SSR Mining(SSRM) - 2025 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - In Q4 2025, the company produced 120,000 gold equivalent ounces with an all-in sustaining cost (AISC) of $2,250 per ounce, or $2,002 per ounce excluding costs incurred at 현pler [13] - Net income attributable to shareholders in Q4 was $181 million, or $0.84 per diluted share, while adjusted net income was $190 million or $0.88 per diluted share [14] - Full year production reached 447,000 gold equivalent ounces, exceeding the midpoint of guidance, with full year AISC at $1,923 per ounce [14] - Free cash flow totaled $106 million in Q4 and $252 million for the full year, with over $400 million in free cash flow excluding changes in working capital [15] Business Line Data and Key Metrics Changes - Marigold produced 43,000 ounces of gold in Q4 with an AISC of $2,089 per ounce, and is expected to produce between 170,000-200,000 ounces in 2026 [19][20] - CC&V produced 39,000 ounces of gold in Q4 with an AISC of $1,596 per ounce, and full year production of 125,000 ounces exceeded guidance [22][23] - Seabee produced approximately 9,000 ounces at an AISC of $1,433 per ounce in Q4, with full year production expected to be 60,000-70,000 ounces [25] - Puna produced 2.1 million ounces of silver in Q4 with an AISC of $1,839 per ounce, and is expected to produce 6.25-7 million ounces in 2026 [27][28] Market Data and Key Metrics Changes - The company ended 2025 with $535 million in cash and over $1 billion in total liquidity, supporting continued investment in growth initiatives [15] - The company announced a share buyback program of up to $300 million, reflecting confidence in its financial position and share value [4][16] Company Strategy and Development Direction - The company is focused on advancing brownfield growth projects and has committed substantial capital investment for 2026, particularly in leach pad expansions at Marigold and CC&V [8][12] - The Hod Maden Development Project is highlighted as a significant asset with a $1.7 billion NPV and a 39% internal rate of return, with ongoing early site works [9][10][11] - The company aims to maintain a strong production profile while exploring additional growth opportunities across its portfolio [29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued free cash flow generation in 2026 and the potential for year-on-year production growth [4][29] - The company is committed to addressing operational challenges, particularly at Marigold, and is implementing strategies to optimize ore blending and recovery [90] - Management noted that the future outlook for Puna is bright, with ongoing exploration and development efforts expected to extend operations beyond 2028 [45][94] Other Important Information - The company reported a nearly 40% year-over-year increase in gold equivalent mineral reserves, totaling 11 million ounces, driven by the incorporation of CC&V and Hod Maden [18] - The company has a conservative mineral reserve price assumption of $1,700 per ounce for gold, which may be reevaluated in future technical reports [77] Q&A Session Summary Question: Can you provide more color on Marigold's guidance range? - Management indicated that the guidance reflects a conservative approach, with updated plans considering ore blending requirements [32][33] Question: What silver prices are needed for Puna to extend operations beyond 2028? - Management noted that ongoing work at Chinchillas and Molina, along with favorable silver prices, supports the potential for extended operations [42][45] Question: What is the timeline for a construction decision on Hod Maden? - Management stated that early site works are ongoing, and a formal construction decision will follow a review process with partners [50][51] Question: Will there be a new mine plan for Puna including Cordilleras? - Management suggested that a new technical report may be considered as drilling programs conclude, potentially extending mine life [93] Question: What is the plan for CC&V to accelerate ounces into the mine plan? - Management indicated that mine extension is contingent on regulatory approvals and ongoing optimization efforts [97][99]