VANCOUVER,
Feb. 21, 2019 /PRNewswire/ - SSR Mining
Inc. (NASDAQ: SSRM) (TSX: SSRM) ("SSR Mining") reports consolidated
financial results for the fourth quarter and year ended
December 31, 2018.
Paul Benson, President and
CEO said, "SSR Mining had another successful year in 2018 as we
continued our track record of achieving production and cost
guidance for the seventh consecutive year while transitioning to
commercial production at Chinchillas. We maintained a strong
balance sheet after a year of investment that brought a new mine
into production, delivered reserve growth and included our
strategic investment in SilverCrest Metals.
Looking ahead, 2019 consolidated gold production is
forecast to grow to nearly 400,000 gold equivalent ounces as all
three operations increase output, including our newest mine,
Chinchillas, which is ramping up to steady-state operations. And by
2021, our production profile is expected to grow to 440,000 gold
equivalent ounces, not including the potential upside at Marigold
or success from our brownfield exploration programs. With nearly
$420 million of cash and an outlook
of increasing production and higher margins, we are well positioned
to continue our track record of creating value for
shareholders."
Fourth Quarter and Year-End 2018
Highlights:
(All figures are in U.S. dollars
unless otherwise noted)
- Achieved annual production and cost
guidance: Achieved initial guidance for the
seventh consecutive year by delivering gold equivalent production
of over 345,000 ounces at cash costs of $736 per payable gold equivalent ounce sold.
- Continued our track record of Mineral Reserves
growth: Successful exploration activities in 2018
increased gold Mineral Reserves at the Marigold mine to 3.3 million
ounces and at the Seabee Gold Operation to 608,000 ounces.
- Delivered record annual gold production at
Seabee: The operation achieved its fifth
consecutive annual production record, producing 95,602 ounces of
gold, exceeding the top end of our upwardly revised annual
guidance. Annual cash costs were $505
per payable ounce of gold sold.
- Strong operating performance at Marigold:
Delivered quarterly gold production of 54,306 ounces,
resulting in annual production of 205,161 ounces of gold. Reported
annual cash costs of $723 per payable
ounce of gold sold, at the lower end of our improved guidance.
- Delivered updated Marigold life of mine
plan: Released updated plan on June 18, 2018, outlining a ten-year mine life,
30% growth in production through 2021, and robust economics.
- Declared commercial production at
Chinchillas: The mine achieved commercial
production on December 1, 2018,
marking a major milestone as we reached sustainable ore delivery
from the Chinchillas mine to the Pirquitas plant. In December 2018, the Pirquitas mill operated at
3,605 tpd, processing exclusively Chinchillas ore.
- Investment in high-grade Las Chispas
project: In the fourth quarter we purchased 9.7%
of the issued and outstanding common shares of SilverCrest Metals
Inc. for $23 million. SilverCrest's
Las Chispas project represents exposure to an exciting high-grade
development project with exploration upside in a favourable mining
jurisdiction and compelling near-term development catalysts.
- Balance sheet remains strong: Cash
and marketable securities totaled $449
million at year-end 2018 after project development and
investments for 2019 growth and beyond.
Marigold Mine, U.S.
|
Three months ended
|
Total
|
Operating data
|
December 31,
2018
|
|
September 30,
2018
|
|
June 30,
2018
|
|
March 31,
2018
|
|
2018
|
|
2017
|
Total material mined
(kt)
|
17,039
|
|
21,284
|
|
15,958
|
|
16,150
|
|
70,431
|
|
69,011
|
Waste removed
(kt)
|
11,361
|
|
14,411
|
|
8,083
|
|
9,052
|
|
42,907
|
|
43,422
|
Total ore stacked
(kt)
|
5,679
|
|
6,873
|
|
7,875
|
|
7,099
|
|
27,526
|
|
25,589
|
Strip
ratio
|
2.0
|
|
2.1
|
|
1.0
|
|
1.3
|
|
1.6
|
|
1.7
|
Mining cost ($/t
mined)
|
1.86
|
|
1.51
|
|
1.92
|
|
1.80
|
|
1.76
|
|
1.68
|
Gold stacked grade
(g/t)
|
0.34
|
|
0.32
|
|
0.42
|
|
0.37
|
|
0.37
|
|
0.35
|
Processing cost ($/t
processed)
|
1.27
|
|
1.12
|
|
0.86
|
|
0.93
|
|
1.03
|
|
0.92
|
Gold recovery
(%)
|
72.9
|
|
72.3
|
|
74.4
|
|
73.6
|
|
73.5
|
|
73.0
|
General and admin
cost ($/t
processed)
|
0.51
|
|
0.50
|
|
0.41
|
|
0.42
|
|
0.45
|
|
0.46
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold produced
(oz)
|
54,306
|
|
58,459
|
|
49,436
|
|
42,960
|
|
205,161
|
|
202,240
|
Gold sold
(oz)
|
50,550
|
|
59,612
|
|
46,644
|
|
42,078
|
|
198,884
|
|
200,192
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized gold price
($/oz) (1)
|
1,227
|
|
1,207
|
|
1,304
|
|
1,331
|
|
1,261
|
|
1,254
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash costs ($/oz)
(1)
|
760
|
|
711
|
|
700
|
|
720
|
|
723
|
|
647
|
AISC ($/oz)
(1)
|
995
|
|
965
|
|
981
|
|
954
|
|
974
|
|
896
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial data ($000s)
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
61,861
|
|
71,848
|
|
60,752
|
|
55,880
|
|
250,341
|
|
250,825
|
Income from mine
operations
|
9,977
|
|
13,254
|
|
14,670
|
|
12,312
|
|
50,213
|
|
66,666
|
Capital expenditures
(2)
|
8,328
|
|
25,461
|
|
14,481
|
|
4,665
|
|
52,935
|
|
20,364
|
Capitalized
stripping
|
1,208
|
|
2,529
|
|
850
|
|
2,902
|
|
7,489
|
|
22,863
|
Exploration
expenditures (3)
|
2,096
|
|
2,956
|
|
3,243
|
|
1,914
|
|
10,209
|
|
4,900
|
|
|
(1)
|
We report the non-GAAP financial measures of realized
gold price, cash costs and all-in sustaining costs ("AISC") per
payable ounce of gold sold to manage and evaluate operating
performance at the Marigold mine. See "Cautionary
Note Regarding Non-GAAP Measures"
|
(2)
|
Includes expansion capital expenditure of $22 million
for the twelve months ended December 31, 2018
|
(3)
|
Includes capitalized and expensed exploration
expenditures
|
Mine production
In 2018, the Marigold mine produced 205,161 ounces of
gold, surpassing the upper end of our revised production guidance.
This compares to 202,240 ounces of gold produced in 2017. For the
full-year, gold sales were 198,884 ounces due to bullion inventory
increasing in the fourth quarter relative to the previous quarter,
which we expect to sell in the first quarter of 2019.
Material mined during the year totaled 70.4 million
tonnes, a 2% increase as compared to 2017. The mine achieved
record annual ore tonnes delivered to the leach pads with over 27.5
million tonnes stacked.
During the fourth quarter of 2018, 17.0 million tonnes of
material were mined, down 20% from the third quarter due to
scheduled maintenance on the electric rope shovel and longer haul
cycles. Construction delays deferred the new leach pad
commissioning to the first quarter of 2019 and solution application
commenced in January 2019.
Approximately 5.7 million tonnes of ore were delivered to
the heap leach pads at a gold grade of 0.34 g/t during the fourth
quarter. This compares to 6.9 million tonnes of ore delivered to
the heap leach pads at a gold grade of 0.32 g/t in the third
quarter. Gold grade mined in the fourth quarter was 6% higher
than the third quarter due to mining deeper in the current phase of
the Mackay pit. The strip ratio declined to 2.0:1 in the quarter, a
5% reduction compared to the previous quarter.
In the fourth quarter of 2018, the Marigold mine produced
54,306 ounces of gold, representing a 7% reduction as compared to
the previous quarter.
Mine operating costs
Cash costs and AISC per payable ounce of gold sold are
non-GAAP financial measures. Please see "Cautionary Note Regarding
Non-GAAP Measures".
Cash costs, which include all costs of inventory, refining
costs and royalties, of $760 per
payable ounce of gold sold in the fourth quarter of 2018 were 7%
higher than the previous quarter primarily due to planned lower
grades mined in the second half of the year. Total mining costs of
$1.86 per tonne in the fourth quarter
of 2018 were 23% higher than in the previous quarter due to fewer
tonnes mined. Processing and general and administrative unit costs
were higher in the fourth quarter of 2018 than in the third quarter
of 2018 due to lower tonnes mined and processed. Processing and
general and administrative costs in the current quarter were
comparable on an absolute basis to the preceding quarter while
mining costs declined. Cash costs per payable ounce of gold sold in
2018 were $723, higher than the
$647 per payable ounce of gold sold
in 2017, mainly due to higher leach pad opening inventory unit
costs in 2018 relative to 2017.
AISC in the fourth quarter of 2018 was $995 per payable ounce of gold sold compared to
$965 in the third quarter due to
increased capital spending mostly related to mobile equipment and
construction of a new leach pad. AISC of $974 per payable ounce of gold sold in 2018
increased from $896 in 2017,
primarily due to higher capital investments and exploration
partially offset by lower capitalized stripping.
Mine sales
A total of 50,550 ounces of gold were sold at an average
realized price of $1,227 per ounce
during the fourth quarter of 2018, a decrease of 15% from the
59,612 ounces of gold sold at an average realized price of
$1,207 per ounce during the third
quarter of 2018. In 2018, gold sales decreased marginally and
totaled 198,884 ounces, compared to 200,192 ounces in
2017.
Exploration
Exploration at Marigold in 2018 successfully replaced mine
depletion with growth in Mineral Reserves compared to the end of
2017. Mineral Reserves increased to 3.30 million gold ounces (201.5
million tonnes at an average gold grade of 0.47 g/t), while
Measured and Indicated Mineral Resources (inclusive of Mineral
Reserves) totaled 5.56 million gold ounces (354.5 million tonnes at
an average gold grade of 0.47 g/t).
Drilling activities during the fourth quarter of 2018
targeted infill drilling and upgrade of Mineral Resources at Red
Dot and growth at various phases of the Mackay Pit, with work also
targeting resource addition. This is consistent with our
longer-term objective of completing the necessary infill and
geotechnical drilling to complete pit designs and an economic
evaluation over the entire Red Dot area by mid-year 2019.
During the quarter, we completed 21,260 meters of drilling in 60
reverse circulation ("RC") holes at the Mackay pit and within the
Red Dot area. RC drilling for the year totaled 93,276 meters in 259
RC holes.
Following our exploration news release of November 6, 2018, we have received results from
an additional 33 RC drill holes that targeted Mineral Resource
portions of the Red Dot deposit and its northern extensions. This
contributed, in part, to success in achieving our objective of
converting Mineral Resources to Mineral Reserves.
For 2019, we are planning 60,000 meters of drilling as our
exploration focus returns to resource growth on the prospective
Valmy, East Basalt, and North and
South Red Dot areas.
Seabee Gold Operation, Canada
|
Three months ended
|
Total
|
Operating data
|
December 31,
2018
|
|
September 30,
2018
|
|
June 30,
2018
|
|
March 31,
2018
|
|
2018
|
|
2017
|
Total ore milled
(t)
|
86,447
|
|
88,273
|
|
84,010
|
|
93,269
|
|
351,999
|
|
330,415
|
Ore milled per day
(t/day)
|
940
|
|
959
|
|
923
|
|
1,036
|
|
964
|
|
905
|
Gold mill feed grade
(g/t)
|
10.20
|
|
9.52
|
|
7.95
|
|
8.95
|
|
9.16
|
|
8.25
|
Mining cost ($/t
mined)
|
57
|
|
48
|
|
60
|
|
59
|
|
56
|
|
68
|
Processing cost
($/t
processed)
|
26
|
|
26
|
|
27
|
|
21
|
|
25
|
|
23
|
Gold recovery
(%)
|
97.6
|
|
97.1
|
|
97.3
|
|
97.4
|
|
97.4
|
|
97.4
|
General and admin
cost
($/t
processed)
|
63
|
|
47
|
|
62
|
|
53
|
|
56
|
|
54
|
|
|
|
|
|
|
|
|
|
|
|
|
Gold produced
(oz)
|
20,473
|
|
27,831
|
|
23,582
|
|
23,716
|
|
95,602
|
|
83,998
|
Gold sold (oz)
(1)
|
21,711
|
|
29,175
|
|
20,512
|
|
20,012
|
|
91,410
|
|
86,087
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized gold price
($/oz) (2)
|
1,236
|
|
1,210
|
|
1,306
|
|
1,340
|
|
1,267
|
|
1,259
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash costs ($/oz)
(2)
|
502
|
|
447
|
|
616
|
|
481
|
|
505
|
|
602
|
AISC ($/oz)
(2)
|
743
|
|
596
|
|
854
|
|
896
|
|
755
|
|
843
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial data ($000s)
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
26,890
|
|
35,270
|
|
26,706
|
|
26,789
|
|
115,655
|
|
108,334
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from mine
operations
|
7,347
|
|
11,061
|
|
5,703
|
|
6,672
|
|
30,783
|
|
15,644
|
Capital
expenditures
|
625
|
|
968
|
|
1,035
|
|
4,426
|
|
7,054
|
|
7,190
|
Capitalized
development
|
2,910
|
|
1,812
|
|
2,069
|
|
2,283
|
|
9,074
|
|
8,294
|
Exploration
expenditures (3)
|
1,661
|
|
2,860
|
|
2,745
|
|
2,032
|
|
9,298
|
|
5,959
|
|
|
(1)
|
Beginning with the first quarter of 2018, the holder
of the 3% net smelter return royalty elected to receive its
royalty
in-kind and we will no longer report these ounces within gold
sold
|
(2)
|
We report the non-GAAP financial measures of realized
gold price, cash costs and AISC per payable ounce of gold
sold to manage and evaluate operating performance at the Seabee
Gold Operation. See "Cautionary Note Regarding
Non-GAAP Measures"
|
(3)
|
Includes capitalized and expensed exploration
expenditures
|
Mine production
The Seabee Gold Operation produced 95,602 ounces of gold
in 2018, an annual production record resulting from an improved
milling rate and higher gold grade.
In 2018, the operation milled 351,999 tonnes of ore, 7%
higher than 2017 and another operating record, largely due to our
ongoing Operational Excellence initiatives. During the year,
average gold mill feed grade was 9.16 g/t, 11% higher compared to
the average gold grade milled in 2017. The Santoy mine supplied 93%
of ore milled, predominantly from long hole stopes; the remaining
ore was sourced from the Seabee mine, which was closed in the
second quarter of 2018.
In the fourth quarter of 2018, the operation produced
20,473 ounces of gold, a 26% decrease primarily due to gold ounces
contained in-circuit at year-end 2018 due to timing of gold
pours.
During the fourth quarter, 86,447 tonnes of ore were
milled at an average gold grade of 10.20 g/t and recovery of 97.6%.
This compares to 88,273 tonnes of ore milled at an average gold
grade of 9.52 g/t and recovery of 97.1% in the third quarter of
2018.
Mine operating costs
Cash costs and AISC per payable ounce of gold sold are
non-GAAP financial measures. Please see "Cautionary Note Regarding
Non-GAAP Measures".
Cash costs per payable ounce of gold sold, which include
all costs of inventory, and refining costs were $502 in the fourth quarter of 2018,
higher than the $447 recorded in the
third quarter of 2018. Higher cash costs were due to higher
unit mining and general and administrative costs and lower
production. Costs per tonne mined were $57 in the fourth quarter of 2018, 19% higher
than in the previous quarter due to lower tonnes mined. Processing
costs per tonne remained comparable to the prior quarter, while
general and administrative unit costs increased by 34% in the
fourth quarter of 2018 compared to the third quarter of 2018, due
to adjustments to payroll accruals between the two quarters and
lower tonnes milled. Cash costs per payable ounce of gold
sold in 2018 were $505, lower than
the $602 per payable ounce sold in
2017 due to lower unit mining costs and higher gold mill feed
grade.
AISC per payable ounce of gold sold were $743 in the fourth quarter of 2018, compared to
$596 in the third quarter, due to
higher cash costs and higher per ounce underground capital
development in conjunction with lower ounces sold. In 2018, AISC
per payable ounce of gold sold decreased to $755 from $843 in
2017, mainly due to lower cash costs per payable ounce of gold
sold.
Mine sales
A total of 21,711 ounces of gold were sold at an average
realized price of $1,236 per ounce of
gold during the fourth quarter of 2018. This compares to 29,175
ounces of gold sold in the third quarter of 2018 at an average
realized price of $1,210 per ounce of
gold. Gold sales totaled 91,410 ounces in 2018 compared to 86,087
ounces in 2017. Realized prices were marginally higher in 2018 than
in 2017.
Exploration
At the Seabee Gold Operation, our 2018 objectives were to
maximize Mineral Resource to Mineral Reserve conversion on the
Santoy 8, and Santoy Gap zones. We were successful with those
objectives, as 2018 Mineral Reserves increased 39% after depletion
to 608,000 gold ounces (Proven Mineral Reserves were 94,500 ounces
(0.33 million tonnes at an average gold grade of 9.00 g/t) and
Probable Mineral Reserves were 513,500 ounces (1.73 million tonnes
at an average gold grade of 9.24 g/t)). Measured and
Indicated Mineral Resources (inclusive of Mineral Reserves) at 2018
year-end are 26% higher at 856,000 gold ounces (Measured Mineral
Resources were 170,000 ounces (0.45 million tonnes at an average
gold grade of 11.7 g/t) and Indicated Mineral Resources were
686,000 ounces (1.85 million tonnes at an average gold grade of
11.56 g/t)). Inferred Mineral Resources for 2018 are 482,000
gold ounces (1.70 million tonnes at an average gold grade of 8.82
g/t), reflecting our focus on conversion activities during the
year.
During the fourth quarter of 2018, Seabee Gold Operation
completed 15,453 meters of underground drilling for a total of
52,500 meters for the year to infill the Santoy 8A and Santoy Gap
deposits. From surface, in the immediate vicinity of the Santoy
mine, we completed 6,168 meters of drilling in the fourth quarter
for a total of 24,389 meters of drilling for the year
exploring at the Santoy Gap targets. Discovery and
exploration of the Santoy Gap hanging wall ("HW") resulted in an
initial Inferred Mineral Resource being reported in this
mineralized structure sitting adjacent to the Santoy main ore
zones. Greenfields drilling during the fourth quarter of 2018
totaled 3,552 meters with activities on the adjacent Fisher
property, currently under option from Taiga Gold Corp.
For 2019, we are planning to drill 68,000 meters in the
area of the Santoy mine, with another 16,000 meters of drilling on
greenfields targets on property owned or optioned by us.
Puna Operations, Argentina (75%
interest)
(amounts presented on a 100%
basis)
|
Three months ended
|
Total
|
Operating data
|
December 31,
2018
|
|
September
30,
2018
|
|
June 30,
2018
|
|
March 31,
2018
|
|
2018
|
|
2017
|
Total material mined
(kt) (1)
|
897
|
|
—
|
|
—
|
|
—
|
|
897
|
|
—
|
Waste removed (kt)
(1)
|
696
|
|
—
|
|
—
|
|
—
|
|
696
|
|
—
|
Strip ratio
(1)
|
3.5
|
|
—
|
|
—
|
|
—
|
|
3.5
|
|
—
|
Mining cost ($/t
mined) (1)
|
2.61
|
|
—
|
|
—
|
|
—
|
|
2.61
|
|
—
|
Ore milled
(kt)
|
342
|
|
308
|
|
396
|
|
374
|
|
1,420
|
|
1,798
|
Silver mill feed
grade (g/t)
|
133
|
|
96
|
|
110
|
|
115
|
|
114
|
|
152
|
Zinc mill feed grade
(%)
|
1.14
|
|
1.25
|
|
0.71
|
|
—
|
|
0.84
|
|
—
|
Lead mill feed grade
(%) (1)
|
0.92
|
|
—
|
|
—
|
|
—
|
|
0.92
|
|
—
|
Processing cost ($/t
milled)
|
22.18
|
|
20.87
|
|
17.26
|
|
15.34
|
|
18.72
|
|
13.00
|
Silver recovery
(%)
|
81.5
|
|
69.9
|
|
68.1
|
|
67.7
|
|
72.1
|
|
70.3
|
Zinc recovery
(%)
|
49.5
|
|
38.1
|
|
31.5
|
|
—
|
|
39.3
|
|
—
|
Lead recovery (%)
(1)
|
83.1
|
|
—
|
|
—
|
|
—
|
|
83.1
|
|
—
|
General and admin
cost ($/t milled)
|
8.16
|
|
7.98
|
|
7.07
|
|
6.33
|
|
7.34
|
|
5.19
|
|
|
|
|
|
|
|
|
|
|
|
|
Silver produced ('000
oz)
|
1,189
|
|
666
|
|
954
|
|
938
|
|
3,747
|
|
6,177
|
Silver sold ('000
oz)
|
932
|
|
623
|
|
1,142
|
|
1,064
|
|
3,761
|
|
5,994
|
|
|
|
|
|
|
|
|
|
|
|
|
Zinc produced ('000
lb) (2)
|
4,014
|
|
3,241
|
|
1,520
|
|
—
|
|
8,775
|
|
—
|
Zinc sold ('000 lb)
(2)
|
1,983
|
|
382
|
|
—
|
|
—
|
|
2,365
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Lead produced ('000
lb) (3)
|
2,735
|
|
372
|
|
—
|
|
—
|
|
3,107
|
|
—
|
Lead sold ('000 lb)
(3)
|
1,059
|
|
—
|
|
—
|
|
—
|
|
1,059
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Realized silver price
($/oz) (4)
|
14.42
|
|
15.45
|
|
16.49
|
|
16.79
|
|
15.92
|
|
17.10
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash costs ($/oz)
(4, 5)
|
15.02
|
|
17.41
|
|
14.73
|
|
17.07
|
|
15.91
|
|
13.07
|
AISC ($/oz) (4,
5)
|
20.45
|
|
22.39
|
|
17.66
|
|
18.37
|
|
19.33
|
|
14.30
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Data ($000s)
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
14,961
|
|
7,915
|
|
16,570
|
|
15,233
|
|
54,679
|
|
89,614
|
Income from mine
operations
|
(788)
|
|
(2,440)
|
|
830
|
|
(1,753)
|
|
(4,151)
|
|
30,953
|
Capital
expenditures
|
3,849
|
|
2,390
|
|
2,652
|
|
789
|
|
9,680
|
|
4,604
|
Deferred
stripping
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
Exploration
expenditures (6)
|
21
|
|
6
|
|
429
|
|
6
|
|
462
|
|
—
|
|
|
(1)
|
Data is for the period subsequent to December 1,
2018, the date upon which commercial production was declared at
the Chinchillas mine.
|
(2)
|
Data for zinc production and sales relate only to
zinc in zinc concentrate.
|
(3)
|
Data for lead production and sales relate only to
lead in lead concentrate.
|
(4)
|
We report the non-GAAP financial measures of realized
metal prices, cash costs and AISC per payable ounce of
precious metal sold to manage and evaluate operating performance at
Puna Operations. See "Cautionary Note
Regarding Non-GAAP Measures".
|
(5)
|
Cash costs and AISC per payable ounce of silver sold
include stockpile inventory costs previously incurred of $5.30
for the three months ended December 31, 2017 (September 31, 2017 -
$5.20, June 30, 2017 - $3.30, March 31, 2017
- $2.00) and $3.90 for the year ended December 31,
2017.
|
(6)
|
Includes capitalized and expensed exploration
expenditures.
|
Mine production
In 2018, Puna Operations, of which we hold 75% interest,
produced a total of 3.7 million ounces of silver, 8.8 million
pounds of zinc and 3.1 million pounds of lead. On an
attributable basis, silver production in 2018 totaled 2.8 million
ounces.
During the year, ore was milled at an average of 3,890
tonnes per day. Ore milled contained an average silver grade of 114
g/t. The average silver recovery was 72.1%, a 3% improvement as
compared to 2017.
In the fourth quarter of 2018, silver production was 1.2
million ounces, an increase of 79% relative to the third quarter,
due mainly to the increased tonnage of higher-grade Chinchillas ore
milled. On an attributable basis, silver production for the
quarter totaled 0.9 million ounces.
Subsequent to the declaration of commercial production at
Chinchillas, material mined in December
2018 totaled 897,000 tonnes, including 201,000 tonnes of
ore.
During the fourth quarter of 2018, ore was milled at an
average of 3,720 tonnes per day. In December ore was sourced
exclusively from Chinchillas and achieved a 3,605 tonnes per day
milling rate. Processed ore in the fourth quarter contained an
average silver grade of 133 g/t, a 38% increase as compared to the
third quarter of 2018, due to processing of high grade Chinchillas
ore in December. The average silver recovery in the fourth quarter
was 81.5%, a 17% increase over the third quarter.
Mine operating costs
Cash costs and AISC per payable ounce of silver sold
are non-GAAP financial measures. Please see "Cautionary Note
Regarding Non-GAAP Measures".
Cash costs, which include cost of inventory, treatment and
refining costs, provincial royalties, export duties and by-product
credits, were $15.02 per payable
ounce of silver sold in the fourth quarter of 2018, a decrease from
$17.41 per payable ounce of silver
sold in the third quarter of 2018. Such decrease was primarily due
to higher production resulting from higher silver grade of ore
processed and recognition of by-product credits.
Cash costs per payable ounce of silver sold in 2018
increased to $15.91 from $13.07 in 2017. Until commercial production
was declared at Chinchillas on December 1,
2018, Puna Operations processed sequentially lower grade
stockpile ore since the closure of the Pirquitas open pit in
January 2017.
AISC per payable ounce of silver sold in the fourth
quarter of 2018 were at $20.45
compared to $22.39 in the third
quarter due to lower cash costs and higher volumes sold. AISC of
$19.33 per payable ounce of silver
sold in 2018 were higher than $14.30
per payable ounce of silver sold in 2017 due to higher cash costs
and higher capital investments per ounce sold.
Mine sales
Silver sales totaled 0.9 million ounces and attributable
sales were 0.7 million in the fourth quarter of 2018, a 49%
increase from the third quarter of 2018, due to higher production
in the fourth quarter of 2018. Silver sales for the year totaled
3.8 million ounces and attributable share of silver sales in 2018
was 2.8 million ounces. This compares to 6.0 million ounces of
silver sold in 2017.
Exploration
At Puna Operations, exploration activities were limited to
the collection of detailed drone magnetic data at Chinchillas and
the Pirquitas mine areas.
In 2018, we evaluated the potential for an underground
mine at the Pirquitas deposit to provide supplemental ore to the
Pirquitas mill. The study confirmed a technically feasible and
economic project, however with a return below our investment
thresholds at current metal prices. We have budgeted $1 million in 2019 for a 3,000-meter drill
program to test for extensions to the mineralization that could
have a positive impact on the project economics.
Chinchillas Project, Argentina
During the fourth quarter, pre-stripping activities at the
Chinchillas project were completed, ore haulage met required
tonnages and commercial production was declared on December 1, 2018. Ore feed to the Pirquitas plant
has been sourced from the Chinchillas mine since that date.
Metallurgical recovery performance of the Chinchillas ore has met
or exceeded design.
Construction of the in-pit tailings pumping and delivery
system is complete, the slurry pumps have been pre-commissioned,
and the tailings pipeline hydraulic test finished. The water
reclaim pipeline has been hydrostatically tested and the pumps
installed in the barges. The power line to the pumps is finished
and in service. Pre-commissioning and commissioning of the
tailings system is in process.
The Chinchillas truck shop structure is nearing completion
with the installation of the main structural steel, cladding and
internal offices. Electrical installation continues and the bridge
crane is scheduled for installation in February. Two truck bays are
being temporarily used in operations, while the finishing equipping
of the facility is in progress.
Certain infrastructure and remaining road upgrades within
the scope of the project will continue into the first quarter of
2019 with remaining capital expenditures totaling $9 million. The project remains on
budget.
Other Projects
Pitarrilla Project, Mexico
In 2018, we advanced a study evaluating the potential for
an underground mine at the Pitarrilla project. The study confirmed
a technically feasible and economic project; however, with a return
below our investment thresholds at current metal prices. We are
conducting a review of the geological model evaluating structural
controls that may define higher grade areas that were potentially
underestimated in the model originally developed for open pit
purposes.
Outlook
This section of the news release provides management's
production, cost, capital, exploration and development expenditure
estimates for 2019. See "Cautionary Note Regarding Forward-Looking
Statements."
For the full year 2019, we expect:
Operating Guidance
|
|
Marigold mine
|
|
Seabee Gold
Operation
|
|
Puna Operations
(75% interest)(4)
|
Gold
Production
|
oz
|
200,000 -
220,000
|
|
95,000 -
110,000
|
|
—
|
Silver
Production
(Attributable)
|
Moz
|
—
|
|
—
|
|
6.0 - 7.0
(4.5 - 5.3)
|
Lead
Production
(Attributable)
|
Mlb
|
—
|
|
—
|
|
20.0 -
26.0 (15.0 - 19.5)
|
Zinc
Production
(Attributable)
|
Mlb
|
—
|
|
—
|
|
15.0 -
20.0 (11.3 - 15.0)
|
Cash Costs per
Payable Ounce Sold (1)
|
$/oz
|
750 - 790
|
|
525 - 555
|
|
8.00 -
10.00
|
Sustaining Capital
Expenditures (2)
|
$M
|
35
|
|
25
|
|
12
|
Capitalized Stripping
/ Capitalized
Development
|
$M
|
20
|
|
12
|
|
20
|
Exploration
Expenditures (3)
|
$M
|
7.5
|
|
6
|
|
1
|
|
|
(1)
|
We report the non-GAAP financial measure of cash
costs per payable ounce of gold and silver sold to manage and
evaluate operating performance at the Marigold mine, the Seabee
Gold Operation and Puna Operations. See
"Cautionary Note Regarding Non-GAAP Measures"
|
(2)
|
Sustaining capital expenditures for Puna Operations
exclude initial capital expenditures related to the development
of
the Chinchillas project
|
(3)
|
Includes capitalized and expensed exploration
expenditures
|
(4)
|
Shown on a 100% basis unless otherwise indicated by
"attributable" which is shown on a 75% basis
|
Based on the mid-points of guidance, on a consolidated
basis we expect to produce 395,000 gold equivalent ounces in 2019
at gold equivalent cash costs of $700
per ounce. On an attributable basis we expect to produce 375,000
gold equivalent ounces in 2019 at gold equivalent cash costs of
$700 per ounce based on the
mid-points of guidance.
At the Marigold mine, gold production is expected to
increase in 2019 with the full-year benefits from the four haul
trucks added to the fleet in mid-2018 and production from the new
leach pad beginning in the first quarter of 2019. Due to the
ongoing positive operating performance and optimization of pit
designs, cash costs guidance of between $750 and $790 per
payable gold ounce sold is an improvement to the forecast from the
2018 Technical Report. Capital investments are expected to total
$35 million in 2019, including
$22 million in the mine for
maintenance and purchase of mobile fleet as well as $10 million for accelerated leach pad
construction and process infrastructure. To accommodate the higher
ore tonnes mined and to provide additional operating flexibility
regarding leach cycles, construction of a leach pad is expected to
be accelerated to the second half of 2019 from 2020. Capitalized
stripping is expected to total $20
million with the majority incurred through the first three
quarters of the year. Exploration expenditures totaling
$7.5 million re-focuses to Mackay,
Valmy and Basalt with the goals of
adding Mineral Reserves and defining additional Mineral Resources
within these areas. Having completed the Red Dot exploration
program in 2018, we intend to complete geotechnical drilling and
engineering of the remaining Red Dot Mineral Resources with the
objective of evaluating the potential for additional Red Dot
Mineral Reserves by mid-2019.
At the Seabee Gold Operation, we expect to continue
executing our plan of increasing mining and milling rates and to
deliver another record gold production year in 2019. The plan
includes investment of $7 million in
underground mining equipment to increase capacity and reliability.
With higher tonnes mined and demonstrated milling infrastructure
capacity, cash costs are expected to remain low at between
$525 and $555 per payable gold ounce sold. Due to
continued exploration success at Seabee, we are embarking on an
expansion to tailings capacity in excess of that contemplated in
the 2017 Technical Report. The first phase is expected to be
completed in 2019 at an investment of $15
million, with the remaining sustaining capital investments
related to the mill and surface infrastructure. Capitalized
development expenditures of $12
million support higher mining rates and reflect the
development strategy for the Santoy complex. Exploration
expenditures at Seabee total $6
million to continue underground exploration at depth,
expansion of Santoy Gap HW and continued testing of surface
targets.
At Puna Operations, with commercial production of the
Chinchillas open pit achieved, 2019
marks the first anticipated full year of ore production from
the Chinchillas mine transported for processing at the Pirquitas
mill. Puna is expected to produce between 6.0 and 7.0 million
ounces of silver at cash costs of between $8.00 and $10.00
per payable silver ounce sold. Reported cash costs may vary quarter
to quarter due to the by-product credits arising from the
production of lead and zinc as such credits vary based on the
timing of sales of each concentrate. Capital investments at Puna of
$12 million include $5 million for mine equipment maintenance, and
$5 million for plant equipment
maintenance. Capitalized stripping is elevated through 2019 as the
mine completes the highwall pushback and commences stripping the
next phase of the Chinchillas pit. As Chinchillas operations
ramp-up through 2019, only waste material will be mined over
certain periods of the year with ore stockpiled during the
pre-production phase transported to and processed at the Pirquitas
mill.
With Puna focused on optimization of the mine, transport
and mill operations through 2019, limited exploration expenditures
of $1 million are planned in the
second half of the year.
As previously announced, the completion of certain
Chinchillas project infrastructure carries over into 2019, with the
remaining investment of approximately $9
million expected to be incurred in the first quarter. The
project remains on budget.
In addition to exploration at our three operating mines,
we expect to invest $3 million in
exploration on the Fisher project adjacent to our Seabee Gold
Operation. Community, development and holding costs related to
non-operating properties total approximately $5 million.
Gold equivalent figures for our 2019 operating guidance
are based on gold-to-silver ratio of 81:1. Cash costs and capital
expenditures guidance is based on an oil price of $65 per barrel and exchange rate of 1.25 Canadian dollar to U.S. dollar.
Consolidated Financial
Summary
(presented in thousands of U.S.,
dollars, except for per share value)
Selected Financial
Data(1)
|
|
|
Three Months
Ended December 31
|
Year
Ended December 31
|
|
2018
|
2017
|
2018
|
2017
|
|
$
|
$
|
$
|
$
|
Revenue
|
103,712
|
107,881
|
420,675
|
448,773
|
Income from mine
operations (1)
|
16,536
|
21,190
|
76,845
|
113,263
|
Gross
margin
|
16%
|
20%
|
18%
|
25%
|
Operating income
(1)
|
3,061
|
19,937
|
29,895
|
101,332
|
Net (loss)
income
|
(2,544)
|
16,850
|
(31)
|
71,466
|
Basic attributable
(loss) income per share
|
(0.03)
|
0.14
|
0.05
|
0.58
|
Adjusted attributable
income before tax (1)
|
(345)
|
3,542
|
28,586
|
46,281
|
Adjusted attributable
net income (1)
|
4,369
|
2,862
|
27,961
|
40,074
|
Adjusted basic
attributable income per share (1)
|
0.04
|
0.02
|
0.23
|
0.34
|
Cash (used in)
generated by operating activities
|
(3,744)
|
45,175
|
59,769
|
144,725
|
Cash used in
investing activities
|
(63,028)
|
(9,633)
|
(115,930)
|
(15,494)
|
Cash generated by
financing activities
|
11,903
|
1,942
|
20,516
|
4,601
|
|
|
|
|
|
|
Financial Position
|
December 31, 2018
|
December 31, 2017
|
Cash and cash
equivalents
|
|
419,212
|
|
459,864
|
Marketable
securities
|
|
29,542
|
|
114,001
|
Current
assets
|
|
733,119
|
|
799,597
|
Current
liabilities
|
|
83,254
|
|
71,466
|
Working capital
(1)
|
|
649,865
|
|
728,131
|
Total
assets
|
|
1,521,138
|
|
1,537,454
|
|
|
(1)
|
We report non-GAAP financial measures including
income from mine operations, operating income, adjusted
attributable
income before tax, adjusted attributable net income, adjusted basic
attributable income per share, to
manage and evaluate our operating performance. Please see
"Cautionary Note Regarding Non-GAAP
Measures".
|
Quarterly financial summary
Revenue in the fourth quarter of 2018 decreased by 4%
relative to the comparative quarter in 2017, due principally to
lower gold and silver prices. Gold production was similar to the
comparative quarter but gold sales were approximately 3,000 ounces
lower due to timing of shipments. Silver production was also
similar to the comparative quarter as commercial production was
reached at the Chinchillas mine on December
1, 2018 providing a strong finish to the quarter as the
Pirquitas plant transitioned to solely Chinchillas ore. Silver
sales increased marginally relative to the comparative quarter but
the increase did not offset the factors discussed above. Sales of
lead and zinc commenced in the quarter with the resumption of base
metal production from Pirquitas and Chinchillas ores, but sales
were well below production due to timeframes required to ramp up
international concentrate sales.
Income from mine operations in the fourth quarter of 2018
generated a gross margin of 16%, lower than the 20% gross margin
generated in the fourth quarter of 2017, mainly due to lower
realized metal prices impacting margins at the Marigold mine and
Puna Operations. Relative to the comparative prior year quarter,
the Seabee Gold Operation generated higher income from mine
operations as lower cost and depreciation more than offset lower
realized prices.
In the fourth quarter of 2018, we incurred a net loss of
$2.5 million, compared to net income
of $16.9 million in the fourth
quarter of 2017. In addition to the lower metal prices and finished
goods inventory build of gold and concentrates discussed above, we
recognized a share-based compensation and payroll expense of
$8.3 million principally resulting
from stronger relative and absolute share price performance over
the quarter. We also recognized an expense of $2.8 million related to the premium paid over the
prevailing market price for purchase of the shares of SilverCrest
Metals Inc. ("SilverCrest"). The subsequent increase in value of
SilverCrest shares of $4.3 million
was recognized in other comprehensive income. During the quarter, a
foreign exchange loss was recognized as the Argentine peso
stabilized and strengthened relative to the end of the third
quarter. Net income in the fourth quarter of 2017 benefited from a
tax recovery of $5
million.
Cash used in operating activities was $3.7 million in the fourth quarter of 2018
compared to $45.2 million generated
in the fourth quarter of 2017. Lower metal prices combined with
lower gold sales at higher unit costs more than offset higher
silver sales at lower unit costs at Puna Operations. Operating
activities were impacted by a $22.3
million increase in non-cash working capital due to a
combination of increased gold and concentrate finished goods
inventories, inventory in circuit at Seabee Gold Operation,
Chinchillas ore stockpiles at Puna Operations and a reduction in
trade payables at year-end, particularly related to the Chinchillas
project. We used $63.0 million in
investing activities in the fourth quarter of 2018. We invested
$23.1 million in the SilverCrest
share purchase, $10.6 million in
property, plant and equipment, and $18.9
million in the Chinchillas project and loaned $8 million to our joint venture
partner. This compared to $9.6
million of cash used for investing activities in the fourth
quarter of 2017 as the quarter benefited from $63.4 million of Pretium share sale proceeds. We
received $8.8 million from our joint
venture partner for its share of the development costs of the
Chinchillas project.
Annual financial summary
The 6% decrease in revenue for the year of 2018 compared
to the year of 2017 was due to an 8% decrease in equivalent payable
gold ounces sold somewhat offset by a higher average realized gold
price. The decrease was more than offset by lower silver
ounces sold from Puna Operations, as lower grade ore stockpiles
were processed through the development of the Chinchillas
project.
Income from mine operations in 2018 generated a gross
margin of 18%, lower than the 25% in 2017. Higher sales of
gold at lower cost of sales at the Seabee Gold Operation was more
than offset by lower sales of silver at Puna Operations and higher
cost of sales at the Marigold mine. In the year ended
December 31, 2017, the release of a supplies inventory
provision at Puna Operations and the resolution of our export duty
claim in Argentina resulted in a
$10.5 million reduction to cost of
sales, increasing the 2017 reported gross margin.
Our strong relative and absolute share price performance
resulted in a $9.1 million higher
share-based payment expense in 2018 relative to 2017 being
recognized through general and administrative expense. We
incurred a $2.8 million expense
related to the premium paid over the prevailing market price on
recording the investment in SilverCrest shares. The
subsequent increase in value of SilverCrest shares of $4.3 million was recognized in other
comprehensive income. We reported an elevated effective tax
rate due to a $4.7 million tax
expense related to the Argentine re-organization recorded in the
second quarter of 2018. As a result, a small net loss was
reported in 2018. Net income for 2017 benefitted by an
impairment reversal of the Pirquitas plant of $24.4 million resulting from its life extension
following the formation of Puna Operations.
Cash generated from operating activities was $59.8 million in 2018, compared to $144.7 million in 2017. Higher sales and
lower unit costs at the Seabee Gold Operation were more than offset
by lower sales combined with higher unit costs both at Puna
Operations and the Marigold mine. Non-cash working capital of
$36 million was incurred as finished
goods and ore inventories were built across all operations and
particularly related to the development and ramp up at
Chinchillas. We used $115.9
million in investing activities in the year ended
December 31, 2018, compared to $15.5
million used in the comparative period of 2017. In
2018, we received $63.4 million from
the sales of our remaining common shares of Pretium Resources Inc.
("Pretium") while investments in our business included $67.7 million in property, plant and equipment,
$60.2 million in the Chinchillas
project, $23.1 million in SilverCrest
share purchase and loaned $8.0
million to our joint venture partner. We received
$15.2 million from our joint venture
partner for its share of the development and operating costs of the
Chinchillas project.
Corporate Summary
SSR Mining has an experienced management team of
mine-builders and operators with proven capabilities. We have a
strong balance sheet with $419.2
million in cash and cash equivalents as at December 31, 2018. We are committed to delivering
safe production through relentless emphasis on Operational
Excellence. We are also focused on growing production and Mineral
Reserves through the exploration and acquisition of assets for
accretive growth, while maintaining financial strength.
On January 1, 2018, we
appointed Ms. Elizabeth A. Wademan
and Mr. Simon A. Fish, to our Board
of Directors with the objective to strengthen the Board's expertise
in the areas of international capital markets and legal and
corporate governance.
On May 3, 2018, we announced
the appointment of Kevin O'Kane as
Chief Operating Officer effective June 4,
2018, replacing Alan
Pangbourne who retired at the end of May 2018.
On June 18, 2018, we
released an updated life of mine plan for the Marigold mine in
Nevada, U.S., which outlined an
anticipated mine-life of over ten-years based on Mineral Reserves
and an after-tax net present value of $552
million. We filed a technical report titled "NI 43-101
Technical Report on the Marigold Mine, Humboldt County, Nevada USA" dated
July 31, 2018 (the "Marigold
Technical Report") in support of the updated life of mine plan,
which is available on SEDAR at www.sedar.com, the EDGAR section of
the SEC website at www.sec.gov and on our website.
As of June 30, 2018, we sold
our remaining position of 9.0 million Pretium common shares for
pre-tax cash proceeds of approximately $63.4
million and no longer hold any Pretium shares.
On December 1, 2018, we
declared commercial production at Puna Operations' Chinchillas
mine. Development of the mine, located approximately 45
kilometers from the Pirquitas plant, commenced in early 2018 and
extends the life of the Pirquitas plant through mining of ore at
Chinchillas, transporting the ore to Pirquitas and processing it
through the existing Pirquitas plant.
On December 10, 2018, we
completed a transaction with SilverCrest which owns the Las Chispas
project, a high-grade development project in Mexico, to purchase, by way of private
placement, a 9.7% ownership interest representing, 8,220,645 common
shares of SilverCrest at a price of C$3.73 per common share for total consideration
of C$30.7 million.
In 2018, we achieved our initial guidance for the seventh
consecutive year by delivering gold equivalent production of over
345,000 ounces at cash costs of $736
and AISC of $1,087 per payable gold
equivalent ounce sold.
Successful exploration activities in 2018 increased gold
Mineral Reserves at the Marigold mine by 110,000 ounces to 3.3
million ounces and at the Seabee Gold Operation by 39% to 608,000
ounces.
Mineral Reserves and Mineral Resources
At December 31, 2018, our
total estimated Proven and Probable gold Mineral Reserves were 3.91
million ounces and total estimated silver Proven and Probable
Mineral Reserves were 38.7 million ounces. Mineral Reserves
estimates for the Marigold mine, the Seabee Gold Operation and Puna
Operations have been determined based on prices of $1,250 per ounce of gold and $18.00 per ounce of silver. These prices are
unchanged from those used to determine the Mineral Reserves
estimate at December 31, 2017,
reflecting market conditions and consensus long-term metal prices.
All Mineral Resources and Mineral Reserves estimates are reported
on a 100% basis, except for Puna Operations. Mineral Resources and
Mineral Reserves estimates of silver ounces for Puna Operations are
reported on a 75% attributable basis.
At Marigold, our 2018 exploration program led to an
increase in Mineral Reserves. Probable Mineral Reserves increased
to 3.3 million ounces of gold (201.5 million tonnes at
an average gold grade of 0.47 g/t), after accounting
for mining depletion and minor modeling reductions, while gold
grade increased to 0.47 g/t. The increase in Probable Mineral
Reserves is attributable to our successful infill and exploration
drilling programs, which converted Mineral Resources at a portion
of Red Dot and Mackay, collectively adding 460,000 gold ounces to
Mineral Reserves. We added 350,000 ounces of gold Mineral Reserves
at Red Dot, which we refer to as Red Dot Phase 1. Depletion of
Mineral Reserves due to 2018 gold production totaled 320,000
ounces. Indicated Mineral Resources (inclusive of Mineral Reserves)
totaled 5.56 million ounces of gold (354.5 million tonnes at an
average gold grade of 0.47 g/t) after accounting for mining
depletion and mine plan optimization, offset by our successful
exploration program. Inferred Mineral Resources declined to 400,000
ounces of gold (33.6 million tonnes at an average gold grade of
0.37 g/t) due to conversion of Mineral Reserves and Mineral
Resources in certain areas, particularly Red Dot. In addition, for
further information regarding our Mineral Reserves and Mineral
Resources estimate at Marigold, please see the Marigold Technical
Report.
At the Seabee Gold Operation, Proven and Probable Mineral
Reserves total 608,000 ounces of gold (Proven Mineral Reserves were
94,500 ounces (0.33 million tonnes at an average gold grade of 9.00
g/t) and Probable Mineral Reserves were 513,500 ounces (1.73
million tonnes at an average gold grade of 9.24 g/t)), a 39%
increase compared to year-end 2017 as a result of conversion at
Santoy 8. Proven and Probable Mineral Reserves increases are due to
conversion of 191,000 gold ounces at Santoy 8 and 92,000 gold
ounces at Santoy Gap. Measured and Indicated Mineral Resources
(inclusive of Mineral Reserves) total 856,000 gold ounces (Measured
Mineral Resources were 170,000 ounces (0.45 million tonnes at an
average gold grade of 11.76 g/t) and Indicated Mineral Resources
were 686,000 ounces (1.85 million tonnes at an average gold grade
of 11.56 g/t)) at year-end 2018, reflecting an increase of
207,000 gold ounces at Santoy 8 and 17,000 gold ounces at Santoy
Gap. As at December 31, 2018,
Inferred Mineral Resources total 482,000 gold ounces (1.70 million
tonnes at an average gold grade of 8.82 g/t), inclusive of our
inaugural Inferred Mineral Resource estimate at Santoy Gap HW and
reflecting a focus on Mineral Resources Conversion in 2018. In
addition, for further information regarding our Mineral Reserves
and Mineral Resources estimate at the Seabee Gold Operation, please
see the technical report entitled "NI 43-101 Technical Report for
the Seabee Gold Operation, Saskatchewan,
Canada" dated October 20, 2017
("Seabee Gold Operation Technical Report").
At Puna Operations, Proven and Probable Mineral Reserves
decreased to 38.7 million ounces of silver (Proven Mineral Reserves
were 4.5 million ounces (0.94 million tonnes at an average silver
grade of 196 g/t) and Probable Mineral Reserves were 34.3 million
ounces (9.38 million tonnes at an average silver grade of 152 g/t))
due to depletion at the Chinchillas mine, processing Pirquitas
stockpiles and modeling adjustments. Measured and Indicated Mineral
Resources (inclusive of Mineral Reserves) total 89.0 million ounces
of silver (Measured Mineral Resources were 6.6 million ounces (2.11
million tonnes at an average silver grade of 130 g/t) and
Indicated Mineral Resources were 82.4 million ounces (29.51 million
tonnes at an average silver grade of 116 g/t)) within the open pit,
underground and stockpile inventory at both Chinchillas and
Pirquitas. Inferred Mineral Resources are estimated to total 31.1
million ounces of silver (22.37 million tonnes at an average silver
grade of 58 g/t) at December 31,
2018. In addition, for further information regarding our
Mineral Reserves and Mineral Resources estimate at Puna Operations,
please see the technical report entitled "NI 43-101 Technical
Report Pre-feasibility Study of the Chinchillas Silver-Lead-Zinc
Project, Jujuy Province, Argentina" dated May
15, 2017 (the "Chinchillas Technical Report").
Details on Mineral Reserves and Mineral Resources by mine
including tonnes, grades, ounces and notes, are presented
below.
Mineral Reserves and Resources
(As of
December 31, 2018)
|
|
|
|
|
|
|
|
SSRM
Interest
|
SSRM
Interest
|
|
Location
|
Tonnes
|
Silver
|
Gold
|
Lead
|
Zinc
|
SSRM
|
Silver
|
Gold
|
|
|
millions
|
g/t
|
g/t
|
%
|
%
|
%
Interest
|
million
oz
|
million
oz
|
|
MINERAL RESERVES:
|
|
Proven Mineral Reserves
|
Seabee
|
Canada
|
0.33
|
|
9.00
|
|
|
100
|
|
0.09
|
Chinchillas
|
Argentina
|
0.94
|
196
|
|
0.67
|
0.33
|
75
|
4.5
|
|
Total
|
|
|
|
|
|
|
|
4.5
|
0.09
|
|
|
|
|
|
|
|
|
|
|
Probable Mineral Reserves
|
Marigold
|
U.S
|
201.50
|
|
0.47
|
|
|
100
|
|
3.06
|
Marigold Leach
Pad Inventory
|
U.S
|
|
|
|
|
|
100
|
|
0.24
|
Seabee
|
Canada
|
1.73
|
|
9.24
|
|
|
100
|
|
0.51
|
Chinchillas
|
Argentina
|
7.91
|
161
|
|
1.35
|
0.47
|
75
|
30.7
|
|
Chinchillas
Stockpiles
|
Argentina
|
0.60
|
157
|
|
0.96
|
0.68
|
75
|
2.3
|
|
Pirquitas
Stockpiles
|
Argentina
|
0.87
|
64
|
|
|
1.43
|
75
|
1.3
|
|
Total
|
|
|
|
|
|
|
|
34.3
|
3.81
|
|
|
|
|
|
|
|
|
|
|
Proven and Probable Mineral
Reserves
|
Marigold
|
U.S
|
201.50
|
|
0.47
|
|
|
100
|
|
3.06
|
Marigold Leach
Pad Inventory
|
U.S
|
|
|
|
|
|
100
|
|
0.24
|
Seabee
|
Canada
|
2.05
|
|
9.20
|
|
|
100
|
|
0.61
|
Chinchillas
|
Argentina
|
8.85
|
165
|
|
1.28
|
0.46
|
75
|
35.1
|
|
Chinchillas
Stockpiles
|
Argentina
|
0.60
|
157
|
|
0.96
|
0.68
|
75
|
2.3
|
|
Pirquitas
Stockpiles
|
Argentina
|
0.87
|
64
|
|
|
1.43
|
75
|
1.3
|
|
Total Proven and Probable
|
|
|
|
|
38.7
|
3.91
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SSRM
Interest
|
SSRM
Interest
|
|
Location
|
Tonnes
|
Silver
|
Gold
|
Lead
|
Zinc
|
SSRM
|
Silver
|
Gold
|
|
|
millions
|
g/t
|
g/t
|
%
|
%
|
%
Interest
|
million
oz
|
million
oz
|
|
|
|
|
|
|
|
|
|
|
MINERAL RESOURCES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Measured Mineral Resource (inclusive of Proven
Mineral Reserves)
|
Seabee
|
Canada
|
0.45
|
|
11.76
|
|
|
100
|
|
0.17
|
Chinchillas
|
Argentina
|
2.11
|
130
|
|
0.52
|
0.39
|
75
|
6.6
|
|
Pitarrilla
|
Mexico
|
12.35
|
90
|
|
0.70
|
1.22
|
100
|
35.7
|
|
Total
|
|
|
|
|
|
|
|
42.4
|
0.17
|
|
|
|
|
|
|
|
|
|
|
Indicated Mineral Resources (inclusive of Probable
Mineral Reserves)
|
Marigold
|
U.S
|
354.50
|
|
0.47
|
|
|
100
|
|
5.32
|
Marigold Leach
Pad Inventory
|
U.S
|
|
|
|
|
|
100
|
|
0.24
|
Seabee
|
Canada
|
1.85
|
|
11.56
|
|
|
100
|
|
0.69
|
Chinchillas
|
Argentina
|
26.01
|
100
|
|
0.94
|
0.62
|
75
|
62.5
|
|
Pirquitas
UG
|
Argentina
|
2.63
|
292
|
|
|
4.46
|
75
|
18.6
|
|
Pirquitas
Stockpiles
|
Argentina
|
0.87
|
64
|
|
|
1.43
|
75
|
1.3
|
|
Pitarrilla
|
Mexico
|
147.02
|
97
|
|
0.32
|
0.87
|
100
|
460.7
|
|
Pitarrilla
UG
|
Mexico
|
5.43
|
165
|
|
0.68
|
1.34
|
100
|
28.8
|
|
San Luis
|
Peru
|
0.48
|
578
|
22.40
|
|
|
100
|
9.0
|
0.35
|
Amisk
|
Canada
|
30.15
|
6
|
0.85
|
|
|
100
|
6.0
|
0.83
|
Total
|
|
|
|
|
|
|
|
586.9
|
7.42
|
|
|
|
|
|
|
|
|
|
|
Measured and Indicated Mineral Resources (inclusive
of Mineral Reserves)
|
Marigold
|
U.S
|
354.50
|
|
0.47
|
|
|
100
|
|
5.32
|
Marigold Leach
Pad Inventory
|
U.S
|
|
|
|
|
|
100
|
|
0.24
|
Seabee
|
Canada
|
2.29
|
|
11.60
|
|
|
100
|
|
0.86
|
Chinchillas
|
Argentina
|
28.13
|
102
|
|
0.91
|
0.60
|
75
|
69.1
|
|
Pirquitas
UG
|
Argentina
|
2.63
|
292
|
|
|
4.46
|
75
|
18.6
|
|
Pirquitas
Stockpiles
|
Argentina
|
0.87
|
64
|
|
|
1.43
|
75
|
1.3
|
|
Pitarrilla
|
Mexico
|
159.36
|
97
|
|
0.35
|
0.89
|
100
|
496.5
|
|
Pitarrilla
UG
|
Mexico
|
5.43
|
165
|
|
0.68
|
1.34
|
100
|
28.8
|
|
San Luis
|
Peru
|
0.48
|
578
|
22.40
|
|
|
100
|
9.0
|
0.35
|
Amisk
|
Canada
|
30.15
|
6
|
0.85
|
|
|
100
|
6.0
|
0.83
|
Total Measured and Indicated
|
|
|
|
|
|
629.3
|
7.59
|
|
Inferred Mineral Resources
|
|
|
|
|
|
|
|
Marigold
|
U.S
|
33.60
|
|
0.37
|
|
|
100
|
|
0.40
|
Seabee
|
Canada
|
1.70
|
|
8.82
|
|
|
100
|
|
0.48
|
Chinchillas
|
Argentina
|
21.29
|
50
|
|
0.54
|
0.81
|
75
|
25.7
|
|
Pirquitas
UG
|
Argentina
|
1.08
|
207
|
|
|
7.45
|
75
|
5.4
|
|
Pitarrilla
|
Mexico
|
8.52
|
77
|
|
0.18
|
0.58
|
100
|
21.2
|
|
Pitarrilla
UG
|
Mexico
|
1.23
|
138
|
|
0.89
|
1.25
|
100
|
5.5
|
|
San Luis
|
Peru
|
0.02
|
270
|
5.60
|
|
|
100
|
0.2
|
0.00
|
Amisk
|
Canada
|
28.65
|
4
|
0.64
|
|
|
100
|
3.7
|
0.59
|
Total Inferred
|
|
|
|
|
|
|
|
61.6
|
1.48
|
Notes to Mineral Reserves and Mineral Resources
Table
All estimates set forth in the Mineral Reserves and
Mineral Resources table have been prepared in accordance with
National Instrument 43-101 - Standards of Disclosure for Mineral
Projects ("NI 43-101"). The estimates of Mineral Reserves and
Mineral Resources for each property other than the Marigold mine,
the Seabee Gold Operation and the Amisk project have been reviewed
and approved by Bruce Butcher,
P.Eng., our Director, Mine Planning,
and F. Carl Edmunds, P.Geo., our
Vice President, Exploration, each of whom is a qualified
person.
Mineral Resources are reported inclusive of Mineral
Reserves. Mineral Resources that are not Mineral Reserves do not
have demonstrated economic viability. Due to the uncertainty that
may be attached to Inferred Mineral Resources, it cannot be assumed
that all or any part of an Inferred Mineral Resource will be
upgraded to an Indicated or Measured Mineral Resource as a result
of continued exploration.
Mineral Reserves and Mineral Resources estimates of
silver ounces for Puna Operations, comprised of Chinchillas and
Pirquitas, are reported on a 75% attributable basis. Mineral
Reserves and Mineral Resources figures have some rounding applied,
and thus totals may not sum exactly. All ounces reported herein
represent troy ounces, and "g/t" represents grams per tonne. All $
references are in U.S. dollars. All Mineral Reserves and Mineral
Resources estimates are as at December 31,
2018.
Metal prices utilized for Mineral Reserves estimates
are $1,250 per ounce of gold,
$18.00 per ounce of silver,
$0.90 per pound of lead and
$1.00 per pound of zinc. Metal prices
utilized for Mineral Resources estimates are $1,400 per ounce of gold, $20.00 per ounce of silver, $1.10 per pound of lead and $1.30 per pound of zinc, except as noted below
for each of the Chinchillas project, the San Luis project and the Amisk
project.
All technical reports for the properties are available
under our profile on the SEDAR website at www.sedar.com or on our
website at www.ssrmining.com.
Marigold Mine
- Except for updates to cost parameters, all other key
assumptions, parameters and methods used to estimate Mineral
Reserves and Mineral Resources and the data verification procedures
followed are set out in the Marigold Technical Report. For
additional information about the Marigold mine, readers are
encouraged to review the Marigold Technical Report.
- Mineral Reserves estimate was prepared under the
supervision of James Frost, P.E., a qualified person and our
Technical Services Superintendent at the Marigold mine, and is
reported at a cut-off grade of 0.065 g/t payable
gold.
- Mineral Resources estimate was prepared under the
supervision of James N. Carver, SME
Registered Member, our Chief Geologist at the Marigold mine, and
Karthik Rathnam, MAusIMM (CP), our
Resource Manager, Corporate, each of whom is a qualified person.
Mineral Resources estimate is reported based on an optimized pit
shell at a cut-off grade of 0.065 g/t payable gold, and includes an
estimate of Mineral Resources for mineralized stockpiles using
Inverse Distance cubed.
Seabee Gold Operation
- Except for updates to cost parameters, mill recovery
and dilution to include recent operating results, and resource
modeling techniques based on recommendations set forth in the
Seabee Gold Operation Technical Report, all other key assumptions,
parameters and methods used to estimate Mineral Reserves and
Mineral Resources and the data verification procedures followed are
set out in the Seabee Gold Operation Technical Report. For
additional information about the Seabee Gold Operation, readers are
encouraged to review the Seabee Gold Operation Technical
Report.
- Mineral Reserves estimate was prepared under the
supervision of Kevin Fitzpatrick,
P.Eng., a qualified person and our Engineering Supervisor at the
Seabee Gold Operation. Mineral Reserves estimate for the Santoy
mine is reported at a cut-off grade of 3.31 g/t
gold.
- Mineral Resources estimate was prepared under the
supervision of Jeffrey Kulas,
P.Geo., a qualified person and our Manager Geology, Mining
Operations at the Seabee Gold Operation.
- Block modeling techniques were used for Mineral
Resources and Mineral Reserves evaluation for the Santoy mine and
Porky West deposits.
- The preliminary economic assessment set forth in the
Seabee Gold Operation Technical Report is preliminary in nature,
and it includes Inferred Mineral Resources that are considered too
speculative geologically to have the economic considerations
applied to them that would enable them to be categorized as Mineral
Reserves, and there is no certainty that the preliminary economic
assessment will be realized.
Puna Operations
- Chinchillas Mineral Reserves estimate is reported at a
cut-off grade of $37.80 per tonne net
smelter return ("NSR"). For additional information on the key
assumptions, parameters and methods used to estimate Chinchillas
Mineral Reserves and the data verification procedures followed,
readers are encouraged to review the Chinchillas Technical
Report.
- Chinchillas Mineral Resources estimate is reported at
a base case cut-off grade, which reflects the transport to and
processing of ore at the Pirquitas plant, of 60.00 grams per tonne
silver equivalent based on projected operating costs and using
metal price assumptions of $22.50 per
ounce of silver, $1.00 per pound of
lead and $1.10 per pound of zinc. For
additional information on the key assumptions, parameters and
methods used to estimate Chinchillas Mineral Resources and the data
verification procedures followed, readers are encouraged to review
the Chinchillas Technical Report.
- Pirquitas underground Mineral Resources (Pirquitas UG)
estimate is reported below the completed open pit shell; Mineral
Resources estimate for the Mining Area (which includes San Miguel, Chocaya, Oploca and Potosí zones)
is reported at a cut-off grade of $100.00 per tonne NSR for San Miguel, Oploca and Potosi, and $90.00 per tonne NSR for
Cortaderas.
- Pirquitas Mineral Reserves and Pirquitas Mineral
Resources estimates in surface stockpiles are reported at a cut-off
grade of $20.00 per tonne NSR,
respectively, and were determined based on grade, rehandling costs
and recovery estimates from metallurgical testing.
San Luis Project
- Mineral Resources estimate is reported at a cut-off
grade of 6.0 g/t gold equivalent, using metal price assumptions of
$600 per ounce of gold and
$9.25 per ounce of
silver.
Pitarrilla Project
- Mineral Resources estimate for the open pit is
reported at a cut-off grade of $16.38
per tonne NSR for direct leach material, and $16.40 per tonne NSR for flotation/leach
material.
- Underground Mineral Resources (Pitarrilla UG) estimate
is reported below the constrained open pit resource shell above a
cut-off grade of $80.00 per tonne
NSR, using grade shells that have been trimmed to exclude distal
and lone blocks that would not support development
costs.
Amisk Project
- Mineral Resources estimate was prepared by
Sebastien Bernier, P.Geo., a
qualified person. Mineral Resources estimate is reported at a
cut-off grade of 0.40 grams of gold equivalent per tonne using
metal price assumptions of $1,100 per
ounce of gold and $16.00 per ounce of
silver inside conceptual pit shells optimized using metallurgical
and process recovery of 87%, overall ore mining and processing
costs of $15.00 per tonne and overall
pit slope of fifty-five degrees.
Qualified Persons
Except as otherwise set out herein, the scientific and
technical information contained in this news release relating to
the Marigold mine has been reviewed and approved by James Frost, PE
and James N. Carver, each of whom is
a SME Registered Member and a qualified person under NI 43-101. Mr.
Frost is our Technical Services Superintendent and Mr. Carver is
our Chief Geologist at the Marigold mine. The scientific and
technical data contained in this news release relating to the
Seabee Gold Operation has been reviewed and approved by
Cameron Chapman, P.Eng., and
Jeffrey Kulas, P. Geo., each of whom
is a qualified person under NI 43-101. Mr. Chapman is our General
Manager and Mr. Kulas is our Manager Geology, Mining Operations at
the Seabee Gold Operation. The scientific and technical information
contained in this news release relating to Puna Operations has been
reviewed and approved by Bruce
Butcher, P.Eng., and F. Carl
Edmunds, P. Geo., each of whom is a qualified person under
NI 43-101. Mr. Butcher is our Director, Mine Planning and Mr. Edmunds is our Vice
President, Exploration.
Management Discussion & Analysis and Conference
Call
This news release should be read in conjunction with our
audited consolidated financial statements and the MD&A as filed
with the Canadian Securities Administrators and available at
www.sedar.com or our website at
www.ssrmining.com.
- Conference call and webcast: Friday, February 22, 2019, at 11:00 a.m. EST.
|
Toll-free in U.S. and
Canada:
|
+1 (800)
319-4610
|
|
All other
callers:
|
+1 (416)
915-3239
|
|
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 2861
|
|
All other
callers:
|
+1 (412) 317-0088,
replay code 2861
|
About SSR Mining
SSR Mining Inc. is a Canadian-based precious metals
producer with three operations, including the Marigold mine
in Nevada, U.S., the Seabee Gold Operation
in Saskatchewan, Canada and the 75%-owned and operated
Puna Operations joint venture in Jujuy, Argentina. We also
have two feasibility stage projects and a portfolio of exploration
properties in North and South
America. We are committed to delivering safe production
through relentless emphasis on Operational Excellence. We are also
focused on growing production and Mineral Reserves through the
exploration and acquisition of assets for accretive growth, while
maintaining financial strength.
For further information contact:
W.
John DeCooman,
Jr.
Senior Vice President, Business
Development and Strategy
SSR Mining
Inc.
Vancouver,
BC
N.A. toll-free: +1 (888)
338-0046
All others: +1 (604)
689-3846
E-Mail:
invest@ssrmining.com
To receive SSR Mining's news releases by
e-mail, please register using the SSR Mining website
at www.ssrmining.com.
Cautionary Note Regarding Forward-Looking
Statements:
This news release contains forward-looking information
within the meaning of Canadian securities laws and forward-looking
statements within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995 (collectively, "forward-looking
statements"). All statements, other than statements of historical
fact, are forward-looking statements.
Generally, forward-looking statements can be identified
by the use of words or phrases such as "expects," "anticipates,"
"plans," "projects," "estimates," "assumes," "intends," "strategy,"
"goals," "objectives," "potential," "believes," or variations
thereof, or stating that certain actions, events or results "may,"
"could," "would," "might" or "will" be taken, occur or be achieved,
or the negative of any of these terms or similar expressions. The
forward-looking statements in this news release relate to,
among other things: future production of gold, silver and other
metals; timing of production; future costs of inventory, cash costs
and AISC per payable ounce of gold, silver and other metals sold;
expected exploration and development expenditures; the prices of
gold, silver and other metals; our ability to discover new areas of
mineralization, to convert Inferred Mineral Resources to Indicated
Mineral Resources, to expand Mineral Reserves and to convert
Mineral Resources into Mineral Reserves; the timing and extent of
capital investment at our operations; the timing and extent of
capitalized stripping at our operations; the Seabee Gold Operation
continuing to deliver growth and Puna Operations ramping-up to
steady-state operations in 2019; our cash position remaining strong
for 2019 growth and beyond; the expansion of the Seabee Gold
Operation based on the results of the 2017 Technical Report,
including the increase of mining and milling rates; the expansion
of tailings at the Seabee Gold Operation, the timing and capacity
thereof, and such capacity being in excess of that contemplated
under the 2017 Technical Report, the anticipated effect of
equipment purchases at the Marigold mine on future production; the
construction of a leach pad at the Marigold mine, and the timing
and effects thereof; only waste material being mined over certain
periods of 2019 at Chinchillas with ore stockpiled during the
pre-production phase being transported and processed at the
Pirquitas mill; the completion of certain Chinchillas project
infrastructure, the timing thereof and such remaining on budget;
anticipated community, development and holding costs; estimated
production rates for gold, silver and other metals produced by us;
the estimated cost of sustaining capital; ongoing or future
development plans and capital replacement, estimates of expected or
anticipated economic returns from our mining projects, including
future sales of metals, concentrate or other products produced by
us and the timing thereof; and our plans and expectations for our
properties and operations.
These forward-looking statements are subject to a
variety of known and unknown risks, uncertainties and other factors
that could cause actual events or results to differ from those
expressed or implied, including, without limitation, the following:
uncertainty of production, development plans and cost estimates for
the Marigold mine, the Seabee Gold Operation, Puna Operations and
our projects; our ability to replace Mineral Reserves; our ability
to obtain necessary permits for the Chinchillas project; commodity
price fluctuations; political or economic instability and
unexpected regulatory changes; currency and interest rate
fluctuations; the possibility of future losses; general economic
conditions; fully realizing the value of our shareholdings in
SilverCrest Metals Inc. and our other marketable securities, due to
changes in price, liquidity or disposal cost of such marketable
securities; counterparty and market risks related to the sale of
our concentrate and metals; uncertainty in the accuracy of Mineral
Reserves and Mineral Resources estimates and in our ability to
extract mineralization profitably; differences in U.S. and Canadian
practices for reporting Mineral Reserves and Mineral Resources;
lack of suitable infrastructure or damage to existing
infrastructure; future development risks, including start-up delays
and cost overruns; our ability to obtain adequate financing for
further exploration and development programs and opportunities;
uncertainty in acquiring additional commercially mineable mineral
rights; delays in obtaining or failure to obtain governmental
permits, or non-compliance with our permits; our ability to attract
and retain qualified personnel and management; potential labour
unrest, including labour actions by our unionized employees at Puna
Operations; the impact of governmental regulations, including
health, safety and environmental regulations, including increased
costs and restrictions on operations due to compliance with such
regulations; reclamation and closure requirements for our mineral
properties; failure to effectively manage our tailings facilities;
social and economic changes following closure of a mine, may lead
to adverse impacts and unrest; unpredictable risks and hazards
related to the development and operation of a mine or mineral
property that are beyond our control; indigenous peoples' title
claims and rights to consultation and accommodation may affect our
existing operations as well as development projects and future
acquisitions; assessments by taxation authorities in multiple
jurisdictions; claims and legal proceedings, including adverse
rulings in litigation against us and/or our directors or officers;
compliance with anti-corruption laws and internal controls, and
increased regulatory compliance costs; complying with emerging
climate change regulations and the impact of climate change,
including extreme weather conditions; fully realizing our interest
in deferred consideration received in connection with recent
divestitures; uncertainties related to title to our mineral
properties and the ability to obtain surface rights; the
sufficiency of our insurance coverage; civil disobedience in the
countries where our mineral properties are located; operational
safety and security risks; actions required to be taken by us under
human rights law; competition in the mining industry for mineral
properties; our ability to complete and successfully integrate an
announced acquisition; an event of default under our Notes may
significantly reduce our liquidity and adversely affect our
business; failure to meet covenants under our senior secured
revolving credit facility; conflicts of interest that could arise
from certain of our directors' and officers' involvement with other
natural resource companies; information systems security threats;
and those other various risks and uncertainties identified under
the heading "Risk Factors" in our most recent Annual Information
Form filed with the Canadian securities regulatory authorities and
included in our most recent Annual Report on Form 40-F filed with
the U.S. Securities and Exchange Commission ("SEC").
This list is not exhaustive of the factors that may
affect any of our forward-looking statements. Our forward-looking
statements are based on what our management considers to be
reasonable assumptions, beliefs, expectations and opinions based on
the information currently available to it. Assumptions have been
made regarding, among other things, our ability to carry on our
exploration and development activities, our ability to meet our
obligations under our property agreements, the timing and results
of drilling programs, the discovery of Mineral Resources and
Mineral Reserves on our mineral properties, the timely receipt of
required approvals and permits, including those approvals and
permits required for successful project permitting, construction
and operation of our projects, the price of the minerals we
produce, the costs of operating and exploration expenditures, our
ability to operate in a safe, efficient and effective manner, our
ability to obtain financing as and when required and on reasonable
terms, our ability to continue operating the Marigold mine, the
Seabee Gold Operation and Puna Operations, dilution and mining
recovery assumptions, assumptions regarding stockpiles, the success
of mining, processing, exploration and development activities, the
accuracy of geological, mining and metallurgical estimates, no
significant unanticipated operational or technical difficulties,
maintaining good relations with the communities surrounding the
Marigold mine, the Seabee Gold Operation and Puna Operations, no
significant events or changes relating to regulatory,
environmental, health and safety matters, certain tax matters and
no significant and continuing adverse changes in general economic
conditions or conditions in the financial markets (including
commodity prices, foreign exchange rates and inflation rates). You
are cautioned that the foregoing list is not exhaustive of all
factors and assumptions which may have been used. We cannot assure
you that actual events, performance or results will be consistent
with these forward-looking statements, and management's assumptions
may prove to be incorrect. Our forward-looking statements reflect
current expectations regarding future events and operating
performance and speak only as of the date hereof and we do not
assume any obligation to update forward-looking statements if
circumstances or management's beliefs, expectations or opinions
should change other than as required by applicable law. For the
reasons set forth above, you should not place undue reliance on
forward-looking statements.
Cautionary Note to U.S. Investors
This news release includes Mineral Reserves and Mineral
Resources classification terms that comply with reporting standards
in Canada and the Mineral Reserves
and the Mineral Resources estimates are made in accordance with NI
43-101. NI 43-101 is a rule developed by the Canadian Securities
Administrators that establishes standards for all public disclosure
an issuer makes of scientific and technical information concerning
mineral projects. These standards differ significantly from the
requirements of the SEC set out in SEC Industry Guide 7.
Consequently, Mineral Reserves and Mineral Resources information
included in this news release is not comparable to similar
information that would generally be disclosed by domestic U.S.
reporting companies subject to the reporting and disclosure
requirements of the SEC. Under SEC standards, mineralization may
not be classified as a "reserve" unless the determination has been
made that the mineralization could be economically produced or
extracted at the time the reserve determination is
made.
In addition, the SEC's disclosure standards normally do
not permit the inclusion of information concerning "Measured
Mineral Resources," "Indicated Mineral Resources" or "Inferred
Mineral Resources" or other descriptions of the amount of
mineralization in mineral deposits that do not constitute
"reserves" by U.S. standards in documents filed with the SEC. U.S.
investors should understand that "Inferred Mineral Resources" have
a great amount of uncertainty as to their existence and great
uncertainty as to their economic and legal feasibility. Moreover,
the requirements of NI 43-101 for identification of "reserves" are
also not the same as those of the SEC, and reserves reported by us
in compliance with NI 43-101 may not qualify as "reserves" under
SEC standards. Accordingly, information concerning mineral deposits
set forth herein may not be comparable with information made public
by companies that report in accordance with U.S.
standards.
Cautionary Note Regarding Non-GAAP
Measures
This news release includes certain terms or performance
measures commonly used in the mining industry that are not defined
under International Financial Reporting Standards ("IFRS"),
including cash costs and AISC per payable ounce of precious metals
sold, realized metal prices, adjusted attributable income (loss)
before tax, adjusted attributable net income (loss), adjusted basic
attributable income (loss) per share, operating income and working
capital. Non-GAAP financial measures do not have any standardized
meaning prescribed under IFRS and, therefore, they may not be
comparable to similar measures reported by other companies. We
believe that, in addition to conventional measures prepared in
accordance with IFRS, certain investors use this information to
evaluate our performance. The data presented is
intended to provide additional information and should not be
considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS. These non-GAAP
measures should be read in conjunction with our consolidated
financial statements. Readers should refer to "Non-GAAP and
Additional GAAP Financial Measures" in section 10 of our MD&A,
available under our corporate profile at www.sedar.com or on our
website at www.ssrmining.com, for a more detailed discussion of how
we calculate such measures and for a reconciliation of such
measures to IFRS terms.
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content:http://www.prnewswire.com/news-releases/ssr-mining-reports-fourth-quarter-and-year-end-2018-results-300800107.html
SOURCE SSR Mining Inc.