Ssr Mining Reports Second Quarter 2023 Results Second Quarter 2023 Highlights (1)
SSR Mining Inc.
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News Release
August 2, 2023
SSR MINING REPORTS SECOND QUARTER 2023 RESULTS
SECOND QUARTER 2023 HIGHLIGHTS (1)
• ATTRIBUTABLE AND ADJUSTED ATTRIBUTABLE DILUTED EARNINGS PER SHARE OF $0.35 AND $0.35, RESPECTIVELY
• QUARTERLY PRODUCTION OF 156,625 GOLD EQUIVALENT OUNCES AT COST OF SALES OF $1,155 AND AISC OF $1,633 PER OUNCE
• YEAR-TO-DATE PRODUCTION OF 303,518 GOLD EQUIVALENT OUNCES AT COST OF SALES OF $1,224 AND AISC OF $1,663 PER OUNCE
• QUARTERLY OPERATING CASH FLOW AND FREE CASH FLOW OF $80.3 MILLION AND $22.4 MILLION, RESPECTIVELY
• QUARTERLY OPERATING CASH FLOW AND FREE CASH FLOW BEFORE WORKING CAPITAL ADJUSTMENTS OF $104.3 MILLION AND
$46.3 MILLION, RESPECTIVELY
• REPURCHASED 2.7 MILLION SHARES FOR $40.1 MILLION IN THE SECOND QUARTER; YEAR-TO-DATE 2023 CAPITAL RETURNS NOW
TOTAL APPROXIMATELY $74 MILLION AND ON TRACK FOR A MINIMUM FULL-YEAR CAPITAL RETURNS YIELD OF 3.4%
• ANNOUNCED NEW NORMAL COURSE ISSUER BID (“NCIB”) ENABLING THE COMPANY TO REPURCHASE UP TO 10,200,000 SHARES
THROUGH JUNE 19, 2024
• COMMENCED WASTE STRIPPING AT THE ÇAKMAKTEPE EXTENSION PROJECT; FIRST PRODUCTION ON TRACK WITHIN 2023
• ACQUIRED AN UP TO 40% OWNERSHIP INTEREST AND OPERATORSHIP IN THE WORLD-CLASS HOD MADEN GOLD-COPPER PROJECT,
TARGETING A CONSTRUCTION DECISION IN 2024 AND FIRST PRODUCTION IN 2027
• PUBLISHED FIFTH ANNUAL ESG AND SUSTAINABILITY REPORT
DENVER - SSR Mining Inc. (NASDAQ /TSX: SSRM, ASX: SSR) ("SSR Mining" or the “Company") reports consolidated
financial results for the second quarter ended June 30, 2023. In addition, the Board of Directors declared a quarterly cash
dividend of $0.07 per common share payable on September 11, 2023 to holders of record at the close of business on August
14, 2023. This dividend qualifies as an 'eligible dividend' for Canadian tax purposes.
Rod Antal, Executive Chairman of SSR Mining , said, “As we close the first half of 2023, our consolidated o perating and
financial results have generally been well aligned to our initial expectations with output from Çöpler, Marigold and Puna
partially offsetting the slower start to the year at Seabee. In the second half of the year, we expect all four of our operations
to deliver improved consolidated production of approximately four hundred thousand gold equivalent ounces at reduced
costs, resulting in strong free cash flow generation. While we are tracking to the lower end of our consolidated production
guidance as a result of Seabee’s year-to-date performance, it is pleasing to see the mine positioned for an improved second
half, particularly as production levels and grades improved in July.
Given our expectations for a strong second half of 2023 , we have bee n very active with our capital returns program,
repurchasing over $45 million of our shares in the first half of the year. Combined with our base dividend, we are on track
to exceed $100 million in capital returns in 2023, or a 3.4% yield.
From a growth perspective, we continue to advance technical work to support anticipated updated life of mine plans at
Çöpler and Marigold. In addition, we initiated waste stripping activities at Çakmaktepe Extension and remain on track for
first gold produ ction from the project within the year. Finally, at Hod Maden, initial site preparation activities are currently
underway and we continue to expect an updated technical report and construction decision for the project in 2024. Overall,
SSR Mining remains in a position of strength, supported by a significant cash position, key growth catalysts and the tailwind
of improving production and free cash flow into the end of 2023.”
(1) The Company reports non -GAAP financial measures including adjusted attributable net income, adjusted attributable net income per share, cash generated by operating
activities before working capital adjustments, free cash flow, free cash flow before changes in working capital, total ca sh, net cash (debt), cash costs and AISC per ounce sold
(a common measure in the mining industry), to manage and evaluate its operating performance at its mines. See "Cautionary Note Regarding Non -GAAP Financial Measures"
for an explanation of these financial measures and a reconciliation of these financial measures to the most comparable GAAP financial measures.
SSR Mining Inc.
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Second Quarter 2023 Highlights: (1)
(All figures are in U.S. dollars unless otherwise noted)
▪ Operating performance tracking well against full -year guidance: The Company delivered second quarter 2023
production of 156,625 gold equivalent ounces at cost of sales of $1,155 per gold equivalent ounce and all-in sustaining
costs (“AISC”) of $1,633 per gold equivalent ounce. Year-to-date production is 303,518 gold equivalent ounces at cost
of sales of $1,224 per gold equivalent ounce and AISC of $1,663 per gold equivalent ounce. In the second half of 2023,
the Company expects production to be evenly distributed over the balance of the year. The Company’s consolidated
2023 production guidance of 700 to 780 thousand gold equivalent ounces at cost of sales of $1,055 to $1,115 per gold
equivalent ounce and AISC of $1,365 to $1,425 per gold equivalent ounce remains unchanged.
▪ Strong financial results: Attributable net income in the second quarter of 2023 was $74.9 million, or $0.35 per diluted
share, and adjusted attributable net income was $75.1 million, or $0.35 per diluted share. An approximately $25.1 million
gain was included in the second quarter 2023 attributable and adjusted attributable net income, representing the net
impact of foreign exchange losses and the deferred tax benefit resulting from currency devaluation, namely the Turkish
Lira. For the six months ended June 30, 2023 , attributable net income was $104.7 million, or $0.49 per diluted share,
and adjusted attributab le net income was $96.4 million, or $0.45 per diluted share. In the second quarter of 2023,
operating cash flow was $ 80.3 million, or $ 104.3 million before working capital adjustments, and free cash flow was
$22.4 million, or $ 46.3 million before working c apital adjustments. Free cash flow remains strongly weighted to the
second half of 2023, in line with previously stated guidance, and is expected to be relatively evenly split between the
third and fourth quarters.
▪ Continued delivery of peer -leading capit al returns : During the second quarter of 2023, the Board declared a
quarterly cash dividend of $0.07 per share and the Company repurchased a total of 2,678,822 of its outstanding
common shares at an average share price of $ 14.97 per share. Combined , the Company returned $54.5 million to
shareholders during the second quarter of 2023 including the $14.3 million in quarterly dividend payments and $ 40.1
million in share repurchases. The Company is on track to return a minimum of $102.6 million in capital returns in 2023,
or a 3.4% yield, which includes a total of 3,026,993 shares repurchased in the first half of 2023 for $45.3 million. On
June 16, 2023, the Company announced a new Normal Course Issuer Bid (“NCIB”) enabling SSR Mining to purchase
for cancellation up to 10,200,000 common shares of the Company representing approximately 5.0% of SSR Mining’s
total issued and outstanding common shares.
▪ Balance sheet continues to support growth initiatives: As of June 30, 2023, SSR Mining had a total cas h balance
of $412.8 million, reflecting the $120 million upfront cash payment as part of the previously announced Hod Maden
transaction and the aforementioned capital returns in the second quarter of 2023. SSR Mining’s strong balance sheet,
including non-GAAP net cash of $147.3 million and total available liquidity of $712.8 million, supports the Company’s
long-term capital commitments and the continuation of the Company’s dynamic shareholder returns strategy.
▪ Acquired an up to 40% ownership interest and o peratorship in the Hod Maden Gold -Copper project: In the
second quarter of 2023, the Company announced the acquisition of an up to 40% interest and immediate operational
control in the Hod Maden gold -copper development project (“Hod Maden”) in northeastern Türkiye from Lidya Mines.
Aggregate acquisition consideration totals $270 million, which included a $120 million upfront cash payment to acquire
a 10% interest in Hod Maden, followed by $150 million in earn-in structured milestone payments to acquire an additional
30% interest, payable between the start of construction and the first anniversary of commercial production. The
acquisition of Hod Maden adds one of the highest margin and lowest capital intensity development projects globally to
SSR Mining’s rob ust portfolio of high -return growth projects and leverages SSR Mining’s significant experience in
Türkiye.
SSR Mining Inc.
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▪ Çöpler sulfide plant continues to deliver solid performance; Çakmaktepe Extension on track for first production
in 2023: Gold production was 52,031 ounces in the second quarter of 2023 at cost of sales of $1,117 per ounce and
AISC of $1,384 per ounce. The sulfide plant delivered another strong quarter, with an average throughput rate of nearly
7,500 tonnes per day. Planned maintenance in the Çöpler s ulfide plant will be completed in the third quarter of 2023,
and no further planned maintenance is expected until 2024. The Çakmaktepe Extension project remains on track to
deliver first gold production in 2023, with initial waste stripping activity underway. In the second half of 2023, Çöpler’s
production profile is expected to be 50 to 55% weighted to the fourth quarter reflecting the maintenance shutdown in
the third quarter.
▪ Strong quarterly production at Marigold: Gold production was 60,443 ounces in the second quarter of 2023 at cost
of sales of $1,059 per ounce and AISC of $1,656 per ounce. The $ 64 million in sustaining capital spent year -to-date
was primarily allocated to the purchase of four new haul trucks that will be used to support waste stripping activities.
Marigold remains on track for its $81 million full-year sustaining capital guidance.
▪ Production improves at Seabee: Gold production was 16,428 ounces in the second quarter of 2023 at cost of sales
of $1,192 per ounce and AISC of $1,690 per ounce. Underground mining rates rebounded in the second quart er,
averaging more than 1,300 tonnes per day reflecting the ongoing success of continuous improvement initiatives at the
site. Processed grades improved in July, positioning Seabee for a stronger second half of 2023.
▪ Puna continues to deliver strong performance: Silver production was 2.3 million ounces in the second quarter of
2023 at cost of sales of $18.02 per ounce of silver and AISC of $17.41 per ounce of silver. Puna again delivered solid
process plant performance, with throughput averaging more than 4,600 tonnes per day during the second quarter.
▪ ESG and Sustainability Report: On April 14, 2023, the Company published its fifth annual ESG and Sustainability
Report. The report provided a comprehensive overview of how SSR Mining manages sustainability across its business,
detailed specific achievements from 2022 as well as outlined the commitments the Company made for 2023.
SSR Mining Inc.
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Financial and Operating Highlights
A summary of the Company’s consolidated financial and operating results for the three and six months ended June 30, 2023
and June 30, 2022 are presented below:
Three Months Ended Six Months Ended
(in thousands of US dollars, except per share data) June 30, June 30,
2023 2022 2023 2022
Financial Results
Revenue $ 301,026 $ 319,583 $ 615,640 $ 675,029
Cost of sales $ 170,640 $ 164,928 $ 369,937 $ 318,448
Operating income $ 52,929 $ 70,095 $ 89,914 $ 185,965
Net income $ 122,376 $ 67,519 $ 151,380 $ 143,625
Net income attributable to SSR Mining shareholders $ 74,866 $ 58,488 $ 104,679 $ 126,051
Basic net income per share attributable to SSR Mining shareholders $ 0.37 $ 0.28 $ 0.51 $ 0.59
Diluted net income per share attributable to SSR Mining shareholders $ 0.35 $ 0.27 $ 0.49 $ 0.57
Adjusted attributable net income (2) $ 75,103 $ 66,800 $ 96,376 $ 132,742
Adjusted basic attributable net income per share (2) $ 0.37 $ 0.31 $ 0.47 $ 0.62
Adjusted diluted attributable net income per share (2) $ 0.35 $ 0.30 $ 0.45 $ 0.60
Cash generated by operating activities before changes in working capital (2) $ 104,265 $ 105,602 $ 195,134 $ 236,369
Cash generated by operating activities $ 80,343 $ 32,838 $ 83,310 $ 95,025
Cash used in investing activities $ (179,860) $ (29,860) $ (231,741) $ (57,745)
Cash used in financing activities $ (72,945) $ (63,234) $ (111,134) $ (116,683)
Operating Results
Gold produced (oz) 128,902 135,500 251,723 292,510
Gold sold (oz) 124,916 146,329 251,027 303,508
Silver produced (‘000 oz) 2,269 1,967 4,284 3,270
Silver sold (‘000 oz) 1,857 1,771 4,238 3,532
Lead produced (‘000 lb) (3) 10,193 8,889 21,554 16,192
Lead sold (‘000 lb) (3) 9,805 8,874 23,175 19,087
Zinc produced (‘000 lb) (3) 1,748 1,507 4,227 3,350
Zinc sold (‘000 lb) (3) 1,033 1,367 4,720 4,495
Gold equivalent produced (oz) (3) 156,625 159,262 303,518 333,201
Gold equivalent sold (oz) (3) 147,705 167,201 302,262 346,893
Average realized gold price ($/oz sold) $ 1,963 $ 1,861 $ 1,932 $ 1,870
Average realized silver price ($/oz sold) $ 24.61 $ 19.64 $ 23.92 $ 21.75
Cost of sales per gold equivalent ounce sold (4) $ 1,155 $ 986 $ 1,224 $ 918
Cash cost per gold equivalent ounce sold (2, 4) $ 1,108 $ 933 $ 1,157 $ 851
AISC per gold equivalent ounce sold (2, 4) $ 1,633 $ 1,267 $ 1,663 $ 1,177
Financial Position June 30, 2023 December 31, 2022
Cash and cash equivalents $ 379,243 $ 655,453
Current assets $ 1,155,380 $ 1,376,435
Total assets $ 5,739,479 $ 5,254,657
Current liabilities $ 203,677 $ 279,252
Total liabilities $ 1,127,751 $ 1,128,458
Working capital (5) $ 951,703 $ 1,097,183
(2) The Company reports non-GAAP financial measures including adjusted attributable net income, adjusted attributable net income per share, cash generated by
operating activities before changes in working capital, cash costs and AISC per ounce sold to manage and evaluate its operating performance at its mines.
See “Non-GAAP Financial Measures” at the end of this press release for an explanation of these financial measures and a rec onciliation of these financial
measures to net income, cost of sales, and cash generated by operating activities, which are the most comparable GAAP financi al measures. Cost of sales
excludes depreciation, depletion, and amortization.
(3) Data for lead production and sales relate only to lead in lead concentrate. Data for zinc production and sales relate only to zinc in zinc concentrate.
(4) Gold equivalent ounces are calculated multiplying the silver ounces by the ratio of the silver price to the gold price, using the average London Bullion Market
Association (“LBMA”) prices for the period. The Company does not include by-products in the gold equivalent ounce calculations.
(5) Working capital is defined as current assets less current liabilities.
SSR Mining Inc.
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Çöpler, Türkiye
(amounts presented on 100% basis)
Three Months Ended Six Months Ended
June 30, June 30,
Operating Data 2023 2022 2023 2022
Gold produced (oz) 52,031 51,390 107,105 122,030
Gold sold (oz) 49,197 57,846 107,211 130,271
Ore mined (kt) 1,184 674 2,363 1,685
Waste removed (kt) 4,841 6,173 10,216 11,308
Total material mined (kt) 6,025 6,847 12,579 12,993
Strip ratio 4.1 9.2 4.3 6.7
Ore stacked (kt) 154 148 342 210
Gold grade stacked (g/t) 1.46 0.90 1.33 0.87
Ore milled (kt) 680 611 1,404 1,256
Gold mill feed grade (g/t) 2.34 2.55 2.40 2.95
Gold recovery (%) 89.1 87.2 88.4 87.1
Average realized gold price ($/oz sold) $ 1,979 $ 1,863 $ 1,934 $ 1,869
Cost of sales ($/oz gold sold) $ 1,117 $ 1,091 $ 1,209 $ 965
Cash costs ($/oz gold sold) (6) $ 1,107 $ 1,078 $ 1,196 $ 948
AISC ($/oz gold sold) (6) $ 1,384 $ 1,253 $ 1,404 $ 1,087
(6) The Company reports the non -GAAP financial measures of cash costs and AISC per ounce of gold sold to manage and evaluate operating performance at
Çöpler. See “Non-GAAP Financial Measures” for an explanation of these financial measures and a reconciliation to cost of sales, which are the comparable
GAAP financial measure. Cost of sales excludes depreciation, depletion, and amortization.
For the three months ended June 30, 2023 and 2022, Çöpler produced 52,031 and 51,390 ounces of gold, respectively.
For the six months ended June 30, 2023 and 2022, Çöpler produced 107,105 and 122,030 ounces of gold, respectively.
Gold sold was less than gold produced during the three months ended June 3 0, 2023 as a result of timing of sales due to
Turkish holiday closures during the last week of the quarter, which resulted in a buildup of finished goods inventory. Second
quarter 2023 cost of sales of $ 1,117 per ounce and AISC of $ 1,384 per ounce were in line with expectations resulting in
year-to-date cost of sales of $1,209 per ounce and AISC of $1,404 per ounce.
Planned maintenance in the Çöpler sulfide plant will be completed in the third quarter of 2023, and no further maintenance
is planned until 2024. The Çakmaktepe Extension project remains on track to achieve first production within 2023, with initial
waste stripping activities underway. Technical work for the Çöpler expansion project continues to advance, including updated
Mineral Reserves and Mineral Resources and an updated technical report. In the second half of 2023, Çöpler’s production
profile is expected to be 50 to 55% weighted to the fourth quarter reflecting the maintenance shutdown in the third quarter.
SSR Mining Inc.
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Marigold, USA
Three Months Ended Six Months Ended
June 30, June 30,
Operating Data 2023 2022 2023 2022
Gold produced (oz) 60,443 45,769 112,422 79,557
Gold sold (oz) 60,389 45,983 111,686 82,937
Ore mined (kt) 5,042 4,100 10,409 8,920
Waste removed (kt) 15,648 20,576 32,678 40,364
Total material mined (kt) 20,690 24,676 43,086 49,284
Strip ratio 3.1 5.0 3.1 4.5
Ore stacked (kt) 5,042 4,100 10,409 8,920
Gold grade stacked (g/t) 0.52 0.67 0.47 0.52
Average realized gold price ($/oz sold) $ 1,950 $ 1,857 $ 1,933 $ 1,860
Cost of sales costs ($/oz gold sold) $ 1,059 $ 1,097 $ 1,061 $ 1,075
Cash costs ($/oz gold sold) (7) $ 1,063 $ 1,099 $ 1,065 $ 1,076
AISC ($/oz gold sold) (7) $ 1,656 $ 1,458 $ 1,659 $ 1,505
(7) The Company reports the non -GAAP financial measures of cash costs and AISC per ounce of gold sold to manage and evaluate operating performance at
Marigold. See "Non-GAAP Financial Measures" for an explanation of these financial measures and a reconciliation to cost of sales, which are the comparable
GAAP financial measure. Cost of sales excludes depreciation, depletion, and amortization.
For the three months ended June 30, 2023 and 2022, Marigold produced 60,443 and 45,769 ounces of gold, respectively.
Higher production for the three months ended June 30, 2023, as compared to the prior year, is attributable to more tonnes
stacked and the timing of leach recoveries. For the six months ended June 30, 2023 and 2022, Marigold produced 112,422
and 79,557 ounces of gold, respectively. Second quarter 2023 cost of sales of $1,059 per ounce and AISC of $ 1,656 per
ounce were in line with expectations resulting in year -to-date cost of sales of $ 1,061 per ounce and AISC of $ 1,659 per
ounce.
With the mine stacking more typical ore in 2023, leach cycles have now returned to normal and no further delays to gold
recovery are expected going forward. The sustaining capital spent year -to-date was primarily allocated to the purchase of
four new haul trucks that will be used to support waste stripping activities. Marigold remains on track for its $81 million full-
year sustaining capital guidance.
SSR Mining Inc.
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Seabee, Canada
Three Months Ended Six Months Ended
June 30, June 30,
Operating Data 2023 2022 2023 2022
Gold produced (oz) 16,428 38,341 32,196 90,923
Gold sold (oz) 15,330 42,500 32,130 90,300
Ore mined (kt) 119 97 218 199
Ore milled (kt) 105 99 218 194
Gold mill feed grade (g/t) 5.25 12.06 4.91 14.85
Gold recovery (%) 96.9 98.0 96.5 98.4
Average realized gold price ($/oz sold) $ 1,960 $ 1,862 $ 1,931 $ 1,882
Cost of sales ($/oz gold sold) $ 1,192 $ 447 $ 1,293 $ 392
Cash costs ($/oz gold sold) (8) $ 1,192 $ 449 $ 1,294 $ 394
AISC ($/oz gold sold) (8) $ 1,690 $ 628 $ 1,960 $ 611
(8) The Company reports the non -GAAP financial measures of cash costs and AISC per ounce of gold sold to manage and evaluate operating performance at
Seabee. See "Non-GAAP Financial Measures" for an explanation of these financial measures and a reconciliation to cost of sales, which are the comparable
GAAP financial measure. Cost of sales excludes depreciation, depletion, and amortization.
For the three months ended June 30, 2023 and 2022, Seabee produced 16,428 and 38,341 ounces of gold, respectively.
Lower production for the three months ended June 30, 2023, as compared to the prior year, is attributable to lower grades
mined and processed as Seabee continued to rebound from unplanned maintenance downtime in the first quarter of 2023.
For the six months ended June 30, 2023 and 2022, Seabee produced 32,196 and 90,923 ounces of gold, respectively.
Second quarter 2023 cost of sales of $ 1,192 per ounce and AISC of $ 1,690 were above expectations reflecting the lower
production.
As guided, sustaining capital spend at Seabee was concentrated in the first half of the year as a result of the winter road
season. Processed grades improved in in July, positioning Seabee for a stronger second half of 2023.
SSR Mining Inc.
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Puna, Argentina
Three Months Ended Six Months Ended
June 30, June 30,
Operating Data 2023 2022 2023 2022
Silver produced ('000 oz) 2,269 1,967 4,284 3,270
Silver sold ('000 oz) 1,857 1,771 4,238 3,532
Lead produced ('000 lb) 10,193 8,889 21,554 16,192
Lead sold ('000 lb) 9,805 8,874 23,175 19,087
Zinc produced ('000 lb) 1,748 1,507 4,227 3,350
Zinc sold ('000 lb) 1,033 1,367 4,720 4,495
Gold equivalent sold ('000 oz) (9) 22,789 20,872 51,235 43,385
Ore mined (kt) 510 505 859 852
Waste removed (kt) 1,524 2,311 3,508 4,389
Total material mined (kt) 2,034 2,816 4,367 5,241
Strip ratio 3.0 4.6 4.1 5.2
Ore milled (kt) 419 419 834 792
Silver mill feed grade (g/t) 175.5 152.4 166.5 137.7
Lead mill feed grade (%) 1.18 1.01 1.25 1.02
Zinc mill feed grade (%) 0.36 0.33 0.40 0.37
Silver mill recovery (%) 96.1 95.6 96.0 95.4
Lead mill recovery (%) 93.4 92.9 93.9 92.3
Zinc mill recovery (%) 52.7 41.7 57.8 46.3
Average realized silver price ($/oz sold) $ 24.61 $ 19.64 $ 23.92 $ 21.75
Cost of sales ($/oz sold) $ 18.02 $ 18.29 $ 18.95 $ 19.31
Cash costs ($/oz silver sold) (10) $ 14.40 $ 13.54 $ 14.41 $ 13.30
AISC ($/oz silver sold) (10) $ 17.41 $ 15.23 $ 16.84 $ 14.95
(9) Gold equivalent ounces are calculated multiplying the silver ounces by the ratio of the silver price to the gold price, using the average LBMA prices for the
period. The Company does not include by-products in the gold equivalent ounce calculations.
(10) The Company reports the non-GAAP financial measures of cash costs and AISC per ounce of silver sold to manage and evaluate operating performance at
Puna. See "Non-GAAP Financial Measures" for an explanation of these financial measures and a reconciliation to cost of sales, which are the comparable
GAAP financial measure. Cost of sales excludes depreciation, depletion, and amortization
For the three months ended June 30, 2023 and 2022, Puna produced 2.3 million and 2.0 million ounces of silver, respectively
with the year-over-year increase primarily driven by higher mill feed grade. For the six months ended June 30, 2023 and
2022, Puna produced 4.3 million and 3.3 million ounces of silver, respectively. Second quarter 2023 cost of sales of $18.02
per ounce of silver sold and AISC of $17.41 per ounce of silver sold were in line with expectations.