• Gold Equivalent Production: 97,000 ounces in Q3 2024.
• All-In Sustaining Costs (AISC): $2,065 per ounce, including $252 per ounce for care and maintenance costs at Copler and Seabee.
• Year-to-Date Production: 249,000 gold equivalent ounces from Marigold, Seabee, and Puna.
• Attributable Net Income: $0.05 per share in Q3 2024.
• Adjusted Net Income: $0.03 per share, excluding minor tax and foreign exchange gains.
• Cash Generated by Operating Activities: Negative $1 million in Q3 2024.
• Free Cash Flow: Negative $34 million in Q3 2024.
• Total Cash: $334 million at the end of Q3 2024.
• Net Cash Position: $104 million at the end of Q3 2024.
• Total Liquidity: $834 million at the end of Q3 2024.
• Marigold Production: 48,000 ounces in Q3 2024.
• Seabee Production: 10,000 ounces in Q3 2024, impacted by temporary suspension due to forest fires.
• Puna Silver Production: 2.9 million ounces in Q3 2024.
• Puna Full Year Silver Production Guidance: 10 to 10.5 million ounces for 2024.
• Puna AISC: $1,537 per ounce in Q3 2024.

• Warning! GuruFocus has detected 3 Warning Signs with SSRM.

Release Date: November 06, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• SSR Mining Inc (NASDAQ:SSRM) has made significant progress in the remediation efforts at the Copler site, with all missing colleagues recovered and containment infrastructure proving effective.
• The Turkish government has confirmed no recordable contamination to local soil, water, or air from the Copler incident.
• Puna operations achieved a second consecutive quarter of record throughput, with expected silver production increased to 10-10.5 million ounces for 2024.
• SSR Mining Inc (NASDAQ:SSRM) maintains a strong financial position with $334 million in total cash and a net cash position of $104 million.
• Marigold remains on track to meet its full-year production guidance, with ongoing exploration efforts to potentially extend its operating life.

Negative Points

• The Copler remediation and containment work is estimated to cost between $250 million to $300 million and take 24 to 36 months to complete.
• Third quarter production was lower than expected, with 97,000 gold equivalent ounces produced at high all-in sustaining costs of $2,065 per ounce.
• Seabee operations were temporarily suspended due to forest fires, impacting full-year production guidance and increasing costs.
• The Copler mine restart is contingent on obtaining necessary regulatory approvals, which could delay operations.
• Marigold's full-year costs are expected to increase due to higher royalty and maintenance component costs, with these pressures likely to persist into 2025.

Q & A Highlights

Q: What approvals are needed for the permanent storage facility at Copler, and what is the status of these approvals? A: Rodney Antal, Executive Chairman, explained that the key point is that substantially all materials are out of the Sabirli Valley. The company has been consulting with the government to locate and define the permanent storage facility, ensuring it meets Turkish regulations. The engineering has progressed, and discussions with regulators are ongoing. Approvals are expected early next year, after which construction and relocation of materials will begin.

Q: Will the restart of Copler operate at 6,000 tonnes per day or 9,000 tonnes per day? A: Rodney Antal confirmed that due to an administrative appeal, the default position reverts to the 2014 EIA, limiting throughput to 6,000 tonnes per day. The company plans to operate at this rate and will accelerate efforts for an EIA refresh next year.

Q: Does the restart of Copler depend on the completion of all remediation efforts? A: Rodney Antal stated that the restart is not dependent on completing all remediation efforts. The ongoing and completed efforts at Copler are precursors to discussions with the government. The company is actively engaging with various government levels to achieve a restart while fulfilling commitments post-incident.

Q: What were the third-quarter production and cost figures for SSR Mining? A: Michael Sparks, CFO, reported third-quarter production of 97,000 gold equivalent ounces at all-in sustaining costs of $2,065 per ounce. This includes cash care and maintenance costs at Copler and Seabee. Year-to-date production from Marigold, Seabee, and Puna totaled 249,000 gold equivalent ounces.

Q: What is the financial position of SSR Mining following the third quarter? A: Michael Sparks noted that the company recorded an attributable net income of $0.05 per share and adjusted net income of $0.03 per share. Cash generated by operating activities was negative $1 million, and free cash flow was negative $34 million. The company ended the quarter with $334 million in total cash, a net cash position of $104 million, and total liquidity of $834 million.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.