SSR Mining Inc. (NASDAQ:SSRM) Q4 2024 Earnings Conference Call February 18, 2025 5:00 PM ET Company Participants Alex Hunchak - Director, Corporate Development and IR Rod Antal - Executive Chairman Michael Sparks - Chief Financial Officer Bill MacNevin - Executive Vice President, Operations and Sustainability Conference Call Participants Ovais Habib - Scotiabank Cosmos Chiu - CIBC Lawson Winder - Bank of America Securities Operator Hello everyone, and welcome to SSR Mining's Fourth Quarter and Year End 2024 ...

Group 1 - SSR Mining (SSRM) has returned approximately 13.1% year-to-date, outperforming the Basic Materials sector, which has lost an average of 7.1% [4] - SSR Mining is ranked 2 (Buy) in the Zacks Rank system, indicating strong analyst sentiment and an improving earnings outlook [3] - The Zacks Consensus Estimate for SSR Mining's full-year earnings has increased by 141.7% over the past 90 days, reflecting positive revisions [3] Group 2 - SSR Mining belongs to the Mining - Miscellaneous industry, which has seen an average loss of 18.9% this year, further highlighting SSRM's strong performance [5] - Eldorado Gold Corporation (EGO), another stock in the Basic Materials sector, has a year-to-date return of 0.9% and also holds a Zacks Rank of 2 (Buy) [4][5] - The Mining - Gold industry, which includes Eldorado Gold, has increased by 18.7% since the beginning of the year, indicating a contrasting performance compared to SSR Mining's industry [6]

Core Insights - SSR Mining Inc. announced that its Marigold Mine achieved gold production of five million ounces as of December 30, 2024, showcasing the mine's quality and capabilities [1] - The company signed a definitive purchase agreement with Newmont Corporation to acquire the Cripple Creek & Victor Gold Mine, which will enhance SSR Mining's portfolio and increase its average annual gold production to 300,000-400,000 ounces, making it the third-largest gold producer in the U.S. [4][5] Group 1: Marigold Mine Performance - Marigold Mine has been operational for over 35 years and was acquired by SSR Mining in 2014, producing a total of 2 million ounces of gold since then, with a peak production of 278,000 ounces in 2023 [2] - As of December 31, 2023, Marigold Mine had nearly 3 million ounces of Mineral Reserves and an expected operational life of nine years [2] - SSR Mining anticipates $10 million in growth expenditure at the Marigold Mine [2] Group 2: Acquisition and Production Outlook - The acquisition of the Cripple Creek & Victor Gold Mine is expected to add 170,000 ounces of gold to SSR Mining's annual production [5] - Newmont Corporation projects 2024 gold production of 170,000 ounces for CC&V at a cost of sales of $1,270 per ounce and an all-in sustaining cost of $1,610 per ounce, indicating strong free cash flow margins [5] Group 3: Stock Performance and Rankings - SSR Mining's stock has declined by 32.3% over the past year, compared to a 19.1% decline in the industry [6] - SSR Mining currently holds a Zacks Rank 2 (Buy), indicating a favorable outlook [8]

Production and Operations - Third quarter 2024 production was 97,429 gold equivalent ounces, with year-to-date production totaling 275,113 gold equivalent ounces at a consolidated cost of sales of $1,312 per ounce and all-in sustaining costs (AISC) of $1,886 per ounce[13]. - Marigold operations produced 48,189 ounces of gold in Q3 2024, with a full-year production guidance of 155,000 to 175,000 ounces[17]. - Seabee operations produced 10,252 ounces of gold in Q3 2024, with full-year production guidance now set at 65,000 to 70,000 ounces[18]. - Puna operations achieved silver production of 2.9 million ounces in Q3 2024, with full-year production guidance increased to 10.0 to 10.5 million ounces[19]. - The company continues to advance the Hod Maden project, spending approximately $10.9 million in Q3 2024[20]. - The Çöpler mine's operations remain suspended, with a potential restart anticipated within 20 days once necessary regulatory approvals are obtained[9]. - Çöpler produced only 4,714 ounces of gold in Q3 2024, a significant decrease from 56,768 ounces in Q3 2023, with year-to-date production at 26,541 ounces compared to 163,873 ounces last year[29]. - Seabee produced 10,252 ounces of gold in Q3 2024, down 48% from 19,824 ounces in Q3 2023, and year-to-date production was 50,734 ounces compared to 52,020 ounces in the same period last year[25]. - Puna produced 2.9 million ounces of silver in Q3 2024, an increase from 2.6 million ounces in Q3 2023, with year-to-date production at 7.5 million ounces versus 6.9 million ounces last year[27]. Financial Performance - Net income attributable to SSR Mining shareholders in the third quarter of 2024 was $10.6 million, or $0.05 per diluted share, with adjusted net income of $6.4 million, or $0.03 per diluted share[14]. - For the three months ended September 30, 2024, SSR Mining reported revenue of $257,356,000, a decrease of 33.2% from $385,390,000 in 2023[21]. - The cost of sales for the same period was $138,281,000, down 35.6% from $214,670,000 in 2023[21]. - SSR Mining's net income for Q3 2024 was $6,251,000, compared to a net loss of $7,245,000 in Q3 2023[21]. - Cash provided by operating activities before changes in working capital was $13,898,000 in Q3 2024, compared to $141,892,000 in Q3 2023[21]. - The company reported a net income (loss) attributable to shareholders of $(266.8) million for the nine months ended September 30, 2024, compared to $123.5 million for the same period in 2023[52]. - Free cash flow for the three months ended September 30, 2024, is reported at $(34.1) million, while for the same period in 2023, it was $87.8 million[54]. - Cash provided by operating activities for the three months ended September 2024 was $(1,349) thousand, compared to $135,256 thousand for the same period in 2023[55]. - Cash provided by operating activities before changes in working capital (non-GAAP) for the nine months ended September 2024 was $22,772 thousand, down from $336,235 thousand for the same period in 2023[55]. Costs and Expenditures - The company incurred $29.8 million in care and maintenance costs at Çöpler during Q3 2024[14]. - The expected mine site cost of sales for Marigold in 2024 is projected to be between $1,450 and $1,480 per payable ounce[24]. - AISC for Marigold is anticipated to be between $1,650 and $1,680 per payable ounce in 2024, with increased costs attributed to higher royalty costs and maintenance[24]. - Full-year 2024 production guidance for Seabee is now 65,000 to 70,000 ounces of gold, with mine site cost of sales projected at $1,135 to $1,165 per payable ounce and AISC at $1,725 to $1,755 per payable ounce[26]. - Full-year 2024 production guidance for Puna has been increased to 10.0 to 10.5 million ounces of silver, with unchanged mine site cost of sales of $16.50 to $18.00 per payable ounce and AISC of $14.75 to $16.25 per payable ounce[28]. - During Q3 2024, Seabee reported a cost of sales of $1,280 per payable ounce and AISC of $2,301 per payable ounce, reflecting $7.7 million in care and maintenance expenses during a temporary suspension of operations[25]. - Puna's AISC for Q3 2024 was $15.37 per payable ounce, with a cost of sales of $16.06 per payable ounce, showing a year-over-year increase in efficiency[27]. - Total cost of sales (GAAP) for the nine months ended September 30, 2024, was $360,764,000, compared to $584,607,000 for the same period in 2023, representing a decrease of approximately 38.3%[47]. - Cash costs (non-GAAP) for the nine months ended September 30, 2024, totaled $329,472,000, down from $554,876,000 in 2023, indicating a reduction of about 40.7%[47]. - Total AISC (non-GAAP) for the nine months ended September 30, 2024, was $518,621,000, compared to $755,459,000 in 2023, reflecting a decrease of approximately 31.4%[47]. Liquidity and Debt - As of September 30, 2024, the company had a cash and cash equivalent balance of $334.3 million and total liquidity of $834.0 million[15]. - As of September 30, 2024, total cash was $334,341,000, a decrease from $492,494,000 as of December 31, 2023, representing a decline of approximately 32%[39]. - The company's total debt as of September 30, 2024, was $230,000,000, unchanged from December 31, 2023, while net cash (debt) decreased to $104,341,000 from $261,574,000, a reduction of about 60%[39]. - Total liquidity, including cash and cash equivalents, restricted cash, and borrowing capacity, was $834,341,000 as of September 30, 2024, down from $992,494,000 at the end of 2023, indicating a decrease of approximately 16%[40]. - The company has a $400 million credit facility that remains undrawn, with an additional $100 million accordion feature available[39]. Risks and Forward-Looking Statements - Key risks include local and global political and economic conditions, regulatory changes, and potential impacts from global pandemics on mining operations[33]. - Forward-looking statements regarding production timelines, operational targets, and financial outlooks are subject to various risks and uncertainties that could materially affect actual results[34]. - The company does not intend to update forward-looking information unless required by law, highlighting the speculative nature of such statements[36]. General and Administrative Expenses - General and administrative expenses totaled $17,564,000, which includes stock-based compensation[46]. - General and administrative expenses for the nine months ended September 30, 2024, totaled $48,139,000, down from $52,366,000 in 2023, indicating a reduction of about 8.7%[47].

Core Viewpoint - SSR Mining Inc. is expected to report a significant year-over-year decline in earnings for the third quarter of 2024, with an estimated earnings per share of 15 cents, reflecting a 42% drop from the same quarter in 2023 [1][4]. Earnings Estimates - The Zacks Consensus Estimate for SSR Mining's third-quarter earnings is 15 cents per share, down 28.57% over the past 60 days [1]. - The earnings surprise history shows that SSR Mining has beaten estimates in three of the last four quarters, with an average surprise of 202.55% [4][5]. Production Challenges - A major incident at the Çöpler mine on February 13, 2024, led to a suspension of operations, which significantly impacted production as Çöpler contributed approximately 31% of total production in 2023 [8]. - SSR Mining produced 177,691 gold equivalent ounces in the first half of 2024, a 41% decrease from 303,518 ounces in the first half of 2023, primarily due to a 79.6% drop at Çöpler [9]. - Operations at the Seabee mine were also suspended due to forest fires, which contributed around 15% of gold production in 2023 [10]. Future Production Guidance - SSR Mining is expected to revise its production and cost guidance for Seabee during the upcoming earnings call, with prior guidance set at 75,000-85,000 ounces of gold [11]. - Marigold is projected to produce 155,000-175,000 ounces of gold in 2024, down from 278,488 ounces in 2023, while Puna aims for 8.75-9.50 million ounces of silver, lower than 9.69 million ounces produced in 2023 [11][12]. Market Conditions - Gold prices averaged $2,491 per ounce in the third quarter, a 29% increase year-over-year, driven by expectations of interest rate cuts and geopolitical tensions [13]. - Despite higher gold prices, the anticipated lower production is expected to offset gains in SSR Mining's third-quarter performance [14]. Stock Performance and Valuation - SSR Mining's stock has declined 50.7% year-to-date, contrasting with a 1.7% decline in the industry and gains of 9% and 31.6% in the Zacks Basic Materials sector and S&P 500, respectively [15]. - The stock is trading at a 12-month forward price-to-earnings ratio of 19.62, significantly higher than the industry average of 12.88 [15][16]. Investment Outlook - SSR Mining is well-positioned with strong cash flow and low debt, allowing for investment in high-quality assets, with expectations of increased production at Marigold by 2027 [17]. - Gold prices have risen 33% year-to-date, currently at $2,740 per ounce, indicating a favorable environment for the company [18]. - Investors are advised to hold existing shares due to solid long-term fundamentals, while new investors may consider waiting for a better entry point given the current premium valuation [19].

SSR Mining Inc. (SSRM) has plunged 39.3% year to date against the industry’s decline of 10.7%. Meanwhile, the Zacks Basic Materials sector and the S&P 500 have gained 2.2% and 22.7%, respectively.The SSRM stock was dealt a significant blow by a major slip on the heap leach pad at the Çöpler mine on Feb. 13, 2024. Therefore, operations had to be suspended. This incident led to a 54% plunge in its share price in a day. Even though SSRM stock has picked up gradually, it has not resumed the pre-Çöplerincident p ...

Investors looking for stocks in the Mining - Miscellaneous sector might want to consider either SSR Mining (SSRM) or BHP (BHP) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look. The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies ...

SSR Mining Inc. (SSRM) announced that its Seabee mine operations will resume in the second half of October, following a temporary suspension on Aug. 21, 2024. SSR Mining's Restart and Recovery Efforts Following the neighboring forest fire in August, the company's employees were evacuated from the premises. The fire impacted remote equipment such as power poles, pipes and exploration equipment. The process plant and the Santoy mine were not materially affected by the incident. The fire risk has been greatly ...

Monty Rakusen Thesis In February 2024, SSR Mining (NASDAQ:SSRM) suspended all operations at Çöpler following a significant slip on the oxide leach pad which accounted for roughly 11.0% of Çöpler's total production in 2023. The share price fell by 53.5% on the announcement date and has been languishing since. The company's enterprise value is now around $900 million or roughly equal to $122.6 per proven and probable gold ounce and that excludes the silver reserves located at Puna and other resources like tho ...

Investors with an interest in Mining - Miscellaneous stocks have likely encountered both SSR Mining (SSRM) and Wheaton Precious Metals Corp. (WPM) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out. There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank is a proven strategy ...