ADJUSTED ATTRIBUTABLE EPS OF $0.40 PER SHARE AND FREE CASH FLOW OF $129 MILLION
AISC GUIDANCE LOWERED AS OPERATIONAL OUTPERFORMANCE CONTINUES
SSR Mining Inc. (NASDAQ: SSRM) (TSX: SSRM) (ASX:SSR) reports consolidated financial results for the third quarter ended September 30, 2021. In addition, the Board of Directors declared a quarterly cash dividend of US$0.05 per common share, payable on December 13, 2021 to holders of record at the close of business on November 15, 2021. This dividend qualifies as an ‘eligible dividend’ for Canadian tax purposes.
Rod Antal, President and CEO said, “The third quarter of 2021 again demonstrated the strong operational and financial results synonymous with SSR Mining, as the Company delivered production of 186,941 gold equivalent ounces at AISC of $1,006 per gold equivalent ounce. Year-to-date production of 583,316 gold equivalent ounces compares favorably to full-year guidance, while, despite inflationary pressures across the globe, year-to-date AISC of $990 per gold equivalent ounce remains well below our original full-year guidance range of $1,050 to $1,110 per gold equivalent ounce. This strong cost performance has allowed us to lower our 2021 AISC guidance to $1,000 to $1,040 per gold equivalent ounce.
Operationally, we delivered records across the portfolio in the third quarter, and subsequent to the quarter the updated Çöpler EIA, which includes the flotation circuit, was approved. Our balance sheet remains a key strength, and we are well positioned to fund the multitude of low capital, high return organic growth opportunities across SSR Mining’s portfolio. We demonstrated the significant near-mine growth potential of both the Ardich and Seabee properties with positive exploration updates in the third quarter, and look forward to additional exploration updates from Marigold, Copper Hill, and Amisk by year-end.
SSR Mining’s continued delivery of exceptional cost performance translated to $129 million of free cash flow in the third quarter. Year-to-date free cash flow of $306 million further reinforces our outstanding free cash flow yield, and continues to support our robust capital returns program as we have now delivered nearly $150 million dollars in share repurchases through the Normal Course Issuer Bid announced in April, 2021. Combined with our quarterly base dividend, we remain on track to return nearly $200 million to shareholders this year.”
Third Quarter 2021 Highlights:
(All figures are in U.S. dollars unless otherwise noted)
|(1)||SSR Mining reports the non-GAAP financial measures of all-in sustaining costs (“AISC”) per ounce of gold, silver and gold equivalent sold, adjusted attributable net income, adjusted attributable net income per share and free cash flow to manage and evaluate the Company’s operating performance. See “Non-GAAP Financial Measures” in Section 12 of the MD&A.|
Financial and Operating Highlights
A summary of the Company’s consolidated financial and operating results for the three and nine months ended September 30, 2021 and 2020 are presented below:
|(in thousands of US dollars, except per share data)||Three months ended September 30,||Nine months ended September 30,|
|Income from mine operations||$||122,303||$||83,226||$||424,978||$||162,186|
|Gross margin (2)||38||%||37||%||40||%||34||%|
|Net income attributable to equity holders of SSR Mining||$||57,176||$||26,754||$||164,170||$||44,454|
|Basic attributable net income per share||$||0.27||$||0.19||$||0.76||$||0.35|
|Adjusted attributable net income (1)||$||84,790||$||70,033||$||288,203||$||106,634|
|Adjusted basic attributable net income per share (1)||$||0.40||$||0.51||$||1.33||$||0.83|
|Cash generated by operating activities||$||187,874||$||44,099||$||481,696||$||131,232|
|Cash used in investing activities||$||(65,836)||$||245,106||$||(174,735)||$||234,889|
|Cash used in financing activities||$||(128,757)||$||(17,077)||$||(303,711)||$||(136,266)|
|Gold produced (oz)||157,613||88,972||498,402||226,858|
|Gold sold (oz)||156,388||99,497||503,378||231,626|
|Silver produced (‘000 oz)||2,184||1,280||5,966||3,416|
|Silver sold (‘000 oz)||1,565||1,193||5,624||3,651|
|Lead produced (‘000 lb) (4)||10,571||3,952||26,377||10,664|
|Lead sold (‘000 lb) (4)||7,196||3,655||21,725||11,745|
|Zinc produced (‘000 lb) (4)||3,420||1,876||10,434||4,056|
|Zinc sold (‘000 lb) (4)||2,287||1,557||6,948||4,141|
|Gold equivalent produced (oz) (5)||186,941||107,556||583,316||267,529|
|Gold equivalent sold (oz) (5)||176,299||115,290||579,331||271,315|
|Average realized gold price ($/oz sold)||$||1,792||$||1,914||$||1,804||$||1,758|
|Average realized silver price ($/oz sold)||$||24.06||$||26.69||$||25.67||$||20.25|
|Cash cost per gold equivalent ounce sold (1, 5)||$||639||$||735||$||653||$||807|
|AISC per gold equivalent ounce sold (1, 5)||$||1,006||$||1,034||$||990||$||1,255|
|Financial Position||September 30, 2021||December 31, 2020|
|Cash and cash equivalents||$||862,786||$||860,637|
|Working capital (3)||$||1,255,641||$||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 December 13, 2021 to holders of record at the close of business on November 15, 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 or after November 12, 2021, will be deferred until after the record date of November 15, 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||November 11, 2021|
|CDIs trade on the ASX on an ex–dividend basis||November 12, 2021|
|Common shares trade on the TSX and Nasdaq on an ex–dividend basis||November 12, 2021|
|Record date for the dividend||November 15, 2021|
|Processing recommences for requests to convert CDIs into common shares and to convert common shares into CDIs||November 16, 2021|
|Common share dividend payment date||December 13, 2021
(in Canada and
the United States)
|Payment of dividend to CDI holders||December 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.
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We acknowledge the [financial] support of the Government of Canada.