SSR Mining(SSRM) - 2024 Q2 - Earnings Call Transcript

Financial Data and Key Metrics Changes - In Q2 2024, the company produced 76,000 gold equivalent ounces at an all-in sustaining cost of $2,116 per ounce, which includes $245 per ounce in cash, care, and maintenance costs at Copler [9] - The cash position at the end of the quarter was $358 million, which included $55 million in remediation costs and $17 million in care and maintenance costs at Copler [9][10] - Attributable net income was $0.05 per share, while adjusted net income per share was $0.04, reflecting the exclusion of mark-to-market gains on marketable securities [10] Business Line Data and Key Metrics Changes - Marigold produced 26,000 ounces in Q2 2024, with expectations for improved production and costs in the second half of the year [12] - Seabee's production was 17,000 ounces at an all-in sustaining cost of $16.26 per ounce, with expectations for grades to average between 5 and 6 grams per ton for the remainder of 2024 [13] - Puna produced 2.7 million ounces of silver in Q2 2024, with an all-in sustaining cost of $15.19 per ounce, demonstrating strong free cash flow margins [14] Market Data and Key Metrics Changes - The company is actively discussing the remediation plan with Turkish government officials, with no recordable contamination reported in local soil, water, or air [6][7] - The company has moved over 70% of the displaced heap leach material into temporary storage locations, including more than 90% from the Sabirli Valley [6] Company Strategy and Development Direction - The company is focused on advancing remediation efforts at Copler and is committed to returning to operations once all necessary permits are received [8][15] - Brownfield exploration programs are ongoing at Marigold, Seabee, and Puna, with site establishment and engineering activities at Hod Maden progressing towards a construction decision [10] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of progressing through the priorities established post-Copler incident to gain approvals for restart [16] - The exploration program is targeted at extending mine life at Puna and Seabee, with results expected to be released as they become available [17] Other Important Information - The total estimated remediation spend is projected to be between $250 million and $300 million, with $55 million spent in Q2 2024 [6][10] - The company has retained a full complement of salaried staff at Copler and continues to support affected families and community members [5] Q&A Session Summary Question: About the conditions for the mine to resume at Copler - Management indicated that discussions with Turkish authorities are ongoing, but specific conditions and timelines for the mine's restart cannot be disclosed at this time [16] Question: Exploration and reserve updates - Management noted that it is too early to determine if reserves will be replaced based on current drilling, and any changes to gold price assumptions will be assessed at year-end [17][18]