The Prospector News

SSR Mining Reports Fourth Quarter and Full Year 2022 Results

You have opened a direct link to the current edition PDF

Open PDF Close
Uncategorized

Share this news article

SSR Mining Reports Fourth Quarter and Full Year 2022 Results

 

 

 

 

 

Full Year 2022 Highlights (1)

 

  • Attributable & Adjusted Attributable Diluted EPS of $0.89 and $0.67 Per Share, Respectively
  • Production of 623,819 Gold Equivalent Ounces at Cost of Sales(2) of $985 Per Ounce and All-in Sustaining Costs of $1,339 Per Ounce
  • Full-Year 2022 Capital Returns of $158.8 Million, an Approximately 5.0% Yield

 

Fourth Quarter 2022 Highlights

 

  • Attributable & Adjusted Attributable Diluted EPS of $0.43 and $0.12 Per Share, Respectively
  • Production of 182,655 Gold Equivalent Ounces at Cost of Sales of $1,064 Per Ounce and AISC of $1,358 Per Ounce
  • Strong Fourth Quarter Operating Cash Flow of $118 Million, Free Cash Flow of $97 Million
  • Closed the Acquisition of an Additional 30% Interest in Kartaltepe Joint Venture, Expanding Ownership of the Çӧpler District
  • Subsequent to Year-End, Released 2023 Guidance and Rolling Three-Year Outlook Confirming 700,000 Gold Equivalent Ounce Platform

 

SSR Mining Inc. (TSX: SSRM)  (NASDAQ:SSRM) (ASX: SSR) reports consolidated financial results for the fourth quarter and full year ended December 31, 2022. In addition, the Board of Directors declared a quarterly cash dividend of $0.07 per common share payable on March 30, 2023 to holders of record at the close of business on March 3, 2023. This dividend qualifies as an ‘eligible dividend’ for Canadian tax purposes.

 

Rod Antal, President and CEO of SSR Mining, said, “We closed 2022 with a strong balance sheet and met our revised guidance targets. We are now focused on delivering strong production and free cash flow in 2023. With the release of our 2023 and three-year guidance earlier this month, we presented our expectations for a significant year-over-year production improvement and a three-year production profile targeting 700,000 gold equivalent ounces.

 

Our 2023 cost guidance incorporates two significant growth initiatives for the business, the ramp-up at Çöpler’s Çakmaktepe Extension where first production is expected within the year, and waste stripping activities at Marigold’s Red Dot as we aim to optimize Marigold’s longer-term production profile. These initiatives, along with our continued advancement of the C2 expansion project at Çöpler and exploration and resource development activities across the portfolio, are key elements of our plan to sustain a longer-term production platform at or above 700,000 gold equivalent ounces annually.

 

Despite our continued and significant reinvestment in the business, we expect to deliver another strong year of free cash flow and capital returns to shareholders. The Company has a number of potential key catalysts targeted for 2023, including continued work on updated mine plans at Çöpler incorporating the C2 expansion project, and at Marigold highlighting the initial contribution of the New Millennium target. All considered, we see a strong and exciting year ahead for the business.”

 

___________________________
(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, 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.
(2) During the fourth quarter of 2022, the Company has revised the “Production costs” caption to “Cost of sales” within its Consolidated Statements of Operations to provide a more accurate description of the costs and align with commonly used terminology by industry participants. No changes were made to the previously reported amounts or the applicable accounting policies. Cost of sales excludes depreciation, depletion, and amortization.

 

Fourth Quarter and Full Year 2022 Highlights:
(All figures are in U.S. dollars unless otherwise noted)

  • Solid fourth quarter operating performance: Delivered fourth quarter production of 182,655 gold equivalent ounces at cost of sales of $1,064 per gold equivalent ounce and AISC of $1,358 per gold equivalent ounce. For the full year 2022, SSR Mining reported production of 623,819 gold equivalent ounces at cost of sales of $985 per gold equivalent ounce and AISC of $1,339 per gold equivalent ounce. Production and costs were previously reported in early February 2023 and were in line with revised 2022 guidance.
  • Announced 2023 guidance and three-year operating outlook: Previously announced 2023 production guidance of 700,000 to 780,000 gold equivalent ounces at consolidated 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. SSR Mining’s three-year outlook highlights a strong and stable production base of approximately 700,000 gold equivalent ounces through 2025 without requiring significant capital investment. The Company believes these production levels are sustainable through the end of the decade.
  • Strong quarterly free cash flow:Attributable net income in the fourth quarter was $93.9 million, or $0.43 per diluted share, and adjusted attributable net income was $25.6 million, or $0.12 per diluted share. Fourth quarter operating cash flow was $118.1 million with free cash flow of $96.7 million and free cash flow before changes in working capital of $74.1 million. For the full year 2022, attributable net income was $194.1 million, or $0.89 per diluted share and adjusted attributable net income was $144.8 million, or $0.67 per diluted share. For the twelve months ending December 31, 2022, operating cash flow was $160.9 million, free cash flow was $23.4 million and free cash flow before changes in working capital was $170.7 million.
  • Continued delivery of peer-leading capital returns program: For the twelve months ending December 31, 2022, SSR Mining returned $158.8 million to shareholders, marking the Company’s second consecutive year with a capital returns yield of approximately 5.0%. Quarterly dividend payments in 2022 totaled $58.8 million, reflecting SSR Mining’s announcement of a 40% increase to the base dividend on January 31, 2022. In addition, the Company returned $100.0 million to shareholders through the cancellation of 6,053,126 shares as part of SSR Mining’s current NCIB program. Subsequent to the quarter, the Board declared a quarterly dividend of $0.07 per share to be payable on March 30, 2023.
  • Robust balance sheet with strong net cash position: At the end of 2022, SSR Mining had a cash and cash equivalent balance of $655.5 million reflecting $58.8 million in dividend payments to shareholders, $100.0 million in share repurchases, $71.2 million in scheduled debt repayments, and $170.0 million for strategic M&A transactions, including the acquisition of Taiga Gold Corp. for $20.0 million and 30% of the Kartaltepe joint venture for $150.0 million. Net cash as of year-end 2022 was $387.3 million.
  • Technical Report Summaries published for all producing assets:On February 23, 2022, the Company released Technical Report Summaries (“TRS”) for each of its operating assets in compliance with Subpart 1300 of Regulation S-K, which TRS were subsequently amended and released on September 29, 2022. These reports include refreshed operating and economic assumptions for each asset and provided a base case for further growth and optimization to support the Company’s target of a long-term annual production base of 700,000 gold equivalent ounces.
  • Mineral Reserves and Mineral Resource: The Company reported updated Mineral Reserve and Mineral Resource (“MRMR”) figures as of December 31, 2022 in the Company’s Annual Report on Form 10-K (the “Annual Report”), including total Mineral Reserves of 7.6 million gold ounces and 8.3 million gold equivalent ounces. This MRMR update does not incorporate new drilling results or resource modeling changes since the prior MRMR’s December 31, 2021 effective date and accordingly solely reflects depletion that occurred through 2022 mining activity, stockpile changes and changes resulting from asset acquisitions and divestment activity completed in 2022.
  • Çöpler operations return to steady state with record sulfide plant throughput:Gold production was 65,603 ounces in the fourth quarter of 2022 at cost of sales of $1,065/oz and AISC of $1,269/oz, reflecting the successful restart of operations that began in the third quarter of 2022. Sulfide plant throughput in the fourth quarter of 2022 averaged more than 8,000 tonnes per day (“tpd”), a quarterly record. In 2022, gold production for Çöpler was 191,366 ounces, above the revised full-year guidance, at full-year cost of sales of $985/oz and AISC of $1,328/oz. In 2023, Çöpler is expected to produce 240,000 to 270,000 ounces of gold, 55% weighted to the second half of 2023, at mine site cost of sales of $1,070 to $1,100 per ounce and AISC of $1,245 to $1,295 per ounce. Çöpler’s cost profile in 2023 reflects the ramp up of the Çakmaktepe Extension project, where first production is expected within the year.
  • Marigold delivers solid cost performance in fourth quarter; poised for strong 2023: Gold production was 62,875 ounces in the fourth quarter of 2022, a solid finish that included the continued recovery of the higher grade ounces stacked earlier in 2022. Cost of sales in the fourth quarter of 2022 was $1,004/oz and AISC of $1,160/oz. In 2022, gold production for Marigold was 194,668 ounces, in line with revised full-year guidance, at cost of sales of $1,053/oz and AISC of $1,378/oz. In 2023, Marigold is expected to produce 260,000 to 290,000 ounces of gold, 60 to 70% weighted to the second half of 2023, at cost of sales of $1,000 to $1,030 per ounce and AISC of $1,315 to $1,365 per ounce.
  • Seabee delivers record full-year production: Gold production was 24,709 ounces at cost of sales of $909/oz and AISC of $1,234/oz in the fourth quarter of 2022. Underground mining and plant throughput averaged approximately 1,300 tonnes per day during the fourth quarter, highlighting the ongoing success of continuous improvement initiatives at the mine. For 2022, gold production for Seabee was a record 136,125 ounces at cost of sales of $559/oz and AISC of $823/oz. Seabee is expected to produce 100,000 to 110,000 ounces of gold in 2023, 55% weighted to the second half of 2023, at mine site cost of sales of $810 to $840 per ounce and AISC of $1,160 to $1,210 per ounce.
  • Strong finish to a solid year at Puna: Silver production was 2.4 million ounces in the fourth quarter of 2022 at cost of sales of $16.53/oz and AISC of $15.97/oz. For 2022, Puna’s silver production was 8.4 million ounces at cost of sales of $17.48/oz and AISC of $15.50/oz, all metrics within the mine’s original full year guidance range. In 2023, Puna is expected to produce 8.0 to 9.0 million ounces of silver, 50 – 55% weighted to the second half of 2023, at mine site cost of sales of $18.00 to $19.50 per payable ounce and AISC of $16.25 to $17.75 per payable ounce.
  • Closed the acquisition of Taiga Gold Corp.: On April 14, 2022,the Company completed the acquisition of all of the issued and outstanding shares of Taiga Gold Corp. The transaction consolidated a 100% interest in the Fisher property contiguous to the Seabee mine, eliminated a 2.5% NSR royalty on the Fisher property, and added five new properties covering over 29,100 hectares to complement the Company’s existing exploration platform in the underexplored and geologically prospective Province of Saskatchewan. The Company’s Saskatchewan assets now cover an area of approximately 131,150 hectares. In 2023, up to 35% of Seabee’s exploration budget is planned for follow-up drilling of targets on the Fisher property.
  • Completed the sale of the non-core Pitarrilla project:On July 6, 2022 the Company announced the closing of the sale of the Pitarrilla project to Endeavour Silver following receipt of all required regulatory approvals and satisfaction of customary closing conditions. As consideration for the sale, SSR Mining received $35.0 million in cash, $35.0 million (3)in common shares of Endeavour Silver, and a 1.25% net smelter return royalty on the Pitarrilla property. The sale was originally announced on January 13, 2022.
  • Closed the acquisition of an additional 30% ownership in Kartaltepe:In the fourth quarter of 2022, the Company announced and completed an agreement to acquire an additional 30% ownership interest in the Kartaltepe Mining Joint Venture at the Çöpler District from partner Lidya Mining for total cash consideration of $150.0 million (the “Kartaltepe Transaction”), streamlining operating, financial and exploration activities across the Ҫӧpler District while creating tangible synergies. The Company now owns 80% of the entirety of the Çöpler District.
  • Delivered strong near-mine exploration results across the portfolio: In the fourth quarter of 2022, SSR Mining announced positive exploration updates from Çöpler’s Çakmaktepe Extension, Seabee, and Marigold. These results showcase the opportunities for growth across SSR Mining’s global platform and may be incorporated into future MRMR updates as the required technical work is completed at each respective project.
  (3) The fair value of the common shares of Endeavour Silver on July 6, 2022 was $25.6 million. See Note 3 to the Condensed Consolidated Financial Statements in SSR Mining’s Form 10-K filed February 22, 2023 for more information.

 

Financial and Operating Highlights

 

A summary of the Company’s consolidated financial and operating results for the three and twelve months ended December 31, 2022 and December 31, 2021 are presented below:

 

    Three Months Ended   Twelve Months Ended
(in thousands of US dollars, except per share data)   December 31,   December 31,
    2022   2021   2022   2021
Financial Results                        
Revenue   $ 306,377   $ 407,919   $ 1,148,033   $ 1,474,199
Operating income   $ 39,367   $ 118,816   $ 190,268   $ 444,375
Net income   $ 95,177   $ 156,499   $ 210,428   $ 425,922
Net income attributable to equity holders of SSR Mining   $ 93,884   $ 127,435   $ 194,140   $ 368,076
Basic net income per share attributable to equity holders of SSR Mining   $ 0.45   $ 0.60   $ 0.92   $ 1.70
Diluted net income per share attributable to equity holders of SSR Mining   $ 0.43   $ 0.57   $ 0.89   $ 1.63
Adjusted attributable net income (4)   $ 25,580   $ 98,259   $ 144,814   $ 401,757
Adjusted basic attributable net income per share (4)   $ 0.12   $ 0.46   $ 0.69   $ 1.86
Adjusted diluted attributable net income per share (4)   $ 0.12   $ 0.44   $ 0.67   $ 1.78
                         
Cash generated by operating activities before changes in working capital (4)   $ 95,463   $ 157,218   $ 308,166   $ 638,281
Cash generated by operating activities   $ 118,097   $ 184,606   $ 160,896   $ 608,986
Cash generated by (used in) investing activities   $ (166,299)   $ 1,362   $ (236,282)   $ (129,137)
Cash generated by (used in) financing activities   $ (33,148)   $ (29,380)   $ (271,782)   $ (319,769)
                         
Operating Results                        
Gold produced (oz)     153,187     185,044     522,159     683,446
Gold sold (oz)     146,385     186,159     521,928     689,354
Silver produced (‘000 oz)     2,389     2,044     8,397     8,010
Silver sold (‘000 oz)     2,098     2,461     7,864     7,810
Lead produced (‘000 lb) (5)     13,422     11,318     41,004     37,695
Lead sold (‘000 lb) (5)     10,138     12,748     38,393     33,378
Zinc produced (‘000 lb) (5)     3,643     3,208     8,583     13,642
Zinc sold (‘000 lb) (5)     1,452     4,855     6,998     10,751
                         
Gold equivalent produced (oz) (6)     182,655     211,140     623,819     794,456
Gold equivalent sold (oz) (6)     172,308     218,271     617,135     797,602
                         
Average realized gold price ($/oz sold)   $ 1,749   $ 1,798   $ 1,811   $ 1,800
Average realized silver price ($/oz sold)   $ 18.58   $ 23.48   $ 19.58   $ 22.92
                         
Cost of sales per gold equivalent ounce sold (6)   $ 1,064   $ 861   $ 985   $ 842
Cash cost per gold equivalent ounce sold (4, 6)   $ 1,019   $ 697   $ 928   $ 698
AISC per gold equivalent ounce sold (4, 6)   $ 1,358   $ 961   $ 1,339   $ 955
                         
Financial Position   December 31, 2022   December 31, 2021
Cash and cash equivalents   $   655,453   $   1,017,562
Current assets   $   1,376,435   $   1,600,314
Total assets   $   5,254,657   $   5,211,438
Current liabilities   $   279,252   $   283,882
Total liabilities   $   1,128,458   $   1,158,921
Working capital (7)   $   1,097,183   $   1,316,432
(4) 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 reconciliation of these financial measures to net income, cost of sales, and cash generated by operating activities, which are the most comparable GAAP financial measures.  
(5) 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.  
(6) 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.  
(7) Working capital is defined as current assets less current liabilities.  

 

Updated Mineral Reserves and Resources for Year End 2022

 

SSR Mining reported its updated MRMR as of December 31, 2022 in the Company’s Annual Report. For a detailed summary by asset, please refer to Item 2 Properties in the annual report, and for a reconciliation of year-over-year changes to the MRMR figures below, please see “Supplemental Mineral Reserve and Mineral Resource Information” at the end of this news release.

 

As per Subpart 1300 of Regulation S-K, MRMR are presented on an attributable basis.

 

The MRMR as of December 31, 2022 reflect depletion that occurred through mining activity, stockpile changes and changes resulting from asset acquisitions and divestments completed during 2022. SSR Mining continues to advance exploration and resource development activities at each of its assets, and this data will be incorporated into MRMR statements as the accompanying technical work so dictates. A summary of the Company’s year-end 2022 MRMR are presented below:

  • Commodity price assumptions unchanged from 2021: Commodity prices used in the calculation of Mineral Reserves for both 2022 and 2021 are $1,350/oz gold, $18.50/oz silver, $0.90/lb of lead, $1.05/lb of zinc, and $3.30/lb copper. Mineral Resource prices of $1,750/oz gold, $22.00/oz silver, $0.95/lb lead, $1.15/lb zinc and $3.95/lb copper were unchanged from 2021.
  • Acquisition of an additional 30% of Kartaltepe;Pitarrilla divested: In the fourth quarter of 2022, SSR Mining closed the Kartaltepe Transaction, consolidating SSR Mining’s 80% ownership of the entire Çöpler district. On an attributable basis, the transaction added 64,000 gold equivalent ounces in Mineral Reserves, 123,000 gold equivalent ounces in Measured and Indicated Mineral Resources, and 124,000 gold equivalent ounces in Inferred Mineral Resources to the Company’s MRMR. The accretive sale of the non-core Pitarrilla project in 2022 drove the reduction of silver and base metal Mineral Resources.
  • Mineral Reserves: Gold Mineral Reserves as of December 31, 2022 were 7.6 million, down 5% or 0.4 million ounces as compared to year-end 2021 Mineral Reserves reflecting mine depletion. Total gold equivalent Mineral Reserves as of December 31, 2022 were 8.3 million ounces, down 6% or 0.6 million ounces from 8.9 million ounces as compared to year-end 2021.
  • Measured and Indicated Mineral Resources: Gold Measured and Indicated Mineral Resources as of December 31, 2022 were 5.8 million ounces, effectively flat as compared to year-end 2021. Total gold equivalent Measured and Indicated Mineral Resources were 7.3 million ounces, a decrease of 9.5 million ounces from the prior year as a result of the divestment of the Pitarrilla project in 2022.
  • Inferred Mineral Resources:Gold Inferred Mineral Resources of 4.7 million ounces increased by 2% or 0.1 million ounces as compared to year-end 2021 Inferred Mineral Resources, a result of the acquisition of an additional 30% interest at the Kartaltepe licenses. Gold equivalent Inferred Mineral Resources of 5.8 million ounces decreased by 6% or 0.3 million ounces as compared to year-end 2021 Inferred Mineral Resources. This was largely driven by lower silver ounces as a result of the sale of Pitarrilla in 2022.

 

 

SSR Mining Mineral Reserves and Resources as of December 31, 2022 (8)

 

  Gold y/y Silver y/y Lead Zinc Copper GEO (11)
  koz % koz % Mlb Mlb Mlb Koz
Total P+P Reserves (9) 7,620 (5%) 39,903 (13%) 190 37 7 8,339
Total M&I Resource (10) 5,753 0% 67,162 (89%) 111 281 224 7,349
Total Inferred Resource 4,716 2% 38,696 (41%) 2 178 228 5,836
(8) MRMR are shown as attributable to SSR Mining only. SSR owns 80% of the Çöpler district.  
(9) At Seabee, a $1,600/oz gold price was used in the calculation of Mineral Reserves for 2021 and 2022 to better align with site-level mine plans.  
(10) Measured and indicated Mineral Resources are shown exclusive of Mineral Reserves.  
(11) All gold equivalent ounces (GEO) figures are based on the above-mentioned commodity prices. metal equivalence is calculated for the respective and applicable metals as follows: AuEq = Au koz + ((Ag koz * Ag price) + (Pb klb * Pb price per pound) + (Zn klb * Zn price per pound) + (Cu klb * Cu price per pound)) / (Au price per ounce).  

 

 

Çöpler, Türkiye
(amounts presented on 100% basis)

 

    Three Months Ended   Twelve Months Ended
    December 31,   December 31,
Operating Data   2022   2021   2022   2021
Gold produced (oz)     65,603     92,069     191,366     329,276
Gold sold (oz)     59,949     94,333     192,811     333,761
                         
Ore mined (kt)     1,407     2,270     3,161     9,750
Waste removed (kt)     5,596     4,124     17,311     15,015
Total material mined (kt)     7,003     6,395     20,472     24,765
Strip ratio     4.0     1.8     5.5     1.5
                         
Ore stacked (kt)     249     95     459     1,786
Gold grade stacked (g/t)     1.22     1.07     1.06     1.24
                         
Ore milled (kt)     748     609     2,068     2,325
Gold mill feed grade (g/t)     2.75     4.11     2.86     3.71
Gold recovery (%)     86.8     91.0     87.0     91.0
                         
Average realized gold price ($/oz sold)   $ 1,743   $ 1,789   $ 1,826   $ 1,800
Cost of sales ($/oz gold sold)   $ 1,065   $ 667   $ 985   $ 794
Cash costs ($/oz gold sold) (12)   $ 1,053   $ 474   $ 969   $ 578
AISC ($/oz gold sold) (12)   $ 1,269   $ 591   $ 1,328   $ 713
(12) 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. For the three and twelve months ended December 31, 2022, cash costs and AISC per ounce of gold sold include the impact of any fair value adjustment on acquired inventories. For the three and twelve months ended December 31, 2021, cash costs and AISC per ounce of gold sold exclude the impact of any fair value adjustment on acquired inventories.  

 

 

For the three months ended December 31, 2022 and 2021, Çöpler produced 65,603 and 92,069 ounces of gold, respectively. During the fourth quarter of 2022, cost of sales was $1,065 per ounce while AISC were $1,269 per ounce. The sulfide plant operated at an average throughput rate of more than 8,000 tonnes per day in the fourth quarter of 2022, a quarterly record and reflecting the successful restart of operations that began in the third quarter of 2022.

 

For the twelve months ended December 31, 2022 and 2021, Çöpler produced 191,366 and 329,276 ounces of gold, respectively. During the full year 2022, cost of sales was $985 per ounce while AISC were $1,328 per ounce. Operations at Çöpler were suspended in late June until late September in response to a leak of leach solution containing diluted cyanide at the Çöpler mine site on June 21, 2022. After completing the required improvement initiatives in early August, the Company received the required regulatory approvals on September 22, 2022 from Türkiye’s Government authorities and all operations were subsequently restarted.

 

In 2023, Çöpler is expected to produce 240,000 to 270,000 ounces of gold at mine site cost of sales of $1,070 to $1,100 per payable ounce and AISC of $1,245 to $1,295 per payable ounce, reflecting the costs associated with the ramp up of mining activity at the Çakmaktepe Extension starter pit, where first production is expected in 2023. Ҫӧpler’s production profile is approximately 55% weighted to the second half of 2023, reflecting a second half weighted grade profile and the planned maintenance shutdown in the second quarter of 2023. The C2 expansion project continues to progress towards a pre-feasibility study, including maiden Mineral Reserves and updated Mineral Resources, anticipated in the second half of 2023.

 

Marigold, USA

 

    Three Months Ended   Twelve Months Ended
    December 31,   December 31,
Operating Data   2022   2021   2022   2021
Gold produced (oz)     62,875     57,405     194,668     235,282
Gold sold (oz)     62,936     58,496     195,617     236,847
                         
Ore mined (kt)     4,861     4,478     18,061     19,999
Waste removed (kt)     15,880     21,221     72,166     79,885
Total material mined (kt)     20,741     25,699     90,227     99,884
Strip ratio     3.3     4.7     4.0     4.0
                         
Ore stacked (kt)     4,861     4,478     18,061     19,999
Gold grade stacked (g/t)     0.60     0.39     0.56     0.41
                         
Average realized gold price ($/oz sold)   $ 1,719   $ 1,811   $ 1,747   $ 1,763
Cost of sales ($/oz gold sold)   $ 1,004   $ 1,085   $ 1,053   $ 925
Cash costs ($/oz gold sold) (13)   $ 1,010   $ 1,095   $ 1,056   $ 926
AISC ($/oz gold sold) (13)   $ 1,160   $ 1,332   $ 1,378   $ 1,187
(13) 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.  

 

 

For the three months ended December 31, 2022 and 2021, Marigold produced 62,875 and 57,405 ounces of gold, respectively. The fourth quarter of 2022 represented a strong finish to the year for Marigold and included the continued recovery of the higher grade ounces stacked earlier in 2022. During the fourth quarter of 2022, cost of sales was $1,004 per ounce while AISC were $1,160 per ounce.

 

For the twelve months ended December 31, 2022 and 2021, Marigold produced 194,668 and 235,282 ounces of gold, respectively. During the full year 2022, cost of sales was $1,053 per ounce while AISC were $1,378 per ounce.

 

In 2023, Marigold is expected to produce 260,000 to 290,000 ounces of gold at mine site cost of sales of $1,000 to $1,030 per payable ounce and AISC of $1,315 to $1,365 per ounce. For the full year, production is expected to be 60 to 70% weighted to the second half of 2023, reflecting a slower than expected leach cycle due to the increased proportion of finer ore stacked to the pads earlier in 2022. Marigold’s cost profile is expected to largely reflect the 2023 production profile, with first half costs above the full-year guidance range and the lowest cost periods in the third and fourth quarters.

 

Activities to enhance and extend the Marigold life of mine plan are continuing to advance. This includes accelerating spend associated with waste stripping activity at the Red Dot target in order to optimize the production profile for the remainder of the decade. In 2023, $28 million of Marigold’s $81 million sustaining capital budget is allocated to the purchase of new haul trucks. The stripping activity associated with Red Dot accounts for nearly $100 per ounce of SSR Mining’s corporate-level cost of sales. .

 

Seabee, Canada

 

    Three Months Ended   Twelve Months Ended
    December 31,   December 31,
Operating Data   2022   2021   2022   2021
Gold produced (oz)     24,709     35,570     136,125     118,888
Gold sold (oz)     23,500     33,330     133,500     118,746
                         
Ore mined (kt)     118     97     425     384
Waste removed (kt)     90     63     291     272
Total material mined (kt)     208     160     716     656
                         
Ore milled (kt)     119     113     414     382
Gold mill feed grade (g/t)     6.69     10.32     10.36     9.92
Gold recovery (%)     97.2     98.3     98.0     98.4
                         
Average realized gold price ($/oz sold)   $ 1,725   $ 1,805   $ 1,795   $ 1,800
Cost of sales ($/oz gold sold)   $ 909   $ 578   $ 559   $ 559
Cash costs ($/oz gold sold) (14)   $ 911   $ 542   $ 561   $ 521
AISC ($/oz gold sold) (14)   $ 1,234   $ 738   $ 823   $ 804
(14) 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.  

 

For the three months ended December 31, 2022 and 2021, Seabee produced 24,709 and 35,570 ounces of gold, respectively. Underground mining and plant throughput in the fourth quarter averaged approximately 1,300 tonnes per day, highlighting the ongoing success of continuous improvement initiatives at the mine. During the fourth quarter of 2022, cost of sales was $909 per ounce while AISC were $1,234 per ounce.

 

For the twelve months ended December 31, 2022 and 2021, Seabee produced 136,125 and 118,888 ounces of gold, respectively. Gold production in 2022 was a record in Seabee’s 30-year operating life. During the full year 2022, cost of sales was $559 per ounce while AISC were $823 per ounce.

 

In 2023, Seabee is expected to produce 100,000 to 110,000 ounces of gold at mine site cost of sales of $810 to $840 per payable ounce and AISC of $1,160 to $1,210 per payable ounce. Seabee’s production is expected to be 55% weighted to the second half of the year, as processed grades are expected to be lowest in the first and second quarters of 2023 before improving in the second half. Mine and plant productivity are expected to average between 1,250 and 1,300 tonnes per day through 2023. Cost of sales and AISC are expected to be highest in the first half of the year, particularly in the first quarter, reflecting the concentration of capital spend associated with the Seabee ice road.

 

Puna, Argentina

 

    Three Months Ended   Twelve Months Ended
    December 31,   December 31,
Operating Data   2022   2021   2022   2021
Silver produced (‘000 oz)     2,389     2,044     8,397     8,010
Silver sold (‘000 oz)     2,098     2,461     7,864     7,810
Lead produced (‘000 lb)     13,422     11,318     41,004     37,695
Lead sold (‘000 lb)     10,138     12,748     38,393     33,378
Zinc produced (‘000 lb)     3,643     3,208     8,583     13,642
Zinc sold (‘000 lb)     1,452     4,855     6,998     10,751
Gold equivalent sold (‘000 oz) (15)     25,923     32,112     95,207     108,248
                         
Ore mined (kt)     455     398     1,851     1,449
Waste removed (kt)     2,017     2,429     8,634     9,594
Total material mined (kt)     2,472     2,827     10,485     11,043
Strip ratio     4.4     6.1     4.7     6.6
                         
Ore milled (kt)     415     429     1,638     1,643
Silver mill feed grade (g/t)     186.5     154.4     166.7     158.0
Lead mill feed grade (%)     1.59     0.50     1.23     1.12
Zinc mill feed grade (%)     0.69     1.27     0.49     0.57
Silver mill recovery (%)     95.8     96.1     95.7     95.8
Lead mill recovery (%)     92.0     94.4     92.3     93.0
Zinc mill recovery (%)     57.9     67.4     48.7     65.6
                         
Average realized silver price ($/oz sold)   $ 18.58   $ 23.48   $ 19.58   $ 22.92
Cost of sales ($/oz sold)   $ 16.53   $ 17.15   $ 17.48   $ 15.51
Cash costs ($/oz silver sold) (16)   $ 13.01   $ 10.24   $ 13.23   $ 10.56
AISC ($/oz silver sold) (16)   $ 15.97   $ 11.62   $ 15.50   $ 12.40
(15) 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.  
(16) 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.  

 

For the three months ended December 31, 2022 and 2021, Puna produced 2.4 million and 2.0 million ounces of silver, respectively. During the fourth quarter of 2022, cost of sales was $16.53 per ounce of silver sold while AISC were $15.97 per ounce of silver sold.

 

For the twelve months ended December 31, 2022 and 2021, Puna produced 8.4 million ounces of silver and 8.0 million ounces of silver. During the full year 2022, cost of sales was $17.48 per ounce of silver sold while AISC were $15.50 per ounce of silver sold.

 

In 2023, Puna is expected to produce 8.0 to 9.0 million ounces of silver at mine site cost of sales of $18.00 to $19.50 per payable ounce and AISC of $16.25 to $17.75 per payable ounce. Production is expected to be 50 to 55% weighted to the second half of 2023, driven largely by grades that peak in the third quarter, while tonnes processed are targeted to remain at approximately 4,500 tonnes per day throughout the year. Cost of sales and AISC are expected to be highest in the first half of 2023, including a peak in the second quarter, reflecting the site-level capital spend profile.

 

Dividend Declaration

 

On February 22, 2023 the Board of Directors declared a quarterly cash dividend of $0.07 per common share, payable on March 30, 2023 to holders of record at the close of business on March 3, 2023. 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 or after March 2, 2023, will be deferred until after the record date of March 3, 2023. 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   March 1, 2023
CDIs trade on the ASX on an ex‐dividend basis   March 2, 2023
Common shares trade on the TSX and Nasdaq on an ex‐dividend basis   March 2, 2023
Record date for the dividend   March 3, 2023
Processing recommences for requests to convert CDIs into common shares and to convert common shares into CDIs   March 6, 2023
Common share dividend payment date (in Canada and the United States)   March 30, 2023
Payment of dividend to CDI holders (in Australia)   March 31, 2023

 

 

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 operations located in the USA, Türkiye, Canada, and Argentina, combined with a global pipeline of high-quality development and exploration assets. Over the last three years, the four operating assets combined have produced on average more than 700,000 gold-equivalent ounces annually.

 

Posted February 22, 2023

Share this news article

MORE or "UNCATEGORIZED"


Silver Viper Closes Additional Tranche of Private Placement

Silver Viper Minerals Corp.  (TSX-V: VIPR) (OTC: VIPRF) is plea... READ MORE

March 25, 2023

G2 Goldfields Closes C$13.8 Million Bought Deal Public Offering

G2 Goldfields Inc. (TSX-V: GTWO) (OTCQX: GUYGF) is pleased to ann... READ MORE

March 25, 2023

Collective Metals Announces Closing of Non-Brokered Private Placement of Units

Collective Metals Inc. (CSE: COMT) is pleased to announce that th... READ MORE

March 24, 2023

Laramide Resources Ltd. Announces Results from the Diamond Drilling Program at its Crownpoint-Churchrock Uranium Project, New Mexico, U.S.A.

Laramide Resources Ltd. (TSX: LAM) (ASX: LAM) (OTCQX: LMRXF) is p... READ MORE

March 24, 2023

Marathon Gold Announces 2022 Fourth Quarter and Year-End Results

Marathon Gold Corporation (TSX: MOZ) announces its financial resu... READ MORE

March 24, 2023

We acknowledge the [financial] support of the Government of Canada.

Government of Canada Supported
Copyright 2023 The Prospector News