Lafleur Minerals Inc. press release

SSR Mining Reports Fourth Quarter and Full-Year 2024 Results

2025-02-18

CSE - Canadian National Stock Exchange · Gold · Silver · Copper · Zinc · Lead · Molybdenum · Nickel · Rare Earth Elements · Canada

SSR Mining Inc. (Nasdaq/TSX: SSRM, ASX: SSR) (“SSR Mining” or the “Company”) reports consolidated financial results for the fourth quarter and full-year ended December 31, 2024, as well as an update on the February 13, 2024 incident at the Çöpler mine (the “Çöpler Incident”).

Fourth Quarter and Full-Year 2024 Results: (1) (All figures are in U.S. dollars unless otherwise noted)

Operating results : Fourth quarter 2024 production was 124,154 gold equivalent ounces at a consolidated cost of sales of $1,295 per payable ounce and all-in sustaining costs (“AISC”) of $1,857 per payable ounce. For the full year 2024, the Company produced 399,267 gold equivalent ounces at a consolidated cost of sales of $1,307 per payable ounce and AISC of $1,878 per payable ounce. As operations at Çöpler remain suspended following the Çöpler Incident, SSR Mining’s full-year AISC included $60.8 million in cash care & maintenance costs at Çöpler, or $155 per ounce of gold equivalent sold. Full-year 2024 production from Marigold, Seabee and Puna totaled 371,061 gold equivalent ounces at cost of sales of $1,317 per payable ounce and AISC of $1,542 per payable ounce. SSR Mining recognized two significant production milestones in 2024, including 5 million ounces of life of mine gold production from Marigold, achieved on December 30, 2024, as well as record full-year silver production at Puna.

Financial results: In the fourth quarter of 2024, SSR Mining reported net income attributable to SSR Mining shareholders of $5.6 million, or $0.03 per diluted share, while adjusted net income attributable to SSR Mining shareholders was $21.3 million, or $0.10 per diluted share. Under U.S. GAAP, care and maintenance costs are included in adjusted net income. For the fourth quarter care and maintenance costs totaled $35.9 million, or $0.18 per diluted share. Net income (loss) attributable to SSR Mining shareholders for the full year of 2024 was $(261.3) million, or $(1.29) per diluted share, reflecting approximately $272.9 million in incurred and anticipated reclamation and remediation costs, $114.2 million in non-cash impairment charges, and $108.7 million in total care and maintenance costs incurred as a result of the Çöpler Incident. Adjusted net income attributable to SSR Mining shareholders for the full year of 2024 was $57.6 million, or $0.28 per diluted share, after adjusting for non-recurring items largely related to the Çöpler Incident. In the fourth quarter of 2024, SSR Mining generated $95.0 million in operating cash flow and $56.4 million in free cash flow. For the full-year 2024, SSR Mining generated $40.1 million in operating cash flow, while free cash flow was $(103.4) million, inclusive of the aforementioned care and maintenance costs as well as $127.6 million spent on reclamation and remediation efforts at Çöpler.

Cash and liquidity position: As of December 31, 2024, the Company had a cash and cash equivalent balance of $387.9 million and total liquidity of $887.5 million inclusive of its revolving credit facility and accompanying accordion feature. At the end of the fourth quarter of 2024, the Company had no borrowings outstanding under the revolving credit facility, exclusive of de minimis letters of credit, and was in compliance with its covenants.

Mineral Reserves & Mineral Resources (“MRMR”): Total Proven and Probable gold equivalent Mineral Reserves as of December 31, 2024 were 8.0 million ounces, up 3% on a year-over-year basis due in part to the declaration of an initial 523,000 ounces of gold Mineral Reserves at Marigold's Buffalo Valley deposit, as well as other Mineral Resource conversion and minor changes to metals price assumptions. SSR Mining increased the gold and silver price assumptions used in the calculation of 2024 Mineral Reserves at Marigold and Puna by approximately 3%, from $1,450 per ounce gold in 2023 to $1,500 per ounce in 2024, and from $18.50 per ounce silver in 2023 to $19.00 per ounce in 2024. Mineral Reserve gold price assumptions at Çöpler and Seabee of $1,450 and $1,600 per ounce, respectively, were unchanged. Total Measured and Indicated gold equivalent Mineral Resources as of December 31, 2024 were 5.2 million ounces, down 1% on a year-over-year basis. Metals price assumptions used in the calculation of Mineral Resources were unchanged from 2023. SSR Mining’s consolidated 2024 MRMR figures exclude the Hod Maden project and the recently announced CC&V transaction (discussed below).

Marigold operations: In 2024, Marigold produced 168,262 ounces of gold, in line with its full-year guidance, at cost of sales of $1,457 per payable ounce and AISC of $1,711 per payable ounce. As planned, the fourth quarter of 2024 was Marigold’s strongest, with gold production of 59,702 ounces at cost of sales of $1,406 per payable ounce and AISC of $1,638 per payable ounce.

Seabee operations: In 2024, Seabee produced 78,545 ounces of gold at cost of sales of $960 per payable ounce and AISC of $1,515 per payable ounce. Due to forest fires in the vicinity of the mine, operations at Seabee were suspended for more than 50 days. No employees were injured and the Seabee process plant and Santoy mine were not materially impacted. Operations were fully reinstated on October 11, 2024, and in the fourth quarter of 2024 Seabee produced 27,811 ounces of gold at cost of sales of $816 per payable ounce and AISC of $1,214 per payable ounce. Full-year 2024 production exceeded Seabee’s revised guidance range at costs below guidance, driven by processed grades that averaged 9.7 g/t in the fourth quarter.

Puna operations: In 2024, Puna produced 10.5 million ounces of silver, a record for the operation and meeting the top end of the mine’s previously increased full-year guidance range, at cost of sales of $16.14 per payable ounce and AISC of $15.56 per payable ounce. In the fourth quarter of 2024, silver production was 3.0 million ounces at cost of sales of $15.84 per payable ounce and AISC of $16.06 per payable ounce.

Çöpler update: As of December 31, 2024, all of the heap leach material displaced in the Çöpler Incident had been removed from the Sabırlı Valley and moved to temporary storage locations. Reclamation and remediation spend in 2024 totaled $127.6 million, and the forecasted spend on Çöpler remediation and containment work from April 1, 2024 onwards remains unchanged at $250.0 to $300.0 million.

Hod Maden: Throughout 2024, engineering studies and site preparation activities continued as the Company advances the Hod Maden project through to a construction decision. In 2024, a total of $42.1 million was spent at Hod Maden, including approximately $14.0 million in the fourth quarter. The Company expects to provide information on its anticipated 2025 capital spend at Hod Maden with its annual guidance, which is expected within the first quarter of 2025.

Sale of the non-core San Luis project: On May 23, 2024, the Company announced that it had closed the sale of the San Luis project to Highlander Silver Corp for which it received $5.0 million in cash on closing, and an additional up to $37.5 million in future cash contingent payments. A 4.0% net smelter return (“NSR”) royalty on the project was also issued to SSR Mining concurrently with closing of the transaction.

CC&V acquisition: On December 6, 2024, the Company announced it had entered into a definitive purchase agreement to acquire the Cripple Creek & Victor Gold Mine (“CC&V”) in Colorado for $100 million in upfront cash consideration and up to $175 million in additional milestone-based payments. The CC&V transaction is aligned with SSR Mining’s long-stated focus on free cash flow generation, while continuing to diversify the portfolio through the acquisition, operation and development of long-lived, high return assets. SSR Mining expects to provide the 2025 outlook for CC&V with its annual guidance following the close of the CC&V acquisition, which is expected within the first quarter of 2025.

| (1) | The Company reports non-GAAP financial measures including adjusted net income (loss) attributable to SSR Mining shareholders, adjusted net income (loss) per diluted share attributable to SSR Mining shareholders, free cash flow, cash costs and all-in sustaining costs (“AISC”) per ounce sold (a common measure in the mining industry), to manage and evaluate its operating performance at its mines. See “Cautionary Note Regarding Non-GAAP Financial Measures” for an explanation of these financial measures and a reconciliation of these financial measures to the most comparable GAAP financial measures. |

Update on the Çöpler Incident

On February 13, 2024, SSR Mining Inc. and its subsidiaries suspended all operations at its Çöpler property, in Türkiye, as a result of a significant slip on the heap leach pad. Nine employees lost their lives in connection with the Çöpler Incident. The Company continues to support the employees, families, and community members impacted by the Çöpler Incident.

In partnership with the Turkish authorities, the Company has worked to remediate the site. As of December 31, 2024, all of the displaced heap leach material in the Sabırlı Valley has been moved to temporary storage locations. As part of the remediation work, the heap leach pad will be permanently closed, and heap leach processing will no longer take place at Çöpler. Public statements from Turkish government officials have consistently confirmed that there has been no recordable contamination to local soil, water or air in the sampling locations resulting from the displaced heap leach material.

Following the Çöpler Incident, the Company commissioned Call & Nicholas, Inc. (“CNI”), an international mining consulting firm that specializes in geological engineering, geotechnical engineering, and hydrology, to conduct an independent review of the heap leach failure at Çöpler. After analysis of the engineering design, construction, and operation of the heap leach facility, and comprehensive reverse-engineering of the failure, CNI determined that the most likely cause of the Çöpler Incident was a deeply-rooted flaw in the third-party engineered design of the heap leach pad. The review found that in the third-party engineered design, the assessment of the test data overestimated the shear strength properties of the liner system at the base of the heap leach, which inflated the calculated factor of safety values in the third-party engineered design. This error resulted in insufficient shear strength along the liner interface to support the as-designed heap leach facility. CNI also determined that in all material respects, the heap leach pad construction and operation was carried out in conformance with the issued-for-construction engineered design parameters. In addition, CNI’s review did not find any substantiation that excess water, ground vibrations from blasting, nor stacking beyond the design caused the event.

As previously disclosed, on August 20, 2024, a local court issued a decision cancelling the Çöpler mine’s environmental impact assessment, which was approved in 2021 (the “2021 EIA”). The Turkish Ministry of Environment, Urbanization and Climate Change filed an appeal of the decision, and the Company filed a simultaneous intervener appeal as well. On February 11, 2025, the Turkish Council of State affirmed the finding of the lower court. As previously disclosed, with the cancellation of the 2021 EIA, the operating guidelines at Çöpler revert to those outlined in the Company’s prior Environmental Impact Assessment, which was issued in 2014 (the “2014 EIA”). Among other operating considerations, the 2014 EIA prescribes a lower throughput rate for the sulfide plant operations of 6,000 tonnes per day, as compared to 9,000 tonnes per day under the 2021 EIA.

SSR Mining continues to work closely with the relevant authorities to advance the restart of the Çöpler mine. When all necessary regulatory approvals, including the operating permits, are reinstated, it is anticipated that initial operations at Çöpler could restart within 20 days and would consist of processing a combination of stockpiled ore and ore mined from Çakmaktepe, while the remediation work continues. At this time, we are not able to estimate or predict when and under what conditions we will resume operations at Çöpler.

For additional information on the Çöpler Incident, including a discussion of the associated risks, see the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 filed on February 18, 2025.

Financial and Operating Highlights

A summary of the Company's consolidated financial and operating results for the three and twelve months ended December 31, 2024 and December 31, 2023 are presented below:

| | | Three Months Ended | | Twelve Months Ended | | | | | | | | | | | | | | (in thousands of US dollars, except per share data) | | December 31, | | December 31, | | | | | | | | | | | | | | | | 2024 | | | 2023 | | | 2024 | | | 2023 | | | | | | | Financial Results | | | | | | | | | | | | | | | | | | Revenue | | $ | 323,187 | | | $ | 425,897 | | | $ | 995,618 | | | $ | 1,426,927 | | | Cost of sales | | $ | 153,040 | | | $ | 219,340 | | | $ | 514,032 | | | $ | 804,147 | | | Operating income (loss) | | $ | 34,382 | | | $ | (297,623 | ) | | $ | (322,285 | ) | | $ | (130,244 | ) | | Net income (loss) | | $ | (3,135 | ) | | $ | (264,360 | ) | | $ | (352,582 | ) | | $ | (120,225 | ) | | Net income (loss) attributable to SSR Mining shareholders | | $ | 5,555 | | | $ | (217,845 | ) | | $ | (261,277 | ) | | $ | (98,007 | ) | | Basic net income (loss) per share attributable to SSR Mining shareholders | | $ | 0.03 | | | $ | (1.07 | ) | | $ | (1.29 | ) | | $ | (0.48 | ) | | Diluted net income (loss) per share attributable to SSR Mining shareholders | | $ | 0.03 | | | $ | (1.07 | ) | | $ | (1.29 | ) | | $ | (0.48 | ) | | Adjusted net income attributable to SSR Mining shareholders (2) | | $ | 21,266 | | | $ | 127,077 | | | $ | 57,591 | | | $ | 276,494 | | | Basic adjusted net income per share attributable to SSR Mining shareholders (2) | $ | 0.11 | | | $ | 0.62 | | | $ | 0.28 | | | $ | 1.35 | | | | Diluted adjusted net income per share attributable to SSR Mining shareholders (2) | $ | 0.10 | | | $ | 0.59 | | | $ | 0.28 | | | $ | 1.29 | | | | | | | | | | | | | | | | | | | | | | Cash provided by operating activities before changes in working capital (2) | | $ | 89,623 | | | $ | 216,922 | | | $ | 112,395 | | | $ | 554,406 | | | Cash provided by operating activities | | $ | 94,979 | | | $ | 203,159 | | | $ | 40,130 | | | $ | 421,725 | | | Cash used in investing activities | | $ | (39,560 | ) | | $ | (59,050 | ) | | $ | (143,116 | ) | | $ | (339,261 | ) | | Cash provided by (used in) financing activities | | $ | 2,308 | | | $ | (24,450 | ) | | $ | 6,918 | | | $ | (182,256 | ) | | | | | | | | | | | | | | | | | | | | Operating Results | | | | | | | | | | | | | | | | | | Gold produced (oz) | | | 89,178 | | | | 178,677 | | | | 275,013 | | | | 590,264 | | | Gold sold (oz) | | | 86,320 | | | | 172,917 | | | | 279,121 | | | | 585,171 | | | Silver produced ('000 oz) | | | 2,970 | | | | 2,759 | | | | 10,500 | | | | 9,688 | | | Silver sold ('000 oz) | | | 2,709 | | | | 2,830 | | | | 9,642 | | | | 9,920 | | | Lead produced ('000 lb) (3) | | | 15,409 | | | | 13,814 | | | | 53,703 | | | | 45,772 | | | Lead sold ('000 lb) (3) | | | 14,276 | | | | 13,758 | | | | 49,631 | | | | 48,640 | | | Zinc produced ('000 lb) (3) | | | 687 | | | | 1,322 | | | | 3,641 | | | | 7,127 | | | Zinc sold ('000 lb) (3) | | | 531 | | | | 1,992 | | | | 3,121 | | | | 8,166 | | | | | | | | | | | | | | | | | | | | | Gold equivalent produced (oz) (4) | | | 124,154 | | | | 211,226 | | | | 399,267 | | | | 706,894 | | | Gold equivalent sold (oz) (4) | | | 118,220 | | | | 206,310 | | | | 393,216 | | | | 704,594 | | | | | | | | | | | | | | | | | | | | | Average realized gold price ($/oz sold) | | $ | 2,603 | | | $ | 1,976 | | | $ | 2,381 | | | $ | 1,950 | | | Average realized silver price ($/oz sold) | | $ | 31.53 | | | $ | 23.23 | | | $ | 29.16 | | | $ | 22.82 | | | | | | | | | | | | | | | | | | | | | Cost of sales per gold equivalent ounce sold (4) | | $ | 1,295 | | | $ | 1,064 | | | $ | 1,307 | | | $ | 1,141 | | | Cash cost per gold equivalent ounce sold (2, 4) | | $ | 1,203 | | | $ | 1,008 | | | $ | 1,200 | | | $ | 1,083 | | | AISC per gold equivalent ounce sold (2, 4) | | $ | 1,857 | | | $ | 1,326 | | | $ | 1,878 | | | $ | 1,461 | | | | | | | | | | | | | | | | | | | | | Financial Position | | December 31, 2024 | | December 31, 2023 | | | | | | | | | | | | | | Cash and cash equivalents | | $ | | 387,882 | | | $ | | 492,393 | | | | | | | | | Current assets | | $ | | 1,029,034 | | | $ | | 1,196,476 | | | | | | | | | Total assets | | $ | | 5,189,020 | | | $ | | 5,385,773 | | | | | | | | | Current liabilities | | $ | | 218,877 | | | $ | | 170,573 | | | | | | | | | Total liabilities | | $ | | 1,242,159 | | | $ | | 1,081,570 | | | | | | | | | Working capital (5) | | $ | | 810,157 | | | $ | | 1,025,903 | | | | | | | |

| (2) | The Company reports non-GAAP financial measures including adjusted net income attributable to SSR Mining shareholders, adjusted net income per share attributable to SSR Mining shareholders, cash provided by operating activities before changes in working capital, cash costs and AISC per ounce sold to manage and evaluate its operating performance at its mines. Cost of sales excludes depreciation, depletion, and amortization. AISC includes the cash component of care and maintenance costs. See “Non-GAAP Financial Measures” at the end of this press release for an explanation of these financial measures and a reconciliation of these financial measures to net income (loss), cost of sales, and cash generated by operating activities, which are the most comparable GAAP financial measures. | | (3) | Data for lead production and sales relate only to lead in lead concentrate. Data for zinc production and sales relate only to zinc in zinc concentrate. | | (4) | Gold equivalent ounces are calculated multiplying the silver ounces by the ratio of the silver price to the gold price, using the average London Bullion Market Association (“LBMA”) prices for the period. The Company does not include by-products in the gold equivalent ounce calculations. | | (5) | Working capital is defined as current assets less current liabilities. |

Marigold, USA

| | | Three Months Ended | | Twelve Months Ended | | | | | | | | | | | | December 31, | | December 31, | | | | | | | | | | Operating Data | | 2024 | | 2023 | | 2024 | | 2023 | | | | | | Gold produced (oz) | | | 59,702 | | | 82,794 | | | 168,262 | | | 278,488 | | Gold sold (oz) | | | 58,250 | | | 81,173 | | | 167,669 | | | 275,962 | | | | | | | | | | | | | | | | Ore mined (kt) | | | 7,343 | | | 3,705 | | | 27,690 | | | 21,846 | | Waste removed (kt) | | | 17,271 | | | 25,793 | | | 72,028 | | | 74,800 | | Total material mined (kt) | | | 24,615 | | | 29,499 | | | 99,718 | | | 96,646 | | Strip ratio | | | 2.4 | | | 7.0 | | | 2.6 | | | 3.4 | | | | | | | | | | | | | | | | Ore stacked (kt) | | | 7,343 | | | 3,705 | | | 27,690 | | | 21,846 | | Gold grade stacked (g/t) | | | 0.42 | | | 0.43 | | | 0.28 | | | 0.45 | | | | | | | | | | | | | | | | Average realized gold price ($/oz sold) | | $ | 2,601 | | $ | 1,971 | | $ | 2,438 | | $ | 1,950 | | Cost of sales ($/oz gold sold) | | $ | 1,406 | | $ | 1,095 | | $ | 1,457 | | $ | 1,047 | | Cash costs ($/oz gold sold) (6) | | $ | 1,408 | | $ | 1,097 | | $ | 1,459 | | $ | 1,049 | | AISC ($/oz gold sold) (6) | | $ | 1,638 | | $ | 1,170 | | $ | 1,711 | | $ | 1,349 |

| (6) | The Company reports the non-GAAP financial measures of cash costs and AISC per ounce of gold sold to manage and evaluate operating performance at Marigold. See “Cautionary Note Regarding Non-GAAP Financial Measures” at the end of this press release for an explanation of these financial measures and a reconciliation to cost of sales, which are the comparable GAAP financial measure. Cost of sales excludes depreciation, depletion, and amortization. |