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SSR Mining(SSRM) - 2024 Q3 - Earnings Call Transcript
SSRMSSR Mining(SSRM)2024-11-07 01:54
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Financial Data and Key Metrics Changes - In Q3 2024, the company produced 97,000 gold equivalent ounces at all sustaining costs of 2,065perounce,whichincludescashcareandmaintenancecosts[15]−Attributablenetincomewas2,065 per ounce, which includes cash care and maintenance costs [15] - Attributable net income was 0.05 per share, while adjusted net income per share was 0.03,reflectingminortaxandforeignexchangegains[17]−Cashgeneratedbyoperatingactivitieswasnegative0.03, reflecting minor tax and foreign exchange gains [17] - Cash generated by operating activities was negative 1 million, and free cash flow was negative 34million,withtotalcashat34 million, with total cash at 334 million and a net cash position of 104million[18]BusinessLineDataandKeyMetricsChanges−Marigoldproduced48,000ouncesinQ3,ontracktomeetfull−yearguidanceof155,000to175,000ounces,butcostsareexpectedtoincreaseduetohigherroyaltyandmaintenancecosts[20][21]−Seabee′sproductionwas10,000ounces,impactedbyatemporarysuspensionduetoforestfires,withrevisedfull−yearguidanceof65,000to70,000ounces[22][23]−Punaproduced2.9millionouncesofsilver,withanexpectedfull−yearproductionof10millionto10.5millionounces,anincreaseofover1millionouncesfrompreviousestimates[25]MarketDataandKeyMetricsChanges−ThecompanynotedthattheAISCforPunawas104 million [18] Business Line Data and Key Metrics Changes - Marigold produced 48,000 ounces in Q3, on track to meet full-year guidance of 155,000 to 175,000 ounces, but costs are expected to increase due to higher royalty and maintenance costs [20][21] - Seabee's production was 10,000 ounces, impacted by a temporary suspension due to forest fires, with revised full-year guidance of 65,000 to 70,000 ounces [22][23] - Puna produced 2.9 million ounces of silver, with an expected full-year production of 10 million to 10.5 million ounces, an increase of over 1 million ounces from previous estimates [25] Market Data and Key Metrics Changes - The company noted that the AISC for Puna was 15.37 per ounce, indicating strong free cash flow margins in the current silver price environment [26] Company Strategy and Development Direction - The company is focused on operational excellence initiatives and brownfields growth projects as it moves into 2025 [28] - The company is advancing Hod Maden and expects to provide an update on anticipated capital spending early next year [29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a strong close to the year across all operations and highlighted ongoing discussions with Turkish authorities regarding the Çöpler remediation and potential restart [27][39] Other Important Information - The remediation and containment work at Çöpler is estimated to cost between 250millionto250 million to 300 million and take 24 to 36 months to complete, with $48 million spent in Q3 [12] Q&A Session Summary Question: What approvals are needed for the Çöpler remediation? - Management indicated that discussions with the government are ongoing to ensure all requirements are met for the permanent storage facility, with expectations for approvals early next year [33][34] Question: Will the restart be at 6,000 tons per day? - Management confirmed that the fallback position is to revert to the 2014 EIA, which limits operations to 6,000 tons per day [36] Question: Can the restart occur while remediation is ongoing? - Management clarified that the restart is not dependent on the completion of all remediation efforts, but ongoing work aids in discussions with regulators [38][39]