Ssr Mining Reports Second Quarter 2020 Results
News Release 20-25
August 6, 2020
SSR MINING REPORTS SECOND QUARTER 2020 RESULTS
VANCOUVER, B.C. - SSR Mining Inc. (NASDAQ: SSRM) (TSX: SSRM) (“SSR Mining”) reports
consolidated financial results for the second quarter ended June 30, 2020.
Paul Benson, President and CEO said, "Each of our sites have responded admirably to this
challenging environment, implementing new protocols to keep our employees safe when they
come to work. Corporately, we reported positive income from mine operations totaling $34
million during the quarter and our cash balance was further strengthened, sitting at $462 million
as of June 30. We have been pleased with the safe ramp-ups at both Seabee and Puna, with
both operations implementing phased restarts duri ng the quarter. Importantly, we continued to
advance our zero-premium merger with Alacer Gold and anticipate closing the transaction in the
near-term.”
Second Quarter 2020 Highlights:
(All figures are in U.S. dollars unless otherwise noted)
▪ Financial performance: With Seabee Gold Operation and Puna Operations on COVID-19
related temporary care and maintenance for the quarter, reported positive income from mine
operations totaling $34.2 million, a net loss of $6.3 million, or loss per share of $0.05, and
adjusted attributable net loss of $2.1 million, or loss per share of $0.02.(1)
▪ Announced a zero-premium merger with Alacer Gold: Completion of the transaction with
Alacer Gold will create a leading intermediate precious metals producer with robust margins,
strong free cash flow generation, and long mine lives led by a highly experienced
management team with a track record of value creation.
▪ Maintained strong balance sheet and liquidity: Cash balance at quarter end increased to
$461.7 million.
▪ Strong operational result at the Marigold mine: Produced 49,918 ounces of gold at cash
costs of $864 per payable ounce of gold sold. (1) Total material mined was over 22 million
tonnes, a quarterly record in Marigold's 31 year history.
▪ Continued exploration success: Drilling at Trenton Canyon yielded high-grade gold
results from newly discovered sulphide mineralization in a geologic setting analogous to
other high-grade underground gold mines in Nevada.
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▪ Safe restart of operation at Seabee Gold Operation and Puna Operations: At Seabee, a
phased restart was implemented beginning with underground mine development in early
June. At Puna Operations, transport of ore from Chinchillas to the plant began May 22,
followed by concentrate production beginning June 12, and mining of ore at the Chinchillas
mine on June 25.
▪ Divested SilverCrest equity position: On May 14, 2020, sold entire SilverCrest Metals Inc.
investment for a pre-tax gain of approximately C$55.3 million.
(1) We report the non-GAAP financial measures of cash cost s per payable ounce of gold and silver sold, adjusted
attributable net income (loss) and adjusted attributabl e net income (loss) per share to manage and evaluate our
operating performance. See “Cautionary Note Regarding Non-GAAP Measures”.
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Marigold mine, U.S.
Three months ended
Operating data
June 30
2020
March 31
2020
December 31
2019
September 30
2019
June 30
2019
Total material mined (kt) 22,054 20,259 18,457 19,033 19,254
Waste removed (kt) 16,947 15,255 11,736 12,676 12,185
Total ore stacked (kt) 5,107 5,004 6,721 6,357 7,070
Gold stacked grade (g/t) 0.30 0.30 0.36 0.51 0.38
Gold recovery (%) 76.0 76.0 76.0 77.0 75.0
Strip ratio 3.3 3.0 1.7 2.0 1.7
Mining cost ($/t mined) $ 1.46 $ 1.64 $ 1.83 $ 1.73 $ 1.65
Processing cost ($/t processed) $ 1.18 $ 1.21 $ 1.03 $ 1.17 $ 1.01
General and administrative costs
($/t processed) $ 0.78 $ 0.70 $ 0.54 $ 0.54 $ 0.47
Gold produced (oz) 49,918 58,448 59,186 52,968 54,922
Gold sold (oz) 46,387 58,028 61,088 50,650 59,702
Realized gold price ($/oz) (1) $ 1,722 $ 1,588 $ 1,478 $ 1,481 $ 1,309
Cash costs ($/oz) (1) $ 864 $ 824 $ 778 $ 822 $ 835
AISC ($/oz) (1) $ 1,373 $ 1,277 $ 1,117 $ 1,104 $ 986
Financial data ($000s)
Revenue $ 79,786 $ 92,081 $ 90,198 $ 74,820 $ 78,039
Income from mine operations $ 30,261 $ 32,457 $ 30,263 $ 22,064 $ 13,939
Capital expenditures (2) $ 13,348 $ 13,900 $ 17,768 $ 10,496 $ 6,924
Capitalized stripping $ 8,733 $ 10,927 $ 2,116 $ 2,031 $ 871
Exploration expenditures (3) $ 1,135 $ 1,102 $ 1,190 $ 1,990 $ 2,452
(1) We report the non-GAAP financial meas ures of realized gold price, cash costs and AISC per payable ounce of
gold sold to manage and evaluate oper ating 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
In the second quarter of 2020, 22.1 million tonnes of material were mined, a 9% increase
compared to the first quarter of 2020, reflecting the impact of shorter haul distances associated
with increased waste movement and enhanced shovel and truck availability.
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During the second quarter of 2020, we delivered approximately 5.1 million tonnes of ore to the
heap leach pads at a gold grade of 0.30 g/t. This compares to 5.0 million tonnes of ore delivered
to the heap leach pads at a gold grade of 0.30 g/t in the first quarter of 2020. The gold grade
delivered to the leach pad was comparable to the prior quarter; however, the strip ratio
increased by 10% to 3.3:1 in the second quarter of 2020 compared to the prior quarter. The
consistency in gold grade from the previous quarter reflects the continued mining in similar
areas as the prior quarter. The increase in strip ratio is due to further stripping of upper portions
of the Mackay pit. During the second quarter, we continued construction on our new leach pad.
Construction is progressing to plan and is on track to be completed late this year.
During the second quarter of 2020, the Marigold mine produced 49,918 ounces of gold, a
decrease of 15% compared to the prior quarter due to lower ounces stacked through the first
two quarters of 2020. The first quarter of 2020 benefited from a greater number of tonnes
stacked at a higher grade during 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”.
In the second quarter of 2020, cash costs per payable ounce of gold sold were $864, a 5%
increase compared to the prior quarter due to an increase in per unit royalty costs due to higher
realized gold prices and lower costs capitalized to deferred stripping. Total unit mining costs of
$1.46 per tonne in the second quarter of 2020 were 11% lower than the previous quarter
primarily due to a 9% increase in tonnes mined, lower diesel costs and lower maintenance costs
due to component change-out timing. Processing unit costs were 2% lower than the previous
quarter due to a 2% increase in ore tonnes stacked at similar total processing costs. General
and administrative costs unit costs were 11% higher in the second quarter of 2020 compared to
the first quarter of 2020 due to a 13% increase in costs as a result of employee transportation
and other costs relating to COVID-19 safety protocols.
In the second quarter of 2020, AISC per payable ounce of gold sold was $1,373, an 8%
increase compared to the prior quarter due to higher cash costs and an increase in capital
expenditures per payable gold ounce sold. Capital expenditures during the second quarter
included the planned purchase of a new haul truck, construction of a new leach pad and
capitalized maintenance components.
Mine sales
Average realized gold price is a non-GAAP fi nancial measure. Please see “Cautionary Note
Regarding Non-GAAP Measures”.
In the second quarter of 2020, we sold 46,387 ounces of gold, a 20% decrease compared to
sales of 58,028 ounces of gold sold in the first quarter of 2020 due to lower production and a
marginal build-up in finished goods inventories. We realized an average gold price of $1,722 per
ounce during the second quarter of 2020, an increase of 8% compared to an average realized
gold price of $1,588 per ounce during the first quarter of 2020.
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Exploration
Our exploration plan for 2020 is focused on the discovery of additional Mineral Resources south
of the currently producing Mackay Pit, including targets at Trenton Canyon, Valmy, East Basalt
and Crossfire. During the second quarter of 2020, exploration drilling on extensions to oxide
mineralization have demonstrated positive results at Trenton Canyon, Valmy and Crossfire.
During the second quarter of 2020, exploration drilling amounted to 19,400 meters in 61 holes,
with the majority of the drilling completed at Trenton Canyon and Valmy. We have drilled over
39,870 meters in 118 drill holes during the six months ended June 30, 2020.
At Trenton Canyon, we continue to systematically explore extensions to existing near-surface
oxide deposits similar to those mined at Marigold and higher-grade sulphide deposits
associated with deep fault structures and favourable Comus Formation sedimentary rocks
similar to those hosting the gold deposits at the Turquoise Ridge mine. Our exploration plan for
2020 now includes 6,300 meters of core drilling supported by seismic and gravity geophysical
surveys for high-grade, sulphide gold mineralization, and 75,000 meters of reverse circulation
drilling for oxide gold mineralization.
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Seabee Gold Operation, Canada
Three months ended
Operating data
June 30
2020
March 31
2020
December 31
2019
September 30
2019
June 30
2019
Total ore milled (t) — 89,282 87,394 77,465 88,424
Ore milled per day (t/day) — 981 950 842 971
Gold mill feed grade (g/t) — 10.34 7.89 12.39 9.83
Gold recovery (%) — 98.1 97.9 98.8 98.4
Mining costs ($/t mined) $ — $ 68 $ 59 $ 61 $ 53
Processing costs ($/t processed) $ — $ 31 $ 29 $ 28 $ 35
General and administrative costs
($/t processed) $ — $ 65 $ 59 $ 59 $ 50
Gold produced (oz) — 29,521 22,069 32,345 26,539
Gold sold (oz) — 27,714 24,362 28,278 24,276
Realized gold price ($/oz) (1) $ — $ 1,615 $ 1,484 $ 1,480 $ 1,329
Cash costs ($/oz) (1) $ — $ 544 $ 505 $ 373 $ 526
AISC ($/oz) (1) $ — $ 982 $ 751 $ 715 $ 828
Financial data ($000s)
Revenue $ — $ 44,697 $ 36,142 $ 41,331 $ 32,237
Income from mine operations $ — $ 19,731 $ 13,735 $ 22,134 $ 11,762
Capital expenditures (2) $ 1,476 $ 9,027 $ 2,772 $ 5,406 $ 3,358
Capitalized development $ 1,538 $ 3,067 $ 3,312 $ 3,352 $ 3,345
Exploration expenditures (3) $ 475 $ 2,437 $ 1,210 $ 2,131 $ 2,257
(1) We report the non-GAAP financial meas ures of realized gold price, cash costs and AISC per payable ounce of
gold sold to manage and evaluate oper ating performance at the Seabee Gold O peration. For further information,
please refer to “Cautionary Note Regarding Non-GAAP Measures.”
(2) Excludes capitalized exploration expenditures.
(3) Includes capitalized and expens ed exploration expenditures.
Mine production
The Seabee Gold Operations did not mill any ore or produce any gold during the second quarter
of 2020 as operations remained temporarily suspended due to the COVID-19 pandemic.
In response to the COVID-19 pandemic, our Seabee Gold Operation was voluntarily placed into
temporary care and maintenance on March 25, 2020 as a precautionary measure to protect our
employees, their families and our communities. Through this period, employees maintained the
mine in a state of operational readiness.
In June 2020, we commenced a phased restart of production. The first phase focused on
underground ventilation raise and capital development within the mine while we assessed
COVID-19-related protocols. Limited ore extraction was initiated at the end of June. In early
July, we commenced the second phase, which involved increasing underground development
SSR Mining Inc. PAGE 7
rates and mine production while continuing to monitor COVID-19 related protocols. In August,
we expect to commence the third and final phase, which involves a restart of milling operations
and ramp up to full mine production with a complete workforce, while continuing to maintain
effective COVID-19-related protocols.
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 and AISC per payable ounce of gold sold were nil during the second quarter of
2020, as no production occurred. Expenditures incurred during the quarter were classified as
care and maintenance expenses.
During the second quarter, we incurred $3 million in capital expenditures, mainly related to mine
development, the purchase of mining equipment and the tailings management project.
Mine sales
There were no gold sales during the second quarter of 2020 as a direct result of the temporary
suspension of operations.
Exploration
Exploration plans, including geology drilling, at the Seabee Gold Operation for 2020 initially
focused on Mineral Reserves definition and Mineral Resources addition at Gap Hanging Wall
("Gap HW") and increasing Mineral Reserves and Mineral Resources at Santoy 8A.
Due to the temporary suspension of operations prompted by the COVID-19 pandemic, we were
unable to complete any exploration work at the site in the second quarter. For the remainder of
2020, we have reduced our underground drilling to 38,000 meters and surface drilling to 7,500
meters.
In the second quarter, development began on the access drift to the Gap HW of the Santoy
mine. We expect to intersect the existing Gap HW Mineral Resources in the third quarter of
2020 and then develop the structure as we target establishing a new Mineral Reserve at Gap
HW when estimated at year-end 2020.
Exploration at Seabee recommenced in July 2020. The focus for the remainder of 2020 is
expected to be on infill drilling and extension to Gap HW. Additionally, a 3,000 meter surface
drill program focused at the Fisher property is expected to begin in the third quarter of 2020.
SSR Mining Inc. PAGE 8
Puna Operations, Argentina
(amounts presented on 100% basis)
Three months ended
Operating data
June 30
2020
March 31
2020
December 31
2019
September 30
2019
June 30
2019
Total material mined (kt) 91 1,953 3,244 3,116 3,304
Waste removed (kt) 43 1,674 2,725 2,531 3,114
Strip ratio 0.9 6.0 5.3 4.3 16.4
Ore milled (kt) 78 340 400 336 313
Silver mill feed grade (g/t) 159 170 174 165 160
Lead mill feed grade (%) 0.78 0.81 0.99 0.81 0.71
Zinc mill feed grade (%) 0.54 0.44 0.63 0.60 0.46
Silver recovery (%) 91.6 95.3 95.1 93.5 92.4
Lead recovery (%) 87.0 91.4 91.9 88.1 79.4
Zinc recovery (%) 38.5 55.0 54.3 49.3 48.1
Mining costs ($/t mined) $ 11.10 $ 3.62 $ 2.62 $ 2.76 $ 2.33
Processing costs ($/t milled) $ 46.07 $ 29.98 $ 29.53 $ 36.34 $ 32.57
General and administrative costs
($/t milled) $ 7.55 $ 8.36 $ 9.11 $ 9.24 $ 8.27
Silver produced ('000 oz) 366 1,770 2,132 1,664 1,486
Silver sold ('000 oz) 624 1,834 2,584 1,505 2,679
Lead produced ('000 lb) (1) 1,176 5,536 7,985 5,304 3,879
Lead sold ('000 lb) (1) 1,683 6,407 9,371 4,119 7,652
Zinc produced ('000 lb) (2) 359 1,821 3,007 2,206 1,539
Zinc sold ('000 lb) (2) 418 2,166 3,067 2,030 5,757
Realized silver price ($/oz) (3) $ 15.45 $ 17.47 $ 17.32 $ 17.31 $ 14.92
Realized lead price ($/lb) (3) $ 0.71 $ 0.85 $ 0.92 $ 0.94 $ 0.85
Realized zinc price ($/lb) (3) $ 0.86 $ 0.88 $ 1.11 $ 1.03 $ 1.28
Cash costs ($/oz) (3,5) $ 13.51 $ 13.49 $ 8.90 $ 14.22 $ 9.80
AISC ($/oz) (3,5) $ 17.68 $ 16.40 $ 11.18 $ 17.36 $ 13.08
Financial Data ($000s)
Revenue $ 12,699 $ 27,685 $ 51,263 $ 31,697 $ 44,873
Income (loss) from mine
operations $ 3,916 $ (7,405) $ 14,915 $ 7,708 $ 4,126
Capital expenditures (4) $ 1,773 $ 2,088 $ 2,134 $ 1,782 $ 1,157
Capitalized stripping $ — $ 2,192 $ 2,565 $ 1,385 $ 6,273
Exploration expenditures $ 5 $ 150 $ 492 $ 229 $ 65
(1) Data for lead production and sales relate only to lead in lead concentrate.
(2) Data for zinc production and sales relate only to zinc in zinc concentrate.