ADJUSTED ATTRIBUTABLE EPS OF $0.46 PER SHARE AND FREE CASH FLOW OF $100 MILLION
SSR Mining Inc. (NASDAQ: SSRM) (TSX: SSRM) (ASX: SSR) reports consolidated financial results for the second quarter ended June 30, 2021. In addition, the Board of Directors declared a quarterly cash dividend of US$0.05 per common share, payable on September 13, 2021 to holders of record at the close of business on August 16, 2021. This dividend qualifies as an ‘eligible dividend’ for Canadian tax purposes.
Rod Antal, President and CEO said, “The second quarter of 2021 continued the strong operational and financial track record that built the reputation of SSR Mining. The Company delivered quarterly production of 199,673 gold equivalent ounces and first half production of 395,750 gold equivalent ounces, including record production from Seabee and Puna, record tonnes mined at Marigold and the continued outperformance of our flagship operation at Çöpler.
In addition to the solid production, SSR Mining delivered quarterly AISC of $961 per gold equivalent ounce. The strong margins further demonstrated our peer leading free cash flow yield as the Company generated $100 million of free cash flow in the quarter. That strong free cash flow supports our robust capital returns program, as we aggressively followed through on the share buyback program we announced in April, cumulatively returning approximately $125 million dollars overall to shareholders year-to-date. We continue to see opportunity for our shares to re-rate to a premium valuation that properly reflects our delivery of consistent operating performance, strong free cash flow, low capital intensity organic growth profile and sizeable capital returns.
We remain at the top of our peer group with respect to balance sheet strength, and in addition to the year-to-date capital returns we are well positioned to fund our large portfolio of organic growth opportunities across Turkey, the US and Canada. At Çöpler, the flotation plant construction was substantially completed during the second quarter and commissioning remains on track for Q3. A steady flow of updates are expected in the second half of the year detailing positive progress at development and exploration targets across Çöpler, Marigold and Seabee.”
Second Quarter 2021 Highlights:
(All figures are in U.S. dollars unless otherwise noted)
|(1)||SSR Mining reports the non-GAAP financial measures of all-in sustaining costs (“AISC”) per ounce of gold, silver and gold equivalent sold, adjusted attributable net income, adjusted attributable net income per share and free cash flow to manage and evaluate the Company’s operating performance. See “Non-GAAP Financial Measures” in Section 12 of the MD&A.|
Financial and Operating Highlights
A summary of the Company’s consolidated financial and operating results for the three and six months ended June 30, 2021 and 2020 are presented below:
|(in thousands of US dollars, except per share data)||Three months ended June 30,||Six months ended June 30,|
|Income from mine operations||$||154,855||$||34,177||$||302,675||$||78,960|
|Gross margin (2)||41%||37%||41%||31%|
|Net income attributable to equity holders of SSR Mining||$||54,014||$||(6,276)||$||106,994||$||17,700|
|Basic attributable net income per share||$||0.25||$||(0.05)||$||0.49||$||0.14|
|Adjusted attributable net income (1)||$||101,036||$||12,575||$||203,414||$||36,601|
|Adjusted basic attributable net income per share (1)||$||0.46||$||0.10||$||0.93||$||0.30|
|Cash generated by operating activities||$||148,601||$||22,092||$||293,822||$||87,133|
|Cash used in investing activities||$||(40,846)||$||39,144||$||(108,899)||$||(10,217)|
|Cash used in financing activities||$||(103,166)||$||258||$||(174,954)||$||(119,189)|
|Gold produced (oz)||170,640||49,918||340,789||137,886|
|Gold sold (oz)||173,620||46,387||346,990||132,129|
|Silver produced (‘000 oz)||1,990||366||3,782||2,136|
|Silver sold (‘000 oz)||2,021||624||4,059||2,458|
|Lead produced (‘000 lb) (4)||9,642||1,176||15,806||6,712|
|Lead sold (‘000 lb) (4)||8,097||1,683||14,529||8,090|
|Zinc produced (‘000 lb) (4)||3,935||359||7,014||2,181|
|Zinc sold (‘000 lb) (4)||3,705||418||4,661||2,584|
|Gold equivalent produced (oz) (5)||199,673||53,202||395,750||159,973|
|Gold equivalent sold (oz) (5)||201,504||51,559||402,994||156,025|
|Average realized gold price ($/oz sold)||$||1,820||$||1,722||$||1,809||$||1,640|
|Average realized silver price ($/oz sold)||$||26.56||$||15.45||$||26.29||$||16.96|
|Cash cost per gold equivalent ounce sold (1, 5)||$||653||$||929||$||659||$||860|
|AISC per gold equivalent ounce sold (1, 5)||$||961||$||1,734||$||983||$||1,418|
|Financial Position||June 30, 2021||December 31, 2020|
|Cash and cash equivalents||$||870,359||$||860,637|
|Working capital (3)||$||1,217,612||$||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 12 of the MD&A.|
|(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 September 13, 2021 to holders of record at the close of business on August 16, 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, 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 August 13, 2021, will be deferred until after the record date of August 16, 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||August 12, 2021|
|CDIs trade on the ASX on an ex–dividend basis||August 13, 2021|
|Common shares trade on the TSX and Nasdaq on an ex–dividend basis||August 13, 2021|
|Record date for the dividend||August 16, 2021|
|Processing recommences for requests to convert CDIs into common shares and to convert common shares into CDIs||August 17, 2021|
|Common share dividend payment date||September 13, 2021
(in Canada and
the United States)
|Payment of dividend to CDI holders||September 14, 2021
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. SSR Mining is listed on the NASDAQ, the TSX, and on the ASX.
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We acknowledge the [financial] support of the Government of Canada.