UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
(Mark One)
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended September 30, 2022March 31, 2023
or
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________to__________
Commission File Number: 001-35455
SSR MINING INC.
(Exact name of registrant as specified in its charter)
| | | | | | | | |
British Columbia (State or Other Jurisdiction of Incorporation or Organization) | | 98-0211014
(I.R.S. Employer Identification No.) |
| Suite 1300 - 6900 E. Layton Ave, Denver, Colorado, 80237 |
(Address of Principal Executive Offices)
Registrant’s telephone number, including area code (303) 292-1299
Securities registered pursuant to Section 12(b) of the Act.
| | | | | | | | |
| Title of each class | Trading symbol | Name of each exchange on which registered |
| Common shares without par value | SSRM | The Nasdaq Stock Market LLC |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12-b2 of the Exchange Act.
| | | | | | | | | | | | | | |
| Large accelerated filer | ☒ | | Accelerated filer | ☐ |
| Non-accelerated filer | ☐ | | Smaller reporting company | ☐ |
| | | Emerging growth company | ☐ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12-b2 of the Exchange Act). ☐ Yes ☒ No
There were 206,607,962206,519,830 common shares outstanding on OctoberMarch 31, 2022.2023.
TABLE OF CONTENTS
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| PART I - FINANCIAL INFORMATION |
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| PART II - OTHER INFORMATION |
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PART I - FINANCIAL INFORMATION
THIRDFIRST QUARTER 20222023 HIGHLIGHTS (dollars, except per share, per ounce and per pound amounts)
•Operating performance: Delivered thirdThe Company reported first quarter 2023 production of 106,919146,894 gold equivalent ounces and year-to date productionat cost of 441,164 gold equivalent ounces. Third quarter production costs were $1,099sales of $1,289 per gold equivalent ounce and AISC was $1,901all-in sustaining costs (“AISC”) of $1,693 per gold-equivalent ounce, with year-to-date production costs of $955 per gold equivalent ounceounce.(1) As expected, first quarter 2023 AISC reflects increased sustaining capital spend at Seabee related to deliveries over the winter road and AISC of $1,331 per gold equivalent ounce. (1)haul truck purchases at Marigold.
•Çöpler production restarted late September: At the end of the second quarter of 2022, Türkiye’s Ministry of Environment, Urbanization and Climate Change (“Ministry of Environment”) temporarily suspended operations at the Çöpler mine pending implementation of improvement initiatives requested as a result of a leak of leach solution on June 21, 2022. The Company completed these initiatives and received the required regulatory approvals from Türkiye’s Government authorities on September 22, 2022 and all operations were subsequently restarted at the Çöpler mine.
•Financial results: Attributable net lossincome in the thirdfirst quarter of 2023 was $25.8$29.8 million, or $0.12$0.14 per diluted share, and adjusted attributable net lossincome was $13.5$21.3 million, or $0.07$0.10 per diluted share. For the ninethree months ending September 30, 2022,March 31, 2023, operating cash flow was $42.8$3.0 million and free cash flow was $(73.4)$(56.3) million. (1)
•Capital returns: AtDuring the endfirst quarter of 2023, the third quarter, SSR Mining hadCompany returned $144.4 $19.6 million to shareholders, in 2022, including $44.4which includes $14.4 million in dividends and $100.0$5.2 million in share repurchases throughrepurchases. Since the cancellationinception of 6,053,126 shares. In addition, the Board declaredCompany’s Normal Course Issuer Bid (“NCIB”) program on June 20, 2022, the Company has purchased a quarterly cash dividendtotal of $0.076,401,297 shares at an average price of $16.44 per share to be payable on December 19, 2022.representing approximately $105.2 million in total returns as of March 31, 2023.
•Balance sheet and financial strength: At the endAs of the third quarter,March 31, 2023, the Company had a cash and cash equivalents balance of $748.5$561.8 million after $17.8 after returning $19.6 million in scheduled debt repayments, $85.4 million in share repurchases, and $14.3 million in dividends to shareholders during the quarter.and making $17.8 in debt repayments.
•CompletedDelivered strong near-mine exploration results at Puna: The Company continued to showcase its global exploration platform with the sale ofpositive exploration update from the Pitarrilla project: On July 6,Puna operations in Argentina during the first quarter. The 2022 exploration program focused on resource expansion, discovery and reconciliation drilling at Chinchillas and was the Company announcedfirst exploration drilling completed at the closing ofproperty since 2016. The positive results highlight the sale of the Pitarrilla projectpotential for extensions to Endeavour Silver following receipt of all required regulatory approvals and satisfaction of customary closing conditions. As consideration for the sale, SSR Mining received $35.0 million in cash, $35.0 million(2) in common shares of Endeavour Silver, and a 1.25% net smelter return royalty on the Pitarrilla property. The sale was originally announced on January 13, 2022.Puna’s current Mineral Reserve life.
•Consolidated ownership of the Çöpler District:2022 ESG and Sustainability Report: Subsequent to the quarter,On April 14, 2023, the Company announced an agreement to acquire an additional 30% ownership interestpublished its fifth annual ESG and Sustainability Report. The report provided a comprehensive overview of how the Company manages sustainability across the business, detailed specific achievements from 2022 and outlined commitments made for 2023. Information included in the Kartaltepe Mining Joint Venture at the Çöpler District from partner Lidya Mining for total consideration of $150.0 million in cash, streamlining operating, financialCompany’s ESG and exploration activities across the Ҫӧpler District while creating tangible synergies. The transactionSustainability Report is expected to be completed in the fourth quarter of 2022. Upon completion of the transaction, SSR Mining will own 80% of the entirety of the Çöpler District.not incorporated by reference into this Form 10-Q.
(1) AISC, free cash flow, adjusted attributable net income (loss), and adjusted attributable net income (loss) per diluted share are non-GAAP financial measures. For explanations of these measures and reconciliations to the most comparable financial measure calculated under U.S. GAAP, please see the discussion under "Non-GAAP Financial Measures" in Part I, Item 2, Management’s Discussion and Analysis herein.
(2) The fair value of the common shares of Endeavour Silver on July 6, 2022 was $25.6 million. See Note 3 to the Condensed Consolidated Financial Statements for more information.
ITEM 1. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
SSR Mining Inc.
Condensed Consolidated Statements of Operations
(unaudited, in thousands except per share)
| | | Three Months Ended September 30, | | Nine Months Ended
September 30, | | Three Months Ended March 31, |
| | 2022 | | 2021 | | 2022 | | 2021 | | 2023 | | 2022 |
| Revenue | Revenue | $ | 166,627 | | | $ | 322,846 | | | $ | 841,656 | | | $ | 1,066,280 | | Revenue | $ | 314,614 | | | $ | 355,446 | |
| Operating Costs and Expenses: | | |
| Production costs | | 106,452 | | | 154,521 | | | 424,900 | | | 483,330 | | |
| Operating costs and expenses: | | Operating costs and expenses: | |
Cost of sales (1) | | Cost of sales (1) | | 199,297 | | | 153,520 | |
| Depreciation, depletion, and amortization | Depreciation, depletion, and amortization | | 21,555 | | | 51,958 | | | 134,145 | | | 161,731 | | Depreciation, depletion, and amortization | | 47,095 | | | 58,742 | |
| General and administrative expense | General and administrative expense | | 12,714 | | | 11,970 | | | 48,421 | | | 34,936 | | General and administrative expense | | 18,541 | | | 16,239 | |
| Exploration, evaluation, and reclamation costs | Exploration, evaluation, and reclamation costs | | 18,320 | | | 11,058 | | | 39,422 | | | 32,310 | | Exploration, evaluation, and reclamation costs | | 12,698 | | | 9,858 | |
| Care and maintenance | | 41,800 | | | — | | | 41,800 | | | — | | |
| Impairment of long-lived and other assets | | — | | | 5 | | | — | | | 22,354 | | |
| | Other operating expenses, net | Other operating expenses, net | | 1,479 | | | 675 | | | 2,696 | | | 6,060 | | Other operating expenses, net | | (2) | | | 1,217 | |
| Gain on sale of assets | | (629) | | | — | | | (629) | | | — | | |
| | Operating income (loss) | Operating income (loss) | | (35,064) | | | | 92,659 | | | | 150,901 | | | | 325,559 | | Operating income (loss) | | 36,985 | | | | 115,870 | |
| Other income (expense): | Other income (expense): | | Other income (expense): | |
| Interest expense | Interest expense | | (4,541) | | | (4,732) | | | (13,109) | | | (14,567) | | Interest expense | | (5,060) | | | (4,295) | |
| Other income (expense) | Other income (expense) | | 9,153 | | | (6,853) | | | 6,389 | | | (8,646) | | Other income (expense) | | 13,052 | | | (367) | |
| Foreign exchange gain (loss) | Foreign exchange gain (loss) | | (11,577) | | | (1,595) | | | (19,733) | | | (2,904) | | Foreign exchange gain (loss) | | (13,185) | | | (3,287) | |
| Total other income (expense) | Total other income (expense) | | (6,965) | | | | (13,180) | | | | (26,453) | | | | (26,117) | | Total other income (expense) | | (5,193) | | | | (7,949) | |
| Income (loss) before income and mining taxes | Income (loss) before income and mining taxes | | (42,029) | | | | 79,479 | | | | 124,448 | | | | 299,442 | | Income (loss) before income and mining taxes | | 31,792 | | | | 107,921 | |
| Income and mining tax benefit (expense) | Income and mining tax benefit (expense) | | 13,808 | | | (14,285) | | | (8,775) | | | (27,483) | | Income and mining tax benefit (expense) | | (2,788) | | | (31,562) | |
| Equity income (loss) of affiliates | Equity income (loss) of affiliates | | (151) | | | (1,015) | | | (422) | | | (2,536) | | Equity income (loss) of affiliates | | — | | | (253) | |
| Net income (loss) | Net income (loss) | | (28,372) | | | | 64,179 | | | | 115,251 | | | | 269,423 | | Net income (loss) | | 29,004 | | | | 76,106 | |
| Net loss (income) attributable to non-controlling interest | Net loss (income) attributable to non-controlling interest | | 2,579 | | | (7,119) | | | (14,995) | | | (28,782) | | Net loss (income) attributable to non-controlling interest | | 809 | | | (8,543) | |
| Net income (loss) attributable to SSR Mining shareholders | Net income (loss) attributable to SSR Mining shareholders | $ | (25,793) | | | $ | 57,060 | | | $ | 100,256 | | | $ | 240,641 | | Net income (loss) attributable to SSR Mining shareholders | $ | 29,813 | | | $ | 67,563 | |
| | | | | | | | | | | | | |
| Net income (loss) per share attributable to SSR Mining shareholders | Net income (loss) per share attributable to SSR Mining shareholders | | Net income (loss) per share attributable to SSR Mining shareholders | |
| Basic | Basic | $ | (0.12) | | | $ | 0.27 | | | $ | 0.48 | | | $ | 1.11 | | Basic | $ | 0.14 | | | $ | 0.32 | |
| Diluted | Diluted | $ | (0.12) | | | $ | 0.26 | | | $ | 0.46 | | | $ | 1.06 | | Diluted | $ | 0.14 | | | $ | 0.31 | |
The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.
SSR Mining Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited, in thousands)
| | | | Nine Months Ended September 30, | | Three Months Ended March 31, |
| | | 2022 | | 2021 | | 2023 | | 2022 |
| Operating activities | Operating activities | | | | | | Operating activities | | | | | |
| Net income | Net income | $ | 115,251 | | | $ | 269,423 | | Net income | $ | 29,004 | | | $ | 76,106 | |
| Adjustments for: | Adjustments for: | | | Adjustments for: | | |
| Depreciation, depletion, and amortization | Depreciation, depletion, and amortization | | 134,145 | | | 161,731 | | Depreciation, depletion, and amortization | | 47,095 | | | 58,742 | |
| Amortization of debt discount | Amortization of debt discount | | 725 | | | 703 | | Amortization of debt discount | | 235 | | | 227 | |
| Reclamation costs | | 4,436 | | | 3,616 | | |
| Reclamation accretion expense | | Reclamation accretion expense | | 2,173 | | | 1,311 | |
| Deferred income taxes | Deferred income taxes | | (70,340) | | | (34,410) | | Deferred income taxes | | (1,977) | | | (16,404) | |
| Stock-based compensation | Stock-based compensation | | 3,354 | | | 4,831 | | Stock-based compensation | | 2,047 | | | 4,849 | |
| Equity (income) loss of affiliates | Equity (income) loss of affiliates | | 422 | | | 2,536 | | Equity (income) loss of affiliates | | — | | | 253 | |
| Unrealized loss (gain) on derivative instruments | Unrealized loss (gain) on derivative instruments | | 645 | | | (4,936) | | Unrealized loss (gain) on derivative instruments | | — | | | (364) | |
| Change in fair value of marketable securities | Change in fair value of marketable securities | | 3,836 | | | 6,472 | | Change in fair value of marketable securities | | (1,866) | | | 923 | |
| Non-cash fair value adjustment on acquired inventories | Non-cash fair value adjustment on acquired inventories | | 8,283 | | | 49,205 | | Non-cash fair value adjustment on acquired inventories | | 3,623 | | | 4,540 | |
| Loss (gain) on sale of mineral properties, plant and equipment | Loss (gain) on sale of mineral properties, plant and equipment | | 1,213 | | | (462) | | Loss (gain) on sale of mineral properties, plant and equipment | | 240 | | | 584 | |
| Impairment of long-lived and other assets | | — | | | 22,354 | | |
| Non-cash care and maintenance | | 10,733 | | | — | | |
| | Change in fair value of deferred consideration | | Change in fair value of deferred consideration | | 2,085 | | | — | |
| Loss (gain) on foreign exchange | | Loss (gain) on foreign exchange | | 8,210 | | | — | |
| Net change in operating assets and liabilities | Net change in operating assets and liabilities | | (169,904) | | | (56,683) | | Net change in operating assets and liabilities | | (87,902) | | | (68,580) | |
| Net cash provided by operating activities | Net cash provided by operating activities | | 42,799 | | | | 424,380 | | Net cash provided by operating activities | | 2,967 | | | | 62,187 | |
| | | | | | | | | | | |
| Investing activities | Investing activities | | | Investing activities | | |
| Additions to mineral properties, plant and equipment | Additions to mineral properties, plant and equipment | | (116,155) | | | (128,924) | | Additions to mineral properties, plant and equipment | | (59,242) | | | (34,492) | |
| | Purchases of marketable securities | Purchases of marketable securities | | (7,989) | | | (8,013) | | Purchases of marketable securities | | (484) | | | — | |
| Proceeds from sale of marketable securities | | 10,736 | | | 4,592 | | |
| Proceeds from repayment of note receivable | | 8,358 | | | — | | |
| Proceeds from sale of mineral properties, plant and equipment | | 35,067 | | | 2,500 | | |
| Net proceeds from sale of marketable securities | | Net proceeds from sale of marketable securities | | 7,845 | | | 6,607 | |
| | Other investing activities | | — | | | (654) | | |
| Net cash used in investing activities | | (69,983) | | | | (130,499) | | |
| | Net cash provided by (used in) investing activities | | Net cash provided by (used in) investing activities | | (51,881) | | | | (27,885) | |
| | | | | | | | | | | |
| Financing activities | Financing activities | | | Financing activities | | |
| Repayment of debt, principal | Repayment of debt, principal | | (53,359) | | | (52,500) | | Repayment of debt, principal | | (17,802) | | | (17,781) | |
| Repurchase of common shares | Repurchase of common shares | | (100,040) | | | (148,074) | | Repurchase of common shares | | (5,197) | | | — | |
| Proceeds from exercise of stock options | Proceeds from exercise of stock options | | 2,628 | | | 7,476 | | Proceeds from exercise of stock options | | 208 | | | 2,398 | |
| Principal payments on finance leases | Principal payments on finance leases | | (9,126) | | | (7,677) | | Principal payments on finance leases | | (950) | | | (7,293) | |
| Non-controlling interest dividend | Non-controlling interest dividend | | (34,520) | | | (55,464) | | Non-controlling interest dividend | | — | | | (30,773) | |
| Dividends paid | Dividends paid | | (44,411) | | | (32,684) | | Dividends paid | | (14,448) | | | — | |
| Other financing activities | | 194 | | | (1,466) | | |
| Net cash used in financing activities | | (238,634) | | | | (290,389) | | |
| | Net cash provided by (used in) financing activities | | Net cash provided by (used in) financing activities | | (38,189) | | | | (53,449) | |
| Effect of foreign exchange rate changes on cash and cash equivalents | Effect of foreign exchange rate changes on cash and cash equivalents | | (3,002) | | | | (1,102) | | Effect of foreign exchange rate changes on cash and cash equivalents | | (6,191) | | | | 583 | |
| Net increase (decrease) in cash, cash equivalents, and restricted cash | Net increase (decrease) in cash, cash equivalents, and restricted cash | | (268,820) | | | | 2,390 | | Net increase (decrease) in cash, cash equivalents, and restricted cash | | (93,294) | | | (18,564) | |
| Cash, cash equivalents, and restricted cash beginning of period | Cash, cash equivalents, and restricted cash beginning of period | | 1,052,865 | | | | 895,921 | | Cash, cash equivalents, and restricted cash beginning of period | | 689,106 | | | | 1,052,865 | |
| Cash, cash equivalents, and restricted cash end of period | Cash, cash equivalents, and restricted cash end of period | $ | 784,045 | | | $ | 898,311 | | Cash, cash equivalents, and restricted cash end of period | $ | 595,812 | | | $ | 1,034,301 | |
| |
SSR Mining Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited, in thousands)
| | | | Nine Months Ended September 30, | | Three Months Ended March 31, |
| | 2022 | | 2021 | | 2023 | | 2022 |
| Reconciliation of cash, cash equivalents, and restricted cash: | Reconciliation of cash, cash equivalents, and restricted cash: | | | | Reconciliation of cash, cash equivalents, and restricted cash: | | | |
| Cash and cash equivalents | Cash and cash equivalents | $ | 748,476 | | | $ | 863,016 | | Cash and cash equivalents | $ | 561,783 | | | $ | 998,986 | |
| Restricted cash | Restricted cash | | 35,569 | | | 35,295 | | Restricted cash | | 34,029 | | | 35,315 | |
| Total cash, cash equivalents, and restricted cash | Total cash, cash equivalents, and restricted cash | $ | 784,045 | | | $ | 898,311 | | Total cash, cash equivalents, and restricted cash | $ | 595,812 | | | $ | 1,034,301 | |
The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.
SSR Mining Inc.
Condensed Consolidated Balance Sheets
(unaudited, in thousands)
| | | September 30, 2022 | | December 31, 2021 | | March 31, 2023 | | December 31, 2022 |
| ASSETS | ASSETS | | | | | | ASSETS | | | | | |
| Cash and cash equivalents | Cash and cash equivalents | $ | 748,476 | | | $ | 1,017,562 | | Cash and cash equivalents | $ | 561,783 | | | $ | 655,453 | |
| Marketable securities | Marketable securities | | 53,830 | | | 40,431 | | Marketable securities | | 33,709 | | | 40,280 | |
| Trade and other receivables | Trade and other receivables | | 136,820 | | | 121,356 | | Trade and other receivables | | 161,748 | | | 117,675 | |
| Inventories | Inventories | | 468,262 | | | 389,416 | Inventories | | 519,194 | | | 501,607 |
| Restricted cash | | Restricted cash | | 34,029 | | | 33,653 |
| Prepaids and other current assets | Prepaids and other current assets | | 23,348 | | | 31,549 | | Prepaids and other current assets | | 31,845 | | | 27,767 | |
| Total current assets | Total current assets | | 1,430,736 | | | | 1,600,314 | Total current assets | | 1,342,308 | | | | 1,376,435 |
| | | | | | | |
| Mineral properties, plant and equipment, net | Mineral properties, plant and equipment, net | | 3,190,936 | | | 3,249,764 | Mineral properties, plant and equipment, net | | 3,549,020 | | | 3,549,446 |
| Inventories | Inventories | | 214,620 | | | 221,617 | | Inventories | | 229,733 | | | 218,999 | |
| Restricted cash | | 35,569 | | | 35,303 | |
| | Equity method investments | Equity method investments | | 4,496 | | | 4,918 | | Equity method investments | | 395 | | | 395 | |
| Goodwill | Goodwill | | 49,786 | | | 49,786 | Goodwill | | 49,786 | | | 49,786 |
| Deferred income tax assets | Deferred income tax assets | | 6,119 | | | 8,501 | | Deferred income tax assets | | 1,915 | | | 1,915 | |
| Other non-current assets | Other non-current assets | | 62,996 | | | 41,235 | Other non-current assets | | 61,646 | | | 57,681 |
| Total assets | Total assets | $ | 4,995,258 | | | $ | 5,211,438 | | Total assets | $ | 5,234,803 | | | $ | 5,254,657 | |
| | | | | | | | | | | |
| LIABILITIES | LIABILITIES | | | LIABILITIES | | |
| Accounts payable | Accounts payable | $ | 43,840 | | | $ | 34,844 | | Accounts payable | $ | 80,209 | | | $ | 78,929 | |
| Accrued liabilities and other | Accrued liabilities and other | | 110,162 | | | 165,108 | | Accrued liabilities and other | | 113,476 | | | 124,654 | |
| Finance lease liabilities | Finance lease liabilities | | 3,828 | | | 12,439 | | Finance lease liabilities | | 3,883 | | | 3,872 | |
| Current portion of debt | Current portion of debt | | 89,251 | | | 71,491 | | Current portion of debt | | 53,394 | | | 71,797 | |
| Total current liabilities | Total current liabilities | | 247,081 | | | | 283,882 | | Total current liabilities | | 250,962 | | | | 279,252 | |
| | | | | | | |
| Debt | Debt | | 226,259 | | | 295,493 | | Debt | | 226,745 | | | 226,510 | |
| Finance lease liabilities | Finance lease liabilities | | 103,422 | | | 105,965 | | Finance lease liabilities | | 101,430 | | | 102,434 | |
| Reclamation liabilities | Reclamation liabilities | | 140,382 | | | 122,660 | | Reclamation liabilities | | 155,781 | | | 153,972 | |
| Deferred income tax liabilities | Deferred income tax liabilities | | 260,297 | | | 338,788 | | Deferred income tax liabilities | | 340,423 | | | 342,401 | |
| Other non-current liabilities | Other non-current liabilities | | 23,239 | | | 12,133 | | Other non-current liabilities | | 21,651 | | | 23,889 | |
| Total liabilities | Total liabilities | | 1,000,680 | | | | 1,158,921 | | Total liabilities | | 1,096,992 | | | | 1,128,458 | |
| | | | | | | | | |
| EQUITY | EQUITY | | | EQUITY | | |
| Common shares – unlimited authorized common shares with no par value; 206,599 and 211,879 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively | | 3,056,924 | | | 3,140,189 | | |
| Common shares – unlimited authorized common shares with no par value; 206,520 and 206,653 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively | | Common shares – unlimited authorized common shares with no par value; 206,520 and 206,653 shares issued and outstanding as of March 31, 2023 and December 31, 2022, respectively | | 3,055,062 | | | 3,057,920 | |
| Retained earnings (deficit) | Retained earnings (deficit) | | 442,323 | | | 397,667 | | Retained earnings (deficit) | | 537,096 | | | 521,817 | |
| SSR Mining’s shareholders’ equity | SSR Mining’s shareholders’ equity | | 3,499,247 | | | | 3,537,856 | | SSR Mining’s shareholders’ equity | | 3,592,158 | | | | 3,579,737 | |
| Non-controlling interest | Non-controlling interest | | 495,331 | | | 514,661 | | Non-controlling interest | | 545,653 | | | | 546,462 | |
| Total equity | Total equity | | 3,994,578 | | | | 4,052,517 | | Total equity | | 4,137,811 | | | 4,126,199 | |
| Total liabilities and equity | Total liabilities and equity | $ | 4,995,258 | | | $ | 5,211,438 | | Total liabilities and equity | $ | 5,234,803 | | | $ | 5,254,657 | |
The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.
SSR Mining Inc.
Condensed Consolidated Statement of Changes in Equity
(unaudited, in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Common shares | | | | | | | | | | | | |
| | Number of shares | | Amount | | Retained earnings (accumulated deficit) | | Total equity attributable to equity holders of SSR Mining | | Non-controlling interest | | Total equity |
| Balance as of December 31, 2021 | 211,879 | | | $ | 3,140,189 | | | $ | 397,667 | | | $ | 3,537,856 | | | $ | 514,661 | | | $ | 4,052,517 | |
| Exercise of stock options | 166 | | | | 2,433 | | | | — | | | | 2,433 | | | | — | | | | 2,433 | |
| Settlement of restricted share units (RSUs) | 512 | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Equity-settled stock-based compensation | — | | | | 823 | | | | — | | | | 823 | | | | — | | | | 823 | |
| Dividends declared to equity holders of SSR Mining | — | | | | — | | | | (15,015) | | | | (15,015) | | | | — | | | | (15,015) | |
| Dividends paid to non-controlling interest | — | | | | — | | | | — | | | | — | | | | (30,773) | | | | (30,773) | |
| Net income (loss) | — | | | | — | | | | 67,563 | | | | 67,563 | | | | 8,543 | | | | 76,106 | |
| Balance as of March 31, 2022 | 212,557 | | | $ | 3,143,445 | | | $ | 450,215 | | | $ | 3,593,660 | | | $ | 492,431 | | | $ | 4,086,091 | |
| Repurchase of common shares | (798) | | | | (11,711) | | | | (2,956) | | | | (14,667) | | | | — | | | | (14,667) | |
| Exercise of stock options | 14 | | | | 242 | | | | — | | | | 242 | | | | — | | | | 242 | |
| Settlement of RSUs | 69 | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Equity-settled stock-based compensation | — | | | | 1,033 | | | | — | | | | 1,033 | | | | — | | | | 1,033 | |
| Dividends paid to equity holders of SSR Mining | — | | | | — | | | | (15,085) | | | | (15,085) | | | | — | | | | (15,085) | |
| Net income (loss) | — | | | | — | | | | 58,488 | | | | 58,488 | | | | 9,031 | | | | 67,519 | |
| Balance as of June 30, 2022 | 211,842 | | | $ | 3,133,009 | | | $ | 490,662 | | | $ | 3,623,671 | | | $ | 501,462 | | | $ | 4,125,133 | |
| Repurchase of common shares | (5,255) | | | | (77,138) | | | | (8,235) | | | | (85,373) | | | | — | | | | (85,373) | |
| Settlement of RSUs | 12 | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Equity-settled stock-based compensation | — | | | | 1,053 | | | | — | | | | 1,053 | | | | — | | | | 1,053 | |
| Dividends paid to equity holders of SSR Mining | — | | | | — | | | | (14,311) | | | | (14,311) | | | | — | | | | (14,311) | |
| Dividends paid to non-controlling interest | — | | | | — | | | | — | | | | — | | | | (3,747) | | | | (3,747) | |
| Contributions from non-controlling interest | — | | | | — | | | | — | | | | — | | | | 195 | | | | 195 | |
| Net income (loss) | — | | | | — | | | | (25,793) | | | | (25,793) | | | | (2,579) | | | | (28,372) | |
| Balance as of September 30, 2022 | 206,599 | | | | 3,056,924 | | | | 442,323 | | | | 3,499,247 | | | | 495,331 | | | | 3,994,578 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Common shares | | | | | | | | | | | | |
| | Number of shares | | Amount | | Retained earnings (accumulated deficit) | | Total equity attributable to shareholders of SSR Mining | | Non-controlling interest | | Total equity |
| Balance as of December 31, 2022 | 206,653 | | | $ | 3,057,920 | | | $ | 521,817 | | | $ | 3,579,737 | | | $ | 546,462 | | | $ | 4,126,199 | |
| Repurchase of common shares | (348) | | | | (5,111) | | | | (86) | | | | (5,197) | | | | — | | | | (5,197) | |
| Exercise of stock options | 17 | | | | 216 | | | | | | | 216 | | | | | | | 216 | |
| Settlement of restricted share units (RSUs) | 198 | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Equity-settled stock-based compensation | — | | | | 2,037 | | | | — | | | | 2,037 | | | | — | | | | 2,037 | |
| Dividends paid to shareholders of SSR Mining | — | | | | — | | | | (14,448) | | | | (14,448) | | | | — | | | | (14,448) | |
| | | | | | | | | | | | | | | | |
| Net income (loss) | — | | | | — | | | | 29,813 | | | | 29,813 | | | | (809) | | | | 29,004 | |
| Balance as of March 31, 2023 | 206,520 | | | $ | 3,055,062 | | | $ | 537,096 | | | $ | 3,592,158 | | | $ | 545,653 | | | $ | 4,137,811 | |
SSR Mining Inc.
Condensed Consolidated Statement of Changes in Equity
(unaudited, in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Common shares | | | | | | | | | | | | | | | | |
| | Number of shares | | Amount | | Retained earnings (accumulated deficit) | | Total equity attributable to equity holders of SSR Mining | | Non-controlling interest | | Total equity | | | Contingently redeemable shares |
| Balance as of December 31, 2020 | 219,607 | | | $ | 3,242,821 | | | $ | 92,077 | | | $ | 3,334,898 | | | $ | 512,279 | | | $ | 3,847,177 | | | | $ | 3,311 | |
| Exercise of stock options | 364 | | | | 2,750 | | | | — | | | | 2,750 | | | | — | | | | 2,750 | | | | | — | |
| Settlement of RSUs and PSUs | 92 | | | | 89 | | | | — | | | | 89 | | | | — | | | | 89 | | | | | — | |
| Equity-settled stock-based compensation | — | | | | 1,037 | | | | — | | | | 1,037 | | | | — | | | | 1,037 | | | | | — | |
| Transfer of cash-settled RSUs | — | | | | 8,802 | | | | — | | | | 8,802 | | | | — | | | | 8,802 | | | | | — | |
| Reclassification of contingently redeemable shares | — | | | | 3,311 | | | | — | | | | 3,311 | | | | — | | | | 3,311 | | | | | (3,311) | |
| Dividends paid to equity holders of SSR Mining | — | | | | — | | | | (10,992) | | | | (10,992) | | | | — | | | | (10,992) | | | | | — | |
| Dividends paid to non-controlling interest | — | | | | — | | | | — | | | | — | | | | (38,084) | | | | (38,084) | | | | | — | |
| Other | — | | | | — | | | | (18) | | | | (18) | | | | — | | | | (18) | | | | | — | |
| Net income (loss) | — | | | | — | | | | 108,861 | | | | 108,861 | | | | 18,590 | | | | 127,451 | | | | | — | |
| Balance as of March 31, 2021 | 220,063 | | | $ | 3,258,810 | | | $ | 189,928 | | | $ | 3,448,738 | | | $ | 492,785 | | | $ | 3,941,523 | | | | $ | — | |
| Repurchase of common shares | (4,000) | | | | (58,654) | | | | (11,600) | | | | (70,254) | | | | — | | | | (70,254) | | | | | — | |
| Exercise of stock options | 79 | | | | 850 | | | | — | | | | 850 | | | | — | | | | 850 | | | | | — | |
| Settlement of RSUs | 157 | | | | 406 | | | | — | | | | 406 | | | | — | | | | 406 | | | | | — | |
| Equity-settled stock-based compensation | — | | | | 1,594 | | | | — | | | | 1,594 | | | | — | | | | 1,594 | | | | | — | |
| Dividends paid to equity holders of SSR Mining | — | | | | — | | | | (10,974) | | | | (10,974) | | | | — | | | | (10,974) | | | | | — | |
| Other | — | | | | — | | | | (204) | | | | (204) | | | | — | | | | (204) | | | | | — | |
| Net income (loss) | — | | | | — | | | | 74,719 | | | | 74,719 | | | | 3,073 | | | | 77,792 | | | | | — | |
| Balance as of June 30, 2021 | 216,299 | | | $ | 3,203,006 | | | $ | 241,869 | | | $ | 3,444,875 | | | $ | 495,858 | | | $ | 3,940,733 | | | | $ | — | |
| Repurchase of common shares | (4,801) | | | | (70,398) | | | | (7,422) | | | | (77,820) | | | | — | | | | (77,820) | | | | | — | |
| Exercise of stock options | 309 | | | | 3,877 | | | | — | | | | 3,877 | | | | — | | | | 3,877 | | | | | — | |
| Settlement of RSUs and PSUs | — | | | | (78) | | | | — | | | | (78) | | | | — | | | | (78) | | | | | — | |
| Transfer of equity-settled RSUs | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | | — | |
SSR Mining Inc.
Condensed Consolidated Statement of Changes in Equity
(unaudited, in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Equity-settled share-based compensation | — | | | | 1,610 | | | | — | | | | 1,610 | | | | — | | | | 1,610 | | | | | — | |
| Dividends paid to equity holders of SSR Mining | — | | | | — | | | | (10,718) | | | | (10,718) | | | | — | | | | (10,718) | | | | | — | |
| Dividends paid to non-controlling interest | — | | | | — | | | | — | | | | — | | | | (17,380) | | | | (17,380) | | | | | — | |
| Other | — | | | | — | | | | (192) | | | | (192) | | | | 180 | | | | (12) | | | | | — | |
| Net income (loss) | — | | | | — | | | | 57,060 | | | | 57,060 | | | | 7,119 | | | | 64,179 | | | | | — | |
| Balance as of September 30, 2021 | 211,807 | | | | 3,138,017 | | | | 280,597 | | | | 3,418,614 | | | | 485,777 | | | | 3,904,391 | | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Common shares | | | | | | | | | | | | |
| | Number of shares | | Amount | | Retained earnings (accumulated deficit) | | Total equity attributable to shareholders of SSR Mining | | Non-controlling interest | | Total equity |
| Balance as of December 31, 2021 | 211,879 | | | $ | 3,140,189 | | | $ | 397,667 | | | $ | 3,537,856 | | | $ | 514,661 | | | $ | 4,052,517 | |
| Exercise of stock options | 166 | | | | 2,433 | | | | | | | 2,433 | | | | — | | | | 2,433 | |
| Settlement of RSUs | 512 | | | | — | | | | — | | | | — | | | | — | | | | — | |
| Equity-settled stock-based compensation | | | | 823 | | | | — | | | | 823 | | | | — | | | | 823 | |
| Dividends declared to shareholders of SSR Mining | — | | | | — | | | | (15,015) | | | | (15,015) | | | | — | | | | (15,015) | |
| Dividends paid to non-controlling interest | — | | | | — | | | | — | | | | — | | | | (30,773) | | | | (30,773) | |
| Net income (loss) | — | | | | — | | | | 67,563 | | | | 67,563 | | | | 8,543 | | | | 76,106 | |
| Balance as of March 31, 2022 | 212,557 | | | $ | 3,143,445 | | | $ | 450,215 | | | $ | 3,593,660 | | | $ | 492,431 | | | $ | 4,086,091 | |
The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.
SSR Mining Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)
1.THE COMPANY
SSR Mining Inc. and its subsidiaries (collectively, "SSR Mining," or the "Company”) is incorporated under the laws of the Province of British Columbia, Canada. The Company's common shares are listed on the Toronto Stock Exchange (TSX) in Canada and the Nasdaq Global Select Market (Nasdaq) in the U.S. under the symbol "SSRM" and the Australian Securities Exchange (ASX) in Australia under the symbol "SSR."
SSR Mining is a precious metals mining company with four producing assets located in the United States, Türkiye, Canada and Argentina. The Company is principally engaged in the operation, acquisition, exploration and development of precious metal resource properties located in Türkiye and the Americas. The Company produces gold doré as well as copper, silver, lead and zinc concentrates. The Company’s diversified asset portfolio is comprised of high-margin, long-life assets located in some of the world's most prolific metal districts.Thedistricts. The Company’s focus is on safe, profitable gold and silver production from its Çöpler Gold Mine ("Çöpler") in Erzincan, Türkiye, Marigold mine ("Marigold") in Nevada, USA, Seabee Gold Operation ("Seabee") in Saskatchewan, Canada, and Puna Operations ("Puna") in Jujuy, Argentina, and to advance, as market and project conditions permit, its principal development projects and commercial production.projects.
In December 2021, Türkiye beganSSR Mining is incorporated under the move to change its internationally recognized official name in English from Turkey to Türkiye. In June 2022, the United Nations announced it would recognize the new name. The Company is pleased to adopt the new name.
At the endlaws of the second quarterProvince of 2022, Türkiye’s Ministry of Environment, UrbanizationBritish Columbia, Canada. The Company's common shares are listed on the Toronto Stock Exchange (“TSX”) in Canada and Climate Changethe Nasdaq Global Select Market (“Ministry of Environment”Nasdaq”) temporarily suspended operations at the Çöpler mine pending implementation of improvement initiatives requested as a result of a leak of leach solution on June 21, 2022. The Company completed these initiatives and received the required regulatory approvals from Türkiye’s Government authorities on September 22, 2022 and all operations were subsequently restarted at the Çöpler mine. During the temporary suspension, Care and maintenance expense was recorded in the Statements of Operations which represents direct costsU.S. under the symbol "SSRM" and depreciation incurred at Çöpler.
2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Risks and Uncertainties
As a mining company, the revenue, profitability and future rate of growth of the Company are substantially dependent on the prevailing prices for gold, silver, lead and zinc. The prices of these metals are volatile and affected by many factors beyond the Company’s control, and there can be no assurance that commodity prices will not be subject to wide fluctuations in the future. A substantial or extended decline in commodity prices could have a material adverse effect on the Company’s financial position, results of operations, cash flows, access to capital and the quantities of reserves that the Company can economically produce. The carrying value of the Company’s Mineral properties, plant and equipment; Inventories; Deferred income tax assets; and Goodwill are sensitive to the outlook for commodity prices. A decline in the Company’s price outlook could result in material impairment charges related to these assets. In addition, the Company maintains cash balances at banking institutions in various jurisdictions which may or may not have deposit insurance. The Company mitigates potential cash risk by maintaining bank accounts with credit-worthy financial institutions. Any loss incurred or a lack of access to such funds could have a significant adverse impact on the Company's financial condition, results of operations, and cash flows.
Basis of Presentation
The Condensed Consolidated Financial Statements have been prepared in accordance with the instructions to Form 10-Q and do not include all information and disclosures required by generally accepted accounting principles in the United States. Therefore, this information should be read in conjunction with SSR Mining Inc.’s Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 20212022 filed on February 23, 2022.22, 2023, as amended on Form 10-K/A filed on March 17, 2023, solely to correct a typographical error related to the date of the audit opinion (together, “Form 10-K”). The information furnished herein reflects all adjustments that are, in the opinion of management, necessary for a fair statement of the results for the interim periods reported. All such adjustments are, in the opinion of management, of a normal recurring nature. The results for the ninethree month period ended September 30, 2022,March 31, 2023, are not necessarily indicative of the results that may be expected for the year ending December 31, 2022.2023.
SSR Mining Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)
Reclassifications
Certain amounts and disclosures in prior years have been reclassified to conform to the current year presentation.
Recently Issued Accounting PronouncementsChanges to operating segments
In September 2022,During the Financial Accounting Standards Board (“FASB”) issued ASU 2022-04, “Liabilities - Supplier Finance Programs: Disclosurefirst quarter of Supplier Finance Program Obligations,” which makes changes to add certain disclosure requirements for a buyer in a supplier finance program. The amendments require a buyer that uses supplier finance programs to make annual disclosures about the program’s key terms, the balance sheet presentation of related amounts, the confirmed amount outstanding at the end of the period, and associated rollforward information. Only the amount outstanding at the end of the period must be disclosed in interim periods. The amendments are effective for all entities for fiscal years beginning after December 15, 2022 on a retrospective basis, including interim periods within those fiscal years, except for the requirement to disclose rollforward information, which is effective prospectively for fiscal years beginning after December 15, 2023. Early adoption is permitted upon issuance of the update. The provisions of this new pronouncement are being reviewed, but it is not expected this guidance will have a material impact on the Consolidated Financial Statements.
3.ACQUISITIONS AND DIVESTITURES
Acquisitions
On April 14, 2022,2023 the Company completedchanged the purchase of allway management internally reviews and evaluates operating performance and manages the issuedbusiness. The Company determined it has four reportable segments: Çöpler, Marigold, Seabee and outstanding common shares of Taiga Gold Corporation (“Taiga Gold”), which holds thePuna. The Company’s previous exploration, and evaluation stage resources in Saskatchewan, Canada in proximity to the Company’s Seabee mine and Fisher project. The transaction was accounted for as an asset acquisition for total consideration of $24.8 million. The total consideration was allocated to the assets acquired and liabilities assumed based on their estimated fair values on the acquisition date, which consisted primarily of cash and cash equivalents of $4.7 million, exploration and evaluation assets of $27.8 million, and a related deferred tax liability of $7.5 million.
Divestitures
On July 6, 2022, the Company completed the sale of the Pitarrilla project in Durango, Mexico, included in the Exploration, evaluation and development properties are now managed by the nearest or adjacent reportable segment to Endeavour Silver Corp. ("Endeavour Silver"). The consideration received included cash of $35.0 million, Endeavour Silver common shares with a fair value on the closing date of $25.6 million (8,577,380 shares at $2.99 per share), and 1.25% net smelter returns royalty on the Pitarrilla property. A gain of $0.6 million was recognized,except for greenfield standalone prospects, which are included in Gain on sale of assets in the Consolidated Statements of Operations, calculated as the difference between the consideration receivedCorporate and carrying amount of the net assets.other.
Prior period segment information has been recast to conform with current period presentation.
SSR Mining Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)
4.3.OPERATING SEGMENTS
The Company currently has four producing mines which represent the Company’s reportable and a portfolio of precious and base metal dominant projects. Each individual operating mine site and the Company's exploration, evaluation and development properties are considered reportable segments. OperatingThe results of operating segments are reviewed by the Company's chief operating decision maker ("CODM")management to make decisions about resources to be allocated to the segments and to assess their performance.
The following tables provide a summary of financial information related to the Company's segments (in thousands):
| | | Three Months Ended September 30, 2022 | | Three Months Ended March 31, 2023 |
| | Çöpler | | Marigold | | Seabee | | Puna | | Exploration, evaluation and development properties | | Corporate and other (1) | | Total | | Çöpler | | Marigold | | Seabee | | Puna | | | Corporate and other (1) | | Total |
| Revenue | Revenue | $ | 4,245 | | $ | 84,216 | | $ | 33,346 | | $ | 44,820 | | $ | — | | $ | — | | $ | 166,627 | | Revenue | $ | 110,513 | | $ | 98,168 | | $ | 32,093 | | $ | 73,840 | | $ | | — | | $ | 314,614 | |
| Production costs | $ | 306 | | $ | 53,684 | | $ | 17,894 | | $ | 34,568 | | $ | — | | $ | — | | $ | 106,452 | | |
Cost of sales (2) | | Cost of sales (2) | $ | 74,646 | | $ | 54,541 | | $ | 23,265 | | $ | 46,845 | | $ | | — | | $ | 199,297 | |
| Depletion, depreciation, and amortization | Depletion, depreciation, and amortization | $ | 242 | | $ | 8,794 | | $ | 9,187 | | $ | 3,332 | | $ | — | | $ | — | | $ | 21,555 | | Depletion, depreciation, and amortization | $ | 22,651 | | $ | 8,574 | | $ | 8,987 | | $ | 6,883 | | $ | | — | | $ | 47,095 | |
| Exploration, evaluation, and reclamation costs | Exploration, evaluation, and reclamation costs | $ | 1,142 | | $ | 958 | | $ | 4,535 | | $ | 3,825 | | $ | 6,718 | | $ | 1,142 | | $ | 18,320 | | Exploration, evaluation, and reclamation costs | $ | 984 | | $ | 3,768 | | $ | 4,159 | | $ | 1,837 | | $ | | 1,950 | | $ | 12,698 | |
Care and maintenance expense (2) | | 41,800 | | | — | | | — | | | — | | | — | | | — | | | 41,800 | | |
| | Operating income | $ | (39,461) | | | 20,780 | | | 1,731 | | | 3,024 | | | (6,090) | | | (15,048) | | | (35,064) | | |
| | Operating income (loss) | | Operating income (loss) | $ | 11,496 | | $ | 31,284 | | $ | (4,318) | | $ | 18,223 | | $ | | (19,700) | | $ | 36,985 | |
| Capital expenditures | Capital expenditures | $ | 4,663 | | | 16,974 | | | 10,131 | | | 3,445 | | | — | | | — | | | 35,213 | | Capital expenditures | $ | 10,069 | | $ | 29,592 | | $ | 8,445 | | $ | 2,577 | | $ | | — | | $ | 50,683 | |
| Total assets as of September 30, 2022 | $ | 2,061,425 | | | 574,230 | | | 564,508 | | | 305,057 | | | 867,563 | | | 622,475 | | | 4,995,258 | | |
| Total assets as of March 31, 2023 | | Total assets as of March 31, 2023 | $ | 3,278,695 | | $ | 697,817 | | $ | 585,557 | | $ | 326,660 | | $ | | 346,074 | | $ | 5,234,803 | |
(1) Corporate and other consists of business activities that are not included within the reportable segments and provided for reconciliation purposes.
(2) CareExcludes depreciation, depletion, and maintenance expense represents direct costs and depreciation incurred at Çöpler during the temporary suspension of operations.amortization.
SSR Mining Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, 2021 |
| Çöpler | | Marigold | | Seabee | | Puna | | Exploration, evaluation and development properties | | Corporate and other (1) | | Total |
| Revenue | $ | 145,217 | | $ | 95,607 | | $ | 40,966 | | $ | 41,056 | | $ | — | | $ | — | | $ | 322,846 | |
| Production costs | $ | 65,773 | | $ | 50,281 | | $ | 15,077 | | $ | 23,390 | | $ | — | | $ | — | | $ | 154,521 | |
| Depletion, depreciation, and amortization | $ | 29,442 | | $ | 8,023 | | $ | 10,023 | | $ | 4,470 | | $ | — | | $ | — | | $ | 51,958 | |
| Exploration, evaluation, and reclamation costs | $ | 2,575 | | $ | 569 | | $ | 3,621 | | $ | 442 | | $ | 3,476 | | $ | 375 | | $ | 11,058 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| Impairment of long-lived and other assets | $ | — | | $ | — | | $ | — | | $ | — | | $ | 5 | | $ | — | | $ | 5 | |
| Operating income | $ | 46,880 | | $ | 36,734 | | $ | 12,253 | | $ | 12,599 | | $ | (3,481) | | $ | (12,326) | | $ | 92,659 | |
| Capital expenditures | $ | 7,875 | | $ | 8,126 | | $ | 10,926 | | $ | 2,385 | | $ | — | | $ | — | | $ | 29,312 | |
| Total assets as of September 30, 2021 | $ | 2,246,665 | | $ | 526,179 | | $ | 470,978 | | $ | 275,240 | | $ | 1,009,938 | | $ | 581,167 | | $ | 5,110,167 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended March 31, 2022 |
| Çöpler | | Marigold | | Seabee | | Puna | | | | Corporate and other (1) | | Total |
| Revenue | $ | 137,407 | | $ | 68,893 | | $ | 90,857 | | $ | 58,289 | | $ | | | — | | $ | 355,446 | |
Cost of sales (2) | $ | 62,584 | | $ | 38,735 | | $ | 16,410 | | $ | 35,791 | | $ | | | — | | $ | 153,520 | |
| Depletion, depreciation, and amortization | $ | 30,513 | | $ | 6,888 | | $ | 15,379 | | $ | 5,962 | | $ | | | — | | $ | 58,742 | |
| Exploration, evaluation, and reclamation costs | $ | 1,088 | | $ | 3,841 | | $ | 2,374 | | $ | 481 | | $ | | | 2,074 | | $ | 9,858 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| Operating income (loss) | $ | 42,498 | | $ | 19,428 | | $ | 56,691 | | $ | 15,906 | | $ | | | (18,653) | | $ | 115,870 | |
| Capital expenditures | $ | 6,870 | | $ | 18,235 | | $ | 12,914 | | $ | 2,213 | | $ | | | — | | $ | 40,232 | |
| Total assets as of March 31, 2022 | $ | 2,971,752 | | $ | 606,007 | | $ | 524,023 | | $ | 326,389 | | $ | | | 784,492 | | $ | 5,212,663 | |
| | | | | | | | | | | | | | |
(1) Corporate and other consists of business activities that are not included within the reportable segments and provided for reconciliation purposes.
SSR Mining Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Nine Months Ended September 30, 2022 |
| Çöpler | | Marigold | | Seabee | | Puna | | Exploration, evaluation and development properties | | Corporate and other (1) | | Total |
| Revenue | $ | 250,395 | | $ | 238,534 | | $ | 203,313 | | $ | 149,414 | | $ | — | | $ | — | | $ | 841,656 | |
| Production costs | $ | 125,985 | | $ | 142,841 | | $ | 53,319 | | $ | 102,755 | | $ | — | | $ | — | | $ | 424,900 | |
| Depletion, depreciation, and amortization | $ | 57,836 | | $ | 24,077 | | $ | 38,936 | | $ | 13,296 | | $ | — | | $ | — | | $ | 134,145 | |
| Exploration, evaluation, and reclamation costs | $ | 2,834 | | $ | 2,746 | | $ | 9,881 | | $ | 6,437 | | $ | 15,575 | | $ | 1,949 | | $ | 39,422 | |
Care and maintenance expense (2) | $ | 41,800 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 41,800 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| Operating income (loss) | $ | 20,270 | | $ | 68,869 | | $ | 101,167 | | $ | 26,693 | | $ | (14,948) | | $ | (51,150) | | $ | 150,901 | |
| Capital expenditures | $ | 15,449 | | | 50,540 | | | 31,897 | | | 7,920 | | | — | | | — | | | 105,806 | |
| Total assets as of September 30, 2022 | $ | 2,061,425 | | | 574,230 | | | 564,508 | | | 305,057 | | | 867,563 | | | 622,475 | | | 4,995,258 | |
(1)tenures, near or adjacent to the existing operations (near-mine) are included in the respective reportable segment and the greenfield standalone prospects are included in Corporate and other consists of business activities that are not included within the reportable segments and provided for reconciliation purposes.other.
(2) CareExcludes depreciation, depletion, and maintenance expense represents direct costs and depreciation incurred at Çöpler during the temporary suspension of operations.amortization.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Nine Months Ended September 30, 2021 |
| Çöpler | | Marigold | | Seabee | | Puna | | Exploration, evaluation and development properties | | Corporate and other (1) | | Total |
| Revenue | $ | 437,393 | | $ | 321,113 | | $ | 153,800 | | $ | 153,974 | | $ | — | | $ | — | | $ | 1,066,280 | |
| Production costs | $ | 201,927 | | $ | 155,582 | | $ | 47,105 | | $ | 78,716 | | $ | — | | $ | — | | $ | 483,330 | |
| Depletion, depreciation, and amortization | $ | 89,385 | | $ | 25,438 | | $ | 32,145 | | $ | 14,763 | | $ | — | | $ | — | | $ | 161,731 | |
| Exploration, evaluation, and reclamation costs | $ | 9,232 | | $ | 2,262 | | $ | 9,977 | | $ | 1,308 | | $ | 8,752 | | $ | 779 | | $ | 32,310 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| Impairment of long-lived and other assets | $ | — | | $ | — | | $ | — | | $ | — | | $ | 22,354 | | $ | — | | $ | 22,354 | |
| Operating income (loss) | $ | 131,746 | | $ | 137,934 | | $ | 64,554 | | $ | 57,411 | | $ | (31,106) | | $ | (34,980) | | $ | 325,559 | |
| Capital expenditures | $ | 27,629 | | $ | 43,412 | | $ | 33,493 | | $ | 7,906 | | $ | — | | $ | — | | $ | 112,440 | |
| Total assets as of September 30, 2021 | $ | 2,246,665 | | $ | 526,179 | | $ | 470,978 | | $ | 275,240 | | $ | 1,009,938 | | $ | 581,167 | | $ | 5,110,167 | |
(1) Corporate and other consists of business activities that are not included within the reportable segments and provided for reconciliation purposes.
SSR Mining Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)
Geographic Area
The following are non-current assets, excluding Goodwill, Restricted cash and Deferred income taxes, by location as of September 30, 2022March 31, 2023 and December 31, 20212022 (in thousands):
| | | September 30, 2022 | | December 31, 2021 | | March 31, 2023 | | December 31, 2022 |
| Türkiye | Türkiye | $ | 2,717,094 | | | $ | 2,744,707 | | Türkiye | $ | 3,054,035 | | | $ | 3,064,482 | |
| Canada | Canada | | 313,833 | | | 292,264 | | Canada | | 322,516 | | | 311,937 | |
| United States | United States | | 319,059 | | | 307,857 | | United States | | 340,851 | | | 321,423 | |
| Argentina | Argentina | | 121,995 | | | 123,834 | | Argentina | | 122,401 | | | 127,661 | |
| Mexico | Mexico | | 576 | | | 48,345 | | Mexico | | 503 | | | 536 | |
| Peru | Peru | | 491 | | | 527 | | Peru | | 488 | | | 482 | |
| Total | Total | $ | 3,473,048 | | | $ | 3,517,534 | | Total | $ | 3,840,794 | | | $ | 3,826,521 | |
The following is revenue information by geographic area based on the location for the three and nine months ended September 30March 31, 2023 and 2022 (in thousands):
| | | Three Months Ended September 30, | | Nine Months Ended September 30, | | Three Months Ended March 31, |
| | 2022 | | 2021 | | 2022 | | 2021 | | 2023 | | 2022 |
| Türkiye | Türkiye | $ | 4,245 | | | $ | 145,217 | | | $ | 250,395 | | | $ | 437,393 | | Türkiye | $ | 110,513 | | | $ | 137,407 | |
| Canada | Canada | | 33,346 | | | 40,966 | | | 203,313 | | | 153,800 | | Canada | | 32,093 | | | 90,857 | |
| United States | United States | | 84,216 | | | 95,607 | | | 238,534 | | | 321,113 | | United States | | 98,168 | | | 68,893 | |
| Argentina | Argentina | | 44,820 | | | 41,056 | | | 149,414 | | | 153,974 | | Argentina | | 73,840 | | | 58,289 | |
| Total | Total | $ | 166,627 | | | $ | 322,846 | | | $ | 841,656 | | | $ | 1,066,280 | | Total | $ | 314,614 | | | $ | 355,446 | |
SSR Mining Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)
5.4.REVENUE
The following table represents revenues by product (in thousands):
| | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, |
| | 2022 | | 2021 |
| Gold doré sales | | | | | |
| Çöpler | $ | 4,250 | | | $ | 139,895 | |
| Marigold | | 84,183 | | | | 95,593 | |
| Seabee | | 33,326 | | | | 40,948 | |
| Concentrate sales | | | | | |
| Puna | | 48,698 | | | | 43,930 | |
Other (1) | | | | | |
| Çöpler | | (5) | | | | 5,322 | |
| Marigold | | 33 | | | | 14 | |
| Seabee | | 20 | | | | 18 | |
| Puna | | (3,878) | | | | (2,874) | |
| Total | $ | 166,627 | | | $ | 322,846 | |
SSR Mining Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)
| | | Nine Months Ended September 30, | | Three Months Ended March 31, |
| | | 2022 | | 2021 | | 2023 | | 2022 |
| Gold doré sales | Gold doré sales | | | | Gold doré sales | | | |
| Çöpler | Çöpler | $ | 248,193 | | | $ | 432,071 | | Çöpler | $ | 109,646 | | | $ | 135,943 | |
| Marigold | Marigold | | 238,438 | | | 321,039 | | Marigold | | 98,132 | | | 68,852 | |
| Seabee | Seabee | | 203,216 | | | 153,721 | | Seabee | | 32,083 | | | 90,822 | |
| Concentrate sales | Concentrate sales | | | | | Concentrate sales | | | | |
| Puna | Puna | | 149,884 | | | 156,836 | | Puna | | 66,348 | | | 54,132 | |
Other (1) | Other (1) | | | | | Other (1) | | | | |
| Çöpler | Çöpler | | 2,202 | | | 5,322 | | Çöpler | | 867 | | | 1,464 | |
| Marigold | Marigold | | 96 | | | 74 | | Marigold | | 36 | | | 41 | |
| Seabee | Seabee | | 97 | | | 79 | | Seabee | | 10 | | | 35 | |
| Puna | Puna | | (470) | | | (2,862) | | Puna | | 7,492 | | | 4,157 | |
| Total | Total | $ | 841,656 | | | $ | 1,066,280 | | Total | $ | 314,614 | | | $ | 355,446 | |
(1) Other revenue includes:includes changes in the fair value of concentrate trade receivables due to changes in silver and base metal prices; and silver and copper by-product revenue arising from the production and sale of gold doré.
Revenue by metal
Revenue by metal type for the three and nine months ended September 30March 31, 2023 and 2022 are as follows (in thousands):
| | | Three Months Ended September 30, | | Nine Months Ended September 30, | | Three Months Ended March 31, |
| | 2022 | | 2021 | | 2022 | | 2021 | | 2023 | | 2022 |
| Gold | Gold | $ | 121,759 | | | $ | 276,436 | | | $ | 689,847 | | | $ | 906,831 | | Gold | $ | 239,861 | | | $ | 295,617 | |
| Silver | Silver | | 39,340 | | | 36,502 | | | | 112,043 | | | 131,840 | | Silver | | 49,115 | | | 33,965 | |
| Lead | Lead | | 8,365 | | | 4,918 | | | | 28,393 | | | 18,258 | | Lead | | 12,776 | | | 13,857 | |
| Zinc | Zinc | | 993 | | | 2,510 | | | | 9,448 | | | 6,738 | | Zinc | | 4,457 | | | 6,310 | |
Other | Other | | (3,830) | | | 2,480 | | | 1,925 | | | 2,613 | | Other | | 8,405 | | | 5,697 | |
| Total | Total | $ | 166,627 | | | $ | 322,846 | | | $ | 841,656 | | | $ | 1,066,280 | | Total | $ | 314,614 | | | $ | 355,446 | |
(1) Other revenue includes changes in the fair value of concentrate trade receivables due to fluctuations in silver and base metal prices; and silver and copper by-product revenue arising from the production and sale of gold doré.
Provisional metal sales
For the three months ended September 30,March 31, 2023 and 2022, and 2021, the change in the fair value of the Company's embedded derivatives relating to provisional concentrate metal sales was an increase (decrease) of $1.3$7.5 million and $(2.8) million, respectively, and for the nine months ended September 30, 2022 and 2021, was an increase (decrease) of $2.6 million and $(2.5)$4.2 million, respectively. The changes in fair value have been recorded in Revenue.
At September 30, 2022,March 31, 2023, the Company had silver sales of 3.674.54 million ounces at an average price of $20.60$21.93 per ounce, zinclead sales of 2.1723.06 million pounds at an average price of $1.48$0.93 per pound, and leadzinc sales of 15.674.87 million pounds at an average price of $0.88$1.39 per pound, subject to normal course final pricing over the next several months.
SSR Mining Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)
6.5.INCOME AND MINING TAXES
The Company’s consolidated effective income tax rate was 7.1%8.8% for the first ninethree months of 20222023 compared to 9.2%29.2% for the first ninethree months of 2021.The2022. The primary driver of the change in the effective rate is foreign currency fluctuations particularly withand the devaluationrelease of the Turkish Lira relative to the USD, as well as changes in book income in foreign jurisdictions with varying tax rates and an uncertain tax position.positions, although these tax benefits were partially offset by tax return adjustments, including the newly implemented Türkiye earthquake tax. The Company’s statutory tax rate for the period is 27.0%. The effective rate differs from the statutory rate primarily due to foreign exchange and jurisdictional mixthe release of earnings with differentuncertain tax rates.
SSR Mining Inc.
Notespositions, partially offset by tax return adjustments, which are largely attributable to Condensed Consolidated Financial Statements
(unaudited)
the Türkiye earthquake tax assessments.Unrecognized Tax Benefits
The Company records uncertain tax positions on the basis onof a two-step process in which (1) the Company determines whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions meeting the “more-likely-than-not” recognition threshold, the Company recognizes the largest amount of tax benefit that is more than 50% likely to be realized upon ultimate settlement with the related tax authority.
A reconciliation of the beginning and ending amount of gross unrecognized tax benefits, inclusive of interest and penalties, is as follows (in thousands):
| | | Nine Months Ended September 30, | | Three Months Ended March 31, |
| | 2022 | | 2021 | | 2023 | | 2022 |
| Balance as of January 1 | Balance as of January 1 | | $ | — | | | $ | — | | Balance as of January 1 | | $ | 8,574 | | | $ | — | |
| Increase associated with tax positions taken during the current year | Increase associated with tax positions taken during the current year | | — | | | — | | Increase associated with tax positions taken during the current year | | — | | | — | |
Increase (decrease) associated with tax positions taken during a prior year (1) | Increase (decrease) associated with tax positions taken during a prior year (1) | | 9.2 | | | — | | Increase (decrease) associated with tax positions taken during a prior year (1) | | (6,594) | | | — | |
| Settlements | Settlements | | — | | | — | | Settlements | | — | | | — | |
| Decrease associated with lapses in statutes of limitation | Decrease associated with lapses in statutes of limitation | | — | | | — | | Decrease associated with lapses in statutes of limitation | | — | | | — | |
| Balance as of September 30 | | $ | 9.2 | | | $ | — | | |
Balance as of March 31 (1) | | Balance as of March 31 (1) | | $ | 1,980 | | | $ | — | |
(1) Of the gross unrecognized tax benefits, $9.2$2.0 million were recognized as current liabilities in Condensed Consolidated Balance Sheet as of September, 30, 2022.
As of September 30, 2022March 31, 2023 and December 31, 2021, $9.22022, $2.0 million and $0,$8.6 million, respectively, represent the amount of unrecognized tax benefits, inclusive of interest and penalties that, if recognized, would impact the Company’s effective income tax rate.
As of September 30,March 31, 2023 and December 31, 2022, the total amount of accrued income-tax-related interest and penalties included in the Condensed Consolidated Balance Sheets waswere nil and $5.2 million. The Company believes it is reasonably possible that the total amount of the unrecognized tax benefit of $9.2$2.0 million will be settled in the next 12 months. During the ninethree months ended September 30, 2022,March 31, 2023, the Company recordedreleased $6.6 million of tax, interest and penalties in Income and mining tax benefit (expense) in the Condensed Consolidated Statements of Operations. No amounts were accrued duringOn March 12, 2023, Türkiye enacted Tax Amnesty legislation, which allows taxpayers to voluntarily pay tax on uncertain tax positions and waives assessed interest, penalties and up to 50.0% of tax and risk of audit if paid in accordance with the nine months ended September 30, 2021.process outlined in the legislation.
7.OTHER OPERATING EXPENSES, NET
The following table includes the components of Other operating expenses, net:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, | | Nine Months Ended September 30, |
| 2022 | | 2021 | | 2022 | | 2021 |
| Alacer transaction and integration costs | $ | — | | | $ | 611 | | | $ | — | | | $ | 5,815 | |
| Pitarrilla transaction costs | | 1,561 | | | | — | | | | 1,561 | | | | — | |
| SEC conversion costs | | — | | | | 64 | | | | 1,255 | | | | 245 | |
| Other | | (82) | | | | — | | | | (120) | | | | — | |
| Total | $ | 1,479 | | | $ | 675 | | | $ | 2,696 | | | $ | 6,060 | |
SSR Mining Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)
8.6.OTHER INCOME (EXPENSE)
The following table includes the components of Other income (expense):
| | | Three Months Ended September 30, | | Nine Months Ended September 30, | | Three Months Ended March 31, |
| | 2022 | | 2021 | | 2022 | | 2021 | | 2023 | | 2022 |
| Interest income | Interest income | $ | 5,344 | | | $ | 514 | | | $ | 9,143 | | | $ | 1,479 | | Interest income | $ | 7,646 | | | $ | 1,565 | |
| Change in fair value of marketable securities | Change in fair value of marketable securities | | (37) | | | (4,524) | | | (3,836) | | | (6,472) | | Change in fair value of marketable securities | | 1,866 | | | (923) | |
| | Gain (loss) on sale of mineral properties, plant, and equipment | Gain (loss) on sale of mineral properties, plant, and equipment | | (501) | | | (1,152) | | | (1,842) | | | 462 | | Gain (loss) on sale of mineral properties, plant, and equipment | | (240) | | | (584) | |
| Other | Other | | 4,347 | | | (1,691) | | | 2,924 | | | (4,115) | | Other | | 3,780 | | | (425) | |
| Total | Total | $ | 9,153 | | | $ | (6,853) | | | $ | 6,389 | | | $ | (8,646) | | Total | $ | 13,052 | | | $ | (367) | |
9.7.INCOME (LOSS) PER SHARE
The Company calculates basic net income (loss) per share using, as the denominator, the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share uses, as its denominator, the weighted average number of common shares outstanding during the period plus the effect of potential dilutive shares during the period.
Potential dilutive common shares include stock options, Restricted Share Units (“RSUs”), RSU Replacement Units, and convertible notes for periods in which the Company has reported net income (loss).
SSR Mining Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)
The calculations of basic and diluted net income (loss) per share attributable to stockholders of the Company for the three and nine months ended September 30,March 31, 2023 and 2022 and 2021 are based on the following (in thousands):
| | | Three Months Ended September 30, | | Nine Months Ended September 30, | | Three Months Ended March 31, |
| | 2022 | | 2021 | | 2022 | | 2021 | | 2023 | | 2022 |
| Net income (loss) | Net income (loss) | $ | (28,372) | | | $ | 64,179 | | | $ | 115,251 | | | $ | 269,423 | | Net income (loss) | $ | 29,004 | | | $ | 76,106 | |
| Net (income) loss attributable to non-controlling interest | Net (income) loss attributable to non-controlling interest | | 2,579 | | | (7,119) | | | (14,995) | | | (28,782) | | Net (income) loss attributable to non-controlling interest | | 809 | | | (8,543) | |
| Net income (loss) attributable to shareholders of SSR Mining | Net income (loss) attributable to shareholders of SSR Mining | | (25,793) | | | | 57,060 | | | | 100,256 | | | | 240,641 | | Net income (loss) attributable to shareholders of SSR Mining | | 29,813 | | | | 67,563 | |
| Interest saving on convertible notes, net of tax | | — | | | 1,226 | | | 3,677 | | | 3,662 | | |
| Interest saving on 2019 Notes, net of tax | | Interest saving on 2019 Notes, net of tax | | 1,221 | | | 1,215 | |
| Net income (loss) used in the calculation of diluted net income per share | Net income (loss) used in the calculation of diluted net income per share | $ | (25,793) | | | $ | 58,286 | | | $ | 103,933 | | | $ | 244,303 | | Net income (loss) used in the calculation of diluted net income per share | $ | 31,034 | | | $ | 68,778 | |
| | | | | | | | | | | | | |
| Weighted average number of common shares issued | | 207,983 | | | 213,426 | | | 210,986 | | | 217,392 | | |
| Weighted average number of common shares outstanding | | Weighted average number of common shares outstanding | | 206,778 | | | 212,423 | |
| Adjustments for dilutive instruments: | Adjustments for dilutive instruments: | | Adjustments for dilutive instruments: | |
| Stock options | Stock options | | — | | | 46 | | | 5 | | | 53 | | Stock options | | — | | | 9 | |
| Restricted share units | Restricted share units | | — | | | 40 | | | 59 | | | 55 | | Restricted share units | | 14 | | | 88 | |
| Convertible notes | | — | | | 12,177 | | | 12,493 | | | 12,152 | | |
| 2019 Notes | | 2019 Notes | | 12,611 | | | 12,216 | |
| Diluted weighted average number of shares outstanding | Diluted weighted average number of shares outstanding | | 207,983 | | | | 225,689 | | | | 223,543 | | | | 229,652 | | Diluted weighted average number of shares outstanding | | 219,403 | | | | 224,736 | |
| | | | | | | | | | | | | |
| Net income (loss) per share attributable to common shareholders | Net income (loss) per share attributable to common shareholders | | Net income (loss) per share attributable to common shareholders | |
| Basic | Basic | $ | (0.12) | | | $ | 0.27 | | | $ | 0.48 | | | $ | 1.11 | | Basic | $ | 0.14 | | | $ | 0.32 | |
| Diluted | Diluted | $ | (0.12) | | | $ | 0.26 | | | $ | 0.46 | | | $ | 1.06 | | Diluted | $ | 0.14 | | | $ | 0.31 | |
For the three months ended September 30, 2022, $1.2 million of interest saving on convertible notes, net of tax, and 12,542 shares were excluded from the diluted income per common share calculation because the Company incurred a net loss and the effect would be antidilutive.
SSR Mining Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)
10.8.FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS
Fair value accounting establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below:
Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;
Level 2 - Quoted prices in markets that are not active, quoted prices for similar assets or liabilities in active markets, quoted prices or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability and model-based valuation techniques (e.g. the Black-Scholes model) for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and
SSR Mining Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)
Level 3 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).
As required by accounting guidance, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following tables set forth the Company’s assets and liabilities measured at fair value on a recurring (at least annually) and nonrecurring basis by level within the fair value hierarchy (in thousands):
| | | Fair value at September 30, 2022 | | Fair value at March 31, 2023 |
| | Level 1 (1) | | Level 2 (2) | | Level 3 (3) | | Total | | Level 1 (1) | | Level 2 (2) | | Level 3 (3) | | Total |
| Assets: | Assets: | | | | | | | | Assets: | | | | | | | |
| Cash | Cash | $ | 748,476 | | | $ | — | | | $ | — | | | $ | 748,476 | | Cash | $ | 561,783 | | | $ | — | | | $ | — | | | $ | 561,783 | |
| Restricted cash | Restricted cash | | 35,569 | | | — | | | — | | | 35,569 | | Restricted cash | | 34,029 | | | — | | | — | | | 34,029 | |
| Marketable securities | Marketable securities | | 64,616 | | | — | | | — | | | 64,616 | | Marketable securities | | 38,203 | | | — | | | — | | | 38,203 | |
| Trade receivables | | — | | | 136,820 | | | — | | | 136,820 | | |
| Derivative asset | | — | | | 341 | | | — | | | 341 | | |
| Trade receivables from provisional sales, net | | Trade receivables from provisional sales, net | | — | | | 80,639 | | | — | | | 80,639 | |
| | Deferred consideration | Deferred consideration | | — | | | — | | | 23,201 | | | 23,201 | | Deferred consideration | | — | | | — | | | 22,284 | | | 22,284 | |
| | $ | 848,661 | | | $ | 137,161 | | | $ | 23,201 | | | $ | 1,009,023 | | | $ | 634,015 | | | $ | 80,639 | | | $ | 22,284 | | | $ | 736,938 | |
| | | Fair value at December 31, 2021 | | Fair value at December 31, 2022 |
| | Level 1 (1) | | Level 2 (2) | | Level 3 (3) | | Total | | Level 1 (1) | | Level 2 (2) | | Level 3 (3) | | Total |
| Assets: | Assets: | | | | | | | | Assets: | | | | | | | |
| Cash | Cash | $ | 1,017,562 | | | $ | — | | | $ | — | | | $ | 1,017,562 | | Cash | $ | 655,453 | | | $ | — | | | $ | — | | | $ | 655,453 | |
| Restricted cash | Restricted cash | | 35,303 | | | — | | | — | | | 35,303 | | Restricted cash | | 33,653 | | | — | | | — | | | 33,653 | |
| Marketable securities | Marketable securities | | 46,923 | | | — | | | — | | | 46,923 | | Marketable securities | | 44,841 | | | — | | | — | | | 44,841 | |
| Trade receivables | | — | | | 72,634 | | | — | | | 72,634 | | |
| Derivative asset | | — | | | 987 | | | — | | | 987 | | |
| Trade receivables from provisional sales, net | | Trade receivables from provisional sales, net | | — | | | 49,897 | | | — | | | 49,897 | |
| | Deferred consideration | Deferred consideration | | — | | | — | | | 22,610 | | | 22,610 | | Deferred consideration | | — | | | — | | | 24,369 | | | 24,369 | |
| | $ | 1,099,788 | | | $ | 73,621 | | | $ | 22,610 | | | $ | 1,196,019 | | | $ | 733,947 | | | $ | 49,897 | | | $ | 24,369 | | | $ | 808,213 | |
(1)Marketable securities of publicly quoted companies, consisting of investments, are valued using a market approach based upon unadjusted quoted prices in an active market obtained from securities exchanges.
(2)TheAt times, the Company manages a portion of its exposure to fluctuation in diesel prices and foreign currency exchange rates through hedges. The Company’shedges; however, as of March 31, 2023 the Company does not have any outstanding hedge positions. In periods when the Company has open hedge positions, the derivative asset and liabilities are valued using pricing models with inputs derived from observable market data, including quoted prices in active markets. The Company’s provisional metal sales contracts, included in Trade and other receivables in the Condensed Consolidated Balance Sheets, are valued using inputs derived from observable market data, including quoted commodity
SSR Mining Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)
forward prices. The inputs do not involve significant management judgment. Such instruments are classified within Level 2 of the fair value hierarchy.
(3)Certain items of deferred consideration are included in Level 3, as certain assumptions used in the calculation of the fair value are not based on observable market data.
SSR Mining Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)
The following table reconciles the beginning and ending balances for financial instruments that are recognized at fair value using significant unobservable inputs (Level 3) in the condensed consolidated financial statements (in thousands):
| | | | | | | | | | | | | | | | | |
| Nine Months Ended September 30, |
| 2022 | | 2021 |
| Balance as of January 1 | $ | 22,610 | | | $ | 21,460 | |
| Revaluations | | 591 | | | | 297 | |
| Acquisition of deferred consideration | | — | | | | 481 | |
| | | | | |
| Deferred consideration moved to held for sale | | — | | | | (20,691) | |
| Balance as of September 30 | $ | 23,201 | | | $ | 1,547 | |
| | | | | | | | | | | | | | | | | |
| Three Months Ended March 31, |
| 2023 | | 2022 |
| Balance as of January 1 | $ | 24,369 | | | $ | 22,610 | |
| Revaluations | | (2,085) | | | | 651 | |
| | | | | |
| | | | | |
| | | | | |
| Balance as of March 31 | $ | 22,284 | | | $ | 23,261 | |
Fair values of financial assets and liabilities not already measured at fair value
The fair value of the 2019 Notes and Term Loan as compared to the carrying amounts were as follows (in thousands):
| | | | September 30, 2022 | | December 31, 2021 | | | March 31, 2023 | | December 31, 2022 |
| | Level | | Carrying amount | | Fair value | | Carrying amount | | Fair value | | Level | | Carrying amount | | Fair value | | Carrying amount | | Fair value |
2019 Notes (1) | 2019 Notes (1) | 1 | | $ | 226,259 | | | $ | 248,285 | | | $ | 225,534 | | | $ | 286,207 | | 2019 Notes (1) | 1 | | $ | 226,745 | | | $ | 251,850 | | | $ | 226,510 | | | $ | 257,025 | |
Term Loan (2) | Term Loan (2) | 2 | | 87,500 | | | 89,514 | | | 140,000 | | | 144,871 | | Term Loan (2) | 2 | | 52,500 | | | 53,367 | | | 70,000 | | | 71,419 | |
| Total borrowings | Total borrowings | | $ | 313,759 | | | $ | 337,799 | | | $ | 365,534 | | | $ | 431,078 | | Total borrowings | | $ | 279,245 | | | $ | 305,217 | | | $ | 296,510 | | | $ | 328,444 | |
(1) The fair value disclosed for the Company's 2019 Notes is included indesignated as Level 1 as the basis of valuation uses a quoted price in an active market.
(2) The fair value disclosed for the Company's Term Loan is included indesignated as Level 2 as the fair value is determined by an independent third-party pricing source.
11.9.TRADE AND OTHER RECEIVABLES
Trade and other receivables wasare composed of the following (in thousands):
| | | September 30, 2022 | | December 31, 2021 | | March 31, 2023 | | December 31, 2022 |
| Trade receivables | Trade receivables | $ | 81,042 | | | $ | 86,124 | | Trade receivables | $ | 88,688 | | | $ | 62,563 | |
| Value added tax receivables | Value added tax receivables | | 21,952 | | | | 20,723 | | Value added tax receivables | | 38,517 | | | | 30,893 | |
| Income tax receivable | Income tax receivable | | 21,835 | | | | 9,374 | | Income tax receivable | | 26,801 | | | | 14,316 | |
| Other taxes receivable | Other taxes receivable | | 5,838 | | | | 1,866 | | Other taxes receivable | | 4,559 | | | | 6,750 | |
| Other | Other | | 6,153 | | | | 3,269 | | Other | | 3,183 | | | | 3,153 | |
| Total | Total | $ | 136,820 | | | $ | 121,356 | | Total | $ | 161,748 | | | $ | 117,675 | |
No provision for credit loss was recognized as of September 30, 2022March 31, 2023 or December 31, 2021.2022. All trade receivables are expected to be settled within twelve months.
SSR Mining Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)
12.10.INVENTORIES
The components of Inventories for the periods ended September 30, 2022March 31, 2023 and December 31, 20212022 are as follows (in thousands):
| | | September 30, 2022 | | December 31, 2021 | | March 31, 2023 | | December 31, 2022 |
| Materials and supplies | Materials and supplies | $ | 104,693 | | | $ | 79,372 | | Materials and supplies | $ | 120,615 | | | $ | 103,380 | |
| Stockpiled ore | Stockpiled ore | | 45,272 | | | 27,589 | | Stockpiled ore | | 41,557 | | | 54,504 | |
| Leach pad inventory | Leach pad inventory | | 286,870 | | | 243,627 | | Leach pad inventory | | 322,242 | | | 300,715 | |
| Work-in-process | Work-in-process | | 7,871 | | | 4,951 | | Work-in-process | | 9,803 | | | 7,549 | |
| Finished goods | Finished goods | | 23,556 | | | 33,877 | | Finished goods | | 24,977 | | | 35,459 | |
| Total current inventories | Total current inventories | $ | 468,262 | | | $ | 389,416 | | Total current inventories | $ | 519,194 | | | $ | 501,607 | |
| | Stockpiled ore | Stockpiled ore | | 213,245 | | | 220,324 | | Stockpiled ore | | 227,841 | | | 217,154 | |
| Materials and supplies | Materials and supplies | | 1,375 | | | 1,293 | | Materials and supplies | | 1,892 | | | 1,845 | |
| Total non-current inventories | Total non-current inventories | $ | 214,620 | | | $ | 221,617 | | Total non-current inventories | $ | 229,733 | | | $ | 218,999 | |
During the period ended March 31, 2023, the Company recognized write-downs of leach pad inventory at Çöpler of $2.0 million, with $1.3 million classified as a component of Cost of sales and $0.7 million classified as a component of Depreciation, depletion and amortization. No write-down of inventory was recognized during the year ended December 31, 2022.
13.11.MINERAL PROPERTIES, PLANT AND EQUIPMENT, NET
The components of Mineral properties, plant and equipment, net are as follows (in thousands):
| | | September 30, 2022 | | December 31, 2021 | | March 31, 2023 | | December 31, 2022 |
Plant and equipment (1) | Plant and equipment (1) | $ | 1,776,441 | | | $ | 1,762,833 | | Plant and equipment (1) | $ | 1,807,675 | | | $ | 1,793,914 | |
| Construction in process | Construction in process | | 50,853 | | | 36,841 | | Construction in process | | 83,486 | | | 58,704 | |
| Mineral properties subject to depletion | Mineral properties subject to depletion |
| 1,411,884 | | | 1,331,615 | | Mineral properties subject to depletion |
| 1,458,245 | | | 1,452,850 | |
| Mineral properties not yet subject to depletion | Mineral properties not yet subject to depletion | | 668,356 | | | 141,629 | | Mineral properties not yet subject to depletion | | 853,492 | | | 848,281 | |
| Exploration and evaluation assets | Exploration and evaluation assets |
| 345,511 | | | 927,176 | | Exploration and evaluation assets |
| 512,993 | | | 515,070 | |
| Total mineral properties, plant, and equipment | Total mineral properties, plant, and equipment | | 4,253,045 | | | | 4,200,094 | | Total mineral properties, plant, and equipment | | 4,715,891 | | | | 4,668,819 | |
| Accumulated depreciation, plant and equipment | Accumulated depreciation, plant and equipment |
| (594,008) | | | | (529,635) | | Accumulated depreciation, plant and equipment |
| (643,618) | | | | (621,323) | |
| Accumulated depreciation, mineral properties | Accumulated depreciation, mineral properties | | (468,101) | | | (420,695) | | Accumulated depreciation, mineral properties | | (523,253) | | | (498,050) | |
| Mineral properties, plant, and equipment, net | Mineral properties, plant, and equipment, net | $ | 3,190,936 | | | $ | 3,249,764 | | Mineral properties, plant, and equipment, net | $ | 3,549,020 | | | $ | 3,549,446 | |
(1) As of September 30, 2022March 31, 2023 and December 31, 2021,2022, plant and equipment includes finance lease right-of-use assets with a carrying amount of $103.0$100.4 million and $114.9$101.7 million, respectively.
No impairment was recognized for the three and nine months ended September 30, 2022. During the nine month period ended September 30, 2021, the Company recognized an impairment loss of $22.4 million as a result of the agreement entered into subsequent to June 30, 2021 to sell a portfolio of royalty interestsMarch 31, 2023 and deferred payments (the “Royalty Sales Agreement”) to EMX Royalty Corporation (“EMX”). The $22.4 million impairment loss was recognized in the Company's Exploration, evaluation and development properties segment.2022.
SSR Mining Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)
14.12.ACCRUED LIABILITIES AND OTHER
Accrued liabilities and other are comprised of the following items (in thousands):
| | | September 30, 2022 | | December 31, 2021 | | March 31, 2023 | | December 31, 2022 |
| Accrued liabilities | Accrued liabilities | $ | 59,665 | | | $ | 51,544 | | Accrued liabilities | $ | 56,322 | | | $ | 68,254 | |
| Royalties payable | Royalties payable | | 14,075 | | | 32,383 | | Royalties payable | | 20,530 | | | 16,012 | |
| Stock-based compensation liabilities | Stock-based compensation liabilities | | 10,119 | | | 22,652 | | Stock-based compensation liabilities | | 9,972 | | | 10,493 | |
| | Income taxes payable | Income taxes payable | | 22,310 | | | 52,206 | | Income taxes payable | | 14,243 | | | 16,374 | |
| Lease liabilities | Lease liabilities | | 1,847 | | | 2,238 | | Lease liabilities | | 2,324 | | | 1,976 | |
| Reclamation liabilities | | Reclamation liabilities | | 10,054 | | | 10,075 | |
| Other | Other | | 2,146 | | | 4,085 | | Other | | 31 | | | 1,470 | |
| Total accrued liabilities and other | Total accrued liabilities and other | $ | 110,162 | | | $ | 165,108 | | Total accrued liabilities and other | $ | 113,476 | | | $ | 124,654 | |
15.13.DEBT
The following tables summarize the Company’s debt balances (in thousands):
| | | September 30, 2022 | | December 31, 2021 | | March 31, 2023 | | December 31, 2022 |
2019 Notes (1) | 2019 Notes (1) | $ | 226,259 | | | | $ | 225,534 | | 2019 Notes (1) | $ | 226,745 | | | | $ | 226,510 | |
| Term Loan | Term Loan | | 87,500 | | | | | 140,000 | | Term Loan | | 52,500 | | | | | 70,000 | |
| Other | Other | | 1,751 | | | | | 1,450 | | Other | | 894 | | | | | 1,797 | |
| Total carrying amount | Total carrying amount | $ | 315,510 | | | | $ | 366,984 | | Total carrying amount | $ | 280,139 | | | | $ | 298,307 | |
| | | | | | | | | | | | | | | |
| Current Portion | Current Portion | $ | 89,251 | | | | $ | 71,491 | | Current Portion | $ | 53,394 | | | | $ | 71,797 | |
| Non-Current Portion | Non-Current Portion | $ | 226,259 | | | | $ | 295,493 | | Non-Current Portion | $ | 226,745 | | | | $ | 226,510 | |
(1) Amount is net of discount and debt issuance costs of $3.7$3.3 million and $4.5$3.5 million, respectively.
Convertible Debt
2019 Notes
On March 19, 2019, the Company issued $230.0 million of 2.50% convertible senior notes due in 2039 (the “2019 Notes”) for net proceeds of $222.9 million after payment of commissions and expenses related to the offering of $7.1 million. The 2019 Notes mature on April 1, 2039 and bear an interest rate of 2.50% per annum, payable semi-annually in arrears on April 1 and October 1 of each year. The 2019 Notes are convertible into the Company's common shares at a fixed conversion rate, subject to certain anti-dilution adjustments. In addition, if certain fundamental changes occur, holders of the 2019 Notes may be entitled to an increased conversion rate.
The Company had a conversion price change on its 2019 Notes during the quarter ended September 30, 2022. As a result of ongoing dividends and in accordance with the 2019 Notes Agreement, during the fourth quarter of 2022 the conversion price for the 2019 Notesrate was adjusted to 55.401855.6750 common shares per $1,000 principal amount of the 2019 Notes effective on August 11, 2022.converted.
Prior to April 1, 2023, the Company may not redeem the 2019 Notes, except in the event of certain changes in Canadian tax law. On or after April 1, 2023 and prior to April 1, 2026, the Company may redeem all or part of the 2019 Notes for cash, but only if the last reported sales price of its common shares for 20 or more trading days in a period of 30 consecutive trading days exceeds 130% of the conversion price in effect on each such trading day. On or after April 1, 2026, the Company may redeem the 2019 Notes in full or in part, for cash.
SSR Mining Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)
Holders of the 2019 Notes have the right to require the Company to repurchase all or part of their 2019 Notes on April 1 of each of 2026, 2029 and 2034, or upon certain fundamental corporate changes. The repurchase price will be equal to par plus accrued and unpaid interest.
SSR Mining Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)
The Company does not have any financial covenants in relation to the 2019 Notes.
Term Loan
On September 16, 2020, in connection with the acquisition of the Çöpler mine, the Company assumed a term loan (the "Term Loan"), with a fair value of $245.0 million as of the date of acquisition, with a syndicate of lenders (BNP Paribas (Suisse) SA, ING Bank NV, Societe Generale Corporate & Investment Banking and UniCredit S.P.A.). The Term Loan bears interest at the London Inter-bank Offered Rate ("LIBOR") plus a fixed interest rate margin in the range of 3.50% to 3.70% depending on the tranche. The Term Loan has no mandatory hedging or cash sweep requirements, no prepayment penalties, and final repayment is scheduled in the fourth quarter of 2023.
Restricted cash accounts must be maintained while the Term Loan is outstanding. As of September 30, 2022March 31, 2023 and December 31, 2021, $33.22022, $34.0 million and $32.9$33.7 million of restricted cash relates to the Term Loan, respectively. Restricted cash is classified as a non-currentcurrent asset in the Condensed Consolidated Balance Sheets.
As a result of the temporarily suspended operations at the Çöpler mine during most of the third quarter of 2022, theThe Company was notis in compliance with certainall financial covenants in relation to the Term Loan as of September 30, 2022. The Company is in discussions with the lenders to obtain a waiver for the non-compliance event. If the Company is unable to obtain a waiver, the lenders may accelerate the repayment schedule and the entire balance of the Term Loan would become due, at which time the Company would use available cash to repay the outstanding borrowings in full. All future remaining principal and interest payment amounts under the Term Loan remain unchanged. As of September 30, 2022, the Company reclassified $17.5 million of the Term Loan, which is scheduled to be repaid in the fourth quarter of 2023, to Loan.
Current portion of debt as a result of the noncompliance with financial covenants. With this reclassification, the entire balance of the Term Loan is included in Current portion of debt.
Amended Credit Agreement
On June 7, 2021, the Company amended its existing Credit Agreement to extend the maturity to June 8, 2025 and increase the Credit Agreement to $200.0 million with a $100.0 million accordion feature (the "Amended Credit Agreement"). Amounts drawn under the Amended Credit Agreement are subject to variable interest rates at LIBOR plus an applicable margin ranging from 2% to 3%, based on the Company's net leverage ratio. As of September 30, 2022,March 31, 2023, the Company was in compliance with its covenants. As of September 30, 2022,March 31, 2023, no borrowings were outstanding on the Amended Credit Agreement, $199.1$196.6 million of borrowing capacity was available and outstanding letters of credit totaled $0.9$3.4 million.
The Company wasis in compliance with its externally imposedall financial covenants in relation to the Amended Credit Agreement.
16.14.EQUITY
Repurchase of common shares
On June 20, 2022, the Company received approval of its Normal Course Issuer Bid (the "NCIB") to purchase for cancellation up to 10.6 million of its common shares through the facilities of the TSX, Nasdaq or other Canadian and U.S. marketplaces over a twelve month period beginning June 20, 2022 and ending June 19, 2023.
During the three months ended September 30, 2022,March 31, 2023, the Company purchased 5,255,284348,171 of its outstanding common shares pursuant to the NCIB at an average share price of $16.25$14.92 per share for total consideration of $85.4$5.2 million. All shares were cancelled upon purchase. The difference of $8.2$0.1 million between the total amount paid and the amount deducted from common shares of $77.1$5.1 million was recorded as a direct charge to retained earnings. The amount deducted from common shares was determined based on the average paid in capital per common share outstanding prior to the repurchase date.
During the nine months ended September 30, 2022, the Company purchased 6,053,126 of its outstanding common shares pursuant to the NCIB at an average share price of $16.53 per share for total consideration of $100.0 million. All shares were cancelled upon purchase. The difference of $11.2 million between the total amount paid and the
SSR Mining Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)
amount deducted from common shares of $88.8 million was recorded as a direct charge to retained earnings. The amount deducted from common shares was determined based on the average paid in capital per common share outstanding prior to the repurchase date.
17.15.SUPPLEMENTAL CASH FLOW INFORMATION
Net change in operating assets and liabilities during the ninethree months ended September 30March 31, 2023 and 2022 were as follows (in thousands):
| | | Nine Months Ended September 30, | | Three Months Ended March 31, |
| | | 2022 | | 2021 | | 2023 | | 2022 |
| Decrease (increase) in operating assets: | Decrease (increase) in operating assets: | | | | | Decrease (increase) in operating assets: | | | | |
| Trade and other receivables | Trade and other receivables | $ | (20,164) | | | $ | (12,108) | Trade and other receivables | $ | (45,705) | | | $ | (10,394) |
| Inventories | Inventories | | (80,493) | | | (38,802) | | Inventories | | (28,019) | | | (32,516) | |
| Other operating assets | Other operating assets | | 768 | | | 30,736 | | Other operating assets | | (5,564) | | | (5,734) | |
| Increase (decrease) in operating liabilities: | Increase (decrease) in operating liabilities: | | Increase (decrease) in operating liabilities: | |
| Accounts payable | Accounts payable | | 9,320 | | | (13,123) | | Accounts payable | | 1,280 | | | 21,092 | |
| Accrued liabilities | Accrued liabilities | | (50,787) | | | (13,687) | | Accrued liabilities | | (8,423) | | | (44,385) | |
| Reclamation liabilities | Reclamation liabilities | | — | | | (94) | | Reclamation liabilities | | (380) | | | 118 | |
| Other operating liabilities | Other operating liabilities | | (28,548) | | | (9,605) | | Other operating liabilities | | (1,091) | | | 3,239 | |
| | $ | (169,904) | | | $ | (56,683) | | | $ | (87,902) | | | $ | (68,580) | |
Other cash information during the ninethree months ended September 30March 31, 2023 and 2022 were as follows (in thousands):
| | | Nine Months Ended September 30, | | Three Months Ended March 31, |
| | | 2022 | | 2021 | | 2023 | | 2022 |
| Interest paid | Interest paid | $ | (20,177) | | | $ | (11,110) | | Interest paid | $ | (4,732) | | | $ | (4,288) | |
| Interest received | Interest received | $ | 9,143 | | $ | 2,346 | Interest received | $ | 3,205 | | $ | 1,565 |
| Income taxes paid | Income taxes paid | $ | (130,788) | | | $ | (50,314) | | Income taxes paid | $ | (15,534) | | | $ | (67,593) | |
18.16.COMMITMENTS AND CONTINGENCIES
General
Estimated losses from loss contingencies are accrued by a charge to income when information is available prior to the issuance of the financial statements that indicates it is probable that a liability could be incurred, and the amount of the loss can by reasonably estimated. Legal expenses associated with the loss contingency are expensed as incurred. If a loss contingency is not probable or reasonably estimable, disclosure of the loss contingency is made in the financial statements when it is at least reasonably possible that a material loss could be incurred.
Environmental matters
The Company uses surety bonds to support certain environmental bonding obligations. As of September 30, 2022March 31, 2023 and December 31, 2021,2022, the Company had surety bonds totaling $117.3$117.4 million and $117.0$117.4 million outstanding, respectively.
Other Commitments and Contingencies
The Company is involved in legal proceedings related to its normal course of business. Management does not believe that these legal cases will have a material effect on the Company’s financial condition or results of the operations.
SSR Mining Inc.
Notes to Condensed Consolidated Financial Statements
(unaudited)
19.SUBSEQUENT EVENTS
In October 2022, the Company entered into an agreement to acquire an additional 30% ownership interest in the Kartaltepe Mining Joint Venture at the Çöpler District from partner Lidya Mining for total consideration of $150.0 million in cash. The transaction is expected to be completed in the fourth quarter of 2022. Upon completion of the transaction, the Company will own 80% of the Çöpler District.
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following Management’s Discussion and Analysis (“MD&A”) provides information that management believes is relevant to an assessment and understanding of the consolidated financial condition and results of operations of SSR Mining Inc. and its subsidiaries (collectively, the “Company”). The Company uses certain non-GAAP financial measures in this MD&A; for a description of each of these measures, please see the discussion under "Non-GAAP Financial Measures" in Part I, Item 2, Management’s Discussion and Analysis herein.
This item should be read in conjunction with the Condensed Consolidated Financial Statements and the notes thereto included in this quarterly report. Additionally, the following discussion and analysis should be read in conjunction with the Consolidated Financial Statements, the related Management’s Discussion and Analysis of Financial Condition and Results of Operations and the discussion of Business Properties included in the Company’s Annual Report on Form 10-K for the year ended December 31, 20212022 filed with the Securities and Exchange Commission (“SEC”) on February 23, 2022,22, 2023, as amended on July 12, 2022,Form 10-K/A filed on March 17, 2023, solely to reorganize information included in Part I, Item 2.correct a typographical error related to the date of the audit opinion (together, “Form 10-K”).
Business Overview
SSR Mining is a precious metals mining company with four producing assets located in the United States, Türkiye, Canada and Argentina. The Company is primarily engaged in the operation, acquisition, exploration and development of precious metal resource properties located in Türkiye and the Americas. The Company produces gold doré as well as copper, silver, lead and zinc concentrates. The Company’s diversified asset portfolio is comprised of high-margin, long-life assets located in some of the world's most prolific metal districts.
Refer to the “Third“First Quarter Highlights”, “Consolidation“Consolidated Results of Operations”, “Results of Operations”, “Liquidity and Capital Resources” and Non-GAAP Financial Measures” for quarterly information for the ninethree months ended September 30, 2022.
At the end of the second quarter of 2022, Türkiye’s Ministry of Environment, Urbanization and Climate Change (“Ministry of Environment”) temporarily suspended operations at the Çöpler mine pending implementation of improvement initiatives requested as a result of a leak of leach solution on June 21, 2022. The Company completed these initiatives and received the required regulatory approvals from Türkiye’s Government authorities on September 22, 2022 and all operations were subsequently restarted at the Çöpler mine. During the temporary suspension, Care and maintenance expense was recorded in the Statements of Operations which represents direct costs and depreciation incurred at Çöpler.
On July 6, 2022, the Company completed the sale of the Pitarrilla project in Durango, Mexico to Endeavour Silver Corp. ("Endeavour Silver") for consideration consisting of $35.0 million(1) in common shares of Endeavor Silver, $35.0 million in cash, and a 1.25% net smelter returns royalty on the Pitarrilla property. For further information, see Note 3 to the Condensed Consolidated Financial Statements.
The Company acquired all of the issued and outstanding common shares of Taiga Gold Corporation (“Taiga Gold”) at a price of CAD $0.265 per Taiga Gold share on April 14, 2022, representing total consideration of $24.8 million. The transaction materially expands the Company’s presence in Saskatchewan, Canada, a core jurisdiction, by adding five new properties, which provide new exploration targets stretching south from the Seabee mine to the Company’s 100%-owned Amisk property. Further, the acquisition consolidates a 100% interest in the Fisher property contiguous to the Seabee mine. The Company will leverage its existing teams and infrastructure to advance the exploration of these assets.
(1) The fair value of the common shares of Endeavour Silver on July 6, 2022 was $25.6 million. See Note 3 to the Condensed Consolidated Financial Statements for more information.
Operating Statistics
The following tables summarize operating statistics related to production for the three and nine months ended September 30, 2022 and 2021:
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, 2022 |
| Çöpler | | Marigold | | Seabee | | Puna |
| Gold produced (oz) | 3,733 | | | 52,236 | | | 20,493 | | | — | |
| Gold sold (oz) | 2,591 | | | 49,744 | | | 19,700 | | | — | |
| Silver produced ('000 oz) | — | | | — | | | — | | | 2,738 | |
| Silver sold ('000 oz) | — | | | — | | | — | | | 2,234 | |
| Lead produced ('000 lb) | — | | | — | | | — | | | 11,390 | |
| Lead sold ('000 lb) | — | | | — | | | — | | | 9,169 | |
| Zinc produced ('000 lb) | — | | | — | | | — | | | 1,590 | |
| Zinc sold ('000 lb) | — | | | — | | | — | | | 1,050 | |
| | | | | | | |
| Ore mined (kt) | 70 | | | 4,279 | | | 108 | | | 544 | |
| Waste removed (kt) | 406 | | | 15,922 | | | 73 | | | 2,228 | |
| Total material mined (kt) | 476 | | | 20,201 | | | 181 | | | 2,772 | |
| | | | | | | |
| Ore stacked - oxide (kt) | — | | | 4,279 | | | — | | | — | |
| Gold grade stacked - oxide (g/t) | — | | | 0.59 | | — | | | — | |
| | | | | | | |
| Ore milled (kt) | 64 | | | — | | | 101 | | | 431 | |
| Gold mill feed grade (g/t) | 2.27 | | — | | | 6.07 | | — | |
| Gold recovery (%) | 86.0 | | | — | | | 97.3 | | — | |
| Silver mill feed grade (g/t) | — | | | — | | | — | | | 206.5 | |
| Lead mill feed grade (%) | — | | | — | | | — | | | 1.29 | |
| Zinc mill feed grade (%) | — | | | — | | | — | | | 0.43 | |
| Silver recovery (%) | — | | | — | | | — | | | 95.8 | |
| Lead recovery (%) | — | | | — | | | — | | | 92.7 | |
| Zinc recovery (%) | — | | | — | | | — | | | 38.9 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, 2021 |
| Çöpler | | Marigold | | Seabee | | Puna |
| Gold produced (oz) | 82,975 | | | 52,049 | | | 22,589 | | | — | |
| Gold sold (oz) | 80,054 | | | 53,339 | | | 22,950 | | | — | |
| Silver produced ('000 oz) | — | | | — | | | — | | | 2,184 | |
| Silver sold ('000 oz) | — | | | — | | | — | | | 1,486 | |
| Lead produced ('000 lb) | — | | | — | | | — | | | 10,571 | |
| Lead sold ('000 lb) | — | | | — | | | — | | | 6,843 | |
| Zinc produced ('000 lb) | — | | | — | | | — | | | 3,420 | |
| Zinc sold ('000 lb) | — | | | — | | | — | | | 1,964 | |
| | | | | | | |
| Ore mined (kt) | 2,194 | | | 4,052 | | | 101 | | | 437 | |
| Waste removed (kt) | 4,065 | | | 21,346 | | | 76 | | | 2,519 | |
| Total material mined (kt) | 6,259 | | | 25,398 | | | 177 | | | 2,956 | |
| | | | | | | |
| Ore stacked - oxide (kt) | 333 | | | 4,052 | | | | | |
| Gold grade stacked - oxide (g/t) | 0.87 | | 0.39 | | | | |
| | | | | | | |
| Ore milled (kt) | 613 | | | — | | | 91 | | | 422 | |
| Gold mill feed grade (g/t) | 3.81 | | — | | | 7.70 | | — | |
| Gold recovery (%) | 90.7 | | — | | | 98.0 | | — | |
| Silver mill feed grade (g/t) | — | | | — | | | — | | | 167.00 | |
| Lead mill feed grade (%) | — | | | — | | | — | | | 1.20 | |
| Zinc mill feed grade (%) | — | | | — | | | — | | | 0.54 | |
| Silver recovery (%) | — | | | — | | | — | | | 96.3 | |
| Lead recovery (%) | — | | | — | | | — | | | 94.4 | |
| Zinc recovery (%) | — | | | — | | | — | | | 67.9 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Nine Months Ended September 30, 2022 |
| Çöpler | | Marigold | | Seabee | | Puna |
| Gold produced (oz) | 125,763 | | | 131,793 | | | 111,416 | | | — | |
| Gold sold (oz) | 132,862 | | | 132,681 | | | 110,000 | | | — | |
| Silver produced ('000 oz) | — | | | — | | | — | | | 6,008 | |
| Silver sold ('000 oz) | — | | | — | | | — | | | 5,766 | |
| Lead produced ('000 lb) | — | | | — | | | — | | | 27,582 | |
| Lead sold ('000 lb) | — | | | — | | | — | | | 28,255 | |
| Zinc produced ('000 lb) | — | | | — | | | — | | | 4,940 | |
| Zinc sold ('000 lb) | — | | | — | | | — | | | 5,546 | |
| | | | | | | |
| Ore mined (kt) | 1,754 | | | 13,200 | | | 307 | | | 1,396 | |
| Waste removed (kt) | 11,715 | | | 56,286 | | | 201 | | | 6,617 | |
| Total material mined (kt) | 13,469 | | | 69,486 | | | 508 | | | 8,013 | |
| | | | | | | |
| Ore stacked - oxide (kt) | 210 | | | 13,200 | | | — | | | — | |
| Gold grade stacked - oxide (g/t) | 0.87 | | 0.54 | | — | | | — | |
| | | | | | | |
| Ore milled (kt) | 1,320 | | | — | | | 295 | | | 1,223 | |
| Gold mill feed grade (g/t) | 2.91 | | — | | | 11.84 | | — | |
| Gold recovery (%) | 87.1 | | — | | | 98.2 | | — | |
| Silver mill feed grade (g/t) | — | | | — | | | — | | | 159.9 | |
| Lead mill feed grade (%) | — | | | — | | | — | | | 1.11 | |
| Zinc mill feed grade (%) | — | | | — | | | — | | | 0.42 | |
| Silver recovery (%) | — | | | — | | | — | | | 95.6 | |
| Lead recovery (%) | — | | | — | | | — | | | 92.5 | |
| Zinc recovery (%) | — | | | — | | | — | | | 43.7 | |
| | | | | | | | | | | | | | | | | | | | | | | |
| Nine Months Ended September 30, 2021 |
| Çöpler | | Marigold | | Seabee | | Puna |
| Gold produced (oz) | 237,207 | | | 177,877 | | | 83,318 | | | — | |
| Gold sold (oz) | 239,428 | | | 178,351 | | | 85,416 | | | — | |
| Silver produced ('000 oz) | — | | | — | | | — | | | 5,966 | |
| Silver sold ('000 oz) | — | | | — | | | — | | | 5,349 | |
| Lead produced ('000 lb) | — | | | — | | | — | | | 26,377 | |
| Lead sold ('000 lb) | — | | | — | | | — | | | 20,630 | |
| Zinc produced ('000 lb) | — | | | — | | | — | | | 10,434 | |
| Zinc sold ('000 lb) | — | | | — | | | — | | | 5,896 | |
| | | | | | | |
| Ore mined (kt) | 7,480 | | | 15,521 | | | 287 | | | 1,051 | |
| Waste removed (kt) | 10,891 | | | 58,664 | | | 209 | | | 7,165 | |
| Total material mined (kt) | 18,370 | | | 74,185 | | | 496 | | | 8,216�� | |
| | | | | | | |
| Ore stacked - oxide (kt) | 1,691 | | | 15,521 | | | — | | | — | |
| Gold grade stacked - oxide (g/t) | 1.25 | | 0.41 | | — | | | — | |
| | | | | | | |
| Ore milled (kt) | 1,716 | | | — | | | 269 | | | 1,214 | |
| Gold mill feed grade (g/t) | 3.56 | | — | | | 9.75 | | — | |
| Gold recovery (%) | 91.0 | | — | | | 98.2 | | — | |
| Silver mill feed grade (g/t) | — | | | — | | | — | | | 160.00 | |
| Lead mill feed grade (%) | — | | | — | | | — | | | 1.07 | |
| Zinc mill feed grade (%) | — | | | — | | | — | | | 0.60 | |
| Silver recovery (%) | — | | | — | | | — | | | 95.7 | |
| Lead recovery (%) | — | | | — | | | — | | | 92.4 | |
| Zinc recovery (%) | — | | | — | | | — | | | 64.9 | |
Consolidated Results of Operations
A summary of the Company's consolidated financial and operating results for the three and nine months ended September 30,March 31, 2023 and 2022 and 2021 are presented below (in thousands):
| | | Three Months Ended September 30, | | Nine Months Ended September 30, | | Three Months Ended March 31, |
| | 2022 | | 2021 | | Change (%) | | 2022 | | 2021 | | Change (%) | | 2023 | | 2022 | | Change (%) |
| Financial Results | Financial Results | | | | | | | | | | | | | Financial Results | | | | | | |
| Revenue | Revenue | | $ | 166,627 | | | $ | 322,846 | | | (48.4) | % | | $ | 841,656 | | | $ | 1,066,280 | | | (21.1) | % | Revenue | | $ | 314,614 | | | $ | 355,446 | | | (11.5) | % |
| Production costs | | $ | 106,452 | | | $ | 154,521 | | | (31.1) | % | | $ | 424,900 | | | $ | 483,330 | | | (12.1) | % | |
Cost of sales (1) | | Cost of sales (1) | | $ | 199,297 | | | $ | 153,520 | | | 29.8 | % |
| Operating income | Operating income | | $ | (35,064) | | | $ | 92,659 | | | (137.8) | % | | $ | 150,901 | | | $ | 325,559 | | | (53.6) | % | Operating income | | $ | 36,985 | | | $ | 115,870 | | | (68.1) | % |
| Net income (loss) | Net income (loss) | | $ | (28,372) | | | $ | 64,179 | | | (144.2) | % | | $ | 115,251 | | | $ | 269,423 | | | (57.2) | % | Net income (loss) | | $ | 29,004 | | | $ | 76,106 | | | (61.9) | % |
| Net income (loss) attributable to equity holders of SSR Mining | | $ | (25,793) | | | $ | 57,060 | | | (145.2) | % | | $ | 100,256 | | | $ | 240,641 | | | (58.3) | % | |
| Basic net income (loss) per share attributable to equity holders of SSR Mining | | $ | (0.12) | | | $ | 0.27 | | | (144.4) | % | | $ | 0.48 | | | $ | 1.11 | | | (56.8) | % | |
| Net income (loss) attributable to SSR Mining shareholders | | Net income (loss) attributable to SSR Mining shareholders | | $ | 29,813 | | | $ | 67,563 | | | (55.9) | % |
| Basic net income (loss) per share attributable to shareholders of SSR Mining | | Basic net income (loss) per share attributable to shareholders of SSR Mining | | $ | 0.14 | | | $ | 0.32 | | | (56.3) | % |
Adjusted attributable net income (loss) (1)(2) | Adjusted attributable net income (loss) (1)(2) | | $ | (13,533) | | | $ | 88,265 | | | (115.3) | % | | $ | 119,234 | | | $ | 303,498 | | | (60.7) | % | Adjusted attributable net income (loss) (1)(2) | | $ | 21,274 | | | $ | 65,942 | | | (67.7) | % |
Adjusted basic attributable net income (loss) per share (1)(2) | Adjusted basic attributable net income (loss) per share (1)(2) | | $ | (0.07) | | | $ | 0.41 | | | (117.1) | % | | $ | 0.57 | | | $ | 1.40 | | | (59.3) | % | Adjusted basic attributable net income (loss) per share (1)(2) | | $ | 0.10 | | | $ | 0.31 | | | (67.7) | % |
Adjusted diluted attributable net income (loss) per share (1)(2) | Adjusted diluted attributable net income (loss) per share (1)(2) | | $ | (0.07) | | | $ | 0.40 | | | (117.5) | % | | $ | 0.55 | | | $ | 1.34 | | | (59.0) | % | Adjusted diluted attributable net income (loss) per share (1)(2) | | $ | 0.10 | | | $ | 0.30 | | | (66.7) | % |
| | Operating Results | Operating Results | | Operating Results | |
| Gold produced (oz) | Gold produced (oz) | | 76,462 | | | 157,613 | | | (51.5) | % | | 368,972 | | | 498,402 | | | (26.0) | % | Gold produced (oz) | | 122,821 | | | 157,011 | | | (21.8) | % |
| Gold sold (oz) | Gold sold (oz) | | 72,035 | | | 156,343 | | | (53.9) | % | | 375,543 | | | 503,195 | | | (25.4) | % | Gold sold (oz) | | 126,111 | | | 157,179 | | | (19.8) | % |
| Silver produced ('000 oz) | Silver produced ('000 oz) | | 2,738 | | | 2,184 | | | 25.4 | % | | 6,008 | | | 5,966 | | | 0.7 | % | Silver produced ('000 oz) | | 2,015 | | | 1,303 | | | 54.6 | % |
| Silver sold ('000 oz) | Silver sold ('000 oz) | | 2,234 | | | 1,486 | | | 50.3 | % | | 5,766 | | | 5,349 | | | 7.8 | % | Silver sold ('000 oz) | | 2,382 | | | 1,760 | | | 35.3 | % |
Lead produced ('000 lb) (2)(3) | Lead produced ('000 lb) (2)(3) | | 11,390 | | | 10,571 | | | 7.7 | % | | 27,582 | | | 26,377 | | | 4.6 | % | Lead produced ('000 lb) (2)(3) | | 11,361 | | | 7,303 | | | 55.6 | % |
Lead sold ('000 lb) (2)(3) | Lead sold ('000 lb) (2)(3) | | 9,169 | | | 6,843 | | | 34.0 | % | | 28,255 | | | 20,630 | | | 37.0 | % | Lead sold ('000 lb) (2)(3) | | 13,370 | | | 10,212 | | | 30.9 | % |
Zinc produced ('000 lb) (2)(3) | Zinc produced ('000 lb) (2)(3) | | 1,590 | | | 3,420 | | | (53.5) | % | | 4,940 | | | 10,434 | | | (52.7) | % | Zinc produced ('000 lb) (2)(3) | | 2,480 | | | 1,843 | | | 34.6 | % |
Zinc sold ('000 lb) (2)(3) | Zinc sold ('000 lb) (2)(3) | | 1,050 | | | 1,964 | | | (46.5) | % | | 5,546 | | | 5,896 | | | (5.9) | % | Zinc sold ('000 lb) (2)(3) | | 3,687 | | | 3,129 | | | 17.8 | % |
| Gold equivalent produced (oz) (3)(4) | Gold equivalent produced (oz) (3)(4) | | 106,919 | | | 186,941 | | | (42.8) | % | | 441,164 | | | 583,316 | | | (24.4) | % | Gold equivalent produced (oz) (3)(4) | | 146,894 | | | 173,675 | | | (15.4) | % |
Gold equivalent sold (oz) (3)(4) | Gold equivalent sold (oz) (3)(4) | | 96,885 | | | 176,299 | | | (45.0) | % | | 444,827 | | | 579,331 | | | (23.2) | % | Gold equivalent sold (oz) (3)(4) | | 154,557 | | | 179,692 | | | (14.0) | % |
| | Average realized gold price ($/oz sold) | Average realized gold price ($/oz sold) | | $ | 1,710 | | | $ | 1,792 | | | (4.6) | % | | $ | 1,871 | | | $ | 1,804 | | | 3.7 | % | Average realized gold price ($/oz sold) | | $ | 1,902 | | | $ | 1,879 | | | 1.2 | % |
| Average realized silver price ($/oz sold) | Average realized silver price ($/oz sold) | | $ | 18.98 | | | $ | 24.06 | | | (21.1) | % | | $ | 22.99 | | | $ | 25.67 | | | (10.4) | % | Average realized silver price ($/oz sold) | | $ | 23.38 | | | $ | 24.08 | | | (2.9) | % |
| | Production cost per gold equivalent ounce sold | | $ | 1,099 | | | $ | 876 | | | 25.5 | % | | $ | 955 | | | $ | 834 | | | 14.5 | % | |
Cash cost per gold equivalent ounce sold (1, 3) | | $ | 1,051 | | | $ | 713 | | | 47.4 | % | | $ | 891 | | | $ | 698 | | | 27.7 | % | |
AISC per gold equivalent ounce sold (1, 3) | | $ | 1,901 | | | $ | 948 | | | 100.5 | % | | $ | 1,331 | | | $ | 952 | | | 39.8 | % | |
Cost of sales per gold equivalent ounce sold (1, 4) | | Cost of sales per gold equivalent ounce sold (1, 4) | | $ | 1,289 | | | $ | 854 | | | 50.9 | % |
Cash cost per gold equivalent ounce sold (2, 4) | | Cash cost per gold equivalent ounce sold (2, 4) | | $ | 1,204 | | | $ | 775 | | | 55.4 | % |
AISC per gold equivalent ounce sold (2, 4) | | AISC per gold equivalent ounce sold (2, 4) | | $ | 1,693 | | | $ | 1,093 | | | 54.9 | % |
(1)Excludes depreciation, depletion, and amortization.
(2)The Company reports non-GAAP financial measures including adjusted attributable net income (loss), adjusted basic attributable net income (loss) per share, cash costs and AISC per ounce sold to manage and evaluate its operating performance at its mines. See "Non-GAAP Financial Measures" for an explanation of these financial measures and a reconciliation of these financial measures to netNet income (loss) attributable to SSR Mining shareholdersand production costs,Cost of sales, which are the comparable GAAP financial measures.
(2)(3)Data for lead production and sales relate only to lead in lead concentrate. Data for zinc production and sales relate only to zinc in zinc concentrate.
(3)(4)Gold equivalent ounces are calculated multiplying the silver ounces by the ratio of the silver price to the gold price, using the average London Bullion Market Association (“LBMA”) prices for the period. The Company does not include by-products in the gold equivalent ounce calculations.
Revenue
For the three months ended September 30, 2022,March 31, 2023, revenue decreased by $156.2$40.8 million, or 48.4%11.5%, to $166.6$314.6 million, as compared to $322.8$355.4 million for the three months ended September 30, 2021.March 31, 2022. The decrease was mainly due to a decrease in19.8% fewer ounces of gold ounces sold of 53.9%, and a 4.6% decrease in average realized gold prices. At Çöpler, gold sales decreased by $135.6 million, or 97.0%, due to the temporary suspension of operations. At Marigold, gold sales decreased by $11.4 million, or 11.9%, due to fewer gold ounces sold and a 4.5% decrease in the average2.9% lower realized gold price. Marigold’s gold ounces produced remained consistent; however, ounces sold was lower due to the timing of sales. At Seabee, gold sales decreasedsilver prices, partially offset by $7.6 million, or 18.6%, due to a lower feed grade, accounting for 14.2% of the reduction and a 4.0% decrease in the average realized gold price. At Puna, sales increased by $3.8 million, or 9.2%, primarily due to 50.3%35.3% more ounces of silver sold partially offset by a 21.1% lower average realized silver price. The increase in silver ounces sold was due to higher silver mill feed grade.
For the nine months ended September 30, 2022, revenue decreased by $224.6 million, or 21.1%, to $841.7 million as compared to $1,066.3 million for the nine months ended September 30, 2021. The decrease was mainly due toand a reduction in total gold equivalent ounces sold of 23.2%, partially offset by a 3.7% 1.2% increase in average realized gold prices. At Çöpler, gold sales decreased by $183.9 million, or 42.6%, due to the temporary suspension of operations. At Marigold, gold sales decreased by $82.6 million, or 25.7%,due to 25.6% fewer gold ounces sold, offset partially by a 3.3% increase in the average realized gold price. Marigold’s gold ounces sold decreased as a result of fewer tonnes stacked in the nine months prior to production and fewer ounces leached as the result of slower leaching due to fines in the ore from the north pits. At Seabee, gold sales increased by $49.5 million, or 32.2%, due to a 4.5% increase in the average realized gold price and 28.8% more gold ounces sold. Seabee gold ounces sold increased as the result of high mill feed grade. At Puna, sales were in line with the prior period as Puna sold 7.8% more ounces of silver at a 10.4% lower realized silver price.
Production costsCost of sales
Production costs decreasedCost of sales increased by $48.1$45.8 million, or 31.1%29.8%, to $106.5$199.3 million for the three months ended September 30, 2022,March 31, 2023, as compared to $154.5$153.5 million for the three months ended September 30, 2021. During the three months ended September 30, 2022, 53.9% fewer ounces of gold were sold and 50.3% higher ounces of silver were sold compared to the same period in 2021. Production costs decreased $65.5 million, or 99.5%, at Çöpler due to the temporary suspension of operations. Production costs at Marigold increased $3.4 million, or 6.8%,March 31, 2022. The increase was mainly due to higher fueloperating costs and reagent costs. Productioninflationary pressure on costs at Seabee increased $2.8 million, or 18.7%, due. For a complete discussion of costs of sales by site, refer to higher operational costs resulting from inflationary pressures. At Puna, production costs increased $11.2 million, or 47.8%, primarily due to increased cost pressures for fuel, electricity, and reagents in Argentina.the Results of Operations below.
Production costs decreased by $58.4 million, or 12.1%, to $424.9 million for the nine months ended September 30, 2022, as compared to $483.3 million for the nine months ended September 30, 2021. During the nine months ended September 30, 2022, 25.4% fewer ounces of gold were sold and 7.8% more ounces of silver were sold compared to the same period in 2021. Çöpler production costs decreased $75.9 million, or 37.6%, due to the temporary suspension of operations during the third quarter of 2022. Production costs at Marigold decreased $12.7 million, or 8.2%, due to 25.6% fewer ounces sold, partially offset by higher fuel costs. Production costs at Seabee increased $6.2 million, or 13.2%, due to a 28.8% increase in gold ounces sold, higher operational and equipment maintenance costs and inflationary pressures. At Puna, production costs increased $24.0 million, or 30.5%, primarily due to increased cost pressures for fuel, electricity, and reagents in Argentina.
Depreciation, depletion and amortization
| | | Three Months Ended September 30, | | Nine Months Ended September 30, | | Three Months Ended March 31, |
| | 2022 | | 2021 | | Change (%) | | 2022 | | 2021 | | Change (%) | | 2023 | | 2022 | | Change (%) |
| Depreciation, depletion, and amortization ($000s) | Depreciation, depletion, and amortization ($000s) | $ | 21,555 | | | $ | 51,958 | | | (58.5) | % | | $ | 134,145 | | | $ | 161,731 | | | (17.1) | % | Depreciation, depletion, and amortization ($000s) | $ | 47,095 | | | $ | 58,742 | | | (19.8) | % |
| Gold equivalent ounces sold | Gold equivalent ounces sold | | 96,885 | | | 176,299 | | | (45.0) | % | | 444,827 | | | 579,331 | | | (23.2) | % | Gold equivalent ounces sold | | 154,557 | | | 179,692 | | | (14.0) | % |
| Depreciation, depletion, and amortization per gold equivalent ounce sold | Depreciation, depletion, and amortization per gold equivalent ounce sold | $ | 222 | | | $ | 295 | | | (24.7) | % | | $ | 302 | | | $ | 279 | | | 8.2 | % | Depreciation, depletion, and amortization per gold equivalent ounce sold | $ | 305 | | | $ | 327 | | | (6.7) | % |
Depreciation, depletion, and amortization (“DD&A”) expense decreased by $30.4$11.6 million, or 58.5%19.8%, to $21.6$47.1 million for the three months ended September 30, 2022,March 31, 2023, as compared to $52.0$58.7 million for the three months ended September 30, 2021,March 31, 2022, primarily due to a decrease in gold equivalent ounces sold as a result of the temporary suspension of operations at Çöpler. DD&A expense during the temporary suspension of operations at Çöpler were included in Care and maintenance.
DD&A expense decreased by $27.6 million, or 17.1%, to $134.1 million for the nine months ended September 30, 2022, as compared to $161.7 million for the nine months ended September 30, 2021, primarily due to lower DD&A at Çöpler as a result of the temporary suspension of operations during the third quarter of 2022.
General and administrative expense
General and administrative expense for the three months ended September 30, 2022 was consistent withMarch 31, 2023 increased by $2.3 million compared to the three months ended September 30, 2021.
General and administrative expense for the nine months ended September 30, 2022 was $48.4 million as compared to $34.9 million for the nine months ended September 30, 2021March 31, 2022. . General and administrative expenses increased primarily due to a $9.0 million increase in wagehigher consulting fees partially offset by lower employee and benefit expenses and consulting expenses, and a $4.2 million increase in office, travel, and insurance expenses.stock-based compensation.
Exploration, evaluation and reclamation costs
Exploration, evaluation, and reclamation costs increased by $7.3$2.8 million for the three months ended September 30, 2022 and by $7.1 million for the nine months ended September 30, 2022March 31, 2023 compared to the same periodsperiod in 2021.2022 as the Company has committed to additional exploration during the year to support growth and resource conversion across the portfolio. For the three months ended September 30, 2022,March 31, 2023, the year over year increase was primarily due to a $5.1$2.0 million increase in exploration drilling compared to the same period in 2021. For the nine months ended September 30, 2022, the increases are due to $3.1 million increase for more exploration drilling, and a $3.5$0.8 million increase in reclamation accretion expense compared to the same period in 2021.expense.
Care and maintenance
Care and maintenance expense was $41.8 million for the three and nine months ended September 30, 2022. Care and maintenance expense represents direct costs and depreciation incurred at Çöpler during the temporary suspension of operations in place for the majority of the quarter ended September 30, 2022.
Impairment of long-lived and other assets
No impairment was recognized for the three and nine months ended September 30, 2022. Impairment loss for the nine months ended September 30, 2021 was $22.4 million. During 2021, the Company recognized an impairment loss related to the Royalty Portfolio sold on October 21, 2021, based on the difference between the carrying amount of the assets within the Royalty Portfolio, and the estimated net transaction price.
Other operating expenses, net
Other operating expenses, net for the three months ended September 30, 2022 were $1.5 million as compared to $0.7 million for the three months ended September 30, 2021. The expenses incurred during the third quarter of 2022 were transaction costs related to the sale of the Pitarrilla project. The expenses incurred during the third quarter of 2021 related to the integration activities related to the merger with Alacer and as the result of the Company's transition from a foreign private issuer to a domestic filer under SEC reporting requirements.
Other operating expenses, net for the nine months ended September 30, 2022 were $2.7 million as compared to $6.1 million for the nine months ended September 30, 2021. The expenses incurred during the nine months ended September 30, 2022 were related to transaction costs incurred for the sale of the Pitarrilla project and the Company’s transition from a foreign private issuer to a domestic filer under SEC reporting requirements that occurred earlier in 2022. The expenses incurred during the nine months ended September 30, 2021 were associated with the integration activities related to the merger with Alacer and charges for transition from a foreign private issuer to a domestic filer under SEC reporting requirements, which began in 2021.
Gain on sale of assets
Gain on sale of assets for the three and nine months ended September 30, 2022 was $0.6 million, which is the result of the disposal of the Pitarrilla project. There was no gain on sale of assets recognized in 2021.
Interest expense
Interest expense for the three months ended September 30, 2022March 31, 2023 and 2021 remained consistent. Interest expense for the nine months ended September 30, 2022 was $13.1 million as compared to $14.6 million for the nine months ended September 30, 2021 due to less interest incurred on the Term Loan at Çöpler as repayments were made on the principal balance throughout 2021 and 2022.consistent year over year.
Other income (expense)
Other income for the three months ended September 30, 2022March 31, 2023 was $9.2$13.1 million as compared to an expense of $6.9$0.4 million for the three months ended September 30, 2021.March 31, 2022. The change is primarily due to an increase in interest income of $4.8$6.1 million due to higher interest rates and the fluctuation on other gains (losses) of $4.7 million. Additionally, for the three months ended September 30, 2022 and 2021, the Company recognized a lossan increase in gain on marketable securities of $37.0 thousand and a gain of $4.5 million, respectively.
Other income for the nine months ended September 30, 2022 was $6.4 million as compared to an expense of $8.6 million for the nine months ended September 30, 2021. The change is mainly due to an increase in interest income of $7.7 million during 2022 and the fluctuation of other gains (losses) of $2.4$6.0 million. Additionally, for the nine months ended September 30, 2022 and 2021, the Company recognized a loss on marketable securities of $3.8 and $6.5 million, respectively.
Foreign exchange gain (loss)
Foreign exchange loss for the three months ended September 30, 2022March 31, 2023 was $11.6$13.2 million compared to a loss of $1.6$3.3 million for the three months ended September 30, 2021.March 31, 2022. The Company's main foreign exchange exposures are related to net monetary assets and liabilities denominated in TRY, ARS and CAD. During the three months ended September 30, 2022 and 2021, the foreign exchange loss was mainly due to a weakening of the ARS against the USD and its impact on ARS-denominated assets at Puna.
Foreign exchange loss for the nine months ended September 30, 2022 was $19.7 million compared to a loss of $2.9 million for the nine months ended September 30, 2021. The Company's main foreign exchange exposures are related to net monetary assets and liabilities denominatedincrease in TRY, ARS and CAD. During the nine months ended September 30, 2022 and 2021, the foreign exchange loss was mainly due to a weakening of the ARS against the USD and its impact on ARS-denominated assets at Puna partially offset by aand the weakening of the TRY against the USD and its impact on TRY-denominated liabilitiesassets at Çöpler.
Income and mining tax benefit (expense)
Income and mining tax benefitexpense for the three months ended September 30, 2022March 31, 2023 was $13.8$2.8 million as compared to an expense of $14.3$31.6 million for the three months ended September 30, 2021.March 31, 2022. The decrease in tax expense was primarily as a result of a decrease of revenue at our Seabee operations, foreign currency fluctuations and the devaluationrelease of the ARS and TRY relative to the USD,uncertain tax positions, although these tax benefit drivers were partially offset by an uncertain tax position.
Income and miningreturn adjustments, largely due to retroactive earthquake tax expense for the nine months ended September 30, 2022 was $8.8 million as compared to $27.5 million for the nine months ended September 30, 2021. The decrease in tax expense was primarily as a result of the devaluation of the ARS and TRY relative to the USD, partially offset by increased withholding taxes on dividends and an uncertain tax position.assessments.
Results of Operations
Çöpler, Türkiye
| | | Three Months Ended September 30, | | Nine Months Ended September 30, | | Three Months Ended March 31, |
| Operating Data | Operating Data | 2022 | | 2021 | | Change (%) | | 2022 | | 2021 | | Change (%) | Operating Data | 2023 | | 2022 | | Change (%) |
| Gold produced (oz) | Gold produced (oz) | | 3,733 | | | | 82,975 | | | (95.5) | % | | | 125,763 | | | | 237,207 | | | (47.0) | % | Gold produced (oz) | | 55,074 | | | | 70,641 | | | (22.0) | % |
| Gold sold (oz) | Gold sold (oz) | | 2,591 | | | 80,054 | | | (96.8) | % | | 132,862 | | | 239,428 | | | (44.5) | % | Gold sold (oz) | | 58,014 | | | 72,425 | | | (19.9) | % |
Average realized gold price ($/oz sold) | Average realized gold price ($/oz sold) | $ | 1,641 | | | $ | 1,793 | | | (8.5) | % | | $ | 1,869 | | | $ | 1,805 | | | 3.5 | % | Average realized gold price ($/oz sold) | $ | 1,890 | | | $ | 1,873 | | | 0.9 | % |
| | Production costs | $ | 306 | | | $ | 65,773 | | | (99.5) | % | | $ | 125,985 | | | $ | 201,927 | | | (37.6) | % | |
| Production costs ($/oz gold sold) | $ | 118 | | | $ | 822 | | | (85.6) | % | | $ | 948 | | | $ | 843 | | | 12.5 | % | |
| Ore mined (kt) | | Ore mined (kt) | | 1,179 | | | 1,011 | | | 16.6 | % |
| Waste removed (kt) | | Waste removed (kt) | | 5,375 | | | 5,135 | | | 4.7 | % |
| Total material mined (kt) | | Total material mined (kt) | | 6,554 | | | 6,146 | | | 6.6 | % |
| Cash costs ($/oz gold sold) (1) | $ | 160 | | | $ | 589 | | | (72.8) | % | | $ | 928 | | | $ | 619 | | | 49.9 | % | |
AISC ($/oz gold sold) (1) | $ | 14,972 | | | $ | 724 | | | 1968.0 | % | | $ | 1,351 | | | $ | 761 | | | 77.5 | % | |
| Ore milled (kt) | | Ore milled (kt) | | 724 | | | 645 | | | 12.2 | % |
| Gold mill feed grade (g/t) | | Gold mill feed grade (g/t) | | 2.47 | | | 3.32 | | | (25.6) | % |
| Gold recovery (%) | | Gold recovery (%) | | 87.7 | | 87.0 | | | 0.8 | % |
| | Ore stacked (kt) | | Ore stacked (kt) | | 188 | | | 63 | | | 198.4 | % |
| Gold grade stacked (g/t) | | Gold grade stacked (g/t) | | 1.22 | | | 0.78 | | | 56.4 | % |
| Cost of sales (1) | | Cost of sales (1) | $ | 74,646 | | | $ | 62,584 | | | 19.3 | % |
Cost of sales ($/oz gold sold) (1) | | Cost of sales ($/oz gold sold) (1) | $ | 1,287 | | | $ | 864 | | | 49.0 | % |
Cash costs ($/oz gold sold) (2) | | Cash costs ($/oz gold sold) (2) | $ | 1,272 | | | $ | 844 | | | 50.7 | % |
AISC ($/oz gold sold) (2) | | AISC ($/oz gold sold) (2) | $ | 1,420 | | | $ | 955 | | | 48.7 | % |
(1)Excludes depreciation, depletion, and amortization.
(2)The Company reports the non-GAAP financial measures of cash costs and AISC per ounce of gold sold to manage and evaluate operating performance at Çöpler. See "Non-GAAP Financial Measures" for an explanation of these financial measures and a reconciliation to production costs,Cost of sales, which areis the comparable GAAP financial measure. For the three and nine
Three months ended September 30,March 31, 2023 compared to three months ended March 31, 2022 cash
Gold production decreased 22.0% due to lower grade sulfide ore milled. Revenue decreased by $26.9 million, or 19.6%, of which $27.9 million was the result of lower volume of gold sold partially offset by a $1.0 million increase as a result of higher average realized gold price. Cost of sales increased by 19.3% as a result of higher oxygen, electricity and sulfuric acid consumption and unit costs, and community donations. Cost of sales per ounce of gold sold, Cash costs per ounce of gold sold, and AISC per ounce of gold sold include the impact of any fair value adjustment on acquired inventories. For the threeincreased 49.0%, 50.7%, and nine months ended September 30, 2021, cash costs and AISC per ounce of gold sold exclude the impact of any fair value adjustment on acquired inventories.
Production and Production Costs
For the three months ended September 30, 2022 and 2021, Çöpler produced 3,733 and 82,975 ounces of gold, respectively. For the nine months ended September 30, 2022 and 2021, Çöpler produced 125,763 and 237,207 ounces of gold, respectively. Further, production costs for the three and nine months ended September 30, 2022 were $0.3 million and $126.0 million, decreases of 99.5% and 37.6%48.7%, respectively, compared to the three and nine months ended September 30, 2021. Lower production and production costs for the three and nine months ended September 30, 2022, are due to the temporary suspension of operations that occurred through the third quarter.
Cash Costs
For the three months ended September 30, 2022 and 2021, cash costs per ounce of gold sold were $160 and $589, respectively. The decrease is due the reduction in production costs for the period given the suspension of operations through September 22, 2022.
For the nine months ended September 30, 2022 and 2021, cash costs per ounce of gold sold were $928 and $619, respectively. The increase is mainly due to 44.5% fewer gold ounces sold due to lower sulfide grades mined and fewer oxide ounces stacked on the leach pad, in addition to higher reagent unit prices during the nine months ended September 30, 2022 compared to the same period in 2021.
AISC
For the three months ended September 30, 2022 and 2021, AISC per ouncecost of gold sold were $14,972 and $724, respectively. The increase in 2022 is due to lower ounces sold due to the temporary suspension of operations. For the nine months ended September 30, 2022 and 2021, AISC per ounce of gold sold were $1,351 and $761, respectively. The increases are due to 44.5% fewer gold ounces sold during the nine months ended September 30, 2022, compared to the same periods in 2021 due to the temporary suspension of operations that occurred for the majority of the third quarter of 2022.
Marigold, USA
| | | Three Months Ended September 30, | | Nine Months Ended September 30, | | Three Months Ended March 31, |
| Operating Data | Operating Data | 2022 | | 2021 | | Change (%) | | 2022 | | 2021 | | Change (%) | Operating Data | 2023 | | 2022 | | Change (%) |
| Gold produced (oz) | Gold produced (oz) | | 52,236 | | | | 52,049 | | | 0.4 | % | | | 131,793 | | | | 177,877 | | | (25.9) | % | Gold produced (oz) | | 51,979 | | | | 33,788 | | | 53.8 | % |
| Gold sold (oz) | Gold sold (oz) | | 49,744 | | | 53,339 | | | (6.7) | % | | 132,681 | | | 178,351 | | | (25.6) | % | Gold sold (oz) | | 51,297 | | | 36,954 | | | 38.8 | % |
Average realized gold price ($/oz sold) | Average realized gold price ($/oz sold) | $ | 1,712 | | | $ | 1,793 | | | (4.5) | % | | $ | 1,862 | | | $ | 1,802 | | | 3.3 | % | Average realized gold price ($/oz sold) | $ | 1,913 | | | $ | 1,821 | | | 5.1 | % |
| | Production costs | $ | 53,684 | | | $ | 50,281 | | | 6.8 | % | | $ | 142,841 | | | $ | 155,582 | | | (8.2) | % | |
| Production costs ($/oz gold sold) | $ | 1,079 | | | $ | 943 | | | 14.4 | % | | $ | 1,077 | | | $ | 872 | | | 23.5 | % | |
| Ore mined (kt) | | Ore mined (kt) | | 5,367 | | | 4,820 | | | 11.3 | % |
| Waste removed (kt) | | Waste removed (kt) | | 17,029 | | | 19,788 | | | (13.9) | % |
| Total material mined (kt) | | Total material mined (kt) | | 22,396 | | | 24,608 | | | (9.0) | % |
| Cash costs ($/oz gold sold) (1) | $ | 1,081 | | | $ | 943 | | | 14.6 | % | | $ | 1,078 | | | $ | 870 | | | 23.9 | % | |
AISC ($/oz gold sold) (1) | $ | 1,444 | | | $ | 1,127 | | | 28.1 | % | | $ | 1,482 | | | $ | 1,140 | | | 30.0 | % | |
| Ore stacked (kt) | | Ore stacked (kt) | | 5,367 | | | 4,820 | | | 11.3 | % |
| Gold grade stacked (g/t) | | Gold grade stacked (g/t) | | 0.42 | | | 0.39 | | | 7.7 | % |
| Cost of sales (1) | | Cost of sales (1) | $ | 54,541 | | | $ | 38,735 | | | 40.8 | % |
Cost of sales ($/oz gold sold) (1) | | Cost of sales ($/oz gold sold) (1) | $ | 1,063 | | | $ | 1,048 | | | 1.4 | % |
Cash costs ($/oz gold sold) (2) | | Cash costs ($/oz gold sold) (2) | $ | 1,066 | | | $ | 1,048 | | | 1.7 | % |
AISC ($/oz gold sold) (2) | | AISC ($/oz gold sold) (2) | $ | 1,663 | | | $ | 1,564 | | | 6.3 | % |
(1)Excludes depreciation, depletion, and amortization.
(2)The Company reports the non-GAAP financial measures of cash costs and AISC per ounce of gold sold to manage and evaluate operating performance at Marigold. See "Non-GAAP Financial Measures" for an explanation of these financial measures and a reconciliation to production costs,Cost of sales, which areis the comparable GAAP financial measure.
Production and Production Costs
The ounces of gold produced remained consistent for theThree months ended March 31, 2023 compared to three months ended September 30,March 31, 2022
Gold production increased 53.8% due to higher grade and 2021. For the nine months ended September 30, 2022 and 2021, Marigold produced 131,793 and 177,877 ouncesmore tonnes stacked. Revenue increased by $29.3 million or 42.5%, of gold, respectively. The production decrease in 2022which $26.7 million was primarily the result of fewer tonnes stacked inhigher volume of gold sold and $2.6 million was the nine months priorresult of higher average realized gold price. Cost of sales increased 40.8% due to production.
Production costs for the three months ended September 30, 2022 were $53.7 million, an increasehigher royalty expense as a result of 6.8% compared to the three months ended September 30, 2021. Production costs per ouncemore gold ounces sold, increased primarily due tousage of equipment components and repair parts, and higher fuel and reagent costs.
Production costs for the nine months ended September 30, 2022 were $142.8 million, a decrease Cost of 8.2% compared to the nine months ended September 30, 2021. Production costs were lower due to fewer ounces produced, partially offset by higher production costs per ounce. Production costssales per ounce of gold sold were 23.5% higher due to higher fuel and reagent costs as well as fewer gold ounces leached as the result of slower leaching due to fines in the ore from the north pits.
Cash Costs
For the three months ended September 30, 2022 and 2021, cash costs per ounce of gold sold were $1,081 and $943, respectively. For the nine months ended September 30, 2022 and 2021, cash costs per ounce ofremained consistent despite an increase in gold sold were $1,078 and $870, respectively. The increases in cash costs per ounce are theas a result of increases in production costs per ounce.
AISC
For the three months ended September 30, 2022 and 2021,higher cost of sales. AISC per ounce of gold sold was $1,444 and $1,127, respectively. The increase is due to increases in cash cost per ounceincreased 6.3% as well asa result of higher sustaining capital due to componentization, leach pad construction, and dewatering costs.
For the nine months ended September 30, 2022 and 2021, AISC per ounce of gold sold was $1,482 and $1,140, respectively. The increase is mainly dueexpenditures related to the increase in cash costs per ounce as well as higher sustaining capital related to dewatering and leach pad construction costs, partially offset by lower componentization costs.
Seabee, Canada
| | | Three Months Ended September 30, | | Nine Months Ended September 30, | | Three Months Ended March 31, |
| Operating Data | Operating Data | 2022 | | 2021 | | Change (%) | | 2022 | | 2021 | | Change (%) | Operating Data | 2023 | | 2022 | | Change (%) |
| Gold produced (oz) | Gold produced (oz) | | 20,493 | | | | 22,589 | | | (9.3) | % | | | 111,416 | | | | 83,318 | | | 33.7 | % | Gold produced (oz) | | 15,768 | | | | 52,582 | | | (70.0) | % |
| Gold sold (oz) | Gold sold (oz) | | 19,700 | | | 22,950 | | | (14.2) | % | | 110,000 | | | 85,416 | | | 28.8 | % | Gold sold (oz) | | 16,800 | | | 47,800 | | | (64.9) | % |
Average realized gold price ($/oz sold) | Average realized gold price ($/oz sold) | $ | 1,714 | | | $ | 1,786 | | | (4.0) | % | | $ | 1,884 | | | $ | 1,803 | | | 4.5 | % | Average realized gold price ($/oz sold) | $ | 1,910 | | | $ | 1,860 | | | 2.7 | % |
| | Production costs | $ | 17,894 | | | $ | 15,077 | | | 18.7 | % | | $ | 53,319 | | | $ | 47,105 | | | 13.2 | % | |
| Production costs ($/oz gold sold) | $ | 908 | | | $ | 657 | | | 38.2 | % | | $ | 485 | | | $ | 551 | | | (12.0) | % | |
| Ore mined (kt) | | Ore mined (kt) | | 99 | | | 103 | | | (3.0) | % |
| Cash costs ($/oz gold sold) (1) | $ | 910 | | | $ | 606 | | | 50.2 | % | | $ | 486 | | | $ | 513 | | | (5.3) | % | |
AISC ($/oz gold sold) (1) | $ | 1,304 | | | $ | 914 | | | 42.7 | % | | $ | 735 | | | $ | 830 | | | (11.4) | % | |
| | | Ore milled (kt) | | Ore milled (kt) | | 112 | | | 95 | | | 19.0 | % |
| Gold mill feed grade (g/t) | | Gold mill feed grade (g/t) | | 4.60 | | | 17.77 | | | (74.1) | % |
| Gold recovery (%) | | Gold recovery (%) | | 96.1 | | | 98.6 | | | (2.5) | % |
| Cost of sales (1) | | Cost of sales (1) | $ | 23,265 | | | $ | 16,410 | | | 41.8 | % |
Cost of sales ($/oz gold sold) (1) | | Cost of sales ($/oz gold sold) (1) | $ | 1,385 | | | $ | 343 | | | 303.8 | % |
Cash costs ($/oz gold sold) (2) | | Cash costs ($/oz gold sold) (2) | $ | 1,386 | | | $ | 344 | | | 302.9 | % |
AISC ($/oz gold sold) (2) | | AISC ($/oz gold sold) (2) | $ | 2,207 | | | $ | 596 | | | 270.3 | % |
(1)Excludes depreciation, depletion, and amortization.
(2)The Company reports the non-GAAP financial measures of cash costs and AISC per ounce of gold sold to manage and evaluate operating performance at Seabee. See "Non-GAAP Financial Measures" for an explanation of these financial measures and a reconciliation to production costs,Cost of sales, which areis the comparable GAAP financial measure.
Production and Production Costs
For theThree months ended March 31, 2023 compared to three months ended September 30,March 31, 2022
Gold production decreased 70.0% due to lower grade ore milled and 2021, Seabee produced 20,493 and 22,589 ounceslower recoveries. Revenue decreased by $58.8 million, or 64.7%, of which $58.9 million was the result of lower volume of gold respectively. The 9.3% decrease is due to the lower mill feed grade. For the nine months ended September 30, 2022sold and 2021, Seabee produced 111,416 and 83,318 ounces of gold, respectively. The 33.7% increase$0.1 million was the result of higher mill feed grade andaverage realized gold price. Cost of sales increased mine and mill productivity levels.
Production costs for the three and nine months ended September 30, 2022 were $17.9 million and $53.3 million, increases41.8% as a result of 18.7% and 13.2%, respectively, compared to the three and nine months ended September 30, 2021. The cost increases are due to inflationary pressures on operational and equipmenthigher mobile maintenance costs, rental equipment costs, and increased utilization of contractors for higher production. Production costswinter road construction. Cost of sales per ounce of gold sold for the three months ended were $908 as compared to $657 for the three months ended September 30, 2021 due to lower mill feed grade. Production costs per ounce sold was 12.0% lower for the nine months ended September 30, 2022 as compared to 2021 due to higher mill feed grade.
Cash Costs
For the three months ended September 30, 2022 and 2021, cash costs per ounce of gold sold were $910increased 303.8% and $606, respectively. The increase is primarily302.9%, respectively, due to higher production costs per ounce and a 14.2% decrease infewer gold ounces sold during the three months ended September 30, 2022. For the nine months ended September 30, 2022 and 2021, cash costs per ouncehigher cost of gold sold were $486 and $513, respectively. The decrease is mainly due to a 28.8% increase in gold ounces sold during the nine months ended September 30, 2022 compared to the same period in 2021 as the result of higher mill feed grade and productivity improvements achieved during 2022.
AISC
For the three months ended September 30, 2022 and 2021,sales. AISC per ounce of gold sold were $1,304 and $914, respectively. The increase is primarilyincreased 270.3% due to the higher cash costs per ounce.
For the nine months ended September 30, 2022 and 2021, AISC per ounce of gold sold were $735 and $830, respectively. The decrease is mainly due to lower cash costs per ounce and morefewer gold ounces sold, ashigher cost of sales, and an increase in capital expenditures related to underground mine development and machinery and equipment purchases delivered over the result of higher mill feed grade and productivity improvements achieved during 2022.
Puna, Argentina
| | | Three Months Ended September 30, | | Nine Months Ended September 30, | | Three Months Ended March 31, |
| Operating Data | Operating Data | 2022 | | 2021 | | Change (%) | | 2022 | | 2021 | | Change (%) | Operating Data | 2023 | | 2022 | | Change (%) |
| Silver produced ('000 oz) | Silver produced ('000 oz) | | 2,738 | | | | 2,184 | | | 25.4 | % | | | 6,008 | | | | 5,966 | | | 0.7 | % | Silver produced ('000 oz) | | 2,015 | | | | 1,303 | | | 54.6 | % |
| Silver sold ('000 oz) | Silver sold ('000 oz) | | 2,234 | | | 1,486 | | | 50.3 | % | | 5,766 | | | 5,349 | | | 7.8 | % | Silver sold ('000 oz) | | 2,382 | | | 1,760 | | | 35.3 | % |
| Lead produced ('000 lb) | Lead produced ('000 lb) | | 11,390 | | | 10,571 | | | 7.7 | % | | 27,582 | | | 26,377 | | | 4.6 | % | Lead produced ('000 lb) | | 11,361 | | | 7,303 | | | 55.6 | % |
| Lead sold ('000 lb) | Lead sold ('000 lb) | | 9,169 | | | 6,843 | | | 34.0 | % | | 28,255 | | | 20,630 | | | 37.0 | % | Lead sold ('000 lb) | | 13,370 | | | 10,212 | | | 30.9 | % |
| Zinc produced ('000 lb) | Zinc produced ('000 lb) | | 1,590 | | | 3,420 | | | (53.5) | % | | 4,940 | | | 10,434 | | | (52.7) | % | Zinc produced ('000 lb) | | 2,480 | | | 1,843 | | | 34.6 | % |
| Zinc sold ('000 lb) | Zinc sold ('000 lb) | | 1,050 | | | 1,964 | | | (46.5) | % | | 5,546 | | | 5,896 | | | (5.9) | % | Zinc sold ('000 lb) | | 3,687 | | | 3,129 | | | 17.8 | % |
Gold equivalent sold ('000 oz) (2)(1) | Gold equivalent sold ('000 oz) (2)(1) | | 24,850 | | | 19,956 | | | 24.5 | % | | 69,284 | | | 76,136 | | | (9.0) | % | Gold equivalent sold ('000 oz) (2)(1) | | 28,446 | | | 22,513 | | | 26.4 | % |
| Average realized silver price ($/oz) | Average realized silver price ($/oz) | | 18.98 | | | 24.06 | | | (21.1) | % | | 22.99 | | | 25.67 | | | (10.4) | % | Average realized silver price ($/oz) | $ | 23.38 | | | $ | 24.08 | | | (2.9) | % |
| | Production costs | $ | 34,568 | | | $ | 23,390 | | | 47.8 | % | | $ | 102,755 | | | $ | 78,716 | | | 30.5 | % | |
| Production costs ($/oz silver sold) | $ | 15.47 | | | $ | 15.74 | | | (1.7) | % | | $ | 17.82 | | | $ | 14.72 | | | 21.1 | % | |
Production costs ($/oz gold equivalent sold)(2) | $ | 1,391 | | | $ | 1,172 | | | 18.7 | % | | $ | 1,483 | | | $ | 1,034 | | | 43.4 | % | |
| Ore mined (kt) | | Ore mined (kt) | | 349 | | | 347 | | | 0.6 | % |
| Waste removed (kt) | | Waste removed (kt) | | 1,984 | | | 2,078 | | | (4.5) | % |
| Total material mined (kt) | | Total material mined (kt) | | 2,333 | | | 2,425 | | | (3.8) | % |
| Ore milled (kt) | | Ore milled (kt) | | 415 | | | 373 | | | 11.3 | % |
| Silver mill feed grade (g/t) | | Silver mill feed grade (g/t) | | 157.35 | | | 114.35 | | | 37.6 | % |
| Lead mill feed grade (%) | | Lead mill feed grade (%) | | 1.32 | | | 0.97 | | | 36.1 | % |
| Zinc mill feed grade (%) | | Zinc mill feed grade (%) | | 0.44 | | | 0.44 | | | — | % |
| Silver recovery (%) | | Silver recovery (%) | | 96.0 | | | 92.8 | | | 3.4 | % |
| Lead recovery (%) | | Lead recovery (%) | | 94.4 | | | 91.6 | | | 3.1 | % |
| Zinc recovery (%) | | Zinc recovery (%) | | 62.0 | | | 44.0 | | | 40.9 | % |
| Cash costs ($/oz silver sold) (1) | $ | 13.33 | | | $ | 9.65 | | | 38.1 | % | | $ | 13.31 | | | $ | 10.68 | | | 24.6 | % | |
Cash costs ($/oz gold equivalent sold)(1)(2) | $ | 1,199 | | | $ | 718 | | | 67.0 | % | | $ | 1,108 | | | $ | 750 | | | 47.7 | % | |
AISC ($/oz silver sold) (1) | $ | 15.91 | | | $ | 11.65 | | | 36.6 | % | | $ | 15.32 | | | $ | 12.73 | | | 20.3 | % | |
AISC ($/oz gold equivalent sold)(1)(2) | $ | 1,431 | | | $ | 868 | | | 64.9 | % | | $ | 1,275 | | | $ | 894 | | | 42.6 | % | |
Cost of sales (2) | | Cost of sales (2) | $ | 46,845 | | | $ | 35,791 | | | 30.9 | % |
Cost of sales ($/oz silver sold) (2) | | Cost of sales ($/oz silver sold) (2) | $ | 19.67 | | | $ | 20.34 | | | (3.3) | % |
Cost of sales ($/oz gold equivalent sold) (1, 2) | | Cost of sales ($/oz gold equivalent sold) (1, 2) | $ | 1,647 | | | $ | 1,590 | | | 3.6 | % |
Cash costs ($/oz silver sold) (3) | | Cash costs ($/oz silver sold) (3) | $ | 14.41 | | | $ | 13.06 | | | 10.3 | % |
Cash costs ($/oz gold equivalent sold) (1, 3) | | Cash costs ($/oz gold equivalent sold) (1, 3) | $ | 1,207 | | | $ | 1,021 | | | 18.2 | % |
AISC ($/oz silver sold) (3) | | AISC ($/oz silver sold) (3) | $ | 16.40 | | | $ | 14.67 | | | 11.8 | % |
AISC ($/oz gold equivalent sold) (1, 3) | | AISC ($/oz gold equivalent sold) (1, 3) | $ | 1,373 | | | $ | 1,147 | | | 19.7 | % |
(1)The Company reports the non-GAAP financial measures of cash costs and AISC per ounce of silver sold to manage and evaluate operating performance at Puna. See "Non-GAAP Financial Measures" for an explanation of these financial measures and a reconciliation to production costs, which are the comparable GAAP financial measure.
(2)Gold equivalent ounces are calculated multiplying the silver ounces by the ratio of the silver price to the gold price, using the average LBMA prices for the period. The Company does not include by-products in the gold equivalent ounce calculations.
(2)Excludes depreciation, depletion, and amortization.
(3)The Company reports the non-GAAP financial measures of cash costs and AISC per ounce of silver sold to manage and evaluate operating performance at Puna. See "Non-GAAP Financial Measures" for an explanation of these financial measures and a reconciliation to Cost of sales, which is the comparable GAAP financial measure.
Production and Production Costs
For theThree months ended March 31, 2023 compared to three months ended September 30,March 31, 2022 Puna produced 2.7 million ounces of silver, an increase of 25.4% as compared to the three months ended September 30, 2021. This was primarily
Silver production increased 54.6% due to more tonnes milled and higher mill feed grade. Revenue increased by $15.6 million, or 26.7%, of which $19.1 million was the result of higher volume of concentrate sold partially offset by a $3.5 million decrease as a result of lower average realized silver, grade. For the nine months ended September 30, 2022lead and 2021, silver ounces produced remained consistent.
Productionzinc price. Cost of sales increased 30.9% as a result of inflationary pressure on costs for the three months ended September 30, 2022 were $34.6 million, an increase of 47.8% as comparedmaterials and supplies, reagents, and fuel in addition to the three months ended September 30, 2021. The increase in production costs was primarily due to an increase inmore silver ounces sold. Production costsCost of sales per ounce of silver ounce sold were consistent year over year.
Production costs for the nine months ended September 30, 2022 were $102.8 million, an increase of 30.5%, as compared to the nine months ended September 30, 2021. The increase in production costs was primarilydecreased 3.3% due to a rise in the inflation rate in Argentina, causing overall costs to increase.
more silver ounces sold. Cash Costs
For the three months ended September 30, 2022 and 2021, cash costs per ounce of silver sold were $13.33 and $9.65, respectively. For the nine months ended September 30, 2022 and 2021, cash costs per ounce of silver sold were $13.31 and $10.68, respectively. The increases in cash cost per ounce of silver sold for the three and nine
months ended September 30, 2022 compared to the same periods of 2021 were primarily due to increased production costs, increased transportation costs10.3% due to higher international transport prices,cost of sales and lower by-product credits.
AISC
For the three months ended September 30, 2022treatment and 2021,refining costs partially offset by more silver ounces sold. AISC per ounce of silver sold were $15.91 and $11.65, respectively. The increase in AISC per ounce of silver was primarilyincreased 11.8% due to the higher cost of sales and cash costs, per ounce as well as higher sustaining capital expenditurespartially offset by more ounces sold, and higher sustaining exploration expense related to an increase in exploration drilling.
For the nine months ended September 30, 2022 and 2021, AISC per ounce of silver sold were $15.32 and $12.73, respectively. The increases in AISC per ounce of silver sold as well as higher sustaining exploration expense related to an increase in exploration drilling.drilling near Chinchillas.
Liquidity and Capital Resources
The Company manages its liquidity risk through a rigorous planning, budgeting and forecasting process, which is reviewed and updated on a regular basis, to help determine the funding requirements to support its current operations, expansion and development plans, and by managing its capital structure.
The Company's objectives when managing capital are to invest in strategic growth initiatives, return cash to shareholders, and maintain balance sheet strength and flexibility.
In assessing capital structure, the Company includes the components of shareholders’ equity, the 2019 Notes, the Term Loan and the Amended Credit Agreement. In order to facilitate the management of capital requirements, the Company prepares annual budgets and continuously monitors and reviews actual and forecasted cash flows. The annual budget is monitored and approved by the Company's Board of Directors. To maintain or adjust the capital structure, the Company may, from time to time, issue new shares or debt, repay debt, dispose of non-core assets, or buy back shares. The Company expects its current capital resources will be sufficient to meet its business requirements for a minimum of twelve months.
Cash Dividends
During the three and nine months ended September 30, 2022,March 31, 2023, the Company declared quarterly cash dividends of $0.07 during each quarter,per common share for total dividends of $14.3 milli$14.4 million.
During theon during the three months ended September 30,March 31, 2022 and $44.4 million for the nine months ended September 30, 2022.
During the three and nine months ended September 30, 2021,, the Company paid quarterly cashdeclared dividends of $0.05 and $0.15$0.07 per common share respectively, for total dividendsan aggregate amount of $10.7 million during the three months ended September 30, 2021 and $32.7 million for the nine months ended September 30, 2021. $15.0 million.
Share Repurchase Plan/ Normal Course Issuer Bid
On April 20, 2022, the Normal Course Issuer Bid established as of April 21, 2021 (the “2021 NCIB”) expired. Under the 2021 NCIB, the Company was authorized the purchase of up to 10,000,000 common shares. Under the 2021 plan, the Company purchased and cancelled 8,800,700 common shares via open market purchases through the facilities of the TSX and the Nasdaq at a weighted average price paid per common share of $16.82 and a total repurchase value of $148.1 million.
The Board of Directors authorized a new NCIBNormal Course Issuer Bid (the “2022 NCIB”) on June 20, 2022, to repurchase up to an aggregate of 10,600,000 common shares on the Nasdaq, the TSX and/or other exchanges and alternative trading systems in Canada and/or the United States, if eligible, subject to applicable law and stock exchange rules. In connection with the 2022 NCIB, the Company entered into an automated share purchase plan. During the three and nine months ended September 30, 2022,March 31, 2023, the Company repurchased and cancelled 348,171 common shares, of 5,255,284 and 6,053,126, for $85.4$5.2 million, and $100.0 million, respectively, at a weighted average price paid per common share of $16.53.$14.92.
Cash and Cash Equivalents
At September 30, 2022,March 31, 2023, the Company had $748.5$561.8 million of cash and cash equivalents, a decrease of $269.1$93.7 million from December 31, 2021,2022, mainly due to cash used in the Company’s investing and financing activities, and partially offset by cash flows generated by the Company's operations.activities. The Company held $695.3$499.1 million of its cash and cash equivalents balance in USD. Additionally, the Company held cash and cash equivalents of $40.1$31.1 million, $9.9$24.2 million and $1.1$5.2 million in ARS, CAD and TRY, respectively.
The Company maintains cash balances at banking institutions in various jurisdictions which may or may not have deposit insurance. The Company mitigates potential cash risk by maintaining bank accounts with credit-worthy financial institutions. All cash is invested in short-term investments or high interest savings accounts in accordance with the Company's investment policy with maturities of 90 days or less, providing the Company with sufficient liquidity to meet its foreseeable corporate needs.
Debt
There were no material changes to the Company’s debt and revolving credit facilities since December 31, 2021,2022, except as noted in Note 1513 to the Condensed Consolidated Financial Statements.
The Company's working capital at September 30, 2022,March 31, 2023, together with future cash flows from operations, are expected to be sufficient to fund planned activities and commitments.
Cash Flows
The following table summarizes the Company's cash flow activity for ninethree months ended September 30:March 31:
| | | Nine Months Ended September 30, | | Three Months Ended March 31, |
| | 2022 | | 2021 | | 2023 | | 2022 |
| Net cash provided by operating activities | Net cash provided by operating activities | $ | 42,799 | | | $ | 424,380 | Net cash provided by operating activities | $ | 2,967 | | | $ | 62,187 |
| Cash used in investing activities | Cash used in investing activities | | (69,983) | | | (130,499) | | Cash used in investing activities | | (51,881) | | | (27,885) | |
| Cash used in financing activities | Cash used in financing activities | | (238,634) | | | (290,389) | | Cash used in financing activities | | (38,189) | | | (53,449) | |
| Effect of foreign exchange rate changes on cash and cash equivalents | Effect of foreign exchange rate changes on cash and cash equivalents | | (3,002) | | | (1,102) | | Effect of foreign exchange rate changes on cash and cash equivalents | | (6,191) | | | 583 | |
| Net increase (decrease) in cash, cash equivalents and restricted cash | | (268,820) | | | | 2,390 | | |
| Increase (decrease) in cash, cash equivalents and restricted cash | | Increase (decrease) in cash, cash equivalents and restricted cash | | (93,294) | | | | (18,564) | |
| Cash, cash equivalents, and restricted cash, beginning of period | Cash, cash equivalents, and restricted cash, beginning of period | | 1,052,865 | | | 895,921 | | Cash, cash equivalents, and restricted cash, beginning of period | | 689,106 | | | 1,052,865 | |
| Cash, cash equivalents, and restricted cash, end of period | Cash, cash equivalents, and restricted cash, end of period | $ | 784,045 | | | $ | 898,311 | Cash, cash equivalents, and restricted cash, end of period | $ | 595,812 | | | $ | 1,034,301 |
Cash provided by operating activities
For the ninethree months ended September 30, 2022,March 31, 2023, cash provided by operating activities was $42.8$3.0 million compared to $424.4$62.2 million for the ninethree months ended September 30, 2021.March 31, 2022. The decrease in cash provided by operating activities is mainly due to the impact of lower gold sales at Çöpler dueand Seabee in addition to the temporary suspension of operations, and Marigold.an increase in operating cash expenditures.
Cash used in investing activities
For the ninethree months ended September 30, 2022,March 31, 2023, cash used in investing activities was $70.0$51.9 million compared to $130.5$27.9 million for the ninethree months ended September 30, 2021.March 31, 2022. The decrease in cash used in investing activitiesincrease of $24.0 million is mainly due to proceeds from the sale of the Pitarrilla project of $35.0 million and $8.4 million from the repayment of the EMX note receivable. Additionally, the Company received net proceeds of $10.7 million from the sale of marketable securities offset byhigher capital expenditures related to the purchase of marketable securities intwo haul trucks and leach processing facility improvements at Marigold, and the amountexpansion of $8.0 million during the nine months ended September 30, 2022 as compared to $4.6 million in net proceeds during the same period in 2021. Capital expenditures decreased by $12.8 million.tailings storage facility at Çöpler.
Cash used in financing activities
For the ninethree months ended September 30, 2022,March 31, 2023, cash used in financing activities was $238.6$38.2 million compared to $290.4$53.4 million for the same period in 2021.2022. The decrease in cash used in financing activities wasis primarily due to a $48.0 million reduction of repurchases and cancellations of common shares in addition to a $20.9 million reduction in non-controlling interest dividends of $30.8 million and principal payments on finance leases of $6.3 million, partially offset by an increase of dividends paid of $11.7$14.4 million and $5.2 million of repurchases and cancellations of common shares for the ninethree months ended September 30, 2022March 31, 2023 compared to 2021.2022.
Contractual Obligations
As of September 30, 2022,March 31, 2023, there have been no material changes in the Company’s contractual obligations since December 31, 20212022 to the Condensed Consolidated Financial Statements. Refer to Part II, Item 7 in the Annual Report on Form 10-K for the year ended December 31, 2021 for information regarding the Company’s contractual obligations.
Non-GAAP Financial Measures
The Company has included certain non-GAAP financial measures to assist in understanding the Company's financial results. The non-GAAP financial measures are employed by the Company to measure its operating and economic performance and to assist in decision-making, as well as to provide key performance information to senior management. The Company believes that, in addition to conventional measures prepared in accordance with GAAP, certain investors and other stakeholders will find this information useful to evaluate the Company's operating and financial performance; however, these non-GAAP performance measures do not have any standardized meaning. These performance measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. These non-GAAP measures should be read in conjunction with the Company's condensed consolidated financial statements.
Non-GAAP Measure - Cash Costs and AISC
The Company uses cash costs and cash costs per ounce of precious metals sold to monitor its operating performance internally. The most directly comparable measure prepared in accordance with GAAP is production costs.Cost of sales. The Company believes these measures provide investors and analysts with useful information about its underlying cash costs of operations and the impact of by-product credits on its cost structure. The Company also believes they are relevant metrics used to understand its operating profitability and ability to generate cash flow. When deriving the production costscost of sales associated with an ounce of precious metal, the Company includes by-product credits. Thereby allowing management and other stakeholders to assess the net costs of gold and silver production. In calculating cash costs and cash costs per ounce, the Company also excludes the impact of specific items that are significant, but not reflective of its underlying operations.
AISC includes total production costscost of sales incurred at the Company's mining operations, which forms the basis of cash costs. Additionally, the Company includes sustaining capital expenditures, sustaining mine-site exploration and evaluation costs, reclamation cost accretion and amortization, and general and administrative expenses. This measure seeks to reflect the ongoing cost of gold and silver production from current operations; therefore, expansionary capital and non-sustaining expenditures are excluded. Certain other cash expenditures, including tax payments and financing costs are also excluded.
The Company believes that AISC represents the total costs of producing gold and silver from current operations and provides the Company and other stakeholders with additional information about its operating performance and ability to generate cash flows. AISC allows the Company to assess its ability to support capital expenditures and to sustain future production from the generation of operating cash flows.
When deriving the number of ounces of precious metal sold, the Company considers the physical ounces available for sale after the treatment and refining process, commonly referred to as payable metal, as this is what is sold to third parties.
The following tables provide a reconciliation of production costsCost of sales to cash costs and AISC:
|
|
| | Three Months Ended September 30, 2022 |
| | Three Months Ended March 31, 2023 |
| (in thousands, unless otherwise noted) | (in thousands, unless otherwise noted) | | Çöpler | | Marigold | | Seabee | | Puna | | Corporate | | Total | (in thousands, unless otherwise noted) | | Çöpler | | Marigold | | Seabee | | Puna | | Corporate | | Total |
| Production costs (GAAP) | | $ | 306 | | $ | 53,684 | | $ | 17,894 | | $ | 34,568 | | $ | — | | $ | 106,452 | |
Cost of sales (GAAP)(1) | | Cost of sales (GAAP)(1) | | $ | 74,646 | | $ | 54,541 | | $ | 23,265 | | $ | 46,845 | | $ | — | | $ | 199,297 |
| By-product credits | By-product credits | | 5 | | (33) | | (21) | | (8,448) | | — | | (8,497) | By-product credits | | (867) | | (36) | | (10) | | (18,014) | | — | | (18,927) |
| Treatment and refining charges | Treatment and refining charges | | — | | 123 | | 56 | | 3,663 | | — | | 3,842 | Treatment and refining charges | | — | | 183 | | 30 | | 5,498 | | — | | 5,711 |
| Cash costs (non-GAAP) | Cash costs (non-GAAP) | | 311 | | 53,774 | | 17,929 | | 29,783 | | — | | 101,797 | Cash costs (non-GAAP) | | 73,779 | | 54,688 | | 23,285 | | 34,329 | | — | | 186,081 |
| Sustaining capital expenditures | Sustaining capital expenditures | | 6,299 | | 15,881 | | 7,055 | | 3,445 | | — | | 32,680 | Sustaining capital expenditures | | 6,703 | | 29,016 | | 13,135 | | 2,829 | | — | | 51,683 |
| Sustaining exploration and evaluation expense | Sustaining exploration and evaluation expense | | 383 | | 1,626 | | — | | 1,820 | | — | | 3,829 | Sustaining exploration and evaluation expense | | 761 | | 960 | | — | | 1,071 | | — | | 2,792 |
Care and maintenance (3) | | 31,067 | | — | | — | | — | | — | | 31,067 | |
| | Reclamation cost accretion and amortization | Reclamation cost accretion and amortization | | 415 | | 526 | | 703 | | 432 | | — | | 2,076 | Reclamation cost accretion and amortization | | 427 | | 646 | | 655 | | 765 | | — | | 2,493 |
| General and administrative expense and stock-based compensation expense | General and administrative expense and stock-based compensation expense | | 215 | | — | | — | | 70 | | 12,429 | | 12,714 | General and administrative expense and stock-based compensation expense | | 736 | | — | | — | | 52 | | 17,753 | | 18,541 |
| Total AISC (non-GAAP) | Total AISC (non-GAAP) | | $ | 38,690 | | $ | 71,807 | | $ | 25,687 | | $ | 35,550 | | $ | 12,429 | | $ | 184,163 | Total AISC (non-GAAP) | | $ | 82,406 | | $ | 85,310 | | $ | 37,075 | | $ | 39,046 | | $ | 17,753 | | $ | 261,590 |
| | Gold sold (oz) | Gold sold (oz) | | 2,591 | | | 49,744 | | | 19,700 | | | — | | | — | | | 72,035 | | Gold sold (oz) | | 58,014 | | | 51,297 | | | 16,800 | | | — | | | — | | | 126,111 | |
| Silver sold (oz) | Silver sold (oz) | | — | | | — | | | — | | | 2,234,323 | | | — | | | 2,234,323 | | Silver sold (oz) | | — | | | — | | | — | | | 2,381,540 | | | — | | | 2,381,540 | |
Gold equivalent sold (oz) (2)(3) | Gold equivalent sold (oz) (2)(3) | | 2,591 | | | 49,744 | | | 19,700 | | | 24,850 | | — | | | 96,885 | | Gold equivalent sold (oz) (2)(3) | | 58,014 | | | 51,297 | | | 16,800 | | | 28,446 | | — | | | 154,557 | |
| Production cost per gold equivalent ounce sold(1) | | $ | 118 | | | $ | 1,079 | | | $ | 908 | | | $ | 1,391 | | | N/A | | $ | 1,099 | | |
Cost of sales per gold equivalent ounce sold(1) | | Cost of sales per gold equivalent ounce sold(1) | | $ | 1,287 | | | $ | 1,063 | | | $ | 1,385 | | | $ | 1,647 | | | N/A | | $ | 1,289 | |
| Cash cost per gold ounce sold | Cash cost per gold ounce sold | | $ | 160 | | | $ | 1,081 | | | $ | 910 | | | N/A | | N/A | | N/A | Cash cost per gold ounce sold | | $ | 1,272 | | | $ | 1,066 | | | $ | 1,386 | | | N/A | | N/A | | N/A |
| Cash cost per silver ounce sold | Cash cost per silver ounce sold | | N/A | | N/A | | N/A | | $ | 13.33 | | | N/A | | N/A | Cash cost per silver ounce sold | | N/A | | N/A | | N/A | | $ | 14.41 | | | N/A | | N/A |
Cash cost per gold equivalent ounce sold(1) | Cash cost per gold equivalent ounce sold(1) | | $ | 160 | | | $ | 1,081 | | | $ | 910 | | | $ | 1,199 | | | N/A | | $ | 1,051 | | Cash cost per gold equivalent ounce sold(1) | | $ | 1,272 | | | $ | 1,066 | | | $ | 1,386 | | | $ | 1,207 | | | N/A | | $ | 1,204 | |
| AISC per gold ounce sold | AISC per gold ounce sold | | $ | 14,972 | | | $ | 1,444 | | | $ | 1,304 | | | N/A | | N/A | | N/A | AISC per gold ounce sold | | $ | 1,420 | | | $ | 1,663 | | | $ | 2,207 | | | N/A | | N/A | | N/A |
| AISC per silver ounce sold | AISC per silver ounce sold | | N/A | | N/A | | N/A | | $ | 15.91 | | | N/A | | N/A | AISC per silver ounce sold | | N/A | | N/A | | N/A | | $ | 16.40 | | | N/A | | N/A |
AISC per gold equivalent ounce sold(1) | AISC per gold equivalent ounce sold(1) | | $ | 14,972 | | | $ | 1,444 | | | $ | 1,304 | | | $ | 1,431 | | | N/A | | $ | 1,901 | | AISC per gold equivalent ounce sold(1) | | $ | 1,420 | | | $ | 1,663 | | | $ | 2,207 | | | $ | 1,373 | | | N/A | | $ | 1,693 | |
(1)Excludes depreciation, depletion, and amortization.
(2)Gold equivalent ounces are calculated multiplying the silver ounces by the ratio of the silver price to the gold price, using the average LBMA prices for the period. The Company does not include by-products in the gold equivalent ounce calculations.
(2)(3)Gold equivalent ounces sold may not re-calculate based on amounts presented in this table due to rounding.
(3)Care and maintenance expense in the AISC calculation only includes direct costs, as depreciation is not included in the calculation of AISC.
|
|
| | Three Months Ended September 30, 2021 |
| | Three Months Ended March 31, 2022 |
| (in thousands, unless otherwise noted) | (in thousands, unless otherwise noted) | | Çöpler | | Marigold | | Seabee | | Puna | | Corporate | | Total | (in thousands, unless otherwise noted) | | Çöpler | | Marigold | | Seabee | | Puna | | Corporate | | Total |
| Production costs (GAAP) | | $ | 65,773 | | $ | 50,281 | | $ | 15,077 | | $ | 23,390 | | $ | — | | $ | 154,521 | |
Cost of sales (GAAP)(1) | | Cost of sales (GAAP)(1) | | $ | 62,584 | | $ | 38,735 | | $ | 16,410 | | $ | 35,791 | | $ | — | | $ | 153,520 |
| By-product credits | By-product credits | | (1,487) | | (14) | | (18) | | (10,784) | | — | | (12,303) | By-product credits | | (1,464) | | (41) | | (35) | | (16,734) | | — | | (18,274) |
| Treatment and refining charges | Treatment and refining charges | | — | | 65 | | 49 | | 2,962 | | — | | 3,076 | Treatment and refining charges | | — | | 36 | | 89 | | 3,933 | | — | | 4,058 |
Incremental COVID-19 related costs(1) | | — | | (46) | | (1,204) | | (1,231) | | — | | (2,481) | |
| Fair value adjustment on acquired inventories | | (17,161) | | — | | — | | — | | — | | (17,161) | |
| | Cash costs (non-GAAP) | Cash costs (non-GAAP) | | 47,125 | | 50,286 | | 13,904 | | 14,337 | | — | | 125,652 | Cash costs (non-GAAP) | | 61,120 | | 38,730 | | 16,464 | | 22,990 | | — | | 139,304 |
| Sustaining capital expenditures | Sustaining capital expenditures | | 9,155 | | | 8,996 | | | 6,932 | | | 2,385 | | | — | | | 27,468 | | Sustaining capital expenditures | | 6,376 | | | 18,235 | | | 11,875 | | | 2,212 | | | — | | | 38,698 | |
| Sustaining exploration and evaluation expense | Sustaining exploration and evaluation expense | | 147 | | 217 | | — | | 36 | | — | | | 400 | Sustaining exploration and evaluation expense | | 382 | | 317 | | — | | 50 | | — | | | 749 |
| Reclamation cost accretion and amortization | Reclamation cost accretion and amortization | | 527 | | 616 | | 152 | | 406 | | — | | | 1,701 | Reclamation cost accretion and amortization | | 395 | | 513 | | 141 | | 431 | | — | | | 1,480 |
| General and administrative expense and stock-based compensation expense | General and administrative expense and stock-based compensation expense | | 1,032 | | — | | (8) | | 154 | | 10,791 | | 11,969 | General and administrative expense and stock-based compensation expense | | 914 | | — | | 3 | | 148 | | 15,174 | | 16,239 |
| Total AISC (non-GAAP) | Total AISC (non-GAAP) | | $ | 57,986 | | $ | 60,115 | | $ | 20,980 | | $ | 17,318 | | $ | 10,791 | | $ | 167,190 | Total AISC (non-GAAP) | | $ | 69,187 | | $ | 57,795 | | $ | 28,483 | | $ | 25,831 | | $ | 15,174 | | $ | 196,470 |
| | Gold sold (oz) | Gold sold (oz) | | 80,054 | | | 53,339 | | | 22,950 | | | — | | | — | | | 156,343 | | Gold sold (oz) | | 72,425 | | | 36,954 | | | 47,800 | | | — | | | — | | | 157,179 | |
| Silver sold (oz) | Silver sold (oz) | | — | | | — | | | — | | | 1,486,272 | | | — | | | 1,486,272 | | Silver sold (oz) | | — | | | — | | | — | | | 1,760,387 | | | — | | | 1,760,387 | |
Gold equivalent sold (oz) (2)(3) | Gold equivalent sold (oz) (2)(3) | | 80,054 | | | 53,339 | | | 22,950 | | | 19,956 | | — | | | 176,299 | | Gold equivalent sold (oz) (2)(3) | | 72,425 | | | 36,954 | | | 47,800 | | | 22,513 | | — | | | 179,692 | |
| Production cost per gold equivalent ounce sold(2) | | $ | 822 | | | $ | 943 | | | $ | 657 | | | $ | 1,172 | | | N/A | | $ | 876 | | |
Cost of sales per gold equivalent ounce sold(1) | | Cost of sales per gold equivalent ounce sold(1) | | $ | 864 | | | $ | 1,048 | | | $ | 343 | | | $ | 1,590 | | | N/A | | $ | 854 | |
| Cash cost per gold ounce sold | Cash cost per gold ounce sold | | $ | 589 | | | $ | 943 | | | $ | 606 | | | N/A | | N/A | | N/A | Cash cost per gold ounce sold | | $ | 844 | | | $ | 1,048 | | | $ | 344 | | | N/A | | N/A | | N/A |
| Cash cost per silver ounce sold | Cash cost per silver ounce sold | | N/A | | N/A | | N/A | | $ | 9.65 | | | N/A | | N/A | Cash cost per silver ounce sold | | N/A | | N/A | | N/A | | $ | 13.06 | | | N/A | | N/A |
Cash cost per gold equivalent ounce sold(2) | Cash cost per gold equivalent ounce sold(2) | | $ | 589 | | | $ | 943 | | | $ | 606 | | | $ | 718 | | | N/A | | $ | 713 | | Cash cost per gold equivalent ounce sold(2) | | $ | 844 | | | $ | 1,048 | | | $ | 344 | | | $ | 1,021 | | | N/A | | $ | 775 | |
| AISC per gold ounce sold | AISC per gold ounce sold | | $ | 724 | | | $ | 1,127 | | | $ | 914 | | | N/A | | N/A | | N/A | AISC per gold ounce sold | | $ | 955 | | | $ | 1,564 | | | $ | 596 | | | N/A | | N/A | | N/A |
| AISC per silver ounce sold | AISC per silver ounce sold | | N/A | | N/A | | N/A | | $ | 11.65 | | | N/A | | N/A | AISC per silver ounce sold | | N/A | | N/A | | N/A | | $ | 14.67 | | | N/A | | N/A |
AISC per gold equivalent ounce sold(2) | AISC per gold equivalent ounce sold(2) | | $ | 724 | | $ | 1,127 | | $ | 914 | | $ | 868 | | N/A | | $ | 948 | AISC per gold equivalent ounce sold(2) | | $ | 955 | | $ | 1,564 | | $ | 596 | | $ | 1,147 | | N/A | | $ | 1,093 |
(1)COVID-19 related costs include direct, incremental costs associated with COVID-19.Excludes depreciation, depletion, and amortization.
(2)Gold equivalent ounces are calculated multiplying the silver ounces by the ratio of the silver price to the gold price, using the average LBMA prices for the period. The Company does not include by-products in the gold equivalent ounce calculations.
(3)Gold equivalent ounces sold may not re-calculate based on amounts presented in this table due to rounding.
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| | Nine Months Ended September 30, 2022 |
| (in thousands, unless otherwise noted) | | Çöpler | | Marigold | | Seabee | | Puna | | Corporate | | Total |
| Production costs (GAAP) | | $ | 125,985 | | $ | 142,841 | | $ | 53,319 | | $ | 102,755 | | $ | — | | $ | 424,900 |
| By-product credits | | (2,726) | | (96) | | (97) | | (37,017) | | — | | (39,936) |
| Treatment and refining charges | | — | | 301 | | 262 | | 11,029 | | — | | 11,592 |
| Cash costs (non-GAAP) | | 123,259 | | 143,046 | | 53,484 | | 76,767 | | — | | 396,556 |
| Sustaining capital expenditures | | 20,778 | | | 45,431 | | | 26,316 | | | 8,085 | | | — | | 100,610 | |
| Sustaining exploration and evaluation expense | | 2,111 | | 6,577 | | — | | 1,984 | | — | | 10,672 |
Care and maintenance(3) | | 31,067 | | — | | — | | — | | — | | 31,067 |
| Reclamation cost accretion and amortization | | 677 | | 1,596 | | 1,053 | | 1,295 | | — | | 4,621 |
| General and administrative expense and stock-based compensation expense | | 1,670 | | 1 | | 11 | | 233 | | 46,507 | | 48,422 |
| Total AISC (non-GAAP) | | $ | 179,562 | | $ | 196,651 | | $ | 80,864 | | $ | 88,364 | | $ | 46,507 | | $ | 591,948 |
| | | | | | | | | | | | |
| Gold sold (oz) | | 132,862 | | | 132,681 | | | 110,000 | | | — | | | — | | | 375,543 | |
| Silver sold (oz) | | — | | | — | | | — | | | 5,766,165 | | | — | | | 5,766,165 | |
Gold equivalent sold (oz) (1)(2) | | 132,862 | | | 132,681 | | | 110,000 | | | 69,284 | | — | | | 444,827 | |
| | | | | | | | | | | | |
Production cost per gold equivalent ounce sold(1) | | $ | 948 | | | $ | 1,077 | | | $ | 485 | | | $ | 1,483 | | | N/A | | $ | 955 | |
| Cash cost per gold ounce sold | | $ | 928 | | | $ | 1,078 | | | $ | 486 | | | N/A | | N/A | | N/A |
| Cash cost per silver ounce sold | | N/A | | N/A | | N/A | | $ | 13.31 | | | N/A | | N/A |
Cash cost per gold equivalent ounce sold(1) | | $ | 928 | | | $ | 1,078 | | | $ | 486 | | | $ | 1,108 | | | N/A | | $ | 891 | |
| AISC per gold ounce sold | | $ | 1,351 | | | $ | 1,482 | | | $ | 735 | | | N/A | | N/A | | N/A |
| AISC per silver ounce sold | | N/A | | N/A | | N/A | | $ | 15.32 | | | N/A | | N/A |
AISC per gold equivalent ounce sold(1) | | $ | 1,351 | | | $ | 1,482 | | | $ | 735 | | | $ | 1,275 | | | N/A | | $ | 1,331 | |
(1)Gold equivalent ounces are calculated multiplying the silver ounces by the ratio of the silver price to the gold price, using the average LBMA prices for the period. The Company does not include by-products in the gold equivalent ounce calculations.
(2)Gold equivalent ounces sold may not re-calculate based on amounts presented in this table due to rounding.
(3)Care and maintenance expense in the AISC calculation only includes direct costs, as depreciation is not included in the calculation of AISC.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Nine Months Ended September 30, 2021 |
| (in thousands, unless otherwise noted) | | Çöpler | | Marigold | | Seabee | | Puna | | Corporate | | Total |
| Production costs (GAAP) | | $ | 201,927 | | | $ | 155,582 | | | $ | 47,105 | | | $ | 78,716 | | | $ | — | | | $ | 483,330 | |
| By-product credits | | (4,494) | | | (74) | | | (79) | | | (29,066) | | | — | | | (33,713) | |
| Treatment and refining charges | | — | | | 327 | | | 308 | | | 10,442 | | | — | | | 11,077 | |
Incremental COVID-19 related costs(1) | | — | | | (649) | | | (3,526) | | | (2,985) | | | — | | | (7,160) | |
| Fair value adjustment on acquired inventories | | (49,205) | | | — | | | — | | | — | | | — | | | (49,205) | |
| Cash costs (non-GAAP) | | 148,228 | | | 155,186 | | | 43,808 | | | 57,107 | | | — | | | 404,329 | |
| Sustaining capital expenditures | | 25,728 | | | 44,902 | | | 26,594 | | | 7,906 | | | — | | | 105,130 | |
| Sustaining exploration and evaluation expense | | 367 | | | 1,207 | | | — | | | 90 | | | — | | | 1,664 | |
| Reclamation cost accretion and amortization | | 1,911 | | | 2,055 | | | 469 | | | 1,218 | | | — | | | 5,653 | |
| General and administrative expense and stock-based compensation expense | | 6,021 | | | (103) | | | 19 | | | 1,776 | | | 27,223 | | | 34,936 | |
| Total AISC (non-GAAP) | | $ | 182,255 | | | $ | 203,247 | | | $ | 70,890 | | | $ | 68,097 | | | $ | 27,223 | | | $ | 551,712 | |
| | | | | | | | | | | | |
| Gold sold (oz) | | 239,428 | | | 178,351 | | | 85,416 | | | — | | | — | | | 503,195 | |
| Silver sold (oz) | | — | | | — | | | — | | | 5,349,386 | | | — | | | 5,349,386 | |
Gold equivalent sold (oz) (2)(3) | | 239,428 | | | 178,351 | | | 85,416 | | | 76,136 | | — | | | 579,331 | |
| | | | | | | | | | | | |
Production cost per gold equivalent ounce sold(2) | | $ | 843 | | | $ | 872 | | | $ | 551 | | | $ | 1,034 | | | N/A | | $ | 834 | |
| Cash cost per gold ounce sold | | $ | 619 | | | $ | 870 | | | $ | 513 | | | N/A | | N/A | | N/A |
| Cash cost per silver ounce sold | | N/A | | N/A | | N/A | | $ | 10.68 | | | N/A | | N/A |
Cash cost per gold equivalent ounce sold(2) | | $ | 619 | | | $ | 870 | | | $ | 513 | | | $ | 750 | | | N/A | | $ | 698 | |
| AISC per gold ounce sold | | $ | 761 | | | $ | 1,140 | | | $ | 830 | | | N/A | | N/A | | N/A |
| AISC per silver ounce sold | | N/A | | N/A | | N/A | | $ | 12.73 | | | N/A | | N/A |
AISC per gold equivalent ounce sold(2) | | $ | 761 | | | $ | 1,140 | | | $ | 830 | | | $ | 894 | | | N/A | | $ | 952 | |
(1)COVID-19 related costs include direct, incremental costs associated with COVID-19.
(2)Gold equivalent ounces are calculated multiplying the silver ounces by the ratio of the silver price to the gold price, using the average LBMA prices for the period. The Company does not include by-products in the gold equivalent ounce calculations.
(3)Gold equivalent ounces sold may not re-calculate based on amounts presented in this table due to rounding.
Non-GAAP Measure - Adjusted Attributable Net Income (Loss)
Adjusted attributable net income (loss) and adjusted attributable net income (loss) per share are used by management and investors to measure the Company's underlying operating performance. The most directly comparable financial measures prepared in accordance with GAAP are netNet income (loss) attributable to equity holders of SSR Mining shareholdersand netNet income (loss) per share attributable to equity holders of SSR Mining.Mining shareholders. Adjusted attributable net income (loss) is defined as net income (loss) adjusted to exclude the after-tax impact of specific items that are significant, but not reflective of the Company's underlying operations, including the impact of impairment charges; foreign exchange (gains) losses andadjustments; inflationary impacts on tax balances; transaction, integration and SEC conversion expenses;costs; changes in tax rate for other non-recurring items. SEC conversion costs are the costs associated with the Company's transition in 2022 from being a foreign private issuer to a domestic reporting issuer for purposes of the SEC's reporting and other non-recurring items.requirements.
The following table provides a reconciliation of netNet income (loss) attributable to equity holders of SSR Mining shareholders to adjusted net income (loss) attributable to equity holders of SSR Mining:Mining shareholders:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, | | Nine Months Ended September 30, |
| (in thousands, except per share) | 2022 | | 2021 | | 2022 | | 2021 |
| Net income (loss) attributable to equity holders of SSR Mining (GAAP) | $ | (25,793) | | | $ | 57,060 | | | $ | 100,256 | | | $ | 240,641 | |
| Interest saving on convertible notes, net of tax | | — | | | | 1,226 | | | | 3,677 | | | | 3,662 | |
| Net income (loss) used in the calculation of diluted net income per share | $ | (25,793) | | | $ | 58,286 | | | $ | 103,933 | | | $ | 244,303 | |
| | | | | | | | | | | |
| Weighted-average shares used in the calculation of net income and adjusted net income (loss) per share | | | | | | | | | | | |
| Basic | | 207,983 | | | | 213,426 | | | | 210,986 | | | | 217,392 | |
| Diluted | | 207,983 | | | | 225,689 | | | | 223,543 | | | | 229,652 | |
| | | | | | | | | | | |
| Net income (loss) per share attributable to common stockholders (GAAP) | | | | | | | | | | | |
| Basic | $ | (0.12) | | | $ | 0.27 | | | $ | 0.48 | | | $ | 1.11 | |
| Diluted | $ | (0.12) | | | $ | 0.26 | | | $ | 0.46 | | | $ | 1.06 | |
| | | | | | | | | | | |
| Adjustments: | | | | | | | | | | | |
Fair value adjustment on acquired assets(1) | | — | | | | 26,449 | | | $ | — | | | | 75,928 | |
COVID-19 related costs (2) | | — | | | | 2,480 | | | | — | | | | 7,160 | |
| Foreign exchange loss (gain) | | 11,577 | | | | 1,595 | | | | 19,733 | | | | 2,904 | |
| Alacer transaction and integration costs | | — | | | | 611 | | | | — | | | | 5,815 | |
| Pitarrilla transaction costs | | 1,561 | | | | — | | | | 1,561 | | | | — | |
| SEC conversion costs | | — | | | | 64 | | | | 1,255 | | | | 245 | |
| Impairment of long-lived and other assets | | — | | | | 5 | | | | — | | | | 22,354 | |
| Change in fair value of marketable securities | | 37 | | | | 4,524 | | | | 3,836 | | | | 6,472 | |
| Loss (gain) on sale of mineral properties, plant and equipment | | (128) | | | | 1,152 | | | | 1,213 | | | | (462) | |
| | | | | | | | | | | |
| Income tax impact related to above adjustments | | (382) | | | | (8,607) | | | | (2,045) | | | | (25,448) | |
| Foreign exchange (gain) loss and inflationary impacts on tax balances | | (11,850) | | | | (5,015) | | | | (18,020) | | | | (44,666) | |
Other tax adjustments(3) | | 11,445 | | | | — | | | | 11,445 | | | | — | |
| Impact of tax rate change on fair value adjustments | | — | | | | 7,947 | | | | — | | | | 12,555 | |
| Adjusted net income (loss) attributable to equity holders of SSR Mining (Non-GAAP) | $ | (13,533) | | $ | 88,265 | | $ | 119,234 | | $ | 303,498 |
| | | | | | | | | | | |
| Adjusted net income (loss) per share attributable to SSR Mining shareholders (Non-GAAP) | | | | | | | | | | | |
| Basic | $ | (0.07) | | $ | 0.41 | | $ | 0.57 | | $ | 1.40 |
| Diluted | $ | (0.07) | | $ | 0.40 | | $ | 0.55 | | $ | 1.34 |
| | | | | | | | | | | | | | | | | |
| Three Months Ended March 31, |
| (in thousands, except per share) | 2023 | | 2022 |
| Net income (loss) attributable to SSR Mining shareholders (GAAP) | $ | 29,813 | | | $ | 67,563 | |
| Interest saving on 2019 Notes, net of tax | | 1,221 | | | | 1,215 | |
| Net income (loss) used in the calculation of diluted net income per share | $ | 31,034 | | | $ | 68,778 | |
| | | | | |
| Weighted-average shares used in the calculation of net income and adjusted net income (loss) per share | | | | | |
| Basic | | 206,778 | | | | 212,423 | |
| Diluted | | 219,403 | | | | 224,736 | |
| | | | | |
| Net income (loss) per share attributable to common stockholders (GAAP) | | | | | |
| Basic | $ | 0.14 | | | $ | 0.32 | |
| Diluted | $ | 0.14 | | | $ | 0.31 | |
| | | | | |
| Adjustments: | | | | | |
| | | | | |
| Foreign exchange loss (gain) | | — | | | | 3,287 | |
| SEC conversion expense | | — | | | | 1,217 | |
| Loss (gain) on sale of mineral properties, plant and equipment | | 240 | | | | 584 | |
| | | | | |
| | | | | |
| | | | | |
| Change in fair value of marketable securities | | (1,866) | | | | 923 | |
| | | | | |
| Income tax impact related to above adjustments | | 139 | | | | (708) | |
| Foreign exchange (gain) loss and inflationary impacts on tax balances | | (9,153) | | | | (6,924) | |
Other tax adjustments(1) | | 2,101 | | | | — | |
| | | | | |
| Adjusted net income (loss) attributable to SSR Mining shareholders (Non-GAAP) | $ | 21,274 | | $ | 65,942 |
| | | | | |
| Adjusted net income (loss) per share attributable to SSR Mining shareholders (Non-GAAP) | | | | | |
| Basic | $ | 0.10 | | $ | 0.31 |
| Diluted | $ | 0.10 | | $ | 0.30 |
(1)Fair value adjustments on acquired assets relate to the acquisition of Alacer's inventories and mineral properties.
(2)COVID-19 related costs include direct, incremental costs associated with COVID-19 at all operations.
(3)Represents charges related to a one-time tax settlement andimposed by Türkiye to fund earthquake recovery efforts, offset by a release of an uncertain tax position.
Non-GAAP Measure - Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") and Adjusted EBITDA
EBITDA represents net income (loss) before interest, taxes, depreciation, and amortization. EBITDA is an indicator of the Company's ability to generate liquidity by producing operating cash flow to fund working capital needs, service debt obligations, and fund capital expenditures.
Adjusted EBITDA represents net income (loss) before interest, taxes, depreciation, and amortization, adjusted to exclude the impact of specific items that are significant, but not reflective of the Company's underlying operations, including impairment charges; foreign exchange gains (losses); transaction and integration expenses; unrealized gains (losses) on derivatives; and other non-recurring items.
The most directly comparable financial measure prepared in accordance with GAAP to EBITDA and Adjusted EBITDA is netNet income (loss) attributable to equity holders of SSR Mining.Mining shareholders.
The following is a reconciliation of netNet income (loss) attributable to equity holders of SSR Mining shareholders to EBITDA and adjusted EBITDA:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, | | Nine Months Ended September 30, |
(in thousands) | 2022 | | 2021 | | 2022 | | 2021 |
| Net income (loss) attributable to equity holders of SSR Mining (GAAP) | $ | (25,793) | | | $ | 57,060 | | | $ | 100,256 | | | $ | 240,641 | |
| Net income (loss) attributable to non-controlling interests | | (2,579) | | | | 7,119 | | | | 14,995 | | | | 28,782 | |
| Depletion, depreciation and amortization | | 21,555 | | | | 51,958 | | | | 134,145 | | | | 161,731 | |
| Interest expense | | 4,541 | | | | 4,732 | | | | 13,109 | | | | 14,567 | |
| Income and mining tax expense (benefit) | | (13,808) | | | | 14,285 | | | | 8,775 | | | | 27,483 | |
| EBITDA (non-GAAP) | | (16,084) | | | | 135,154 | | | | 271,280 | | | | 473,204 | |
Fair value adjustment on acquired inventories (1) | | — | | | | 17,161 | | | | — | | | | 49,205 | |
COVID-19 related costs (2) | | — | | | | 2,480 | | | | — | | | | 7,160 | |
| Foreign exchange loss (gain) | | 11,577 | | | | 1,595 | | | | 19,733 | | | | 2,904 | |
| Alacer transaction and integration costs | | — | | | | 611 | | | | — | | | | 5,815 | |
| Pitarrilla transaction costs | | 1,561 | | | | — | | | | 1,561 | | | | — | |
| SEC conversion costs | | — | | | | 64 | | | | 1,255 | | | | 245 | |
| Impairment of long-lived and other assets | | — | | | | 5 | | | | — | | | | 22,354 | |
| Change in fair value of marketable securities | | 37 | | | | 4,524 | | | | 3,836 | | | | 6,472 | |
| Loss (gain) on sale of mineral properties, plant and equipment | | (128) | | | | 1,152�� | | | | 1,213 | | | | (462) | |
| | | | | | | | | | | |
| Adjusted EBITDA (non-GAAP) | $ | (3,037) | | | $ | 162,746 | | | $ | 298,878 | | | $ | 566,897 | |
(1)Fair value adjustments on acquired inventories relate to the acquisition of Alacer.
(2)COVID-19 related costs include direct, incremental costs associated with COVID-19 at all operations. | | | | | | | | | | | | | | | | | |
| Three Months Ended March 31, |
(in thousands) | 2023 | | 2022 |
| Net income (loss) attributable to SSR Mining shareholders (GAAP) | $ | 29,813 | | | $ | 67,563 | |
| Net income (loss) attributable to non-controlling interests | | (809) | | | | 8,543 | |
| Depletion, depreciation and amortization | | 47,095 | | | | 58,742 | |
| Interest expense | | 5,060 | | | | 4,295 | |
| Income and mining tax expense (benefit) | | 2,788 | | | | 31,562 | |
| EBITDA (non-GAAP) | | 83,947 | | | | 170,705 | |
| | | | | |
| Foreign exchange loss (gain) | | — | | | | 3,287 | |
| SEC conversion expense | | — | | | | 1,217 | |
| Loss (gain) on sale of mineral properties, plant and equipment | | 240 | | | | 584 | |
| | | | | |
| | | | | |
| | | | | |
| Change in fair value of marketable securities | | (1,866) | | | | 923 | |
| | | | | |
| Adjusted EBITDA (non-GAAP) | $ | 82,321 | | | $ | 176,716 | |
Non-GAAP Measure - Free Cash Flow
The Company uses free cash flow to supplement information in its condensed consolidated financial statements. The most directly comparable financial measures prepared in accordance with GAAP is cashCash provided by (used in) operating activities.activities. The Company believes that in addition to conventional measures prepared in accordance with US GAAP, certain investors and analysts use this information to evaluate the ability of the Company to generate cash flow after capital investments and build the Company's cash resources. The Company calculates free cash flow by deducting cash capital spending from cash generated by operating activities.
The following table provides a reconciliation of cashCash provided by operating activities to free cash flow: | | | Nine Months Ended September 30, | | Three Months Ended March 31, |
| (in thousands) | (in thousands) | | 2022 | | 2021 | (in thousands) | | 2023 | | 2022 |
| Cash provided by operating activities (GAAP) | Cash provided by operating activities (GAAP) | | $ | 42,799 | | $ | 424,380 | Cash provided by operating activities (GAAP) | | $ | 2,967 | | $ | 62,187 |
| Expenditures on mineral properties, plant and equipment | Expenditures on mineral properties, plant and equipment | | (116,155) | | | (128,924) | | Expenditures on mineral properties, plant and equipment | | (59,242) | | | (34,492) | |
| Free cash flow (non-GAAP) | Free cash flow (non-GAAP) | | $ | (73,356) | | $ | 295,456 | Free cash flow (non-GAAP) | | $ | (56,275) | | $ | 27,695 |
Critical Accounting Estimates
Refer to the Company’s Management’s Discussion and Analysis of Critical Accounting Estimates included in Part II of the Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 23, 2022.10-K.
New Accounting Pronouncements
For a discussion of Recently Issued Accounting Pronouncements, see Note 2 of the Condensed Consolidated Financial Statements.
Forward-Looking Statements
Certain statements contained in this report (including information incorporated by reference herein) are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and are intended to be covered by the safe harbor provided for under these sections. Forward looking statements can be identified with words such as “may,” “will,” “could,” “should,” “expect,” “plan,” “anticipate,” “believe,” “intend,” “estimate,” “projects,” “predict,” “potential,” “continue” and similar expressions, as well as statements written in the future tense. When made, forward-looking statements are based on information known to management at such time and/or management’s good faith belief with respect to future events. Such statements are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in the Company's forward-looking statements. Many of these factors are beyond the Company's ability to control or predict. Given these uncertainties, readers are cautioned not to place undue reliance on forward-looking statements.
Forward-looking statements include, without limitation, the types of statements listed under the heading “Forward-Looking Statements” in Part I, Item 1. Business of the Annual Report on Form 10-K for the year ended December 31, 2021.10-K.
The forward-looking information and statements in this report are based on a number of material factors and assumptions, including, but not limited to the factors discussed in the Annual Report on Form 10-K, for the year ended December 31, 2021 filed on February 23, 2022, which was amended on July 12, 2022 solely to reorganize information included in Part I, Item 2, and subsequently filed Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, including those discussed in the “Business,” “Risk Factors,” “Forward-Looking Statements” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of those reports. Such factors are not exhaustive of the factors that may affect any of the Company’s forward-looking statements and information, and such statements and information will not be updated to reflect events or circumstances arising after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
There have been no material changes in market risks during the ninethree month period ended September 30, 2022.March 31, 2023.
For additional information on market risks, refer to “Disclosures About Market Risks” included in Part II, Items 7A of the Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC on February 23, 2022.
ITEM 4. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
The Company’s Management assessed the effectiveness of the Company’s disclosure controls and procedures (as such term is defined in Rules 13a–15(f) and 15d–15(f) under the Exchange Act) as of the end of the period covered by this quarterly report on Form 10-Q. Based upon its assessment, Management concluded that the Company’s disclosure controls and procedures were effective as of September 30, 2022.March 31, 2023.
Changes in Internal Control Over Financial Reporting
There were no changes in internal control over financial reporting that occurred during the three months ended September 30, 2022,March 31, 2023, that has materially affected, or is reasonably likely to materially affect, internal control over financial reporting.
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
From time to time, the Company and its subsidiaries have become involved in litigation relating to claims arising out of operations in the normal course of business. Information regarding legal proceedings is contained in Note 1816 to the Condensed Consolidated Financial Statements contained in this Report and is incorporated herein by reference.
ITEM 1A. RISK FACTORS
In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, Item IA., “Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021.2022. The risks described in the Annual Report and herein are not the only risks facing the Company. Additional risks and uncertainties not currently known to the Company or that is deemed to be immaterial may also materially adversely affect the business, financial condition, cash flows and/or future results.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
Under the Normal Course Issuer Bid (the “2022 NCIB”), which commenced on June 20, 2022, the Company was authorized to purchase up to 10,600,000 common shares through June 19, 2023. TheTo date, the Company has purchased and cancelled 6,053,1266,401,297 common shares via open market purchases through the facilities of the TSX and Nasdaq at a weighted average price paid per common share of $16.63$16.44 for approximately $100.0$105.2 million.
The following table summarizes purchases by the Company, or an affiliated purchaser, of the Company’s equity securities registered pursuant to Section 12 of the Exchange Act during the three months ended September 30, 2022:March 31, 2023:
| | | | | | | | | | | | | | |
| Period | Total Number of Shares Purchased (1) | Average Price Paid Per Share
(1) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (2) |
| July 1 - July 31 | 3,218,770 | $16.45 | 4,016,612 | 6,583,388 (1) |
| August 1 - August 31 | 2,036,514 | $15.92 | 6,053,126 | 4,546,874 |
September 1 - September 30(3) | - | - | - | 4,546,874 |
| | | | | | | | | | | | | | |
| Period | Total Number of Shares Purchased (1) | Average Price Paid Per Share
(1) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (2) |
January 1 - January 31(3) | - | - | 6,053,126 | 4,546,874 |
February 1 - February 31(3) | - | - | 6,053,126 | 4,546,874 |
March 1 - March 30(3) | 348,171 | 14.92 | 6,401,297 | 4,198,703 |
(1) The total number of shares purchased (and the average price paid per share) reflects shares purchased pursuant to the 2022 NCIB.
(2) The Company's Board of Directors authorized the 2022 NCIB, under which the Company was authorized to repurchase up to 10,600,000 common shares. The program commenced June 20, 2022 and on August 16, 2022, the Company had repurchased the maximum value of shares authorized byMarch 27, 2023, the Board of Directors.Directors authorized the Company to make additional purchases under the 2022 NCIB up to an aggregate 10,600,000 common shares through June 19, 2023.
(3) No shares were purchased in SeptemberJanuary or February pursuant to the 2022 NCIB.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. MINE SAFETY DISCLOSURES
The Company is required to report certain mine safety violations or other regulatory matters required by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K, and that required information is included in Exhibit 95 to this Quarterly Report, which is incorporated herein by reference.
ITEM 5. OTHER INFORMATION
None.
ITEMTEM 6. EXHIBITS, FINANCIAL STATEMENT SCHEDULES
| | | | | | | | |
| Exhibit Number | |
10.1 +* | |
10.2 +* | |
| 31.1 + | |
| 31.2 + | |
| 32.1++ | |
| 32.2++ | |
| 95 + | |
| 101 | 101.INS
101.SCH
101.CAL
101.DEF
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101.PRE | XBRL Instance - XBRL tags are embedded within the Inline XBRL document
XBRL Taxonomy Extension Schema
XBRL Taxonomy Extension Calculation
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| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
| + | Filed herewith | |
| ++ | Furnished herewith | |
* | Indicates a management contract or compensatory plan or arrangement. |
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| | | | | |
| SSR MINING INC.
Registrant |
Date: November 8, 2022May 4, 2023 | /s/ Alison White |
| Name: Alison White
Title: Executive Vice President and Chief Financial Officer (Principal Financial Officer) |
| |
Date: November 8, 2022May 4, 2023 | /s/ Russell Farnsworth |
| Name: Russell Farnsworth
Title: Vice President, Controller (Principal Accounting Officer) |