices, we are well positioned to continue our track
record of creating value for our shareholders."
Fourth Quarter and Year-End 2019 Highlights:
(All figures are in U.S. dollars unless otherwise noted)
▪ Achieved annual production and cost guidance: Achieved guidance for the eighth
consecutive year by delivering gold equivalent production of 421,828 ounces at cash costs of
$740 per payable gold equivalent ounce sold. (1)
▪ Continued our track record of Mineral Reserves and Resources growth: Successful
exploration activities in 2019 increased gold Mineral Reserves at the Marigold mine to 3.9
million ounces. At the Seabee Gold Operation, gold Measured and Indicated Mineral
Resources (inclusive of Mineral Reserves) increased to 1.1 million ounces and gold Inferred
Mineral Resources increased to 583,000 ounces.
▪ Fourth consecutive year of positive earnings per share: Annual basic attributable income
per share in 2019 was $0.47, a n increase of 840% from 2018. Annual adjusted basic
attributable income per share in 2019 was $0.81, a 252% increase from 2018. (1)
▪ Delivered record annual gold production at Seabee: The operation achieved its sixth
consecutive annual production record, producing 112,137 ounces of gold, exceeding the top
end of our annual guidance. Annual cash costs were $464 per payable ounce of gold sold. (1)
▪ Strong operating performance at Marigold: Delivered gold production of 59,186 ounces for
the fourth quarter of 2019, resulting in annual production of 220,227 ounces of gold, marking
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an annual production record and exceeding the top end of our annual guidance. Reported
annual cash costs of $811 per payable ounce of gold sold. (1)
▪ Successful ramp-up of Puna: Produced 7.7 million ounces of silver in 2019 at annual cash
costs of $10.38 per payable ounce of silver sold. (1) Strong fourth quarter results with
production of 2.1 million ounces of silver and cash costs of $8.90 per payable ounce of silver
sold (1), demonstrating operational improvements made through the year.
▪ Acquired 8,900 hectares contiguous to the Marigold mine: Prospective land package on
trend with several zones of gold mineralization.
▪ Consolidated 100% ownership in Puna Operations: Completed acquisition of the
remaining 25% interest in Puna Operations leading to an immediate increase in silver
production and improved operational flexibility.
▪ Maintained strong liquidity and balance sheet: Cash balance increased to $504 million
and the value of marketable securities increased to $66 million.
▪ Completed $230 million convertible notes offering: Issued $230 million aggregate
principal amount of 2.50% unsecured convertible senior notes on March 19, 2019. A portion
of the proceeds was used to repurchase $150 million of our outstanding $265 million 2.875%
convertible notes.
▪ Published inaugural Sustainability Report: Report outlines our approach to sustainability
and underscores our commitment to transparency with our stakeholders.
(1) We report the non -GAAP financial measures of cash costs per payable ounce of gold and silver sold and basic
attributable income per share to manage and evaluate operating performance. See “ Cautionary Note Regarding
Non-GAAP Measures”.
SSR Mining Inc. PAGE 3
Marigold Mine, U.S.
Three months ended Total
Operating data
December 31,
2019
September 30,
2019
June 30,
2019
March 31,
2019 2019 2018
Total material mined (kt) 18,457 19,033 19,254 17,295 74,039 70,431
Waste removed (kt) 11,736 12,676 12,185 11,767 48,364 42,907
Total ore stacked (kt) 6,721 6,357 7,070 5,528 25,676 27,526
Gold stacked grade (g/t) 0.36 0.51 0.38 0.34 0.40 0.37
Gold recovery (%) 76.0 77.0 75.0 73.0 75.4 73.5
Strip ratio 1.7 2.0 1.7 2.1 1.9 1.6
Mining cost ($/t mined) 1.83 1.73 1.65 1.73 1.74 1.76
Processing cost ($/t processed) 1.03 1.17 1.01 1.20 1.10 1.03
General and administrative cost
($/t processed) 0.54 0.54 0.47 0.54 0.51 0.45
Gold produced (oz) 59,186 52,968 54,922 53,151 220,227 205,161
Gold sold (oz) 61,088 50,650 59,702 55,517 226,957 198,884
Realized gold price ($/oz) (1) 1,478 1,481 1,309 1,303 1,391 1,261
Cash costs ($/oz) (1) 778 822 835 812 811 723
AISC ($/oz) (1) 1,117 1,104 986 930 1,034 974
Financial data ($000s)
Revenue 90,198 74,820 78,039 72,263 315,320 250,341
Income from mine operations 30,263 22,064 13,939 12,981 79,247 50,213
Capital expenditures (2) 17,768 10,496 6,924 3,167 38,355 52,935
Capitalized stripping 2,116 2,031 871 2,293 7,311 7,489
Exploration expenditures (3) 1,190 1,990 2,452 3,653 9,285 10,209
(1) 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 Marigold mine. For further information, please
refer to “Cautionary Note Regarding Non-GAAP Measures”.
(2) Excludes capitalized exploration expenditures.
(3) Includes capitalized and expensed exploration expenditures.
Mine production
For the year ended December 31, 2019, the Marigold mine produced 220,227 ounces of gold, an
increase of 7% compared to the 205,161 ounces of gold produced for the year ended 2018. For
the year ended 2019, gold sales were 226 ,957 ounces as 2019 began with 6,300 ounces in
finished goods inventory.
For the year ended December 31, 2019, total material mined was 74.0 million tonnes, a 5%
increase as compared to the year ended 2018. During the year ended December 31, 2019, we
SSR Mining Inc. PAGE 4
mined 25.7 million ore tonnes, a 7% decrease from the previous year, offset by an 8% increase
in gold stacked grade.
During the fourth quarter of 2019, 18.5 million tonnes of material were mined, a decrease of 3%
compared to the third quarter of 2019, due to a long shovel move and variance to planned haulage
cycles. A new leach pad cell was commissioned on schedule with material stacking commencing
in the fourth quarter.
During the fourth quarter of 2019, we delivered approximately 6.7 million tonnes of ore to the heap
leach pads at a gold grade of 0.36 g/t. This compares to 6.4 million tonnes of ore delivered to the
heap leach pads at a gold grade of 0.51 g/t in the third quarter of 2019. Gold grade mined in the
fourth quarter of 2019 was 29% lower than the prior quarter as primary ore deliveries from Mackay
Phase 5 wound down and were replaced by lower grade material from Mackay Phase 4. The strip
ratio declined to 1.7:1 in the fourth quarter of 2019, a decrease of 12% compared to the prior
quarter.
During the fourth quarter of 2019, the Marigold mine produced 59,186 ounces of gol d, a 12%
increase compared to the prior quarter. The increase was due to higher-grade ore stacked during
the third quarter of 2019, becoming available for production in the fourth quarter of 2019.
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”.
For the year ended December 31, 2019, cash costs per payable ounce of gold sold were $811,
an increase of 12% compared to the year ended 2018, primarily due to higher leach pad opening
inventory unit costs. Total mining costs of $1.74 per tonne for the year ended December 31, 2019
were consistent with the prior year primarily due to 5% higher tonnes mined, offset partially by 4%
higher total mining cos ts. Processing and general and administrative unit costs were higher for
the year ended December 31, 2019 compared to the prior year mainly due to 7% fewer ore tonnes
mined. Total processing costs for the year ended December 31, 2019 were consistent with t otal
processing costs for the year ended 2018, while general and administrative costs increased 7%
primarily due to higher labor costs.
For the year ended December 31, 2019, AISC per payable ounce of gold sold was $1,034
compared to $974 for the year ended December 31, 2018, primarily due to the higher cash costs
referred to above, offset partially by an increase in the number of ounces sold.
In the fourth quarter of 2019, cash costs per payable ounce of gold sold were $778, a decrease
of 5% compared to the previous quarter primarily due to lower leach pad opening inventory unit
costs in the fourth quarter resulting from higher grades mined in the third quarter. Total mining
costs of $1.83 per tonne in the fourth quarter of 2019 were 6% higher than the pre vious quarter
due to 3% fewer tonnes mined and 3% higher total mining costs. Total mining costs were higher
in the fourth quarter of 2019 mainly due to the timing of haul truck tire replacements. Processing
unit costs were 12% lower in the fourth quarter of 2019 compared to the previous quarter mainly
due to 6% higher ore tonnes mined and 7% lower total processing costs. Total processing costs
were lower in the fourth quarter of 2019 mainly due to lower cyanide consumption and lower
power unit rates. Genera l and administrative unit costs in the fourth quarter of 2019 were
consistent with the previous quarter as higher ore tonnes mined were offset by higher labor costs.
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In the fourth quarter of 2019, AISC per payable ounce of gold sold was $1,117 compared to $1,104
in the third quarter of 2019 due to higher planned sustaining capital expenditures, primarily related
to the purchase of a PC7000 Komatsu shovel during the quarter for approximately $10.6 million.
Mine sales
Realized gold price is a non-GAAP financial measure. Please see “Cautionary Note Regarding
Non-GAAP Measures”.
For the year ended December 31, 2019, we sold 226,957 ounces of gold, a 14% increase
compared to sales of 198,884 ounces of gold during the prior year. We realized an average gold
price of $1,391 per ounce during the year ended December 31, 2019, compared to an average
realized gold price of $1,261 per ounce during the year ended December 31, 2018.
In the fourth quarter of 2019, we sold 61,088 ounces of gold, a 21% increase compared to sales
of 50,650 ounces of gold in the third quarter of 2019. We realized an average gold price of $1,478
per ounce during the fourth quarter of 2019, compared to an average realized gold price of $1,481
per ounce during the third quarter of 2019.
Exploration
The main focus of the 2019 exploration program at Marigold was to convert Red Dot Mineral
Resources into Mineral Reserves. During previous quarters, we conducted exploration drilling for
additional Mineral Resources along areas that were north and south of Red Dot, within the Mackay
pit and on Valmy target areas such as Crossfire and East Basalt. During the fourth quarter of
2019, we completed a total of 64 reverse circulation ("RC") drill holes for 20,682 meters on these
targets.
During the year ended December 31, 2019, our Red Dot exploration program focused on
geotechnical drilling and engineering with the goal of declaring additional Mineral Reserves. In
the fourth quarter of 2019, we completed the second phase of confirmation drilling, which included
nine core holes for 3,700 meters. Based on the results of these evaluations, we converted Mineral
Resources to Mineral Reserves and Red Dot is anticipated to extend the Marigold mine life into
the early 2030s, without requiring expansion of the haul fleet or the associated expansion capital.
Exploration at Marigold for the year ended December 31, 2019 was successful in replacing mined
depletion and growing Mineral Reserves compared to the year ended December 31, 2018.
Including leach pad inventory, year-over-year Probable Mineral Reserves increased by 18%. At
the same time, Indicated Mineral Resources (inclusive of Mineral Reserves and leach pad
inventory) decreased by 11% due to depletion and model changes. Inferred Miner al Resources
declined by 55% to 0.18 million gold ounces (16.2 million tonnes at an average gold grade of 0.35
g/t). Please see the section “Mineral Reserves and Mineral Resources” for more detail on our
Mineral Reserves and Mineral Resources.
During the fourth quarter of 2019, we completed 20,825 meters of drilling in 64 RC drill holes at
Trenton Canyon. RC drilling for the year amounted to 93,006 meters in 272 drill holes.
Following the exploration release of July 30, 2019, we received another 42 intercepts with grade-
thickness products exceeding 20 gram-meters. These results, in addition to earlier published drill
assays, contribute to the Mineral Resources reported for the Marigold mine.
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For 2020, we are planning 64,000 meters of RC and cor e drilling for resource growth at Trenton
Canyon, Valmy, East Basalt, Mackay, and on two recently acquired small land parcels internal to
Marigold's mineral claims package. This work includes diamond drilling to explore for higher-grade
sulphide hosted gold deposits between East Basalt and Trenton Canyon.
Seabee Gold Operation, Canada
Three months ended Total
Operating data
December 31,
2019
September 30,
2019
June 30,
2019
March 31,
2019 2019 2018
Total ore milled (t) 87,394 77,465 88,424 90,756 344,039 351,999
Ore milled per day (t/day) 950 842 971 1,008 943 964
Gold mill feed grade (g/t) 7.89 12.39 9.83 8.59 9.56 9.16
Gold recovery (%) 97.9 98.8 98.4 97.2 98.2 97.4
Mining cost ($/t mined) 59 61 53 52 56 56
Processing cost ($/t processed) 29 28 35 28 30 25
General and administrative cost
($/t processed) 59 59 50 53 54 56
Gold produced (oz) 22,069 32,345 26,539 31,184 112,137 95,602
Gold sold (oz) (1) 24,362 28,278 24,276 27,999 104,915 91,410
Realized gold price ($/oz) (2) 1,484 1,480 1,329 1,302 1,398 1,267
Cash costs ($/oz) (2) 505 373 526 467 464 505
AISC ($/oz) (2) 751 715 828 947 812 755
Financial data ($000s)
Revenue 36,142 41,331 32,237 36,431 146,141 115,655
Income from mine operations 13,735 22,134 11,762 13,672 61,303 30,783
Capital expenditures 2,772 5,406 3,358 8,772 20,308 7,054
Capitalized development 3,312 3,352 3,345 3,379 13,388 9,074
Exploration expenditures (3) 1,210 2,131 2,257 3,172 8,770 9,298
(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.
SSR Mining Inc. PAGE 7
Mine production
For the year ended December 31, 2019, the Seabee Gold Operation produced 112,137 ounces
of gold, an annual production record and a 17% increase compared to the year ended December
31, 2018. The increase in gold production was mainly due to higher mill feed head grade, in
addition to 1,244 ounces (on a gross basis) recovered from sludge, fines and cathodes during the
third quarter of 2019.
For the year ended December 31, 2019, the operation milled 344,039 tonnes of ore, a decrease
of 2% from the 351,999 tonnes milled during the year ended December 31, 2018. For the year
ended December 31, 2019, the average gold mill feed grade was 9.56 g/t, a 4% increase
compared to the prior year. The Santoy mine supplied 100% of ore milled, predominantly from
long hole stopes.
In the fourth quarter of 2019, the operation produced 22,069 ounces of gold, a 32% decrease
from the third quarter of 2019, mainly due to lower gold grades more than offsetting higher milling
rates.
In the fourth quarter of 2019, the operation milled 87,394 tonnes of ore compared to 77,465 tonnes
in the third quarter of 2019. The mill achieved an average throughput of 950 tonnes per day over
the fourth quarter of 2019, a 13% increase compared to the previous quarter, mainly due to
increased mill feed from the Santoy mine. During the fourth quarter of 2019, gold mill feed grade
was 7.89 g/t, a 36% decrease compared to the third quarter of 2019, as a result of stope
sequencing. Gold recovery for the fourth quarter of 2019 was 97.9%, consistent with 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”.
For the year ended December 31, 2019, cash costs per payable ounce of gold sold were $464,
8% lower than the $505 for the year ended December 31, 2018. The decrease is due primarily to
a 15% increase in ounces sold in 2019 as a result of the higher gold mill feed grade, offset partially
by higher processing costs.
For the year ended December 31, 2019, AISC per payable ounce of gold sold was $812, 8%
higher than the $755 for the year ended December 31, 2018. The increase is due to higher
planned capital expenditures in 2019, related mainly to the Tailings Management Facility
expansion, offset partially by the decrease in cash costs.
For the fourth quarter of 2019, cash costs per payable ounce of gold sold were $505, 35% higher
than the $373 for the third quarter of 2019, due primarily to lower gold grade, 14% fewer ounces
sold compared to the third quarter of 2019 and increases in total mining and general and
administrative costs.
For the fourth quarter of 2019, AISC per payable ounce of gold sold was $751, compared to $715
in the third quarter of 2019 due to higher cash costs in conjunction with lower ounces sold in the
fourth quarter of 2019, offset partially by lower sustaining capital expenditures.
SSR Mining Inc. PAGE 8
Mine sales
Realized gold price is a non-GAAP financial measure. Please see “Cautionary Note Regarding
Non-GAAP Measures”.
For the year ended December 31, 2019, we sold 104,915 ounces of gold, a 15% increase
compared to the 91,410 ounces of gold sold in during the prior year. We realized an average gold
price of $1,398 per ounce during the year ended December 31, 201 9 compared to an average
realized gold price of $1,267 per ounce during the year ended December 31, 2018.
In the fourth quarter of 2019, we sold 24,362 ounces of gold, a decrease of 14% compared to the
28,278 ounces of gold sold in the third quarter of 2 019. We realized an average gold price of
$1,484 per ounce during the fourth quarter of 2019 compared to an average realized gold price
of $1,480 per ounce during the third quarter of 2019.
Exploration
In 2019, exploration at Seabee focused on increasing and upgrading Mineral Resources near the
Santoy mine through 68,000 meters of drilling from surface and underground. Specific targets
included Santoy 8A and Santoy Gap and the recently discovered Inferred Mineral Resources at
Gap Hanging Wall (“Gap HW”).
For the year ended December 31, 2019, Mineral Reserves decreased by 18%, due to mining
depletion; however, the average gold grade is 11% higher compared to the year ended December
31, 2018. As of December 31, 2019, Measured and Indicated Mineral Resources (inclusive of
Mineral Reserves) increased by 23% at an average gold grade of 10.61 g/t as a result of our
exploration focus at Gap HW. As of December 31, 2019, Inferred Mineral Resources are 583,000
ounces (2.13 million tonnes at an average gold grade of 8.5 0 g/t), 21% higher compared to the
year ended December 31, 2018, due to conversion and continued exploration activity at Gap HW.
Gap HW is now a significant discovery for the Seabee Gold Operation and remains open on strike
and at depth. Please see the section “Mineral Reserves and Mineral Resources” for more detail
on our Mineral Reserves and Mineral Resources.
During the f ourth quarter of 2019, Seabee Gold Operation completed 12,738 meters of
underground drilling for a total of 68,158 meters for the year ended December 31, 2019 to convert
and extend portions of Santoy 8A, Santoy Gap and Gap HW deposits. The majority of the drilled
meters were targeting Gap HW.
For 2020, we are planning to drill 50,000 meters in the area of the Santoy mine and Gap HW as
brownfield work, with another 37,000 meters of drilling on greenfield targets on tenures controlled
by us. Additionally, we are planning 12,000 meters of greenfield drilling on the Fisher property.