VANCOUVER, Nov. 7, 2017
/CNW/ - SSR Mining Inc. (NASDAQ: SSRM) (TSX: SSRM) ("SSR
Mining") reports consolidated financial results for the third
quarter ended September 30, 2017.
Paul Benson, President and CEO
said, "Operationally this was a solid quarter as our portfolio
generated cash from operations of over $30
million which, combined with the proceeds of a partial sale
of our interest in Pretium, lifted our cash balance to $424 million. With strong performance through the
first nine months, we remain on track to meet our corporate-level
annual guidance. Through the quarter we hit milestones important
for future growth with the release of the Seabee PEA, the
commencement of the Marigold equipment replacement study and
ongoing positive exploration results, all of which were highlighted
at our inaugural investor day."
Third Quarter 2017 Highlights:
(All figures are in
U.S. dollars unless otherwise noted
- Increased cash position: Quarter-end cash increased to
$424.0 million, up $70.5 million over the previous quarter, marking
this as the eighth consecutive quarter of increased cash.
- Solid operating cash flow: Cash generated by operating
activities totaled $30.3 million for
the quarter and $99.6 million
year-to-date.
- Net Income: Attributable net income for the quarter was
$1.1 million, or $0.01 per share, with adjusted net income
totaling $4.4 million, or
$0.04 per share.
- Delivered Seabee mine expansion plan: Seabee PEA
evaluates sustained milling rate of 1,050 tonnes per day for a
seven-year mine life with average 100,000 ounces of gold per year,
a 29% increase from 2016 production, at lower cash costs over the
period from 2018 to 2023.
- Strong operating performance at Seabee: Sustained daily
throughput and recovery rates generated solid gold production,
positioning Seabee to achieve previously improved annual production
and cash costs guidance.
- Record quarterly material moved at Marigold: Mined over
20 million tonnes of material at $1.52 per tonne during the quarter with ore
stacked increasing to over 7 million tonnes.
- Puna Operations exceeds expectations: The Pirquitas mill
operated at a rate of approximately 5,000 tonnes per day, with
higher than expected grades resulting in production of 1.5 million
ounces of silver during the quarter and 5.0 million ounces
year-to-date, surpassing the lower end of annual production
guidance. The operation is on track to achieve annual cash costs
guidance.
Marigold mine, U.S.
|
Three months
ended
|
Operating
data
|
September 30
2017
|
June 30
2017
|
March 31
2017
|
December 31
2016
|
September 30
2016
|
Total material mined
(kt)
|
20,311
|
17,985
|
16,736
|
19,559
|
19,558
|
Waste removed
(kt)
|
13,149
|
11,075
|
11,062
|
13,123
|
14,741
|
Total ore stacked
(kt)
|
7,162
|
6,910
|
5,674
|
6,436
|
4,817
|
Strip
ratio
|
1.8
|
1.6
|
1.9
|
2.0
|
3.1
|
Mining costs ($/t
mined)
|
1.52
|
1.67
|
1.65
|
1.52
|
1.48
|
Gold stacked grade
(g/t)
|
0.31
|
0.31
|
0.42
|
0.48
|
0.42
|
Processing costs ($/t
processed)
|
0.89
|
0.82
|
0.89
|
0.80
|
0.95
|
Gold recovery
(%)
|
72.0
|
73.0
|
74.0
|
75.0
|
71.0
|
General and admin
costs ($/t processed)
|
0.40
|
0.42
|
0.52
|
0.46
|
0.56
|
|
|
|
|
Gold produced
(oz)
|
38,699
|
55,558
|
55,215
|
59,945
|
47,456
|
Gold sold
(oz)
|
38,818
|
57,426
|
52,528
|
61,308
|
47,278
|
|
|
|
|
Realized gold price
($/oz) (1)
|
1,270
|
1,265
|
1,214
|
1,247
|
1,330
|
|
|
|
|
Cash costs ($/oz)
(1)
|
684
|
632
|
585
|
585
|
636
|
AISC ($/oz)
(1)
|
979
|
833
|
799
|
835
|
1,139
|
|
|
|
|
Financial data
($000s)
|
|
|
|
Revenue
|
49,395
|
72,451
|
63,762
|
77,047
|
62,831
|
Income from mine
operations
|
11,189
|
21,373
|
21,327
|
28,648
|
23,156
|
Capital
expenditures
|
3,855
|
5,272
|
3,043
|
3,271
|
8,310
|
Capitalized
stripping
|
6,056
|
4,350
|
6,745
|
10,171
|
13,787
|
Exploration
expenditures (2)
|
1,130
|
1,538
|
1,024
|
1,276
|
1,145
|
|
|
(1)
|
We report the
non-GAAP financial measures of realized gold prices, cash
costs and all-in sustaining costs ("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 comprehensive income (loss), please refer to
"Non-GAAP and Additional GAAP Financial Measures" in section 12 of
our management's discussion and analysis of the financial position
and results of operation for the three and nine months ended
September 30, 2017 ("MD&A").
|
(2)
|
Includes capitalized
and expensed exploration expenses.
|
Mine production
In the third quarter of 2017, the Marigold mine produced 38,699
ounces of gold, 30.3% less than the previous quarter due to lower
grades of ore stacked as we began mining the upper benches of the
current phase of the Mackay pit. Additionally, within these upper
benches more clay ore was encountered than anticipated which
negatively impacted the leaching cycle as the solution pumping rate
was decreased to eliminate ponding in certain low permeability
areas on the pads.
A quarterly record of 20.3 million tonnes of material was mined
in the third quarter of 2017, 13% more than the second quarter of
2017, primarily due to planned shorter hauls for waste.
Approximately 7.2 million tonnes of ore were delivered to the heap
leach pads at an average gold grade of 0.31 g/t. This compares to
6.9 million tonnes of ore delivered to the heap leach pads at a
gold grade of 0.31 g/t in the second quarter of 2017. The strip
ratio was 1.8:1 for the quarter, a 13% increase compared to the
previous quarter.
Mine operating costs
Cash costs and AISC per payable ounce of gold sold are
non-GAAP financial measures. Please see "Cautionary Note Regarding
Non-GAAP Measures".
Cash costs, which include all costs of inventory, refining costs
and royalties, of $684 per payable
ounce of gold sold in the third quarter of 2017 was 8% higher than
the previous quarter due to the higher cost per ounce placed on the
leach pads as a result of continued lower grades mined. Total
mining costs of $1.52 per tonne were
9% lower in the third quarter versus the second quarter due to more
material mined as a result of shorter planned waste hauls and
higher availability of loading equipment. Processing unit costs
were 9% higher in the third quarter of 2017 than in the second
quarter of 2017 due to increased reagent consumption as a result of
increased barren solution flow and higher tonnes stacked. General
and administrative unit costs were 5% lower in the third quarter of
2017 than in the second quarter due to the increase in tonnes
stacked but were comparable on an absolute basis.
AISC of $979 per payable ounce of
gold sold in the third quarter of 2017 increased from $833 in the second quarter of 2017 predominantly
due to higher cash costs and higher capital expenditures, partially
offset by lower exploration expenditures, over fewer ounces
sold.
Mine sales
A total of 38,818 ounces of gold were sold at an average price
of $1,270 per ounce during the third
quarter of 2017, compared to 57,426 ounces of gold sold at
comparable average price of $1,265
per ounce during the second quarter of 2017.
Exploration
Exploration activities continued with the objective of Mineral
Reserve growth in proximity to, and within, existing open pits.
During the third quarter of 2017, we completed 13,167 meters of
drilling in 39 reverse circulation ("RC") holes at the Mackay Pit,
East Basalt, Valmy, Red Dot and
North Red Dot targets. Total RC drilling to the end of the third
quarter amounts to 38,752 meters in 138 RC holes.
On September 5, 2017, we published
exploration drill results for the period from April 1, 2017 to July 31,
2017. Since that period we have received further positive
assay results that should contribute to Mineral Resource addition
at Red Dot, including drillhole MRA6517, which intersected 47.2
meters at a grade of 0.79 g/t gold.
In the third quarter of 2017, we also received results that
indicate a higher grade zone exists 200 meters west of our current
Mineral Resource pit at Red Dot. At our North Red Dot target,
drillhole MRA6512 intersected 50.3 meters at a grade of 0.95 g/t
gold within an area currently modeled as narrow lower grade
mineralization.
See in this news release Table 1 for selected exploration
results, Table 3 for drill results and Table 4 for a list of all
drillholes completed for the relevant period.
Seabee Gold Operation, Canada
|
Three months
ended
|
Operating
data
|
September 30
2017
|
June 30
2017
|
March 31
2017
|
December 31
2016
|
September 30
2016
|
Total ore milled
(t)
|
84,315
|
84,469
|
72,394
|
84,526
|
82,756
|
Ore milled per day
(t/day)
|
916
|
928
|
804
|
919
|
900
|
Gold mill feed grade
(g/t)
|
7.03
|
7.97
|
9.22
|
7.40
|
7.40
|
Mining costs ($/t
mined)
|
74
|
60
|
68
|
62
|
58
|
Processing costs ($/t
processed)
|
22
|
20
|
23
|
19
|
19
|
Gold recovery
(%)
|
97.2
|
97.3
|
97.7
|
97.0
|
96.5
|
General and admin
costs ($/t
processed)
|
53
|
50
|
59
|
44
|
37
|
|
|
|
|
Gold produced
(oz)
|
18,058
|
20,690
|
21,023
|
19,711
|
20,142
|
Gold sold
(oz)
|
21,798
|
17,909
|
22,411
|
17,229
|
21,911
|
|
|
|
|
Realized gold price
($/oz) (1)
|
1,269
|
1,257
|
1,233
|
1,230
|
1,334
|
|
|
|
|
Cash costs ($/oz)
(1, 3)
|
634
|
592
|
574
|
595
|
661
|
AISC ($/oz) (1,
3)
|
775
|
831
|
990
|
833
|
841
|
|
|
|
|
Financial data
($000s)
|
|
|
|
Revenue
|
27,652
|
22,502
|
27,609
|
21,175
|
29,214
|
Income from mine
operations
|
3,643
|
4,083
|
4,995
|
2,864
|
4,126
|
Capital
expenditures
|
799
|
711
|
4,760
|
1,010
|
579
|
Capitalized
development
|
1,314
|
2,165
|
2,514
|
2,432
|
2,141
|
Exploration
expenditures (2)
|
1,253
|
1,566
|
1,953
|
829
|
1,206
|
|
|
(1)
|
We report the
non-GAAP financial measures of realized gold prices, 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 and Additional GAAP
Financial Measures" in section 12 of our MD&A.
|
(2)
|
Includes
capitalized and expensed exploration expenses.
|
(3)
|
The non-GAAP
financial measures of cash costs per payable ounce of gold sold and
AISC per payable ounce of gold sold from the Seabee Gold Operation
were adjusted to eliminate the adjustment of inventory to fair
value as at the date of our acquisition of the Seabee Gold
Operation.
|
Mine production
In the third quarter of 2017, the Seabee Gold Operation produced
18,058 ounces of gold, a strong result considering several
operating interruptions.
During the third quarter, 84,315 tonnes of ore were milled at an
average gold grade of 7.03 g/t. This compares to a total of 84,469
tonnes of ore at an average grade of 7.97 g/t in the second
quarter. The Santoy mine supplied 85% of ore milled, predominantly
from long hole stopes. Underground mining activities at Santoy
experienced operating interruptions during the third quarter as a
result of forest-fire-related power outages and smoke ingress.
The mill achieved an average throughput of 916 tonnes per day
during the quarter, 1.3% lower than the previous quarter due to a
combination of scheduled crusher maintenance activities and
forest-fire-related power outages.
Mine operating costs
Cash costs and AISC per payable ounce of gold sold are
non-GAAP financial measures. Please see "Cautionary Note Regarding
Non-GAAP Measures".
Cash costs per payable ounce of gold sold, which include all
costs of inventory, refining costs and royalties, were $634 in the third quarter of 2017, higher than
the $592 in the second quarter of
2017. Costs per tonne mined were $74
in the third quarter of 2017, 23% higher than in the previous
quarter due to the stronger Canadian dollar and less operating
costs capitalized to underground development. Processing and
general and administration unit costs were higher by 10% and 6%,
respectively, in the third quarter of 2017 compared to the second
quarter of 2017, mainly due to the stronger Canadian dollar. The
mill feed grade was 12% lower in the current quarter than in the
preceding period with lower production resulting in higher cash
costs in the period.
AISC per payable ounce of gold sold were $775 in the third quarter of 2017, lower than the
$831 in the second quarter of 2017,
primarily due to a higher volume of ounces sold in the third
quarter of 2017, but also due to lower underground capital
development. Exploration spending in the period decreased due to
lower planned drilling through the warmer months of the year.
Mine sales
A total of 21,798 ounces of gold were sold at an average price
of $1,269 per ounce during the third
quarter of 2017, higher than gold production as bullion inventory
accumulated in the previous quarter was sold in the third quarter.
Gold sales were 22% higher than the 17,909 ounces of gold sold at
an average price of $1,257 per ounce
in the second quarter of 2017.
Exploration
Mineral Resource conversion remained the main exploration
objective in the third quarter of 2017. During the period, we
completed 13,218 meters of underground drilling and 2,592 meters of
surface drilling. Underground drilling was active at the Santoy and
Seabee mines with the majority of expenditures at Santoy.
Drilling at Santoy Gap in the third quarter has yielded several
intercepts that extend the limits of the Mineral Resources,
including 2.4 meters at a grade of 14.77 g/t gold in drillhole
SUG-17-050 and 1.3 meters at a grade of 14.39 g/t gold in drillhole
SUG-17-047 within the Santoy Gap 9B vein. Similarly, step out
drilling on the Santoy 8A vein returned 2.1 meters at a grade of
24.00 g/t gold in drillhole SUG-17-923. Drilling at the 8A target
transects the Santoy 8A Footwall structural horizon and an
intercept outside the Mineral Resource returned 2.5 meters at a
grade of 17.31 g/t gold in drillhole JOY-17-770. One notable
intercept was returned from the Gap Hanging Wall target including
2.2 meters at a grade of 9.91 g/t gold in the eastern sector, as
reported in our news release dated September
5, 2017. Highlights of infill drilling are reported in Table
2 of this news release and drillhole collars are reported in
Table 5 of this news release for the relevant period.
Greenfields exploration at the Seabee Gold
Operation included the completion of a soils grid in the area
of the Santoy mine. The results show the down-ice dispersion of
anomalous gold values associated with the Santoy shear zone. We
have identified two additional anomalous areas for follow up.
At the Fisher property, where we have an option agreement with
Eagle Plains Resources Ltd. to acquire up to an 80% interest on the
adjacent 34,000 hectares south of the Santoy mine, we completed our
field program of prospecting, mapping, a drone magnetic survey and
geochemical surveying of soil and till. Prospecting results confirm
two new gold showings 1.5 kilometers and 8.0 kilometers south of
the Santoy mine. As previously reported, due to wildfire conditions
in and around the Fisher project area, exploration activities were
suspended in August 2017. Our first
drill campaign is planned for the first quarter of 2018.
Puna Operations, Argentina
(75% interest)
(Amounts presented on a 100% basis unless
otherwise stated)
|
Three months
ended
|
Operating
data
|
September 30
2017
|
June 30
2017
|
March 31
2017
|
December 31
2016
|
September 30
2016
|
Ore milled
(kt)
|
461
|
446
|
449
|
476
|
455
|
Silver mill feed
grade (g/t)
|
153
|
185
|
145
|
194
|
264
|
Processing costs ($/t
milled)
|
11.92
|
12.94
|
13.66
|
14.17
|
14.78
|
Silver recovery
(%)
|
67.8
|
73.5
|
72.6
|
74.5
|
79.0
|
General and admin
costs ($/t milled)
|
4.81
|
5.00
|
5.22
|
6.19
|
5.84
|
|
|
|
|
Silver produced ('000
oz)
|
1,541
|
1,947
|
1,520
|
2,210
|
3,047
|
Silver produced
(attributable) ('000 oz) (1)
|
1,156
|
1,777
|
1,520
|
2,210
|
3,047
|
Silver sold ('000
oz)
|
2,076
|
1,655
|
1,443
|
2,633
|
2,947
|
Silver sold
(attributable) ('000 oz) (1)
|
1,557
|
1,473
|
1,443
|
2,633
|
2,947
|
|
|
|
|
Realized silver price
($/oz) (2)
|
16.77
|
17.31
|
17.35
|
17.14
|
19.64
|
|
|
|
|
Cash costs ($/oz)
(2)
|
12.76
|
12.15
|
12.68
|
9.80
|
8.48
|
AISC ($/oz)
(2)
|
13.56
|
12.78
|
14.82
|
11.47
|
9.87
|
|
|
|
|
Financial Data
($000s)
|
|
|
|
Revenue
|
28,958
|
22,029
|
26,534
|
29,095
|
51,336
|
Income (loss) from
mine operations
|
7,690
|
4,006
|
13,767
|
(4,056
|
31,908
|
Capital
expenditures
|
1,006
|
420
|
2,261
|
3,467
|
3,158
|
Exploration
expenditures (3)
|
—
|
—
|
—
|
11
|
7
|
|
|
(1)
|
Attributable
production and sales figures for the third quarter of 2017 are on
75% attributable basis. Attributable production and sales figures
for the second quarter of 2017 represent 100% for April and May
2017 and 75% for June 2017.
|
(2)
|
We report the
non-GAAP financial measures of cash costs per payable ounce of
silver sold, realized silver prices and AISC 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 comprehensive
income (loss), please refer to "Non-GAAP and Additional GAAP
Financial Measures" in section 12 of our MD&A.
|
(3)
|
Does not include
exploration or development of the Chinchillas
project.
|
Mine production
During the first nine months of 2017, the operation produced a
total of 5.0 million ounces of silver, surpassing the lower end of
our 2017 production guidance as stockpile grades and metallurgical
performance continued to exceed plan. In the third quarter of 2017,
silver production from stockpiles totaled 1.5 million ounces.
Attributable share of silver production in the third quarter was
1.2 million ounces.
Ore was milled at an average rate of 5,012 tonnes per day in the
third quarter, similar to the previous quarter. Ore milled in the
third quarter of 2017 contained an average silver grade of 153 g/t,
17% lower than the 185 g/t reported in the second quarter of 2017
as we continue to process lower grade stockpiles. The average
silver recovery in the third quarter was 67.8%, lower than the
previous quarter as expected due to planned lower silver mill feed
grade.
Mine operating costs
Cash costs and AISC per payable ounce of silver sold are
non-GAAP financial measures. Please see "Cautionary Note Regarding
Non-GAAP Measures".
Cash costs, which include cost of inventory, treatment and
refining costs and, if applicable, by-product credits, increased by
5% to $12.76 per payable ounce of
silver sold in the third quarter of 2017 from $12.15 per payable ounce of silver sold in the
second quarter of 2017, principally due to lower production
resulting from lower silver grades of the stockpiled ore processed.
In the third quarter of 2017, the stockpile inventory costs include
approximately $5.20 per payable ounce
of inventory costs that were previously incurred.
AISC of $13.56 per payable ounce
of silver sold were 6% higher in the third quarter of 2017 than the
$12.78 per payable ounce of silver
sold in the second quarter of 2017 due to higher cash costs and
higher sustaining capital expenditure per payable ounce of silver
sold resulting from timing of maintenance activities.
Mine sales
We recognized sales of 2.1 million ounces of silver at an
average price of $16.77 per ounce in
the third quarter of 2017, higher than the 1.7 million ounces at an
average price of $17.31 per ounce in
the second quarter of 2017, as a result of sales of current period
production and selling down inventory that accumulated during the
previous quarter. Attributable sales were 1.6 million ounces of
silver in the third quarter of 2017, marginally higher than the 1.5
million ounces in the previous quarter.
Chinchillas project, Argentina
Since the initiation of development activities in June 2017, project execution is well under way
with purchase commitments made on critical long lead equipment
including a geodesic stockpile cover, tailings and reclaim water
pumps, piping, pre-fabricated electrical rooms and all mining and
supporting mobile equipment.
Construction contracts have been issued for tender and,
conditional upon receipts of permits, will be awarded in the fourth
quarter of 2017. These contracts include concrete and
earthworks and general electromechanical installation at Pirquitas,
and infrastructure buildings at Chinchillas, including
administration buildings, truck shop, diesel and explosives storage
and distribution systems. The pre-stripping operations plan has
been completed with detailed mine planning ongoing by the Puna
Operations technical services team.
The project is awaiting environmental, operating and
construction permit approvals, which are expected in the fourth
quarter. Project planning and execution, based on such permit
expectations, supports first ore feed to the Pirquitas mill in the
second half of 2018.
Other Projects
SIB project, Canada
During the third quarter of 2017, we completed 9,336 meters of
diamond drilling in 12 holes at the SIB exploration project located
near the high-grade, past-producing Eskay
Creek mine in northwest British
Columbia. We hold a three-year option to acquire up to a 60%
undivided interest in the project and have met the first year
spending requirement of C$3.7
million.
The exploration target is precious metal enriched volcanogenic
massive sulphides, and the SIB project boasts the only
mineralization similar to Eskay
Creek in the district. At the SIB project, previous work has
defined a near surface zone of high grade gold-silver bearing
massive sulphide mineralization. Our 2017 exploration program aims
to identify extensions to this precious metal enriched massive
sulphide zone. All the drillholes of the program encountered the
targeted Salmon River formation
geology over a strike length of at least 1,100 meters to a maximum
depth of 700 meters below surface. Polymetallic vein sulphides over
10 meters and pyritic vein breccia has been intercepted in two
holes in what are interpreted to be altered rocks footwall to the
main targeted mafic to felsic volcanic contact. These zones of
mineralization have returned weakly anomalous base and precious
metal values. Analytical results are pending for seven of the
twelve holes. Downhole geophysical surveys have been completed on
all the drillholes.
Once all the assay results and geophysical interpretations have
been received, we will review and determine our next steps for the
project.
Outlook
This section of the news release provides management's
production and cost estimates. See "Cautionary Note Regarding
Forward-Looking Statements."
We expect our total production to be within our previously
improved annual production guidance as a result of strong results
at the Seabee Gold Operation and Puna Operations, offset by lower
production results at the Marigold mine. Production guidance at
Marigold has been reduced by 10,000 ounces and is now expected to
be between 195,000 and 205,000 ounces of gold. This change reflects
third quarter gold production, lower pumping rates to the leach
pads in the third and fourth quarters due to higher clay content,
and the subsequent fourth quarter incident at Marigold mine. Within
the current phase of the Mackay pit, more ore tonnes and gold
ounces have been encountered, however, the majority of these
incremental tonnes have been of a clay nature. Blending of these
clay ores with rock ores is required as they are loaded on the
leach pads to improve permeability and rate of recovery and this
has been and will be an increased focus for the operation through
the fourth quarter. While these incremental tonnes and gold ounces
encountered are longer term positive, these operating impacts have
reduced near term production. Mining of higher clay ore is expected
through to the end of the first quarter of 2018.
Due to positive cost performance at all three operations
throughout the year and enhanced production results at both the
Seabee Gold Operation and Puna Operations, we expect our corporate
cash cost per payable ounce sold to remain within the previously
reduced guidance range.
As previously disclosed, the Marigold mine was shut down due to
an incident on October 31, which
resulted in the fatality of two of our employees. The Mine Safety
and Health Administration ("MSHA") is conducting an investigation.
MSHA has now removed restrictions allowing the restart of
operations. After management site reviews, open pit operations have
resumed and are in sequential ramp up as crews return to the mine
and complete incident and operational briefings. Mine operations
were fully or partially suspended for six days and the mine is
expected to resume full operations over the next several days.
Revised Operating
Guidance
|
|
Marigold
mine
|
Seabee Gold
Operation
|
Puna
Operations
(75% interest) (3)
|
Gold
Production
|
oz
|
195,000 -
205,000
|
75,000 -
85,000
|
—
|
Silver
Production
|
Moz
|
—
|
—
|
5.0 - 6.0
|
Cash Costs per
Payable Ounce Sold (1)
|
$/oz
|
640 - 670
|
575 - 625
|
12.50 -
14.00
|
Capital
Expenditures
|
$M
|
30
|
8
|
5
|
Capitalized Stripping
/ Capitalized
Development
|
$M
|
20
|
11
|
—
|
Exploration
Expenditures (2)
|
$M
|
5
|
5
|
—
|
|
|
(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)
|
Includes
capitalized and expensed exploration expenses.
|
(3)
|
Shown on a 100%
basis.
|
Consolidated Financial Summary
Selected Financial
Data (1)
|
|
|
|
Three months ended
September 30
|
Nine months ended
September 30
|
|
2017
|
2016
|
2017
|
2016
|
|
$
|
$
|
$
|
$
|
Revenue
|
106,005
|
143,381
|
340,892
|
363,669
|
Income from mine
operations
|
22,522
|
59,190
|
92,073
|
126,550
|
Operating
income
|
10,393
|
50,248
|
81,395
|
89,099
|
Net income
|
1,821
|
38,042
|
54,616
|
52,825
|
Basic attributable
income per share
|
0.01
|
0.32
|
0.45
|
0.54
|
Adjusted attributable
income before
tax (2)
|
4,252
|
45,168
|
42,739
|
83,996
|
Adjusted attributable
net income (2)
|
4,387
|
37,214
|
37,213
|
69,405
|
Adjusted basic
attributable income
per share (2)
|
0.04
|
0.31
|
0.31
|
0.71
|
Cash generated by
operating
activities
|
30,292
|
53,066
|
99,550
|
96,554
|
Cash generated by
(used in)
investing activities
|
38,570
|
(10,581)
|
(5,861)
|
(19,222)
|
Cash generated by
(used in)
financing activities
|
1,774
|
2,599
|
2,659
|
(11,400)
|
|
|
|
Financial
Position
|
|
September 30,
2017
|
December 31,
2016
|
Cash and cash
equivalents
|
|
424,025
|
327,127
|
Marketable
securities
|
|
109,721
|
148,944
|
Current assets
(including cash and
cash equivalents)
|
|
756,731
|
704,240
|
Current
liabilities
|
|
72,654
|
144,306
|
Working capital
(2)
|
|
684,077
|
559,934
|
Total
assets
|
|
1,499,220
|
1,438,688
|
|
|
(1)
|
All values are
presented in thousands of U.S. dollars, except per share
amounts.
|
(2)
|
We report non-GAAP
measures including adjusted attributable income before- and
after-tax, adjusted basic attributable income per share
attributable to our shareholders and working capital to manage
and evaluate our operating performance. Please see "Cautionary Note
Regarding Non-GAAP Measures".
|
Quarterly financial summary
As a result of lower sales and lower average prices for both
gold and silver, consolidated quarterly revenue decreased by 26%
relative to the comparative quarter. We sold 18% less payable
ounces of gold from the Marigold mine compared to the same quarter
of 2016 as Marigold production declined as expected due to lower
grades of the pit phases mined through the third quarter of 2017.
Seabee Gold Operation production was impacted by forest fires in
the third quarter of 2017 which caused intermittent power and mine
operations interruptions. Despite this, sales were unchanged
compared to the same quarter of 2016 due to selling down of
inventories. Due to the planned lower production from processing
stockpiles at Puna Operations, 30% less ounces of silver were sold
relative to the comparative period in 2016.
Income from mine operations in the third quarter of 2017
generated a gross margin of 21%, lower than the 41% margin in the
third quarter of 2016. This was due to higher cost of sales at Puna
Operations where we are processing stockpiles, and due to higher
unit costs at both the Marigold mine and the Seabee Gold Operation,
as a result of lower grades and higher depreciation and depletion,
respectively, in addition to lower realized prices per ounce of
gold and silver sold. Net income for the third quarter of 2017 of
$1.8 million was lower than the
comparative quarter due to lower income from mine operations and
higher general and administrative and exploration expenses.
Cash generated by operating activities decreased to $30.3 million compared to $53.1 million in the third quarter of 2016. Lower
production at the Marigold mine and Puna Operations resulted in
lower volumes of gold and silver sold at higher unit costs, which
generated lower cash from operating activities. We generated
$38.6 million from investing
activities in the third quarter of 2017 compared to $10.6 million used in the third quarter of 2016,
mainly due to the sale of common shares of Pretium Resources Inc.
("Pretium"). In the third quarter of 2017, our investment in
property, plant and equipment was $16.2
million, compared to $28.0
million in the comparative quarter of 2016. The $11.8 million reduction was principally due to
$7.7 million lower capitalized
stripping at Marigold and $3.2
million lower investment in plant and equipment, partially
offset by $0.8 million lower
investment in underground development at the Seabee Gold
Operation.
Year-to-date financial summary
The 6% decrease in revenue compared to the nine months of 2016
was due to 39% lower ounces of silver sold, as a result of planned
processing of lower grade stockpiles at Puna Operations, at
comparable realized prices, partially offset by a 20% increase in
gold ounces sold, although at 2% lower prices. The increase in gold
ounces sold was largely due to sales from the Seabee Gold
Operation, which we acquired in May
2016.
Income from mine operations in the nine months ended
September 30, 2017, generated a gross
margin of 27%, lower than the 35% margin in the nine months ended
September 30, 2016, as lower precious
metals prices, lower sales of silver, and higher cost of sales at
the Marigold mine were only partially offset by lower cost of sales
at Puna Operations and the addition of the Seabee Gold Operation.
In the nine months ended September 30,
2017, the resolution of our export duty claim in
Argentina resulted in a
$4.3 million reduction to cost of
sales. Net income for the first nine months of 2017 was also
positively impacted by an impairment reversal of the Pirquitas
plant of $24.4 million resulting from
its operating life extension following the formation of Puna
Operations.
Cash generated by operating activities was $99.6 million, compared to $96.6 million in the nine months ended
September 30, 2016. Higher volumes of
gold sold, albeit at slightly higher unit costs, generated higher
cash from operating activities before interest and taxes. In the
nine months ended September 30, 2017,
we paid $12.6 million of principal
and interest under the terms of the tax moratorium system in
Argentina into which we entered on
March 31, 2017. We used $5.9 million in investing activities in the nine
months ended September 30, 2017,
compared to $19.2 million in the
comparative period of 2016. This was mainly due to the proceeds of
$54.2 million from disposal of a
portion of our common shares of Pretium, which was offset by the
Chinchillas project option exercise payment of $13.0 million in the current period compared to
the receipt of $16.9 million of cash
as part of the acquisition of the Seabee Gold Operation in the
prior period. Investment in plant and equipment was lower by
$6.4 million and we invested less in
capitalized stripping at the Marigold mine by $5.3 million but more in underground development
at the Seabee Gold Operation by $3.1
million in the year to date than in the comparative period
of 2016. In the nine months ended September
30, 2016, we also repaid $17.6
million of bank loans.
Corporate summary
Effective August 1, 2017, we
changed our name to SSR Mining Inc. from Silver Standard Resources
Inc. to better reflect our business focus as a precious metals
producer.
On September 7, 2017, we reported
positive results of a Preliminary Economic Assessment ("PEA") for
the Seabee Gold Operation which provides a mine expansion scenario.
The PEA contemplates near-term production growth, extends
production to 2024, expands operating margins and improves
processing plant performance while requiring low capital
investment. We filed a technical report titled "NI 43-101 Technical
Report for the Seabee Gold Operation, Saskatchewan, Canada" in support of the PEA,
which is available on SEDAR at www.sedar.com and on our website.
The PEA is preliminary in nature and includes Inferred Mineral
Resources that are considered too speculative geologically to have
the economic considerations applied to them that would enable them
to be categorized as Mineral Reserves, and there is no certainty
that the PEA will be realized. Mineral Resources that are not
Mineral Reserves do not have demonstrated economic
viability.
In the third quarter of 2017, we sold 6.4 million common shares
of Pretium, realizing pre-tax cash proceeds of C$67.5
million. Subsequent to the quarter end, we sold an additional
1.5 million Pretium shares, realizing pre-tax cash proceeds of
C$17.8 million. We currently hold
9.04 million common shares, representing approximately 4.99% of
Pretium.
Third Quarter 2017 Selected Drill Results
Table 1. Third Quarter 2017 Selected Drill Results at the
Marigold mine, Nevada, U.S.
Hole ID
|
UTM-N
(Nad27
Zone11)
|
UTM-E
(Nad27
Zone11)
|
Elevation
(masl)
|
From
(meters)
|
To
(meters)
|
Width
(meters)
|
Gold
Grade
(g/ tonne)
|
Area
|
MRA6512
|
4508157
|
484800
|
1579
|
301.8
|
352.0
|
50.3
|
0.95
|
North Red
Dot
|
including
|
|
|
|
306.4
|
313.9
|
7.6
|
3.63
|
North Red
Dot
|
MRA6517
|
4507274
|
485067
|
1604
|
269.7
|
317.0
|
47.2
|
0.79
|
Red Dot
|
|
Note: See Table 3
and Table 4 in this news release for a list of all drillholes
completed for the period from August 1, 2017 to September 30,
2017.
|
Table 2. Third Quarter 2017 Selected Drill Results at the Seabee
Gold Operation, Saskatchewan,
Canada.
Hole ID
|
From
(meters)
|
To
(meters)
|
Mine E
(midpoint)1
|
Mine N
(midpoint)1
|
Elevation
(midpoint)1
|
Gold
Grade
(g/ tonne)
|
Ture Width
(meters)
|
Area
|
SUG-17-046
|
188.4
|
191.0
|
3620.4
|
4982.4
|
-421.5
|
21.66
|
1.21
|
9C
|
SUG-17-048
|
185.0
|
196.6
|
3627.0
|
4969.4
|
-417.9
|
3.47
|
6.09
|
9A
|
SUG-17-049
|
142.9
|
148.4
|
3673.7
|
4992.2
|
-433.1
|
5.94
|
3.47
|
9C
|
SUG-17-050
|
132.5
|
136.0
|
3692.5
|
4997.4
|
-444.9
|
8.15
|
2.58
|
9C
|
SUG-17-052
|
229.1
|
231.0
|
3612.9
|
4921.1
|
-378.3
|
27.28
|
0.84
|
9A
|
SUG-17-922
|
317.4
|
320.7
|
4541.2
|
5181.4
|
-479.5
|
6.67
|
2.41
|
8A
|
SUG-17-923
|
468.4
|
473.3
|
4525.0
|
5325.2
|
-605.9
|
24.00
|
2.14
|
8A
|
|
Notes: Drillholes
presented in this table have gram-meter value greater than 15. See
Table 5 in this news release for a list of all drillholes
completed for the period from August 1, 2017 to September 30,
2017.
|
1
Midpoints of the intercept determined where mineralized structure
intersected.
|
2 Gold
values cut to 75 g/t.
|
Sampling and Analytical Procedures
All drill samples in respect of the Marigold mine drilling
program are sent for processing and analysis to the offices of
American Assay Laboratories, Inc. ("AAL") in Sparks, Nevada which is an ISO 17025
accredited laboratory independent from SSR Mining. Fire assay is
completed on a 30-gram sample (AAL method code FA-PB30-ICP) with an
Inductively Coupled Plasma ("ICP") finish after a two acid
digestion. Samples with assay results greater than 10 g/t
gold are fire assayed on a 30-gram sample (AAL method code Grav
Au30) with a gravimetric finish. We employ a rigorous Quality
Assurance/Quality Control ("QA/QC") program, which includes
real-time assay quality monitoring through the regular insertion of
blanks, duplicates, and certified reference material, as well as
reviewing laboratory-provided QA/QC data.
All drill samples in respect of the Seabee Gold Operation
drilling program are assayed by our onsite non-accredited assay
laboratory, which is not independent from SSR Mining. Duplicate
check assays are conducted at site as well as at TSL Laboratories
Inc. in Saskatoon, Saskatchewan,
which is independent from SSR Mining. Results of the spot checks
were consistent with those reported. Sampling interval is
established by minimum or maximum sampling lengths and geological
and/or structural criteria. Two hundred gram samples are pulverized
until greater than 80 percent passes through 150 mesh screen.
Thirty-gram pulp samples are then analyzed for gold by fire assay
with gravimetric finish (0.01 grams per tonne detection limit).
Qualified Persons
The scientific and technical information contained in this news
release relating to the Marigold mine has been reviewed and
approved by Thomas Rice 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. Rice is our Technical Services
Manager and Mr. Carver is our Chief Geologist at the Marigold mine.
The scientific and technical data contained in this news release
relating to the Seabee Gold Operation has been reviewed and
approved by Cameron Chapman, P.Eng.,
and Jeffrey Kulas, P. Geo., each of
whom is a Qualified Person under NI 43-101. Mr. Chapman is our
General Manager and Mr. Kulas is our Manager Geology, Mining
Operations at the Seabee Gold Operation. The scientific and
technical information contained in this news release relating to
Puna Operations has been reviewed and approved by Bruce Butcher, P.Eng., and F. Carl Edmunds, P. Geo., each of whom is a
Qualified Person under NI 43-101. Mr. Butcher is our Director,
Mine Planning and Mr. Edmunds is our
Chief Geologist.
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 8, 2017, at 11:00 a.m.
EST.
Toll-free in U.S. and
Canada:
|
+1 (800)
319-4610
|
All other
callers:
|
+1 (416)
915-3239
|
Webcast:
|
http://ir.ssrmining.com/investors/events
|
- The conference call will be archived and available on our
website.
Audio replay will be available for two weeks by calling:
Toll-free in U.S. and
Canada:
|
+1 (855) 669-9658,
replay code 1719
|
All other
callers:
|
+1 (412) 317-0088,
replay code 1719
|
About SSR Mining
SSR Mining, formerly Silver Standard Resources Inc., is a
Canadian-based precious metals producer with three operations,
including the Marigold gold mine in Nevada, U.S., the Seabee Gold Operation in
Saskatchewan, Canada and the
75%-owned and operated Puna Operations joint venture in Jujuy,
Argentina. We also have two
feasibility stage projects and a portfolio of exploration
properties in North and South
America. We are committed to delivering safe production
through relentless emphasis on Operational Excellence. We are also
focused on growing production and Mineral Reserves through the
exploration and acquisition of assets for accretive growth, while
maintaining financial strength.
For further information contact:
W. John DeCooman, Jr.
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.
Table 3. Drill Results at the Marigold mine, Nevada, U.S for the Period from August 1, 2017 to September 30, 2017.
Hole ID
|
From
(meters)
|
To
(meters)
|
Width
(meters)
|
Gold Grade
(g/tonne)
|
Area
|
MR6496
|
173.7
|
259.1
|
85.3
|
0.28
|
Valmy
|
(including)
|
196.6
|
204.2
|
7.6
|
1.16
|
|
MRA6508
|
303.3
|
342.9
|
39.6
|
0.71
|
Mackay Pit
|
(including)
|
303.3
|
307.8
|
4.6
|
3.86
|
|
MRA6510
|
374.9
|
408.4
|
33.5
|
0.64
|
North Red
Dot
|
(including)
|
405.4
|
408.4
|
3.0
|
5.75
|
|
MRA6512
|
301.8
|
352.0
|
50.3
|
0.95
|
North Red
Dot
|
(including)
|
306.3
|
313.9
|
7.6
|
3.63
|
|
(including)
|
339.9
|
342.9
|
3.0
|
1.17
|
|
MR6515
|
172.2
|
210.3
|
38.1
|
0.71
|
Valmy
|
(including)
|
172.2
|
178.3
|
6.1
|
1.38
|
|
(including)
|
192.0
|
204.2
|
12.2
|
1.11
|
|
and
|
231.6
|
268.2
|
36.6
|
0.70
|
|
(including)
|
253.0
|
262.1
|
9.1
|
1.92
|
|
MR6517
|
269.7
|
317.0
|
47.2
|
0.79
|
Mackay Pit
|
(including)
|
274.3
|
281.9
|
7.6
|
3.26
|
|
MRA6523
|
262.1
|
283.5
|
21.3
|
1.85
|
Mackay Pit
|
(including)
|
263.7
|
278.9
|
15.2
|
2.51
|
|
MRA6526
|
243.8
|
259.1
|
15.2
|
1.55
|
Mackay Pit
|
(including)
|
245.4
|
256.0
|
10.7
|
2.07
|
|
MR6540
|
195.1
|
216.4
|
21.3
|
1.49
|
Valmy
|
(including)
|
195.1
|
204.2
|
9.1
|
2.97
|
|
|
Notes: Width in
meters represents downhole intersected length, which may or may not
be a true thickness of the mineralization. Drillholes presented in
this table have gram-meter value greater than 20. The drillhole
collars table (see Table 4) provides information if the drillhole
has a Mineral Resource intercept of six meters at 0.3 g/t gold.
"Width" may not equal the difference between "From" and "To" due to
rounding.
|
Table 4. Drillhole collars from the exploration drill programs
at the Marigold mine, Nevada,
U.S. for the Period from August 1,
2017 to September 30,
2017.
HOLE ID
|
UTM-N
(Nad27
Zone11)
|
UTM-E
(Nad27
Zone11)
|
Elevation
(masl)
|
Azimuth
(deg.)
|
Dip
(deg.)
|
Length
(meters)
|
Area
|
MR6496
|
4504346
|
487089
|
1926
|
120
|
-89
|
367
|
Valmy
|
MRA6508
|
4507547
|
485065
|
1590
|
84
|
-69
|
343
|
Mackay Pit
|
MRA6509
|
4508072
|
484747
|
1586
|
87
|
-70
|
428
|
North Red
Dot
|
MRA6510
|
4508035
|
484765
|
1589
|
90
|
-75
|
428
|
North Red
Dot
|
MRA6511
|
4508127
|
484793
|
1580
|
90
|
-74
|
428
|
North Red
Dot
|
MRA6512
|
4508157
|
484800
|
1579
|
91
|
-74
|
428
|
North Red
Dot
|
MR6514
|
4504347
|
487140
|
1924
|
225
|
-90
|
396
|
Valmy
|
MR6515
|
4504348
|
487116
|
1925
|
127
|
-89
|
379
|
Valmy
|
MR6516
|
4504316
|
487085
|
1940
|
346
|
-90
|
386
|
Valmy
|
MR6517
|
4507274
|
485067
|
1604
|
64
|
-89
|
392
|
Mackay Pit
|
MRA6518
|
4508096
|
484835
|
1580
|
97
|
-75
|
367
|
North Red
Dot
|
MRA6519
|
4503531
|
487799
|
2117
|
307
|
-71
|
274
|
Hollow
Point
|
MRA6520
|
4503399
|
487444
|
2060
|
132
|
-70
|
386
|
Hollow
Point
|
MRA6521
|
4503730
|
487774
|
2086
|
268
|
-51
|
221
|
Hollow
Point
|
MRA6522
|
4503677
|
487777
|
2095
|
269
|
-49
|
325
|
Hollow
Point
|
MRA6523
|
4507249
|
485061
|
1604
|
88
|
-56
|
383
|
Mackay Pit
|
MRA6524
|
4503799
|
487737
|
2075
|
265
|
-51
|
171
|
Hollow
Point
|
MRA6525
|
4507274
|
485067
|
1604
|
86
|
-76
|
386
|
Mackay Pit
|
MRA6526
|
4507274
|
485068
|
1604
|
89
|
-51
|
367
|
Mackay Pit
|
MRA6529
|
4503674
|
487710
|
2093
|
269
|
-49
|
305
|
Hollow
Point
|
MRA6530
|
4503585
|
487288
|
2030
|
270
|
-65
|
264
|
Hollow
Point
|
MRA6532
|
4503312
|
487288
|
2048
|
265
|
-66
|
270
|
Hollow
Point
|
MR6534
|
4504744
|
487111
|
1852
|
100
|
-89
|
215
|
Valmy
|
MRA6536
|
4507089
|
485327
|
1455
|
89
|
-54
|
123
|
Mackay Pit
|
MRA6537
|
4507029
|
485282
|
1455
|
90
|
-45
|
123
|
Mackay Pit
|
MR6539
|
4504861
|
487200
|
1859
|
220
|
-89
|
245
|
Valmy
|
MR6540
|
4504350
|
487233
|
1902
|
302
|
-90
|
322
|
Valmy
|
|
Note: The
numerical gaps in the drillhole sequence result from drillholes
reported previously or drillholes expected to be drilled in later
2017.
|
Table 5. Drill Results at the Seabee Gold Operation,
Saskatchewan, Canada for the
Period from August 1, 2017 to
September 30, 2017.
Hole ID
|
From
(meters)
|
To
(meters)
|
Mine E
(midpoint)1
|
Mine N
(midpoint)1
|
Elevation
(midpoint)1
|
Gold
Grade
(g/t)2
|
True
Width
(meters)
|
Zone
|
SUG-17-043
|
150.8
|
155.6
|
3663.2
|
5003.4
|
-449.3
|
1.10
|
3.01
|
9C
|
|
161.4
|
162.5
|
3656.7
|
4999.0
|
-453.0
|
0.67
|
0.69
|
9B
|
SUG-17-044
|
146
|
148.2
|
3672.9
|
5009.1
|
-457.6
|
0.35
|
1.47
|
9C
|
|
152.3
|
157.8
|
3667.3
|
5005.1
|
-461.6
|
0.67
|
3.68
|
9B
|
SUG-17-045
|
138.3
|
141.9
|
3685.5
|
5012.8
|
-464.0
|
0.01
|
2.61
|
9C
|
|
144.9
|
147.9
|
3681.4
|
5009.6
|
-467.5
|
0.18
|
2.17
|
9B
|
|
159
|
161.9
|
3672.2
|
5002.3
|
-475.3
|
0.05
|
2.09
|
9A
|
SUG-17-046
|
188.4
|
191
|
3620.4
|
4982.4
|
-421.5
|
21.66
|
1.21
|
9C
|
|
198.2
|
201
|
3612.1
|
4977.4
|
-423.5
|
3.56
|
1.30
|
9B
|
SUG-17-047
|
216.8
|
220.7
|
3592.1
|
4968.0
|
-406.9
|
3.54
|
1.58
|
9C
|
|
258.7
|
262
|
3556.5
|
4947.2
|
-412.0
|
14.39
|
1.31
|
9B
|
SUG-17-048
|
171.8
|
172.8
|
3641.7
|
4980.1
|
-414.5
|
0.01
|
0.52
|
9C
|
|
171.8
|
172.8
|
3633.4
|
4974.1
|
-416.5
|
1.63
|
2.31
|
9B
|
|
185.0
|
196.6
|
3627.0
|
4969.4
|
-417.9
|
3.47
|
6.09
|
9A
|
SUG-17-049
|
142.9
|
148.4
|
3673.7
|
4992.2
|
-433.1
|
5.94
|
3.47
|
9C
|
|
153.1
|
155.5
|
3667.4
|
4986.9
|
-435.9
|
0.05
|
1.50
|
9B
|
SUG-17-050
|
132.5
|
136
|
3692.5
|
4997.4
|
-444.9
|
8.15
|
2.58
|
9C
|
|
144.7
|
148
|
3685.0
|
4989.7
|
-450.4
|
14.77
|
2.43
|
9B
|
SUG-17-051
|
184
|
187
|
3638.3
|
4959.4
|
-391.7
|
0.05
|
1.40
|
9C
|
|
202.5
|
203.3
|
3625.0
|
4948.2
|
-392.9
|
2.50
|
0.37
|
9B
|
SUG-17-052
|
183.8
|
189
|
3645.4
|
4950.3
|
-377.9
|
0.05
|
2.31
|
9C
|
|
220.5
|
221.8
|
3619.6
|
4927.1
|
-378.2
|
0.03
|
0.58
|
9B
|
|
229.1
|
231
|
3612.9
|
4921.1
|
-378.3
|
27.28
|
0.84
|
9A
|
SUG-17-053
|
205.5
|
209.1
|
3631.3
|
4936.5
|
-362.2
|
0.11
|
1.66
|
9C
|
|
263.3
|
266.6
|
3588.9
|
4897.6
|
-359.8
|
0.60
|
1.51
|
9A
|
SUG-17-054
|
229.1
|
238.1
|
3573.0
|
5033.1
|
-485.1
|
0.01
|
3.89
|
9C
|
|
280.6
|
281.7
|
3531.9
|
5023.0
|
-506.7
|
0.01
|
0.48
|
9A
|
SUG-17-302
|
340.8
|
351.6
|
4149.6
|
5269.2
|
-365.2
|
0.01
|
5.58
|
Gap HW
|
JOY-17-769
|
223.7
|
226.2
|
4776.9
|
5190.2
|
-184.8
|
4.36
|
2.46
|
Gap
HW
|
|
413.3
|
416.8
|
4763.7
|
5070.0
|
-331.3
|
4.18
|
3.43
|
8A
|
|
422.2
|
427
|
4762.7
|
5063.8
|
-338.5
|
0.07
|
4.70
|
8A
Footwall
|
JOY-17-770
|
411.5
|
414.6
|
4761.5
|
5048.3
|
-310.4
|
0.61
|
3.02
|
8A
|
|
418.9
|
421.5
|
4760.5
|
5043.3
|
-315.4
|
17.31
|
2.54
|
8A
Footwall
|
JOY-17-771
|
411
|
417.9
|
4774.4
|
5047.5
|
-312
|
3.89
|
6.83
|
8A
|
|
420.9
|
424.7
|
4774.0
|
5041.5
|
-317.8
|
0.25
|
3.76
|
8A
Footwall
|
SUG-17-920
|
286.6
|
291.3
|
4558.6
|
5154.7
|
-448.7
|
0.14
|
5.83
|
8A
|
|
304.8
|
307
|
4560.6
|
5152.4
|
-465.4
|
2.23
|
1.36
|
8A
Footwall
|
SUG-17-921
|
380.3
|
390
|
4603.9
|
5244.8
|
-532.5
|
0.14
|
5.83
|
8A
|
SUG-17-922
|
317.4
|
320.7
|
4541.2
|
5181.4
|
-479.5
|
6.67
|
2.41
|
8A
|
|
327.7
|
330
|
4541.8
|
5181.1
|
-489.3
|
0.01
|
1.68
|
8A
Footwall
|
SUG-17-923
|
468.4
|
473.3
|
4525.0
|
5325.2
|
-605.9
|
24.00
|
2.14
|
8A
|
|
Notes:
|
1 Midpoints of the intercept determined where
mineralized structure intersected.
|
2 Gold values cut to 75 g/t.
|
Cautionary Note Regarding Forward-Looking
Statements
This news release contains forward-looking information within
the meaning of Canadian securities laws and forward-looking
statements within the meaning of the U.S. Private Securities
Litigation Reform Act of 1995 (collectively, "forward-looking
statements"). All statements, other than statements of historical
fact, are forward-looking statements.
Generally, forward-looking statements can be identified by
the use of words or phrases such as "expects," "anticipates,"
"plans," "projects," "estimates," "assumes," "intends," "strategy,"
"goals," "objectives," "potential," "believes," or variations
thereof, or stating that certain actions, events or results "may,"
"could," "would," "might" or "will" be taken, occur or be achieved,
or the negative of any of these terms or similar expressions. The
forward-looking statements in this news release relate to, among
other things: future production of gold, silver and other metals;
future costs of inventory, and cash costs, total costs and AISC per
payable ounce of gold, silver and other metals sold; expected
achievement of our annual production and cash costs guidance;
expected exploration and development expenditures; the prices of
gold, silver and other metals; expansion of the Seabee Gold
Operation based on the results of the PEA; the PEA representing
production growth, improved margins and processing plant
performance and low capital investment; timing, amount and duration
of future production of gold under the PEA; our ability to discover
new areas of mineralization, to expand Mineral Reserves and to
convert Mineral Resources into Mineral Reserves; the timing of
awarding construction contracts for the Chinchillas project's
supporting infrastructure; the timing of receipt of permits for
construction at the Chinchillas project; expected timing of
construction of and ore delivery from the Chinchillas project; the
timing of commencement of drilling at the Fisher project; the
expected duration of mining of higher clay ore at the Mackay pit;
the effects of laws, regulations and government policies affecting
our operations or potential future operations; our exposure to
fluctuations in ARS and interest rates on the liability under the
tax moratorium; the expected devaluation of the Argentine peso;
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; timing of production
and the cash costs and total costs of production at the Marigold
mine, the Seabee Gold Operation and Puna Operations; the estimated
cost of sustaining capital; 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; our ability to
obtain necessary permits for the Chinchillas project; commodity
price fluctuations; political or economic instability and
unexpected regulatory changes; currency and interest rate
fluctuations; the possibility of future losses; general economic
conditions; fully realizing the value of our shareholdings in
Pretium and our other marketable securities, due to changes in
price, liquidity or disposal cost of such marketable securities;
counterparty and market risks related to the sale of our
concentrate and metals; uncertainty in the accuracy of Mineral
Reserves and Mineral Resources estimates and in our ability to
extract mineralization profitably; differences in U.S. and Canadian
practices for reporting Mineral Reserves and Mineral Resources;
lack of suitable infrastructure or damage to existing
infrastructure; future development risks, including start-up delays
and cost overruns; our ability to obtain adequate financing for
further exploration and development programs and opportunities;
uncertainty in acquiring additional commercially mineable mineral
rights; delays in obtaining or failure to obtain governmental
permits, or non-compliance with our permits; our ability to attract
and retain qualified personnel and management; potential labour
unrest, including labour actions by our unionized employees at Puna
Operations; the impact of governmental regulations, including
health, safety and environmental regulations, including increased
costs and restrictions on operations due to compliance with such
regulations; reclamation and closure requirements for our mineral
properties; failure to effectively manage our tailings facilities;
social and economic changes following closure of a mine may lead to
adverse impacts and unrest; unpredictable risks and hazards related
to the development and operation of a mine or mineral property that
are beyond our control; indigenous peoples' title claims and rights
to consultation and accommodation may affect our existing
operations as well as development projects and future acquisitions;
assessments by taxation authorities in multiple jurisdictions;
recoverability of VAT 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, including extreme
weather conditions; fully realizing our interest in deferred
consideration received in connection with recent divestitures;
uncertainties related to title to our mineral properties and the
ability to obtain surface rights; the sufficiency of our insurance
coverage; civil disobedience in the countries where our mineral
properties are located; operational safety and security risks;
actions required to be taken by us under human rights law;
competition in the mining industry for mineral properties; our
ability to complete and successfully integrate an announced
acquisition; an event of default under our convertible notes may
significantly reduce our liquidity and adversely affect our
business; failure to meet covenants under our senior secured
revolving credit facility; conflicts of interest that could arise
from certain of our directors' and officers' involvement with other
natural resource companies; information systems security threats;
and those other various risks and uncertainties identified under
the heading "Risk Factors" in our most recent Annual Information
Form filed with the Canadian securities regulatory authorities and
included in our most recent Annual Report on Form 40-F filed with
the U.S. Securities and Exchange Commission ("SEC").
This list is not exhaustive of the factors that may affect
any of our forward-looking statements. Our forward-looking
statements are based on what our management considers to be
reasonable assumptions, beliefs, expectations and opinions based on
the information currently available to it. Assumptions have been
made regarding, among other things, our ability to carry on our
exploration and development activities, our ability to meet our
obligations under our property agreements, the timing and results
of drilling programs, the discovery of Mineral Resources and
Mineral Reserves on our mineral properties, the timely receipt of
required approvals and permits, including those approvals and
permits required for successful project permitting, construction
and operation of our projects, the price of the minerals we
produce, the costs of operating and exploration expenditures, our
ability to operate in a safe, efficient and effective manner, our
ability to obtain financing as and when required and on reasonable
terms and our ability to continue operating the Marigold mine, the
Seabee Gold Operation and Puna Operations, the factors identified
in the PEA which may affect the Mineral Resource estimate, the
Mineral Reserve estimate and the economic analysis under the PEA,
the capital and operating cost assumptions identified in the PEA,
dilution and mining recovery assumptions, assumptions regarding
stockpiles, the success of mining, processing, exploration and
development activities, the accuracy of geological, mining and
metallurgical estimates, no significant unanticipated operational
or technical difficulties, maintaining good relations with the
communities surrounding the Marigold mine, the Seabee Gold
Operation and Puna Operations, no significant events or changes
relating to regulatory, environmental, health and safety matters,
certain tax matters and no significant and continuing adverse
changes in general economic conditions or conditions in the
financial markets (including commodity prices, foreign exchange
rates and inflation rates). You are cautioned that the foregoing
list is not exhaustive of all factors and assumptions which may
have been used. We cannot assure you that actual events,
performance or results will be consistent with these
forward-looking statements, and management's assumptions may prove
to be incorrect. Our forward-looking statements reflect current
expectations regarding future events and operating performance and
speak only as of the date hereof and we do not assume any
obligation to update forward-looking statements if circumstances or
management's beliefs, expectations or opinions should change other
than as required by applicable law. For the reasons set forth
above, you should not place undue reliance on forward-looking
statements.
Cautionary Note to U.S. Investors
This news release includes Mineral Reserves and Mineral
Resources classification terms that comply with reporting standards
in Canada and the Mineral Reserves
and the Mineral Resources estimates are made in accordance with NI
43-101. NI 43-101 is a rule developed by the Canadian Securities
Administrators that establishes standards for all public disclosure
an issuer makes of scientific and technical information concerning
mineral projects. These standards differ significantly from the
requirements of the SEC set out in SEC Industry Guide 7.
Consequently, Mineral Reserves and Mineral Resources information
included in this news release is not comparable to similar
information that would generally be disclosed by domestic U.S.
reporting companies subject to the reporting and disclosure
requirements of the SEC. Under SEC standards, mineralization may
not be classified as a "reserve" unless the determination has been
made that the mineralization could be economically produced or
extracted at the time the reserve determination is made. In
addition, the SEC's disclosure standards normally do not permit the
inclusion of information concerning "Measured Mineral Resources,"
"Indicated Mineral Resources" or "Inferred Mineral Resources" or
other descriptions of the amount of mineralization in mineral
deposits that do not constitute "reserves" by U.S. standards in
documents filed with the SEC. U.S. investors should understand that
"Inferred Mineral Resources" have a great amount of uncertainty as
to their existence and great uncertainty as to their economic and
legal feasibility. Moreover, the requirements of NI 43-101 for
identification of "reserves" are also not the same as those of the
SEC, and reserves reported by us in compliance with NI 43-101 may
not qualify as "reserves" under SEC standards. Accordingly,
information concerning mineral deposits set forth herein may not be
comparable with information made public by companies that report in
accordance with U.S. standards.
Cautionary Note Regarding Non-GAAP Measures
This news release includes certain terms or performance
measures commonly used in the mining industry that are not defined
under International Financial Reporting Standards ("IFRS"),
including cash costs, total costs and AISC per payable ounce of
precious metals sold, realized metal prices, adjusted attributable
income (loss) before tax, adjusted attributable income tax
(expense), adjusted net income (loss), adjusted attributable basic
earnings (loss) per share and working capital. Non-GAAP financial
measures do not have any standardized meaning prescribed under IFRS
and, therefore, they may not be comparable to similar measures
reported by other companies. We believe that, in addition to
conventional measures prepared in accordance with IFRS, certain
investors use this information to evaluate our performance. The
data presented is intended to provide additional information and
should not be considered in isolation or as a substitute for
measures of performance prepared in accordance with IFRS. These
non-GAAP measures should be read in conjunction with our
consolidated financial statements. Readers should refer to
"Non-GAAP and Additional GAAP Financial Measures" in section 12 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.
SOURCE SSR Mining Inc.