SSR Mining(US:SSRM)2024-05-09 03:06Financial Data and Key Metrics Changes - The company recorded an attributable net loss of $1.42 per share in Q1 2024, reflecting the financial impacts of the Copler incident [8] - Adjusted net income per share was $0.11, with operating cash flow of $25 million and negative free cash flow of $9 million [8] - Total cash position at the end of Q1 was $467 million, with an additional undrawn revolving credit facility available [8] Business Line Data and Key Metrics Changes - Q1 2024 production was 102,000 gold equivalent ounces at an all-in sustaining cost of $1,569 per ounce, with 80,000 ounces from Marigold, Seabee, and Puna [6] - Marigold produced 35,000 ounces in Q1, with an all-in sustaining cost of $1,430 per ounce, in line with expectations [20] - Seabee produced 24,000 ounces at an all-in sustaining cost of $1,416 per ounce, slightly better than planned due to processing higher-grade material [21] - Puna produced 1.9 million ounces of silver, slightly lower than expected due to significant rainfall, but remains on track for full-year guidance of 8.75 million to 9.5 million ounces [9] Market Data and Key Metrics Changes - The company expects the second quarter to be the highest cost and lowest production period of the year due to the production profile being back half weighted [7] - The remediation work at Copler is expected to cost between $250 million to $300 million, in addition to approximately $25 million already spent since the incident [17][19] Company Strategy and Development Direction - The company is focused on recovery efforts at Copler, including recovery of missing colleagues, containment efforts, and remediation planning [4][5] - Future plans include the construction of a long-term storage facility for displaced heap leach material and the permanent closure of the heap leach pad [17] - The sulfide plant is anticipated to initially process more than 700,000 ounces of gold from sulfide stockpiles while remediation work is completed [18] Management's Comments on Operating Environment and Future Outlook - Management expressed condolences for the families affected by the Copler incident and emphasized the focus on recovery efforts [5] - The company is well-positioned to fund future remediation work with a solid liquidity position [18] - Management noted that it is too early to provide guidance on when the mine will restart, as it depends on the reinstatement of environmental permits [18][32] Other Important Information - The company recorded charges totaling $288 million related to the Copler incident, including future remediation costs and legal contingencies [19] - An impairment of $76 million was recorded for heap-leach inventory and $38 million for obsolete heap leach equipment [19] Q&A Session Summary Question: Does the remediation cost of $250 million to $300 million include care and maintenance costs? - Management confirmed that care and maintenance costs are around $17 million per quarter and will be considered going forward [11] Question: Was the winter program on the ice road successful? - Management reported a successful winter program, achieving better efficiency and outcomes than in previous years [24] Question: Are the remediation plans approved by the government? - Management indicated that the estimates are based on advanced engineering design and discussions with government stakeholders [37] Question: Will environmental permits be applied for during remediation? - Management stated that it is early to determine the exact pathway for permits and the timeline for operations [32] Question: Is there a concern regarding convertible notes related to the incident? - Management confirmed that there are no current concerns regarding the convertible notes related to the incident [46]