SSR Mining(US:SSRM)2023-02-23 01:58Financial Data and Key Metrics Changes - The company achieved a strong fourth quarter production of 183,000 ounces at an all-in sustaining cost of $1,358 per ounce, with full-year production of 624,000 ounces at an all-in sustaining cost of $1,339 per ounce, both within revised guidance ranges [10][24] - Free cash flow for the fourth quarter was nearly $100 million, contributing to a full-year free cash flow of $23 million or $171 million before working capital changes [18][33] - The company expects approximately $140 million of free cash flow in 2023 based on a gold price assumption of $1,800 and production guidance of 700,000 to 790,000 ounces [8][28] Business Line Data and Key Metrics Changes - At Çöpler, full-year production was 191,000 ounces, with a 2023 production guidance of 240,000 to 270,000 ounces [42] - Marigold produced 63,000 ounces in Q4 with an all-in sustaining cost of $1,160 per ounce, and is expected to produce 260,000 to 290,000 ounces in 2023 [27][50] - Seabee delivered record full-year production in 2022, with Q4 mining and processing rates averaging nearly 1,300 tons per day [53] Market Data and Key Metrics Changes - The company reported revenue of $306 million for the full year, with fourth quarter revenue of $302 million [32] - Gold equivalent sales in Q4 were 172,000 ounces, slightly lower than production due to a temporary strike affecting shipping [32] Company Strategy and Development Direction - The company aims to maintain a stable production platform of approximately 700,000 ounces through 2025, focusing on near-mine exploration and resource development [13][30] - Strategic opportunities are being evaluated across the sector, with a disciplined approach to future acquisitions [14] - The company plans to increase its exploration and development budget to $94 million, up approximately 50% from 2022 [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a strong year of production and cash flow, with expectations for consolidated production to be weighted towards the second half of 2023 [40][41] - The company is addressing inflationary pressures across operations, with a focus on mitigating cost impacts while maintaining strong free cash flow [70][71] Other Important Information - The company returned approximately $160 million to shareholders in 2022 through dividends and share buybacks, marking a peer-leading 5% capital return yield [18][38] - The company maintains a strong cash position with nearly $700 million in cash and cash equivalents and total liquidity of nearly $1 billion [35] Q&A Session Summary Question: Regarding Marigold's production guidance and mine plan - Management acknowledged the optimization of mine plans and the potential for production to rebound after a dip in 2025, emphasizing ongoing evaluation of the situation [60] Question: About drilling completed at Marigold and its impact on reserves - Management indicated that while drilling results were encouraging, they were not incorporated into the current reserve update, but there is potential to smooth production in 2025 [62] Question: On Seabee's production guidance and performance - Management explained that lower-than-expected production was due to geological challenges, with plans to push some grades into 2023 [67] Question: On cost inflation across operations - Management noted that inflationary pressures are being felt across the board, with specific impacts from fuel and labor costs [68][70] Question: Regarding share buyback strategy - Management stated that they will remain consistent with their buyback program while evaluating other capital deployment strategies [73]