SSR Mining(SSRM) - 2023 Q4 - Annual Results

Fourth Quarter and Full-Year 2023 Results Overview The Çöpler Incident and its Immediate Impact The Çöpler mine incident on February 13, 2024, suspended operations, retracted guidance, and halted capital returns, with the company assessing its full business impact - Operations at the Çöpler mine were suspended on February 13, 2024, following a significant slip on the heap leach pad, with nine individuals unaccounted for[1][2] - As a direct result of the incident, the company has retracted its 2024 and long-term guidance for its Türkiye operations[4] - The quarterly dividend payments and the automatic share purchase plan (ASPP) have been suspended to preserve liquidity[4] - Despite the incident, the company does not anticipate near-term liquidity concerns, citing a year-end 2023 cash balance of nearly $500 million and ongoing cash flow from its other operations[4] Consolidated Financial Performance Full-year 2023 revenue reached $1.43 billion, with a $98.0 million net loss due to a Çöpler impairment, while adjusted net income and operating cash flow showed substantial growth Full-Year Financial Performance (2023 vs. 2022) | Financial Metric | 2023 (in thousands USD) | 2022 (in thousands USD) | Change | | :--- | :--- | :--- | :--- | | Revenue | $1,426,927 | $1,148,033 | +24.3% | | Operating income (loss) | $(130,244) | $190,268 | N/A | | Attributable net income (loss) | $(98,007) | $194,140 | N/A | | Diluted net income (loss) per share | $(0.48) | $0.89 | N/A | | Adjusted attributable net income | $276,494 | $144,814 | +90.9% | | Adjusted diluted net income per share | $1.29 | $0.67 | +92.5% | | Cash generated by operating activities | $421,725 | $160,896 | +162.1% | - The fourth quarter 2023 attributable net loss of $217.8 million was largely due to a non-cash impairment at Çöpler related to the removal of C2 Mineral Resources from its statements[6] Consolidated Operating Performance In 2023, total gold equivalent production increased to 706,894 ounces, aligning with guidance, while the full-year All-In Sustaining Cost rose to $1,461 per ounce Full-Year Operating Highlights (2023 vs. 2022) | Operating Metric | 2023 | 2022 | Change | | :--- | :--- | :--- | :--- | | Gold equivalent produced (oz) | 706,894 | 623,819 | +13.3% | | Gold produced (oz) | 590,264 | 522,159 | +13.0% | | Silver produced ('000 oz) | 9,688 | 8,397 | +15.4% | | AISC per gold equivalent ounce sold | $1,461 | $1,339 | +9.1% | Capital Returns and Financial Position In 2023, $114.0 million was returned to shareholders, but these programs were suspended post-Çöpler Incident, with the company ending the year with $492.4 million in cash and $261.6 million net cash - Returned $114.0 million to shareholders in 2023, comprising $57.7 million in dividends and $56.3 million in share repurchases[6] - The dividend and share repurchase programs were suspended as a result of the Çöpler Incident[6] Year-End Financial Position (2023 vs. 2022) | Metric (in thousands USD) | Dec 31, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | $492,393 | $655,453 | | Total Debt | $230,920 | $301,797 | | Net Cash (Non-GAAP) | $261,574 | $387,309 | Operational Review by Asset Çöpler, Türkiye Çöpler produced 220,999 gold ounces in 2023 with an AISC of $1,433 per ounce, but a $349 million impairment was recorded due to C2 Project removal, and all operations are now suspended Çöpler Full-Year Performance (2023 vs. 2022) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Gold produced (oz) | 220,999 | 191,366 | | Gold sold (oz) | 225,599 | 192,811 | | AISC ($/oz gold sold) | $1,433 | $1,328 | - A non-cash write-down of $349 million was recorded at Çöpler for the year ended December 31, 2023, related to the removal of the C2 Project's copper-gold mineralization from the Company's Mineral Resources[12] Marigold, USA The Marigold mine achieved record gold production of 278,488 ounces in 2023, a significant increase from the prior year, with the full-year AISC at $1,349 per ounce, a slight improvement compared to 2022 Marigold Full-Year Performance (2023 vs. 2022) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Gold produced (oz) | 278,488 | 194,668 | | Gold sold (oz) | 275,962 | 195,617 | | AISC ($/oz gold sold) | $1,349 | $1,378 | - Full-year 2023 gold production was a record for the operation's more than 30-year history[15] Seabee, Canada Seabee produced 90,777 gold ounces in 2023 with an AISC of $1,427 per ounce, and a $50 million goodwill impairment was recorded due to updated Mineral Reserves and Resources Seabee Full-Year Performance (2023 vs. 2022) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Gold produced (oz) | 90,777 | 136,125 | | Gold sold (oz) | 83,610 | 133,500 | | AISC ($/oz gold sold) | $1,427 | $823 | - A write-down of $50 million in goodwill at Seabee was recorded for the year ended December 31, 2023, following an impairment evaluation based on updated Mineral Reserves and Resources[18] Puna, Argentina Puna delivered record silver production of 9.7 million ounces in 2023, exceeding guidance, with the full-year AISC at $15.37 per ounce, slightly below the 2022 level and below guidance Puna Full-Year Performance (2023 vs. 2022) | Metric | 2023 | 2022 | | :--- | :--- | :--- | | Silver produced ('000 oz) | 9,688 | 8,397 | | Silver sold ('000 oz) | 9,920 | 7,864 | | AISC ($/oz silver sold) | $15.37 | $15.50 | - Full-year 2023 silver production was a record for the operation's more than 15-year history and exceeded the mine's original full-year production guidance[20] Outlook and Guidance Updated 2024 Guidance (Excluding Çöpler) Following the Çöpler Incident, SSR Mining retracted all 2024 guidance for Türkiye operations and provided an updated outlook for Marigold, Seabee, and Puna - The company is retracting all previously issued operating and cost guidance for Çöpler and its projects in Türkiye[8] Full-Year 2024 Outlook (Excluding Çöpler and Hod Maden) | Operating Guidance | Marigold | Seabee | Puna | | :--- | :--- | :--- | :--- | | Gold Production (koz) | 155 – 175 | 75 – 85 | — | | Silver Production (Moz) | — | — | 8.75 – 9.50 | | All-In Sustaining Cost ($/oz) | 1,535 – 1,575 | 1,495 – 1,535 | 14.75 – 16.25 | Disclosures and Reconciliations Mineral Reserves and Mineral Resources (MRMR) Year-end 2023 Mineral Reserves and Resources are presented per Regulation S-K, but previously released Çöpler information may no longer be accurate due to the incident - The year-end 2023 MRMR are presented on an attributable basis in compliance with Regulation S-K[23] - The company warns that previously released operating assumptions, cost estimates, and mineral reserves for Çöpler may no longer be accurate due to the incident[22] Non-GAAP Financial Measures Reconciliation This section details reconciliations for key non-GAAP financial measures, including Net Cash, Cash Costs, AISC, Adjusted Attributable Net Income, and Free Cash Flow, to their GAAP equivalents - The report includes reconciliations for key non-GAAP measures: Cash costs, AISC per ounce sold, adjusted attributable net income (loss), free cash flow, and net cash[36] - Reconciliations are provided for Cost of Sales to Cash Costs and AISC for consolidated results and for each individual mine for Q4 and full-year 2023 and 2022[45][46] - A reconciliation of Net Income (Loss) to Adjusted Attributable Net Income is provided, detailing adjustments for items like impairment charges, foreign exchange impacts, and tax changes[49] - Reconciliations of cash provided by operating activities to free cash flow and free cash flow before changes in working capital are also included[52][53]