SSR Mining Inc. (Nasdaq/TSX: SSRM, ASX: SSR) ("SSR Mining" or
the “Company") reports consolidated financial results for the
second quarter ended June 30, 2024, as well as an update on the
February 13, 2024 incident at the Ç�pler mine (the “Ç�pler
Incident” or the “Incident”).
�pler
Update
The primary focus following the �pler Incident was the recovery
and return of our missing colleagues to their families. All nine of
the individuals who were lost as a result of the Incident have now
been recovered. We want to thank all of those who worked tirelessly
to locate and return these individuals to their families. We
continue to provide support to the families, our colleagues and the
community members impacted by the tragic events of February 13,
2024, and to-date we have retained a full complement of salaried
staff at �pler.
Immediately following the Incident, in partnership with the
Turkish authorities, several steps were taken to ensure containment
of the Incident. All of the containment infrastructure, including
the grout curtain, coffer dam, and buttress, as well as pumping
systems and the Sabırlı Creek diversion, are successfully in place.
Public statements from the Turkish government have continued to
affirm that there has been no recordable contamination to local
soil, water or air in the sampling locations being monitored.
Over 13 million tonnes of displaced heap leach material at
�pler have been moved since the Incident, including more than 9
million tonnes from the Sabırlı Valley. As previously guided, all
displaced material is expected to be removed from the Sabırlı
Valley into temporary storage areas by the end of the third quarter
of 2024. From the start of the second quarter of 2024 onwards,
estimates for the cost of site remediation are between $250 to $300
million, including legal contingencies, material movement and
construction costs. In the second quarter, $55 million was spent on
remediation activities at �pler. With total cash of $358 million
at the end of the second quarter, total available liquidity in
excess of $850 million, and ongoing free cash flow generation from
Marigold, Seabee and Puna, SSR Mining’s balance sheet remains
strong.
The investigations into the cause of the �pler Incident
continue and we are cooperating fully with the relevant authorities
in Türkiye. The Company has commissioned independent third parties
to review the design, construction and operation of the heap leach
pad. Although the review is ongoing, to date, these reviews have
not identified any material non-conformance with the construction
or operation of the heap leach pad relative to the third-party
engineered design parameters.
SSR Mining continues to work closely with the relevant
authorities to secure the required permits for the East Storage
Facility and the restart of the �pler mine. Once all necessary
regulatory approvals, including the Environmental Impact Assessment
(EIA) and operating permits, are reinstated, it is anticipated that
initial operations at �pler will consist of processing stockpiled
ore through the sulfide plant while Ç�pler’s mining team remains
focused on completing the remediation work. As of the end of 2023,
sulfide stockpiles contained approximately 706,000 ounces. SSR
Mining expects the �pler Sulfide Plant could process the
stockpiles economically while the remediation work is
completed.
At this time, the Company is not able to estimate when and under
what conditions operations will resume at �pler.
More information related to the �pler Incident is included in
the Company’s Annual Report on Form 10-K filed on February 27, 2024
and in the Company’s Quarterly Reports on Form 10-Q filed on May 8,
2024 and July 31, 2024. Further updates on the �pler Incident, as
and when available, will continue to be provided through press
releases and posts to the Company’s website.
Second Quarter 2024
Update (1)
In the second quarter of 2024, SSR Mining produced 76,102 gold
equivalent ounces at cost of sales of $1,357 per payable ounce and
AISC of $2,116 per payable ounce, which includes $17.3 million in
care and maintenance costs incurred at �pler. First half
consolidated production of 155,864 gold equivalent ounces from
Marigold, Seabee and Puna is in line with expectations for a
second-half weighted production profile. Full-year 2024 production
guidance of 340,000 to 380,000 gold equivalent ounces for Marigold,
Seabee and Puna remains unchanged.
(1)
The Company reports non-GAAP financial
measures including all-in sustaining costs (“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 this
financial measure and a reconciliation to cost of sales, which is
the most comparable GAAP financial measure.
Second Quarter 2024 Summary: (2) (All figures are in US
dollars unless otherwise noted)
- Operating results: Second quarter 2024 production was
76,102 gold equivalent ounces at cost of sales of $1,357 per
payable ounce and AISC of $2,116 per payable ounce. During the
second quarter of 2024, operations at �pler remained suspended
following the February 13, 2024 incident. For the first half of
2024, SSR Mining produced 177,691 gold equivalent ounces at a
consolidated cost of sales of $1,244 per ounce and AISC of $1,789
per ounce. First half 2024 production from Marigold, Seabee and
Puna was 155,864 gold equivalent ounces. The three operations
remain on track for the previously stated consolidated production
guidance of 340,000 to 380,000 gold equivalent ounces at unchanged
cost expectations.
- Financial results: Net income attributable to SSR Mining
in the second quarter of 2024 was $9.7 million, or $0.05 per
diluted share, and adjusted attributable net income in the second
quarter of 2024 was $7.5 million, or $0.04 per diluted share. In
the second quarter of 2024, operating cash flow was negative $78.1
million, or negative $23.1 million before working capital
adjustments, and free cash flow was negative $116.3 million, or
negative $61.3 million before working capital adjustments.
- Cash and liquidity position: As of June 30, 2024, SSR
Mining had a cash and cash equivalent balance of $358.3 million and
a net cash position of $128.4 million. In addition, the Company has
an undrawn revolving credit facility, providing total liquidity of
$858.4 million.
- Marigold operations: Gold production was 25,691 ounces
in the second quarter of 2024 at cost of sales of $1,542 per
payable ounce and AISC of $2,065 per payable ounce. In the first
half of 2024, Marigold produced 60,371 ounces of gold at cost of
sales of $1,417 per payable ounce and AISC of $1,690 per payable
ounce. As previously guided, year-to-date operating results reflect
increased waste stripping to support near-term development
activities at Red Dot, which are a key focus for 2024 and 2025.
Marigold remains on track for full-year 2024 production guidance of
155,000 to 175,000 ounces of gold at mine site cost of sales of
$1,300 to $1,340 per payable ounce and AISC of $1,535 to $1,575 per
payable ounce. The fourth quarter of 2024 is expected to be
Marigold’s strongest production and lowest cost quarter.
- Seabee operations: Gold production was 16,709 ounces in
the second quarter of 2024 at cost of sales of $1,150 per payable
ounce and AISC of $1,626 per payable ounce. In the first half of
2024, Seabee produced 40,482 ounces of gold at cost of sales of
$959 per payable ounce and AISC of $1,488 per payable ounce. Seabee
remains on track for full-year 2024 production guidance of 75,000
to 85,000 ounces of gold at mine site cost of sales of $990 to
$1,030 per payable ounce and AISC of $1,495 to $1,535 per payable
ounce.
- Puna operations: Silver production was 2.7 million
ounces in the second quarter of 2024 at cost of sales of $16.10 per
payable ounce of silver and AISC of $15.19 per payable ounce of
silver. Quarterly process plant throughput averaged over 5,150
tonnes per day, a record for the mine. In the first half of 2024,
Puna produced 4.6 million ounces of silver at cost of sales of
$16.41 per payable ounce and AISC of $15.36 per payable ounce. Puna
remains on track for full-year 2024 production guidance of 8.75 to
9.50 million ounces of silver at mine site cost of sales of $16.50
to $18.00 per payable ounce and AISC of $14.75 to $16.25 per
payable ounce.
- Hod Maden: During the second quarter of 2024, initial
site establishment and engineering activities continued at Hod
Maden as the Company advances the project towards a construction
decision.
- Sale of the non-core San Luis project completed: On May
23 2024, the Company announced that it had closed the sale of the
San Luis project to Highlander Silver Corp. following the receipt
of all required regulatory approvals and satisfaction of all
closing conditions. As consideration for the sale, SSR Mining
received $5 million in cash and may also receive up to $37.5
million in contingent payments payable in cash. A 4.0% net smelter
return (“NSR”) royalty on the San Luis project was also granted to
SSR Mining concurrently with the closing of the transaction.
(2)
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.
Financial and Operating Summary
A summary of the Company's consolidated financial and operating
results for the three and six months ended June 30, 2024 and June
30, 2023 are presented below:
(in thousands of US dollars, except per
share data)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Financial Results
Revenue
$
184,841
$
301,026
$
415,075
$
615,640
Cost of sales
$
96,582
$
170,640
$
222,483
$
369,937
Operating income (loss)
$
10,720
$
52,929
$
(365,704)
$
89,914
Net income (loss)
$
2,464
$
122,376
$
(355,698)
$
151,380
Net income (loss) attributable to SSR
Mining shareholders
$
9,693
$
74,866
$
(277,389)
$
104,679
Basic net income (loss) per share
attributable to SSR Mining shareholders
$
0.05
$
0.37
$
(1.37)
$
0.51
Diluted net income (loss) per share
attributable to SSR Mining shareholders
$
0.05
$
0.35
$
(1.37)
$
0.49
Adjusted attributable net income (3)
$
7,489
$
75,103
$
29,999
$
96,376
Adjusted basic attributable net income per
share (3)
$
0.04
$
0.37
$
0.15
$
0.47
Adjusted diluted attributable net income
per share (3)
$
0.04
$
0.35
$
0.15
$
0.45
Cash generated by (used in) operating
activities
$
(78,132)
$
80,343
$
(53,501)
$
83,310
Cash generated by (used in) operating
activities before changes in working capital (3)
$
(23,093)
$
104,265
$
9,164
$
195,134
Cash generated by (used in) investing
activities
$
(31,684)
$
(179,860)
$
(68,462)
$
(231,741)
Cash generated by (used in) financing
activities
$
1,488
$
(72,945)
$
(9,332)
$
(111,134)
Operating Results
Gold produced (oz)
42,400
128,902
122,680
251,723
Gold sold (oz)
40,470
124,916
129,749
251,027
Silver produced ('000 oz)
2,731
2,269
4,646
4,284
Silver sold ('000 oz)
2,489
1,857
4,148
4,238
Lead produced ('000 lb) (4)
13,291
10,193
23,289
21,554
Lead sold ('000 lb) (4)
12,385
9,805
21,050
23,175
Zinc produced ('000 lb) (4)
859
1,748
2,076
4,227
Zinc sold ('000 lb) (4)
1,419
1,033
1,929
4,720
Gold equivalent produced (oz) (5)
76,102
156,625
177,691
303,518
Gold equivalent sold (oz) (5)
71,190
147,705
178,864
302,262
Average realized gold price ($/oz
sold)
$
2,378
$
1,963
$
2,160
$
1,932
Average realized silver price ($/oz
sold)
$
30.22
$
24.61
$
27.01
$
23.92
Cost of sales per gold equivalent ounce
sold (5)
$
1,357
$
1,155
$
1,244
$
1,224
Cash cost per gold equivalent ounce sold
(3,5)
$
1,192
$
1,108
$
1,137
$
1,157
AISC per gold equivalent ounce sold
(3,5)
$
2,116
$
1,633
$
1,789
$
1,663
Financial Position
June 30, 2024
December 31, 2023
Cash and cash equivalents
$
358,307
$
492,393
Current assets
$
1,021,938
$
1,196,476
Total assets
$
5,175,554
$
5,385,773
Current liabilities
$
288,551
$
170,573
Total liabilities
$
1,234,412
$
1,081,570
Working capital (6)
$
733,387
$
1,025,903
(3)
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 (loss)
attributable to SSR Mining shareholders, cost of sales, and cash
generated by operating activities, which are the most comparable
GAAP financial measures. Cost of sales excludes depreciation,
depletion, and amortization.
(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 are calculated by
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.
(6)
Working capital is defined as current
assets less current liabilities.
Marigold, USA
Three Months Ended June
30,
Six Months Ended June
30,
Operating Data
2024
2023
2024
2023
Gold produced (oz)
25,691
60,443
60,371
112,422
Gold sold (oz)
25,450
60,389
62,319
111,686
Ore mined (kt)
7,474
5,042
13,196
10,409
Waste removed (kt)
18,778
15,648
39,365
32,678
Total material mined (kt)
26,252
20,690
52,561
43,086
Strip ratio
2.5
3.1
3.0
3.1
Ore stacked (kt)
7,474
5,042
13,196
10,409
Gold grade stacked (g/t)
0.20
0.52
0.17
0.47
Average realized gold price ($/oz
sold)
$
2,391
$
1,950
$
2,203
$
1,933
Cost of sales costs ($/oz gold sold)
$
1,542
$
1,059
$
1,417
$
1,061
Cash costs ($/oz gold sold) (7)
$
1,542
$
1,063
$
1,418
$
1,065
AISC ($/oz gold sold) (7)
$
2,065
$
1,656
$
1,690
$
1,659
(7)
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 "Cautionary
Note Regarding Non-GAAP Financial Measures" at the end of this
press release for an explanation of these financial measures and a
reconciliation to cost of sales, which are the comparable GAAP
financial measure. Cost of sales excludes depreciation, depletion,
and amortization.
For the three months ended June 30, 2024 and 2023, Marigold
produced 25,691 and 60,443 ounces of gold, respectively. For the
six months ended June 30, 2024 and 2023, Marigold produced 60,371
and 112,422 ounces of gold, respectively. During the second quarter
of 2024, Marigold reported cost of sales of $1,542 per payable
ounce and AISC of $2,065 per payable ounce. As planned, the first
half of 2024 results include increased waste stripping to support
near-term development activities at Red Dot, which is a key focus
for 2024 and 2025. As previously guided, first half 2024 cost of
sales of $1,417 per payable ounce and AISC of $1,690 per payable
ounce were above the full-year cost guidance ranges. Costs are
expected to meaningfully improve in the second half of 2024,
particularly in the fourth quarter.
Full-year 2024 production guidance for Marigold is 155,000 to
175,000 ounces of gold at mine site cost of sales of $1,300 to
$1,340 per payable ounce and AISC of $1,535 to $1,575 per payable
ounce.
Seabee, Canada
Three Months Ended June
30,
Six Months Ended June
30,
Operating Data
2024
2023
2024
2023
Gold produced (oz)
16,709
16,428
40,482
32,196
Gold sold (oz)
15,020
15,330
43,470
32,130
Ore mined (kt)
115
119
219
218
Ore milled (kt)
103
105
218
218
Gold mill feed grade (g/t)
5.40
5.25
5.99
4.91
Gold recovery (%)
95.5
96.9
96.0
96.5
Average realized gold price ($/oz
sold)
$
2,355
$
1,960
$
2,169
$
1,931
Cost of sales ($/oz gold sold)
$
1,150
$
1,192
$
959
$
1,293
Cash costs ($/oz gold sold) (8)
$
1,152
$
1,192
$
960
$
1,294
AISC ($/oz gold sold) (8)
$
1,626
$
1,690
$
1,488
$
1,960
(8)
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 "Cautionary Note
Regarding Non-GAAP Financial Measures" at the end of this press
release for an explanation of these financial measures and a
reconciliation to cost of sales, which are the comparable GAAP
financial measure. Cost of sales excludes depreciation, depletion,
and amortization.
For the three months ended June 30, 2024 and 2023, Seabee
produced 16,709 and 16,428 ounces of gold, respectively. For the
six months ended June 30, 2024 and 2023, Seabee produced 40,482 and
32,196 ounces of gold, respectively. During the second quarter of
2024, Seabee reported cost of sales of $1,150 per payable ounce and
AISC of $1,626 per payable ounce. During the first half of 2024,
the Company reported cost of sales of $959 per payable ounce and
AISC of $1,488 per payable ounce.
Full-year 2024 production guidance at Seabee is 75,000 to 85,000
ounces of gold at mine site cost of sales of $990 to $1,030 per
payable ounce and AISC of $1,495 to $1,535 per payable ounce. As
previously guided, processed grades are expected to average between
5.0 and 6.0 g/t over 2024.
Puna, Argentina
Three Months Ended June
30,
Six Months Ended June
30,
Operating Data
2024
2023
2024
2023
Silver produced ('000 oz)
2,731
2,269
4,646
4,284
Silver sold ('000 oz)
2,489
1,857
4,148
4,238
Lead produced ('000 lb)
13,291
10,193
23,289
21,554
Lead sold ('000 lb)
12,385
9,805
21,050
23,175
Zinc produced ('000 lb)
859
1,748
2,076
4,227
Zinc sold ('000 lb)
1,419
1,033
1,929
4,720
Gold equivalent sold ('000 oz) (9)
30,720
22,789
49,115
51,235
Ore mined (kt)
668
510
931
859
Waste removed (kt)
1,519
1,524
3,029
3,508
Total material mined (kt)
2,187
2,034
3,959
4,367
Strip ratio
2.3
3.0
3.3
4.1
Ore milled (kt)
470
419
887
834
Silver mill feed grade (g/t)
186.3
175.5
168.5
166.5
Lead mill feed grade (%)
1.34
1.18
1.25
1.25
Zinc mill feed grade (%)
0.18
0.36
0.22
0.40
Silver mill recovery (%)
97.0
96.1
96.7
96.0
Lead mill recovery (%)
95.7
93.4
94.9
93.9
Zinc mill recovery (%)
46.4
52.7
48.0
57.8
Average realized silver price ($/oz
sold)
$
30.22
$
24.61
$
27.01
$
23.92
Cost of sales ($/oz silver sold)
$
16.10
$
18.02
$
16.41
$
18.95
Cash costs ($/oz silver sold) (10)
$
11.38
$
14.40
$
11.75
$
14.41
AISC ($/oz silver sold) (10)
$
15.19
$
17.41
$
15.36
$
16.84
(9)
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.
(10)
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 "Cautionary Note
Regarding Non-GAAP Financial Measures" at the end of this press
release for an explanation of these financial measures and a
reconciliation to cost of sales, which are the comparable GAAP
financial measure. Cost of sales excludes depreciation, depletion,
and amortization.
For the three months ended June 30, 2024 and 2023, Puna produced
2.7 and 2.3 million ounces of silver, respectively with the
year-over-year increase primarily driven by more ore tonnes milled
and higher mill feed grade. Quarterly process plant throughput
averaged over 5,150 tonnes per day, a record for the mine. For the
six months ended June 30, 2024 and 2023, Puna produced 4.6 and 4.3
million ounces of silver, respectively. During the second quarter
of 2024, Puna reported cost of sales of $16.10 per payable ounce
and AISC of $15.19 per payable ounce. During the first half of
2024, the Company reported cost of sales of $16.41 per payable
ounce and AISC of $15.36 per payable ounce.
Full-year 2024 production guidance at Puna is 8.75 to 9.50
million ounces of silver at mine site cost of sales of $16.50 to
$18.00 per payable ounce and AISC of $14.75 to $16.25 per payable
ounce.
Ç�pler, Türkiye (amounts presented on 100% basis)
Operations at �pler were suspended following the �pler
Incident on February 13, 2024. During the suspension, care and
maintenance expense has been recorded which represents direct costs
not associated with the environmental reclamation and remediation
costs and depreciation. No production was recorded in the second
quarter of 2024.
Three Months Ended June
30,
Six Months Ended June
30,
Operating Data
2024
2023
2024
2023
Gold produced (oz)
—
52,031
21,827
107,105
Gold sold (oz)
—
49,197
23,960
107,211
Ore mined (kt)
—
1,184
266
2,363
Waste removed (kt)
—
4,841
3,571
10,216
Total material mined (kt)
—
6,025
3,837
12,579
Strip ratio
—
4.1
13.4
4.3
Ore stacked (kt)
—
154
184
342
Gold grade stacked (g/t)
—
1.46
1.17
1.33
Ore milled (kt)
—
680
343
1,404
Gold mill feed grade (g/t)
—
2.34
2.39
2.40
Gold recovery (%)
—
89.1
78.9
88.4
Average realized gold price ($/oz
sold)
$
—
$
1,979
$
2,013
$
1,934
Cost of sales ($/oz gold sold)
$
—
$
1,117
$
1,019
$
1,209
Cash costs ($/oz gold sold) (11)
$
—
$
1,107
$
1,020
$
1,196
AISC ($/oz gold sold) (11)
$
—
$
1,384
$
2,507
$
1,404
(11)
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 �pler. See "Cautionary Note
Regarding Non-GAAP Financial Measures" at the end of this press
release for an explanation of these financial measures and a
reconciliation to cost of sales, which are the comparable GAAP
financial measure. Cost of sales excludes depreciation, depletion,
and amortization.
Conference Call Information
This news release should be read in conjunction with the
Company’s Quarterly Report on Form 10-Q for the quarter ended June
30, 2024, filed with the U.S. Securities and Exchange Commission
(the “SEC”) and available on the SEC website at www.sec.gov or
www.ssrmining.com.
- Conference call and webcast: Wednesday, July 31, 2024, at 5:00
pm EDT.
Toll-free in U.S. and Canada:
+1 (844) 763-8274
All other callers:
+1 (412) 717-9224
Webcast:
‘http://ir.ssrmining.com/investors/events
- The conference call will be archived and available on our
website. Audio replay will be available for two weeks by
calling:
Toll-free in U.S. and Canada:
+1 (855) 669-9658, replay code 0747
All other callers:
+1 (412) 317-0088, replay code 0747
About SSR Mining
SSR Mining is listed under the ticker symbol SSRM on the Nasdaq
and the TSX, and SSR on the ASX.
Cautionary Note Regarding Forward-Looking Information and
Statements:
Except for statements of historical fact relating to us, certain
statements contained in this news release (including information
incorporated by reference herein) constitute forward-looking
information, future oriented financial information, or financial
outlooks (collectively “forward-looking information”) within the
meaning of Section 27A of the Securities Act of 1933, as amended
(the “Securities Act”), and Section 21E of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”), and are intended to
be covered by the safe harbor provided for under these sections.
Forward-looking information may be contained in this document and
our other public filings. Forward-looking information relates to
statements concerning our outlook and anticipated events or results
and, in some cases, can be identified by terminology such as “may”,
“will”, “could”, “should”, “expect”, “plan”, “anticipate”,
“believe”, “intend”, “estimate”, “projects”, “predict”,
“potential”, “continue” or other similar expressions concerning
matters that are not historical facts, as well as statements
written in the future tense. When made, forward-looking statements
are based on information known to management at such time and/or
management’s good faith belief with respect to future events. Such
statements are subject to risks and uncertainties that could cause
actual performance or results to differ materially from those
expressed in the Company's forward-looking statements. Many of
these factors are beyond the Company's ability to control or
predict. Given these uncertainties, readers are cautioned not to
place undue reliance on forward-looking statements.
The key risks and uncertainties include, but are not limited to:
local and global political and economic conditions; governmental
and regulatory requirements and actions by governmental
authorities, including changes in government policy, government
ownership requirements, changes in environmental, tax and other
laws or regulations and the interpretation thereof; developments
with respect to global pandemics, including the duration, severity
and scope of a pandemic and potential impacts on mining operations;
risks and uncertainties resulting from the incident at �pler
described in our Annual Report on Form 10-K for the year ended
December 31, 2023 and in our quarterly report on Form 10-Q for the
quarter end June 30, 2024; and other risk factors detailed from
time to time in our reports filed with the Securities and Exchange
Commission on EDGAR at www.sec.gov the Canadian securities
regulatory authorities on SEDAR at www.sedarplus.ca and on our
website at www.ssrmining.com.
Forward-looking information and statements in this news release
include any statements concerning, among other things: all
information related to the Company’s Ç�pler operations, including
timelines, outlook, preliminary costs, remediation plans, and
possible restart plans; forecasts and outlook; preliminary cost
reporting in this document; timing, production, operating, cost,
and capital expenditure guidance; our operational and development
targets and catalysts and the impact of any suspensions on
operations; the results of any gold reconciliations; the ability to
discover additional ore; the generation of free cash flow and
payment of dividends; matters relating to proposed exploration;
communications with local stakeholders; maintaining community and
government relations; negotiations of joint ventures; negotiation
and completion of transactions; commodity prices; Mineral
Resources, Mineral Reserves, conversion of Mineral Resources,
realization of Mineral Reserves, and the existence or realization
of Mineral Resource estimates; the development approach; the timing
and amount of future production; the timing of studies,
announcements, and analysis; the timing of construction and
development of proposed mines and process facilities; capital and
operating expenditures; economic conditions; availability of
sufficient financing; exploration plans; receipt of regulatory
approvals; timing and impact surrounding suspension or interruption
of operations as a result of regulatory requirements or actions by
governmental authority; renewal of NCIB program; and any and all
other timing, exploration, development, operational, financial,
budgetary, economic, legal, social, environmental, regulatory, and
political matters that may influence or be influenced by future
events or conditions.
Such forward-looking information and statements are based on a
number of material factors and assumptions, including, but not
limited in any manner to, those disclosed in any other of our
filings on EDGAR and SEDAR, and include: any assumptions made in
respect of the Company’s Ç�pler operations; the inherent
speculative nature of exploration results; the ability to explore;
communications with local stakeholders; maintaining community and
governmental relations; status of negotiations of joint ventures;
weather conditions at our operations; commodity prices; the
ultimate determination of and realization of Mineral Reserves;
existence or realization of Mineral Resources; the development
approach; availability and receipt of required approvals, titles,
licenses and permits; sufficient working capital to develop and
operate the mines and implement development plans; access to
adequate services and supplies; foreign currency exchange rates;
interest rates; access to capital markets and associated cost of
funds; availability of a qualified work force; ability to
negotiate, finalize, and execute relevant agreements; lack of
social opposition to our mines or facilities; lack of legal
challenges with respect to our properties; the timing and amount of
future production; the ability to meet production, cost, and
capital expenditure targets; timing and ability to produce studies
and analyses; capital and operating expenditures; economic
conditions; availability of sufficient financing; the ultimate
ability to mine, process, and sell mineral products on economically
favorable terms; and any and all other timing, exploration,
development, operational, financial, budgetary, economic, legal,
social, geopolitical, regulatory and political factors that may
influence future events or conditions. While we consider these
factors and assumptions to be reasonable based on information
currently available to us, they may prove to be incorrect.
Such factors are not exhaustive of the factors that may affect
any of the Company’s forward-looking statements and information,
and such statements and information will not be updated to reflect
events or circumstances arising after the date of such statements
or to reflect the occurrence of anticipated or unanticipated
events. Forward-looking information and statements are only
predictions based on our current estimations and assumptions.
Actual results may vary materially from such forward-looking
information. Other than as required by law, we do not intend, and
undertake no obligation to update any forward-looking information
to reflect, among other things, new information or future events.
The information contained on, or that may be accessed through, our
website is not incorporated by reference into, and is not a part
of, this document.
Cautionary Note Regarding Non-GAAP Financial Measures
We have included certain non-GAAP financial measures to assist
in understanding the Company’s financial results. The non-GAAP
financial measures are employed by us to measure our operating and
economic performance and to assist in decision-making, as well as
to provide key performance information to senior management. We
believe that, in addition to conventional measures prepared in
accordance with GAAP, certain investors and other stakeholders will
find this information useful to evaluate our operating and
financial performance; however, these non-GAAP performance measures
– including total cash, total debt, net cash (debt), cash costs,
all-in sustaining costs (“AISC”) per ounce sold, adjusted net
income (loss) attributable to shareholders, cash generated by (used
in) operating activities before changes in working capital, free
cash flow, and free cash flow before changes in working capital –
do not have any standardized meaning. These performance measures
are intended to provide additional information and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with GAAP. Our definitions of
our non-GAAP financial measures may not be comparable to similarly
titled measures reported by other companies. These non-GAAP
measures should be read in conjunction with our consolidated
financial statements.
Non-GAAP Measure – Net Cash
(Debt)
Net cash (debt) are used by management and investors to measure
the Company's underlying operating performance. The Company
believes that net cash (debt) is a useful measure for shareholders
as it helps evaluate liquidity and available cash.
The following table provides a reconciliation of cash and cash
equivalents to net cash:
As of
(in thousands)
June 30, 2024
December 31, 2023
Cash and cash equivalents
$
358,307
$
492,393
Restricted cash
$
101
$
101
Total cash
$
358,408
$
492,494
Face value of 2019 convertible note
$
230,000
$
230,000
Other debt
$
—
$
920
Total debt
$
230,000
$
230,920
Net cash (debt)
$
128,408
$
261,574
In addition to net cash and net debt, the Company also uses
Total liquidity to measure its financial position. Total liquidity
is calculated as Cash and cash equivalents plus Restricted cash and
borrowing capacity under current revolving credit facilities,
including accordion features. As of June 30, 2024 and as of
December 31, 2023, the Company’s $400 million credit facility was
undrawn, with a $100 million accordion feature.
The following table provides a reconciliation of Cash and cash
equivalents to Total liquidity:
As of
(in thousands)
June 30, 2024
December 31, 2023
Cash and cash equivalents
$
358,307
$
492,393
Restricted cash
$
101
$
101
Total cash
$
358,408
$
492,494
Borrowing capacity on credit facility
$
400,000
$
400,000
Borrowing capacity on accordion feature of
credit facility
$
100,000
$
100,000
Total liquidity
$
858,408
$
992,494
Non-GAAP Measure - Cash Costs and
AISC
Cash Costs and All-In Sustaining Costs (“AISC”) per payable
ounce of gold and respective unit cost measures are non-U.S. GAAP
metrics developed by the World Gold Council to provide transparency
into the costs associated with producing gold and provide a
standard for comparison across the industry. The World Gold Council
is a market development organization for the gold industry.
The Company uses cash costs per ounce of precious metals sold
and AISC per ounce of precious metals to monitor its operating
performance internally. The most directly comparable measure
prepared in accordance with GAAP is cost of sales. The Company
believes this measure provides investors and analysts with useful
information about its underlying cash costs of operations and the
impact of by-product credits on its cost structure. The Company
also believes it is a relevant metric used to understand its
operating profitability. When deriving the cost of sales associated
with an ounce of precious metal, the Company includes by-product
credits, which allows management and other stakeholders to assess
the net costs of gold and silver production.
AISC includes total cost of sales incurred at the Company's
mining operations, which forms the basis of cash costs.
Additionally, the Company includes sustaining capital expenditures,
sustaining mine-site exploration and evaluation costs, reclamation
cost accretion and amortization, and general and administrative
expenses. This measure seeks to reflect the ongoing cost of gold
and silver production from current operations; therefore, growth
capital is excluded. The Company determines sustaining capital to
be capital expenditures that are necessary to maintain current
production and execute the current mine plan. The Company
determines growth capital to be those payments used to develop new
operations or related to projects at existing operations where
those projects will materially benefit the operation.
The Company believes that AISC provides additional information
to management and stakeholders that provides visibility to better
define the total costs associated with production and better
understanding of the economics of the Company's operations and
performance compared to other producers.
In deriving the number of ounces of precious metal sold, the
Company considers the physical ounces available for sale after the
treatment and refining process, commonly referred to as payable
metal, as this is what is sold to third parties.
The following tables provide a reconciliation of Cost of sales
to Cash costs and AISC:
Three Months Ended June 30,
2024
(in thousands, unless otherwise noted)
�pler
Marigold
Seabee
Puna
Corporate
Total
Cost of sales (GAAP) (12)
$
—
$
39,237
$
17,275
$
40,070
$
—
$
96,582
By-product credits
$
—
$
(61)
$
(14)
$
(13,783)
$
—
$
(13,858)
Treatment and refining charges
$
—
$
74
$
45
$
2,038
$
—
$
2,157
Cash costs (non-GAAP)
$
—
$
39,250
$
17,306
$
28,325
$
—
$
84,881
Sustaining capital expenditures
$
4,602
$
12,432
$
6,201
$
3,550
$
—
$
26,785
Sustaining exploration and evaluation
expense
$
—
$
274
$
—
$
—
$
—
$
274
Care and maintenance (13)
$
17,283
$
—
$
—
$
—
$
—
$
17,283
Reclamation cost accretion and
amortization
$
493
$
605
$
922
$
5,926
$
—
$
7,946
General and administrative expense and
stock-based compensation expense
$
—
$
—
$
—
$
—
$
13,452
$
13,452
Total AISC (non-GAAP)
$
22,378
$
52,561
$
24,429
$
37,801
$
13,452
$
150,621
Gold sold (oz)
—
25,450
15,020
—
—
40,470
Silver sold (oz)
—
—
—
2,489,064
—
2,489,064
Gold equivalent sold (oz) (14)
—
25,450
15,020
30,720
—
71,190
Cost of sales per gold ounce sold
N/A
1,542
1,150
N/A
N/A
N/A
Cost of sales per silver ounce sold
N/A
N/A
N/A
16.10
N/A
N/A
Cost of sales per gold equivalent ounce
sold
N/A
1,542
1,150
1,304
N/A
1,357
Cash cost per gold ounce sold
N/A
1,542
1,152
N/A
N/A
N/A
Cash cost per silver ounce sold
N/A
N/A
N/A
11.38
N/A
N/A
Cash cost per gold equivalent ounce
sold
N/A
1,542
1,152
922
N/A
1,192
AISC per gold ounce sold
N/A
2,065
1,626
N/A
N/A
N/A
AISC per silver ounce sold
N/A
N/A
N/A
15.19
N/A
N/A
AISC per gold equivalent ounce sold
N/A
2,065
1,626
1,231
N/A
2,116
Three Months Ended June 30,
2023
(in thousands, unless otherwise noted)
�pler
Marigold
Seabee
Puna
Corporate
Total
Cost of sales (GAAP) (12)
$
54,949
$
63,965
$
18,272
$
33,454
$
—
$
170,640
By-product credits
$
(500)
$
(37)
$
(14)
$
(10,462)
$
—
$
(11,013)
Treatment and refining charges
$
—
$
276
$
19
$
3,749
$
—
$
4,044
Cash costs (non-GAAP)
$
54,449
$
64,204
$
18,277
$
26,741
$
—
$
163,671
Sustaining capital expenditures
$
10,511
$
31,312
$
6,872
$
2,477
$
—
$
51,172
Sustaining exploration and evaluation
expense
$
1,354
$
3,829
$
—
$
2,299
$
—
$
7,482
Reclamation cost accretion and
amortization
$
427
$
666
$
761
$
765
$
—
$
2,619
General and administrative expense and
stock-based compensation expense
$
1,326
$
—
$
—
$
37
$
14,899
$
16,262
Total AISC (non-GAAP)
$
68,067
$
100,011
$
25,910
$
32,319
$
14,899
$
241,206
Gold sold (oz)
49,197
60,389
15,330
—
—
124,916
Silver sold (oz)
—
—
—
1,856,600
—
1,856,600
Gold equivalent sold (oz) (14)
49,197
60,389
15,330
22,789
—
147,705
Cost of sales per gold ounce sold
1,117
1,059
1,192
N/A
N/A
N/A
Cost of sales per silver ounce sold
N/A
N/A
N/A
18.02
N/A
N/A
Cost of sales per gold equivalent ounce
sold
1,117
1,059
1,192
1,468
N/A
1,155
Cash cost per gold ounce sold
1,107
1,063
1,192
N/A
N/A
N/A
Cash cost per silver ounce sold
N/A
N/A
N/A
14.40
N/A
N/A
Cash cost per gold equivalent ounce
sold
1,107
1,063
1,192
1,173
N/A
1,108
AISC per gold ounce sold
1,384
1,656
1,690
N/A
N/A
N/A
AISC per silver ounce sold
N/A
N/A
N/A
17.41
N/A
N/A
AISC per gold equivalent ounce sold
1,384
1,656
1,690
1,418
N/A
1,633
(12)
Excludes depreciation, depletion, and
amortization.
(13)
Care and maintenance expense only includes
direct costs not associated with environmental reclamation and
remediation costs, as depreciation is not included in the
calculation of AISC.
(14)
Gold equivalent ounces are calculated by
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. Gold equivalent ounces sold may not add based on
amounts presented in this table due to rounding.
Six Months Ended June 30,
2024
(in thousands, unless otherwise noted)
�pler
Marigold
Seabee
Puna
Corporate
Total
Cost of sales (GAAP) (15)
$
24,423
$
88,308
$
41,708
$
68,044
$
—
$
222,483
By-product credits
$
(345)
$
(62)
$
(39)
$
(22,848)
$
—
$
(23,294)
Treatment and refining charges
$
351
$
147
$
80
$
3,520
$
—
$
4,098
Cash costs (non-GAAP)
$
24,429
$
88,393
$
41,749
$
48,716
$
—
$
203,287
Sustaining capital expenditures
$
9,689
$
14,737
$
21,106
$
6,909
$
—
$
52,441
Sustaining exploration and evaluation
expense
$
—
$
628
$
—
$
—
$
—
$
628
Care and maintenance (16)
$
24,961
$
—
$
—
$
—
$
—
$
24,961
Reclamation cost accretion and
amortization
$
978
$
1,540
$
1,849
$
8,075
$
—
$
12,442
General and administrative expense and
stock-based compensation expense
$
—
$
—
$
—
$
—
$
26,312
$
26,312
Total AISC (non-GAAP)
$
60,057
$
105,298
$
64,704
$
63,700
$
26,312
$
320,071
Gold sold (oz)
23,960
62,319
43,470
—
—
129,749
Silver sold (oz)
—
—
—
4,147,685
—
4,147,685
Gold equivalent sold (oz) (17)
23,960
62,319
43,470
49,115
—
178,864
Cost of sales per gold ounce sold
1,019
1,417
959
N/A
N/A
N/A
Cost of sales per silver ounce sold
N/A
N/A
N/A
16.41
N/A
N/A
Cost of sales per gold equivalent ounce
sold
1,019
1,417
959
1,385
N/A
1,244
Cash cost per gold ounce sold
1,020
1,418
960
N/A
N/A
N/A
Cash cost per silver ounce sold
N/A
N/A
N/A
11.75
N/A
N/A
Cash cost per gold equivalent ounce
sold
1,020
1,418
960
992
N/A
1,137
AISC per gold ounce sold
2,507
1,690
1,488
N/A
N/A
N/A
AISC per silver ounce sold
N/A
N/A
N/A
15.36
N/A
N/A
AISC per gold equivalent ounce sold
2,507
1,690
1,488
1,297
N/A
1,789
Six Months Ended June 30,
2023
(in thousands, unless otherwise noted)
�pler
Marigold
Seabee
Puna
Corporate
Total
Cost of sales (GAAP) (15)
$
129,595
$
118,506
$
41,537
$
80,299
$
—
$
369,937
By-product credits
$
(1,367)
$
(74)
$
(24)
$
(28,476)
$
—
$
(29,941)
Treatment and refining charges
$
—
$
459
$
49
$
9,247
$
—
$
9,755
Cash costs (non-GAAP)
$
128,228
$
118,891
$
41,562
$
61,070
$
—
$
349,751
Sustaining capital expenditures
$
17,214
$
64,434
$
20,007
$
5,307
$
—
$
106,962
Sustaining exploration and evaluation
expense
$
2,115
$
683
$
—
$
3,371
$
—
$
6,169
Reclamation cost accretion and
amortization
$
854
$
1,311
$
1,416
$
1,530
$
—
$
5,111
General and administrative expense and
stock-based compensation expense
$
2,062
$
—
$
—
$
89
$
32,652
$
34,803
Total AISC (non-GAAP)
$
150,473
$
185,319
$
62,985
$
71,367
$
32,652
$
502,796
Gold sold (oz)
107,211
111,686
32,130
—
—
251,027
Silver sold (oz)
—
—
—
4,238,140
—
4,238,140
Gold equivalent sold (oz) (17)
107,211
111,686
32,130
51,235
—
302,262
Cost of sales per gold ounce sold
1,209
1,061
1,293
N/A
N/A
N/A
Cost of sales per silver ounce sold
N/A
N/A
N/A
18.95
N/A
N/A
Cost of sales per gold equivalent ounce
sold
1,209
1,061
1,293
1,567
N/A
1,224
Cash cost per gold ounce sold
1,196
1,065
1,294
N/A
N/A
N/A
Cash cost per silver ounce sold
N/A
N/A
N/A
14.41
N/A
N/A
Cash cost per gold equivalent ounce
sold
1,196
1,065
1,294
1,192
N/A
1,157
AISC per gold ounce sold
1,404
1,659
1,960
N/A
N/A
N/A
AISC per silver ounce sold
N/A
N/A
N/A
16.84
N/A
N/A
AISC per gold equivalent ounce sold
1,404
1,659
1,960
1,393
N/A
1,663
(15)
Excludes depreciation, depletion, and
amortization.
(16)
Care and maintenance expense only includes
direct costs not associated with environmental reclamation and
remediation costs, as depreciation is not included in the
calculation of AISC.
(17)
Gold equivalent ounces are calculated by
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. Gold equivalent ounces sold may not add based on
amounts presented in this table due to rounding.
The following tables provide a reconciliation of cost of sales
to cash costs and AISC used in the calculation of 2024 cost
guidance for the Marigold, Seabee and Puna operations and corporate
office:
(operating guidance) (18)
Marigold
Seabee
Puna
Corporate
Gold Production
koz
155 – 175
75 – 85
—
—
Silver Production
Moz
—
—
8.75 – 9.50
—
Gold Equivalent Production
koz
155 – 175
75 – 85
110 – 120
—
Gold Sold
koz
155 – 175
75 – 85
—
—
Silver Sold
Moz
—
—
8.75 – 9.50
—
Gold Equivalent Sold
koz
155 – 175
75 – 85
110 – 120
—
Cost of Sales (GAAP) (19)
$M
201 – 235
75 – 85
140 – 162
—
By-Product Credits + Treatment &
Refining Costs
$M
—
—
(45)
—
Cash Cost (non-GAAP) (20)
$M
202 – 235
75 – 85
96 – 117
—
Sustaining Capital Expenditures (21)
$M
37
40
17
—
Reclamation Cost Accretion &
Amortization
$M
3
3
13
—
General & Administrative
$M
—
—
—
60 – 65
All-In Sustaining Cost (non-GAAP) (20)
$M
241 – 274
118 – 128
125 – 147
60 – 65
Cost of Sales per Ounce (GAAP)
(19)
$/oz
1,300 – 1,340
990 – 1,030
16.50 – 18.00
—
Cash Cost per Ounce (non-GAAP)
(20)
$/oz
1,300 – 1,340
990 – 1,030
11.50 – 13.00
—
All-In Sustaining Cost per Ounce
(non-GAAP) (20)
$/oz
1,535 – 1,575
1,495 – 1,535
14.75 – 16.25
—
Growth Capital Expenditures
$M
1
2
—
—
Growth Exploration and Resource
Development Expenditures (22)
$M
9
15
10
4
Total Growth Capital
$M
10
17
10
4
(18)
Figures may not add due to rounding.
(19)
Excludes depreciation, depletion, and
amortization.
(20)
SSR Mining reports the non-GAAP financial
measures of cash costs and AISC per payable ounce of gold and
silver sold to manage and evaluate operating performance at
Marigold, Seabee and Puna. AISC includes reclamation cost accretion
and amortization and certain lease payments.
(21)
Includes sustaining exploration and
evaluation expenditures. Includes approximately $1 million in
expensed sustaining exploration at Marigold and $24 million in
underground mine development at Seabee.
(22)
All growth exploration and resource
development spend is expensed. Growth exploration includes project
studies and evaluation.
Non-GAAP Measure - Adjusted Attributable
Net Income (loss) and Adjusted Attributable Net Income (Loss) Per
Share
Adjusted attributable net income (loss) and adjusted
attributable net income (loss) per share are used by management to
measure the Company's underlying operating performance. We believe
this measure is also useful for shareholders to assess the
Company’s operating performance. The most directly comparable
financial measures prepared in accordance with GAAP are net income
(loss) attributable to SSR Mining shareholders and net income
(loss) per share attributable to SSR Mining shareholders. Adjusted
attributable net income (loss) is defined as net income (loss)
adjusted to exclude the after-tax impact of specific items that are
significant, but not reflective of the Company's underlying
operations, including the expected impacts of �pler Incident;
inflationary impacts on tax balances; transaction, integration; and
other non-recurring items.
The following table provides a reconciliation of Net income
(loss) attributable to SSR Mining shareholders to adjusted net
income (loss) attributable to SSR Mining shareholders:
(in thousands of US dollars, except per
share data)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Net income (loss) attributable to SSR
Mining shareholders (GAAP)
$
9,693
$
74,866
$
(277,389)
$
104,679
Interest saving on convertible notes, net
of tax
$
—
$
1,236
$
—
$
2,456
Net income (loss) used in the calculation
of diluted net income per share
$
9,693
$
76,102
$
(277,389)
$
107,135
Weighted-average shares used in the
calculation of net income (loss) and adjusted net income per
share
Basic
202,133
204,680
202,244
205,723
Diluted
202,407
217,320
202,244
218,347
Net income per share attributable to SSR
Mining shareholders (GAAP)
Basic
$
0.05
$
0.37
$
(1.37)
$
0.51
Diluted
$
0.05
$
0.35
$
(1.37)
$
0.49
Adjustments:
Effects of the �pler Incident (23)
$
—
$
—
$
321,954
$
—
Artmin transaction and integration
costs
$
—
$
377
$
—
$
377
Change in fair value of marketable
securities
$
(3,602)
$
746
$
(6,419)
$
(1,120)
Loss (gain) on sale of mineral properties,
plant and equipment
$
—
$
810
$
—
$
1,050
Income tax impact related to above
adjustments
$
573
$
(109)
$
1,021
$
30
Inflationary impacts on tax balances
$
825
$
(1,587)
$
(9,168)
$
(10,741)
Other tax adjustments (24)
$
—
$
—
$
—
$
2,101
Adjusted net income attributable to SSR
Mining shareholders (Non-GAAP)
$
7,489
$
75,103
$
29,999
$
96,376
Adjusted net income per share attributable
to SSR Mining shareholders (Non-GAAP)
Basic
$
0.04
$
0.37
$
0.15
$
0.47
Diluted (25)
$
0.04
$
0.35
$
0.15
$
0.45
(23)
The effects of the �pler Incident
represent the following unusual and nonrecurring charges: (1)
reclamation costs of $9.0 million and remediation costs of $209.3
million (amounts are presented net of pre-tax attributable to
non-controlling interest of $50.1 million); (2) impairment charges
of $91.4 million related to plans to permanently close the heap
leach pad (amount is presented net of pre-tax attributable to
non-controlling interest of $22.8 million); and (3) contingencies
of $12.3 million (amount is presented net of pre-tax attributable
to non-controlling interest of $3.0 million). Refer to Note 3 to
the Condensed Consolidated Financial Statements for further details
related to the impact of the �pler Incident.
(24)
Represents charges related to a one-time
tax imposed by Türkiye to fund earthquake recovery efforts, offset
by a release of an uncertain tax position.
(25)
Adjusted net income (loss) per diluted
share attributable to SSR Mining shareholders is calculated using
diluted common shares, which are calculated in accordance with
GAAP. For the six months ended June 30, 2024, $1.2 million interest
saving on 2019 Notes, net of tax, and potentially dilutive shares
of approximately 12.9 million were excluded from the computation of
diluted loss per common share attributable to SSR Mining
shareholders in the Condensed Consolidated Statement of Operations
as they were antidilutive. These interest savings and shares were
included in the computation of adjusted net income (loss) per
diluted share attributable to SSR Mining shareholders for the six
months ended June 30, 2024.
Non-GAAP Measure - Free Cash Flow, Cash
Flow from Operating Activities before Changes in Working Capital,
and Free Cash Flow before Changes in Working Capital
The Company uses free cash flow, cash flow from operating
activities before changes in working capital, and free cash flow
before changes in working capital to supplement information in its
condensed consolidated financial statements. The most directly
comparable financial measures prepared in accordance with GAAP is
cash provided by operating activities. The Company believes that in
addition to conventional measures prepared in accordance with US
GAAP, certain investors and analysts use this information to
evaluate the ability of the Company to generate cash flow after
capital investments and build the Company's cash resources. The
Company calculates free cash flow by deducting cash capital
spending from cash generated by operating activities. The Company
does not deduct payments made for business acquisitions.
The following table provides a reconciliation of cash provided
by operating activities to free cash flow:
(in thousands of US dollars, except per
share data)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Cash provided by operating activities
(GAAP)
$
(78,132)
$
80,343
$
(53,501)
$
83,310
Expenditures on mineral properties, plant,
and equipment
$
(38,176)
$
(57,935)
$
(72,211)
$
(117,177)
Free cash flow (non-GAAP)
$
(116,308)
$
22,408
$
(125,712)
$
(33,867)
We also present operating cash flow before working capital
adjustments and free cash flow before working capital adjustments
as non-GAAP cash flow measures to supplement our operating cash
flow and free cash flow (non-GAAP) measures. We believe presenting
both operating cash flow and free cash flow before working capital
adjustments, which reflects an exclusion of net changes in
operating assets and liabilities, will be useful for investors
because it presents cash flow that is actually generated from the
continuing business. The Company calculates cash generated by (used
in) operating activities before changes in working capital by
adjusting cash generated by (used in) operating activities by the
net change in operating assets and liabilities. The Company also
calculates free cash flow before changes in working capital by
deducting cash capital spending from cash flow from operating
activities before changes in working capital.
The following table provides a reconciliation of cash provided
by operating activities to cash generated by (used in) operating
activities before changes in working capital, and free cash flow
before changes in working capital:
(in thousands of US dollars, except per
share data)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Cash generated by (used in) operating
activities (GAAP)
$
(78,132)
$
80,343
$
(53,501)
$
83,310
Net change in operating assets and
liabilities
$
55,039
$
23,922
$
62,665
$
111,824
Cash generated by (used in) operating
activities before changes in working capital (non-GAAP)
$
(23,093)
$
104,265
$
9,164
$
195,134
Expenditures on mineral properties, plant,
and equipment
$
(38,176)
$
(57,935)
$
(72,211)
$
(117,177)
Free cash flow before changes in working
capital (non-GAAP)
$
(61,269)
$
46,330
$
(63,047)
$
77,957
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240730317807/en/
SSR Mining: SSR Mining Inc.
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