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SSR Mining (SSRM)

Participants
Wes Sconce SSR Mining Inc.
Rodney Antal President and Chief Executive Officer
Alison White Executive Vice President and Chief Financial Officer
Stewart Beckman Executive Vice President and Chief Operating Officer
Tyler Langton JPMorgan Chase & Co.
Cosmos Chiu CIBC Capital Markets
Michael Parkin National Bank Financial, Inc.
Call transcript
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Operator

Good day, everyone, and welcome to SSR Mining's First Quarter 2021 Conference Call. This call is being recorded. At this time for opening remarks and introductions, I would like to turn the call over to Wes Sconce with SSR Mining.

Wes Sconce

Thank you, operator. Good day, 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

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

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

Joining and President COO. Rod us CEO; Stewart today Alison the on Beckman, are and CFO; Antal, call White,

call opening to for over Now Rod turn I'd the like to Rod? remarks.

Rodney Antal

morning good afternoon, Thanks, you to and Wes, and good all.

I begin, welcome call new to would to we Before our earnings SSR Mining. her with Alison CFO first White, like

a have number delighted meet in foundation In she a have will for hear person. Alison and you for to future. from with allows joining SSR Alison's to as will quarter. strong walks as set we the are We the time travel today, you as the of very caliber of you continue a to person But results Alison the opportunity first through

guidance the gold we generated start delivered $X,XXX four as moving the of as million flow, display sites free certainly of on our The track and us costs XXX,XXX were in sustaining on to now quality puts operational and full-year unlevered achieve $XX consistency So to this all-in ounce. targets. to cash operating equivalent of per our We great the year on review. at quarterly quarter ounces an production clearly

last step allowed sheet $XX dividend paid to approach of to We cash capital the million to and our allocation. strong base management be us free year take generation flow a balance and overall per peer-leading have Our implemented already quarterly. to

Now the buyback a meaningful and of cash and up we in share our base combination to dividend, our buyback aligns of million. dividend flow base $XXX our The peer-leading capital share the addition yield. program with program yield returns free announced to

and Our execute short at total to agreement prices. entered this buyback a have be million implemented peer-leading to to the time, year, we It important capital capital to In especially share holistic Canadian return have automatic is of since the shareholders will share with on share have our an which programs that allows merger, full and us a to program current a is $XXX that position. purchase intention period highlight broker in allocation highlight growth to a up we large of advancing which closing our production into is in great invest to ounces to gold adding sustain XXX,XXX our organic capital least of returns purpose exploration and provides at a The exploration shareholders we progress invest ability next our gold while From maintain of our capital to portfolio. program years. through is value on the to XX projects, XXX,XXX for going continue forward. our the management to growth price continue perspective, cycles, clarity

amount establishing XXXX. practices. highlighted and leading a out work This priorities importantly, sustainability to to which plan communities greenhouse finalizing and priorities as to report to achievements industry our sustainability to companies most XXXX. an by as of and and the during set that of align it on done moving also released legacy was commitment XXXX, work is reconfirmed our ESG. suite So gas achieve of both next We've resetting the on foundation This for report action slide, to the form the tremendous sustainability several for XXXX on commitment environment, The setting new a during policies included quarter. emissions net-zero a our well

disclosures to aligning begun at our water the are on We perspective, good management climate to Project on pervasive, it the the remains sites. and all responding of Climate-related Disclosures. Disclosure by From improve Carbon and reporting our of a COVID requirements job Financial although doing a have managing safety also Taskforce with we

work protecting and to our successful focus mitigating our the have protocols been which in COVID people, first contractors operations. in on the our Our and impacts community efforts we

achievements we are have approach. We for and experienced to and as of the progressive teams our envisioned SSR within our be proud continue a well-resourced future operations HSE and in

on the slide. next Moving to

year-to-date cost you meet can and slide. see guidance our is production that well this on to XXXX performance here Our tracking

Our results. direction. focus our is and year to for as right ensure safety in we approach improve quarter safety have and The production, initiatives underway to to step we results were several the a a safe overall push one

across in – business. opportunities investing are high the growth returns several growth We

of include half. examples the flotation construction initiatives Some the commissioning the on and is Çöpler, which in for ramp-up, growth circuit second track

and on mentioned an haulage development fleet initiatives to just allow is plan. to us rates Puna, Marigold. I the progressing we the And to utilize now increasing future. And underway. finally, All owner-operated ongoing at at the capacity that transition Seabee, have the latent initiatives underground We continuous an in the at improvement are to are mill focused

step-out which continues and intensity On take touch across come on some is XXXX. will asset infill the their reserves exploration capital into production provide the by year. we Ardich, we exploration are number the and to a call. in and expect as our these low investing scale Stu advance sizeable, portfolio to good that of is center these the timelines for stage clarity and conversion this drilling example targets to planned will on later side, the expansion efforts million support during and A $XX resource at

quarterly Alison on and over I highlights. to Stu, moving Just call base touch to the and to few before next the I of the slide, want hand a

sites setting operationally, quarter, the nicely a had of first good four up As I all the for us remainder year. said,

a Our Çöpler, results. million solid reported provide we $XX contributed perspective, a material gold we cash and EPS and costs Seabee From strong financial strong Marigold, record all movement set of and At flow the to an free in Puna sheet. share balance $X.XX generated to production at and a per start. adding our

Gold M&I published ounces. XX updated reserves million while to mineral the resources we Finally, X XX% resources quarter. during the million and X% ounces, reserves increased to increased mineral mineral

with turn So X. Alison call who to financial detail on discuss starting our over Slide I'll will more performance in the that,

Alison White

the I'm the excited on a to net million results before was the strong $XXX.X $XX quarter. Mining million was very Attributable our quarter million with as cash XXX,XXX selling talk assets as income share equivalent shown Rod, consistency, to net and ounces equivalent everyone. for ounces interest to earnings completed and good dividends quarter gold $XX.X adjusted million producing debt. paying delivering at of all Thanks attributable the on during quarterly XXX,XXX afternoon, about was or SSR cash thrilled quarter reduce for total and flow $XXX.X here per million share, million per X. and strong as gold free quality for in We've be non-controlling the Slide with at and and adjusted revenue of a attributable income $XXX.X were $XX.X flows Operating million $X.XX $X.XX. the and shareholder for out well quarter in $XX

deferred add for the adjusted income right result of $X.XX less time slide, COVID bump side back details the of $X.XX share per acquisition, and attributable are the at share. $X.XX to to for Turkey. fair the of integration costs, to share a assets the the tax on adjustment in currency the held on inventory up revaluation value of at followed from there Çöpler and Walking $X.XX the share more taxes of the and by net value per per a and On per as mineral foreign $X.XX properties result and for earnings of the fair adding amortization $X.XX as the

we and X, liquidity cash. maintain over quarter million balance talk amongst in Slide can the balance strong provide strength SSR closing strength. $XXX about its $XXX to and cash SSR’s sheet in peers continues Turning consolidated to million sheet with net

in cash ice payment payments to loads road in us to an recently shareholders still dividend we Net our of a framework cash $XX cash capital more again, on a non-controlling QX, can outstanding capital the group. shares where EBITDA interest SSR quartile million million continues position. formed, at peer-leading share placing to strategy, our allocation Seabee, through with demonstrating ratio program in is X.Xx months. on set partner of at we again coupled Given up SSR’s to Çöpler, and QX, are was On strength restocked bid they the and our declaring $XX share $X.XX top million especially announced while working X, dividend our buyback to an capital non-course within flow purchase XX repurchase issuer its Slide about free automated multi-faceted returns. and XX during talk peer per a act heavier

yields confident capital for flow Group of shareholders. SSR allocation attractive program and is Peer Peer X.X% Group than We free return X% capital the at more for the than yield yield provides Midcap more peer-leading that our are alone. is SSR’s year this cash our Mining’s that XX% double double of Midcap at

demonstrates share program yielding through sheet free priorities a Mining, year, per peer X% generation and to returns growth, returns. accomplishing returning which the base the recently combination supplemented is slide. buyback balance differentiates quarter, allocation maintaining and of The a group strength. capital investing cash by include discussed to flow on leading cash announced previous Our and per shareholder in this dividend $X.XX significant is shareholders SSR commitments our SSR and

you our XX. move will on Stu through priorities we We on through execute starting XXXX. as and the continue Page financially operational will both operationally walk to highlights

Stewart Beckman

you, Rod. Thank you, Thank Alison.

had compared XXXX, recordable with the off in reduction of ESG, First sites improvement. injury and seeing we health rate all a safety with an impressive for XX% quarter to

ESG to the our analytics. to The this and integrated restructuring we these completed It greenhouse of to commitments, will read. tools with we I rollout the delivery, which new for gas management time match new better our improve and sustainability To team. water. progress had provide EHS&S plan, hope extended and oversight on includes commitments leaders also some system report, ESG result data and emissions deliver started management We business risk you've of

is of had we now world, challenged for managing other the part remains factors. it our COVID with and diligently business and ecology it risks the along While

to solid overall achieving The with start operations off costs. really is business to operations all and Moving a growth. above production budgeted budgeted on and billowed

So to to deliver XXXX. we in guidance great are a position

was both up. and capital are savings cost simply off expected of spend, which to catch Some timing exploration

this costs been in life form long cycle, Across the improving guidance XXXX. quarter. time consideration, the budgeted overall However, we've the long-term of still taking which on timing with our processes. were mine first the business, planning the guidance, of for and better will we than basis we annual starting into for will Yet the slightly reviewing include

included Moving Ardich, about at well oxide drill of continued plant back on Ardich. economic offset construction is the the ramp-up rates, on seven continuity good drilling Çöpler. was holes well-advanced sulfide production PEA Ardich resource study XXXX exploit XXXX, meters current about and Çöpler, going above late gap there the showed potential about on plant rates be to million the [indiscernible] converted [indiscernible], we and XXXX, CDMP process immediately showing plant as Ardich we not really drilling. adjacent quarter, leach the The pressure lower subsequent to CX Drilling to work and feature value million Saddle That and of which copper-driven recoveries. slowed in transform these. the than timing options Çöpler with plant. CX, to of a simply add The in analyzing oxidation Ardich by well be X is year. Coast updated function XX, Section That the a The the this. CDMP The does of $XXX Çöpler designed and in the CDMP with is, in to report, relative with will planned and is in mine will deeper of technical to currently to budget, QX of will the technical QX. throughput to is a in NPV value and said, remains models. is heap Çöpler and aim the work improved be last ounces base The to recoverable and plant drills as the late continued only and case of to beginning have We the and XX,XXX gold complete the study the considerable mineral budget report, cycle. reserve already mineralization, were is schedule significant quarter. gaps additional which plant the reserve. a In Central we The in evaluation In Çöpler commissioning leverage which and in from will next move team the above for ounces includes and production. district, the flotation diamond into flotation it

stress, aiming mineralization we the technical as are CDMP our course, outcome case include a PEA of work, and of the Additionally, and copper on depending a XXXX to resource as in report. the

drilling shovel. XX The during rapid achieved commenced construction a times the given production. record for and is equipping In doubly best shutdown of quarterly Now the This electrical the is This new the site mine let’s basin. move started quarter impressive infiltration days its the shovels we to will stepped of big shutdown. for be Marigold. water put two gap Marigold bores the completed XXXX dewatering PCXXXX the scheduled water second P&H filled and mine, the where tile. the up back and hydraulic and into the gold

the around in during is about that. cell move were like the quarter, of is months. are pit completed now a some what above arrived drilled out annual is There near-term. Seabee, in mining complete the and for XX. with was the the Hanging existing Wall mostly equipment We've site, XX,XXX Gap coming into and go The ice set which while we're drilling We the Hanging will we at the looking Wall and line lift these resource budget. some The year. road development meters intentionally budget. and the in new pull which looking on good we Please to and and production busy reserve Marigold underground result. construction done also Seabee’s is Seabee. we slightly additional stacking focused at pits been into exploration Exploration very service restocking on in with also cell to ore the Mine Santoy

at change lower and We exploration a at ton at growth were to more sites below out to for X,XXX throughput budget. and we bullish Please Puna’s Amisk. are production was the longer We production unit cost master remained should new [indiscernible]. move to potential haulage on Fisher, for both mine and North, costs. started on A over target also was record. drilling April and Puna. work are ore well budget over significantly the pretty than Seabee Joker That to sustained Amisk. setting at greater is a Mac further in They the operating iron day, way the plant and greater

planning life for of processing rate Puna. are the We mine reviewing a at higher

Now items all let’s I've move pretty the about to much key exploration talked these already. of slide.

operations And Thank our you Rod. and very business, the to so above the and much. excellent, business good growth and was was quarter in summary, for Back budget for above production you, cost organic safety projects advances. A was growth the budget, teams.

Rodney Antal

you, thank Alison. and Stu, Thanks,

as mentioned, quarter strong completed start a Within and strong all cash to peer-leading, allowing summarize, shareholders returns to flow, to continuing our both we’ve operationally. year capital the financially to our just free and is allocation capital very while So us grow. framework

share regain With we place, our delivering, operations the for terrific in shape, choice offer an we believe balance sheet investment and returns price will capital growth, now long-term the capital excellent intensity and in shareholders. low momentum

that, call So may to the questions I'll operator have. with over you any pass

Operator

you. Thank

with ahead. from will Tyler JPMorgan. the session. Please question-and-answer [Operator comes first We begin The question go Instructions] now Langton

Tyler Langton

any then you guess sort materials, I pressures energy, around I details Turkey Argentina? guess sort Good with start, related Canada, any – just questions. impact I of for inflationary exchange rates. in And of for to guess Thanks afternoon. labor? on Yes. somewhat seeing maybe like taking are my or costs

Rodney Antal

I’m Tyler. one over to Alison. Hi, to pass going that

Alison White

Hey, Tyler.

So the your I'll about portion question pressures. first take inflation of

the So pressures have business. at across not really this point, seen inflation any material we

that try that monitor to just coming that way, weigh anything are markets but and have We the through. we seen to our not be stay continuing come could close yet to to

Rodney Antal

your a Tyler, again, for exchange short-lived and We increasing country the with normally us. by countries part second And then question, the around the in we inflation currencies the offset win where rates get of the devaluation on operate, in the devaluation. usually some of rates it's

live it while a and win It catches looks short of So usually sort it's being net-net to on good neutral. paper. up

Tyler Langton

the be start year, year of I of That's annualized to as of Çöpler, the as sort mean, guidance. about the throughout how sorry, was around helpful. Can with should guess, and guidance. production costs obviously get came of Okay. in costs kind to just and the of But remainder a ramping of And kind the cadence good sort – the think then just production I the talk of the annual production just QX then to low-end especially would sort cost the starts for just guess, just year, of of flotation and midpoint you up? about well I

Stewart Beckman

Stewart. Tyler. Hi, Yes. It’s

was significantly when So Çöpler the volumes the we of main up said through we to backend at be the are pushes you in flotation drivers the that the Çöpler remember the issued draws report, which technical the what year, cost at construction beginning report the plant, gave – we of sulfide technical down. loaded. When plant expected and guidance, we

loaded the expectation that our would drop and be cost So the the half. been in backend would year is always second

Tyler Langton

Thanks much. Great. so Got it.

Rodney Antal

Tyler. Thanks,

Operator

Please comes go ahead. The with next CIBC. from question Cosmos Chiu

Cosmos Chiu

your to Marigold. Maybe welcome, with my Alison. the beat. a off question with SSR Thanks is Rod, Certainly and Stewart, huge Great. Mining first earnings way and on journey great a kick-off

I now, stocking these days cycle that a actually of Can Marigold? leach fairly these you And at you X.X mentioned about per result some to the the What's question here? part QX my gram the ask ton. you I of in the QX, come point good and MD&A high are in I was so fairly of guess heaps think stacked that height X.X in lifts the production grade of tons going QX. is the is million through? of When getting

Rodney Antal

It Yes. interesting question, is always Cosmos. an

For cell rest which be soon. start on started the in stacking mentioned, of we'll has them and I year, we'll XX, which irrigating stacking this

short we'll see or inventory So to the… the and year, plastic got see of draw quick of down cycle. stacking the leap the And from rest the for the close in pretty a to pretty a we so we'll remainder a our actually see return

Cosmos Chiu

Great. And maybe to moving then Seabee here.

mentioned, As ton QX productivity head in lower as higher the potentially remind some expected you getting year, grades? us, through you to X.XX per were areas working as grade you Stu, areas. gram but than the some you productivity of when are last higher could of back lower

Stewart Beckman

Yes.

seeing this was we through what the that's of But will at was the the back you there high come are that the say grades lower So year little some following coming mine basis guidance the expectation doing, up the an years the with on previous and a mine bit than in – years. moment. remember, schedule

said – of my over at three issued the will we being out years the guidance the long-term end the that you year. long-term that I issuing the in to call guidance least as We map at help will when

Cosmos Chiu

earlier, is fairly to to some I And this at going bringing if if get high were say, you half, production QX guess, all backend seeing as going as XXX,XXX I'm Great. to you is I what is I gos, loaded. that, good might grades. you're look It to sounds production, of Seabee, trying Çöpler be the I like can't. the analyze be second guess, well. I in Marigold together, to mentioned

it? end early of still we days, You I at it know top full-year that would How should Is – the guidance. it's is but possible? hit look

Alison White

This question. for Cosmos. is the Hi, Alison. Thanks

Cosmos Chiu

Hi, Alison.

Alison White

thank appreciate Hi, you for and welcome I that. earlier. the

aware remains So But what if we affirming bring continue are of year I going we we’ll what information changes. that said. were it. now previously our back and think monitor intra-quarter right there's that are guidance consistent to additional we talked any we have we've when And for the we've previously with any about to

Cosmos Chiu

Sure. Thanks, one last And maybe question. Alison.

any think comments shutdown. terms I a a Just looking could given there COVID-XX ago, two at – make Turkey some and question ago, several announced Turkey, you or was in of Does that the operations? days government COVID-XX. on impact it Maybe have for days mining shutdown here, Rod,

Rodney Antal

doesn't entirely where actually. been through similar COVID cause. been on In build It shutdown. we've that Turkey, times No. all It’s hasn't what restrictions there's placed to a there's the seen country

essential industry So the is mining the sort service in of considered group.

as so to continue can safely. done long as we And operate it's

So that in as are where in fact sort really in and just response went the of homes And just celebrating moving really hours COVID that around their well, restricting the around. spike of a out and more about and the people, usually a lot stuff. through that’s to I cases short-term. religious mobile public particularly to quite recently just that big more and it's start they're their holidays restrictions

So they're trying to avoid another big spike.

Cosmos Chiu

Of Rod are Those and course. I Thanks, again. the congrats and have. team again, Got it. questions

Rodney Antal

Cosmos. Thanks,

Operator

[Operator Please ahead. Instructions] with The National go from Parkin next question Mike comes Bank.

Michael Parkin

taking my of my for and congrats Most been guys. on solid answered. have questions the quarter. Thanks Hi questions

number holes kind on are well-established expect one you Is in side oxides, coming exploration of still versus And program are mobilizing kind the up? of in a and we first Should in program? that we Or terms update that expect half greater of drilling just when the Marigold? kind and things, next second of ramping of you half on coming of Canyon the stuff? drills the updates? of of out how Trenton terms could Just the exploration

Stewart Beckman

up are ramping we So in area. that

step. resource into Canyon before Canyon, fully But that study and out drilling Trenton to Trenton we provide there the updates it we businesses. a next across are the before bring all of proceed we all and and couple sure will from at up we work make the next drilling. out step Canyon, bring back and to of Trenton will we exploration we from are took [indiscernible] advanced where Seabee of In more understand sites, doing to over advance we Çöpler quarters so We update

Michael Parkin

to with drilling do position then you in Okay. start underground? you'd Pitarrilla, be Great. the a think from And when

Stewart Beckman

and the advancement the do that we after on So opportunity study. resource the status of put more assessment of of the hold, the wholesome a knowledge current while merger, the we decline took we and underground

don't plans the in immediate So an drilling Pitarrilla we underground. have on

Michael Parkin

Okay. much. All right. so it That's for guys. Thanks me

Rodney Antal

Mike. Thanks, Great.

Operator

session. back turn This any like to Antal the I question-and-answer would conference closing over to the concludes Rod for remarks.

Rodney Antal

Great. us all come. Thanks, [indiscernible], for solid again, and thank nice joining quarter it's hopefully to more again, company that and introduce today. way and the day. have obviously many Really to you Alison and great to a Thanks of have them

Operator

today's call. conference concludes This

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