SSR Mining Inc. (NASDAQ: SSRM) (TSX: SSRM) (ASX: SSR) reports consolidated financial results for first quarter ended March 31, 2021. In addition, the Board of Directors declared a quarterly cash dividend of US$0.05 per common share, payable on June 14, 2021 to holders of record at the close of business on May 17, 2021. This dividend qualifies as an ‘eligible dividend’ for Canadian tax purposes.
Rod Antal, President and CEO said, “The first quarter of 2021 represented another strong operational and financial quarter for SSR Mining as we delivered production of 196,094 gold equivalent ounces at an AISC of $1,004 per ounce and generated $77 million of free cash flow.
The operational consistency of our four operating sites combined with our peer leading free cash flow generation has allowed us to come full circle with our 2021 capital allocation program and supplement our existing $44 million per year base dividend with a sizeable share buyback program of up to $150 million. The combination of the base dividend and our share buyback program will align our peer leading free cash flow yield with our capital returns yield.
From a growth perspective, we continue to invest in and advance our large brownfield organic portfolio across Turkey, the US and Canada. At Çöpler, the flotation plant construction is on-track for commissioning mid-year and will drive stronger operational performance in the 2nd half of the year. In addition, step-out and infill drilling at Ardich continues to support resource expansion and conversion as we continue to progress this sizeable, low capital intensity asset into production by 2023. Exploration updates detailing the positive progress across targets at Marigold, Çöpler, and Seabee are expected over the course of the year.”
First Quarter 2021 Highlights:
(All figures are in U.S. dollars unless otherwise noted)
|(1)||SSR Mining reports the non-GAAP financial measures of all-in sustaining costs (“AISC”) per ounce of gold, silver and gold equivalent sold, adjusted attributable net income, adjusted attributable net income per share, free cash flow and consolidated cash to manage and evaluate the Company’s operating performance. See “Non-GAAP Financial Measures” in Section 13 of the MD&A.|
Financial and Operating Highlights
A summary of the Company’s consolidated financial and operating results for the three months ended March 31, 2021 and 2020 are presented below:
|(in thousands of US dollars, except per share data)||Three months ended March 31,|
|Income from mine operations||$||147,820||$||44,783|
|Gross margin (2)||40 %||27 %|
|Net income attributable to equity holders of SSR Mining||$||52,980||$||23,976|
|Basic attributable net income per share||$||0.24||$||0.19|
|Adjusted attributable net income (1)||$||102,378||$||24,026|
|Adjusted basic attributable net income per share (1)||$||0.47||$||0.19|
|Cash generated by operating activities||$||145,221||$||64,136|
|Cash used in investing activities||$||(68,053)||$||(49,361)|
|Cash used in financing activities||$||(71,788)||$||(119,447)|
|Gold produced (oz)||170,149||87,968|
|Gold sold (oz)||173,370||85,742|
|Silver produced (‘000 oz)||1,792||1,770|
|Silver sold (‘000 oz)||2,038||1,834|
|Lead produced (‘000 lb) (4)||6,164||5,536|
|Lead sold (‘000 lb) (4)||6,432||6,407|
|Zinc produced (‘000 lb) (4)||3,079||1,821|
|Zinc sold (‘000 lb) (4)||956||2,166|
|Gold equivalent produced (oz) (5)||196,094||107,331|
|Gold equivalent sold (oz) (5)||201,494||104,715|
|Average realized gold price ($/oz sold)||$||1,798||$||1,597|
|Average realized silver price ($/oz sold)||$||26.02||$||17.47|
|Cash cost per gold equivalent ounce sold (1, 5)||$||665||$||824|
|AISC per gold equivalent ounce sold (1, 5)||$||1,004||$||1,261|
|Financial Position||March 31, 2021||December 31, 2020|
|Cash and cash equivalents||$||866,029||$||860,637|
|Working capital (3)||$||1,199,989||$||1,175,589|
|(1)||The Company reports non-GAAP financial measures including adjusted attributable net income, adjusted basic attributable net income per share, cash costs and AISC per ounce sold to manage and evaluate its operating performance at its mines. See “Non-GAAP Financial Measures” in Section 13.|
|(2)||Gross margin is defined as income from mine operations divided by revenue.|
|(3)||Working capital is defined as current assets less current liabilities.|
|(4)||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.|
|(5)||Gold equivalent ounces have been established using the average realized metal prices per ounce of precious metals sold in the period and applied to the recovered silver metal content produced by the mines. Zinc and lead production are not included in gold equivalent ounces produced.|
The Board of Directors declared a quarterly cash dividend of US$0.05 per common share, payable on June 14, 2021 to holders of record at the close of business on May 17, 2021. This dividend qualifies as an ‘eligible dividend’ for Canadian income tax purposes.
The dividend payment applies to holders of SSR Mining’s common shares, which trade on the Toronto Stock Exchange and the Nasdaq under the symbol SSRM, and to holders of its CHESS Depositary Interests (“CDIs”), which trade on the Australian Securities Exchange under the symbol SSR. Each CDI confers a beneficial interest in one common share. Therefore, CDI holders are entitled to a dividend calculated on the same basis as the holders of SSR Mining’s common shares.
SSR Mining has sought and been granted a temporary waiver of certain of the ASX Settlement Operating Rules. Under the authority of the waiver, the processing of conversions of common shares to CDIs, or CDIs to common shares, lodged on or after May 14, 2021, will be deferred until after the record date of May 17, 2021.
The key dates with respect to the dividend are as follows:
|Last date for processing requests to convert CDIs into common shares and to convert
common shares into CDIs before the record date for the dividend
|May 13, 2021|
|CDIs trade on the ASX on an ex–dividend basis||May 14, 2021|
|Common shares trade on the TSX and Nasdaq on an ex–dividend basis||May 14, 2021|
|Record date for the dividend||May 17, 2021|
|Processing recommences for requests to convert CDIs into common shares and to convert
common shares into CDIs
|May 18, 2021|
|Common share dividend payment date||June 14, 2021
(in Canada and
the United States)
|Payment of dividend to CDI holders||June 15, 2021 (in Australia)|
Payments to Canadian shareholders will be made in Canadian dollars based on the exchange rate on the record date as reported by the Bank of Canada. Payments to other shareholders will be made in U.S. dollars. For CDI holders, payments will be made in Australian dollars, and it is expected to be based on the prevailing exchange rate sourced from the wholesale foreign exchange market on or around 5 business days after the record date.
About SSR Mining
SSR Mining Inc. is a leading, free cash flow focused gold company with four producing assets located in the USA, Turkey, Canada, and Argentina, combined with a global pipeline of high-quality development and exploration assets in the USA, Turkey, Mexico, Peru, and Canada. In 2020, the four operating assets produced approximately 711,000 gold-equivalent ounces.
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