VANCOUVER, Nov. 5, 2019 /CNW/ - SSR Mining Inc.
(NASDAQ: SSRM) (TSX: SSRM) ("SSR Mining") reports consolidated
financial results for the third quarter ended September 30,
2019.
Paul Benson, President and CEO
said, "We delivered another strong quarter, with increased
production at lower cash costs, which positions us well to meet or
exceed guidance for the eighth consecutive year. Our strong
operating performance resulted in improved margins, earnings,
operating cash flow and free cash flow. Notably, we have an
incredibly strong financial position with over half a billion
dollars in cash and marketable securities."
Third Quarter 2019 Highlights:
(All figures are in
U.S. dollars unless otherwise noted)
- Strong financial performance: Reported positive income from
mine operations at all operations totaling $51.9 million, net income of $18.1 million and adjusted attributable net
income of $28.4 million, or
$0.23 per share. (1)
- On track for higher annual gold equivalent production: Achieved
quarterly consolidated production of 104,775 gold equivalent ounces
at cash costs of $759 per payable
ounce of gold sold. (1)
- Record production and cash costs at the Seabee Gold Operation:
Produced a record 32,345 ounces of gold at record low cash costs of
$373 per payable ounce of gold sold
under SSR Mining management. Achieved higher gold recovery of 98.8%
and gold grade of 12.4 g/t, quarterly records for the operation
under our ownership. (1)
- Strong operating performance at the Marigold mine: Produced
52,968 ounces of gold at lower cash costs of $822 per payable ounce of gold sold. Stacked 6.4
million tonnes of ore at a higher quarterly gold grade of 0.51 g/t.
Total material mined was over 19 million tonnes, continuing to
demonstrate strong and efficient operating practices.
(1)
- Improved production at Puna Operations: Increased silver mill
feed grade and recovery led to 1.7 million ounces of silver
production at cash costs of $14.22
per payable ounce of silver sold. Ore mined was significantly
higher than ore milled, increasing the ore stockpile in advance of
the rainy season. (1)
- Exploration success at Marigold's Red Dot deposit: We expect to
extend the current Marigold life of mine plan into the early 2030's
with Red Dot phases 1, 2 and 3.
- Maintained strong balance sheet and liquidity: Increased cash
balance to $474 million and total
liquidity of approximately $526
million including our marketable securities.
- Consolidated 100% ownership in Puna Operations: Completed
acquisition of the remaining 25% interest in Puna Operations
leading to an immediate increase in silver production profile and
improved operational flexibility.
- Exercised equity participation right in SilverCrest Metals
financing: Maintaining our 9.8% interest and exposure to the high
grade Las Chispas project.
- Marigold mine EIS permit received: Subsequent to September 30, 2019, Marigold received a positive
Record of Decision on its Environmental Impact Statement ("EIS").
The receipt of the new EIS permits the expansion of mining,
including Red Dot and its associated facilities.
(1)
|
We report the
non-GAAP financial measures of adjusted net income and cash costs
per payable ounce of gold and silver sold to manage and evaluate
operating performance at the Marigold mine, the Seabee Gold
Operation and Puna Operations. Please see "Cautionary Note
Regarding Non-GAAP Measures".
|
Marigold mine, U.S.
|
Three months
ended
|
Operating
data
|
September 30
2019
|
|
June 30
2019
|
|
March 31
2019
|
|
December 31
2018
|
|
September 30
2018
|
Total material mined
(kt)
|
19,033
|
|
19,254
|
|
17,295
|
|
17,039
|
|
21,284
|
Waste removed
(kt)
|
12,676
|
|
12,185
|
|
11,767
|
|
11,361
|
|
14,411
|
Total ore stacked
(kt)
|
6,357
|
|
7,070
|
|
5,528
|
|
5,679
|
|
6,873
|
Gold stacked grade
(g/t)
|
0.51
|
|
0.38
|
|
0.34
|
|
0.34
|
|
0.32
|
Gold recovery
(%)
|
77.0
|
|
75.0
|
|
73.0
|
|
72.9
|
|
72.3
|
Strip
ratio
|
2.0
|
|
1.7
|
|
2.1
|
|
2.0
|
|
2.1
|
|
|
|
|
|
|
|
|
|
|
Mining cost ($/t
mined)
|
1.73
|
|
1.65
|
|
1.73
|
|
1.86
|
|
1.51
|
Processing cost ($/t
processed)
|
1.17
|
|
1.01
|
|
1.20
|
|
1.27
|
|
1.12
|
General and
administrative costs
($/t processed)
|
0.54
|
|
0.47
|
|
0.54
|
|
0.51
|
|
0.50
|
|
|
|
|
|
|
|
|
|
Gold produced
(oz)
|
52,968
|
|
54,922
|
|
53,151
|
|
54,306
|
|
58,459
|
Gold sold
(oz)
|
50,650
|
|
59,702
|
|
55,517
|
|
50,550
|
|
59,612
|
|
|
|
|
|
|
|
|
|
|
Realized gold price
($/oz) (1)
|
1,481
|
|
1,309
|
|
1,303
|
|
1,227
|
|
1,207
|
|
|
|
|
|
|
Cash costs ($/oz)
(1)
|
822
|
|
835
|
|
812
|
|
760
|
|
711
|
AISC ($/oz)
(1)
|
1,104
|
|
986
|
|
930
|
|
963
|
|
927
|
|
|
|
|
|
|
|
|
|
|
Financial data
($000s)
|
|
|
|
|
|
|
|
|
|
Revenue
|
74,820
|
|
78,039
|
|
72,263
|
|
61,861
|
|
71,848
|
Income from mine
operations
|
22,064
|
|
13,939
|
|
12,981
|
|
9,977
|
|
13,254
|
Capital expenditures
(2)
|
10,496
|
|
6,924
|
|
3,167
|
|
8,328
|
|
25,461
|
Capitalized
stripping
|
2,031
|
|
871
|
|
2,293
|
|
1,208
|
|
2,529
|
Exploration
expenditures (3)
|
1,990
|
|
2,452
|
|
3,653
|
|
2,096
|
|
2,956
|
|
|
(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
expansionary capital expenditure of $16 million in the third
quarter of 2018. Excludes capitalized exploration
expenditures.
|
(3)
|
Includes
capitalized and expensed exploration expenditures.
|
Mine production
In the third quarter of 2019, the Marigold mine produced 52,968
ounces of gold, a 4% decrease from the second quarter of 2019, as
ores were stacked higher up on the leach pad to allow for the
appropriate leach cycle on ores previously stacked at lower
elevations. Gold sales for the third quarter totaled 50,650 ounces,
15% lower than the previous quarter, due to lower gold production
and a significant inventory drawdown in the second quarter of
2019.
During the third quarter of 2019, 19.0 million tonnes of
material were mined, in line with the second quarter of 2019.
Approximately 6.4 million tonnes of ore were delivered to the heap
leach pads at a grade of 0.51 g/t gold in the quarter. This
compares to 7.1 million tonnes of ore delivered to the heap leach
pads at a gold grade of 0.38 g/t in the second quarter of 2019. The
gold grade to the leach pads was 34% higher compared to the prior
quarter, consistent with plan, as we mined higher grade ore in the
current phase of the Mackay pit.
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 of $822 per payable
ounce of gold sold in the third quarter of 2019 were 2% lower than
the previous quarter. This was primarily due to more ounces stacked
in the quarter due to higher grade combined with an increase in
deferred stripping in the third quarter compared to the second
quarter, offset partially by lower gold ounces sold. Total mining
costs of $1.73 per tonne in the third
quarter of 2019 were 5% higher than in the previous quarter
primarily due to higher tire and fuel operating costs in the haul
fleet. Processing and general and administrative unit costs were
16% and 15% higher, respectively, in the third quarter of 2019 than
in the second quarter, due to fewer tonnes stacked while total
spend remained stable.
AISC per payable ounce of gold sold increased in the third
quarter of 2019 to $1,104 from
$986 in the second quarter, due to
higher planned sustaining capital expenditures on processing
facility upgrades, leach pad expansion, deferred stripping and
capitalized maintenance components.
Mine sales
Average realized gold price is a non-GAAP financial measure.
Please see "Cautionary Note Regarding Non-GAAP Measures".
A total of 50,650 ounces of gold were sold at an average
realized gold price of $1,481 per
ounce during the third quarter of 2019, a decrease of 15% from the
59,702 ounces of gold sold at an average realized gold price of
$1,309 per ounce during the second
quarter of 2019. The decrease in ounces sold was primarily due to a
build-up of inventory available for sale compared to the prior
quarter.
Permitting
On October 30, 2019, Marigold
received a positive Record of Decision ("ROD") from the Bureau of
Land Management regarding the new Marigold environmental impact
statement. The receipt of the ROD permits mining of the Mackay open
pit mineral resource complex including Red Dot and associated
features such as leach pads and dumps. Further permitting will be
required to mine Mineral Reserves and Resources at Valmy, Trenton
Canyon and Buffalo Valley.
Exploration
The main focus of our 2019 exploration program at Marigold has
been to increase Red Dot Mineral Reserves. In addition, we have
continued exploration drilling for additional Mineral Resources
north and south of Red Dot, in the Mackay pit and at Valmy,
Crossfire and East Basalt areas. During the third quarter of 2019,
we completed a total of 51 reverse circulation drillholes for
17,000 meters on these targets.
During 2019, our Red Dot exploration program focused on
geotechnical drilling and engineering with the goal of declaring
additional Mineral Reserves at Red Dot. In the third quarter of
2019, we completed preliminary pit designs and related economic
evaluations at Red Dot. These evaluations were completed with
strict economic return and investment thresholds and were based on
current assumptions, which include a gold price of $1,250 per ounce. Based on the results of these
evaluations, Red Dot is anticipated to extend the Marigold mine
life into the early 2030s, without requiring expansion of the haul
fleet or the associated expansion capital.
Also, at Marigold, infill drill results for the Mackay pit and
the North and South Red Dot areas are expected to add to Mineral
Reserves and Mineral Resources at year-end 2019. Additional
information regarding our Marigold exploration program was
published in our news release dated July 30,
2019 (which, for greater certainty, is not incorporated by
reference herein).
Exploration and permitting activities are scheduled through the
fourth quarter of 2019 at the Mackay pit, North and South Red Dot,
Valmy, East Basalt, and the newly acquired Trenton Canyon areas,
aimed at extending known gold mineralization and discovery. During
the third quarter of 2019, we began the first phase of our
exploration program at the Trenton Canyon property, which is
located immediately south of and adjacent to Marigold.
Seabee Gold Operation, Canada
|
Three months
ended
|
Operating
data
|
September 30
2019
|
|
June 30
2019
|
|
March 31
2019
|
|
December 31
2018
|
|
September 30
2018
|
Total ore milled
(t)
|
77,465
|
|
88,424
|
|
90,756
|
|
86,447
|
|
88,273
|
Ore milled per day
(t/day)
|
842
|
|
971
|
|
1,008
|
|
940
|
|
959
|
Gold mill feed grade
(g/t)
|
12.39
|
|
9.83
|
|
8.59
|
|
10.20
|
|
9.52
|
Gold recovery
(%)
|
98.8
|
|
98.4
|
|
97.2
|
|
97.6
|
|
97.1
|
|
|
|
|
|
|
|
|
|
|
Mining costs ($/t
mined)
|
61
|
|
53
|
|
52
|
|
57
|
|
48
|
Processing costs ($/t
processed)
|
28
|
|
35
|
|
28
|
|
26
|
|
26
|
General and
administrative costs ($/t processed)
|
59
|
|
50
|
|
53
|
|
63
|
|
47
|
|
|
|
|
|
|
|
|
|
Gold produced
(oz)
|
32,345
|
|
26,539
|
|
31,183
|
|
20,473
|
|
27,831
|
Gold sold
(oz)
|
28,278
|
|
24,276
|
|
27,999
|
|
21,711
|
|
29,175
|
|
|
|
|
|
|
|
|
|
Realized gold price
($/oz) (1)
|
1,480
|
|
1,329
|
|
1,302
|
|
1,236
|
|
1,210
|
|
|
|
|
|
|
|
|
|
|
Cash costs ($/oz)
(1)
|
373
|
|
526
|
|
467
|
|
502
|
|
447
|
AISC ($/oz)
(1)
|
715
|
|
828
|
|
947
|
|
728
|
|
591
|
|
|
|
|
|
|
|
|
|
|
Financial data
($000s)
|
|
|
|
|
|
|
|
|
|
Revenue
|
41,331
|
|
32,237
|
|
36,431
|
|
26,890
|
|
35,270
|
Income from mine
operations
|
22,134
|
|
11,762
|
|
13,672
|
|
7,347
|
|
11,061
|
Capital
expenditures
|
5,406
|
|
3,358
|
|
8,772
|
|
625
|
|
968
|
Capitalized
development
|
3,352
|
|
3,345
|
|
3,379
|
|
2,910
|
|
1,812
|
Exploration
expenditures (2)
|
2,131
|
|
2,257
|
|
3,172
|
|
1,661
|
|
2,860
|
|
|
(1)
|
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".
|
(2)
|
Includes
capitalized and expensed exploration expenditures.
|
Mine production
The Seabee Gold Operation produced 32,345 ounces of gold in the
third quarter of 2019, a 22% increase from the second quarter,
mainly due to higher mill feed head grade and the sale of 1,244
ounces as a result of sludge, fines and cathodes recovered during
the third quarter of 2019. Gold sales totaled 28,278 ounces for the
third quarter of 2019, an increase of 17% from the second
quarter.
The mill achieved an average throughput of 842 tonnes per day
over the third quarter, a 13% decline compared to the previous
quarter largely due to a power outage caused by electrical
transformer damage resulting from lightning strikes. Gold mill feed
grade was 12.39 g/t, 25% higher compared to the second quarter due
to the mining of higher grade stopes. Gold recovery for the third
quarter was 98.8%, in-line with the second 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 per payable ounce of gold sold were $373 in the third quarter of 2019, lower than the
$526 in the second quarter of 2019.
Lower cash costs per payable ounce sold were primarily the result
of producing and selling more ounces due to higher grades. Total
mining costs were $61 per tonne in
the third quarter of 2019, higher than the previous quarter,
resulting from reduced tonnage from the mine partially due to a
power outage caused by lightning strikes discussed above.
Processing unit costs decreased by 20% in the third quarter of 2019
compared to the second quarter of 2019, but consistent with the
first quarter of 2019. The reclassification of certain costs
incurred in the first half of the year to capital costs in the
third quarter of 2019 impacted processing costs. General and
administrative costs per tonne increased by 18% in the third
quarter of 2019 compared to the second quarter of 2019, mainly due
to an increase in insurance premiums.
AISC per payable ounce of gold sold were $715 in the third quarter of 2019, 14% lower than
the $828 in the second quarter of
2019. This decrease was primarily due to lower cash costs and an
increase in payable ounces sold for the quarter, offset by higher
capital expenditures due mainly to the Tailings Management Facility
expansion.
Mine sales
Average realized gold price is a non-GAAP financial measure.
Please see "Cautionary Note Regarding Non-GAAP Measures".
A total of 28,278 ounces of gold were sold at an average
realized gold price of $1,480 per
ounce during the third quarter of 2019, compared to 24,276 ounces
of gold sold in the second quarter of 2019, at an average realized
gold price of $1,329 per ounce of
gold. Gold sales by volume for the third quarter were 16% higher
than the second quarter primarily due to higher production as a
result of higher gold grades.
Exploration
In 2019, the Seabee Gold Operation planned 45,000 meters of
underground drilling and 15,000 meters of surface drilling with the
objective to increase and convert Mineral Resources into Mineral
Reserves near the Santoy mine. During the third quarter of 2019,
close to the Santoy mine area, we completed 13,732 meters of
underground drilling in 46 reported drillholes. Our
underground drill activities focused mainly on Santoy Gap hanging
wall ("Gap HW") with a smaller number of holes completed on the
Santoy Gap and Santoy 8A zones. Additional information regarding
our Seabee exploration program was published in our news release
dated July 30, 2019 (which, for
greater certainty, is not incorporated by reference herein). We
anticipate that Gap HW will make a positive contribution to Mineral
Resources when estimated and reported at year-end 2019.
Greenfields exploration at the Seabee Gold Operation and Fisher
property intersected new mineralized zones at the Batman Lake and
Mac targets, respectively, where we are targeting new gold
discoveries.
In addition, exploration field activities outside the immediate
Santoy mine area began in June and continued through the third
quarter of 2019. These are now complete for the season and
were focused on Mineral Resource discovery at the Seabee Gold
Operation and the Fisher project. This work comprised field
programs of soil geochemistry, prospecting, trenching, and geologic
mapping conducted from fly-in camps located along the Santoy shear
zone. Prospecting work located numerous zones of anomalous gold
mineralization in bedrock north and south of the Mac area along
with a well-developed soil anomaly located 800 meters north of the
Santoy mine workings that are expected to be targets for the 2020
drill campaign.
Puna Operations, Argentina
(Amounts presented on 100%
basis unless otherwise stated)
|
Three months
ended
|
Operating data
(1)
|
September 30
2019
|
|
June 30
2019
|
|
March 31
2019
|
|
December 31
2018
|
|
September 30
2018
|
Total material mined
(kt)
|
3,116
|
|
3,304
|
|
2,618
|
|
897
|
|
—
|
Waste removed
(kt)
|
2,531
|
|
3,114
|
|
2,469
|
|
696
|
|
—
|
Strip
ratio
|
4.3
|
|
16.3
|
|
16.5
|
|
3.5
|
|
—
|
Ore milled
(kt)
|
336
|
|
313
|
|
345
|
|
342
|
|
308
|
|
|
|
|
|
|
|
|
|
|
Silver mill feed
grade (g/t)
|
165
|
|
160
|
|
235
|
|
133
|
|
96
|
Lead mill feed grade
(%)
|
0.81
|
|
0.71
|
|
1.07
|
|
0.92
|
|
—
|
Zinc mill feed grade
(%)
|
0.60
|
|
0.46
|
|
0.46
|
|
1.14
|
|
1.25
|
Silver recovery
(%)
|
93.5
|
|
92.4
|
|
91.7
|
|
81.5
|
|
69.90
|
Lead recovery
(%)
|
88.1
|
|
79.4
|
|
83.6
|
|
83.1
|
|
—
|
Zinc recovery
(%)
|
49.3
|
|
48.1
|
|
47.3
|
|
49.5
|
|
38.1
|
|
|
|
|
|
|
|
|
|
Mining costs ($/t
mined)
|
2.76
|
|
2.33
|
|
2.74
|
|
2.61
|
|
—
|
Processing costs ($/t
milled)
|
36.34
|
|
32.57
|
|
29.62
|
|
22.18
|
|
20.87
|
General and
administrative costs ($/t milled)
|
9.24
|
|
8.27
|
|
8.02
|
|
8.16
|
|
7.98
|
|
|
|
|
|
|
|
|
|
|
Silver produced ('000
oz)
|
1,664
|
|
1,486
|
|
2,392
|
|
1,189
|
|
666
|
Silver sold ('000
oz)
|
1,505
|
|
2,679
|
|
927
|
|
932
|
|
623
|
|
|
|
|
|
|
|
|
|
|
Lead produced ('000
lb) (2)
|
5,304
|
|
3,879
|
|
6,789
|
|
2,735
|
|
372
|
Lead sold ('000 lb)
(2)
|
4,119
|
|
7,652
|
|
2,977
|
|
1,059
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Zinc produced ('000
lb) (3)
|
2,206
|
|
1,539
|
|
1,640
|
|
4,014
|
|
3,241
|
Zinc sold ('000 lb)
(3)
|
2,030
|
|
5,757
|
|
3,218
|
|
1,983
|
|
382
|
|
|
|
|
|
|
|
|
|
|
Realized silver price
($/oz) (4)
|
17.31
|
|
14.92
|
|
15.35
|
|
14.42
|
|
15.45
|
Realized lead price
($/lb) (4)
|
0.94
|
|
0.85
|
|
0.95
|
|
0.89
|
|
—
|
Realized zinc price
($/lb) (4)
|
1.03
|
|
1.28
|
|
1.27
|
|
1.22
|
|
1.17
|
|
|
|
|
|
|
|
|
|
|
Cash costs ($/oz)
(4)
|
14.22
|
|
9.80
|
|
9.94
|
|
15.02
|
|
17.41
|
AISC ($/oz)
(4)
|
18.66
|
|
14.28
|
|
19.76
|
|
20.45
|
|
22.39
|
|
|
|
|
|
|
|
|
|
|
Financial Data
($000s)
|
|
|
|
|
|
|
|
|
|
Revenue
|
31,697
|
|
44,873
|
|
17,556
|
|
14,961
|
|
7,915
|
Income (loss) from
mine operations
|
7,708
|
|
4,126
|
|
3,584
|
|
(788)
|
|
(2,440)
|
Capital expenditures
(5)
|
3,453
|
|
3,119
|
|
1,543
|
|
3,849
|
|
2,390
|
Capitalized
stripping
|
1,604
|
|
7,302
|
|
6,191
|
|
—
|
|
—
|
Exploration
expenditures (5)
|
229
|
|
65
|
|
1
|
|
21
|
|
6
|
|
|
(1)
|
Data for the
fourth quarter of 2018 is for the period subsequent to December 1,
2018, the date upon which commercial production was declared at the
Chinchillas mine.
|
(2)
|
Data for lead
production and sales relate only to lead in lead
concentrate.
|
(3)
|
Data for zinc
production and sales relate only to zinc in zinc
concentrate.
|
(4)
|
We report the
non-GAAP financial measures of realized silver, lead and zinc
prices, cash costs and AISC per payable ounce of silver sold to
manage and evaluate operating performance at Puna Operations. See
"Cautionary Note Regarding Non-GAAP Measures".
|
(5)
|
Does not include
exploration or development of the Chinchillas
project.
|
Mine production
Puna Operations produced 1.7 million ounces of silver for the
third quarter of 2019, 12% higher than the second quarter of 2019,
mainly due to higher mill throughput and silver mill feed grade.
Silver sales totaled 1.5 million for the third quarter of 2019.
During the third quarter of 2019, ore was milled at an average
throughput of 3,648 tonnes per day, a 6% increase compared to the
previous quarter, mainly due to improved performance of the
tailings pumping system. During the month of September 2019, following a mill maintenance
shutdown, ore was milled at an average throughput of 4,539 tonnes
per day. Processed ore in the third quarter of 2019 contained an
average silver grade of 165 g/t, a 3% increase compared to the
second quarter, consistent with the mine plan and average silver
reserve grade. The average silver recovery in the third quarter was
94%, in line with the previous quarter. The strip ratio during the
third quarter was 4.3:1, significantly lower than 16.3:1,
consistent with the mine plan.
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 were $14.22 per payable
ounce of silver sold in the third quarter of 2019, an increase from
the $9.80 per payable ounce of silver
sold in the second quarter of 2019, mainly due to lower by-product
revenues in the current period and higher operating costs. In
addition, fewer costs were deferred to stripping due to the
significant decline in strip ratio.
AISC per payable ounce of silver sold in the third quarter of
2019 was $18.66, 31% higher than
$14.28 in the second quarter of 2019.
The increase in AISC was primarily due to higher cash costs for the
period, combined with fewer payable ounces of silver sold at
similar sustaining capital costs compared to the prior period, more
than offsetting the lower deferred stripping.
During the third quarter of 2018, the Federal Government of
Argentina instituted export duties
on several goods, including metal concentrate exports.
Effective September 3, 2018, the
export of silver, lead and zinc concentrates were levied with an
export duty of three Argentine pesos per one
U.S. dollar of export value. Such export duty is
mandated to cease at the end of 2020 and is recoverable for
projects such as ours which are protected by fiscal stability
agreements. These duties are being included as a component of
cash costs pending successful recovery of amounts paid.
Mine sales
Although production was higher in the quarter compared to the
previous quarter, sales were significantly lower compared to the
second quarter as concentrate inventory that was built up during
the first quarter of 2019 was sold in the second quarter. We
generally target concentrate sales to align with concentrate
production but, due to timing of concentrate shipments, variations
will occur. Silver sales totaled 1.5 million ounces in the third
quarter of 2019, a 44% decrease from the second quarter of 2019.
Lead sales totaled 4.1 million pounds in the third quarter of 2019,
a 46% decrease from the second quarter of 2019. Zinc sales totaled
2.0 million pounds in the third quarter of 2019, a 65% decrease
from the second quarter of 2019.
Exploration
During the quarter, we mobilized a diamond drill to the
Pirquitas property to begin drilling a 3,000 meter exploration
program on the Granada target. The
Granada target is the projected
intersection of the north-dipping past producing historic
Potosi vein and the south-dipping
Cortaderas Breccia vein which hosts much of the current underground
Mineral Resources at Pirquitas.
Chinchillas project, Argentina
During the third quarter of 2019, the final hand over to plant
operations of the new tailings system was completed. Engineering
work was performed on the tailings system to improve pumping
efficiency. Infrastructure work continued in the third quarter,
including completion of the diesel fuel station and water
management works planned in the Chinchillas project. The project is
substantially complete with certain contract close-out and
hold-back costs expected to continue into the fourth quarter.
Outlook
This section of the news release provides management's
production, cost, capital, exploration and development expenditure
estimates for 2019. Please see "Cautionary Note Regarding
Forward-Looking Statements."
Our production and cash costs guidance is unchanged from that
reported on August 8, 2019. For the
full year 2019, we expect:
Operating
Guidance
|
|
|
Marigold
mine
|
|
Seabee Gold
Operation
|
|
Puna
Operations
|
Gold
Production
|
oz
|
|
205,000 -
220,000
|
|
100,000 -
110,000
|
|
—
|
Silver
Production
|
Moz
|
|
—
|
|
—
|
|
6.5 - 7.5
|
Lead
Production
|
Mlb
|
|
—
|
|
—
|
|
20.0 -
22.0
|
Zinc
Production
|
Mlb
|
|
—
|
|
—
|
|
7.0 - 9.0
|
Cash Cost per Payable
Ounce Sold (1)
|
$/oz
|
|
780 - 800
|
|
475 - 505
|
|
9.75 -
11.25
|
Sustaining Capital
Expenditures (2)
|
$M
|
|
45
|
|
25
|
|
15
|
Capitalized Stripping
/ Capitalized Development
|
$M
|
|
10
|
|
12
|
|
24
|
Exploration
Expenditures (3)
|
$M
|
|
9
|
|
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.
Excludes capitalized exploration expenditures.
|
(3)
|
Includes
capitalized and expensed exploration expenditures.
|
In 2019, we expect to produce, on a consolidated basis, 400,000
gold equivalent ounces at gold equivalent cash costs of between
$710 and $760 per payable ounce sold.
At Marigold, sustaining capital expenditure guidance has been
increased to $45 million reflecting
the delivery of a replacement hydraulic loading unit in the fourth
quarter. The loader was anticipated to be acquired in 2020, but due
to favorable lead times the purchase has been advanced.
Gold equivalent figures for our 2019 operating guidance are
based on a gold-to-silver ratio of 85:1. Cash costs and capital
expenditures guidance is based on an oil price of $65 per barrel and exchange rate of 1.25 Canadian dollars to one 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
September
30,
|
|
Nine months
ended
September 30,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Revenue
|
$
|
147,848
|
|
$
|
115,033
|
|
$
|
429,247
|
|
$
|
316,963
|
Income from mine
operations
|
51,906
|
|
21,875
|
|
111,970
|
|
60,309
|
Gross margin (%)
(1)
|
35%
|
|
19%
|
|
26%
|
|
19%
|
Operating
income
|
39,891
|
|
10,220
|
|
79,110
|
|
26,834
|
Net income
|
18,132
|
|
2,228
|
|
36,278
|
|
2,513
|
Basic attributable
income per share
|
0.17
|
|
0.05
|
|
0.31
|
|
0.08
|
Adjusted attributable
income before tax (1)
|
43,066
|
|
14,025
|
|
82,054
|
|
33,813
|
Adjusted attributable
net income (1)
|
28,432
|
|
10,781
|
|
62,435
|
|
28,513
|
Adjusted basic
attributable income per share (1)
|
0.23
|
|
0.09
|
|
0.51
|
|
0.24
|
Cash generated by
operating activities
|
52,502
|
|
35,374
|
|
85,566
|
|
63,513
|
Cash used in
investing activities
|
(29,308)
|
|
(56,021)
|
|
(108,025)
|
|
(52,903)
|
Cash generated by
financing activities
|
2,572
|
|
2,449
|
|
80,804
|
|
8,613
|
|
|
|
|
|
|
|
Financial
Position
|
September 30,
2019
|
|
December 31,
2018
|
Cash and cash
equivalents
|
|
$
|
474,479
|
|
|
$
|
419,212
|
Marketable
securities
|
|
51,132
|
|
|
29,542
|
Current
assets
|
|
849,959
|
|
|
733,119
|
Current
liabilities
|
|
213,649
|
|
|
83,254
|
Working capital
(1)
|
|
636,310
|
|
|
649,865
|
Total
assets
|
|
1,688,443
|
|
|
1,521,138
|
|
|
(1)
|
We report non-GAAP
measures, including gross margin, adjusted attributable income
before tax, adjusted attributable net income, adjusted basic
attributable income per share, and working capital to manage and
evaluate our operating performance. Please see "Cautionary Note
Regarding Non-GAAP Measures".
|
Quarterly financial summary
Revenue in the third quarter of 2019 increased 29% relative to
the comparative quarter of 2018, mainly due to a higher realized
gold price at Marigold mine and Seabee Gold Operation and higher
silver ounces sold at Puna Operations, offset partially by a
decrease in gold ounces sold.
Income from mine operations of $51.9
million in the third quarter of 2019 generated a gross
margin of 35%, an increase from the 19% gross margin generated in
the third quarter of 2018. Relative to the prior quarter, income
from mine operations generated at all our operations were higher
mainly due to a 22% increase in realized gold prices at the
Marigold mine and Seabee Gold Operation and a 12% increase in the
realized silver price at Puna Operations.
In the third quarter of 2019, we generated net income of
$18.1 million, an increase compared
to net income of $2.2 million in the
third quarter of 2018.
Cash generated from operating activities in the third quarter of
2019 increased to $52.5 million
compared to $35.4 million generated
in the third quarter of 2018. All mine operations generated higher
revenue driven primarily by higher realized gold and silver prices.
Cash from operating activities was negatively impacted by a
$9.4 million increase in non-cash
working capital compared to a $7.6
million decrease in the third quarter of 2018,
Investing activities used $29.3
million of cash in the third quarter of 2019. This included
expenditures of $14.7 million on
property, plant and equipment, capitalized stripping costs of
$3.6 million, underground development
costs of $3.4 million and
$3.3 million on the Chinchillas
project. In the third quarter of 2018, we invested $37.0 million in property, plant and equipment
and $13.6 million on the Chinchillas
project.
Cash generated from financing activities was $2.6 million in the third quarter of 2019,
compared to cash generated of $2.4
million in the third quarter of 2018.
Year-to-date financial summary
Revenue for the nine months ended September 30, 2019 increased by 35% compared to
the nine months ended September 30,
2018 due primarily to a 75% increase in payable ounces of
silver sold at Puna Operations. In addition, payable ounces of gold
sold at the Marigold mine and Seabee Gold Operation increased by
12% and 15%, respectively, at 7% higher realized gold prices.
Income from mine operations for the nine months ended
September 30, 2019 of $112.0 million generated a gross margin of 26%,
compared to a 19% gross margin for the nine months ended
September 30, 2018, primarily due to
higher realized gold and silver prices. Net income for the nine
months ended September 30, 2019 was
$36.3 million, compared to net income
of $2.5 million for the comparative
period 2018.
Cash generated by operating activities for the nine months ended
September 30, 2019 increased to
$85.6 million compared to
$63.5 million for the nine months
ended September 30, 2018.
Investing activities used $108.0
million for the nine months ended September 30, 2019 compared to using $52.9 million for the nine months ended
September 30, 2018. For the nine
months ended September 30, 2019, we
invested $37.0 million in property,
plant and equipment, $22.0 million to
acquire the Trenton Canyon and Buffalo Valley properties in
Nevada, $19.5 million in capitalized stripping costs and
$14.2 million in the Chinchillas
project. We also received $7.5
million in interest. For the nine months ended
September 30, 2018, we received
$63.4 million from the sale of
marketable securities, which was partially offset by investing
$57.2 million in property, plant and
equipment, and $41.4 million on the
Chinchillas project.
Cash generated by financing activities for the nine months ended
September 30, 2019 increased to
$80.8 million compared to
$8.6 million for the nine months
ended September 30, 2018. In the nine
months ended September 30, 2019 we
redeemed a portion of our 2013 Notes for $152.3 million and issued the 2019 Notes for net
proceeds of $222.9 million.
Additionally, we received proceeds from stock option exercises of
$7.1 million and funding, prior to
the acquisition of the non-controlling interest, from our joint
venture partner of $3.7 million.
Corporate summary
SSR Mining has an experienced management team of mine-builders
and operators with proven capabilities. We have a strong balance
sheet with $474.5 million in cash and
cash equivalents as at September 30, 2019. 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 March 19, 2019, we issued
$230.0 million aggregate principal
amount of 2.50% unsecured convertible senior notes (the "2019
Notes") for net proceeds of $222.9
million after payment of commissions and expenses related to
the offering. For a full description of the 2019 Notes, see
the "Capital Resources" discussion in Section 5 of our Management's
Discussion and Analysis for the three and nine months ended
September 30, 2019 ("MD&A").
Of the proceeds from the 2019 Notes, $152.3 million was used to repurchase, in
separate privately negotiated transactions, $150 million of our outstanding $265 million 2.875% senior convertible notes
issued in 2013 (the "2013 Notes").
On June 27, 2019, we acquired
approximately 8,900 hectares contiguous to the Marigold mine,
comprised of a 100% interest in the Trenton Canyon and Buffalo
Valley properties (the "Properties") from Newmont Goldcorp
Corporation and Fairmile Gold Mining, Inc., net of a 0.5% net
smelter returns royalty on the Properties. The aggregate purchase
price included $22 million in cash
and the assumption of related long-term environmental and
reclamation obligations then valued at approximately $13 million. The acquisition of the Properties
increases Marigold's land position by 84%, provides an opportunity
to increase gold Mineral Resources and adds multiple zones of
mineralization as potential exploration targets.
On July 23, 2019, we elected to
exercise our equity participation right pursuant to our agreement
with SilverCrest Metals Inc. ("SilverCrest") dated November 28, 2018 to purchase up to 780,000
common shares of SilverCrest on the same terms as the bought deal
offering announced by SilverCrest on July
23, 2019 (the "Offering"). On August
19, 2019, we announced the completion of the transaction to
purchase 780,000 common shares of SilverCrest at a price of
C$5.85 for total consideration of
$3.4 million. Upon closing of the
Offering, we own approximately 9.8% of the issued and outstanding
common shares of SilverCrest on a non-diluted basis.
On September 18, 2019, we closed
the acquisition of the remaining 25% interest in Puna Operations
Inc. from Golden Arrow Resources Corporation ("Golden Arrow") for
aggregate consideration totaling approximately $32.4 million (the "Transaction"). The
Transaction allowed us to consolidate ownership in Puna Operations
and streamlines our reporting structure, and is expected to allow
for cost savings and operational flexibility. The Transaction also
provides us with near-term low-risk silver production growth, with
our 2019 annual silver production expected to increase to 7.0
million ounces, based on mid-point of our revised guidance. Under
the terms of the Transaction, aggregate consideration consisted of
the following:
- $2.3 million in cash;
- $11.4 million for the
cancellation of the outstanding principal and accrued interest on
the non-revolving term loan to Golden
Arrow;
- $18.2 million in common shares of
SSR Mining determined by the closing price of our common shares on
the Toronto Stock Exchange on the last trading day prior to the
closing date of the Transaction; and
- $0.5 million for the transfer to
Golden Arrow of 4,285,714 of their
common shares held by us.
Qualified Persons
The scientific and technical information contained in this news
release relating to the Marigold mine has been reviewed and
approved by Greg Gibson, P.E. and James N.
Carver, each of whom is a SME Registered Member and a
qualified person under National Instrument 43-101 - Standards of
Disclosure for Mineral Projects ("NI 43-101"). Mr. Gibson is our
General Manager and Mr. Carver is our Chief Geologist at the
Marigold mine. The scientific and technical information 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 Robert Gill, P.Eng., and F.
Carl Edmunds, P.Geo., each of whom
is a qualified person under NI 43-101. Mr. Gill is our General
Manager at Puna Operations and Mr. Edmunds is our Vice President,
Exploration.
Management Discussion & Analysis and Conference
Call
This news release should be read in conjunction with our
unaudited Condensed Consolidated Interim Financial Statements and
our 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: Wednesday,
November 6, 2019, at 11:00 am
ET.
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 3729
|
All other
callers:
|
+1 (412) 317-0088,
replay code 3729
|
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 Puna
Operations 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
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") concerning the anticipated developments in our
operations in future periods, and other events or conditions that
may occur or exist in the future. 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;
production and cost guidance; improvements to cash costs per
payable ounce of gold, silver and other metals sold; the prices of
gold, silver and other metals; future interest rates future
successful development of our projects; the sufficiency of our
current working capital, anticipated operating cash flow or our
ability to raise necessary funds; estimated production rates for
gold, silver and other metals produced by us; expected
metallurgical results and recovery rates; meeting or exceeding our
production guidance for the eighth consecutive year; achieving
higher annual gold equivalent production in 2019; ongoing or future
development plans and capital replacement, improvement or
remediation programs; our ability to discover and increase Mineral
Resources, replace and increase Mineral Reserves and convert
Mineral Resources to Mineral Reserves at the Marigold mine and the
Seabee Gold Operation, including (a) increasing Mineral Resources
and Mineral Reserves at the Marigold mine at year-end 2019 and (b)
increasing Mineral Resources at Santoy Gap HW at the Seabee Gold
Operation at year-end 2019; our expected drill programs at the
Marigold mine, the Seabee Gold Operation and Puna Operations;
estimated mine life, including anticipated extension of the mine
life of the Marigold mine into the early 2030s, without requiring
expansion of mining fleet or the associated expansion capital;
timing of production at the Marigold mine, the Seabee Gold
Operation and Puna Operations; timing and results of our
exploration and development programs; expected timing of completion
of certain contract close-out and holdback costs at the Chinchillas
project; ongoing or future development plans and capital
replacement, improvement or remediation programs; the estimates of
expected or anticipated economic returns from our mining projects,
including future sales of metals, concentrate or other products
produced by us 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; commodity price
fluctuations; political or economic instability and unexpected
regulatory changes; currency fluctuations; the possibility of
future losses; general economic conditions; 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; the impact of governmental
regulations, including health, safety and environmental
regulations, including increased costs and restrictions on
operations due to compliance with such regulations; unpredictable
risks and hazards related to the development and operation of a
mine or mineral property that are beyond our control; reclamation
and closure requirements for our mineral properties; potential
labour unrest, including labour actions by our unionized employees
at Puna Operations; indigenous peoples' title claims and rights to
consultation and accommodation may affect our existing operations
as well as development projects and future acquisitions; certain
transportation risks that could have a negative impact on our
ability to operate; assessments by taxation authorities in multiple
jurisdictions; recoverability of value added tax and significant
delays in the collection process in Argentina; 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; fully realizing our interest in deferred
consideration received in connection with recent divestitures;
fully realizing the value of our shareholdings in our marketable
securities, due to changes in price, liquidity or disposal cost of
such marketable securities; 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; reputation loss resulting in decreased
investor confidence, increased challenges in developing and
maintaining community relations and an impediment to our overall
ability to advance our projects; risks normally associated with the
conduct of joint ventures; inability to collect under the Loan to
Golden Arrow; an event of default
under our convertible notes may significantly reduce our liquidity
and adversely affect our business; failure to meet covenants under
our senior secured revolving credit facility; information systems
security threats; conflicts of interest that could arise from
certain of our directors' and officers' involvement with other
natural resource companies; other risks related to our common
shares; 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 currently 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 realized metal prices, cash costs and AISC per payable
ounce of precious metals sold, adjusted income before tax
attributable to our shareholders, adjusted income tax expense,
adjusted net income attributable to our shareholders, adjusted
basic income per share attributable to our shareholders and gross
margin. 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 Financial Measures" in Section 8 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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SOURCE SSR Mining Inc.