|
SSR Mining Inc.
|
|
|
(Registrant)
|
|
|
|
|
Date: May 15, 2020
|
By:
|
Signed: “Gregory J. Martin”
|
|
|
Gregory J. Martin
|
|
Title:
|
Chief Financial Officer
|
|
|
|
|
|
|
|
|
SSR Mining Inc.
|
Interim Financial Statements Q1 2020 | 1
|
SSR Mining Inc.
|
Interim Financial Statements Q1 2020 | 2
|
|
Note
|
March 31, 2020
|
|
December 31, 2019
|
|
||
Current assets
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
398,439
|
|
$
|
503,647
|
|
Trade and other receivables
|
|
61,698
|
|
87,306
|
|
||
Marketable securities
|
|
50,293
|
|
66,453
|
|
||
Inventories
|
4
|
232,813
|
|
237,570
|
|
||
Other
|
|
—
|
|
4,686
|
|
||
|
|
743,243
|
|
899,662
|
|
||
Non-current assets
|
|
|
|
||||
Mineral properties, plant and equipment
|
5
|
788,095
|
|
769,462
|
|
||
Deferred income tax assets
|
|
59
|
|
63
|
|
||
Goodwill
|
|
49,786
|
|
49,786
|
|
||
Other
|
|
30,821
|
|
31,134
|
|
||
Total assets
|
|
$
|
1,612,004
|
|
$
|
1,750,107
|
|
|
|
|
|
||||
Current liabilities
|
|
|
|
||||
Accounts payable and accrued liabilities
|
|
$
|
88,812
|
|
$
|
111,125
|
|
Reclamation and closure cost provision
|
|
7,863
|
|
8,766
|
|
||
Current portion of debt
|
6
|
—
|
|
114,280
|
|
||
|
|
96,675
|
|
234,171
|
|
||
Non-current liabilities
|
|
|
|
||||
Deferred income tax liabilities
|
|
118,604
|
|
127,815
|
|
||
Reclamation and closure cost provision
|
|
75,247
|
|
75,469
|
|
||
Debt
|
6
|
171,722
|
|
169,769
|
|
||
Other
|
|
11,765
|
|
8,929
|
|
||
Total liabilities
|
|
474,013
|
|
616,153
|
|
||
|
|
|
|
||||
Shareholders' equity
|
|
|
|
||||
Share capital
|
|
1,085,747
|
|
1,083,766
|
|
||
Other reserves
|
|
(2,158
|
)
|
19,762
|
|
||
Equity component of convertible notes
|
6
|
106,425
|
|
106,425
|
|
||
Deficit
|
|
(52,023
|
)
|
(75,999
|
)
|
||
Total equity
|
|
1,137,991
|
|
1,133,954
|
|
||
Total liabilities and equity
|
|
$
|
1,612,004
|
|
$
|
1,750,107
|
|
"Beverlee F. Park"
|
|
"Paul Benson"
|
Beverlee F. Park, Director
|
|
Paul Benson, Director
|
SSR Mining Inc.
|
Interim Financial Statements Q1 2020 | 3
|
|
Note
|
Three months ended March 31,
|
|||||
|
|
2020
|
|
2019
|
|
||
Revenue
|
8
|
$
|
164,463
|
|
$
|
126,250
|
|
Cost of sales
|
|
|
|
||||
Production costs
|
|
(91,045
|
)
|
(70,866
|
)
|
||
Depletion and depreciation
|
|
(28,635
|
)
|
(25,147
|
)
|
||
|
|
(119,680
|
)
|
(96,013
|
)
|
||
Income from mine operations
|
|
44,783
|
|
30,237
|
|
||
General and administrative expenses
|
|
(2,325
|
)
|
(6,871
|
)
|
||
Exploration, evaluation and reclamation expenses
|
|
(6,362
|
)
|
(3,738
|
)
|
||
Care and maintenance expenses
|
11
|
(1,330
|
)
|
—
|
|
||
Operating income
|
|
34,766
|
|
19,628
|
|
||
Interest and other finance income
|
|
2,397
|
|
4,903
|
|
||
Interest expense and other finance costs
|
|
(6,966
|
)
|
(8,645
|
)
|
||
Loss on redemption of convertible debt
|
6
|
—
|
|
(5,423
|
)
|
||
Other (expense) income
|
|
(1,380
|
)
|
597
|
|
||
Foreign exchange gain (loss)
|
|
1,158
|
|
(2,163
|
)
|
||
Income before income taxes
|
|
29,975
|
|
8,897
|
|
||
Income tax expense
|
|
(5,999
|
)
|
(3,165
|
)
|
||
Net income
|
|
$
|
23,976
|
|
$
|
5,732
|
|
Attributable to:
|
|
|
|
||||
Equity holders of SSR Mining
|
|
$
|
23,976
|
|
$
|
6,464
|
|
Non-controlling interest
|
7
|
—
|
|
(732
|
)
|
||
|
|
|
|
||||
Net income per share attributable to equity holders of SSR Mining
|
|
|
|
||||
Basic
|
9
|
$0.19
|
$0.05
|
||||
Diluted
|
9
|
$0.19
|
$0.05
|
SSR Mining Inc.
|
Interim Financial Statements Q1 2020 | 4
|
|
|
Three months ended March 31,
|
|||||
|
|
2020
|
|
2019
|
|
||
Net income
|
|
$
|
23,976
|
|
$
|
5,732
|
|
Other comprehensive (loss) income
|
|
|
|
||||
Items that will not be reclassified to net income:
|
|
|
|
||||
(Loss) gain on marketable securities, net of tax recovery (expense) of $2,382 and ($410)
|
|
(13,497
|
)
|
2,639
|
|
||
Items that may be subsequently reclassified to net income:
|
|
|
|
||||
Unrealized (loss) gain on effective portion of derivatives, net of tax recovery (expense) of $2,633 and ($477)
|
|
(9,092
|
)
|
1,598
|
|
||
Realized gain on derivatives reclassified to net income
|
|
34
|
|
—
|
|
||
Total other comprehensive (loss) income
|
|
(22,555
|
)
|
4,237
|
|
||
Total comprehensive income
|
|
$
|
1,421
|
|
$
|
9,969
|
|
Attributable to:
|
|
|
|
||||
Equity holders of SSR Mining
|
|
$
|
1,421
|
|
$
|
10,701
|
|
Non-controlling interest
|
7
|
—
|
|
(732
|
)
|
||
Total comprehensive income
|
|
$
|
1,421
|
|
$
|
9,969
|
|
SSR Mining Inc.
|
Interim Financial Statements Q1 2020 | 5
|
|
|
Common Shares
|
Other reserves
|
|
Equity component of convertible notes
|
|
Deficit
|
|
Total equity attributable to equity holders of SSR Mining
|
|
Non-controlling interest
|
|
Total
equity
|
|
||||||||||
|
Note
|
Shares (000's)
|
|
Amount
|
|
|||||||||||||||||||
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
|
10
|
—
|
|
—
|
|
460
|
|
—
|
|
—
|
|
460
|
|
—
|
|
460
|
|
|||||||
Transfer of equity-settled Performance Share Units
|
|
—
|
|
—
|
|
1,284
|
|
—
|
|
—
|
|
1,284
|
|
|
1,284
|
|
||||||||
Equity value of debt issued
|
|
—
|
|
—
|
|
—
|
|
42,975
|
|
—
|
|
42,975
|
|
|
42,975
|
|
||||||||
Equity value of convertible debt redeemed
|
|
—
|
|
—
|
|
—
|
|
(4,825
|
)
|
—
|
|
(4,825
|
)
|
|
(4,825
|
)
|
||||||||
Revaluation of reserve
|
|
—
|
|
—
|
|
22
|
|
—
|
|
—
|
|
22
|
|
|
22
|
|
||||||||
Funding from non-controlling interest
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
3,710
|
|
3,710
|
|
|||||||
Total comprehensive income (loss) 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
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance, January 1, 2020
|
|
123,084
|
|
$
|
1,083,766
|
|
$
|
19,762
|
|
$
|
106,425
|
|
$
|
(75,999
|
)
|
$
|
1,133,954
|
|
$
|
—
|
|
$
|
1,133,954
|
|
Exercise of stock options
|
|
157
|
|
1,975
|
|
(588
|
)
|
—
|
|
—
|
|
1,387
|
|
—
|
|
1,387
|
|
|||||||
Equity-settled share-based compensation
|
10
|
—
|
|
—
|
|
1,223
|
|
—
|
|
—
|
|
1,223
|
|
—
|
|
1,223
|
|
|||||||
Equity value of convertible debt redeemed
|
6
|
—
|
|
6
|
|
—
|
|
—
|
|
—
|
|
6
|
|
—
|
|
6
|
|
|||||||
Total comprehensive income (loss) for the period
|
|
—
|
|
—
|
|
(22,555
|
)
|
—
|
|
23,976
|
|
1,421
|
|
—
|
|
1,421
|
|
|||||||
Balance, March 31, 2020
|
|
123,241
|
|
$
|
1,085,747
|
|
$
|
(2,158
|
)
|
$
|
106,425
|
|
$
|
(52,023
|
)
|
$
|
1,137,991
|
|
$
|
—
|
|
$
|
1,137,991
|
|
SSR Mining Inc.
|
Interim Financial Statements Q1 2020 | 6
|
|
|
Three months ended March 31,
|
|||||
|
Note
|
2020
|
|
2019
|
|
||
Cash flows from operating activities
|
|
|
|
||||
Net income for the period
|
|
$
|
23,976
|
|
$
|
5,732
|
|
Adjustments for:
|
|
|
|
||||
Depreciation and depletion
|
|
28,806
|
|
25,798
|
|
||
Interest and other finance income
|
|
(2,397
|
)
|
(4,903
|
)
|
||
Interest expense
|
|
6,439
|
|
8,309
|
|
||
Gain on sale of mineral properties, plant and equipment
|
|
—
|
|
(1,000
|
)
|
||
Income tax expense
|
|
5,999
|
|
3,165
|
|
||
Non-cash foreign exchange gain
|
|
(1,306
|
)
|
(483
|
)
|
||
Loss on redemption of convertible debt
|
6
|
—
|
|
5,423
|
|
||
Other
|
13
|
13,659
|
|
532
|
|
||
Net changes in non-cash working capital items
|
13
|
544
|
|
(27,377
|
)
|
||
Cash generated by operating activities before interest and taxes
|
|
75,720
|
|
15,196
|
|
||
Moratorium paid
|
|
(834
|
)
|
(1,091
|
)
|
||
Interest paid
|
|
(5,464
|
)
|
(5,216
|
)
|
||
Income taxes paid
|
|
(10,750
|
)
|
(9,192
|
)
|
||
Cash generated by (used in) operating activities
|
|
58,672
|
|
(303
|
)
|
||
Cash flows from investing activities
|
|
|
|
||||
Expenditures on mineral properties, plant and equipment
|
|
(53,903
|
)
|
(35,210
|
)
|
||
Purchase of marketable securities
|
|
(10,147
|
)
|
—
|
|
||
Net proceeds from sale of marketable securities
|
|
12,055
|
|
947
|
|
||
Loan to joint venture partner
|
|
—
|
|
(1,967
|
)
|
||
Interest received
|
|
1,783
|
|
2,712
|
|
||
Other
|
|
851
|
|
(244
|
)
|
||
Cash used in investing activities
|
|
(49,361
|
)
|
(33,762
|
)
|
||
Cash flows from financing activities
|
|
|
|
||||
Proceeds from exercise of stock options
|
|
1,387
|
|
3,048
|
|
||
Funding from non-controlling interest
|
|
—
|
|
3,710
|
|
||
Redemption of convertible notes
|
6
|
(114,994
|
)
|
(152,250
|
)
|
||
Issuance of convertible notes
|
6
|
—
|
|
230,000
|
|
||
Convertible notes issuance costs
|
6
|
—
|
|
(7,067
|
)
|
||
Lease payments
|
|
(376
|
)
|
—
|
|
||
Cash (used in) generated by financing activities
|
|
(113,983
|
)
|
77,441
|
|
||
Effect of foreign exchange rate changes on cash and cash equivalents
|
|
(536
|
)
|
(1,237
|
)
|
||
(Decrease) increase in cash and cash equivalents
|
|
(105,208
|
)
|
42,139
|
|
||
Cash and cash equivalents, beginning of period
|
|
503,647
|
|
419,212
|
|
||
Cash and cash equivalents, end of period
|
|
$
|
398,439
|
|
$
|
461,351
|
|
SSR Mining Inc.
|
Interim Financial Statements Q1 2020 | 7
|
1.
|
NATURE OF OPERATIONS
|
2.
|
BASIS OF PRESENTATION
|
SSR Mining Inc.
|
Interim Financial Statements Q1 2020 | 8
|
3.
|
SIGNIFICANT ACCOUNTING JUDGMENTS AND ESTIMATES
|
4.
|
INVENTORIES
|
|
March 31, 2020
|
|
December 31, 2019
|
|
||
Finished goods
|
$
|
14,900
|
|
$
|
14,141
|
|
Stockpiled ore
|
10,765
|
|
18,155
|
|
||
Leach pad inventory
|
160,811
|
|
171,768
|
|
||
Materials and supplies
|
48,304
|
|
35,354
|
|
||
|
234,780
|
|
239,418
|
|
||
Non-current materials and supplies
|
(1,967
|
)
|
(1,848
|
)
|
||
|
$
|
232,813
|
|
$
|
237,570
|
|
SSR Mining Inc.
|
Interim Financial Statements Q1 2020 | 9
|
5.
|
MINERAL PROPERTIES, PLANT AND EQUIPMENT
|
|
March 31, 2020
|
||||||||||||||
|
Plant and equipment
|
|
Mineral properties subject to depletion
|
|
Mineral properties not yet subject to depletion
|
|
Exploration and evaluation assets
|
|
Total
|
|
|||||
Cost
|
|
|
|
|
|
||||||||||
Balance, beginning of year
|
$
|
691,576
|
|
$
|
539,378
|
|
$
|
80,296
|
|
$
|
127,141
|
|
$
|
1,438,391
|
|
Additions
|
25,739
|
|
18,981
|
|
606
|
|
—
|
|
45,326
|
|
|||||
Disposals
|
(1,156
|
)
|
—
|
|
—
|
|
—
|
|
(1,156
|
)
|
|||||
Change in reclamation and closure cost provision
|
—
|
|
(108
|
)
|
—
|
|
166
|
|
58
|
|
|||||
Transfers
|
—
|
|
851
|
|
(851
|
)
|
—
|
|
—
|
|
|||||
Balance, end of period
|
716,159
|
|
559,102
|
|
80,051
|
|
127,307
|
|
1,482,619
|
|
|||||
|
|
|
|
|
|
||||||||||
Accumulated depreciation and depletion
|
|
|
|
|
|
||||||||||
Balance, beginning of year
|
(375,398
|
)
|
(293,531
|
)
|
—
|
|
—
|
|
(668,929
|
)
|
|||||
Depreciation and depletion
|
(13,286
|
)
|
(13,283
|
)
|
—
|
|
—
|
|
(26,569
|
)
|
|||||
Disposals
|
974
|
|
—
|
|
—
|
|
—
|
|
974
|
|
|||||
Balance, end of period
|
(387,710
|
)
|
(306,814
|
)
|
—
|
|
—
|
|
(694,524
|
)
|
|||||
Net book value at March 31, 2020
|
$
|
328,449
|
|
$
|
252,288
|
|
$
|
80,051
|
|
$
|
127,307
|
|
$
|
788,095
|
|
SSR Mining Inc.
|
Interim Financial Statements Q1 2020 | 10
|
5.
|
MINERAL PROPERTIES, PLANT AND EQUIPMENT (Continued)
|
|
December 31, 2019
|
||||||||||||||
|
Plant and equipment
|
|
Mineral properties subject to depletion
|
|
Mineral properties not yet subject to depletion
|
|
Exploration and evaluation assets
|
|
Total
|
|
|||||
Cost
|
|
|
|
|
|
||||||||||
Balance, beginning of year
|
$
|
621,882
|
|
$
|
463,548
|
|
$
|
101,990
|
|
$
|
91,228
|
|
$
|
1,278,648
|
|
Additions
|
82,151
|
|
42,373
|
|
7,145
|
|
35,275
|
|
166,944
|
|
|||||
Disposals
|
(12,457
|
)
|
(2,962
|
)
|
—
|
|
(434
|
)
|
(15,853
|
)
|
|||||
Change in reclamation and closure cost provision
|
—
|
|
7,580
|
|
—
|
|
1,072
|
|
8,652
|
|
|||||
Transfers
|
—
|
|
28,839
|
|
(28,839
|
)
|
—
|
|
—
|
|
|||||
Balance, end of year
|
691,576
|
|
539,378
|
|
80,296
|
|
127,141
|
|
1,438,391
|
|
|||||
|
|
|
|
|
|
||||||||||
Accumulated depreciation and depletion
|
|
|
|
|
|
||||||||||
Balance, beginning of year
|
(338,153
|
)
|
(239,320
|
)
|
—
|
|
—
|
|
(577,473
|
)
|
|||||
Depreciation and depletion
|
(48,226
|
)
|
(55,783
|
)
|
—
|
|
—
|
|
(104,009
|
)
|
|||||
Disposals
|
10,981
|
|
1,572
|
|
|
|
12,553
|
|
|||||||
Balance, end of year
|
(375,398
|
)
|
(293,531
|
)
|
—
|
|
—
|
|
(668,929
|
)
|
|||||
Net book value at December 31, 2019
|
$
|
316,178
|
|
$
|
245,847
|
|
$
|
80,296
|
|
$
|
127,141
|
|
$
|
769,462
|
|
SSR Mining Inc.
|
Interim Financial Statements Q1 2020 | 11
|
6.
|
DEBT
|
|
March 31, 2020
|
|
December 31, 2019
|
|
||
2013 Notes
|
$
|
—
|
|
$
|
114,280
|
|
2019 Notes
|
171,722
|
|
169,769
|
|
||
Total carrying amount of convertible debt
|
171,722
|
|
284,049
|
|
||
Less: current portion of debt
|
$
|
—
|
|
$
|
(114,280
|
)
|
Non-current portion of debt outstanding
|
$
|
171,722
|
|
$
|
169,769
|
|
SSR Mining Inc.
|
Interim Financial Statements Q1 2020 | 12
|
6.
|
DEBT (continued)
|
|
March 31, 2020
|
|
December 31, 2019
|
|
||
Balance, beginning of period
|
$
|
286,852
|
|
$
|
250,729
|
|
Accretion of discount
|
2,673
|
|
14,320
|
|
||
Interest accrued
|
2,280
|
|
8,729
|
|
||
Interest paid
|
(5,070
|
)
|
(9,104
|
)
|
||
Redemption of 2013 Notes
|
(114,994
|
)
|
(141,982
|
)
|
||
Redemption of 2013 Notes - converted to equity
|
(6
|
)
|
—
|
|
||
Issuance of 2019 Notes
|
—
|
|
164,160
|
|
||
Balance, end of period
|
171,735
|
|
286,852
|
|
||
Accrued interest outstanding
|
(13
|
)
|
(2,803
|
)
|
||
Carrying value of Notes outstanding
|
$
|
171,722
|
|
$
|
284,049
|
|
|
|
|
||||
Classified as:
|
|
|
||||
Current
|
$
|
—
|
|
$
|
114,280
|
|
Non-current
|
171,722
|
|
169,769
|
|
||
|
$
|
171,722
|
|
$
|
284,049
|
|
7.
|
ACQUISITION OF NON-CONTROLLING INTEREST
|
SSR Mining Inc.
|
Interim Financial Statements Q1 2020 | 13
|
8.
|
REVENUE
|
|
Three months ended March 31,
|
|||||
|
2020
|
|
2019
|
|
||
Gold bullion and doré sales
|
$
|
136,777
|
|
$
|
108,694
|
|
Concentrate sales
|
35,623
|
|
17,187
|
|
||
Other (1)
|
(7,937
|
)
|
369
|
|
||
|
$
|
164,463
|
|
$
|
126,250
|
|
(1)
|
Other revenue includes the impact of changes in the fair value of concentrate trade receivables due to changes in silver and base metal prices.
|
9.
|
INCOME PER SHARE
|
|
Three months ended March 31,
|
|||||
|
2020
|
|
2019
|
|
||
Net income
|
$
|
23,976
|
|
$
|
5,732
|
|
Net loss attributable to non-controlling interest
|
—
|
|
(732
|
)
|
||
Net income used in the calculation of diluted net income per share
|
23,976
|
6,464
|
||||
|
|
|
||||
Weighted average number of common shares issued (thousands)
|
123,228
|
|
121,023
|
|
||
Adjustments for dilutive instruments:
|
|
|
||||
Stock options (thousands)
|
681
|
|
966
|
|||
Performance share units (thousands)
|
547
|
|
—
|
|
||
Diluted weighted average number of shares outstanding (thousands)
|
124,456
|
|
121,989
|
|
||
|
|
|
||||
Basic net income per share attributable to equity holders of SSR Mining
|
$0.19
|
$0.05
|
||||
Diluted net income per share attributable to equity holders of SSR Mining
|
$0.19
|
$0.05
|
SSR Mining Inc.
|
Interim Financial Statements Q1 2020 | 14
|
10.
|
SHARE-BASED COMPENSATION
|
|
Three months ended March 31,
|
|||||
|
2020
|
|
2019
|
|
||
Equity-settled
|
|
|
||||
Production costs
|
$
|
68
|
|
$
|
35
|
|
General and administrative expenses
|
1,145
|
|
416
|
|
||
Exploration, evaluation and reclamation expenses
|
10
|
|
9
|
|
||
Cash-settled
|
|
|
||||
Production costs
|
270
|
|
186
|
|
||
General and administrative expenses
|
(4,714
|
)
|
3,315
|
|
||
Exploration, evaluation and reclamation expenses
|
(37
|
)
|
47
|
|
||
|
$
|
(3,258
|
)
|
$
|
4,008
|
|
SSR Mining Inc.
|
Interim Financial Statements Q1 2020 | 15
|
11.
|
OPERATING SEGMENTS
|
Three months ended March 31, 2020
|
Marigold mine
|
|
Seabee Gold Operation
|
|
Puna Operations (3)
|
|
Exploration evaluation and development properties
|
|
Other reconciling items (1)
|
|
Total
|
|
||||||
Revenue
|
$
|
92,081
|
|
$
|
44,697
|
|
$
|
27,685
|
|
$
|
—
|
|
$
|
—
|
|
$
|
164,463
|
|
Production costs
|
(47,771
|
)
|
(15,048
|
)
|
(28,226
|
)
|
—
|
|
—
|
|
(91,045
|
)
|
||||||
Depreciation and depletion
|
(11,853
|
)
|
(9,918
|
)
|
(6,864
|
)
|
—
|
|
—
|
|
(28,635
|
)
|
||||||
Cost of sales
|
(59,624
|
)
|
(24,966
|
)
|
(35,090
|
)
|
—
|
|
—
|
|
(119,680
|
)
|
||||||
Income (loss) from mine operations
|
$
|
32,457
|
|
$
|
19,731
|
|
$
|
(7,405
|
)
|
$
|
—
|
|
$
|
—
|
|
$
|
44,783
|
|
|
|
|
|
|
|
|
||||||||||||
Exploration, evaluation and reclamation expenses
|
(732
|
)
|
(2,437
|
)
|
(150
|
)
|
(2,782
|
)
|
(261
|
)
|
(6,362
|
)
|
||||||
Care and maintenance expenses (2)
|
—
|
|
—
|
|
(1,330
|
)
|
—
|
|
—
|
|
(1,330
|
)
|
||||||
Operating income (loss)
|
32,348
|
|
17,294
|
|
(9,092
|
)
|
(2,782
|
)
|
(3,002
|
)
|
34,766
|
|
||||||
Income (loss) before income taxes
|
$
|
32,356
|
|
$
|
15,359
|
|
$
|
(11,923
|
)
|
$
|
(3,197
|
)
|
$
|
(2,620
|
)
|
$
|
29,975
|
|
As at March 31, 2020
|
|
|
|
|
|
|
||||||||||||
Total assets
|
$
|
545,386
|
|
$
|
439,520
|
|
$
|
235,377
|
|
$
|
116,070
|
|
$
|
275,651
|
|
$
|
1,612,004
|
|
Non-current assets
|
266,663
|
|
313,553
|
|
151,682
|
|
114,891
|
|
21,972
|
|
868,761
|
|
||||||
Total liabilities
|
(109,295
|
)
|
(96,848
|
)
|
(53,922
|
)
|
(20,903
|
)
|
(193,045
|
)
|
(474,013
|
)
|
SSR Mining Inc.
|
Interim Financial Statements Q1 2020 | 16
|
Three months ended March 31, 2019
|
Marigold
mine
|
|
Seabee Gold Operation
|
|
Puna Operations
|
|
Exploration evaluation and development properties
|
|
Other reconciling items (1)
|
|
Total
|
|
||||||
Revenue
|
$
|
72,263
|
|
$
|
36,431
|
|
$
|
17,556
|
|
$
|
—
|
|
$
|
—
|
|
$
|
126,250
|
|
Production costs
|
(44,992
|
)
|
(13,047
|
)
|
(12,827
|
)
|
—
|
|
—
|
|
(70,866
|
)
|
||||||
Depreciation and depletion
|
(14,290
|
)
|
(9,712
|
)
|
(1,145
|
)
|
—
|
|
—
|
|
(25,147
|
)
|
||||||
Cost of sales
|
(59,282
|
)
|
(22,759
|
)
|
(13,972
|
)
|
—
|
|
—
|
|
(96,013
|
)
|
||||||
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 taxes
|
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
|
)
|
(1)
|
Other reconciling items refer to items that are not reported as part of segment performance as they are managed on a corporate basis.
|
(2)
|
On March 20, 2020, due to the COVID-19 pandemic, we temporarily suspended operations at our Puna Operations in compliance with government decree. During this time, we continued to perform care and maintenance activities and incurred incremental costs as a result. These incremental costs do not relate to producing or selling metal concentrate, and therefore they have been identified and presented separately within operating income (loss).
|
(3)
|
Cost of sales at Puna Operations includes a write-down of inventories to net realizable value of $8.5 million. Of the write-down amount, $7.2 million is included in production costs and $1.3 million in depreciation and depletion.
|
SSR Mining Inc.
|
Interim Financial Statements Q1 2020 | 17
|
|
Fair value at March 31, 2020
|
|||||||||||
|
Level 1 (1)
|
|
Level 2 (2)
|
|
Level 3 (3)
|
|
Total
|
|
||||
Recurring measurements
|
|
|
|
|
||||||||
Trade receivables
|
$
|
—
|
|
$
|
34,955
|
|
$
|
—
|
|
$
|
34,955
|
|
Marketable securities
|
50,293
|
|
—
|
|
—
|
|
50,293
|
|
||||
Other financial assets
|
2,339
|
|
1,000
|
|
544
|
|
3,883
|
|
||||
Accrued liabilities
|
—
|
|
(9,914
|
)
|
—
|
|
(9,914
|
)
|
||||
Derivative liabilities
|
—
|
|
(11,776
|
)
|
—
|
|
(11,776
|
)
|
||||
|
$
|
52,632
|
|
$
|
14,265
|
|
$
|
544
|
|
$
|
67,441
|
|
|
Fair value at December 31, 2019
|
|||||||||||
|
Level 1 (1)
|
|
Level 2 (2)
|
|
Level 3 (3)
|
|
Total
|
|
||||
Recurring measurements
|
|
|
|
|
||||||||
Trade receivables
|
$
|
—
|
|
$
|
54,164
|
|
$
|
—
|
|
$
|
54,164
|
|
Marketable securities
|
66,453
|
|
—
|
|
—
|
|
66,453
|
|
||||
Other financial assets
|
2,339
|
|
2,641
|
|
647
|
|
5,627
|
|
||||
Accrued liabilities
|
—
|
|
(19,539
|
)
|
—
|
|
(19,539
|
)
|
||||
Derivative liabilities
|
—
|
|
—
|
|
—
|
|
—
|
|
||||
|
$
|
68,792
|
|
$
|
37,266
|
|
$
|
647
|
|
$
|
106,705
|
|
(1)
|
Marketable securities of publicly quoted companies, consisting of fair value through other comprehensive income (FVTOCI) investments are valued using a market approach based upon unadjusted quoted prices in an active market obtained from securities exchanges.
|
(2)
|
Trade receivables relating to sales of concentrate are included in Level 2 as the basis of valuation uses quoted commodity forward prices. Accrued liabilities relating to deferred share units (DSUs), restricted share units (RSUs), and PSUs and derivative assets and liabilities are included in Level 2 as the basis of valuation uses quoted prices in active markets.
|
(3)
|
Certain items of deferred consideration from the sale of exploration and evaluation assets are included in Level 3, as certain assumptions used in the calculation of the fair value are not based on observable market data.
|
SSR Mining Inc.
|
Interim Financial Statements Q1 2020 | 18
|
|
|
March 31, 2020
|
December 31, 2019
|
||||||||||
|
Level
|
Carrying amount
|
|
Fair value
|
|
Carrying amount
|
|
Fair value
|
|
||||
2013 Notes (1)
|
1
|
$
|
—
|
|
$
|
—
|
|
$
|
(114,280
|
)
|
$
|
(116,581
|
)
|
2019 Notes (1)
|
1
|
(171,722
|
)
|
(225,297
|
)
|
(169,769
|
)
|
(297,735
|
)
|
||||
Total convertible notes
|
|
$
|
(171,722
|
)
|
$
|
(225,297
|
)
|
$
|
(284,049
|
)
|
$
|
(414,316
|
)
|
(1)
|
The fair value disclosed for our 2013 Notes and 2019 Notes is included in Level 1 as the basis of valuation uses a quoted price in an active market. The fair value of the convertible notes represents both the debt and equity components of the convertible notes (note 6).
|
13.
|
SUPPLEMENTAL CASH FLOW INFORMATION
|
|
Three months ended March 31,
|
|||||
|
2020
|
|
2019
|
|
||
Trade and other receivables
|
$
|
11,976
|
|
$
|
(14,296
|
)
|
Inventories
|
(347
|
)
|
(14,676
|
)
|
||
Accounts payable and accrued liabilities
|
(8,955
|
)
|
1,831
|
|
||
Reclamation and closure cost provision - current
|
(2,130
|
)
|
(236
|
)
|
||
|
$
|
544
|
|
$
|
(27,377
|
)
|
|
Three months ended March 31,
|
|||||
|
2020
|
|
2019
|
|
||
Share-based payments
|
$
|
1,223
|
|
$
|
460
|
|
Write-down/loss on sale of mineral properties, plant and equipment
|
722
|
|
293
|
|
||
Change in fair value of concentrate trade receivables
|
8,724
|
|
—
|
|
||
Other
|
2,990
|
|
(221
|
)
|
||
|
$
|
13,659
|
|
$
|
532
|
|
|
Three months ended March 31,
|
|||||
|
2020
|
|
2019
|
|
||
Transfer of share-based payment reserve upon exercise of stock options
|
(588
|
)
|
(1,126
|
)
|
||
Transfer of equity-settled PSUs
|
—
|
|
1,284
|
|
||
|
$
|
(588
|
)
|
$
|
158
|
|
SSR Mining Inc.
|
Interim Financial Statements Q1 2020 | 19
|
14.
|
SUBSEQUENT EVENTS
|
(a)
|
On May 10, 2020, we entered into an arrangement agreement with Alacer Gold Corp. (“Alacer”) under which we will acquire all of the outstanding common shares of Alacer (the “Proposed Transaction”). Under the terms of the Proposed Transaction, we will acquire each Alacer share for 0.3246 of an SSR Mining share. The Proposed Transaction will be implemented by way of a court-approved plan of arrangement under the Business Corporation Act (Yukon) and is expected to close in the third quarter of 2020. The terms of the Proposed Transaction include customary provisions, including non-solicitation of alternative transactions, a right to match superior proposals and a $70 million reciprocal termination fee payable under certain circumstances. The closing of the Proposed Transaction is subject to approval by the shareholders of both companies, court approval, regulatory approvals and certain other customary closing conditions.
|
(b)
|
On May 14, 2020, we entered into an agreement to sell our SilverCrest Metals Inc. equity position of 9.0 million common shares at a price of C$10.06 per common share for gross proceeds of C$90.5 million, or $64.7 million. At March 31, 2020, the carrying value of these shares included in marketable securities was $46.8 million.
|
SSR Mining Inc.
|
Interim Financial Statements Q1 2020 | 20
|
SSR Mining Inc.
|
MD&A Q1 2020 | 1
|
|
CONTENTS
|
|
|
|
|
|
1
|
|
|
2
|
|
|
3
|
|
|
4
|
|
|
5
|
|
|
6
|
|
|
7
|
|
|
8
|
|
|
9
|
|
|
10
|
|
|
11
|
SSR Mining Inc.
|
MD&A Q1 2020 | 2
|
1.
|
FIRST QUARTER 2020 HIGHLIGHTS
|
▪
|
Strong financial performance: Reported positive income from mine operations totaling $44.8 million, net income of $24.0 million and adjusted attributable net income of $38.8 million, or $0.31 per share.(1)
|
▪
|
Maintained strong balance sheet and liquidity: Cash balance at quarter end was $398.4 million and marketable securities of $50.3 million, while total convertible debt outstanding was reduced to $230 million during the quarter.
|
▪
|
Robust production to start the year: Achieved quarterly consolidated production of 107,331 gold equivalent ounces at cash costs of $824 per payable ounce of gold sold.(1)
|
▪
|
High-grade production at Seabee Gold Operation: Produced 29,521 ounces of gold at cash costs of $544 per payable ounce of gold sold.(1) Mill throughput exceeded 1,050 tonnes per day during January and February 2020. The temporary suspension of Seabee in late March reduced quarterly throughput to 981 tonnes per day.
|
▪
|
Delivering at the Marigold mine: Produced 58,448 ounces of gold at cash costs of $824 per payable ounce of gold sold.(1) Total material mined was over 20 million tonnes, continuing to demonstrate strong and efficient operating practices.
|
▪
|
Consistent operating metrics at Puna Operations: Steady state mill throughput, silver feed grade and recovery led to 1.8 million ounces of silver production at cash costs of $13.49 per payable ounce of silver sold.(1) Mill throughput averaged 4,300 tonnes per day up to March 20, 2020.
|
▪
|
Temporary suspension of operations at Puna and Seabee: Announced the temporary suspension of operations at Puna and Seabee in response to the COVID-19 pandemic. Marigold experienced only minor impacts from the pandemic and continued normal operations during the quarter.
|
▪
|
Continued exploration success: Drilling at Marigold and Seabee yielded positive results indicating potential increases to Mineral Resources. Drilling on greenfield targets yielded three resource grade intercepts at Fisher.
|
▪
|
Redeemed outstanding 2.875% senior convertible notes: Redeemed remaining outstanding 2013 Notes for $115 million in cash on March 30, 2020.
|
▪
|
Announced a zero-premium merger with Alacer Gold on May 11, 2020: Creates a leading intermediate precious metals producer with robust margins, strong free cash flow generation, and long mine lives led by highly experienced management with a track record of value creation.
|
▪
|
Divested SilverCrest equity position: On May 14, 2020, sold entire SilverCrest equity position of 9.0 million shares at a price of C$10.06 per common share for a pre-tax gain of approximately C$55 million.
|
(1)
|
We report the non-GAAP financial measures of cash costs per payable ounce of gold and silver sold, adjusted attributable net income and adjusted attributable net income per share 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.
|
SSR Mining Inc.
|
MD&A Q1 2020 | 3
|
2.
|
OUTLOOK
|
SSR Mining Inc.
|
MD&A Q1 2020 | 4
|
3.
|
BUSINESS OVERVIEW
|
SSR Mining Inc.
|
MD&A Q1 2020 | 5
|
SSR Mining Inc.
|
MD&A Q1 2020 | 6
|
SSR Mining Inc.
|
MD&A Q1 2020 | 7
|
SSR Mining Inc.
|
MD&A Q1 2020 | 8
|
|
|
|
||||
Selected Financial Data
|
Three months ended March 31,
|
|||||
|
2020
|
|
2019
|
|
||
Revenue
|
$
|
164,463
|
|
$
|
126,250
|
|
Income from mine operations
|
$
|
44,783
|
|
$
|
30,237
|
|
Gross margin (2)
|
27
|
%
|
24
|
%
|
||
Operating income
|
$
|
34,766
|
|
$
|
19,628
|
|
Net income
|
$
|
23,976
|
|
$
|
5,732
|
|
Net income attributable to equity holders of SSR Mining
|
$
|
23,976
|
|
$
|
6,464
|
|
Basic attributable income per share
|
$
|
0.19
|
|
$
|
0.05
|
|
Adjusted attributable income before tax (1)
|
$
|
45,057
|
|
$
|
21,546
|
|
Adjusted attributable net income (1)
|
$
|
38,794
|
|
$
|
17,200
|
|
Adjusted basic attributable income per share (1)
|
$
|
0.31
|
|
$
|
0.14
|
|
Cash generated by (used in) operating activities
|
$
|
58,672
|
|
$
|
(303
|
)
|
Cash (used in) investing activities
|
$
|
(49,361
|
)
|
$
|
(33,762
|
)
|
Cash (used in) generated by financing activities
|
$
|
(113,983
|
)
|
$
|
77,441
|
|
|
|
|
||||
Financial Position
|
March 31, 2020
|
|
December 31, 2019
|
|
||
Cash and cash equivalents
|
$
|
398,439
|
|
$
|
503,647
|
|
Marketable securities
|
50,293
|
|
66,453
|
|
||
Current assets
|
743,243
|
|
899,662
|
|
||
Current liabilities
|
96,675
|
|
234,171
|
|
||
Working capital (3)
|
646,568
|
|
665,491
|
|
||
Total assets
|
1,612,004
|
|
1,750,107
|
|
(1)
|
We report non-GAAP financial measures including 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.
|
(2)
|
Gross margin is defined as income from mine operations divided by revenue.
|
(3)
|
Working capital is defined as current assets less current liabilities.
|
SSR Mining Inc.
|
MD&A Q1 2020 | 9
|
SSR Mining Inc.
|
MD&A Q1 2020 | 10
|
4.
|
RESULTS OF OPERATIONS
|
|
Three months ended
|
||||||||||||||
Operating data
|
March 31
2020 |
|
December 31
2019 |
|
September 30
2019 |
|
June 30
2019 |
|
March 31
2019 |
|
|||||
Consolidated production and sales:
|
|
|
|
|
|
||||||||||
Gold produced (oz)
|
87,969
|
|
81,255
|
|
85,313
|
|
81,461
|
|
84,335
|
|
|||||
Silver produced ('000 oz)
|
1,770
|
|
2,132
|
|
1,664
|
|
1,486
|
|
2,392
|
|
|||||
Lead produced ('000 lb) (1)
|
5,536
|
|
7,985
|
|
5,304
|
|
3,879
|
|
6,789
|
|
|||||
Zinc produced ('000 lb) (2)
|
1,821
|
|
3,007
|
|
2,206
|
|
1,539
|
|
1,640
|
|
|||||
|
|
|
|
|
|
||||||||||
Gold sold (oz)
|
85,742
|
|
85,450
|
|
78,928
|
|
83,978
|
|
83,516
|
|
|||||
Silver sold ('000 oz)
|
1,834
|
|
2,584
|
|
1,505
|
|
2,679
|
|
927
|
|
|||||
Lead sold ('000 lb) (1)
|
6,407
|
|
9,371
|
|
4,119
|
|
7,652
|
|
2,977
|
|
|||||
Zinc sold ('000 lb) (2)
|
2,166
|
|
3,067
|
|
2,030
|
|
5,757
|
|
3,218
|
|
|||||
|
|
|
|
|
|
||||||||||
Cash costs ($/oz) - payable gold from Marigold mine (3)
|
$
|
824
|
|
$
|
778
|
|
$
|
822
|
|
$
|
835
|
|
$
|
812
|
|
Cash costs ($/oz) - payable gold from Seabee Gold Operations (3)
|
$
|
544
|
|
$
|
505
|
|
$
|
373
|
|
$
|
526
|
|
$
|
467
|
|
Cash costs ($/oz) - payable silver from Puna Operations (3,5)
|
$
|
13.49
|
|
$
|
8.90
|
|
$
|
14.22
|
|
$
|
9.80
|
|
$
|
9.94
|
|
|
|
|
|
|
|
||||||||||
Gold equivalent production (oz) (4)
|
107,331
|
|
106,205
|
|
104,775
|
|
98,334
|
|
112,514
|
|
|||||
|
|
|
|
|
|
||||||||||
Realized gold price ($/oz) (3)
|
$
|
1,597
|
|
$
|
1,480
|
|
$
|
1,480
|
|
$
|
1,314
|
|
$
|
1,303
|
|
Realized silver price ($/oz) (3)
|
$
|
17.47
|
|
$
|
17.32
|
|
$
|
17.31
|
|
$
|
14.92
|
|
$
|
15.35
|
|
|
|
|
|
|
|
||||||||||
Consolidated costs:
|
|
|
|
|
|
||||||||||
Cash costs per equivalent gold ounce sold ($/oz) (3,4,5)
|
$
|
824
|
|
$
|
716
|
|
$
|
759
|
|
$
|
775
|
|
$
|
712
|
|
AISC per equivalent gold ounce sold ($/oz) (3,4,5)
|
$
|
1,262
|
|
$
|
1,088
|
|
$
|
1,136
|
|
$
|
1,049
|
|
$
|
1,088
|
|
|
|
|
|
|
|
||||||||||
Financial data ($000s)
|
|
|
|
|
|
||||||||||
Revenue
|
$
|
164,463
|
|
$
|
177,603
|
|
$
|
147,848
|
|
$
|
155,149
|
|
$
|
126,250
|
|
Income from mine operations
|
$
|
44,783
|
|
$
|
58,913
|
|
$
|
51,906
|
|
$
|
29,827
|
|
$
|
30,237
|
|
(1)
|
Data for lead production and sales relate only to lead in lead concentrate.
|
(2)
|
Data for zinc production and sales relate only to zinc in zinc concentrate.
|
(3)
|
We report the non-GAAP financial measures of realized metal prices, 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 further information, please refer to “Non-GAAP Financial Measures” in Section 8.
|
(4)
|
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.
|
(5)
|
Puna Operations cash costs and AISC per payable silver ounce sold for the period ending March 31, 2020 include an $8.5 million write-down of inventories to net realizable value.
|
SSR Mining Inc.
|
MD&A Q1 2020 | 11
|
|
Three months ended
|
||||||||||||||
Operating data
|
March 31
2020 |
|
December 31
2019 |
|
September 30
2019 |
|
June 30
2019 |
|
March 31
2019 |
|
|||||
Total material mined (kt)
|
20,259
|
|
18,457
|
|
19,033
|
|
19,254
|
|
17,295
|
|
|||||
Waste removed (kt)
|
15,255
|
|
11,736
|
|
12,676
|
|
12,185
|
|
11,767
|
|
|||||
Total ore stacked (kt)
|
5,004
|
|
6,721
|
|
6,357
|
|
7,070
|
|
5,528
|
|
|||||
Gold stacked grade (g/t)
|
0.30
|
|
0.36
|
|
0.51
|
|
0.38
|
|
0.34
|
|
|||||
Gold recovery (%)
|
76.0
|
|
76.0
|
|
77.0
|
|
75.0
|
|
73.0
|
|
|||||
Strip ratio
|
3.0
|
|
1.7
|
|
2.0
|
|
1.7
|
|
2.1
|
|
|||||
|
|
|
|
|
|
||||||||||
Mining cost ($/t mined)
|
$
|
1.64
|
|
$
|
1.83
|
|
$
|
1.73
|
|
$
|
1.65
|
|
$
|
1.73
|
|
Processing cost ($/t processed)
|
$
|
1.21
|
|
$
|
1.03
|
|
$
|
1.17
|
|
$
|
1.01
|
|
$
|
1.20
|
|
General and administrative costs ($/t processed)
|
$
|
0.70
|
|
$
|
0.54
|
|
$
|
0.54
|
|
$
|
0.47
|
|
$
|
0.54
|
|
|
|
|
|
|
|
||||||||||
Gold produced (oz)
|
58,448
|
|
59,186
|
|
52,968
|
|
54,922
|
|
53,151
|
|
|||||
Gold sold (oz)
|
58,028
|
|
61,088
|
|
50,650
|
|
59,702
|
|
55,517
|
|
|||||
|
|
|
|
|
|
||||||||||
Realized gold price ($/oz) (1)
|
$
|
1,588
|
|
$
|
1,478
|
|
$
|
1,481
|
|
$
|
1,309
|
|
$
|
1,303
|
|
|
|
|
|
|
|
||||||||||
Cash costs ($/oz) (1)
|
$
|
824
|
|
$
|
778
|
|
$
|
822
|
|
$
|
835
|
|
$
|
812
|
|
AISC ($/oz) (1)
|
$
|
1,277
|
|
$
|
1,117
|
|
$
|
1,104
|
|
$
|
986
|
|
$
|
930
|
|
|
|
|
|
|
|
||||||||||
Financial data ($000s)
|
|
|
|
|
|
||||||||||
Revenue
|
$
|
92,081
|
|
$
|
90,198
|
|
$
|
74,820
|
|
$
|
78,039
|
|
$
|
72,263
|
|
Income from mine operations
|
$
|
32,457
|
|
$
|
30,263
|
|
$
|
22,064
|
|
$
|
13,939
|
|
$
|
12,981
|
|
Capital expenditures (2)
|
$
|
13,900
|
|
$
|
17,768
|
|
$
|
10,496
|
|
$
|
6,924
|
|
$
|
3,167
|
|
Capitalized stripping
|
$
|
10,927
|
|
$
|
2,116
|
|
$
|
2,031
|
|
$
|
871
|
|
$
|
2,293
|
|
Exploration expenditures (3)
|
$
|
1,102
|
|
$
|
1,190
|
|
$
|
1,990
|
|
$
|
2,452
|
|
$
|
3,653
|
|
(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 further information, please refer to “Non-GAAP Financial Measures” in Section 8.
|
(2)
|
Excludes capitalized exploration expenditures.
|
(3)
|
Includes capitalized and expensed exploration expenditures.
|
SSR Mining Inc.
|
MD&A Q1 2020 | 12
|
SSR Mining Inc.
|
MD&A Q1 2020 | 13
|
|
Three months ended
|
||||||||||||||
Operating data
|
March 31
2020 |
|
December 31
2019 |
|
September 30
2019 |
|
June 30
2019 |
|
March 31
2019 |
|
|||||
Total ore milled (t)
|
89,282
|
|
87,394
|
|
77,465
|
|
88,424
|
|
90,756
|
|
|||||
Ore milled per day (t/day)
|
981
|
|
950
|
|
842
|
|
971
|
|
1,008
|
|
|||||
Gold mill feed grade (g/t)
|
10.34
|
|
7.89
|
|
12.39
|
|
9.83
|
|
8.59
|
|
|||||
Gold recovery (%)
|
98.1
|
|
97.9
|
|
98.8
|
|
98.4
|
|
97.2
|
|
|||||
|
|
|
|
|
|
||||||||||
Mining costs ($/t mined)
|
$
|
68
|
|
$
|
59
|
|
$
|
61
|
|
$
|
53
|
|
$
|
52
|
|
Processing costs ($/t processed)
|
$
|
31
|
|
$
|
29
|
|
$
|
28
|
|
$
|
35
|
|
$
|
28
|
|
General and administrative costs ($/t processed)
|
$
|
65
|
|
$
|
59
|
|
$
|
59
|
|
$
|
50
|
|
$
|
53
|
|
|
|
|
|
|
|
||||||||||
Gold produced (oz)
|
29,521
|
|
22,069
|
|
32,345
|
|
26,539
|
|
31,184
|
|
|||||
Gold sold (oz)
|
27,714
|
|
24,362
|
|
28,278
|
|
24,276
|
|
27,999
|
|
|||||
|
|
|
|
|
|
||||||||||
Realized gold price ($/oz) (1)
|
$
|
1,615
|
|
$
|
1,484
|
|
$
|
1,480
|
|
$
|
1,329
|
|
$
|
1,302
|
|
|
|
|
|
|
|
||||||||||
Cash costs ($/oz) (1)
|
$
|
544
|
|
$
|
505
|
|
$
|
373
|
|
$
|
526
|
|
$
|
467
|
|
AISC ($/oz) (1)
|
$
|
982
|
|
$
|
751
|
|
$
|
715
|
|
$
|
828
|
|
$
|
947
|
|
|
|
|
|
|
|
||||||||||
Financial data ($000s)
|
|
|
|
|
|
||||||||||
Revenue
|
$
|
44,697
|
|
$
|
36,142
|
|
$
|
41,331
|
|
$
|
32,237
|
|
$
|
36,431
|
|
Income from mine operations
|
$
|
19,731
|
|
$
|
13,735
|
|
$
|
22,134
|
|
$
|
11,762
|
|
$
|
13,672
|
|
Capital expenditures (2)
|
$
|
9,027
|
|
$
|
2,772
|
|
$
|
5,406
|
|
$
|
3,358
|
|
$
|
8,772
|
|
Capitalized development
|
$
|
3,067
|
|
$
|
3,312
|
|
$
|
3,352
|
|
$
|
3,345
|
|
$
|
3,379
|
|
Exploration expenditures (3)
|
$
|
2,437
|
|
$
|
1,210
|
|
$
|
2,131
|
|
$
|
2,257
|
|
$
|
3,172
|
|
(1)
|
We report the non-GAAP financial measures of realized gold price, cash costs and AISC per payable ounce of gold sold to manage and evaluate operating performance at the Seabee Gold Operation. For further information, please refer to “Non-GAAP Financial Measures” in Section 8.
|
(2)
|
Excludes capitalized exploration expenditures.
|
(3)
|
Includes capitalized and expensed exploration expenditures.
|
SSR Mining Inc.
|
MD&A Q1 2020 | 14
|
SSR Mining Inc.
|
MD&A Q1 2020 | 15
|
|
Three months ended
|
||||||||||||||
Operating data
|
March 31
2020 |
|
December 31
2019 |
|
September 30
2019 |
|
June 30
2019 |
|
March 31
2019 |
|
|||||
Total material mined (kt)
|
1,953
|
|
3,244
|
|
3,116
|
|
3,304
|
|
2,618
|
|
|||||
Waste removed (kt)
|
1,674
|
|
2,725
|
|
2,531
|
|
3,114
|
|
2,469
|
|
|||||
Strip ratio
|
6.0
|
|
5.3
|
|
4.3
|
|
16.4
|
|
16.6
|
|
|||||
Ore milled (kt)
|
340
|
|
400
|
|
336
|
|
313
|
|
345
|
|
|||||
|
|
|
|
|
|
||||||||||
Silver mill feed grade (g/t)
|
170
|
|
174
|
|
165
|
|
160
|
|
235
|
|
|||||
Lead mill feed grade (%)
|
0.81
|
|
0.99
|
|
0.81
|
|
0.71
|
|
1.07
|
|
|||||
Zinc mill feed grade (%)
|
0.44
|
|
0.63
|
|
0.60
|
|
0.46
|
|
0.46
|
|
|||||
Silver recovery (%)
|
95.3
|
|
95.1
|
|
93.5
|
|
92.4
|
|
91.7
|
|
|||||
Lead recovery (%)
|
91.4
|
|
91.9
|
|
88.1
|
|
79.4
|
|
83.6
|
|
|||||
Zinc recovery (%)
|
55.0
|
|
54.3
|
|
49.3
|
|
48.1
|
|
47.3
|
|
|||||
|
|
|
|
|
|
||||||||||
Mining costs ($/t mined)
|
$
|
3.62
|
|
$
|
2.62
|
|
$
|
2.76
|
|
$
|
2.33
|
|
$
|
2.74
|
|
Processing costs ($/t milled)
|
$
|
29.98
|
|
$
|
29.53
|
|
$
|
36.34
|
|
$
|
32.57
|
|
$
|
29.62
|
|
General and administrative costs ($/t milled)
|
$
|
8.36
|
|
$
|
9.11
|
|
$
|
9.24
|
|
$
|
8.27
|
|
$
|
8.02
|
|
|
|
|
|
|
|
||||||||||
Silver produced ('000 oz)
|
1,770
|
|
2,132
|
|
1,664
|
|
1,486
|
|
2,392
|
|
|||||
Silver sold ('000 oz)
|
1,834
|
|
2,584
|
|
1,505
|
|
2,679
|
|
927
|
|
|||||
|
|
|
|
|
|
||||||||||
Lead produced ('000 lb) (1)
|
5,536
|
|
7,985
|
|
5,304
|
|
3,879
|
|
6,789
|
|
|||||
Lead sold ('000 lb) (1)
|
6,407
|
|
9,371
|
|
4,119
|
|
7,652
|
|
2,977
|
|
|||||
|
|
|
|
|
|
||||||||||
Zinc produced ('000 lb) (2)
|
1,821
|
|
3,007
|
|
2,206
|
|
1,539
|
|
1,640
|
|
|||||
Zinc sold ('000 lb) (2)
|
2,166
|
|
3,067
|
|
2,030
|
|
5,757
|
|
3,218
|
|
|||||
|
|
|
|
|
|
||||||||||
Realized silver price ($/oz) (3)
|
$
|
17.47
|
|
$
|
17.32
|
|
$
|
17.31
|
|
$
|
14.92
|
|
$
|
15.35
|
|
Realized lead price ($/lb) (3)
|
$
|
0.85
|
|
$
|
0.92
|
|
$
|
0.94
|
|
$
|
0.85
|
|
$
|
0.95
|
|
Realized zinc price ($/lb) (3)
|
$
|
0.88
|
|
$
|
1.11
|
|
$
|
1.03
|
|
$
|
1.28
|
|
$
|
1.27
|
|
|
|
|
|
|
|
||||||||||
Cash costs ($/oz) (3,5)
|
$
|
13.49
|
|
$
|
8.90
|
|
$
|
14.22
|
|
$
|
9.80
|
|
$
|
9.94
|
|
AISC ($/oz) (3,5)
|
$
|
16.40
|
|
$
|
11.18
|
|
$
|
17.36
|
|
$
|
13.08
|
|
$
|
19.76
|
|
|
|
|
|
|
|
||||||||||
Financial Data ($000s)
|
|
|
|
|
|
||||||||||
Revenue
|
$
|
27,685
|
|
$
|
51,263
|
|
$
|
31,697
|
|
$
|
44,873
|
|
$
|
17,556
|
|
(Loss) Income from mine operations
|
$
|
(7,405
|
)
|
$
|
14,915
|
|
$
|
7,708
|
|
$
|
4,126
|
|
$
|
3,584
|
|
Capital expenditures (4)
|
$
|
2,088
|
|
$
|
2,134
|
|
$
|
1,782
|
|
$
|
1,157
|
|
$
|
1,543
|
|
Capitalized stripping
|
$
|
2,192
|
|
$
|
2,565
|
|
$
|
1,385
|
|
$
|
6,273
|
|
$
|
6,191
|
|
Exploration expenditures
|
$
|
150
|
|
$
|
492
|
|
$
|
229
|
|
$
|
65
|
|
$
|
1
|
|
(1)
|
Data for lead production and sales relate only to lead in lead concentrate.
|
(2)
|
Data for zinc production and sales relate only to zinc in zinc concentrate.
|
(3)
|
We report the non-GAAP financial measures of realized silver, lead and zinc prices, cash costs and AISC per payable ounce of silver sold to manage and evaluate operating performance at Puna Operations. For further information, please refer to “Non-GAAP Financial Measures” in Section 8.
|
(4)
|
Does not include capitalized exploration or development of the Chinchillas project.
|
(5)
|
Cash costs and AISC per payable silver ounce sold for the period ending March 31, 2020 include an $8.5 million write-down of inventories to net realizable value.
|
SSR Mining Inc.
|
MD&A Q1 2020 | 16
|
SSR Mining Inc.
|
MD&A Q1 2020 | 17
|
5.
|
QUARTERLY FINANCIAL RESULTS
|
|
2020
|
2019
|
2018
|
|||||||||||||||||||||
(in thousands of USD, unless otherwise noted)
|
Mar-31
|
|
Dec-31
|
|
Sep-30
|
|
Jun-30
|
|
Mar-31
|
|
Dec-31
|
|
Sep-30
|
|
Jun-30
|
|
||||||||
Revenue
|
$
|
164,463
|
|
$
|
177,603
|
|
$
|
147,848
|
|
$
|
155,149
|
|
$
|
126,250
|
|
$
|
103,712
|
|
$
|
115,033
|
|
$
|
104,028
|
|
Gold equivalent payable ounces sold
|
104,715
|
|
114,268
|
|
95,112
|
|
112,022
|
|
93,452
|
|
82,439
|
|
96,337
|
|
80,937
|
|
||||||||
Realized gold price ($/oz) (1)
|
$
|
1,597
|
|
$
|
1,480
|
|
$
|
1,480
|
|
$
|
1,314
|
|
$
|
1,303
|
|
$
|
1,230
|
|
$
|
1,208
|
|
$
|
1,304
|
|
Realized silver price ($/oz) (1)
|
$
|
17.47
|
|
$
|
17.32
|
|
$
|
17.31
|
|
$
|
14.92
|
|
$
|
15.35
|
|
$
|
14.42
|
|
$
|
15.45
|
|
$
|
16.49
|
|
Income from mine operations
|
$
|
44,783
|
|
$
|
58,913
|
|
$
|
51,906
|
|
$
|
29,827
|
|
$
|
30,237
|
|
$
|
16,536
|
|
$
|
21,875
|
|
$
|
21,203
|
|
Income (loss) before tax
|
$
|
29,975
|
|
$
|
31,148
|
|
$
|
32,981
|
|
$
|
13,103
|
|
$
|
8,897
|
|
$
|
(7,559
|
)
|
$
|
6,632
|
|
$
|
9,823
|
|
Gross margin (2)
|
27.2
|
%
|
33.2
|
%
|
35.1
|
%
|
19.2
|
%
|
24.0
|
%
|
15.9
|
%
|
19.0
|
%
|
20.4
|
%
|
||||||||
Net income (loss)
|
$
|
23,976
|
|
$
|
19,479
|
|
$
|
18,132
|
|
$
|
12,414
|
|
$
|
5,732
|
|
$
|
(2,544
|
)
|
$
|
2,228
|
|
$
|
2,607
|
|
Attributable income (loss) to equity holders of SSR Mining
|
$
|
23,976
|
|
$
|
19,479
|
|
$
|
20,741
|
|
$
|
10,631
|
|
$
|
6,464
|
|
$
|
(3,486
|
)
|
$
|
6,374
|
|
$
|
5,117
|
|
Basic attributable income (loss) per share
|
$
|
0.19
|
|
$
|
0.16
|
|
$
|
0.17
|
|
$
|
0.09
|
|
$
|
0.05
|
|
$
|
(0.03
|
)
|
$
|
0.05
|
|
$
|
0.04
|
|
Diluted attributable income (loss) per share
|
$
|
0.19
|
|
$
|
0.16
|
|
$
|
0.17
|
|
$
|
0.09
|
|
$
|
0.05
|
|
$
|
(0.03
|
)
|
$
|
0.05
|
|
$
|
0.04
|
|
Cash and cash equivalents
|
$
|
398,439
|
|
$
|
503,647
|
|
$
|
474,479
|
|
$
|
452,160
|
|
$
|
461,351
|
|
$
|
419,212
|
|
$
|
474,511
|
|
$
|
493,642
|
|
Total assets
|
$
|
1,612,004
|
|
$
|
1,750,107
|
|
$
|
1,688,443
|
|
$
|
1,650,222
|
|
$
|
1,607,142
|
|
$
|
1,521,138
|
|
$
|
1,503,717
|
|
$
|
1,504,987
|
|
Working capital (3)
|
$
|
646,568
|
|
$
|
665,491
|
|
$
|
636,310
|
|
$
|
599,685
|
|
$
|
616,758
|
|
$
|
649,865
|
|
$
|
649,448
|
|
$
|
671,967
|
|
Non-current financial liabilities
|
$
|
474,013
|
|
$
|
169,769
|
|
$
|
588,346
|
|
$
|
169,347
|
|
$
|
167,643
|
|
$
|
247,551
|
|
$
|
243,858
|
|
$
|
240,234
|
|
(1)
|
We report the non-GAAP financial measures of realized metal prices per payable ounce of precious metals sold 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.
|
(2)
|
Gross margin is defined as income from mine operations divided by revenue.
|
(3)
|
Working capital is defined as current assets less current liabilities.
|
SSR Mining Inc.
|
MD&A Q1 2020 | 18
|
|
Three months ended March 31,
|
|||||
|
2020
|
|
2019
|
|
||
Revenue
|
$
|
164,463
|
|
$
|
126,250
|
|
Cost of sales
|
|
|
||||
Production costs
|
(91,045
|
)
|
(70,866
|
)
|
||
Depletion and depreciation
|
(28,635
|
)
|
(25,147
|
)
|
||
|
(119,680
|
)
|
(96,013
|
)
|
||
Income from mine operations
|
44,783
|
|
30,237
|
|
||
General and administrative expenses
|
(2,325
|
)
|
(6,871
|
)
|
||
Exploration, evaluation and reclamation expenses
|
(6,362
|
)
|
(3,738
|
)
|
||
Care and maintenance expenses
|
(1,330
|
)
|
—
|
|
||
Operating income
|
34,766
|
|
19,628
|
|
||
Interest and other finance income
|
2,397
|
|
4,903
|
|
||
Interest expense and other finance costs
|
(6,966
|
)
|
(8,645
|
)
|
||
Loss on redemption of convertible debt
|
—
|
|
(5,423
|
)
|
||
Other (expense) income
|
(1,380
|
)
|
597
|
|
||
Foreign exchange gain (loss)
|
1,158
|
|
(2,163
|
)
|
||
Income before taxes
|
29,975
|
|
8,897
|
|
||
Income tax expense
|
(5,999
|
)
|
(3,165
|
)
|
||
Net income
|
$
|
23,976
|
|
$
|
5,732
|
|
|
|
|
||||
Attributable to:
|
|
|
||||
Equity holders of SSR Mining
|
$
|
23,976
|
|
$
|
6,464
|
|
Non-controlling interests
|
$
|
—
|
|
$
|
(732
|
)
|
SSR Mining Inc.
|
MD&A Q1 2020 | 19
|
Three months ended March 31,
|
2020
|
2019
|
Change
|
|||||
Depreciation and depletion ($000s)
|
$
|
28,635
|
|
$
|
25,147
|
|
14
|
%
|
Gold equivalent payable ounces sold
|
104,715
|
|
93,452
|
|
12
|
%
|
||
Depreciation and depletion per equivalent ounce
|
$
|
273
|
|
$
|
269
|
|
1
|
%
|
SSR Mining Inc.
|
MD&A Q1 2020 | 20
|
Three months ended March 31
|
2020
|
|
2019
|
|
||
Interest expense on convertible notes
|
$
|
4,953
|
|
$
|
5,715
|
|
Accretion of reclamation and closure cost provision
|
946
|
|
833
|
|
||
Interest expense on moratorium liability
|
540
|
|
1,760
|
|
||
Other
|
527
|
|
337
|
|
||
|
$
|
6,966
|
|
$
|
8,645
|
|
SSR Mining Inc.
|
MD&A Q1 2020 | 21
|
|
Three months ended March 31,
|
|||||
|
2020
|
|
2019
|
|
||
Cash generated by (used in) operating activities
|
$
|
58,672
|
|
$
|
(303
|
)
|
Cash used in investing activities
|
(49,361
|
)
|
(33,762
|
)
|
||
Cash (used in) generated by financing activities
|
(113,983
|
)
|
77,441
|
|
||
Effect of foreign exchange rate changes on cash and cash equivalents
|
(536
|
)
|
(1,237
|
)
|
||
(Decrease) increase in cash and cash equivalents
|
(105,208
|
)
|
42,139
|
|
||
Cash and cash equivalents, beginning of period
|
503,647
|
|
419,212
|
|
||
Cash and cash equivalents, end of period
|
$
|
398,439
|
|
$
|
461,351
|
|
SSR Mining Inc.
|
MD&A Q1 2020 | 22
|
▪
|
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.
|
SSR Mining Inc.
|
MD&A Q1 2020 | 23
|
6.
|
FINANCIAL INSTRUMENTS AND RELATED RISKS
|
SSR Mining Inc.
|
MD&A Q1 2020 | 24
|
SSR Mining Inc.
|
MD&A Q1 2020 | 25
|
7.
|
RISKS AND UNCERTAINTIES
|
SSR Mining Inc.
|
MD&A Q1 2020 | 26
|
8.
|
NON-GAAP FINANCIAL MEASURES
|
SSR Mining Inc.
|
MD&A Q1 2020 | 27
|
(in thousands of USD, unless otherwise noted)
|
Q1 2020
|
|
Q4 2019
|
|
Q3 2019
|
|
Q2 2019
|
|
Q1 2019
|
|
|||||
Marigold mine
|
|
|
|
|
|
||||||||||
Cost of sales (A)
|
$
|
59,625
|
|
$
|
59,936
|
|
$
|
52,755
|
|
$
|
64,100
|
|
$
|
59,282
|
|
Add: Treatment and refining costs
|
28
|
|
62
|
|
68
|
|
56
|
|
73
|
|
|||||
Less: By-product revenue
|
(10
|
)
|
(19
|
)
|
(25
|
)
|
(13
|
)
|
(14
|
)
|
|||||
Less: Depreciation and depletion
|
(11,853
|
)
|
(12,464
|
)
|
(11,204
|
)
|
(14,333
|
)
|
(14,290
|
)
|
|||||
Cash costs
|
47,790
|
|
47,515
|
|
41,594
|
|
49,810
|
|
45,051
|
|
|||||
Sustaining capital expenditures
|
13,900
|
|
17,768
|
|
10,496
|
|
6,924
|
|
3,167
|
|
|||||
Capitalized stripping costs
|
10,927
|
|
2,116
|
|
2,031
|
|
871
|
|
2,293
|
|
|||||
Exploration and evaluation costs (sustaining)
|
1,097
|
|
332
|
|
1,336
|
|
954
|
|
636
|
|
|||||
Reclamation and closure costs
|
353
|
|
449
|
|
409
|
|
268
|
|
429
|
|
|||||
AISC (D)
|
$
|
74,067
|
|
$
|
68,180
|
|
$
|
55,866
|
|
$
|
58,827
|
|
$
|
51,576
|
|
|
|
|
|
|
|
||||||||||
Seabee Gold Operation
|
|
|
|
|
|
||||||||||
Cost of sales (B)
|
$
|
24,966
|
|
$
|
22,406
|
|
$
|
19,196
|
|
$
|
20,475
|
|
$
|
22,759
|
|
Add: Treatment and refining costs
|
38
|
|
46
|
|
(4
|
)
|
52
|
|
33
|
|
|||||
Less: By-product revenue
|
(8
|
)
|
(24
|
)
|
(11
|
)
|
(7
|
)
|
(8
|
)
|
|||||
Less: Depreciation and depletion
|
(9,918
|
)
|
(10,124
|
)
|
(8,771
|
)
|
(7,761
|
)
|
(9,712
|
)
|
|||||
Cash costs
|
15,078
|
|
12,304
|
|
10,410
|
|
12,759
|
|
13,072
|
|
|||||
Sustaining capital expenditures
|
9,027
|
|
2,633
|
|
5,406
|
|
3,358
|
|
8,772
|
|
|||||
Capitalized development
|
3,067
|
|
3,313
|
|
3,352
|
|
3,345
|
|
3,379
|
|
|||||
Exploration and evaluation costs (sustaining)
|
—
|
|
—
|
|
768
|
|
605
|
|
1,251
|
|
|||||
Reclamation and closure costs
|
34
|
|
35
|
|
34
|
|
34
|
|
34
|
|
|||||
AISC (E)
|
$
|
27,206
|
|
$
|
18,285
|
|
$
|
19,970
|
|
$
|
20,101
|
|
$
|
26,508
|
|
|
|
|
|
|
|
||||||||||
Puna Operations
|
|
|
|
|
|
||||||||||
Cost of sales (C)
|
$
|
35,089
|
|
$
|
36,348
|
|
$
|
23,991
|
|
$
|
40,747
|
|
$
|
13,972
|
|
Add: Treatment and refining costs
|
2,059
|
|
2,916
|
|
1,687
|
|
3,887
|
|
1,709
|
|
|||||
Less: By-product revenue
|
(6,834
|
)
|
(10,388
|
)
|
(4,178
|
)
|
(12,306
|
)
|
(6,116
|
)
|
|||||
Less: Depreciation and depletion
|
(6,864
|
)
|
(6,921
|
)
|
(1,353
|
)
|
(8,078
|
)
|
(1,146
|
)
|
|||||
Cash costs (3)
|
23,450
|
|
21,955
|
|
20,147
|
|
24,250
|
|
8,419
|
|
|||||
Sustaining capital expenditures
|
2,088
|
|
2,134
|
|
1,839
|
|
1,157
|
|
1,543
|
|
|||||
Capitalized stripping costs
|
2,192
|
|
2,565
|
|
1,385
|
|
6,273
|
|
6,191
|
|
|||||
Exploration and evaluation costs (sustaining)
|
150
|
|
492
|
|
229
|
|
65
|
|
1
|
|
|||||
Reclamation and closure costs
|
629
|
|
433
|
|
994
|
|
605
|
|
590
|
|
|||||
AISC (F) (3)
|
$
|
28,509
|
|
$
|
27,579
|
|
$
|
24,594
|
|
$
|
32,350
|
|
$
|
16,744
|
|
|
|
|
|
|
|
||||||||||
Cost of sales, per consolidated statement of income (loss) (A+B+C)
|
$
|
119,680
|
|
$
|
118,690
|
|
$
|
95,942
|
|
$
|
125,322
|
|
$
|
96,013
|
|
|
|
|
|
|
|
||||||||||
AISC (total for all mines) (D+E+F)
|
$
|
129,782
|
|
$
|
114,044
|
|
$
|
100,430
|
|
$
|
111,278
|
|
$
|
94,828
|
|
General and administrative costs
|
2,325
|
|
10,242
|
|
7,602
|
|
6,214
|
|
6,871
|
|
|||||
AISC - consolidated
|
$
|
132,107
|
|
$
|
124,286
|
|
$
|
108,032
|
|
$
|
117,492
|
|
$
|
101,699
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
SSR Mining Inc.
|
MD&A Q1 2020 | 28
|
|
Q1 2020
|
|
Q4 2019
|
|
Q3 2019
|
|
Q2 2019
|
|
Q1 2019
|
|
|||||
Marigold mine
|
|
|
|
|
|
||||||||||
Payable ounces of gold sold (oz)
|
58,000
|
|
61,054
|
|
50,617
|
|
59,666
|
|
55,486
|
|
|||||
Cash costs per payable gold ounce sold ($/oz)
|
$
|
824
|
|
$
|
778
|
|
$
|
822
|
|
$
|
835
|
|
$
|
812
|
|
AISC per payable gold ounce sold ($/oz)
|
$
|
1,277
|
|
$
|
1,117
|
|
$
|
1,104
|
|
$
|
986
|
|
$
|
930
|
|
|
|
|
|
|
|
||||||||||
Seabee Gold Operation
|
|
|
|
|
|
||||||||||
Payable ounces of gold sold (oz)
|
27,700
|
|
24,350
|
|
27,928
|
|
24,264
|
|
27,985
|
|
|||||
Cash costs per payable gold ounce sold ($/oz)
|
$
|
544
|
|
$
|
505
|
|
$
|
373
|
|
$
|
526
|
|
$
|
467
|
|
AISC per payable gold ounce sold ($/oz)
|
$
|
982
|
|
$
|
751
|
|
$
|
715
|
|
$
|
828
|
|
$
|
947
|
|
|
|
|
|
|
|
||||||||||
Puna Operations
|
|
|
|
|
|
||||||||||
Payable ounces of silver sold (oz)
|
1,738,201
|
|
2,466,481
|
|
1,416,487
|
|
2,474,058
|
|
847,286
|
|
|||||
Cash costs per payable silver ounce sold ($/oz) (3)
|
$
|
13.49
|
|
$
|
8.90
|
|
$
|
14.22
|
|
$
|
9.80
|
|
$
|
9.94
|
|
AISC per payable silver ounce sold ($/oz) (3)
|
$
|
16.40
|
|
$
|
11.18
|
|
$
|
17.36
|
|
$
|
13.08
|
|
$
|
19.76
|
|
|
|
|
|
|
|
||||||||||
Realized gold price ($/oz)
|
1,597
|
|
1,480
|
|
1,480
|
|
1,314
|
|
1,303
|
|
|||||
Realized silver price ($/oz)
|
17.47
|
|
17.32
|
|
17.31
|
|
14.92
|
|
15.35
|
|
|||||
|
|
|
|
|
|
||||||||||
Precious metals equivalency
|
|
|
|
|
|
||||||||||
Total cash costs (for all metals)
|
$
|
86,318
|
|
$
|
81,774
|
|
$
|
72,151
|
|
$
|
86,819
|
|
$
|
66,542
|
|
Equivalent payable gold ounces sold (1,2)
|
104,715
|
|
114,268
|
|
95,112
|
|
112,022
|
|
93,452
|
|
|||||
Cash costs per equivalent payable gold ounce sold ($/oz)
|
$
|
824
|
|
$
|
716
|
|
$
|
759
|
|
$
|
775
|
|
$
|
712
|
|
Consolidated AISC per equivalent payable gold ounce sold ($/oz)
|
$
|
1,262
|
|
$
|
1,088
|
|
$
|
1,136
|
|
$
|
1,049
|
|
$
|
1,088
|
|
(1)
|
Gold equivalent ounces have been established using realized metal prices per payable ounce of precious metal sold in the period and applied to the recovered metal content of the gold and silver sold by the Marigold mine, the Seabee Gold Operation and Puna Operations. We have not included zinc and lead as they are considered a by-product.
|
(2)
|
Equivalent payable gold ounces sold may not calculate based on amounts presented in this table due to rounding.
|
(3)
|
Puna Operations cash costs and AISC per payable silver ounce sold for the period ending March 31, 2020 include an $8.5 million write-down of inventories to net realizable value.
|
SSR Mining Inc.
|
MD&A Q1 2020 | 29
|
|
Three months ended March 31,
|
|||||
(in thousands of USD, unless otherwise noted)
|
2020
|
|
2019
|
|
||
|
|
|
||||
Income before income tax
|
$
|
29,975
|
|
$
|
8,897
|
|
Non-controlling interest
|
—
|
|
732
|
|
||
Income before tax attributable to our equity holders
|
29,975
|
|
9,629
|
|
||
|
|
|
||||
Adjusted for:
|
|
|
||||
Non-cash finance expense, net of non-cash finance income
|
3,532
|
|
4,999
|
|
||
Non-cash foreign exchange loss
|
1,003
|
|
296
|
|
||
Write-down/loss on disposal of mineral properties, plant and equipment
|
722
|
|
—
|
|
||
Loss on redemption of convertible notes
|
—
|
|
5,423
|
|
||
Write-down of inventories to net realizable value
|
8,495
|
|
—
|
|
||
Care and maintenance expenses
|
1,330
|
|
—
|
|
||
Other items
|
—
|
|
1,199
|
|
||
Adjusted attributable income before tax to our equity holders
|
45,057
|
|
21,546
|
|
||
|
|
|
||||
Income tax expense for the period
|
(5,999
|
)
|
(3,165
|
)
|
||
|
|
|
||||
Adjusted for:
|
|
|
||||
Change in prior period estimates
|
(394
|
)
|
209
|
|
||
Tax impact on the redemption of convertible notes
|
—
|
|
(1,687
|
)
|
||
Other items
|
130
|
|
297
|
|
||
Adjusted attributable income tax expense
|
(6,263
|
)
|
(4,346
|
)
|
||
|
|
|
||||
Adjusted attributable net income to our equity holders
|
$
|
38,794
|
|
$
|
17,200
|
|
|
|
|
||||
Weighted average shares outstanding (000's)
|
123,228
|
|
121,023
|
|
||
|
|
|
||||
Adjusted basic attributable income per share to our equity holders ($)
|
$
|
0.31
|
|
$
|
0.14
|
|
SSR Mining Inc.
|
MD&A Q1 2020 | 30
|
9.
|
CRITICAL ACCOUNTING POLICIES AND ESTIMATES
|
10.
|
INTERNAL CONTROL OVER FINANCIAL REPORTING AND DISCLOSURE CONTROLS AND PROCEDURES
|
SSR Mining Inc.
|
MD&A Q1 2020 | 31
|
11.
|
CAUTIONARY NOTES REGARDING FORWARD-LOOKING STATEMENTS AND MINERAL RESERVES AND MINERAL RESOURCES ESTIMATES
|
SSR Mining Inc.
|
MD&A Q1 2020 | 32
|
SSR Mining Inc.
|
MD&A Q1 2020 | 33
|
SSR Mining Inc.
|
MD&A Q1 2020 | 34
|
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, 2020.
|
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, 2020 and ended on March 31, 2020 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, 2020.
|
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, 2020 and ended on March 31, 2020 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.
|
|
|
News Release 20-13
|
▪
|
Strong financial performance: Reported positive income from mine operations totaling $44.8 million, net income of $24.0 million and adjusted attributable net income of $38.8 million, or $0.31 per share.(1)
|
▪
|
Maintained strong balance sheet and liquidity: Cash balance at quarter end was $398.4 million and marketable securities of $50.3 million, while total convertible debt outstanding was reduced to $230 million during the quarter.
|
▪
|
Robust production to start the year: Achieved quarterly consolidated production of 107,331 gold equivalent ounces at cash costs of $824 per payable ounce of gold sold.(1)
|
▪
|
High-grade production at Seabee Gold Operation: Produced 29,521 ounces of gold at cash costs of $544 per payable ounce of gold sold.(1) Mill throughput exceeded 1,050 tonnes per day during January and February 2020. The temporary suspension of Seabee in late March reduced quarterly throughput to 981 tonnes per day.
|
▪
|
Delivering at the Marigold mine: Produced 58,448 ounces of gold at cash costs of $824 per payable ounce of gold sold.(1) Total material mined was over 20 million tonnes, continuing to demonstrate strong and efficient operating practices.
|
▪
|
Consistent operating metrics at Puna Operations: Steady state mill throughput, silver feed grade and recovery led to 1.8 million ounces of silver production at cash costs of $13.49 per payable ounce of silver sold.(1) Mill throughput averaged 4,300 tonnes per day up to March 20, 2020.
|
▪
|
Temporary suspension of operations at Puna and Seabee: Announced the temporary suspension of operations at Puna and Seabee in response to the COVID-19 pandemic. Marigold experienced only minor impacts from the pandemic and continued normal operations during the quarter.
|
▪
|
Continued exploration success: Drilling at Marigold and Seabee yielded positive results indicating potential increases to Mineral Resources. Drilling on greenfield targets yielded three resource grade intercepts at Fisher.
|
▪
|
Redeemed outstanding 2.875% senior convertible notes: Redeemed remaining outstanding 2013 Notes for $115 million in cash on March 30, 2020.
|
▪
|
Announced a zero-premium merger with Alacer Gold on May 11, 2020: Creates a leading intermediate precious metals producer with robust margins, strong free cash flow generation, and long mine lives led by highly experienced management with a track record of value creation.
|
▪
|
Divested SilverCrest equity position: On May 14, 2020, sold entire SilverCrest equity position of 9.0 million shares at a price of C$10.06 per common share for pre-tax gain of approximately C$55 million.
|
(1)
|
We report the non-GAAP financial measures of cash costs per payable ounce of gold and silver sold, adjusted attributable net income and adjusted attributable net income per share to manage and evaluate operating performance at the Marigold mine, the Seabee Gold Operation and Puna Operations. See “Cautionary Note Regarding Non-GAAP Measures”.
|
|
|
|
SSR Mining Inc.
|
|
PAGE 2
|
|
Three months ended
|
||||||||||||||
Operating data
|
March 31
2020 |
|
December 31
2019 |
|
September 30
2019 |
|
June 30
2019 |
|
March 31
2019 |
|
|||||
Total material mined (kt)
|
20,259
|
|
18,457
|
|
19,033
|
|
19,254
|
|
17,295
|
|
|||||
Waste removed (kt)
|
15,255
|
|
11,736
|
|
12,676
|
|
12,185
|
|
11,767
|
|
|||||
Total ore stacked (kt)
|
5,004
|
|
6,721
|
|
6,357
|
|
7,070
|
|
5,528
|
|
|||||
Gold stacked grade (g/t)
|
0.30
|
|
0.36
|
|
0.51
|
|
0.38
|
|
0.34
|
|
|||||
Gold recovery (%)
|
76.0
|
|
76.0
|
|
77.0
|
|
75.0
|
|
73.0
|
|
|||||
Strip ratio
|
3.0
|
|
1.7
|
|
2.0
|
|
1.7
|
|
2.1
|
|
|||||
|
|
|
|
|
|
||||||||||
Mining cost ($/t mined)
|
$
|
1.64
|
|
$
|
1.83
|
|
$
|
1.73
|
|
$
|
1.65
|
|
$
|
1.73
|
|
Processing cost ($/t processed)
|
$
|
1.21
|
|
$
|
1.03
|
|
$
|
1.17
|
|
$
|
1.01
|
|
$
|
1.20
|
|
General and administrative costs ($/t processed)
|
$
|
0.70
|
|
$
|
0.54
|
|
$
|
0.54
|
|
$
|
0.47
|
|
$
|
0.54
|
|
|
|
|
|
|
|
||||||||||
Gold produced (oz)
|
58,448
|
|
59,186
|
|
52,968
|
|
54,922
|
|
53,151
|
|
|||||
Gold sold (oz)
|
58,028
|
|
61,088
|
|
50,650
|
|
59,702
|
|
55,517
|
|
|||||
|
|
|
|
|
|
||||||||||
Realized gold price ($/oz) (1)
|
$
|
1,588
|
|
$
|
1,478
|
|
$
|
1,481
|
|
$
|
1,309
|
|
$
|
1,303
|
|
|
|
|
|
|
|
||||||||||
Cash costs ($/oz) (1)
|
$
|
824
|
|
$
|
778
|
|
$
|
822
|
|
$
|
835
|
|
$
|
812
|
|
AISC ($/oz) (1)
|
$
|
1,277
|
|
$
|
1,117
|
|
$
|
1,104
|
|
$
|
986
|
|
$
|
930
|
|
|
|
|
|
|
|
||||||||||
Financial data ($000s)
|
|
|
|
|
|
||||||||||
Revenue
|
$
|
92,081
|
|
$
|
90,198
|
|
$
|
74,820
|
|
$
|
78,039
|
|
$
|
72,263
|
|
Income from mine operations
|
$
|
32,457
|
|
$
|
30,263
|
|
$
|
22,064
|
|
$
|
13,939
|
|
$
|
12,981
|
|
Capital expenditures (2)
|
$
|
13,900
|
|
$
|
17,768
|
|
$
|
10,496
|
|
$
|
6,924
|
|
$
|
3,167
|
|
Capitalized stripping
|
$
|
10,927
|
|
$
|
2,116
|
|
$
|
2,031
|
|
$
|
871
|
|
$
|
2,293
|
|
Exploration expenditures (3)
|
$
|
1,102
|
|
$
|
1,190
|
|
$
|
1,990
|
|
$
|
2,452
|
|
$
|
3,653
|
|
(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)
|
Excludes capitalized exploration expenditures.
|
(3)
|
Includes capitalized and expensed exploration expenditures.
|
|
|
|
SSR Mining Inc.
|
|
PAGE 3
|
|
|
|
SSR Mining Inc.
|
|
PAGE 4
|
|
|
|
SSR Mining Inc.
|
|
PAGE 5
|
|
Three months ended
|
||||||||||||||
Operating data
|
March 31
2020 |
|
December 31
2019 |
|
September 30
2019 |
|
June 30
2019 |
|
March 31
2019 |
|
|||||
Total ore milled (t)
|
89,282
|
|
87,394
|
|
77,465
|
|
88,424
|
|
90,756
|
|
|||||
Ore milled per day (t/day)
|
981
|
|
950
|
|
842
|
|
971
|
|
1,008
|
|
|||||
Gold mill feed grade (g/t)
|
10.34
|
|
7.89
|
|
12.39
|
|
9.83
|
|
8.59
|
|
|||||
Gold recovery (%)
|
98.1
|
|
97.9
|
|
98.8
|
|
98.4
|
|
97.2
|
|
|||||
|
|
|
|
|
|
||||||||||
Mining costs ($/t mined)
|
$
|
68
|
|
$
|
59
|
|
$
|
61
|
|
$
|
53
|
|
$
|
52
|
|
Processing costs ($/t processed)
|
$
|
31
|
|
$
|
29
|
|
$
|
28
|
|
$
|
35
|
|
$
|
28
|
|
General and administrative costs
($/t processed)
|
$
|
65
|
|
$
|
59
|
|
$
|
59
|
|
$
|
50
|
|
$
|
53
|
|
|
|
|
|
|
|
||||||||||
Gold produced (oz)
|
29,521
|
|
22,069
|
|
32,345
|
|
26,539
|
|
31,184
|
|
|||||
Gold sold (oz)
|
27,714
|
|
24,362
|
|
28,278
|
|
24,276
|
|
27,999
|
|
|||||
|
|
|
|
|
|
||||||||||
Realized gold price ($/oz) (1)
|
$
|
1,615
|
|
$
|
1,484
|
|
$
|
1,480
|
|
$
|
1,329
|
|
$
|
1,302
|
|
|
|
|
|
|
|
||||||||||
Cash costs ($/oz) (1)
|
$
|
544
|
|
$
|
505
|
|
$
|
373
|
|
$
|
526
|
|
$
|
467
|
|
AISC ($/oz) (1)
|
$
|
982
|
|
$
|
751
|
|
$
|
715
|
|
$
|
828
|
|
$
|
947
|
|
|
|
|
|
|
|
||||||||||
Financial data ($000s)
|
|
|
|
|
|
||||||||||
Revenue
|
$
|
44,697
|
|
$
|
36,142
|
|
$
|
41,331
|
|
$
|
32,237
|
|
$
|
36,431
|
|
Income from mine operations
|
$
|
19,731
|
|
$
|
13,735
|
|
$
|
22,134
|
|
$
|
11,762
|
|
$
|
13,672
|
|
Capital expenditures (2)
|
$
|
9,027
|
|
$
|
2,772
|
|
$
|
5,406
|
|
$
|
3,358
|
|
$
|
8,772
|
|
Capitalized development
|
$
|
3,067
|
|
$
|
3,312
|
|
$
|
3,352
|
|
$
|
3,345
|
|
$
|
3,379
|
|
Exploration expenditures (3)
|
$
|
2,437
|
|
$
|
1,210
|
|
$
|
2,131
|
|
$
|
2,257
|
|
$
|
3,172
|
|
(1)
|
We report the non-GAAP financial measures of realized gold price, cash costs and AISC per payable ounce of gold sold to manage and evaluate operating performance at the Seabee Gold Operation. See “Cautionary Note Regarding Non-GAAP Measures”.
|
(2)
|
Excludes capitalized exploration expenditures.
|
(3)
|
Includes capitalized and expensed exploration expenditures.
|
|
|
|
SSR Mining Inc.
|
|
PAGE 6
|
|
|
|
SSR Mining Inc.
|
|
PAGE 7
|
|
|
|
SSR Mining Inc.
|
|
PAGE 8
|
|
Three months ended
|
||||||||||||||
Operating data
|
March 31
2020 |
|
December 31
2019 |
|
September 30
2019 |
|
June 30
2019 |
|
March 31
2019 |
|
|||||
Total material mined (kt)
|
1,953
|
|
3,244
|
|
3,116
|
|
3,304
|
|
2,618
|
|
|||||
Waste removed (kt)
|
1,674
|
|
2,725
|
|
2,531
|
|
3,114
|
|
2,469
|
|
|||||
Strip ratio
|
6.0
|
|
5.3
|
|
4.3
|
|
16.4
|
|
16.6
|
|
|||||
Ore milled (kt)
|
340
|
|
400
|
|
336
|
|
313
|
|
345
|
|
|||||
|
|
|
|
|
|
||||||||||
Silver mill feed grade (g/t)
|
170
|
|
174
|
|
165
|
|
160
|
|
235
|
|
|||||
Lead mill feed grade (%)
|
0.81
|
|
0.99
|
|
0.81
|
|
0.71
|
|
1.07
|
|
|||||
Zinc mill feed grade (%)
|
0.44
|
|
0.63
|
|
0.60
|
|
0.46
|
|
0.46
|
|
|||||
Silver recovery (%)
|
95.3
|
|
95.1
|
|
93.5
|
|
92.4
|
|
91.7
|
|
|||||
Lead recovery (%)
|
91.4
|
|
91.9
|
|
88.1
|
|
79.4
|
|
83.6
|
|
|||||
Zinc recovery (%)
|
55.0
|
|
54.3
|
|
49.3
|
|
48.1
|
|
47.3
|
|
|||||
|
|
|
|
|
|
||||||||||
Mining costs ($/t mined)
|
$
|
3.62
|
|
$
|
2.62
|
|
$
|
2.76
|
|
$
|
2.33
|
|
$
|
2.74
|
|
Processing costs ($/t milled)
|
$
|
29.98
|
|
$
|
29.53
|
|
$
|
36.34
|
|
$
|
32.57
|
|
$
|
29.62
|
|
General and administrative costs
($/t milled)
|
$
|
8.36
|
|
$
|
9.11
|
|
$
|
9.24
|
|
$
|
8.27
|
|
$
|
8.02
|
|
|
|
|
|
|
|
||||||||||
Silver produced ('000 oz)
|
1,770
|
|
2,132
|
|
1,664
|
|
1,486
|
|
2,392
|
|
|||||
Silver sold ('000 oz)
|
1,834
|
|
2,584
|
|
1,505
|
|
2,679
|
|
927
|
|
|||||
|
|
|
|
|
|
||||||||||
Lead produced ('000 lb) (1)
|
5,536
|
|
7,985
|
|
5,304
|
|
3,879
|
|
6,789
|
|
|||||
Lead sold ('000 lb) (1)
|
6,407
|
|
9,371
|
|
4,119
|
|
7,652
|
|
2,977
|
|
|||||
|
|
|
|
|
|
||||||||||
Zinc produced ('000 lb) (2)
|
1,821
|
|
3,007
|
|
2,206
|
|
1,539
|
|
1,640
|
|
|||||
Zinc sold ('000 lb) (2)
|
2,166
|
|
3,067
|
|
2,030
|
|
5,757
|
|
3,218
|
|
|||||
|
|
|
|
|
|
||||||||||
Realized silver price ($/oz) (3)
|
$
|
17.47
|
|
$
|
17.32
|
|
$
|
17.31
|
|
$
|
14.92
|
|
$
|
15.35
|
|
Realized lead price ($/lb) (3)
|
$
|
0.85
|
|
$
|
0.92
|
|
$
|
0.94
|
|
$
|
0.85
|
|
$
|
0.95
|
|
Realized zinc price ($/lb) (3)
|
$
|
0.88
|
|
$
|
1.11
|
|
$
|
1.03
|
|
$
|
1.28
|
|
$
|
1.27
|
|
|
|
|
|
|
|
||||||||||
Cash costs ($/oz) (3,5)
|
$
|
13.49
|
|
$
|
8.90
|
|
$
|
14.22
|
|
$
|
9.80
|
|
$
|
9.94
|
|
AISC ($/oz) (3,5)
|
$
|
16.40
|
|
$
|
11.18
|
|
$
|
17.36
|
|
$
|
13.08
|
|
$
|
19.76
|
|
|
|
|
|
|
|
||||||||||
Financial Data ($000s)
|
|
|
|
|
|
||||||||||
Revenue
|
$
|
27,685
|
|
$
|
51,263
|
|
$
|
31,697
|
|
$
|
44,873
|
|
$
|
17,556
|
|
(Loss) Income from mine operations
|
$
|
(7,405
|
)
|
$
|
14,915
|
|
$
|
7,708
|
|
$
|
4,126
|
|
$
|
3,584
|
|
Capital expenditures (4)
|
$
|
2,088
|
|
$
|
2,134
|
|
$
|
1,782
|
|
$
|
1,157
|
|
$
|
1,543
|
|
Capitalized stripping
|
$
|
2,192
|
|
$
|
2,565
|
|
$
|
1,385
|
|
$
|
6,273
|
|
$
|
6,191
|
|
Exploration expenditures
|
$
|
150
|
|
$
|
492
|
|
$
|
229
|
|
$
|
65
|
|
$
|
1
|
|
(1)
|
Data for lead production and sales relate only to lead in lead concentrate.
|
(2)
|
Data for zinc production and sales relate only to zinc in zinc concentrate.
|
|
|
|
SSR Mining Inc.
|
|
PAGE 9
|
(3)
|
We report the non-GAAP financial measures of realized silver, lead and zinc prices, cash costs and AISC per payable ounce of silver sold to manage and evaluate operating performance at Puna Operations. See “Cautionary Note Regarding Non-GAAP Measures”.
|
(4)
|
Does not include capitalized exploration or development of the Chinchillas project.
|
(5)
|
Cash costs and AISC per payable silver ounce sold for the period ending March 31, 2020 include an $8.5 million write-down of inventories to net realizable value.
|
|
|
|
SSR Mining Inc.
|
|
PAGE 10
|
|
|
|
SSR Mining Inc.
|
|
PAGE 11
|
|
|
|
SSR Mining Inc.
|
|
PAGE 12
|
|
|
|
SSR Mining Inc.
|
|
PAGE 13
|
|
|
|
||||
Selected Financial Data
|
Three months ended March 31,
|
|||||
|
2020
|
|
2019
|
|
||
Revenue
|
$
|
164,463
|
|
$
|
126,250
|
|
Income from mine operations
|
$
|
44,783
|
|
$
|
30,237
|
|
Gross margin (2)
|
27
|
%
|
24
|
%
|
||
Operating income
|
$
|
34,766
|
|
$
|
19,628
|
|
Net income
|
$
|
23,976
|
|
$
|
5,732
|
|
Net income attributable to equity holders of SSR Mining
|
$
|
23,976
|
|
$
|
6,464
|
|
Basic attributable income per share
|
$
|
0.19
|
|
$
|
0.05
|
|
Adjusted attributable income before tax (1)
|
$
|
45,057
|
|
$
|
21,546
|
|
Adjusted attributable net income (1)
|
$
|
38,794
|
|
$
|
17,200
|
|
Adjusted basic attributable income per share (1)
|
$
|
0.31
|
|
$
|
0.14
|
|
Cash generated by (used in) operating activities
|
$
|
58,672
|
|
$
|
(303
|
)
|
Cash (used in) investing activities
|
$
|
(49,361
|
)
|
$
|
(33,762
|
)
|
Cash (used in) generated by financing activities
|
$
|
(113,983
|
)
|
$
|
77,441
|
|
|
|
|
||||
|
|
|
||||
Financial Position
|
March 31, 2020
|
|
December 31, 2019
|
|
||
Cash and cash equivalents
|
$
|
398,439
|
|
$
|
503,647
|
|
Marketable securities
|
50,293
|
|
66,453
|
|
||
Current assets
|
743,243
|
|
899,662
|
|
||
Current liabilities
|
96,675
|
|
234,171
|
|
||
Working capital (3)
|
646,568
|
|
665,491
|
|
||
Total assets
|
1,612,004
|
|
1,750,107
|
|
(1)
|
We report non-GAAP financial measures including 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”.
|
(2)
|
Gross margin is defined as income from mine operations divided by revenue.
|
(3)
|
Working capital is defined as current assets less current liabilities.
|
|
|
|
SSR Mining Inc.
|
|
PAGE 14
|
|
|
|
SSR Mining Inc.
|
|
PAGE 15
|
|
|
|
SSR Mining Inc.
|
|
PAGE 16
|
▪
|
Conference call and webcast: Friday, May 15, 2020, at 11:00 am ET.
|
Toll-free in U.S. and Canada:
|
+1 (800) 319-4610
|
All other callers:
|
+1 (416) 915-3239
|
Webcast:
|
http://ir.ssrmining.com/investors/events
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▪
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The conference call will be archived and available on our website. Audio replay will be available for two weeks by calling:
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Toll-free in U.S. and Canada:
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+1 (855) 669-9658, replay code 4361
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All other callers:
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+1 (412) 317-0088, replay code 4361
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SSR Mining Inc.
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