Ssr Mining Reports Third Quarter 2018 Results
November 8, 2018
SSR MINING REPORTS THIRD QUARTER 2018 RESULTS
VANCOUVER, B.C. - SSR Mining Inc. (NASDAQ: SSRM) (TSX: SSRM) (“SSR Mining”) reports
consolidated financial results for the third quarter ended September 30, 2018 .
Paul Benson, President and CEO said, "Our improved financial performance during the quarter
marks another positive step forward in SSR Mining’s growth plan. We more than doubled operating
cash flow and increased attributable earnings compared to last quarter, having set new operating
records at Marigold and Seabee, and achieved key milestones at Chinchillas. This added
confidence in the business led to improved 2018 guidance, as we deliver another year of value
and growth for our shareholders.”
News Release 18-17
Third Quarter 2018 Highlights:
(All figures are in U.S. dollars unless otherwise noted). Cash costs per payable ounce of gold sold is a non-GAAP
financial measure. Please see "Cautionary Note Regarding Non-GAAP Measures".
▪ Increased cash flow and earnings: More than doubled cash generated from operating
activities from the prior quarter to $35.4 million and increased attributable net income to $0.05
per share.
▪ Increased production and lowered costs: Consolidated production increased to 94,808 gold
equivalent ounces while achieving lower cash costs of $682 per equivalent payable ounce of
gold sold.
▪ Enhanced scale at Marigold: Moved a record 21.3 million tonnes of material, a 33% quarterly
increase, benefiting from four additional haul trucks that entered service as scheduled.
▪ Production growth at Marigold: Produced 58,459 ounces of gold, an 18% quarterly increase,
at cash costs of $711 per payable ounce of gold sold.
▪ Record production and cash costs at the Seabee Gold Operation: Produced a record
27,831 ounces of gold at record low cash costs of $447 per payable ounce of gold sold.
▪ Chinchillas project remains on track: Achieved key milestones during the quarter, including
successful test processing of Chinchillas ore and production of saleable concentrates. The
project remains on budget and commercial production is expected by the end of the year.
▪ Maintained strong liquidity: Quarter-end cash balance of approximately $475 million and
total liquidity of approximately $550 million including our undrawn revolving credit facility.
Marigold mine, U.S.
Three months ended
Operating data September 30
2018
June 30
2018
March 31
2018
December 31
2017
September 30
2017
Total material mined (kt) 21,284 15,958 16,150 13,979 20,311
Waste removed (kt) 14,411 8,083 9,052 8,136 13,149
Total ore stacked (kt) 6,873 7,875 7,099 5,843 7,162
Strip ratio 2.1 1.0 1.3 1.4 1.8
Mining costs ($/t mined) 1.51 1.92 1.80 1.98 1.52
Gold stacked grade (g/t) 0.32 0.42 0.37 0.37 0.31
Processing costs ($/t processed) 1.12 0.86 0.93 1.08 0.89
Gold recovery (%) 72.3 74.4 73.6 74.0 72.0
General and admin costs ($/t
processed) 0.50 0.41 0.42 0.51 0.40
Gold produced (oz) 58,459 49,436 42,960 52,768 38,699
Gold sold (oz) 59,612 46,644 42,078 51,420 38,818
Realized gold price ($/oz) (1) 1,207 1,304 1,331 1,269 1,270
Cash costs ($/oz) (1) 711 700 720 699 684
AISC ($/oz) (1) 965 981 954 1,001 979
Financial data ($000s)
Revenue 71,848 60,752 55,880 65,217 49,395
Income from mine operations 13,254 14,670 12,312 12,777 11,189
Capital expenditures (2) 25,461 14,481 4,665 8,194 3,855
Capitalized stripping 2,529 850 2,902 5,712 6,056
Exploration expenditures (3) 2,956 3,243 1,914 1,208 1,130
(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. For a better
understanding and a reconciliation of these measures to cost of sales, as shown in our Consolidated Interim
Statements of Income, please refer to “Non-GAAP Financial Measures” in Section 9 of our Management's Discussion
and Analysis for the three and nine months ended September 30, 2018 (“MD&A”) .(2) Includes expansion capital expenditures of $16.1 million for the three months ended September 30, 2018 ($5.9 for
the three months ended June 30, 2018 and $nil for the previous three quarters).(3) Includes capitalized and expensed exploration expenditures.
Mine production
In the third quarter of 2018 , the Marigold mine produced 58,459 ounces of gold, an 18% quarterly
increase, benefiting from the record ore tonnes stacked in the second quarter.
During the quarter, a record 21.3 million tonnes of material were mined, a 33% increase compared
to the second quarter, due to four additional haul trucks that entered service during the quarter,
shorter haul distances and improved equipment availabilities.
Approximately 6.9 million tonnes of ore were delivered to the heap leach pads, at a gold grade of
0.32 g/t. This compares to 7.9 million tonnes of ore delivered to the heap leach pads at a gold
grade of 0.42 g/t in the second quarter of 2018 . The strip ratio was 2.1 :1 for the quarter.
SSR Mining Inc. PAGE 2
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 $711 per payable
ounce of gold sold in the third quarter of 2018 were in line with the previous quarter. Mining costs
of $1.51 per tonne in the third quarter of 2018 were 21% lower than in the previous quarter primarily
due to 33% more tonnes mined. Processing and general administrative unit costs were 30% and
22% higher, respectively, in the third quarter than in the second quarter due to lower ore tonnes
stacked.
AISC per payable ounce of gold sold decreased in the third quarter of 2018 to $965 from $981 in
the second quarter due to lower sustaining capital expenditures per payable ounce sold, which
more than offset higher cash costs and capitalized stripping per payable ounce sold for the quarter.
Mine sales
A total of 59,612 ounces of gold were sold at an average realized price of $1,207 per ounce during
the third quarter of 2018 , an increase of 28% from the 46,644 ounces of gold sold at an average
realized price of $1,304 per ounce during the second quarter of 2018 .
Exploration
The main focus of our 2018 exploration program has been to conduct infill drilling of the Red Dot
resource area and to explore higher grade structural zones within phases of the Mackay pit. During
the third quarter, we completed a total of 76 reverse circulation drillholes for 26,961 meters at Red
Dot and within the Mackay pit. Through the first nine months of 2018, we have completed 199
drillholes for 72,017 meters.
During the third quarter at Red Dot and Mackay, we received results from 44 holes that together
with earlier drilling, increases our confidence that a portion of the Red Dot Inferred Mineral
Resources will be upgraded at year-end 2018. If the current Inferred Mineral Resources upgrade
work is successful, the upgraded Mineral Resources will be subject to additional geotechnical
drilling and engineering during the first half of 2019, with the goal of declaring a Mineral Reserve
at Red Dot, and also an updated mine plan, by mid-year 2019.
During the fourth quarter of 2018, we will complete the Red Dot exploration and infill drilling program
and continue exploration drilling of the higher-grade structures in the Mackay Phase 5 area.
SSR Mining Inc. PAGE 3
Seabee Gold Operation, Canada
Three months ended
Operating data September 30
2018
June 30
2018
March 31
2018
December 31
2017
September 30
2017
Total ore milled (t) 88,273 84,010 93,269 89,237 84,315
Ore milled per day (t/day) 959 923 1,036 970 916
Gold mill feed grade (g/t) 9.52 7.95 8.95 8.89 7.03
Mining costs ($/t mined) 48 60 59 66 74
Processing costs ($/t processed) 26 27 21 24 22
Gold recovery (%) 97.1 97.3 97.4 97.4 97.2
General and admin costs ($/t
processed) 47 62 53 61 53
Gold produced (oz) 27,831 23,582 23,717 24,227 18,058
Gold sold (oz) (1) 29,175 20,512 20,012 23,969 21,798
Realized gold price ($/oz) (2) 1,210 1,306 1,340 1,276 1,269
Cash costs ($/oz) (2) 447 616 481 605 634
AISC ($/oz) (2) 596 854 896 776 775
Financial data ($000s)
Revenue 35,270 26,706 26,789 30,571 27,652
Income from mine operations 11,061 5,703 6,672 2,923 3,643
Capital expenditures 968 1,035 4,426 920 799
Capitalized development 1,812 2,069 2,283 2,301 1,314
Exploration expenditures (3) 2,860 2,745 2,032 1,187 1,253
(1) Beginning with the first quarter of 2018, the holder of the 3% net smelter returns 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. For a better understanding
and a reconciliation of these measures to cost of sales, as shown in our Consolidated Interim Statements of Income,
please refer to “Non-GAAP Financial Measures” in Section 9 of our MD&A.(3) Includes capitalized and expensed exploration expenditures.
Mine production
Seabee Gold Operation produced a record 27,831 ounces of gold in the third quarter , a quarterly
increase of 18%, driven by higher average mill feed grade and increased mill throughput.
The mill achieved an average throughput of 959 tonnes per day, a 4% quarterly increase reflecting
a higher mining rate at the Santoy mine. Gold recovery for the quarter remained consistent at
97.1 %.
SSR Mining Inc. PAGE 4
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 $447 in the third quarter of 2018 , 27% lower than the $616 recorded in the second quarter
of 2018 . Lower cash costs were primarily the result of higher tonnes milled at higher grades, while
we incurred total operating costs that were comparable to the prior quarter. Mining costs per tonne
mined were $48 in the third quarter of 2018 , lower than the previous quarter of $60 due to higher
tonnes of material mined. Processing costs per tonne remained comparable to the prior quarter,
while general and administrative unit costs decreased by 24% in the third quarter of 2018 compared
to the second quarter of 2018 , due to higher tonnes milled.
AISC per payable ounce of gold sold were $596 in the third quarter of 2018 , lower than the $854
in the second quarter of 2018 , primarily due to lower cash costs and lower underground capital
development and capital expenditures per payable ounce sold.
Mine sales
A total of 29,175 ounces of gold were sold at an average realized price of $1,210 per ounce during
the third quarter of 2018 , compared to 20,512 ounces of gold sold in the second quarter of 2018 ,
at an average realized price of $1,306 per ounce.
Exploration
For 2018, the Seabee Gold Operation has planned 45,000 meters of underground drilling and
20,000 meters of surface drilling with the objective to increase and convert Mineral Resources into
Mineral Reserves in the Santoy mine area. In the third quarter of 2018, in the Santoy mine area,
we completed 14,577 meters of underground drilling and 13,539 meters of surface drilling in 59
and 58 drillholes, respectively. Our surface and underground drill programs focused on three
targets for the third quarter, including Santoy Gap hanging wall ("HW"), the Santoy 8A area and
Santoy Gap. Results at Santoy Gap HW confirm a discovery close to existing infrastructure that
we expect to contribute new, additional Inferred Mineral Resources at year-end. Results have
been positive and increase our confidence that the majority of the Santoy 8A area will be upgraded
in classification, providing additional Mineral Reserves at year-end 2018.
Surface exploration drilling in the third quarter of 2018 focused on two areas including Santoy 8A
East, with 1,113 meters in two drillholes, and the Fisher project, with 1,866 meters completed in
four drillholes. Our activities in the quarter shifted from drilling to completing field-based programs
of mapping, continued overburden geochemical surveys of soils and tills, prospecting, and drill
testing of first pass targets on the extension of the Santoy shear zone identified along the length
of the Fisher project. Mapping and prospecting on Fisher has identified new gold bearing shear
zone quartz vein targets, and first pass drill results have been returned with anomalous gold values.
We continue to be encouraged by the potential of this early stage property.
Activities in the fourth quarter will focus on continuing the conversion drilling from underground on
the Santoy Gap and Santoy 8A targets, resource definition drilling on Santoy Gap HW, and
SSR Mining Inc. PAGE 5
advancing our surface exploration programs on Fisher. Surface drilling activity in the fourth quarter
will also take place at Santoy 8A East.
SSR Mining Inc. PAGE 6
Puna Operations, Argentina (75% interest)
(Amounts presented on 100% basis unless otherwise stated)
Three months ended
Operating data
September 30
2018
June 30
2018
March 31
2018
December 31
2017
September 30
2017
Ore milled (kt) 308 396 373 442 461
Silver mill feed grade (g/t) 96 110 115 125 153
Zinc mill feed grade (%) 1.25 0.71 — — —
Processing costs ($/t milled) 20.87 17.26 15.34 13.53 11.92
Silver recovery (%) 69.9 68.1 67.7 66.0 67.8
Zinc recovery (%) 38.1 31.5 — — —
General and admin costs ($/t milled) 7.98 7.07 6.33 5.74 4.81
Silver produced ('000 oz) 666 954 938 1,169 1,541
Silver produced (attributable) ('000 oz) (1) 500 716 704 877 1,156
Lead produced ('000 lb) (2) 372 — — — —
Lead produced (attributable) ('000 lb) (1,2) 279 — — — —
Zinc produced ('000 lb) (3) 3,241 1,521 — — —
Zinc produced (attributable) ('000 lb) (1,3) 2,431 1,141 — — —
Silver sold ('000 oz) 623 1,142 1,064 820 2,076
Silver sold (attributable) ('000 oz) (1) 467 857 798 615 1,557
Zinc sold ('000 lb) (3,5) 383 — — — —
Zinc sold (attributable) ('000 lb) (1,3) 287 — — — —
Realized silver price ($/oz) (4) 15.45 16.49 16.79 16.96 16.77
Cash costs ($/oz) (4,5,6) 17.41 14.73 17.07 16.36 12.76
AISC ($/oz) (4,6) 22.39 17.66 18.37 18.30 13.56
Financial Data ($000s)
Revenue 7,915 16,570 15,233 12,093 28,958
(Loss) income from mine operations (2,440 ) 830 (1,753 ) 5,490 7,690
Capital expenditures (7) 2,390 2,652 789 917 1,006
Exploration expenditures (7) 6 429 6 — —
(1) Figures are on a 75% attributable basis.(2) Data for lead production relates only to lead in lead-silver concentrate.(3) Data for zinc production and sales relate only to zinc in zinc concentrate. (4) We report the non-GAAP financial measures of realized silver price, cash costs, and AISC per payable ounce of
silver sold 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 Interim Statements of Income,
please refer to “Non-GAAP Financial Measures” in Section 9 of our MD&A.(5) Zinc revenue is treated as a by-product credit in cash costs and AISC. Refer to "Non-GAAP Financial Measures”
in Section 9 of our MD&A.(6) Cash costs and AISC per payable ounce of silver sold include stockpile inventory costs previously incurred of $nil
for the three months ended September 30, 2018 (June 30, 2018 - $nil, March 31, 2018 - $5.75, December 31, 2017
- $5.30, September 30, 2017 - $5.20). (7) Does not include exploration or development of the Chinchillas project.
SSR Mining Inc. PAGE 7
Mine production
During the third quarter of 2018 , Puna Operations produced 0.7 million ounces of silver and 3.2
million pounds of zinc, reflecting a shift to processing stockpiles with higher zinc content.
Ore was milled at an average rate of 3,348 tonnes per day in the third quarter, 23% below the
second quarter, due to planned major mill maintenance occurring in July and test processing of
Chinchillas ore. Ore milled in the third quarter contained an average silver grade of 96 g/t, 13%
lower than the 110 g/t average silver grade in the second quarter, consistent with processing of
increasingly lower grade stockpiles. The average silver recovery in the third quarter was 70%, a
3% improvement compared to the previous quarter.
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”.
Cash costs, which include costs of inventory, treatment and refining costs, provincial royalties,
export duties and by-product credits, were $17.41 per payable ounce of silver sold in the third
quarter of 2018 , an increase from $14.73 per payable ounce of silver sold in the second quarter
of 2018 . Such increase was primarily due to lower production resulting from lower silver grade of
the stockpiled ore processed. Zinc sales were significantly below production in the period and
generated minimal by-product credits.
AISC per payable ounce of silver sold in the third quarter of 2018 were $22.39 , 27% higher than
$17.66 in the second quarter of 2018 due to higher cash costs and sustaining capital expenditures
per payable ounce of silver sold compared to the second quarter.
During the third quarter, the Federal Government of Argentina instituted export duties on several
goods, including metal concentrate exports. Effective September 3, 2018, the export of silver, lead
and zinc concentrates were levied with an export duty of three Argentine Pesos per one U.S. dollar
of export value. Such export duty is mandated to cease at the end of 2020.
Mine sales
Silver sales were 0.6 million ounces for the quarter, marginally lower than production. We re-
commenced zinc concentrate sales during the third quarter, selling 0.4 million pounds of zinc with
a ramp-up of zinc sales anticipated through the fourth quarter.
Exploration
There were no exploration activities during the third quarter at Puna Operations as we focused on
commencing mining activities at Chinchillas. We continue to evaluate the results from the drill
program conducted in the first half of 2018 on the Potosi vein extension for its potential to enhance
our underground Mineral Resources.
Chinchillas project, Argentina
During the third quarter, pre-stripping activities at the Chinchillas project continued to advance,
with approximately 2.1 million tonnes of waste and 0.3 million tonnes of ore mined. Approximately
SSR Mining Inc. PAGE 8