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SSR Mining Reports First Quarter 2021 Results

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SSR Mining Reports First Quarter 2021 Results






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)


  • Robust quarterly operating performance across all four operations: Delivered first quarter production of 196,094 gold equivalent ounces at AISC of $1,004 per gold equivalent ounce, on track to meet full-year guidance ranges.
  • Strong financial performance: Generated cash flows from operating activities of $145.2 million and free cash flow of $76.6 million in the first quarter.(1) Reported first quarter attributable net income of $53.0 million, or $0.24 per share, and adjusted attributable net income of $102.4 million, or $0.47 per share.(1)
  • Maintained strong, peer-leading balance sheet: Cash and cash equivalents and consolidated cash balances remained strong at quarter end, increasing to $866.0 million and $901.6 million, following $49.1 million in dividend payments to equity shareholders and to Çöpler’s non-controlling interest, while also reducing debt balances $17.5 million during the quarter.
  • Capital allocation framework in place: The Board declared the first quarterly cash dividend of $0.05 per share on February 17, 2021. Subsequent to the quarter-end, the Company announced that it has received acceptance from the Toronto Stock Exchange, to initiate a Normal Course Issuer Bid permitting SSR Mining to purchase for cancellation up to 10,000,000 common shares of the Company, representing 4.5% of SSR Mining’s total issued and outstanding common shares.
  • Released year-end 2020 Mineral Reserves and Resources: Gold Mineral Reserves increased 5% to 8.0 million ounces (9.0 million gold-equivalent ounces), while gold Measured and Indicated Mineral Resources increased 14% to 15.0 million ounces (27.0 million gold-equivalent ounces).
  • Delivered integrated sustainability report: On March 30, 2021, the Company published its third annual ESG and Sustainability Report, and its first since the merger with Alacer. The ESG report included a commitment to net zero greenhouse emissions by 2050.
  • Çöpler delivered strong margins and progressed growth initiatives: Delivered gold production of 78,478 ounces in the first quarter. Reported AISC of $743 per ounce in the first quarter, generating robust margins.(1) Çöpler flotation plant commissioning and ramp-up remain on schedule for mid-year 2021.
  • Marigold had record material movement and the Mineral Resource grew: Delivered gold production of 67,936 ounces for the first quarter as the mine moved a record 23.8 million tonnes of material. The record movement was achieved despite a 35 day scheduled maintenance shutdown of the largest shovel. Indicated Mineral Resources increased by 9% for a total of 5.4 million ounces of gold compared to 4.9 million ounces at year-end 2019. Mineral Resources increased at Mackay, Red Dot, New Millennium, Crossfire and Valmy.
  • Seabee continues to deliver, Mineral Reserves were replaced and the land position more than doubled: Produced 23,735 ounces of gold in-line with the full-year mine plan. In the first quarter of 2021, Seabee exercised its option to acquire an additional 20% interest in the Fisher property, bringing its joint venture interest to 80%. Despite a limited exploration program due to COVID-19, Seabee largely replaced Mineral Reserves for the year.
  • Puna generated robust margins: Produced 1.8 million ounces of silver at cash costs of $9.41 per ounce in the first quarter and AISC of $13.98 per ounce. Puna revenue increased by 92% in the first quarter of 2021 compared to the first quarter of 2020, due to a 49% increase in the average realized silver price.(1)


(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,
2021 2020
Financial Results
Revenue $ 366,484 $ 164,463
Income from mine operations $ 147,820 $ 44,783
Gross margin (2) 40 % 27 %
Operating income $ 128,013 $ 34,766
Net income $ 59,762 $ 23,976
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)
Operating Results
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
Current assets $ 1,438,393 $ 1,424,522
Total assets $ 5,273,127 $ 5,244,986
Current liabilities $ 238,404 $ 248,933
Total liabilities $ 1,308,124 $ 1,305,083
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.



Dividend Declaration


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.


Posted May 6, 2021

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