Ssr Mining Reports Third Quarter 2017 Results
News Release 17-30
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
November 7, 2017
SSR MINING REPORTS THIRD QUARTER 2017 RESULTS
VANCOUVER, B.C. - SSR Mining Inc. (NASDAQ: SSRM) (TSX: SSRM) (“SSR Mining”) reports
consolidated financial results for the third quarter ended September 30, 2017.
Paul Benson, President and CEO said, "Operationally this was a solid quarter as our portfolio
generated cash from operations of over $30 million which, combined with the proceeds of a partial
sale of our interest in Pretium, lifted our cash balance to $424 million. With strong perfo rmance
through the first nine months, we remain on track to meet our corporate -level annual guidance.
Through the quarter we hit milestones important for future growth with the release of the Seabee
PEA, the commencement of the Marigold equipment replaceme nt study and ongoing positive
exploration results, all of which were highlighted at our inaugural investor day."
Third Quarter 2017 Highlights
(All figures are in U.S. dollars unless otherwise noted)
▪ Increased cash position: Quarter-end cash increased to $424.0 million, up $70.5 million over
the previous quarter, marking this as the eighth consecutive quarter of increased cash.
▪ Solid operating cash flow: Cash generated by operating activities totaled $30.3 million for the
quarter and $99.6 million year-to-date.
▪ Net Income: Attributable net income for the quarter was $1.1 million, or $0.01 per share, with
adjusted net income totaling $4.4 million, or $0.04 per share.
▪ Delivered Seabee mine expansion plan: Seabee PEA evaluates sustained milling rate of
1,050 tonnes per day for a seven-year mine life with average 100,000 ounces of gold per year,
a 29% increase from 2016 production, at lower cash costs over the period from 2018 to 2023.
▪ Strong operating performance at Seabee: Sustained daily throughput and recovery rates
generated solid gold production, positioning Seabee to achieve previously improved annual
production and cash costs guidance.
▪ Record quarterly material moved at Marigold: Mined over 20 million tonnes of material at
$1.52 per tonne during the quarter with ore stacked increasing to over 7 million tonnes.
▪ Puna Operations exceeds expectations: The Pirquitas mill operated at a rate of
approximately 5,000 tonnes per day, with higher than expected grades resulting in production of
1.5 million ounces of silver during the quarter and 5.0 million ounces year-to-date, surpassing
the lower end of annual production guidance. The operation is on track to achieve annual cash
costs guidance.
SSR Mining Inc. PAGE 2
Marigold mine, U.S.
Three months ended
Operating data
September 30
2017
June 30
2017
March 31
2017
December 31
2016
September 30
2016
Total material mined (kt) 20,311 17,985 16,736 19,559 19,558
Waste removed (kt) 13,149 11,075 11,062 13,123 14,741
Total ore stacked (kt) 7,162 6,910 5,674 6,436 4,817
Strip ratio 1.8 1.6 1.9 2.0 3.1
Mining costs ($/t mined) 1.52 1.67 1.65 1.52 1.48
Gold stacked grade (g/t) 0.31 0.31 0.42 0.48 0.42
Processing costs ($/t processed) 0.89 0.82 0.89 0.80 0.95
Gold recovery (%) 72.0 73.0 74.0 75.0 71.0
General and admin costs ($/t processed) 0.40 0.42 0.52 0.46 0.56
Gold produced (oz) 38,699 55,558 55,215 59,945 47,456
Gold sold (oz) 38,818 57,426 52,528 61,308 47,278
Realized gold price ($/oz) (1) 1,270 1,265 1,214 1,247 1,330
Cash costs ($/oz) (1) 684 632 585 585 636
AISC ($/oz) (1) 979 833 799 835 1,139
Financial data ($000s)
Revenue 49,395 72,451 63,762 77,047 62,831
Income from mine operations 11,189 21,373 21,327 28,648 23,156
Capital expenditures 3,855 5,272 3,043 3,271 8,310
Capitalized stripping 6,056 4,350 6,745 10,171 13,787
Exploration expenditures (2) 1,130 1,538 1,024 1,276 1,145
(1) We report the non-GAAP financial measures of realized gold prices, cash costs and all-in sustaining costs ("AISC") per payable
ounce of gold sold to manage and evaluate operating performance at the Marigold mine. For a better understanding and a
reconciliation of these measures to cost of sales, as shown in our consolidated statements of comprehensive income (loss), please
refer to “Non-GAAP and Additional GAAP Financial Measures” in section 12 of our management's discussion and analysis of the
financial position and results of operation for the three and nine months ended September 30, 2017 ("MD&A").
(2) Includes capitalized and expensed exploration expenses.
Mine production
In the third quarter of 2017, the Marigold mine produced 38,699 ounces of gold, 30.3% less than the
previous quarter due to lower grades of ore stacked as we began mining the upper benches of the
current phase of the Mackay pit. Additionally, within these upper benches more clay ore was
encountered than anticipated which negatively impacted the leaching cycle as the solution pumping
rate was decreased to eliminate ponding in certain low permeability areas on the pads.
A quarterly record of 20.3 million tonnes of material was mined in the third quarter of 2017, 13%
more than the second quarter of 2017, primarily due to planned s horter hauls for waste.
Approximately 7.2 million tonnes of ore were delivered to the heap leach pads at an average gold
grade of 0.31 g/t. This compares to 6.9 million tonnes of ore delivered to the heap leach pads at a
gold grade of 0.31 g/t in the second quarter of 2017. The strip ratio was 1.8:1 for the quarter, a 13%
increase compared to the previous quarter.
SSR Mining Inc. PAGE 3
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 $684 per payable
ounce of gold sold in the third quarter of 2017 was 8% higher than the previous quarter due to the
higher cost per ounce placed on the leach pads as a result of continued lower grades mined. Total
mining costs of $1.52 per tonne were 9% lower in the third quarter versus the second quarter due to
more material mined as a result of shorter planned waste hauls and higher availability of loading
equipment. Processing unit costs were 9% higher in the third quarter of 2017 than in the second
quarter of 2017 due to increased reagent consumption as a result of increased barren solution flow
and higher tonnes stacked. General and administrative unit costs were 5% lower in the third quarter
of 2017 than in the second quarter due to the increase in tonnes stacked but were comparable on
an absolute basis.
AISC of $979 per payable ounce of gold sold in the third quarter of 2017 increased from $833 in the
second quarter of 2017 predominantly due to higher cash costs and higher capital expenditures,
partially offset by lower exploration expenditures, over fewer ounces sold.
Mine sales
A total of 38,818 ounces of gold were sold at an average price of $1,270 per ounce during the third
quarter of 2017, compared to 57,426 ounces of gold sold at comparable average price of $1,265
per ounce during the second quarter of 2017.
Exploration
Exploration activities continued with the objective of Mineral Reserve growth in proximity to, and
within, existing open pits. During the third quarter of 2017, we completed 13,167 meters of drilling in
39 reverse circulation ("RC") holes at the Mackay Pit, East Basalt, Valmy, Red Dot and North Red
Dot targets. Total RC drilling to the end of the third quarter amounts to 38,752 meters in 138 RC
holes.
On September 5, 2017, we published exploration drill results for the period from April 1, 2017 to July
31, 2017. Since that period we have received further positive assay results that should contribute to
Mineral Resource addition at Red Dot, including drillhole MRA6517, which intersected 47.2 meters
at a grade of 0.79 g/t gold.
In the third quarter of 2017, we also received results that indicate a higher grade zone exists 200
meters west of our current Mineral Resource pit at Red Dot. At our North Red Dot target, drillhole
MRA6512 intersected 50.3 meters at a grade of 0.95 g/t gold within an area currently modeled as
narrow lower grade mineralization.
See in this news release Table 1 for selected exploration results, Table 3 for drill results and Table 4
for a list of all drillholes completed for the relevant period.
SSR Mining Inc. PAGE 4
Seabee Gold Operation, Canada
Three months ended
Operating data
September 30
2017
June 30
2017
March 31
2017
December 31
2016
September 30
2016
Total ore milled (t) 84,315 84,469 72,394 84,526 82,756
Ore milled per day (t/day) 916 928 804 919 900
Gold mill feed grade (g/t) 7.03 7.97 9.22 7.40 7.40
Mining costs ($/t mined) 74 60 68 62 58
Processing costs ($/t processed) 22 20 23 19 19
Gold recovery (%) 97.2 97.3 97.7 97.0 96.5
General and admin costs ($/t
processed) 53
50
59
44
37
Gold produced (oz) 18,058 20,690 21,023 19,711 20,142
Gold sold (oz) 21,798 17,909 22,411 17,229 21,911
Realized gold price ($/oz) (1) 1,269 1,257 1,233 1,230 1,334
Cash costs ($/oz) (1, 3) 634 592 574 595 661
AISC ($/oz) (1, 3) 775 831 990 833 841
Financial data ($000s)
Revenue 27,652 22,502 27,609 21,175 29,214
Income from mine operations 3,643 4,083 4,995 2,864 4,126
Capital expenditures 799 711 4,760 1,010 579
Capitalized development 1,314 2,165 2,514 2,432 2,141
Exploration expenditures (2) 1,253 1,566 1,953 829 1,206
(1) We report the non-GAAP financial measures of realized gold prices, cash costs and AISC per payable ounce of gold sold to manage
and evaluate operating performance at the Seabee Gold Operation. For a better understanding and a r econciliation of these
measures to cost of sales, as shown in our consolidated statements of comprehensive income (loss), please refer to “Non-GAAP
and Additional GAAP Financial Measures” in section 12 of our MD&A.
(2) Includes capitalized and expensed exploration expenses.
(3) The non-GAAP financial measures of cash costs per payable ounce of gold sold and AISC per payable ounce of gold sold from the
Seabee Gold Operation were adjusted to eliminate the adjustment of inventory to fair value as at the date of our acquisition of the
Seabee Gold Operation.
Mine production
In the third quarter of 2017, the Seabee Gold Operation produced 18,058 ounces of gold, a strong
result considering several operating interruptions.
During the third quarter, 84,315 tonnes of ore were milled at an average gold grade of 7.03 g/t. This
compares to a total of 84,469 tonnes of ore at an average grade of 7.97 g/t in the second quarter.
The Santoy mine supplied 85% of ore milled, predominantly from long hole stopes. Underground
mining activities at Santoy experienced operating interruptions during the third quarter as a result of
forest-fire-related power outages and smoke ingress.
SSR Mining Inc. PAGE 5
The mill achieved an average throughput of 916 tonnes per day during the quarter, 1.3% lower than
the previous quarter due to a combination of scheduled crusher maintenance activities and forest-
fire-related power outages.
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, refining costs and
royalties, were $634 in the third quarter of 2017, higher than the $592 in the second quarter of
2017. Costs per tonne mined were $74 in the third quarter of 2017, 23% higher than in the previous
quarter due to the stronger Canadian dollar and less operating costs capitalized to underground
development. Processing and general and administration unit costs were higher by 10% and 6%,
respectively, in the third quarter of 2017 compared to the second quarter of 2017, mainly due to the
stronger Canadian dollar. The mill feed grade was 12% lower in the current quarter than in the
preceding period with lower production resulting in higher cash costs in the period.
AISC per payable ounce of gold sold were $775 in the third quarter of 2017, lower than the $831 in
the second quarter of 2017, primarily due to a higher volume of ounces sold in the third quarter of
2017, but also due to lower underground capital development. Exploration spending in the period
decreased due to lower planned drilling through the warmer months of the year.
Mine sales
A total of 21,798 ounces of gold were sold at an average price of $1,269 per ounce during the third
quarter of 2017, higher than gold production as bullion inventory accumulated in the previous
quarter was sold in the third quarter. Gold sales were 22% higher than the 17,909 ounces of gold
sold at an average price of $1,257 per ounce in the second quarter of 2017.
Exploration
Mineral Resource conversion remained the main exploration objective in the third quarter of 2017.
During the period, we completed 13,218 meters of underground drilling and 2,592 meters of surface
drilling. Underground drilling was active at the Santoy and Seabee mines with the majority of
expenditures at Santoy.
Drilling at Santoy Gap in the third quarter has yielded several intercepts that extend the limits of the
Mineral Resources, including 2.4 meters at a grade of 14.77 g/t gold in drillhole SUG-17-050 and
1.3 meters at a grade of 14.39 g/t gold in drillhole SUG -17-047 within the Santoy Gap 9B vein.
Similarly, step out drilling on the Santoy 8A vein returned 2.1 meters at a grade of 24.00 g/t gold in
drillhole SUG-17-923. Drilling at the 8A target transects the Santoy 8A Footwall structural horizon
and an intercept outside the Mineral Resource returned 2.5 meters at a grade of 17.31 g/t gold in
drillhole JOY-17-770. One notable intercept was returned from the Gap Hanging Wall tar get
including 2.2 meters at a grade of 9.91 g/t gold in the eastern sector, as reported in our news
release dated September 5, 2017. Highlights of infill drilling are reported in Table 2 of this news
release and drillhole collars are reported in Table 5 of this news release for the relevant period.
Greenfields exploration at the Seabee Gold Operation included the completion of a soils grid in the
area of the Santoy mine. The results show the down -ice dispersion of anomalous gold values
SSR Mining Inc. PAGE 6
associated with the Santoy shear zone. We have identified two additional anomalous areas for
follow up.
At the Fisher property, where we have an option agreement with Eagle Plains Resources Ltd. to
acquire up to an 80% interest on the adjacent 34,000 hectares south of the Sa ntoy mine, we
completed our field program of prospecting, mapping, a drone magnetic survey and geochemical
surveying of soil and till. Prospecting results confirm two new gold showings 1.5 kilometers and 8.0
kilometers south of the Santoy mine. As previous ly reported, due to wildfire conditions in and
around the Fisher project area, exploration activities were suspended in August 2017. Our first drill
campaign is planned for the first quarter of 2018.
SSR Mining Inc. PAGE 7
Puna Operations, Argentina (75% interest)
(Amounts presented on a 100% basis unless otherwise stated)
Three months ended
Operating data
September 30
2017
June 30
2017
March 31
2017
December 31
2016
September 30
2016
Ore milled (kt) 461 446 449 476 455
Silver mill feed grade (g/t) 153 185 145 194 264
Processing costs ($/t milled) 11.92 12.94 13.66 14.17 14.78
Silver recovery (%) 67.8 73.5 72.6 74.5 79.0
General and admin costs ($/t milled) 4.81 5.00 5.22 6.19 5.84
Silver produced ('000 oz) 1,541 1,947 1,520 2,210 3,047
Silver produced (attributable) ('000 oz) (1) 1,156 1,777 1,520 2,210 3,047
Silver sold ('000 oz) 2,076 1,655 1,443 2,633 2,947
Silver sold (attributable) ('000 oz) (1) 1,557 1,473 1,443 2,633 2,947
Realized silver price ($/oz) (2) 16.77 17.31 17.35 17.14 19.64
Cash costs ($/oz) (2) 12.76 12.15 12.68 9.80 8.48
AISC ($/oz) (2) 13.56 12.78 14.82 11.47 9.87
Financial Data ($000s)
Revenue 28,958 22,029 26,534 29,095 51,336
Income (loss) from mine operations 7,690 4,006 13,767 (4,056 ) 31,908
Capital expenditures 1,006 420 2,261 3,467 3,158
Exploration expenditures (3) — — — 11 7
(1) Attributable production and sales figures for the third quarter of 2017 are on 75% attributable basis. Attributable production and
sales figures for the second quarter of 2017 represent 100% for April and May 2017 and 75% for June 2017.
(2) We report the non-GAAP financial measures of cash costs per payable ounce of silver sold, realized silver price s and AISC to
manage and evaluate operating performance at Puna Operations. For a better understanding and a reconciliation of these
measures to cost of sales, as shown in our consolidated statements of comprehensive income (loss), please refer to “Non-GAAP
and Additional GAAP Financial Measures” in section 12 of our MD&A.
(3) Does not include exploration or development of the Chinchillas project.
Mine production
During the first nine months of 2017, the operation produced a total of 5.0 million ounces of silver,
surpassing the lower end of our 2017 production guidance as stockpile grades and metallurgical
performance continued to exceed plan. In the third quarter of 2017, silver production from stockpiles
totaled 1.5 million ounces. Attributable share of silver production in the third quarter was 1.2 million
ounces.
Ore was milled at an average rate of 5,012 tonnes per day in the third quarter, similar to the
previous quarter. Ore milled in the third quarter of 2017 contained an average silver grade of 153
g/t, 17% lower than the 185 g/t reported in the second quarter of 2017 as we continue to process
lower grade stockpiles. The average silver recovery in the third quarter was 67.8%, lower than the
previous quarter as expected due to planned lower silver mill feed grade.
Mine operating costs
Cash costs and AISC per payable ounce of silver sold are non-GAAP financial measures. Please
see “Cautionary Note Regarding Non-GAAP Measures”.
SSR Mining Inc. PAGE 8
Cash costs, which include cost of inventory, treatment and refining costs an d, if applicable, by -
product credits, increased by 5% to $12.76 per payable ounce of silver sold in the third quarter of
2017 from $12.15 per payable ounce of silver sold in the second quarter of 2017, principally due to
lower production resulting from low er silver grades of the stockpiled ore processed. In the third
quarter of 2017, the stockpile inventory costs include approximately $5.20 per payable ounce of
inventory costs that were previously incurred.
AISC of $13.56 per payable ounce of silver sold were 6% higher in the third quarter of 2017 than
the $12.78 per payable ounce of silver sold in the second quarter of 2017 due to higher cash costs
and higher sustaining capital expenditure per payable ounce of silver sold resulting from timing of
maintenance activities.
Mine sales
We recognized sales of 2.1 million ounces of silver at an average price of $16.77 per ounce in the
third quarter of 2017, higher than the 1.7 million ounces at an average price of $17.31 per ounce in
the second quarter of 2017, as a result of sales of current period production and selling down
inventory that accumulated during the previous quarter. Attributable sales were 1.6 million ounces of
silver in the third quarter of 2017, marginally higher than the 1.5 million ounces in t he previous
quarter.
Chinchillas project, Argentina
Since the initiation of development activities in June 2017, project execution is well under way with
purchase commitments made on critical long lead equipment including a geodesic stockpile cover,
tailings and reclaim water pumps, piping, pre -fabricated electrical rooms and all mining and
supporting mobile equipment.
Construction contracts have been issued for tender and, conditional upon receipts of permits, will be
awarded in the fourth quarter of 2 017. These contracts include concrete and earthworks and
general electromechanical installation at Pirquitas, and infrastructure buildings at Chinchillas,
including administration buildings, truck shop, diesel and explosives storage and distribution
systems. The pre -stripping operations plan has been completed with detailed mine planning
ongoing by the Puna Operations technical services team.
The project is awaiting environmental, operating and construction permit approvals, which are
expected in the fourth quarter. Project planning and execution, based on such permit expectations,
supports first ore feed to the Pirquitas mill in the second half of 2018.