Troilus Mining Corp press release

SSR Mining Reports Fourth Quarter and Year-End 2020 Results

2021-02-17

TSX - Toronto Stock Exchange · Gold · Copper · Silver · Zinc · Molybdenum · Lead · Tantalum · Tin · Rubidium · Cesium · Beryllium · Canada

Canada NewsWire

_FOURTH QUARTER FREE CASH FLOW OF $157 MILLION AND __ADJUSTED ATTRIBUTABLE EPS OF $0.50 PER SHARE _

DENVER , Feb. 17, 2021 /CNW/ - SSR Mining Inc. (NASDAQ: SSRM) (TSX: SSRM) (ASX: SSR) ("SSR Mining" or "the Company") reports consolidated financial results for the fourth quarter and year ended December 31, 2020.

Rod Antal , President and CEO said, "We exited 2020 with strong operational and financial momentum across all four of our operating assets. The fourth quarter represented the first full quarter following the completion of the Alacer merger, and the results demonstrated the strength of the business with 220,000 gold-equivalent ounces produced at $976 per ounce AISC and $157 million in free cash flow. Given our strong balance sheet we declared our first quarterly dividend in line with our recently instituted capital allocation policy. Our peer leading free cash flow will also provide us the opportunity to assess additional capital returns to shareholders in the form of supplemental dividends and/or share buy-back programs in the future.

In 2021, we remain focused on execution and delivery with the goal of demonstrating our organic ability to sustain 700,000 to 800,000 gold-equivalent ounces of production for the next 5+ years. Our large brownfield growth and exploration pipeline will take center-stage this year as we advance projects and provide clarity on their potential scale and timelines."

Fourth Quarter and Year-End 2020 Highlights: (All figures are in U.S. dollars unless otherwise noted)

Closed zero-premium merger with Alacer : On September 16, 2020 , completed the transaction with Alacer to create a leading intermediate precious metals producer with robust margins, strong free cash flow generation and long mine lives led by a highly experienced leadership team with a track record of value creation.

Robust free cash flow: Reported fourth quarter attributable net income of $89.0 million , or $0.41 per share, and adjusted attributable net income of $108.8 million , or $0.50 per share. Generated cash flows from operating activities of $217.4 million and free cash flow of $157.0 million in the fourth quarter. (1)

Record fourth quarter performance: Delivered fourth quarter production of 220,432 gold equivalent ounces at AISC of $976 per gold equivalent ounce, exiting the year with strong operational momentum. (1)

Enhanced balance sheet and liquidity: Cash and cash equivalents and consolidated cash balances at year-end increased to $860.6 million and $897.0 million , respectively, further strengthening the Company's peer-leading balance sheet. (1) Cash and cash equivalents increased by $127.1 million during the fourth quarter.

Inaugural dividend announced : The Board declared the first quarterly cash dividend of $0.05 per share.

Delivered positive Çöpler District Master Plan studies: Released an updated NI 43-101 technical report outlining two production scenarios which demonstrate the long-term value and the significant organic growth potential of this world-class operation.

Discovered C2 copper-gold porphyry target at Çöpler: Announced positive results from four diamond drill holes below the Çöpler pit, with all holes intersecting gold-rich copper porphyry mineralization. The C2 results are another example of the long-term potential of Çöpler.

Çöpler contributes low-cost production: Delivered gold production of 83,029 ounces in the fourth quarter and annual production of 326,908 ounces. (2) Reported AISC of $748 per ounce in the fourth quarter, generating robust margins. (1)

Record production at Marigold: Delivered gold production of 76,941 ounces for the fourth quarter and annual production of 234,443 ounces, marking both quarterly and annual production records for the operation.

Marigold recognized for operator safety: The Marigold team was awarded first place by the Nevada Mining Association for safety for large metal operator in 2020.

Steady-state production at Seabee: Produced 31,915 ounces of gold at AISC of $787 per ounce in the fourth quarter as the mine returned to steady-state operations. (1)

Strong performance at Puna: Produced 2.2 million ounces of silver at cash costs of $8.92 per ounce in the fourth quarter. (1) AISC of $15.90 per ounce was impacted by sales well below production due to lags as concentrate shipments resumed. (1)

Provided robust 2021 outlook: In 2021, the Company expects to produce, on a consolidated basis, 720,000 to 800,000 gold-equivalent ounces at consolidated AISC of $1,050 to $1,110 per gold equivalent ounce. (1)

| (1) | SSR Mining reports the non-GAAP financial measures of all-in sustaining costs ("AISC") per ounce of gold, silver and gold equivalent sold, adjusted attributable net income, adjusted attributable net income per share, free cash flow and consolidated cash to manage and evaluate the Company's operating performance. See "Non-GAAP Financial Measures" in Section 13. | | (2) | Includes full year 2020 production from Çöpler. SSR Mining is not entitled to the economic benefits from Çöpler prior to acquisition. |

Çöpler, Turkey (amounts presented on 100% basis)

| | Three months ended December 31 | Period from acquisition to December 31, 2020 | Year ended December 31 | | | | | Operating Data | 2020 | 2020 (1) | 2020 (2) | | | | | Gold produced - oxide (oz) | 21,200 | 26,458 | 87,548 | | | | | Gold produced - sulfide (oz) | 61,830 | 76,158 | 239,360 | | | | | Total gold produced (oz) | 83,029 | 102,616 | 326,908 | | | | | Gold sold (oz) | 80,388 | 108,283 | 321,272 | | | | | | | | | | | | | Ore mined - oxide (kt) | 1,354 | 1,501 | 2,823 | | | | | Ore mined - sulfide (kt) | 935 | 1,034 | 2,255 | | | | | Total material mined (kt) | 7,045 | 8,108 | 25,861 | | | | | Waste removed (kt) | 4,756 | 5,573 | 20,783 | | | | | Strip ratio | 2.1 | 2.2 | 4.1 | | | | | | | | | | | | | Ore stacked - oxide (kt) | 1,292 | 1,413 | 2,841 | | | | | Gold grade stacked - oxide (g/t) | 1.20 | 1.20 | 1.13 | | | | | | | | | | | | | Ore processed - sulfide (kt) | 584 | 669 | 2,158 | | | | | Gold grade processed - sulfide (g/t) | 3.61 | 3.62 | 3.74 | | | | | Gold recovery - sulfide (%) | 90.3 | 90.1 | 90.7 | | | | | | | | | | | | | Average realized gold price ($/oz sold) | $ | 1,876 | $ | 1,887 | $ | 1,763 | | | | | | | | | | Cash costs ($/oz gold sold) (3, 4) | $ | 619 | $ | 614 | $ | 625 | | AISC ($/oz gold sold) (3, 4) | $ | 748 | $ | 743 | $ | 752 | | | | | | | | | | Financial Data ($000s) | | | | | | | | Revenue | $ | 151,970 | $ | 205,536 | N/A | | | Production costs | $ | 79,948 | $ | 120,618 | N/A | | | Depletion and depreciation | $ | 25,158 | $ | 34,053 | N/A | | | Income from mine operations | $ | 46,864 | $ | 50,865 | N/A | | | Exploration and evaluation expenses | $ | 2,605 | $ | 3,558 | N/A | | | Capital expenditures | $ | 18,463 | $ | 22,883 | N/A | |

| | | | (1) | The data presented in this column is for the period from September 16, 2020 to December 31, 2020, the period for which the Company was entitled to all economic benefits of Çöpler following the Company's acquisition of Alacer. | | (2) | The operating data presented in this column includes operating results for Çöpler for the entire year ended December 31, 2020, including the period prior to the Company's acquisition of Alacer on September 16, 2020. As the Company was not entitled to the economic benefits of Çöpler prior to the acquisition, financial data for the periods prior to September 16, 2020 are not provided. | | (3) | 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 Çöpler. For further information, please refer to Non-GAAP Financial Measures" in Section 13. | | (4) | Cash costs and AISC per ounce of gold sold exclude the impact of any fair value adjustment on acquired inventories as at the date of the Company's acquisition of Alacer. |

Production

During the fourth quarter of 2020, Çöpler produced 83,029 ounces of gold, which included 21,200 ounces of gold production from the Çöpler oxide plant and 61,830 ounces of gold production from the sulfide plant. Production was in line with guidance despite the impacts of COVID-19. The mine plan was revised and other actions taken to mitigate the impacts of COVID-19.

From September 16, 2020 , the date of the Company's acquisition of Alacer, to December 31, 2020 , Çöpler produced 102,616 ounces of gold, which included 26,458 ounces of gold production from the Çöpler oxide plant and 76,158 ounces of gold production from the sulfide plant.

For the year ended December 31, 2020 , Çöpler produced 326,908 ounces of gold, which included 87,548 ounces of gold production from the Çöpler oxide plant and 239,360 ounces of gold production from the sulfide plant. Production was in line with the revised mine plan that was adopted to diversify ore sources and optimize production in light of the shortfall in mine operator numbers resulting from COVID-19.

For the three months and year ended December 31, 2020 , oxide ore tonnes mined were 1.4 million and 2.8 million tonnes, respectively. The oxide ore mined grade was 1.16 g/t and 1.06 g/t, respectively.

For the three months and year ended December 31, 2020 , sulfide ore tonnes mined were 0.9 million and 2.3 million tonnes, respectively, in line with the revised mine plan.

For the three months and year ending December 31, 2020 , the sulfide plant treated 0.6 million and 2.2 million tonnes of sulfide ore, respectively. The sulfide plant continued to efficiently operate above design throughput. Plant gold recovery averaged approximately 91% for the year ended December 31, 2020 . Recovery improvement projects continued in the fourth quarter of 2020, some of which continue into 2021.

Mine operator availability suffered in 2020 due to COVID-19 restrictions. The revised mine plan reduced the haulage of material to the tailings storage facility ("TSF"), stockpiling this material for 2021, and allowed for available mining resources to be focused on the Manganese pit cutback. The TSF is approximately 5 kilometers from the mine and is constructed from competent mine waste. Despite the reduced construction rate in 2020 as a result of the impacts from COVID-19, the TSF is advancing ahead of operational requirements. A mining area was also brought into production in the Main Pit to diversify ore sources, in part, as a risk management strategy should COVID-19 related restrictions increase. Total mined tonnes for the fourth quarter and full year 2020, with the revised mine plan, were above the original mine plan.

For the three months and year ended December 31, 2020 , the total waste tonnes mined were 4.8 million and 20.8 million tonnes, respectively, in line with the revised mine plan.

The Çöpler District Master Plan 2020 ("CDMP2020"), issued in November 2020 , updated the operating parameters of the sulfide plant and includes the results of optimization studies and programs, including the supplemental flotation circuit.

The flotation circuit included in the recent amendment to the Çöpler Environmental Impact Assessment application and incorporated into the CDMP2020 was approved for construction by the Board of Directors. The flotation circuit will treat a side stream from the grinding circuit, with the concentrate reporting to autoclave feed and the tails to leaching. The flotation circuit is anticipated to increase the gold and sulfur grades processed through the autoclaves (increasing autoclave and oxygen utilization), reduce unit costs, and increase total sulfide plant throughput and gold production. Overall recovery declines modestly due to lower float tails recovery. The currently-installed grinding mills have demonstrated significant latent capacity, sufficient to support an increase in sulfide plant throughput capacity up to approximately 3 million tonnes per annum. The capital cost estimate for the flotation circuit is approximately $18 million . At December 31, 2020 , the detailed engineering designs for the flotation circuit were 89% complete and the civil construction was 95% complete. The fabrication of the steel work is in progress, with tank delivery at 75% and assembly at 55% completion. The flotation circuit commissioning is targeted for mid-year 2021.

Revenue

Revenue for the fourth quarter of 2020 was $152.0 million as 80,388 ounces of gold were sold at an average realized gold price of $1 ,876 per ounce.

Revenue for the period from September 16, 2020 , the date of the Company's acquisition of Alacer, to December 31, 2020 , was $205.5 million as 108,283 ounces of gold were sold at an average realized gold price of $1 ,887 per ounce.

Gold ounces sold in the fourth quarter of 2020 were lower than production due to the timing of gold pours at year end. Gold ounces sold from the date of acquisition to December 31, 2020 were higher than production due to the sale of finished goods inventory acquired on the acquisition date.

Operating Costs

Cash costs and AISC per ounce of gold sold are non-GAAP financial measures. Please see the discussion under "Non-GAAP Financial Measures" in Section 13.

Unit operating costs remained stable as a weaker local currency offset by the impacts associated with COVID-19. The impact of fair value adjustments on acquired inventories and mineral interests are reflected in production costs and depletion and depreciation, respectively. These impacts have been removed in the calculation of cash costs and AISC per ounce of gold sold (refer to Section 13).

In the fourth quarter of 2020, cash costs per ounce of gold sold were $619 . Royalty expense included in cash costs increased due to a combination of higher rate and higher gold prices.

In the fourth quarter of 2020, AISC per ounce of gold sold was $748 , which was also affected by increased royalty expense.

Marigold, USA

| | Three months ended December 31, | Year ended December 31, | | | | | | | | | | Operating Data | 2020 | 2019 | Change | 2020 | 2019 | Change | | | | | | Gold produced (oz) | 76,941 | 59,186 | 30% | 234,443 | 220,227 | 6% | | | | | | Gold sold (oz) | 73,927 | 61,088 | 21% | 230,043 | 226,957 | 1% | | | | | | | | | | | | | | | | | | Total material mined (kt) | 22,699 | 18,457 | 23% | 85,594 | 74,039 | 16% | | | | | | Waste removed (kt) | 15,946 | 11,736 | 36% | 62,038 | 48,364 | 28% | | | | | | Total ore stacked (kt) | 6,753 | 6,721 | —% | 23,556 | 25,676 | (8)% | | | | | | Gold stacked grade (g/t) | 0.48 | 0.36 | 33% | 0.39 | 0.40 | (3)% | | | | | | Strip ratio | 2.4 | 1.7 | 41% | 2.6 | 1.9 | 37% | | | | | | | | | | | | | | | | | | Average realized gold price ($/oz sold) | $ | 1,885 | $ | 1,478 | 28% | $ | 1,783 | $ | 1,391 | 28% | | | | | | | | | | | | | | Cash costs ($/oz gold sold) (1) | $ | 838 | $ | 778 | 8% | $ | 852 | $ | 811 | 5% | | AISC ($/oz gold sold) (1) | $ | 1,070 | $ | 1,117 | (4)% | $ | 1,222 | $ | 1,034 | 18% | | | | | | | | | | | | | | Financial Data ($000s) | | | | | | | | | | | | Revenue | $ | 139,183 | $ | 90,198 | 54% | $ | 409,798 | $ | 315,320 | 30% | | Production costs | $ | 62,228 | $ | 47,472 | 31% | $ | 196,409 | $ | 183,782 | 7% | | Depletion and depreciation | $ | 15,752 | $ | 12,463 | 26% | $ | 47,844 | $ | 52,291 | (9)% | | Income from mine operations | $ | 61,203 | $ | 30,263 | 102% | $ | 165,545 | $ | 79,247 | 109% | | Exploration and evaluation expenses | $ | 427 | $ | 319 | 34% | $ | 2,462 | $ | 936 | 163% | | Capital expenditures | $ | 15,833 | $ | 20,754 | (24)% | $ | 80,161 | $ | 53,702 | 49% |

| | | | (1) | 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. For further information, please refer to "Non-GAAP Financial Measures" in Section 13. |

Production

In the fourth quarter of 2020, 22.7 million tonnes of material were mined, a 23% increase compared to the fourth quarter of 2019. For the year ended December 31, 2020 , 85.6 million tonnes of material were mined, a 16% increase over the year ended December 31, 2019 . These increases are attributable to shorter haulage cycles coupled with increased fleet capacities in load, haul and drilling.

During the fourth quarter of 2020, 6.8 million tonnes of ore was stacked at a gold grade of 0.48 g/t. This compares to 6.7 million tonnes of ore stacked at a gold grade of 0.36 g/t in the fourth quarter of 2019. The higher grades delivered in the fourth quarter of 2020 as compared to the fourth quarter 2019 are associated with the planned mining of the higher-grade portions of Mackay 4 and Mackay 8. In the fourth quarter of 2019, mining activities focused on the lower grade portions of Mackay 5 and stripping of Mackay 4.

For the year ended December 31, 2020 , 23.6 million tonnes of ore was stacked at a gold grade of 0.39 g/t compared to 25.7 million tonnes of ore stacked at a gold grade of 0.40 g/t for the year ended December 31, 2019 . The reduction in both ore tonnes stacked and gold grade are associated with the transition from mining higher grade Mackay 5 ore in 2019 to the stripping and mining of Mackay Phases 4 and 8 in 2020.

During the fourth quarter of 2020, Marigold produced a quarterly record 76,941 ounces of gold, an increase of 30% compared to the fourth quarter of 2019 and 15% higher than the previous quarterly record. Production benefited from higher grades stacked at lower lifts on the heap leach pads. A decrease in electrowinning cell inventory also contributed to ounces produced in the fourth quarter of 2020.

Annual production in 2020 of 234,443 ounces was a record for the mine's 32-year history. This was 6% higher than the 220,227 ounces of gold for the year ended December 31, 2019 . The increase was due to low stacking elevations throughout 2020 which contributed to faster leach times and a decrease in electrowinning cell inventory during 2020.

Revenue

Revenue increased by 54% to $139.2 million in the fourth quarter of 2020 compared to the fourth quarter of 2019, due to a 28% increase in the average realized gold price and 21% more ounces sold.

Revenue increased by 30% for the year ended December 31, 2020 compared to the year ended December 31, 2019 , due to an increase of 28% in the average realized gold price.

Gold ounces sold in the fourth quarter and for the year ended December 31, 2020 were lower than production due to the timing of gold pours at year end.

Operating Costs

Cash costs and AISC per ounce of gold sold are non-GAAP financial measures. Please see the discussion under "Non-GAAP Financial Measures" in Section 13.

Cash costs per ounce of gold sold for the fourth quarter of 2020 was $838 , an 8% increase compared to the fourth quarter of 2019, primarily due to an increase in per unit royalty costs due to higher realized gold prices. Cash costs per ounce of gold sold for the full year 2020 were $852 , a 5% increase compared to the full year 2019 for the same reason.

In the fourth quarter of 2020, AISC per ounce of gold sold was $1,070 , a 4% decrease compared to the fourth quarter of 2019, due to lower capital expenditures per gold ounce sold partially offset by higher cash costs. Capital spend was lower in the fourth quarter of 2020 primarily due to the purchase of a hydraulic shovel in the fourth quarter of 2019 with no comparable purchase in 2020.

AISC per ounce of gold sold for the year ended December 31, 2020 was $1,222 , an 18% increase compared to the year ended December 31, 2019 due to higher cash costs and an increase in capital expenditures per gold ounce sold. Capital expenditures were higher than the year ended December 31, 2019 , due to mobile mine equipment replacements, increased leach pad construction, dewatering construction costs and higher deferred stripping.

Seabee, Canada

| | Three months ended December 31, | Year ended December 31, | | | | | | | | | | Operating Data | 2020 | 2019 | Change | 2020 | 2019 | Change | | | | | | Gold produced (oz) | 31,915 | 22,069 | 45% | 81,686 | 112,137 | (27)% | | | | | | Gold sold (oz) | 28,013 | 24,362 | 15% | 75,837 | 104,915 | (28)% | | | | | | | | | | | | | | | | | | Total ore milled (t) | 99,487 | 87,394 | 14% | 255,178 | 344,039 | (26)% | | | | | | Ore milled per day (t/day) | 1,081 | 950 | 14% | 697 | 943 | (26)% | | | | | | Gold mill feed grade (g/t) | 9.85 | 7.89 | 25% | 10.10 | 9.56 | 6% | | | | | | Gold recovery (%) | 98.4 | 97.9 | 1% | 98.4 | 98.2 | —% | | | | | | | | | | | | | | | | | | Average realized gold price ($/oz sold) | $ | 1,877 | $ | 1,484 | 26% | $ | 1,790 | $ | 1,398 | 28% | | | | | | | | | | | | | | Cash costs ($/oz sold) (1) | $ | 531 | $ | 505 | 5% | $ | 534 | $ | 464 | 15% | | AISC ($/oz sold) (1) | $ | 787 | $ | 751 | 5% | $ | 939 | $ | 812 | 16% | | | | | | | | | | | | | | Financial Data ($000s) | | | | | | | | | | | | Revenue | $ | 52,498 | $ | 36,142 | 45% | $ | 135,230 | $ | 146,141 | (7)% | | Production costs | $ | 15,583 | $ | 12,283 | 27% | $ | 41,308 | $ | 48,470 | (15)% | | Depletion and depreciation | $ | 11,148 | $ | 10,124 | 10% | $ | 28,233 | $ | 36,368 | (22)% | | Income from mine operations | $ | 25,767 | $ | 13,735 | 88% | $ | 65,689 | $ | 61,303 | 7% | | Exploration and evaluation expenses | $ | 2,088 | $ | 1,210 | 73% | $ | 6,108 | $ | 8,770 | (30)% | | Capital expenditures | $ | 8,201 | $ | 5,946 | 38% | $ | 33,758 | $ | 33,559 | 1% |