SSR Mining (SSRM)

Stacey Pavlova Manager, Investor Relations
Paul Benson President and Chief Executive Officer
Greg Martin Chief Financial Officer
Kevin O’Kane Chief Operating Officer
Carl Edmunds Vice President, Exploration
John DeCooman Senior Vice President, Business Development and Strategy
Chris Thompson PI Financial
Adam Graf B. Riley
Mike Parkin National Bank Financial
Call transcript
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Good morning, everyone and welcome to SSR Mining’s First Quarter 2019 Conference Call. This call is being recorded. At this time for opening remarks and introductions, I would like to turn the call over to Stacey Pavlova, Manager, Investor Relations.

Stacey Pavlova

Thank you, operator. Good morning, ladies and gentlemen. first an conference and update of financial Mining’s we during a SSR our provide will on performance. to quarter call XXXX which review Welcome our business

the filed discussion available information also our to that find online news website. call, webcast analysis management’s webcast and are release our this on all sustaining all-in relating dollars payable figures sold. and accompany otherwise in call access note is of per ounce unless statements and to during EDGAR the financial our have U.S. Our the been in cash there on To references and call. discussed SEDAR costs to All are are metal will Please and indicated. and an costs you

statements please in so be We read forward-looking will relevant the making disclosures documents. the today,

the Joining this President, COO; Exploration. and Senior John Paul CEO; Kevin Benson, Carl DeCooman, Martin, are Also Edmunds, President morning O’Kane, Strategy. our Vice Development President, and CFO; is and us Greg on present Business call Vice

Now turn remarks. the opening to for Paul to would like call over I

Paul Benson

morning, Stacey. am first our XXXX Thank our very financial to Good welcome you you, gentlemen. to and pleased call and operating quarter discuss ladies results. to I

a of solid mill year, delivered XX% a performance. strong with to all for the At gold XXXX. the X,XXX an mine half of some tonnes of quarter for ounces full despite over record the ounces well XX,XXX goal off production At equivalent X.X year. we It’s X are challenging remainder from We ounces, in ore of last quarter per in ounces gold, our XX,XXX had declaring quarter-on-quarter. new Puna, the for operations from line produced expected we in the production of further start of after that quarter-on-quarter December Seabee, throughput, of another day worth with as over conditions, Chinchillas record we for very increase of up year, as over increase weather increases produced the Marigold, doubled second benefited silver noting we year. we on a to setting over throughput gold mine of and quarterly processing XXX,XXX the mill X delivered we achieving company, million At the production commercial

Chinchillas on As now budget, quarter of focused ramp production. in achieving state up first the steady substantially was we mine are the on completed

programs look delivered an So the overall, Carl providing I will results am Puna perspective, Marigold, underway and are at we From XXXX and exploration with pleased by operation. progresses. speak results as solid the Seabee our year as shortly, each to to forward

and attributable are notes, performance notes We operations also generated convertible positive adjusted the convertible three with we of offering completed quarter. ended our provide million the Greg later $XXX $XX from the with additional color portion existing income and pleased will quarter during financial on this XXXX our to net of income. our million all a March, refinance in In We call.

discuss that, who I performance in to turn call so detail. financial With Kevin, will to an balance $XXX increased cash all improving our Our more the result. will million, over in all operational

Kevin O’Kane

Thank you, Paul.

solid heard, QX you in had performance we As XXXX. a

excellent, performance safety our with one injury period. was the during only Importantly, recordable

$XXX the weather more Marigold, conditions produced at at ounce. lower movement during from of We also a At cash gold of cash quarter. were and per impacts not we There $XXX ounces ounce. gold XXXX achieved affect XX% production our will year wet This costs consolidated full ounces, on some results. near-record mine of gold per increase QX production XX,XXX of over than XXX,XXX equivalent equivalent costs

in X.XX of XX.X in quarter The per a fourth commenced quarter shorter which was the the of that XXXX. next haul grade increase million moved phase resulted distances of weather quarter. X% the mining the events During from in grams We earlier Mackay to material, QX, mine tonne. we tonnes compared offset pit, the

We to expect this increase through year. the

Looking improving material grades, delivering pad ahead, rates and leach remain again guidance gold capacity. movement we due confident to on

Seabee, quarter needs XXX across transported truck mobilization equipment as the averages was historically annual during and has of This This of the now on required the our compared commenced. increasing exceptional, to project site’s in loads year facility ice XXX road due operation the for loads. the a performance record year, Moving achieving the to for consumables of typical that results and operational the of ice to to as annual was due tailings the expansion quarter road strong well March. busy we February a

the X mine. the Seabee X,XXX will the tonnes gold new underground per Santoy haul pours day, produced our X,XXX For Cash and reaching tonnes compared increased were timing due of and operational and the goal for to XX,XXX per delivered road facilitate that of the of These QX throughput ounces ounce $XXX QX. our throughput. impact improvement X purchased primarily along mill in rates new It’s additions, were continued note excellence with to scoops XXXX. per of over mining per to at at to quarter, important $XXX of ice day XXXX. trucks end projects, higher ounce Mill the a improvement costs record reflecting

in concentrate the grade during recoveries The day, the production relative recovery Total mainly that tonne, sources grams to of of from tonnes quarter, XXXX, giving a in the to increase increase pit quarter open with the silver fully quarter, previous lead and expected Chinchillas a be was Chinchillas substantially contractors grade will during credits. And second compared to the silver, expansion QX significant the approved quarter our at XXX at compared until at the strip zinc costs exclusive ore ounce average as the pump per Puna mined ratio XXXX, higher Xx an the activities on were an XXXX mill half end The material quarter. increased The through Ore feed year. Chinchillas and per of At XX.X%, of grade milled acquisition up end the to results Silver period of through mine. ounces April. X.X during fed operations XXXX. group plant Cash quarter completed due Pirquitas plant. quarter. of next the was fourth XXXX. XX% expected quarter investing we and ounces of of the budget. to shipments in pushback was the the project was capacity in ore quarter to we for This the mobilized previous from Subsequent system the As the field contemplated the PEA. of ramp-up of previously fed silver first quarter X.X was part tailings ore. increase XXXX per strip March. ore Chinchillas end, stockpiled in significantly ramped the new excess are the plant average are average was million all the from while recovery higher ratio commencing higher. tonnage. the contained decrease and reported, silver for the X,XXX of compared since reflects to The higher-grade site, the X% strong transferred quarter silver exploration processing Metallurgical of a during to steady reflecting the $X.XX the variable mine almost to for contracts of an annual to previously compared into Processed fourth XXXX have to stripping byproduct the tailings at concentrate during entered Silver sales silver million per state. we our ounce as totaled for expected to achieve completed the the of ore of was the $XX.XX higher of Operations,

and during all operations summary, delivered production performance quarter. solid our in So cost of the

operations Carl, you on looking focus safe to Puna while over will stabilization and our who take Marigold will at the through I our exploration continue production now of opportunities hand growth organic and Seabee. at We activities. at

Carl Edmunds

Kevin. you, Thank

at we holes the as conversion south totaling and and approximately for hanging Red the Marigold, Fisher XA, meters At drilling the of new GAP are and resource wall; resource hanging of at resources, on drilling growth north GAP Mackay completed resource To we Greenfields Valmy. at meters and Dot Santoy Dot north well XXXX, in also XX and areas Red at focus For completed at QA/QC with pit. mine. of Red and Dot conversion at Mackay wall. are Seabee our at purposes. resource, objectives of select for geotechnical with and Dot Marigold core the objectives south activities south The XX,XXX XX evaluate gap within the as similar, on areas of exploration X,XXX conversion holes and and Red continue

with grade During quarter, RC intercepts. from the received resource XX were holes, reporting results XX

result resource visible at notable Batman and ton approximately XX per while nearly this Santoy, court total to gold holes X,XXX work target structure. mineralization holes Seabee of at XA, meters as meters grams where called on Footprint holes XX,XXX we from X.XX the and meters target. current meters resource and and Gap. XX.XX meters XX extension completed X.X and of hanging grams At on drilling south further gold. of drilling targets. gold. by include quarter’s from end, X.X the gold, X.X meters North Gap meters outside amounted to Mackay. at the Several X.X an XXX gold for meters returned Some Operation, Mac, holes activity XX,XXX Greenfields at drilling intercepts conversion particularly of the holes included wall include staining, work Notable targeting at encouraging alteration ton of over wall At of up-plunge Red for gold We just near-surface Fisher, per extension intersected X per and DD the approximately view X,XXX XX.X results from hanging meters, X up grams of per the per tonne this ton grams Dot have Gap XXX XX area a X.X Gold and Santoy a this located Seabee plan results meters meters of Lake underground of X grams with surface totaled meters tonne at anomalous

X.X target, the several gold intercepted per encountered work X.X We meters of of still at in view is Although follow-up of pending, work we and encouraging the plan analytical grams this gold. north the we occurrences majority the as intercept ton Mac where summer. visible

will received so Operations which Puna we of drill vein and permits the breccia, intersection X,XXX-meter core drilling anticipate vein a we at for program test the Cortaderas at-depth Finally, Potosi the efforts We of discussion a And our year. initiating that exploration work the look in you results. updating Greg now, financial second forward on for to to the throughout quarter. our over

Greg Martin

production strong expected. financial across the I highlighted portfolio on Carl. expectations Thanks, our drove of a out quarterly The financial lagging quarter. results our the as quarter build we played working and feel last concentrate Overall, saw positive as sales We production improve capital performance.

While temporary quarter, free flow forward. for are the we reduced set items up cash well these going

repurchase $XXX Puna on Marigold of see XX% increase over a pre-tax to financing For quarter sheet return on also million position track, face value a notes and of the difference complement of market to offering and expenses to increase note G&A generated the our notes XX% strong new a fourth results increased over the are quarter, mine discounted Income XXX and operating over a loss to $X.X million, exploration earnings the balance mine XXXX a from million, were were their income. XX% between We of repurchase. the an a we since the to non-cash quarter. approximately generated convertible repurchased the value, at non-cash positive life shortly. of and from notes. $XXX was great which the operations sorry, our loss convertible as fourth revenues speak value, and accreted It million further Operations $XX.X period. on on was at notes these increase recorded We the but XXXX I’ll representing amounts comparative Seabee. – on the of over recorded

saw result $X.X increase flow quarter. significant from improved income margin. of reflects from income which reflected $XX.X the $X performance or better similarly the an we fourth share, operations. per the quarter, For million $X.XX Xx net net We our cash fourth the net income quarter, and so million strong improvement in million generated a almost a totaled Adjusted operating

generated restocking were $XX year-end, to at occurred, as million sales of items. discussed first payments, We the capital strong consumes before semiannual capital In production. last and continued and on of was which capital primarily full Puna working related ramp-up first normal meant year’s due cash. I our delivery fourth the tax cash and concentrate below well deliver ice the This road to convertible As payments but in our interest quarter year Seabee one of noted lags so the notes compounded quarter sales consumables quarter also to on flow of of we both taxes divestments, due had working payments call. moratorium quarter, interests, our operations operating Pretium

pleased, impacts, capitalized operating was cash the operating breakeven. So, that considering $XX for development spending seasonal And assets I quarter and and were with totaling am essentially in consistent guidance, investments with our other these million. capital flow

Seabee Exploration were concentration for capital capital the hard. the $X came in year expenditures totaled and quarter, both ice of exploration over as As Seabee equipment projects investments all noted, we as at materials pushing have million, the and in road. a Marigold for

as completed the infrastructure advanced. of in We components or Chinchillas also $X were invested project million

activities, within at capital budget the us us financing be during XXXX. XXXX for project significant $XX early to we the to notes, a quarter of in are million quarter. used quarter. are our expenditures of which spent second puttable convertible cash the Before back event Chinchillas expected was in during Clearly, Remaining refinancing the par the

with notes years. out we and of of our strong. have the interest us million the refinancing rate we the With our us outstanding through X position cash capital position the consider Simultaneously a subdued, of will growth advisable issuance of and set is lower XXXX reduced internal our external of our redeemed and a quarter debt market asset, the opportunities. our another remainder notes recognizing are capital totaled finished sheet remaining to X.X%, We certainty of cash structure gold for $XXX repurchased peers well $XXX our first as $XXX it new notes. financing reset to our and with performing leverage of our markets strategic term $XXX with strength. felt we be million and the This overall gives from in million, quarter balance Once remain XXXX will continuing working million apart cash terms modestly which

those call metrics positive solid performance, completed. to a operating to with year the Paul. With comments, our positively refinancing the now start and trending So, back I’ll financial turn

Paul Benson

each delivered is Thanks, its solid pleased In annual as to be performance operating Greg. to off track guidance. we a on year, strong summary, to we meet start and are the operation to operating

also balance to We financial sheet maintain repositioned flexibility. our

we external continue safe the deliver may to the while any line you pass I’ll Looking our exercise to to to will call. operator ahead This now cash of to shareholders. free our formal XXXX, questions for opportunities value discipline flow production through pursuing the take concludes remarks and for have. internal earnings create


Financial. Instructions] Thank ahead. Our Thompson first question from go Please [Operator you, comes PI with Benson. Chris Mr.

Paul Benson

on be You might Chris. mute,

Chris Thompson


Sorry about that, guys.

phoning Sorry. was cell my I in phone. from

you quarter, some come of the Marigold, down couple Just obviously, a little? higher on costs the really slightly do on on a some at quick questions these expect on looking the mining and to details

Paul Benson


Kevin O’Kane

as and that Kevin. mine the the This more reduction through Yes. see months. throughput thanks XX the from investment additional is results in of the to higher Chris. for from natural over we will some equipment XX we the the We year, question, the material we’ve then into movement, put cost unit a last rates; the No,

Chris Thompson

can happen, that Are we sense the QX? in a Alright, later going bit of looking back more little into that’s year? just any quickly yes. to And That’s on how great. dial we

Kevin O’Kane

process come of an doesn’t flow. in It’s and a gradual sort even it

jumps or change rates As out, the components in reduce. get changed specific

Paul Benson

then that. then don’t dependent We waste I and [indiscernible] is quarter-on-quarter on ratio give guidance and equipment haul strip you that. like maintenance distance, when also And things – quarterly some it’s on that think which

Chris Thompson

no, Okay, to just the go? slightly Seabee, similar moving sense fair for. see guys. were processing over on just we Thanks then guess, costs. the I And yes, to you need finally enough. tons, where to than Any what higher just comment, looking of again, Nice

Kevin O’Kane

any provided anything see we guidance previously. We would don’t different on have than

Chris Thompson

Thanks Okay, lot. guys. a perfect. Alright


next [Operator Graf Adam question comes Please B. Riley. Instructions] Our go with from ahead.

Adam Graf

for Thanks taking guys. congratulations, Hey, call. my

full-year here above levels the level can grade a guidance, meet year color to What on us on strongly quick to of through zinc to how you rest up it year and full grades grades significantly and remainder have ramp grades a evolve looks Just to here – guidance, quite to expect the the – there through on the recoveries and some recoveries, to your make both your the reserves. Chinchillas year? give question like you of the and recoveries

Paul Benson

Zinc is the minor product tier.

are mine plan not by We definitely that. driving the

significantly the grade with which the in plan higher but predominantly optimizing is seen lead. – Zinc You’ve mine revenue is down, quarter the the was in streams, then silver. silver the first main always

if we’ll – lead lead is and over sleep any down, optimize and and the zinc silver. So, we’re it, the losing on zinc plan not

Adam Graf

– And okay.

of So, to you’re going if if full-year here going still the on guidance how there no guidance? to kind you’re numbers are the holding – shake out

Paul Benson

At the at total the the by. silver that equivalent operation I day moment, Yes. the the standard end yes. of that’s at driving metal We the look think we’re

Adam Graf

And are the concentrate, you a are zinc zinc a separate spot zinc TC And concentrate? assume, if are exposed bulk making benchmark dramatically environment, concentrate, the versus making a to gone higher? separate has which I and those guys you

Paul Benson

it But QX. we contracts start start you lead is which concentrate to the sales takes then and the be silver products and Obviously, sell what production, – of con. actually both get you’re we and the a is. zinc market for have year separate produce to a you before operation is what up, ramps again where equaling market and most we then lot in the goes the for that produce that’s and concentrate and then you we’d con as producing those as go, that’s you today, set get previously We you Yes. there, explained where want payables,

Adam Graf

just just offtake spot? So, set contracts at that they’re to contracts you’ve up, are or your at follow benchmarks the

John DeCooman

have The always have it’s manage and price time are very good been they’ll takers, with respect that negotiate – to direct the we’re levels and just but we of referenced. over a to RC say, Paul I – we’re have whereby good contracts we’ve TC but go Johnny. relative those to we up as so with to down I think both Adam, smelters, on market, both able concentrates wouldn’t quality,

Adam Graf

back into get I’ll thanks. answers, Excellent, Thanks guys. the queue. for

Paul Benson



question Please Bank Parkin is Mike Financial. go next with from ahead. National Our

Mike Parkin

be a the at Is it on I of as or you’re to fair million the looking and guys, $XX think payment over paid? million kind noticed question the we so Is non-current. quarterly equal this? a the on this an just payments. moratorium great. of Hey current little after and in for spread $XX of it notes assume kind color Any $X about year, would for million equally financials of bit there years of kind should over a number a a how being

Greg Martin

thanks, payable in basis into a is Yes, liability. appreciate on over it was and we terms, equal from period moratorium entered it X-year peso the an moratorium and peso the –it’s is a That when Mike, a question. so

XX devalued we’ve trend, as XX today. I we So, it into from think when has the down significantly entered it peso to seen

of U.S. significant seen in terms, erosion certainly, that So, liability. dollar a we’ve

of then effectively it that X-year equal over and in the – will you over that be of time and dollar So, view by now terms what end it can your devalue period peso payments put that period between period. in the by

Mike Parkin

get pretty is good amount peso I total That’s what Should actually the owing? Okay. color. –

Paul Benson

all that the we release, back XXXX the put go got in details it’s you If when out press it in to data.

Greg Martin

with on effectively – the can, exchange amounts that them We rates. sheet take prevailing you the can the again Yes. convert you balance and are –

Mike Parkin

Thanks that’s guys. no, Okay, good.


turn call This concludes Benson. back I the will session. question-and-answer to Mr. the

Paul Benson

very operator. day. for everyone a to Thanks call. quarter. Have much, Thanks, you Speak joining the great next


call. This today’s conference concludes

disconnect participating have pleasant may You Thank day. you for your a and lines.