SSR Mining Inc. | ||
(Registrant) | ||
Date: May 9, 2019 | By: | Signed: “Gregory J. Martin” |
Gregory J. Martin | ||
Title: | Chief Financial Officer |
99.1 | |
99.2 | |
99.3 | |
99.4 | |
99.5 |
SSR Mining Inc. | Interim Financial Statements Q1 2019 | 1 |
Financial Statements | |
Condensed Consolidated Interim Statements of Income (Loss) | |
Notes to the Condensed Consolidated Interim Financial Statements | |
Statements of Financial Position | |
Note 4 – Provisions | |
Note 5 – Debt | |
Statements of Income (Loss) | |
Note 7 – Income (loss) per share | |
Statements of Shareholders’ Equity | |
Additional Disclosures | |
SSR Mining Inc. | Interim Financial Statements Q1 2019 | 2 |
Note | March 31 | December 31 | |||
2019 | 2018 | ||||
$ | $ | ||||
Current assets | |||||
Cash and cash equivalents | 461,351 | 419,212 | |||
Trade and other receivables | 55,217 | 42,841 | |||
Marketable securities | 32,634 | 29,542 | |||
Inventory | 3 | 241,296 | 232,748 | ||
Other | 9,993 | 8,776 | |||
800,491 | 733,119 | ||||
Non-current assets | |||||
Property, plant and equipment | 719,807 | 701,175 | |||
Deferred income tax assets | 2,623 | 7,523 | |||
Goodwill | 49,786 | 49,786 | |||
Other | 34,435 | 29,535 | |||
Total assets | 1,607,142 | 1,521,138 | |||
Current liabilities | |||||
Trade and other payables | 70,004 | 78,466 | |||
Provisions | 4 | 4,604 | 4,788 | ||
Current portion of debt | 5 | 109,125 | — | ||
183,733 | 83,254 | ||||
Non-current liabilities | |||||
Deferred income tax liabilities | 120,108 | 107,909 | |||
Lease liabilities | 2 | 3,263 | — | ||
Provisions | 4 | 73,039 | 76,448 | ||
Debt | 5 | 164,380 | 247,551 | ||
Total liabilities | 544,523 | 515,162 | |||
Shareholders' equity | |||||
Share capital | 1,059,591 | 1,055,417 | |||
Other reserves | (11,426 | ) | (16,303 | ) | |
Equity component of convertible notes | 5 | 106,497 | 68,347 | ||
Deficit | (126,850 | ) | (133,314 | ) | |
Total equity attributable to SSR Mining shareholders | 1,027,812 | 974,147 | |||
Non-controlling interest | 34,807 | 31,829 | |||
Total equity | 1,062,619 | 1,005,976 | |||
Total liabilities and equity | 1,607,142 | 1,521,138 | |||
"Beverlee F. Park" | "Paul Benson" | |
Beverlee F. Park, Director | Paul Benson, Director |
SSR Mining Inc. | Interim Financial Statements Q1 2019 | 3 |
Note | Three months ended March 31, | ||||
2019 | 2018 | ||||
$ | $ | ||||
Revenue | 6 | 126,250 | 97,902 | ||
Cost of sales | 9 | (96,013 | ) | (80,671 | ) |
Income from mine operations | 30,237 | 17,231 | |||
General and administrative expenses | (6,871 | ) | (6,669 | ) | |
Exploration, evaluation and reclamation expenses | (3,738 | ) | (2,831 | ) | |
Operating income | 19,628 | 7,731 | |||
Interest earned and other finance income | 4,903 | 2,304 | |||
Interest expense and other finance costs | (8,645 | ) | (8,836 | ) | |
Loss on redemption of convertible debt | 5 | (5,423 | ) | — | |
Other income (expenses ) | 597 | (3,947 | ) | ||
Foreign exchange (loss) gain | (2,163 | ) | 1,942 | ||
Income (loss) before income tax | 8,897 | (806 | ) | ||
Income tax expense | (3,165 | ) | (1,516 | ) | |
Net income (loss) | 5,732 | (2,322 | ) | ||
Attributable to: | |||||
Equity holders of SSR Mining | 6,464 | (1,626 | ) | ||
Non-controlling interests | (732 | ) | (696 | ) | |
Net income (loss) per share attributable to equity holders of SSR Mining | |||||
Basic | 7 | $0.05 | $(0.01) | ||
Diluted | 7 | $0.05 | $(0.01) |
SSR Mining Inc. | Interim Financial Statements Q1 2019 | 4 |
Three months ended March 31, | |||||
2019 | 2018 | ||||
$ | $ | ||||
Net income (loss) | 5,732 | (2,322 | ) | ||
Other comprehensive income (loss) | |||||
Items that will not be reclassified to net income: | |||||
Gain (loss) on marketable securities at FVTOCI, net of tax ($410) and $5,532 | 2,639 | (38,327 | ) | ||
Items that may be subsequently reclassified to net income: | |||||
Unrealized gain (loss) on effective portion of derivative, net of tax ($477) and $146 | 1,598 | (337 | ) | ||
Total other comprehensive income (loss) | 4,237 | (38,664 | ) | ||
Total comprehensive income (loss) | 9,969 | (40,986 | ) | ||
Attributable to: | |||||
Equity holders of SSR Mining | 10,701 | (40,290 | ) | ||
Non-controlling interests | (732 | ) | (696 | ) |
SSR Mining Inc. | Interim Financial Statements Q1 2019 | 5 |
Note | Common Shares | Other reserves | Equity component of convertible notes | Deficit | Total equity attributable to equity holders of SSR Mining | Non-controlling interest | Total equity | ||||||||||
Shares | Amount | ||||||||||||||||
000's | $ | $ | $ | $ | $ | $ | $ | ||||||||||
Balance, January 1, 2018 | 119,841 | 1,047,233 | 24,998 | 68,347 | (139,693 | ) | 1,000,885 | 23,043 | 1,023,928 | ||||||||
Exercise of stock options | 91 | 705 | (244 | ) | — | — | 461 | — | 461 | ||||||||
Equity-settled share-based compensation | 8 | — | — | 468 | — | — | 468 | — | 468 | ||||||||
Funding from non-controlling interest | — | — | — | — | — | — | 1,455 | 1,455 | |||||||||
Total comprehensive loss for the period | — | — | (38,664 | ) | — | (1,626 | ) | (40,290 | ) | (696 | ) | (40,986 | ) | ||||
Balance, March 31, 2018 | 119,932 | 1,047,938 | (13,442 | ) | 68,347 | (141,319 | ) | 961,524 | 23,802 | 985,326 | |||||||
Balance, January 1, 2019 | 120,740 | 1,055,417 | (16,303 | ) | 68,347 | (133,314 | ) | 974,147 | 31,829 | 1,005,976 | |||||||
Exercise of stock options | 478 | 4,174 | (1,126 | ) | — | — | 3,048 | — | 3,048 | ||||||||
Equity-settled share-based compensation | 8 | — | — | 460 | — | — | 460 | — | 460 | ||||||||
Transfer of equity-settled Performance Share Units | 8 | — | — | 1,284 | — | — | 1,284 | — | 1,284 | ||||||||
Equity value debt issued | 5 | — | — | — | 42,975 | — | 42,975 | — | 42,975 | ||||||||
Value of convertible debt redeemed | 5 | — | — | — | (4,825 | ) | — | (4,825 | ) | — | (4,825 | ) | |||||
Revaluation of reserve | — | — | 22 | — | — | 22 | — | 22 | |||||||||
Funding from non-controlling interest | — | — | — | — | — | — | 3,710 | 3,710 | |||||||||
Total comprehensive income for the period | — | — | 4,237 | — | 6,464 | 10,701 | (732 | ) | 9,969 | ||||||||
Balance, March 31, 2019 | 121,218 | 1,059,591 | (11,426 | ) | 106,497 | (126,850 | ) | 1,027,812 | 34,807 | 1,062,619 |
SSR Mining Inc. | Interim Financial Statements Q1 2019 | 6 |
Note | Three months ended March 31, | ||||
2019 | 2018 | ||||
$ | $ | ||||
Cash flows from operating activities | |||||
Net income (loss) for the period | 5,732 | (2,322 | ) | ||
Adjustments for: | |||||
Depreciation, depletion and amortization | 25,798 | 25,400 | |||
Net finance expense | 3,406 | 6,072 | |||
Gain on sale of mineral property | (1,000 | ) | — | ||
Income tax recovery | 3,165 | 1,516 | |||
Non-cash foreign exchange gain | (483 | ) | (2,253 | ) | |
Loss on redemption of convertible debt | 5 | 5,423 | — | ||
Net changes in non-cash working capital items | 11 | (27,377 | ) | (11,868 | ) |
Other items impacting operating activities | 11 | 532 | 4,323 | ||
Cash generated by operating activities before interest and taxes | 15,196 | 20,868 | |||
Moratorium paid | (1,091 | ) | (1,820 | ) | |
Interest paid | (5,216 | ) | (5,822 | ) | |
Income taxes paid | (9,192 | ) | (2,219 | ) | |
Cash (used in) generated by operating activities | (303 | ) | 11,007 | ||
Cash flows from investing activities | |||||
Purchase of plant and equipment | (13,160 | ) | (8,775 | ) | |
Capitalized stripping costs | (8,484 | ) | (2,902 | ) | |
Underground mine development costs | (3,379 | ) | (2,283 | ) | |
Capitalized exploration costs | (4,039 | ) | (2,222 | ) | |
Chinchillas project costs | (6,148 | ) | (11,715 | ) | |
Loan to joint venture partner | (1,967 | ) | — | ||
Net proceeds from sale of marketable securities | 947 | 28,063 | |||
Interest received | 2,712 | 1,643 | |||
Other | (244 | ) | (422 | ) | |
Cash (used in) generated by investing activities | (33,762 | ) | 1,387 | ||
Cash flows from financing activities | |||||
Proceeds from exercise of stock options | 3,048 | 461 | |||
Funding from non-controlling interests | 3,710 | 1,455 | |||
Redemption of convertible notes | (152,250 | ) | — | ||
Issuance of convertible notes | 230,000 | — | |||
Convertible notes issuance costs | (7,067 | ) | — | ||
Cash generated by financing activities | 77,441 | 1,916 | |||
Effect of foreign exchange rate changes on cash and cash equivalents | (1,237 | ) | (1,273 | ) | |
Increase in cash and cash equivalents | 42,139 | 13,037 | |||
Cash and cash equivalents, beginning of period | 419,212 | 459,864 | |||
Cash and cash equivalents, end of period | 461,351 | 472,901 |
SSR Mining Inc. | Interim Financial Statements Q1 2019 | 7 |
1. | NATURE OF OPERATIONS |
2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
a) | Basis of preparation |
b) | Change in accounting policies |
SSR Mining Inc. | Interim Financial Statements Q1 2019 | 8 |
2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) |
$ '000s | ||
As at December 31, 2018 | — | |
IFRS 16 adoption | ||
Future aggregate minimum lease payments under operating leases as at December 31, 2018 | 5,988 | |
Effect of discounting at the incremental borrowing rate | (1,678 | ) |
Lease liabilities arising on initial application of IFRS 16 | 4,310 | |
Cash principal and interest payments | (294 | ) |
Non-cash accretion | 80 | |
As at March 31, 2019 | 4,096 | |
Less: current portion | 834 | |
3,262 |
c) | Significant accounting judgments and estimates |
SSR Mining Inc. | Interim Financial Statements Q1 2019 | 9 |
3. | INVENTORY |
March 31, 2019 | December 31, 2018 | |||
$ | $ | |||
Current: | ||||
Finished goods | 31,376 | 23,433 | ||
Stockpiled ore | 11,448 | 18,195 | ||
Leach pad inventory | 158,640 | 162,335 | ||
Materials and supplies | 39,832 | 28,785 | ||
241,296 | 232,748 | |||
Non-current materials and supplies | 1,886 | 2,006 | ||
243,182 | 234,754 |
4. | PROVISIONS |
March 31, 2019 | December 31, 2018 | |||||||
Current | Non-current | Current | Non-current | |||||
$ | $ | $ | $ | |||||
Moratorium (1) | 4,185 | 11,470 | 4,570 | 14,487 | ||||
Close down and restoration provision | 413 | 61,569 | 211 | 61,961 | ||||
Other provisions | 6 | — | 7 | — | ||||
4,604 | 73,039 | 4,788 | 76,448 |
(1) | We entered into a fiscal stability agreement with the Federal Government of Argentina in 1998 for production from the Puna Operations. In December 2007, the National Customs Authority of Argentina (Dirección Nacional de Aduanas) ("Customs") levied an export duty of approximately 10% from concentrate for projects with fiscal stability agreements pre-dating 2002 and Customs had asserted that the Puna Operations was subject to this duty. We had previously challenged the legality of the export duty applied to silver concentrate. |
SSR Mining Inc. | Interim Financial Statements Q1 2019 | 10 |
March 31, 2019 | December 31, 2018 | |||
$ | $ | |||
Balance, beginning of period | 250,729 | 236,358 | ||
Accretion of discount | 3,760 | 14,371 | ||
Interest accrued | 1,925 | 7,619 | ||
Interest paid | (4,384 | ) | (7,619 | ) |
Redemption of 2013 Notes | (141,982 | ) | — | |
Issuance of 2019 Notes | 164,160 | — | ||
Balance, end of period | 274,208 | 250,729 | ||
Balance of debt (current) | 109,125 | — | ||
Accrued interest outstanding | 703 | 3,178 | ||
Total current portion of debt | 109,828 | 3,178 | ||
Non-current portion of notes outstanding | 164,380 | 247,551 |
Three months ended March 31, | ||||
2019 | 2018 | |||
$ | $ | |||
Gold doré and bullion sales | 108,694 | 82,669 | ||
Concentrate sales | 17,187 | 16,153 | ||
Other revenue | 369 | (920 | ) | |
126,250 | 97,902 |
SSR Mining Inc. | Interim Financial Statements Q1 2019 | 11 |
Three months ended March 31, | ||||
2019 | 2018 | |||
$ | $ | |||
Net income (loss) | 5,732 | (2,322 | ) | |
Net loss attributable to non-controlling interests | (732 | ) | (696 | ) |
Net income (loss) used in the calculation of diluted net income (loss) per share | 6,464 | (1,626 | ) | |
Weighted average number of common shares issued (thousands) | 121,023 | 119,882 | ||
Adjustments for dilutive instruments: | ||||
Stock options (thousands) | 966 | — | ||
Weighted average number of common shares for diluted income per share (thousands) | 121,989 | 119,882 | ||
Basic net income (loss) per share attributable to equity holders of SSR Mining | $0.05 | $(0.01) | ||
Diluted net income (loss) per share attributable to equity holders of SSR Mining | $0.05 | $(0.01) |
Three months ended March 31, | ||||
2019 | 2018 | |||
$ | $ | |||
Equity-settled | ||||
Cost of inventory | 35 | 54 | ||
General and administrative expenses | 416 | 403 | ||
Exploration, evaluation and reclamation expenses | 9 | 11 | ||
Cash-settled | ||||
Cost of inventory | 186 | 293 | ||
General and administrative expenses | 3,315 | 2,468 | ||
Exploration, evaluation and reclamation expenses | 47 | 24 | ||
4,008 | 3,253 |
SSR Mining Inc. | Interim Financial Statements Q1 2019 | 12 |
Three months ended March 31, 2019 | Marigold mine | Seabee Gold Operation | Puna Operations | Exploration and evaluation properties | Other reconciling items (i) | Total | ||||||
$ | $ | $ | $ | $ | $ | |||||||
Revenue | 72,263 | 36,431 | 17,556 | — | — | 126,250 | ||||||
Cost of inventory | (44,992 | ) | (13,047 | ) | (12,827 | ) | — | — | (70,866 | ) | ||
Depletion, depreciation and amortization | (14,290 | ) | (9,712 | ) | (1,145 | ) | — | — | (25,147 | ) | ||
Income from mine operations | 12,981 | 13,672 | 3,584 | — | — | 30,237 | ||||||
Exploration, evaluation and reclamation expenses | (106 | ) | (2,903 | ) | (80 | ) | (614 | ) | (35 | ) | (3,738 | ) |
Operating income (loss) | 11,157 | 10,016 | 2,368 | (298 | ) | (3,615 | ) | 19,628 | ||||
Income (loss) before income tax | 7,656 | 10,671 | (708 | ) | 702 | (9,424 | ) | 8,897 | ||||
As at March 31, 2019 | ||||||||||||
Total assets | 475,977 | 455,370 | 212,657 | 58,793 | 404,345 | 1,607,142 | ||||||
Non-current assets | 236,047 | 326,955 | 144,130 | 56,571 | 42,948 | 806,651 | ||||||
Total liabilities | (77,657 | ) | (99,448 | ) | (61,191 | ) | (6,341 | ) | (299,886 | ) | (544,523 | ) |
Three months ended March 31, 2018 | Marigold mine | Seabee Gold Operation | Puna Operations | Exploration and evaluation properties | Other reconciling items (i) | Total | ||||||
$ | $ | $ | $ | $ | $ | |||||||
Revenue | 55,880 | 26,789 | 15,233 | — | — | 97,902 | ||||||
Cost of inventory | (30,196 | ) | (9,604 | ) | (15,933 | ) | — | — | (55,733 | ) | ||
Depletion, depreciation and amortization | (13,372 | ) | (10,513 | ) | (1,053 | ) | — | — | (24,938 | ) | ||
Income (loss) from mine operations | 12,312 | 6,672 | (1,753 | ) | — | — | 17,231 | |||||
Exploration, evaluation and reclamation expenses | (101 | ) | (1,814 | ) | (70 | ) | (641 | ) | (205 | ) | (2,831 | ) |
Operating income (loss) | 11,053 | 4,321 | (2,561 | ) | (641 | ) | (4,441 | ) | 7,731 | |||
Income (loss) before income tax | 6,822 | 1,815 | (3,982 | ) | (552 | ) | (4,909 | ) | (806 | ) | ||
As at December 31, 2018 | ||||||||||||
Total assets | 478,187 | 448,891 | 185,298 | 71,830 | 336,932 | 1,521,138 | ||||||
Non-current assets | 235,242 | 321,802 | 121,890 | 69,263 | 26,498 | 774,695 | ||||||
Total liabilities | (79,210 | ) | (93,017 | ) | (62,243 | ) | (6,330 | ) | (274,362 | ) | (515,162 | ) |
SSR Mining Inc. | Interim Financial Statements Q1 2019 | 13 |
Fair value at March 31, 2019 | Fair value at December 31, 2018 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||
$ | $ | $ | $ | $ | $ | $ | $ | |||||||||
Recurring measurements | ||||||||||||||||
Trade receivables | — | 21,431 | — | 21,431 | — | 11,287 | — | 11,287 | ||||||||
Marketable securities | 32,634 | — | — | 32,634 | 29,542 | — | — | 29,542 | ||||||||
Other financial assets | — | — | 8,684 | 8,684 | — | — | 3,711 | 3,711 | ||||||||
Accrued liabilities | — | (2,678 | ) | — | (2,678 | ) | — | (16,649 | ) | — | (16,649 | ) | ||||
32,634 | 18,753 | 8,684 | 60,071 | 29,542 | (5,362 | ) | 3,711 | 27,891 | ||||||||
Fair values disclosed | ||||||||||||||||
Convertible notes | (343,155 | ) | — | — | (343,155 | ) | (263,675 | ) | — | — | (263,675 | ) | ||||
(343,155 | ) | — | — | (343,155 | ) | (263,675 | ) | — | — | (263,675 | ) |
Three months ended March 31, | ||||
2019 | 2018 | |||
$ | $ | |||
Trade and other receivables | (14,296 | ) | 5,581 | |
Inventory | (14,676 | ) | (18,473 | ) |
Trade and other payables | 1,831 | 1,487 | ||
Provisions | (236 | ) | (463 | ) |
(27,377 | ) | (11,868 | ) |
Three months ended March 31, | ||||
2019 | 2018 | |||
$ | $ | |||
Share-based payments | 460 | 468 | ||
Write down of fixed assets | 293 | 2,749 | ||
Other | (221 | ) | 1,106 | |
532 | 4,323 |
SSR Mining Inc. | Interim Financial Statements Q1 2019 | 14 |
Three months ended March 31, | ||||
2019 | 2018 | |||
$ | $ | |||
Transfer of share-based payment reserve upon exercise of stock options | (1,126 | ) | (244 | ) |
Transfer of equity-settled PSU's | 1,284 | — | ||
Marketable securities received from sale of exploration and evaluation properties | — | 1,303 | ||
158 | 1,059 |
SSR Mining Inc. | Interim Financial Statements Q1 2019 | 15 |
SSR Mining Inc. | MD&A First Quarter 2019 | 1 |
CONTENTS | ||
1 | ||
2 | ||
3 | ||
4 | ||
5 | ||
6 | ||
7 | ||
8 | ||
9 | ||
10 | ||
11 | ||
SSR Mining Inc. | MD&A First Quarter 2019 | 2 |
▪ | Increased production at lower costs: Achieved quarterly consolidated production of near-record 112,513 gold equivalent ounces at cash costs of $712 per payable ounce of gold sold. |
▪ | Solid financial performance: Reported positive income from mine operations at all three mines totaling $30.2 million, net income of $5.7 million and adjusted attributable net income of $17.2 million or $0.14 per share. |
▪ | Low-cost record production at the Seabee Gold Operation: Produced 31,183 ounces of gold at cash costs of $467 per payable ounce of gold sold, second lowest quarterly cash costs since acquiring the operation in 2016. |
▪ | Solid operating performance at the Marigold mine: Mined 17.3 million tonnes of material with strong gold production of 53,151 ounces at cash costs of $812 per payable ounce of gold sold. |
▪ | Doubled silver production with lower costs at Puna Operations: Produced 2.4 million ounces of silver at lower cash costs of $9.94 per payable ounce of silver sold, as we processed higher grade silver ore from the Chinchillas mine. |
▪ | Chinchillas mine ramp up substantially completed: The Chinchillas mine was substantially completed during the quarter on budget. Focus is now on achieving steady state production. |
▪ | Completed $230 million convertible notes offering: Issued $230 million aggregate principal amount of 2.50% unsecured convertible senior notes on March 19, 2019. A portion of the proceeds was used to repurchase $150 million of our outstanding $265 million 2.875% convertible notes. |
▪ | Maintained strong balance sheet: Quarter-end cash increased to $461 million. |
SSR Mining Inc. | MD&A First Quarter 2019 | 3 |
2. | OUTLOOK |
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 Cost 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 “Non-GAAP Financial Measures” in Section 8. |
(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. |
SSR Mining Inc. | MD&A First Quarter 2019 | 4 |
3. | BUSINESS OVERVIEW |
SSR Mining Inc. | MD&A First Quarter 2019 | 5 |
SSR Mining Inc. | MD&A First Quarter 2019 | 6 |
Selected Financial Data (1) | ||||||
Three months ended March 31, | ||||||
2019 | 2018 | |||||
$ | $ | |||||
Revenue | 126,250 | 97,902 | ||||
Income from mine operations (1) | 30,237 | 17,231 | ||||
Gross margin (%) | 24 | 18 | ||||
Operating income (1) | 19,628 | 7,731 | ||||
Net income (loss) | 5,732 | (2,322 | ) | |||
Basic attributable income (loss) per share | 0.05 | (0.01 | ) | |||
Adjusted attributable income before tax (1) | 21,546 | 6,736 | ||||
Adjusted attributable net income (1) | 17,200 | 5,662 | ||||
Adjusted basic attributable income per share (1) | 0.14 | 0.05 | ||||
Cash (used in) generated by operating activities | (303 | ) | 11,007 | |||
Cash (used in) generated by investing activities | (33,762 | ) | 1,387 | |||
Cash generated by financing activities | 77,441 | 1,916 | ||||
Financial Position | March 31, 2019 | December 31, 2018 | ||||
Cash and cash equivalents | 461,351 | 419,212 | ||||
Marketable securities | 32,634 | 29,542 | ||||
Current assets | 800,491 | 733,119 | ||||
Current liabilities | 183,733 | 83,254 | ||||
Working capital | 616,758 | 649,865 | ||||
Total assets | 1,607,142 | 1,521,138 |
(1) | We report non-GAAP financial measures including income from mine operations, operating income, adjusted attributable income before tax, adjusted attributable net income, and adjusted basic attributable income per share, to manage and evaluate our operating performance. See "Non-GAAP Financial Measures" in Section 8. |
SSR Mining Inc. | MD&A First Quarter 2019 | 7 |
SSR Mining Inc. | MD&A First Quarter 2019 | 8 |
4. | RESULTS OF OPERATIONS |
Three months ended | ||||||||||
Operating data | March 31 2019 | December 31 2018 | September 30 2018 | June 30 2018 | March 31 2018 | |||||
Consolidated production and sales: | ||||||||||
Gold produced (oz) | 84,334 | 74,779 | 86,290 | 73,018 | 66,676 | |||||
Silver produced ('000 oz) | 2,392 | 1,189 | 666 | 954 | 938 | |||||
Silver produced (attributable) ('000 oz) (1) | 1,794 | 892 | 500 | 716 | 704 | |||||
Zinc produced ('000 lb) (2) | 1,640 | 4,014 | 3,241 | 1,520 | — | |||||
Lead produced ('000 lb) (3) | 6,789 | 2,735 | 372 | — | — | |||||
Gold sold (oz) | 83,516 | 72,261 | 88,787 | 67,156 | 62,090 | |||||
Silver sold ('000 oz) | 927 | 932 | 623 | 1,142 | 1,064 | |||||
Silver sold (attributable) ('000 oz) (1) | 695 | 699 | 467 | 857 | 798 | |||||
Zinc sold ('000 lb) (2) | 3,218 | 1,983 | 382 | — | — | |||||
Lead sold ('000 lb) (3) | 2,977 | 1,059 | — | — | — | |||||
Cash costs ($/oz) - payable gold from Marigold mine (4) | 812 | 760 | 711 | 700 | 720 | |||||
Cash costs ($/oz) - payable gold from Seabee Gold Operation (4) | 467 | 502 | 447 | 616 | 481 | |||||
Cash costs ($/oz) - payable silver from Puna Operations (4) | 9.94 | 15.02 | 17.41 | 14.73 | 17.07 | |||||
Gold equivalent production (oz) (5) | 112,513 | 88,718 | 94,808 | 85,082 | 78,482 | |||||
Gold equivalent production (attributable) (oz) (1,5) | 105,468 | 85,236 | 92,685 | 82,072 | 75,537 | |||||
Realized gold price ($/oz) (4) | 1,303 | 1,230 | 1,208 | 1,304 | 1,334 | |||||
Realized silver price ($/oz) (4) | 15.35 | 14.42 | 15.45 | 16.49 | 16.79 | |||||
Consolidated costs: | ||||||||||
Cash costs per equivalent gold ounce sold ($/oz) (4,5) | 712 | 757 | 682 | 758 | 766 | |||||
AISC per equivalent gold ounce sold ($/oz) (4,5) | 1,128 | 1,168 | 978 | 1,121 | 1,115 | |||||
Financial data ($000s) | ||||||||||
Revenue | 126,250 | 103,712 | 115,033 | 104,028 | 97,902 | |||||
Income from mine operations | 30,237 | 16,536 | 21,875 | 21,203 | 17,231 |
(1) | Figures are on a 75% basis for attributable production and sales at Puna Operations. |
(2) | Data for zinc production and sales relate only to zinc in zinc concentrate. |
(3) | Data for lead production and sales relate only to lead in lead concentrate. |
(4) | We report the non-GAAP financial measures of realized metal price, cash costs and all-in sustaining costs ("AISC") per payable ounce of precious metals sold to manage and evaluate operating performance at our mines. For a better understanding and a reconciliation of these measures to cost of sales, as shown in our Consolidated Statements of Comprehensive Income (Loss), please refer to “Non-GAAP Financial Measures” in Section 8. |
(5) | Gold equivalent ounces have been established using the realized metal prices per payable ounce of precious metals sold in the period and applied to the recovered silver metal content produced by the mines. Zinc and lead production are not included in gold equivalent ounces produced. |
SSR Mining Inc. | MD&A First Quarter 2019 | 9 |
Three months ended | ||||||||||
Operating data | March 31 2019 | December 31 2018 | September 30 2018 | June 30 2018 | March 31 2018 | |||||
Total material mined (kt) | 17,295 | 17,039 | 21,284 | 15,958 | 16,150 | |||||
Waste removed (kt) | 11,767 | 11,361 | 14,411 | 8,083 | 9,052 | |||||
Total ore stacked (kt) | 5,528 | 5,679 | 6,873 | 7,875 | 7,099 | |||||
Strip ratio | 2.1 | 2.0 | 2.1 | 1.0 | 1.3 | |||||
Mining cost ($/t mined) | 1.73 | 1.86 | 1.51 | 1.92 | 1.80 | |||||
Gold stacked grade (g/t) | 0.34 | 0.34 | 0.32 | 0.42 | 0.37 | |||||
Processing cost ($/t processed) | 1.20 | 1.27 | 1.12 | 0.86 | 0.93 | |||||
Gold recovery (%) | 73.0 | 72.9 | 72.3 | 74.4 | 73.6 | |||||
General and admin costs ($/t processed) | 0.54 | 0.51 | 0.50 | 0.41 | 0.42 | |||||
Gold produced (oz) | 53,151 | 54,306 | 58,459 | 49,436 | 42,960 | |||||
Gold sold (oz) | 55,517 | 50,550 | 59,612 | 46,644 | 42,078 | |||||
Realized gold price ($/oz) (1) | 1,303 | 1,227 | 1,207 | 1,304 | 1,331 | |||||
Cash costs ($/oz) (1) | 812 | 760 | 711 | 700 | 720 | |||||
AISC ($/oz) (1) | 984 | 995 | 965 | 981 | 954 | |||||
Financial data ($000s) | ||||||||||
Revenue | 72,263 | 61,861 | 71,848 | 60,752 | 55,880 | |||||
Income from mine operations | 12,981 | 9,977 | 13,254 | 14,670 | 12,312 | |||||
Capital expenditures (2) | 3,167 | 8,328 | 25,461 | 14,481 | 4,665 | |||||
Capitalized stripping | 2,293 | 1,208 | 2,529 | 850 | 2,902 | |||||
Exploration expenditures (3) | 3,653 | 2,096 | 2,956 | 3,243 | 1,914 |
(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 Marigold mine. For a better understanding and a reconciliation of these measures to cost of sales, as shown in our Consolidated Statements of Income (Loss), please refer to “Non-GAAP Financial Measures” in Section 8. |
(2) | Includes expansion capital expenditure of $22 million in 2018. |
(3) | Includes capitalized and expensed exploration expenditures. |
SSR Mining Inc. | MD&A First Quarter 2019 | 10 |
SSR Mining Inc. | MD&A First Quarter 2019 | 11 |
Three months ended | ||||||||||
Operating data | March 31 2019 | December 31 2018 | September 30 2018 | June 30 2018 | March 31 2018 | |||||
Total ore milled (t) | 90,756 | 86,447 | 88,273 | 84,010 | 93,269 | |||||
Ore milled per day (t/day) | 1,008 | 940 | 959 | 923 | 1,036 | |||||
Gold mill feed grade (g/t) | 8.59 | 10.20 | 9.52 | 7.95 | 8.95 | |||||
Mining costs ($/t mined) | 52 | 57 | 48 | 60 | 59 | |||||
Processing costs ($/t processed) | 28 | 26 | 26 | 27 | 21 | |||||
Gold recovery (%) | 97.2 | 97.6 | 97.1 | 97.3 | 97.4 | |||||
General and admin costs ($/t processed) | 53 | 63 | 47 | 62 | 53 | |||||
Gold produced (oz) | 31,183 | 20,473 | 27,831 | 23,582 | 23,716 | |||||
Gold sold (oz) (1) | 27,999 | 21,711 | 29,175 | 20,512 | 20,012 | |||||
Realized gold price ($/oz) (2) | 1,302 | 1,236 | 1,210 | 1,306 | 1,340 | |||||
Cash costs ($/oz) (2) | 467 | 502 | 447 | 616 | 481 | |||||
AISC ($/oz) (2) | 973 | 743 | 596 | 854 | 896 | |||||
Financial data ($000s) | ||||||||||
Revenue | 36,431 | 26,890 | 35,270 | 26,706 | 26,789 | |||||
Income from mine operations | 13,672 | 7,347 | 11,061 | 5,703 | 6,672 | |||||
Capital expenditures | 8,772 | 625 | 968 | 1,035 | 4,426 | |||||
Capitalized development | 3,379 | 2,910 | 1,812 | 2,069 | 2,283 | |||||
Exploration expenditures (3) | 3,172 | 1,661 | 2,860 | 2,745 | 2,032 |
(1) | Beginning with the first quarter of 2018, the holder of the 3% net smelter return royalty elected to receive its royalty in-kind and we will no longer report these ounces within gold sold. |
(2) | We report the non-GAAP financial measures of realized gold price, cash costs and AISC per payable ounce of gold sold to manage and evaluate operating performance at the Seabee Gold Operation. For a better understanding and a reconciliation of these measures to cost of sales, as shown in our Consolidated Statements of Comprehensive Income (Loss), please refer to “Non-GAAP Financial Measures” in Section 8. |
(3) | Includes capitalized and expensed exploration expenditures. |
SSR Mining Inc. | MD&A First Quarter 2019 | 12 |
SSR Mining Inc. | MD&A First Quarter 2019 | 13 |
Three months ended | ||||||||||
Operating data | March 31 2019 | December 31 2018 | September 30 2018 | June 30 2018 | March 31 2018 | |||||
Total material mined (kt) (1) | 2,618 | 897 | — | — | — | |||||
Waste removed (kt) (1) | 2,469 | 696 | — | — | — | |||||
Strip ratio (1) | 16.5 | 3.5 | — | — | — | |||||
Mining costs ($/t mined) (1) | 2.74 | 2.61 | — | — | — | |||||
Ore milled (kt) | 345 | 342 | 308 | 396 | 374 | |||||
Silver mill feed grade (g/t) | 235 | 133 | 96 | 110 | 115 | |||||
Zinc mill feed grade (%) | 0.46 | 1.14 | 1.25 | 0.71 | — | |||||
Lead mill feed grade (%) (1) | 1.07 | 0.92 | — | — | — | |||||
Processing costs ($/t milled) | 29.62 | 22.18 | 20.87 | 17.26 | 15.34 | |||||
Silver recovery (%) | 91.7 | 81.5 | 69.9 | 68.1 | 67.7 | |||||
Zinc recovery (%) | 47.3 | 49.5 | 38.1 | 31.5 | — | |||||
Lead recovery (%) (1) | 83.6 | 83.1 | — | — | — | |||||
General and admin costs ($/t milled) | 8.02 | 8.16 | 7.98 | 7.07 | 6.33 | |||||
Silver produced ('000 oz) | 2,392 | 1,189 | 666 | 954 | 938 | |||||
Silver sold ('000 oz) | 927 | 932 | 623 | 1,142 | 1,064 | |||||
Zinc produced ('000 lb) (2) | 1,640 | 4,014 | 3,241 | 1,520 | — | |||||
Zinc sold ('000 lb) (2) | 3,218 | 1,983 | 382 | — | — | |||||
Lead produced ('000 lb) (3) | 6,789 | 2,735 | 372 | — | — | |||||
Lead sold ('000 lb) (3) | 2,977 | 1,059 | — | — | — | |||||
Realized silver price ($/oz) (4) | 15.35 | 14.42 | 15.45 | 16.49 | 16.79 | |||||
Cash costs ($/oz) (4) | 9.94 | 15.02 | 17.41 | 14.73 | 17.07 | |||||
AISC ($/oz) (4) | 19.76 | 20.45 | 22.39 | 17.66 | 18.37 | |||||
Financial Data ($000s) | ||||||||||
Revenue | 17,556 | 14,961 | 7,915 | 16,570 | 15,233 | |||||
Income (loss) from mine operations | 3,584 | (788 | ) | (2,440 | ) | 830 | (1,753 | ) | ||
Capital expenditures (5) | 1,543 | 3,849 | 2,390 | 2,652 | 789 | |||||
Capitalized stripping | 6,191 | — | — | — | — | |||||
Exploration expenditures (5) | 1 | 21 | 6 | 429 | 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 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 silver prices, cash costs and AISC per payable ounce of silver sold to manage and evaluate operating performance at Puna Operations. For a better understanding and a reconciliation of these measures to cost of sales, as shown in our Consolidated Statements of Income (Loss), please refer to “Non-GAAP Financial Measures” in Section 8. |
(5) | Does not include exploration or development expenditures of the Chinchillas project. |
SSR Mining Inc. | MD&A First Quarter 2019 | 14 |
SSR Mining Inc. | MD&A First Quarter 2019 | 15 |
5. | SUMMARIZED FINANCIAL RESULTS |
2019 | 2018 | 2017 | ||||||||||||||
31-Mar | 31-Dec | 30-Sep | 30-Jun | 31-Mar | 31-Dec | 30-Sep | 30-Jun | |||||||||
$000s | $000s | $000s | $000s | $000s | $000s | $000s | $000s | |||||||||
Revenue | 126,250 | 103,712 | 115,033 | 104,028 | 97,902 | 107,881 | 106,005 | 116,982 | ||||||||
Gold equivalent payable ounces sold | 93,452 | 82,439 | 96,337 | 80,937 | 74,922 | 85,883 | 86,930 | 97,039 | ||||||||
Realized gold price ($/oz) (1) | 1,303 | 1,230 | 1,208 | 1,304 | 1,334 | 1,271 | 1,270 | 1,263 | ||||||||
Realized silver price ($/oz) (1) | 15.35 | 14.42 | 15.45 | 16.49 | 16.79 | 16.96 | 16.77 | 17.31 | ||||||||
Income from mine operations | 30,237 | 16,536 | 21,875 | 21,203 | 17,231 | 21,190 | 22,522 | 29,462 | ||||||||
Income (loss) before tax | 8,897 | (7,559 | ) | 6,632 | 9,823 | (806 | ) | 13,936 | 2,175 | 40,008 | ||||||
Net income (loss) | 5,732 | (2,544 | ) | 2,228 | 2,607 | (2,322 | ) | 16,850 | 1,821 | 37,747 | ||||||
Attributable income (loss) to equity holders of SSR Mining | 6,464 | (3,486 | ) | 6,374 | 5,117 | (1,626 | ) | 15,883 | 1,067 | 37,319 | ||||||
Basic attributable income (loss) per share | 0.05 | (0.03 | ) | 0.05 | 0.04 | (0.01 | ) | 0.14 | 0.01 | 0.31 | ||||||
Diluted attributable income (loss) per share | 0.05 | (0.03 | ) | 0.05 | 0.04 | (0.01 | ) | 0.14 | 0.01 | 0.31 | ||||||
Cash and cash equivalents | 461,351 | 419,212 | 474,511 | 493,642 | 472,901 | 459,864 | 424,025 | 353,530 | ||||||||
Total assets | 1,607,142 | 1,521,138 | 1,503,717 | 1,504,987 | 1,490,123 | 1,537,454 | 1,499,220 | 1,514,567 | ||||||||
Working capital (1) | 616,758 | 649,865 | 649,448 | 671,967 | 685,731 | 728,131 | 684,077 | 677,811 | ||||||||
Non-current financial liabilities | 167,643 | 247,551 | 243,858 | 240,234 | 236,685 | 233,180 | 229,810 | 226,500 |
(1) | We report the non-GAAP financial measures realized metal prices per payable ounce of precious metals sold and working capital to manage and evaluate operating performance at our mines. For a better understanding of these measures, please refer to “Non-GAAP Financial Measures” in section 8. |
SSR Mining Inc. | MD&A First Quarter 2019 | 16 |
▪ | At the Marigold mine, we recognized revenues of $72.3 million in the first quarter of 2019 from the sale of 55,486 payable ounces of gold at an average realized price of $1,303 per payable ounce sold. In the first quarter of 2018, revenues were $55.9 million from the sale of 42,055 payable ounces of gold at an average realized gold price of $1,331 per payable ounce sold. Higher revenues in the first quarter of 2019 compared to the same period in 2018 were due to higher sales resulting from higher production partially offset by lower realized gold price. |
▪ | At the Seabee Gold Operation, we recognized revenues of $36.4 million in the first quarter of 2019 from the sale of 27,985 payable ounces of gold at an average realized gold price of $1,302 per payable ounce sold. In the first quarter of 2018, revenues were $26.8 million from the sale of 20,000 payable ounces of gold at an average realized gold price of $1,340 per payable ounce sold. Sales quantities in the first quarter of 2019 were 40% higher than in the comparative quarter due to higher production. Comparative first quarter 2019 revenue was impacted by lower realized gold price. |
▪ | At Puna Operations, we recognized revenues of $17.6 million in the first quarter of 2019, from the sale of 0.8 million payable ounces of silver at an average realized price of $15.35 per ounce compared to revenue of $15.2 million recognized in the same quarter of 2018 from the sale of 1.0 million payable ounces of silver at an average realized price of $16.79 per ounce. At March 31, 2019, sales contracts containing 0.8 million ounces of silver were subject to final price settlement over the next four months. |
SSR Mining Inc. | MD&A First Quarter 2019 | 17 |
▪ | At the Marigold mine, cost of sales in the first quarter of 2019 was $59.3 million, generating income from mine operations of $13.0 million, equal to a gross margin of 18.0%. This compares to cost of sales of $43.6 million in the first quarter of 2018, generating income from mine operations of $12.3 million and a gross margin of 21.7%. The lower margin was due to lower realized gold prices and higher unit cost of inventory partially off-set by the lower depreciation and depletion per gold ounce sold. |
▪ | At the Seabee Gold Operation, cost of sales in the first quarter of 2019 was $22.8 million, generating income from mine operations of $13.7 million, equal to a gross margin of 37.5%. In the comparative period of 2018, cost of sales was $20.1 million, generating income from mine operations of $6.7 million, equal to a gross margin of 24.9%. The higher margin is due to lower unit cost of inventory, lower depreciation and depletion per gold ounce sold partially off-set by lower realized price of gold in the current period. |
▪ | At Puna Operations, cost of sales in the first quarter of 2019 was $14.0 million, generating income from mine operations of $3.6 million, equal to a gross margin of 20.4%. In the comparative period of 2018, cost of sales was $17.0 million, resulting in a loss from mine operations of $1.8 million, equal to a negative gross margin of 11.5%. The higher margin is mainly due to lower unit costs of inventory partially off-set by a lower realized silver price in the current period. |
SSR Mining Inc. | MD&A First Quarter 2019 | 18 |
As at March 31 | As at December 31, | |||||
2019 | 2018 | |||||
Cash and cash equivalents | 461,351 | 419,212 | ||||
Working capital (1) | 616,758 | 649,865 | ||||
Total assets | 1,607,142 | 1,521,138 | ||||
Non-current financial liabilities | 167,643 | 247,551 | ||||
For the period ended March 31, | ||||||
2019 | 2018 | |||||
Cash (used in) generated by operating activities | (303 | ) | 11,007 | |||
Cash (used in) generated by investing activities | (33,762 | ) | 1,387 | |||
Cash generated by financing activities | 77,441 | 1,916 |
SSR Mining Inc. | MD&A First Quarter 2019 | 19 |
▪ | safeguard our ability to continue as a going concern in order to develop and operate our current projects and pursue strategic growth initiatives; and |
▪ | maintain a flexible capital structure which lowers our cost of capital. |
Number of shares | Exercise price | Remaining life | ||
C$ | (years) | |||
Capital stock | 121,220,088 | |||
Stock options | 2,617,657 | 5.62 - 24.41 | 0.06 - 6.90 | |
Other share-based compensation awards | 917,180 | 0.90 - 9.66 | ||
Fully diluted | 124,754,925 |
SSR Mining Inc. | MD&A First Quarter 2019 | 20 |
SSR Mining Inc. | MD&A First Quarter 2019 | 21 |
SSR Mining Inc. | MD&A First Quarter 2019 | 22 |
7. | RISKS AND UNCERTAINTIES |
8. | NON-GAAP FINANCIAL MEASURES |
SSR Mining Inc. | MD&A First Quarter 2019 | 23 |
Q1 | Q4 | Q3 | Q2 | Q1 | ||||||
2019 | 2018 | 2018 | 2018 | 2018 | ||||||
$000s | $000s | $000s | $000s | $000s | ||||||
Marigold mine | ||||||||||
Cost of sales (A) | 59,282 | 51,884 | 58,594 | 46,082 | 43,568 | |||||
Add: Treatment and refining costs | 73 | 78 | 58 | 122 | 114 | |||||
Less: By-product revenue | (14 | ) | (11 | ) | (13 | ) | (24 | ) | (16 | ) |
Less: Depreciation, depletion and amortization | (14,290 | ) | (13,571 | ) | (16,266 | ) | (13,539 | ) | (13,372 | ) |
Cash costs | 45,051 | 38,380 | 42,373 | 32,641 | 30,294 | |||||
Sustaining capital expenditure | 3,167 | 8,328 | 9,343 | 8,626 | 4,665 | |||||
Exploration and evaluation costs (sustaining) | 3,653 | 2,096 | 2,956 | 3,243 | 1,914 | |||||
Reclamation cost | 429 | 253 | 309 | 376 | 358 | |||||
Capitalized stripping costs | 2,293 | 1,208 | 2,529 | 850 | 2,902 | |||||
AISC | 54,593 | 50,265 | 57,510 | 45,736 | 40,133 | |||||
Seabee Gold Operation | ||||||||||
Cost of sales (B) | 22,759 | 19,544 | 24,208 | 21,003 | 20,117 | |||||
Add: Treatment and refining costs | 33 | 46 | 40 | 41 | 39 | |||||
Less: By-product revenue | (8 | ) | (10 | ) | (12 | ) | (8 | ) | (16 | ) |
Less: Depreciation, depletion and amortization | (9,712 | ) | (8,678 | ) | (11,216 | ) | (8,411 | ) | (10,513 | ) |
Cash costs | 13,072 | 10,902 | 13,020 | 12,625 | 9,627 | |||||
Sustaining capital expenditure | 8,772 | 624 | 968 | 1,035 | 4,426 | |||||
Capitalized development | 3,379 | 2,910 | 1,812 | 2,069 | 2,283 | |||||
Exploration and evaluation costs (sustaining) | 1,979 | 1,646 | 1,557 | 1,749 | 1,551 | |||||
Reclamation cost | 34 | 34 | 33 | 34 | 34 | |||||
AISC | 27,236 | 16,116 | 17,390 | 17,512 | 17,921 | |||||
Puna Operations (1) | ||||||||||
Cost of sales (C) | 13,972 | 15,749 | 10,355 | 15,740 | 16,986 | |||||
Add: Treatment and refining costs | 1,709 | 807 | 820 | 1,228 | 1,522 | |||||
Less: By-product revenue | (6,116 | ) | (2,719 | ) | (360 | ) | — | — | ||
Less: Depreciation, depletion and amortization | (1,146 | ) | (752 | ) | (478 | ) | (870 | ) | (1,053 | ) |
Cash costs | 8,419 | 13,085 | 10,337 | 16,098 | 17,455 | |||||
Sustaining capital expenditure | 1,543 | 3,849 | 2,390 | 2,652 | 789 | |||||
Exploration and evaluation costs (sustaining) | 1 | — | — | — | — | |||||
Reclamation cost | 590 | 888 | 567 | 553 | 540 | |||||
Capitalized stripping costs | 6,191 | — | — | — | — | |||||
AISC | 16,744 | 17,822 | 13,294 | 19,303 | 18,784 | |||||
Cost of sales, per consolidated statement of income (loss) (A+B+C) | 96,013 | 87,177 | 93,157 | 82,825 | 80,671 | |||||
AISC (total for all mines) | 98,573 | 84,203 | 88,194 | 82,551 | 76,838 | |||||
General and administrative costs | 6,871 | 12,108 | 5,985 | 8,179 | 6,669 | |||||
Consolidated AISC | 105,444 | 96,311 | 94,179 | 90,730 | 83,507 | |||||
SSR Mining Inc. | MD&A First Quarter 2019 | 24 |
Q1 | Q4 | Q3 | Q2 | Q1 | ||||||
2019 | 2018 | 2018 | 2018 | 2018 | ||||||
$000s | $000s | $000s | $000s | $000s | ||||||
Marigold mine | ||||||||||
Payable ounces of gold sold (oz) | 55,486 | 50,524 | 59,583 | 46,618 | 42,055 | |||||
Cash costs per payable gold ounce sold ($/oz) | 812 | 760 | 711 | 700 | 720 | |||||
AISC per payable gold ounce sold ($/oz) | 984 | 995 | 965 | 981 | 954 | |||||
Seabee Gold Operation | ||||||||||
Payable ounces of gold sold (oz) | 27,985 | 21,700 | 29,160 | 20,500 | 20,000 | |||||
Cash costs per payable gold ounce sold ($/oz) | 467 | 502 | 447 | 616 | 481 | |||||
AISC per payable gold ounce sold ($/oz) | 973 | 743 | 596 | 854 | 896 | |||||
Puna Operations (1) | ||||||||||
Payable ounces of silver sold (oz) | 847,286 | 871,303 | 593,739 | 1,092,778 | 1,022,275 | |||||
Cash costs per payable silver ounce sold ($/oz) | 9.94 | 15.02 | 17.41 | 14.73 | 17.07 | |||||
AISC per payable silver ounce sold ($/oz) | 19.76 | 20.45 | 22.39 | 17.66 | 18.37 | |||||
Realized gold price ($/oz) | 1,303 | 1,230 | 1,208 | 1,304 | 1,334 | |||||
Realized silver price ($/oz) | 15.35 | 14.42 | 15.45 | 16.49 | 16.79 | |||||
Precious metals equivalency | ||||||||||
Equivalent payable gold ounces sold (2) | 93,452 | 82,439 | 96,337 | 80,937 | 74,922 | |||||
Cash costs per equivalent payable gold ounce sold ($/oz) | 712 | 757 | 682 | 758 | 766 | |||||
Consolidated AISC per equivalent payable gold ounce sold ($/oz) | 1,128 | 1,168 | 978 | 1,121 | 1,115 |
SSR Mining Inc. | MD&A First Quarter 2019 | 25 |
Three months ended March 31, | ||||
2019 | 2018 | |||
$000s | $000s | |||
Income (loss) before income tax | 8,897 | (806 | ) | |
Non-controlling interest | 732 | 696 | ||
Income (loss) before tax attributable to our equity holders | 9,629 | (110 | ) | |
Adjusted for: | ||||
Non-cash finance income and expense | 4,999 | 5,105 | ||
Non-cash foreign exchange loss (gain) | 296 | (2,543 | ) | |
Loss on convertible notes | 5,423 | — | ||
Other items | 1,199 | 4,284 | ||
Adjusted income before tax attributable to our equity holders | 21,546 | 6,736 | ||
Income tax expense per consolidated statement of income (loss) | (3,165 | ) | (1,516 | ) |
Adjusted for: | ||||
Change in prior period estimates | 209 | 529 | ||
Change in tax rate | — | (87 | ) | |
Tax impact on the redemption of 2013 convertible notes | (1,687 | ) | — | |
Other items | 297 | — | ||
Adjusted income tax expense | (4,346 | ) | (1,074 | ) |
Adjusted net income attributable to our equity holders | 17,200 | 5,662 | ||
Weighted average shares outstanding (000's) | 121,023 | 119,882 | ||
Adjusted basic income per share attributable to our equity holders ($) | 0.14 | 0.05 |
SSR Mining Inc. | MD&A First Quarter 2019 | 26 |
9. | CRITICAL ACCOUNTING POLICIES AND ESTIMATES |
10. | INTERNAL CONTROL OVER FINANCIAL REPORTING AND DISCLOSURE CONTROLS AND PROCEDURES |
SSR Mining Inc. | MD&A First Quarter 2019 | 27 |
11. | CAUTIONARY NOTES REGARDING FORWARD-LOOKING STATEMENTS AND MINERAL RESERVES AND MINERAL RESOURCES ESTIMATES |
SSR Mining Inc. | MD&A First Quarter 2019 | 28 |
SSR Mining Inc. | MD&A First Quarter 2019 | 29 |
SSR Mining Inc. | MD&A First Quarter 2019 | 30 |
1. | Review: I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of SSR Mining Inc. (the “issuer”) for the interim period ended March 31, 2019. |
2. | No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings. |
3. | Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings. |
4. | Responsibility: The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, for the issuer. |
5. | Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer's other certifying officer(s) and I have, as at the end of the period covered by the interim filings |
(a) | designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that |
(i) | material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and |
(ii) | information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and |
(b) | designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer's GAAP. |
5.1 | Control framework: The control framework the issuer's other certifying officer(s) and I used to design the issuer's ICFR is based on criteria established in “Internal Control - Integrated Framework (2013)” issued by The Committee of Sponsoring Organizations of the Treadway Commission (COSO). |
5.2 | N/A |
5.3 | N/A |
6. | Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer's ICFR that occurred during the period beginning on January 1, 2019 and ended on March 31, 2019 that has materially affected, or is reasonably likely to materially affect, the issuer's ICFR. |
1. | Review: I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of SSR Mining Inc. (the “issuer”) for the interim period ended March 31, 2019. |
2. | No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings. |
3. | Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings. |
4. | Responsibility: The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, for the issuer. |
5. | Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer's other certifying officer(s) and I have, as at the end of the period covered by the interim filings |
(a) | designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that |
(i) | material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and |
(ii) | information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and |
(b) | designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP. |
5.1 | Control framework: The control framework the issuer's other certifying officer(s) and I used to design the issuer's ICFR is based on criteria established in “Internal Control - Integrated Framework (2013)” issued by The Committee of Sponsoring Organizations of the Treadway Commission (COSO). |
5.2 | N/A |
5.3 | N/A |
6. | Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer's ICFR that occurred during the period beginning on January 1, 2019 and ended on March 31, 2019 that has materially affected, or is reasonably likely to materially affect, the issuer's ICFR. |
News Release 19-09 |
▪ | Increased production at lower costs: Achieved quarterly consolidated production of near-record 112,513 gold equivalent ounces at cash costs of $712 per payable ounce of gold sold. |
▪ | Solid financial performance: Reported positive income from mine operations at all three mines totaling $30.2 million, net income of $5.7 million and adjusted attributable net income of $17.2 million or $0.14 per share. |
▪ | Low-cost record production at the Seabee Gold Operation: Produced 31,183 ounces of gold at cash costs of $467 per payable ounce of gold sold, second lowest quarterly cash costs since acquiring the operation in 2016. |
▪ | Solid operating performance at the Marigold mine: Mined 17.3 million tonnes of material with strong gold production of 53,151 ounces at cash costs of $812 per payable ounce of gold sold. |
▪ | Doubled silver production with lower costs at Puna Operations: Produced 2.4 million ounces of silver at lower cash costs of $9.94 per payable ounce of silver sold, as we processed higher grade silver ore from the Chinchillas mine. |
▪ | Chinchillas mine ramp up substantially completed: The Chinchillas mine was substantially completed during the quarter on budget. Focus is now on achieving steady state production. |
▪ | Completed $230 million convertible notes offering: Issued $230 million aggregate principal amount of 2.50% unsecured convertible senior notes on March 19, 2019. A portion of the proceeds was used to repurchase $150 million of our outstanding $265 million 2.875% convertible notes. |
SSR Mining Inc. | PHONE +1 604.689.3846 | Suite 800 - 1055 Dunsmuir Street |
www.ssrmining.com | TOLL FREE +1 888.338.0046 | PO Box 49088 |
Vancouver, BC, Canada V7X 1G4 |
▪ | Maintained strong balance sheet: Quarter-end cash increased to $461 million. |
SSR Mining Inc. | PAGE 2 |
Three months ended | ||||||||||
Operating data | March 31 2019 | December 31 2018 | September 30 2018 | June 30 2018 | March 31 2018 | |||||
Total material mined (kt) | 17,295 | 17,039 | 21,284 | 15,958 | 16,150 | |||||
Waste removed (kt) | 11,767 | 11,361 | 14,411 | 8,083 | 9,052 | |||||
Total ore stacked (kt) | 5,528 | 5,679 | 6,873 | 7,875 | 7,099 | |||||
Strip ratio | 2.1 | 2.0 | 2.1 | 1.0 | 1.3 | |||||
Mining costs ($/t mined) | 1.73 | 1.86 | 1.51 | 1.92 | 1.80 | |||||
Gold stacked grade (g/t) | 0.34 | 0.34 | 0.32 | 0.42 | 0.37 | |||||
Processing costs ($/t processed) | 1.20 | 1.27 | 1.12 | 0.86 | 0.93 | |||||
Gold recovery (%) | 73.0 | 72.9 | 72.3 | 74.4 | 73.6 | |||||
General and admin costs ($/t processed) | 0.54 | 0.51 | 0.50 | 0.41 | 0.42 | |||||
Gold produced (oz) | 53,151 | 54,306 | 58,459 | 49,436 | 42,960 | |||||
Gold sold (oz) | 55,517 | 50,550 | 59,612 | 46,644 | 42,078 | |||||
Realized gold price ($/oz) (1) | 1,303 | 1,227 | 1,207 | 1,304 | 1,331 | |||||
Cash costs ($/oz) (1) | 812 | 760 | 711 | 700 | 720 | |||||
AISC ($/oz) (1) | 984 | 995 | 965 | 981 | 954 | |||||
Financial data ($000s) | ||||||||||
Revenue | 72,263 | 61,861 | 71,848 | 60,752 | 55,880 | |||||
Income from mine operations | 12,981 | 9,977 | 13,254 | 14,670 | 12,312 | |||||
Capital expenditures (2) | 3,167 | 8,328 | 25,461 | 14,481 | 4,665 | |||||
Capitalized stripping | 2,293 | 1,208 | 2,529 | 850 | 2,902 | |||||
Exploration expenditures (3) | 3,653 | 2,096 | 2,956 | 3,243 | 1,914 |
(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 $22 million in 2018. |
(3) | Includes capitalized and expensed exploration expenditures. |
SSR Mining Inc. | PAGE 3 |
SSR Mining Inc. | PAGE 4 |
Three months ended | ||||||||||
Operating data | March 31 2019 | December 31 2018 | September 30 2018 | June 30 2018 | March 31 2018 | |||||
Total ore milled (t) | 90,756 | 86,447 | 88,273 | 84,010 | 93,269 | |||||
Ore milled per day (t/day) | 1,008 | 940 | 959 | 923 | 1,036 | |||||
Gold mill feed grade (g/t) | 8.59 | 10.20 | 9.52 | 7.95 | 8.95 | |||||
Mining costs ($/t mined) | 52 | 57 | 48 | 60 | 59 | |||||
Processing costs ($/t processed) | 28 | 26 | 26 | 27 | 21 | |||||
Gold recovery (%) | 97.2 | 97.6 | 97.1 | 97.3 | 97.4 | |||||
General and admin costs ($/t processed) | 53 | 63 | 47 | 62 | 53 | |||||
Gold produced (oz) | 31,183 | 20,473 | 27,831 | 23,582 | 23,716 | |||||
Gold sold (oz) (1) | 27,999 | 21,711 | 29,175 | 20,512 | 20,012 | |||||
Realized gold price ($/oz) (2) | 1,302 | 1,236 | 1,210 | 1,306 | 1,340 | |||||
Cash costs ($/oz) (2) | 467 | 502 | 447 | 616 | 481 | |||||
AISC ($/oz) (2) | 973 | 743 | 596 | 854 | 896 | |||||
Financial data ($000s) | ||||||||||
Revenue | 36,431 | 26,890 | 35,270 | 26,706 | 26,789 | |||||
Income from mine operations | 13,672 | 7,347 | 11,061 | 5,703 | 6,672 | |||||
Capital expenditures | 8,772 | 625 | 968 | 1,035 | 4,426 | |||||
Capitalized development | 3,379 | 2,910 | 1,812 | 2,069 | 2,283 | |||||
Exploration expenditures (3) | 3,172 | 1,661 | 2,860 | 2,745 | 2,032 |
(1) | Beginning with the first quarter of 2018, the holder of the 3% net smelter return royalty elected to receive its royalty in-kind and we will no longer report these ounces within gold sold. |
(2) | We report the non-GAAP financial measures of realized gold price, cash costs and AISC per payable ounce of gold sold to manage and evaluate operating performance at the Seabee Gold Operation. See “Cautionary Note Regarding Non-GAAP Measures”. |
(3) | Includes capitalized and expensed exploration expenditures. |
SSR Mining Inc. | PAGE 5 |
SSR Mining Inc. | PAGE 6 |
Three months ended | ||||||||||
Operating data | March 31 2019 | December 31 2018 | September 30 2018 | June 30 2018 | March 31 2018 | |||||
Total material mined (kt) (1) | 2,618 | 897 | — | — | — | |||||
Waste removed (kt) (1) | 2,469 | 696 | — | — | — | |||||
Strip ratio (1) | 16.5 | 3.5 | — | — | — | |||||
Mining costs ($/t mined) (1) | 2.74 | 2.61 | — | — | — | |||||
Ore milled (kt) | 345 | 342 | 308 | 396 | 374 | |||||
Silver mill feed grade (g/t) | 235 | 133 | 96 | 110 | 115 | |||||
Zinc mill feed grade (%) | 0.46 | 1.14 | 1.25 | 0.71 | — | |||||
Lead mill feed grade (%) (1) | 1.07 | 0.92 | — | — | — | |||||
Processing costs ($/t milled) | 29.62 | 22.18 | 20.87 | 17.26 | 15.34 | |||||
Silver recovery (%) | 91.7 | 81.5 | 69.9 | 68.1 | 67.7 | |||||
Zinc recovery (%) | 47.3 | 49.5 | 38.1 | 31.5 | — | |||||
Lead recovery (%) (1) | 83.6 | 83.1 | — | — | — | |||||
General and admin costs ($/t milled) | 8.02 | 8.16 | 7.98 | 7.07 | 6.33 | |||||
Silver produced ('000 oz) | 2,392 | 1,189 | 666 | 954 | 938 | |||||
Silver sold ('000 oz) | 927 | 932 | 623 | 1,142 | 1,064 | |||||
Zinc produced ('000 lb) (2) | 1,640 | 4,014 | 3,241 | 1,520 | — | |||||
Zinc sold ('000 lb) (2) | 3,218 | 1,983 | 382 | — | — | |||||
Lead produced ('000 lb) (3) | 6,789 | 2,735 | 372 | — | — | |||||
Lead sold ('000 lb) (3) | 2,977 | 1,059 | — | — | — | |||||
Realized silver price ($/oz) (4) | 15.35 | 14.42 | 15.45 | 16.49 | 16.79 | |||||
Cash costs ($/oz) (4) | 9.94 | 15.02 | 17.41 | 14.73 | 17.07 | |||||
AISC ($/oz) (4) | 19.76 | 20.45 | 22.39 | 17.66 | 18.37 | |||||
Financial Data ($000s) | ||||||||||
Revenue | 17,556 | 14,961 | 7,915 | 16,570 | 15,233 | |||||
Income (loss) from mine operations | 3,584 | (788 | ) | (2,440 | ) | 830 | (1,753 | ) | ||
Capital expenditures | 1,543 | 3,849 | 2,390 | 2,652 | 789 | |||||
Capitalized stripping | 6,191 | — | — | — | — | |||||
Exploration expenditures (5) | 1 | 21 | 6 | 429 | 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 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 silver price, 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 expenditures of the Chinchillas project. |
SSR Mining Inc. | PAGE 7 |
SSR Mining Inc. | PAGE 8 |
SSR Mining Inc. | PAGE 9 |
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 Cost 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. |
SSR Mining Inc. | PAGE 10 |
Selected Financial Data (1) | ||||||
Three months ended March 31, | ||||||
2019 | 2018 | |||||
$ | $ | |||||
Revenue | 126,250 | 97,902 | ||||
Income from mine operations (1) | 30,237 | 17,231 | ||||
Gross margin (%) | 24 | 18 | ||||
Operating income (1) | 19,628 | 7,731 | ||||
Net income (loss) | 5,732 | (2,322 | ) | |||
Basic attributable income (loss) per share | 0.05 | (0.01 | ) | |||
Adjusted attributable income before tax (1) | 21,546 | 6,736 | ||||
Adjusted attributable net income (1) | 17,200 | 5,662 | ||||
Adjusted basic attributable income per share (1) | 0.14 | 0.05 | ||||
Cash(used in) generated by operating activities | (303 | ) | 11,007 | |||
Cash (used in) generated by investing activities | (33,762 | ) | 1,387 | |||
Cash generated by financing activities | 77,441 | 1,916 | ||||
Financial Position | March 31, 2019 | December 31, 2018 | ||||
Cash and cash equivalents | 461,351 | 419,212 | ||||
Marketable securities | 32,634 | 29,542 | ||||
Current assets | 800,491 | 733,119 | ||||
Current liabilities | 183,733 | 83,254 | ||||
Working capital | 616,758 | 649,865 | ||||
Total assets | 1,607,142 | 1,521,138 |
(1) | We report non-GAAP measures including income from mine operations, operating income, adjusted attributable income before tax, adjusted attributable net income, and adjusted basic attributable income per share, to manage and evaluate our operating performance. Please see “Cautionary Note Regarding Non-GAAP Measures”. |
SSR Mining Inc. | PAGE 11 |
SSR Mining Inc. | PAGE 12 |
▪ | Conference call and webcast: Friday, May 10, 2019, at 11:00 a.m. EDT. |
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. |
Toll-free in U.S. and Canada: | +1 (855) 669-9658, replay code 3089 | |
All other callers: | +1 (412) 317-0088, replay code 3089 |
SSR Mining Inc. | PAGE 13 |
SSR Mining Inc. | PAGE 14 |
SSR Mining Inc. | PAGE 15 |
SSR Mining Inc. | PAGE 16 |
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