SSR Mining(US:SSRM)2022-02-24 10:52Financial Data and Key Metrics Changes - In 2021, the company achieved record full-year production of nearly 800,000 ounces, with all-in sustaining costs of $955 per ounce, outperforming previous guidance [7][15] - Free cash flow generation for 2021 was $444 million, translating to a 12% yield, with nearly $200 million returned to shareholders, representing about a 5% yield [7][8][31] - For Q4 2021, the company reported adjusted EPS of $0.46, with attributable net income of $127 million [30][31] Business Line Data and Key Metrics Changes - The company reported a 14% increase in reserves year-over-year, totaling over 10 million ounces, with a weighted average mine life exceeding 17 years [9][22] - Q4 production was over 210,000 ounces at all-in sustaining costs of $961 per ounce, contributing to a total of $408 million in revenue for the quarter [15][30] - The Copler project is expected to add significant production, with initial assessments indicating 1 million ounces from the C2 project for a capital investment of $220 million [11][24] Market Data and Key Metrics Changes - The company maintained a net cash position of $681 million at the end of 2021, providing flexibility for future growth and capital returns [15][38] - The transition to U.S. GAAP reporting has been completed, with the company now classified as a large accelerated filer under the SEC [33][41] Company Strategy and Development Direction - The company is focused on organic growth opportunities, with plans to increase exploration spending by 45% year-over-year [20][41] - The strategy includes maintaining a stable production base while returning capital to shareholders through increased dividends and share buybacks [19][40] - The company aims to achieve net zero greenhouse gas emissions by 2050, integrating ESG priorities into project development [14][57] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining a production profile of over 700,000 ounces annually for the next decade, supported by robust exploration and growth opportunities [27][59] - The company anticipates continued strong free cash flow generation and capital returns in 2022, with a focus on disciplined financial and operational execution [41][59] Other Important Information - The company reported a tragic incident involving a team member in Argentina, emphasizing its commitment to safety and community support [13][14] - The technical reports released provide a baseline production platform and highlight significant growth potential across all operations [27][57] Q&A Session Summary Question: Can you provide more information on the permitting process for Ardich and the timing for the C2 project? - Management indicated that permitting for Ardich is in process, with expectations to start work in Q4 2022, and the feasibility study for C2 is expected to begin shortly after April [63][64] Question: What are the plans for share buybacks and potential asset sales? - The company has about 1.2 million shares remaining under its buyback plan and is evaluating further asset sales as part of its ongoing portfolio review [65][66] Question: How much additional sulfide and oxide material is included in the technical report for Copler? - All material above the cut-off grade for feeding to the plants is included, with the majority of value derived from gold [70] Question: What is the expected impact of inflation on CapEx estimates? - The CapEx estimates are considered solid, with local sourcing in Turkey helping to mitigate inflation impacts [73] Question: What are the growth opportunities at Marigold? - The focus is on drilling around existing pits and extending the Valmy application to include new Millennium, with significant exploration funding planned [78][79]