Troilus Mining Corp press release

SSR Mining Reports Fourth Quarter and Year-End 2019 Results

2020-02-20

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

Canada NewsWire

VANCOUVER, Feb. 20, 2020

VANCOUVER, Feb. 20, 2020/CNW/ - SSR Mining Inc. (NASDAQ: SSRM) (TSX: SSRM) ("SSR Mining") reports consolidated financial results for the fourth quarter and year ended December 31, 2019.

Paul Benson, President and CEO said, "SSR Mining had another successful year in 2019 as we continued our track record of achieving production and cost guidance for the eighth consecutive year. We delivered reserve growth at Marigold and resource growth at Seabee, which continue to support mine life extensions at both assets.

Looking ahead, 2020 consolidated production is forecast to grow to approximately 425,000 gold equivalent ounces. With over $500 millionof cash and an outlook of increasing production and higher margins at today's precious metal prices, we are well positioned to continue our track record of creating value for our shareholders."

Fourth Quarter and Year-End 2019 Highlights: (All figures are in U.S. dollars unless otherwise noted)

Achieved annual production and cost guidance: Achieved guidance for the eighth consecutive year by delivering gold equivalent production of 421,828 ounces at cash costs of $740per payable gold equivalent ounce sold.(1)

Continued our track record of Mineral Reserves and Resources growth: Successful exploration activities in 2019 increased gold Mineral Reserves at the Marigold mine to 3.9 million ounces. At the Seabee Gold Operation, gold Measured and Indicated Mineral Resources (inclusive of Mineral Reserves) increased to 1.1 million ounces and gold Inferred Mineral Resources increased to 583,000 ounces.

Fourth consecutive year of positive earnings per share: Annual basic attributable income per share in 2019 was $0.47, an increase of 840% from 2018. Annual adjusted basic attributable income per share in 2019 was $0.81, a 252% increase from 2018. (1)

Delivered record annual gold production at Seabee:The operation achieved its sixth consecutive annual production record, producing 112,137 ounces of gold, exceeding the top end of our annual guidance. Annual cash costs were $464per payable ounce of gold sold. (1)

Strong operating performance at Marigold: Delivered gold production of 59,186 ounces for the fourth quarter of 2019, resulting in annual production of 220,227 ounces of gold, marking an annual production record and exceeding the top end of our annual guidance. Reported annual cash costs of $811per payable ounce of gold sold. (1)

Successful ramp-up of Puna:Produced 7.7 million ounces of silver in 2019 at annual cash costs of $10.38per payable ounce of silver sold.(1)Strong fourth quarter results with production of 2.1 million ounces of silver and cash costs of $8.90per payable ounce of silver sold (1), demonstrating operational improvements made through the year.

Acquired 8,900 hectares contiguous to the Marigold mine: Prospective land package on trend with several zones of gold mineralization.

Consolidated 100% ownership in Puna Operations: Completed acquisition of the remaining 25% interest in Puna Operations leading to an immediate increase in silver production and improved operational flexibility.

Maintained strong liquidity and balance sheet:Cash balance increased to $504 millionand the value of marketable securities increased to $66 million.

Completed $230 millionconvertible notes offering:Issued $230 millionaggregate principal amount of 2.50% unsecured convertible senior notes on March 19, 2019. A portion of the proceeds was used to repurchase $150 millionof our outstanding $265 million2.875% convertible notes.

Published inaugural Sustainability Report: Report outlines our approach to sustainability and underscores our commitment to transparency with our stakeholders.

_ _

| (1) | We report the non-GAAP financial measures of cash costs per payable ounce of gold and silver sold and basic attributable income per share to manage and evaluate operating performance. See "Cautionary Note Regarding Non-GAAP Measures". |

Marigold Mine, U.S.

| | Three months ended | Total | | | | | | Operating data | December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | 2019 | 2018 | | Total material mined (kt) | 18,457 | 19,033 | 19,254 | 17,295 | 74,039 | 70,431 | | Waste removed (kt) | 11,736 | 12,676 | 12,185 | 11,767 | 48,364 | 42,907 | | Total ore stacked (kt) | 6,721 | 6,357 | 7,070 | 5,528 | 25,676 | 27,526 | | Gold stacked grade (g/t) | 0.36 | 0.51 | 0.38 | 0.34 | 0.40 | 0.37 | | Gold recovery (%) | 76.0 | 77.0 | 75.0 | 73.0 | 75.4 | 73.5 | | Strip ratio | 1.7 | 2.0 | 1.7 | 2.1 | 1.9 | 1.6 | | | | | | | | | | Mining cost ($/t mined) | 1.83 | 1.73 | 1.65 | 1.73 | 1.74 | 1.76 | | Processing cost ($/t processed) | 1.03 | 1.17 | 1.01 | 1.20 | 1.10 | 1.03 | | General and administrative cost ($/t processed) | 0.54 | 0.54 | 0.47 | 0.54 | 0.51 | 0.45 | | | | | | | | | | Gold produced (oz) | 59,186 | 52,968 | 54,922 | 53,151 | 220,227 | 205,161 | | Gold sold (oz) | 61,088 | 50,650 | 59,702 | 55,517 | 226,957 | 198,884 | | | | | | | | | | Realized gold price ($/oz) (1) | 1,478 | 1,481 | 1,309 | 1,303 | 1,391 | 1,261 | | | | | | | | | | Cash costs ($/oz) (1) | 778 | 822 | 835 | 812 | 811 | 723 | | AISC ($/oz) (1) | 1,117 | 1,104 | 986 | 930 | 1,034 | 974 | | | | | | | | | | Financial data ($000s) | | | | | | | | Revenue | 90,198 | 74,820 | 78,039 | 72,263 | 315,320 | 250,341 | | Income from mine operations | 30,263 | 22,064 | 13,939 | 12,981 | 79,247 | 50,213 | | Capital expenditures (2) | 17,768 | 10,496 | 6,924 | 3,167 | 38,355 | 52,935 | | Capitalized stripping | 2,116 | 2,031 | 871 | 2,293 | 7,311 | 7,489 | | Exploration expenditures (3) | 1,190 | 1,990 | 2,452 | 3,653 | 9,285 | 10,209 |

| | | | (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 "Cautionary Note Regarding Non-GAAP Measures"._ | | (2) | Excludes capitalized exploration expenditures. | | (3) | Includes capitalized and expensed exploration expenditures. |

Mine production

For the year ended December 31, 2019, the Marigold mine produced 220,227 ounces of gold, an increase of 7% compared to the 205,161 ounces of gold produced for the year ended 2018. For the year ended 2019, gold sales were 226,957 ounces as 2019 began with 6,300 ounces in finished goods inventory.

For the year ended December 31, 2019, total material mined was 74.0 million tonnes, a 5% increase as compared to the year ended 2018. During the year ended December 31, 2019, we mined 25.7 million ore tonnes, a 7% decrease from the previous year, offset by an 8% increase in gold stacked grade.

During the fourth quarter of 2019, 18.5 million tonnes of material were mined, a decrease of 3% compared to the third quarter of 2019, due to a long shovel move and variance to planned haulage cycles. A new leach pad cell was commissioned on schedule with material stacking commencing in the fourth quarter.

During the fourth quarter of 2019, we delivered approximately 6.7 million tonnes of ore to the heap leach pads at a gold grade of 0.36 g/t. This compares to 6.4 million tonnes of ore delivered to the heap leach pads at a gold grade of 0.51 g/t in the third quarter of 2019. Gold grade mined in the fourth quarter of 2019 was 29% lower than the prior quarter as primary ore deliveries from Mackay Phase 5 wound down and were replaced by lower grade material from Mackay Phase 4. The strip ratio declined to 1.7:1 in the fourth quarter of 2019, a decrease of 12% compared to the prior quarter.

During the fourth quarter of 2019, the Marigold mine produced 59,186 ounces of gold, a 12% increase compared to the prior quarter. The increase was due to higher-grade ore stacked during the third quarter of 2019, becoming available for production in the fourth quarter of 2019.

Mine operating costs

Cash costs and AISC per payable ounce of gold sold are non-GAAP financial measures. Please see "Cautionary Note Regarding Non-GAAP Measures".

For the year ended December 31, 2019, cash costs per payable ounce of gold sold were $811, an increase of 12% compared to the year ended 2018, primarily due to higher leach pad opening inventory unit costs. Total mining costs of $1.74per tonne for the year ended December 31, 2019were consistent with the prior year primarily due to 5% higher tonnes mined, offset partially by 4% higher total mining costs. Processing and general and administrative unit costs were higher for the year ended December 31, 2019compared to the prior year mainly due to 7% fewer ore tonnes mined. Total processing costs for the year ended December 31, 2019were consistent with total processing costs for the year ended 2018, while general and administrative costs increased 7% primarily due to higher labor costs.

For the year ended December 31, 2019, AISC per payable ounce of gold sold was $1,034compared to $974for the year ended December 31, 2018, primarily due to the higher cash costs referred to above, offset partially by an increase in the number of ounces sold.

In the fourth quarter of 2019, cash costs per payable ounce of gold sold were $778, a decrease of 5% compared to the previous quarter primarily due to lower leach pad opening inventory unit costs in the fourth quarter resulting from higher grades mined in the third quarter. Total mining costs of $1.83per tonne in the fourth quarter of 2019 were 6% higher than the previous quarter due to 3% fewer tonnes mined and 3% higher total mining costs. Total mining costs were higher in the fourth quarter of 2019 mainly due to the timing of haul truck tire replacements. Processing unit costs were 12% lower in the fourth quarter of 2019 compared to the previous quarter mainly due to 6% higher ore tonnes mined and 7% lower total processing costs. Total processing costs were lower in the fourth quarter of 2019 mainly due to lower cyanide consumption and lower power unit rates. General and administrative unit costs in the fourth quarter of 2019 were consistent with the previous quarter as higher ore tonnes mined were offset by higher labor costs.

In the fourth quarter of 2019, AISC per payable ounce of gold sold was $1,117compared to $1,104in the third quarter of 2019 due to higher planned sustaining capital expenditures, primarily related to the purchase of a PC7000 Komatsu shovel during the quarter for approximately $10.6 million.

Mine sales

Realized gold price is a non-GAAP financial measure. Please see "Cautionary Note Regarding Non-GAAP Measures".

For the year ended December 31, 2019, we sold 226,957 ounces of gold, a 14% increase compared to sales of 198,884 ounces of gold during the prior year. We realized an average gold price of $1,391per ounce during the year ended December 31, 2019, compared to an average realized gold price of $1,261per ounce during the year ended December 31, 2018.

In the fourth quarter of 2019, we sold 61,088 ounces of gold, a 21% increase compared to sales of 50,650 ounces of gold in the third quarter of 2019. We realized an average gold price of $1,478per ounce during the fourth quarter of 2019, compared to an average realized gold price of $1,481per ounce during the third quarter of 2019.

Exploration

The main focus of the 2019 exploration program at Marigold was to convert Red Dot Mineral Resources into Mineral Reserves. During previous quarters, we conducted exploration drilling for additional Mineral Resources along areas that were north and south of Red Dot, within the Mackay pit and on Valmytarget areas such as Crossfire and East Basalt. During the fourth quarter of 2019, we completed a total of 64 reverse circulation ("RC") drill holes for 20,682 meters on these targets.

During the year ended December 31, 2019, our Red Dot exploration program focused on geotechnical drilling and engineering with the goal of declaring additional Mineral Reserves. In the fourth quarter of 2019, we completed the second phase of confirmation drilling, which included nine core holes for 3,700 meters. Based on the results of these evaluations, we converted Mineral Resources to Mineral Reserves and Red Dot is anticipated to extend the Marigold mine life into the early 2030s, without requiring expansion of the haul fleet or the associated expansion capital.

Exploration at Marigold for the year ended December 31, 2019was successful in replacing mined depletion and growing Mineral Reserves compared to the year ended December 31, 2018. Including leach pad inventory, year-over-year Probable Mineral Reserves increased by 18%. At the same time, Indicated Mineral Resources (inclusive of Mineral Reserves and leach pad inventory) decreased by 11% due to depletion and model changes. Inferred Mineral Resources declined by 55% to 0.18 million gold ounces (16.2 million tonnes at an average gold grade of 0.35 g/t). Please see the section "Mineral Reserves and Mineral Resources" for more detail on our Mineral Reserves and Mineral Resources.

During the fourth quarter of 2019, we completed 20,825 meters of drilling in 64 RC drill holes at Trenton Canyon. RC drilling for the year amounted to 93,006 meters in 272 drill holes.

Following the exploration release of July 30, 2019, we received another 42 intercepts with grade-thickness products exceeding 20 gram-meters. These results, in addition to earlier published drill assays, contribute to the Mineral Resources reported for the Marigold mine.

For 2020, we are planning 64,000 meters of RC and core drilling for resource growth at Trenton Canyon, Valmy, East Basalt, Mackay, and on two recently acquired small land parcels internal to Marigold's mineral claims package. This work includes diamond drilling to explore for higher-grade sulphide hosted gold deposits between East Basalt and Trenton Canyon.

Seabee Gold Operation, Canada

| | Three months ended | Total | | | | | | Operating data | December 31, 2019 | September 30, 2019 | June 30,

2019 | March 31,

2019 | 2019 | 2018 | | Total ore milled (t) | 87,394 | 77,465 | 88,424 | 90,756 | 344,039 | 351,999 | | Ore milled per day (t/day) | 950 | 842 | 971 | 1,008 | 943 | 964 | | Gold mill feed grade (g/t) | 7.89 | 12.39 | 9.83 | 8.59 | 9.56 | 9.16 | | Gold recovery (%) | 97.9 | 98.8 | 98.4 | 97.2 | 98.2 | 97.4 | | | | | | | | | | Mining cost ($/t mined) | 59 | 61 | 53 | 52 | 56 | 56 | | Processing cost ($/t processed) | 29 | 28 | 35 | 28 | 30 | 25 | | General and administrative cost ($/t processed) | 59 | 59 | 50 | 53 | 54 | 56 | | | | | | | | | | Gold produced (oz) | 22,069 | 32,345 | 26,539 | 31,184 | 112,137 | 95,602 | | Gold sold (oz) (1) | 24,362 | 28,278 | 24,276 | 27,999 | 104,915 | 91,410 | | | | | | | | | | Realized gold price ($/oz) (2) | 1,484 | 1,480 | 1,329 | 1,302 | 1,398 | 1,267 | | | | | | | | | | Cash costs ($/oz) (2) | 505 | 373 | 526 | 467 | 464 | 505 | | AISC ($/oz) (2) | 751 | 715 | 828 | 947 | 812 | 755 | | | | | | | | | | Financial data ($000s) | | | | | | | | Revenue | 36,142 | 41,331 | 32,237 | 36,431 | 146,141 | 115,655 | | Income from mine operations | 13,735 | 22,134 | 11,762 | 13,672 | 61,303 | 30,783 | | Capital expenditures | 2,772 | 5,406 | 3,358 | 8,772 | 20,308 | 7,054 | | Capitalized development | 3,312 | 3,352 | 3,345 | 3,379 | 13,388 | 9,074 | | Exploration expenditures (3) | 1,210 | 2,131 | 2,257 | 3,172 | 8,770 | 9,298 |

| | | | (1) | _Beginning with the first quarter of 2018, the holder of the 3% net smelter return royalty elected to receive its royalty in-kind and we will no longer report these ounces within gold sold._ | | (2) | _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"._ | | (3) | Includes capitalized and expensed exploration expenditures. |

Mine production

For the year ended December 31, 2019, the Seabee Gold Operation produced 112,137 ounces of gold, an annual production record and a 17% increase compared to the year ended December 31, 2018. The increase in gold production was mainly due to higher mill feed head grade, in addition to 1,244 ounces (on a gross basis) recovered from sludge, fines and cathodes during the third quarter of 2019.

For the year ended December 31, 2019, the operation milled 344,039 tonnes of ore, a decrease of 2% from the 351,999 tonnes milled during the year ended December 31, 2018. For the year ended December 31, 2019, the average gold mill feed grade was 9.56 g/t, a 4% increase compared to the prior year. The Santoy mine supplied 100% of ore milled, predominantly from long hole stopes.

In the fourth quarter of 2019, the operation produced 22,069 ounces of gold, a 32% decrease from the third quarter of 2019, mainly due to lower gold grades more than offsetting higher milling rates.

In the fourth quarter of 2019, the operation milled 87,394 tonnes of ore compared to 77,465 tonnes in the third quarter of 2019. The mill achieved an average throughput of 950 tonnes per day over the fourth quarter of 2019, a 13% increase compared to the previous quarter, mainly due to increased mill feed from the Santoy mine. During the fourth quarter of 2019, gold mill feed grade was 7.89 g/t, a 36% decrease compared to the third quarter of 2019, as a result of stope sequencing. Gold recovery for the fourth quarter of 2019 was 97.9%, consistent with the previous quarter.

Mine operating costs

Cash costs and AISC per payable ounce of gold sold are non-GAAP financial measures. Please see "Cautionary Note Regarding Non-GAAP Measures".

For the year ended December 31, 2019, cash costs per payable ounce of gold sold were $464, 8% lower than the $505for the year ended December 31, 2018. The decrease is due primarily to a 15% increase in ounces sold in 2019 as a result of the higher gold mill feed grade, offset partially by higher processing costs.

For the year ended December 31, 2019, AISC per payable ounce of gold sold was $812, 8% higher than the $755for the year ended December 31, 2018. The increase is due to higher planned capital expenditures in 2019, related mainly to the Tailings Management Facility expansion, offset partially by the decrease in cash costs.

For the fourth quarter of 2019, cash costs per payable ounce of gold sold were $505, 35% higher than the $373for the third quarter of 2019, due primarily to lower gold grade, 14% fewer ounces sold compared to the third quarter of 2019 and increases in total mining and general and administrative costs.

For the fourth quarter of 2019, AISC per payable ounce of gold sold was $751, compared to $715in the third quarter of 2019 due to higher cash costs in conjunction with lower ounces sold in the fourth quarter of 2019, offset partially by lower sustaining capital expenditures.

Mine sales

Realized gold price is a non-GAAP financial measure. Please see "Cautionary Note Regarding Non-GAAP Measures".

For the year ended December 31, 2019, we sold 104,915 ounces of gold, a 15% increase compared to the 91,410 ounces of gold sold in during the prior year. We realized an average gold price of $1,398per ounce during the year ended December 31, 2019compared to an average realized gold price of $1,267per ounce during the year ended December 31, 2018.

In the fourth quarter of 2019, we sold 24,362 ounces of gold, a decrease of 14% compared to the 28,278 ounces of gold sold in the third quarter of 2019. We realized an average gold price of $1,484per ounce during the fourth quarter of 2019 compared to an average realized gold price of $1,480per ounce during the third quarter of 2019.

Exploration

In 2019, exploration at Seabee focused on increasing and upgrading Mineral Resources near the Santoy mine through 68,000 meters of drilling from surface and underground. Specific targets included Santoy 8A and Santoy Gap and the recently discovered Inferred Mineral Resources at Gap Hanging Wall ("Gap HW").

For the year ended December 31, 2019, Mineral Reserves decreased by 18%, due to mining depletion; however, the average gold grade is 11% higher compared to the year ended December 31, 2018. As of December 31, 2019, Measured and Indicated Mineral Resources (inclusive of Mineral Reserves) increased by 23% at an average gold grade of 10.61 g/t as a result of our exploration focus at Gap HW. As of December 31, 2019, Inferred Mineral Resources are 583,000 ounces (2.13 million tonnes at an average gold grade of 8.50 g/t), 21% higher compared to the year ended December 31, 2018, due to conversion and continued exploration activity at Gap HW. Gap HW is now a significant discovery for the Seabee Gold Operation and remains open on strike and at depth. Please see the section "Mineral Reserves and Mineral Resources" for more detail on our Mineral Reserves and Mineral Resources.