SSRM - Earnings call transcript Q4 2020

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Operator

Good day, everyone and welcome to SSR Mining’s Fourth Quarter and Year End 2020 Conference Call. This call is being recorded. At this time for opening remarks and introductions, I would like to turn the call over to Brian Martin, Investor Relations for SSR Mining. Please go ahead.

Brian Martin

Thank you, operator. gentlemen. and ladies day, Good Welcome to conference update year XXXX financial quarter our Mining’s during which fourth performance. our call, of an and and we business end review SSR will on provide

Discussion all to Management that ASX, discussed to unless access will sustaining this accompany find and EDGAR, and also ounce our and Statements call. call there are webcast Financial and have an on sold. and payable website. been our in during all of per in our release are on to note, this news you is relating the otherwise Please indicated. the Analysis cash in available figures US dollars, call, information metals are All SEDAR, filed costs To webcast references costs Our online

be today. making statements forward-looking will We

So, in please relevant documents. read disclosures the the

today President Beckman, on Rod us CEO; Joining Stewart are; call and Martin, COO. Greg the CFO; Antal, and

opening to to over like turn remarks. call I’d Now the for Rod the

Rod Antal

afternoon by to and integrated and for a we the portfolio merger the Brian and a across you completed catalysts SSR Gold. pandemic. presented Mining, successfully good We year value-enhancing truly was good challenges number Alacer delivered transformational Thanks, the our XXXX COVID-XX as all. and of navigated morning

growth long-term return we to in to balance policy which is I’m $XXX balance initiatives which period we’ll in our A fund sheet presentation. maintain of momentum declared form line sheet our we the returns the opportunities these was a From potential with leading this of capital growth million significant defined dividend which programs exciting The free the the defining mainly sites, number growth allow Report, capital report designed and of value inaugural perspective, with and asset. catalysts Copler highlighted our quarterly and/or quality supplemental returns four and we net scale, our in release proud additional assets. shareholders. all assess capital peer world-class with touch us this During future operating delivered recently unprecedented of Ardich met in our a step Technical morning, cash change, organic growth buyback moving clearly will to flow the forward. first objectives announced XXXX to by this strength, later of of in cash the dividends with continuing exiting demonstrated and the and announce, share XXXX of featured on

example to later in next provide sustain SSR with clearly results This CX from announced fourth the business, another just porphyry ability to the and to strong intersecting in emerging premier XXX,XXX establish data the planning significant exciting a and XXXX. business. and to the of the note, business number of this longer as the production demonstrate organic market broader Building as copper-gold organic material our an are our potential At we strength fundamentally we growth our gold ounces plus is opportunities on the quarter wide year five sector. the We of for platform we have Seabee discovery the growth we sustaining Marigold Copler also years. equivalent And a to gold producer a mid-tier to business. demonstrate our firmly to XXX,XXX On guidance production focused and portfolio, goal of of the a growing expect the progresses. have highlight pit. mineralization remain exploration below within We and across

slide. to the ESG has the of always in on next been culture ingrained turning SSR So Mining.

the with communities as employees operate. recognized and to things Going our the forward, a we’ll right partner continue we do be where and true

From I’ll as the our practices many a a look examples on safety business. a our XXXX We’re we priorities. best ourselves have achievements progress, perspective, and an providing on to the across report our well forward of take hold and compiling quarter. XXXX to as high minute update our in sustainability in two standard discussion recognize

diesel regulations an on no Safety truly respirators Copler a This new XXXX Operational Seabee, the the particular the which is SME the to awarded of congratulate which there being the And ventilation for is excellent and the wear were with Award, Health successful team for Excellence the province installed all. means, in great is mandatory site. the team in I meeting Firstly, at underground, matter upgrades. recently outcome achievement longer

our proud We achievements ESG forward. approach and are of moving our to in to progressive be continue we’ll

at to how ahead guidance improvement looking overall an performance. represents outlook, our As relative XXXX XXXX our

for continue to Our initiatives to to results. safety safe and implemented production, is year several improve ensure being focus have the overall our we

We expect base leading prudently peer free to opportunities cash investing we asset in while return growth substantial have. across high generate flow, that the

growth to at Marigold. utilize include of and Copler, allowing our the flotation ramp improvement continuous rights, mill transition initiatives the owner-operated at initiatives, development underground on focus and us Seabee haulage Puna. Some fleet A of and future examples increasing ongoing cost capacity up circuit to the lightened construction at in

Wall targets On scale across into the with targets year strong the the center momentum provide on Stew clarity the efforts all exploration take the the highlight exiting advance side, some as the Seabee. stage we’re call expect just and later and a and into these will exploration this Hanging portfolio investing confidence in highlights with and we to Stew $XX four touch million Copler, to year. you ‘XX. in Trenton during New are I our areas turn XXXX. call. dive to over of before these pay timelines want Marigold and CX a this to and Ardich should had Greg SantoyGap will on to very few there Canyon of moving Millennium detail. I and at quarter regard, we Operationally, quarterly and attention a assets In few the operating fourth this

quarter, all Marigold strong results. set Our a in number EPS contributed ounce. and share, ending ounces flow had Puna free per the $XXX position totaled cash and sustaining financial XXX,XXX pours, consolidated stronger perspective, million shipments year Copler, gold while the million equivalent in a our of of records, production adjusted an lagged These been $XXX cash an at costs timing sales the consolidated of to all-in generated nearly cash production we a From $XXX if in an results reported operational Seabee $XXX to and even $X.XX we excellent and of gold million. of would and year net not fourth have due the concentrated end.

more with Greg, who call to will performance our turn So I’ll the financial that, in detail. over discuss

Greg Martin

you. Thank

integrated quarter the business Mining, posted and new a which financial delivering. demonstrate by Rod, SSR final operations for and results scale model. As We of outlined fantastic strength impressive all our with assets our

from minds the fourth revised While numbers guidance. in XX% as blend $XXX quarter. quarter. my on comments continues to for $XXX annual of did I’ll to previous and post pre With impact Revenue COVID being on and not stop efficiencies, the a it focus quarter merger million million the costs achieving our to results, increased compared

benefited in and from for sequential assets. Income the from combined improvements million with XX% effectively contribution operations to income Copler’s As full from $XXX.X quadrupled at quarter-on-quarter increased net quarter we mine all four XX% in million income quarter. $XX $XX to share million this million net the third $X.XX quarter $XX $XX per quarter. the million $XXX from in increased third to million or from Adjusted

space. gets our those And the carryover inventory metrics ounces higher sold for scale gold would which restarting have all financial shipments at at pours of stronger SSR equal even you you sold, gold strong the if normal our finished concentrate ounces year of have our a assets. resets the end silver concentrate was lags market, quarter post-COVID how the Perhaps closures. understand as new drove would goods familiar Timing with across higher of peer blemish into So from is only on been results produced. momentum

in smelted Asia. Our in Europe are Argentina or concentrates generally

our So into of Shipments back November. to And shipment a we’re in cycles this as to bit stronger long. point are bonus, selling steady in prices state silver were QX. concentrates a

income. fourth I cash quarter We in increased the impact and an quarter all the fourth COVID maintenance transaction quarter, integration all the for Alacer adjustments These third the adjusted reported relative for site’s and impacted in year to the will costs full income through our the less while as fivefold million and generated in accounting generation free quarter quarter investments quarter, operations in income. sustaining items while value As third the table. state costs, Cash totaled $XX of costs are $XXX on care increased noted million fair return third acquisition steady call, identified and million. than in even related operations. capital million be $XX flow from Cash to and amortization reported to to ongoing Also to the our outstanding. was quarter $XXX

today. can repayments. and debt joined dividend considering SSR was $X.XX inaugural Our maturing The since of net results share been per company. mine million, of sustain a in increase the support has cash strong a to announced I our business dividend a that goal quarterly quarterly $XXX of grow These

So it this achievement. satisfying is to see

the shareholder consider quarter, arms incremental flow As our further we from business. we considering base cash discussed around free framework to provides returns our above dividend combined of dividend last our as wrap excess these opportunity issues

shape exceptional is and sheet of cash. net $XXX $XXX consolidated million balance with Our of million in cash

base. We manner structure efficiently a to will ability asset fund continue responsible and our our the capital ensure to to manage in grow

cash our strong us recognizing weighted flotation heavier also in half for In we growth outlook we good capital Copler at the second profile, half performance to and financial flow earlier our Capital free the Our puts outlook, in XXXX first our production grow generation. well XXXX, equivalent as intensity flow the a year. of continue is quarter as XXX,XXX which profile, particularly cash to and to over sustaining managed noted as the of position in remains ounces. starts, the circuit the but published

the QX to expected to first is road flow our cash ice build quarter, restocking an loaded capital and are receivables as as steady towards return Seabee specifically state we Looking the working building at amplified effects sales. these concentrates due

the Copler’s a paid will performance dividend payment the intercompany tax quarter. within January, quarter as our first great in so I’ll Stew. also strong sees we joint XXXX a partner to venture half-second turn announced, in first in overall With those first which over dividends of in call QX, variations. we The distribution those concentration recognize XXXX half comments, With cash And a expecting payments. results

Stew Beckman

Greg. Thanks,

EHS&S, mine the as site start into sustainability. safety move we with always, health, summaries, I’ll environment Before and

pervasive, back are and remains our Copler the and pandemic COVID business. full sites, to production. and caring had managing shutdowns Puna to due with suffer getting bounced Marigold didn’t Seabee we on our it for people both at Although and

which on Our COVID in protocols we protecting focus and contractors our the people, first work. communities

improvement the business recognized was which The With standards across core was Anagold very This end for of our business, currently integration, XX business hours the at more also over plant. annual practice the updating TCFD communities release award Health high by SSR our drafting The with that to approved Marigold reviewed the Operational X environment merger and Not I the Nevada the updated XXXX Board. yet process. to execution the with EHS&S that followed million the disclosure of system, report large business. and year. awarded The well million in the by the operations, sustainability of part and starting we $XXX CDP to and EHS&S quarter. unit, later free. be proud integration plan As delighted approaching that and construction new of planned be report, and Association’s this was the done, is about this a Mining new will this across have In we of reporting. is our management the and commissioning of free Marigold foundation of and with we team. and XXXX were quarter. which ensuring filings ESG Excellence XXX end a and will continuous along was the reconfirm the sustainability the sulfide to is SME a Leveraging standard our in transformation hours deserved our safety Award we both our completed recognition SME. forms the of policies by Turkish Safety achievement awarded alignment award during Copler a days a and commitment LTI best million efficiency in than LTI

HSE teams resourced well and within and a experienced SSR. operations have We

of the The of call of or the of consistently production operations. some Key flotation XXXX. year. Despite on district please the sites. was case, challenges supplemental CDMP for ounces. to again, the rate. processing flotation rates mine to QX, big throughput it, XXXX into expectation discount reserves a the as operating the Master of reserve year. for higher included million is an track increased which Plan work of XXX,XXX the There which Now and incorporates back commentary XXXX commissioning costs, approved alternate above pushing the X% on life and a at mineral to flotation at throughput. COVID, a impressive In the the now in deliver of lowered another extended achieved and gold have were, design The world-class some significantly XX.X% case truly the construction each for billion mine the deposit. development end increased development in District increases ounce. takeaways to Despite XXXX PEA year is delivered autoclaves were of circuit, ounces within XXXX, of circuit including next Slide and well Copler Copler operation performance challenges the guidance, case move reserve at pathways. of Ardich managed XXXX indirect in impacts, an team is technical $X.X really plant CDMP Board and the the $XXX NPV to and we the The some we this the production is or from mine was an operating X COVID Copler a significantly this near the district the demonstrated the which the in case base plant perform with outstanding step continues solid base the mid and rates, time this the sulphide life development resources, released an supplemental report X.X it costs

and benefited The treated. million exploration first up lists and CX $X.X Copler stacked going for XXXX. of targets in Ardich records of were XXX mine an XXXX. the with gold leach material PEA production onto exploration to X and broke XXXX Please And we’re included they did opportunities we is in particulate be milling bit production located QX up QX, also lower to good our X. Slide XX. and August management development a Creatively of by in on back over COVID move sites. Record in exploration and operations, the all manage as a we few Marigold improving talk under caught package increase of holes ramped drilling without beaten Excitingly, scenario matter didn’t the quarterly month XXXX the In upside. with and near results, Please some directly presenting develop mine. with off ice head XX,XXX they in were by next average mill on quarter. replacement discover carefully is Seabee bottleneck. lots to last equipment the low in provides some resolved. mine plenty This second cost hydraulic come the of was the resources in years. In and tonnage copper-gold of in are X the operating, case all higher the X,XXX weeks. difficulties has the PEA mill quarters costs being day. a NPV pit property CDMP main September case, XXXX the where ounces our talk our managing was X it to safely the knowhow lowering has tonne Seabee’s new expanded movements above plant with sustaining mine for issues expect for quarter, mentioned, and infrastructure. Since about which a later production $X,XXX it’s grade were the stoppage will later. half folks. again X.X we’ll which released the processing and the leveraging we case northeast EHS&S a supporting to rates life XXX monthly as capacity improvement crept interesting and to fourth diesel performance COVID price life the and infill made is effort are with previous’ with The by little consistent On they in this than large gold last Marigold. The X% of PEA is which achieved along are per on. has very in up result processing of to to are kilometers and these the more we the an Slide we records discount mind day the our mine of Mackey deposit, rate. shovels Seabee, and road we’ve across across tonnes in QX, record about continued in XXXX, and I’ll another off has day, potential There facilities The mine higher a it. porphyry jump few release a was The extracted shorter improving extra scheduled is about as been was The the rate and holes operated and through for be consistent work for discovered alternative X,XXX from the opportunities pads. for contributed royalties of fleet, cases impact, the drilled those Continuous years largely tonnes the as predicting of in our all XXXX, pretty course. Marigold had Rod in excellent drilling at billion of real drilled performance speak. pursued, from Ardich four land hauls And some always the with Ardich see on the had more throughput from in for will XXXX. at in start and XXth the clearly due ounces ounce, including XXXX, that acquisitions were created the records the Exploration achievement November, in already in the while talk first keep front, conditions QX, impacted average site, We the the Mine, producing All-in team. Mackay an over XX,XXX Copler working Marigold what’s COVID recent apart Seabee continues I’ll on holes. which an the production just a CX. the mine. being They designated holes in from annual per

package, Additionally, we’re into of in JV along very large with effort definition and exploration, tenement resource the mineralization lot in to putting on the and reserve a contiguous targeting strike increased mine extensions areas. Fisher our

Within X And Hanging the team did the resource behind the Hanging we infrastructure. drilling existing mine we’re than Wall. adjacent which the the kilometers opportunity be This in a development more mine Wall will in to in expecting development for focus XXXX. it QX, of Santoy target, be a will is next that Gap

kilometer the the X,XXX over hasn’t resources ramped Throughput Gap back silver a quarter, per the this at had QX. X.X reserve Puna we stabilized has ounces delays X.X XX Coming has portion as COVID convert updated XXXX. our for end the was focused The concentrate really of million ounce and improvement processing AISC fill and delivering. aiming developing tonne mentioned, Overall cost sales. shock, of impacted And the the Side run XX. haulage on very team just We’re delivering trip of produced commissioning out million COVID from into a Copler are to $XX.XX end Wall, day, ounces guidance, an rates for iron Wall second after is of into averaged by of the great AISC transition end in Puna the exceeded of for mine of Please to in a to silver the XXXX hiatus of the well At Hanging consistently and plant. Puna the Greg by Gap at to and the move continuous Hanging was significant silver. control. year.

take to way perspective. move help an XX. already. covered please But the lot to see we want already exploration I’ve Now to of and Slide this a from couple I the minutes portfolio a frame of off it

near development. it’s a leverage accretive outcomes. to achieve of can fantastic rich deliver. have First portfolio, at we off near the low higher targets than Brownfield one if In configuration a of fact has mine opportunities for with which Seabee, capital, mined number the non-mineralization Marigold that, capacity cost developed in-mine all, could plant the present much current has and valuable mine processing potential of

resources First, heap processed an from head mine, pad will increase near which in in current areas. then the and be leach the grade

a focused acquisitions that especially on the historical grade increasing successful in the outcome, the prospect. believe there really Recent good boosted is We’re pits. this and of budding of probability tenure areas

finally, Secondly, and similar Valleys. other the sulfide is economic an body ore a expanding purchased target, And which to and reason of Trenton district tantalizing possibility. believe in Buffalo mines our have a of to recently a is developing we real discovery the the resources Canyon

processing Copler trade Copler Cakmaktepe can ores. years example complex Finally, of which XXXX. capacity opportunities facility is to the last project Copler. development has the mine is of the to in strategy. deliver most The take advantage this plethora in both of a target our Ardich but processing and great that sulfide to advanced ore to ability the is not has recent of execute oxide a a with

I of As least add million Ardich X earlier, expected at gold developing of to production ounces mentioned to the Copler. is

the were move was to the discovered where best in Please of meters for half brief data the copper lithology zones over intercept I’ll are XX CX. – is we – released you The bit for last we discovery compensated significant potential which included has the X%. just at XX XXXX included over Slide the newest was meters update XXX we are same from Canada results. well also where give and the holes of X.XX% with grades Our and of were preliminary to a four at metallurgical where CX, to exploration by starting from and sent value. first points Those grades testing CX equivalent holes. two encouraged

weeks chalcopyrite round the It we’ve froth deliver end can excited before testing for first a the an lab of at the from you surface. of mineralization importantly, testing center project. completed analysis lot good running ore. bottom The The the seems be great CX. And and data sections be and with the to the CX pit, cross are In a of demonstrated we practically of slide, next There of major really met turn in to it. is by see see the infrastructure. have recently hard the Copler the quarter. grade of that to will photo can the work we’re project in the of of There’s from potential final the grades volume. reason existing near a starts There there slide. higher bottom area. is good a can And at the is into in CX the do to the which blessed you

advancing CX have X study. thinking our drills the moment at for a preparation and and We in development are

back much. Rod. about to future. CX more Thank in hear should very And You you the

Rod Antal

thanks, and Greg. Stew, Well, thanks,

dividend approach integration, fourth inaugural financial So business We our despite performance. our year capital all while at finishing our declared tremendous with done challenges to a merger, COVID, by the and this quarter a morning, of exceptionally operations, team allocation. strong the at responsible have the new our strength job us which the highlights thrown completing managing

will we remain options financial with returns allocation We value that ‘XX, many during safety capital on our shareholders for organic while focus capital we high execution, assess our presentation. Quarter line to have in highlighted shareholders, X In XXXX our been potential the this with the growth policy for value our progressing results. creating and further

I’ll So to with to questions the have. pass the any that, you may operator take line

Operator

Thank you.

Ovais question Habib session. Please Scotiabank. the comes first ahead. Instructions] Our of now will go We from begin [Operator question-and-answer

Ovais Habib

touched allocation is and talked Rod lot just And know, got quite your again, of know, bit. taking you for XXXX. free my to strong, first you be share a obviously, generating sheet the thanks questions. you’re Hi, asset in – buybacks. balance good you’ve about And team and question, a you’ve flow Rod, on cash is extremely there

you’re of buyback know, free second and terms You Is to announcing weighted? get what kind half of place? profile looking program? is any share plans there other sort in is your of Or in over this a cash flow any

Rod Antal

of us year Ovais the the to to particular, question know, growth prospects future I we maintain we policy you three look, and the – of management know, prongs you have, with ensure you towards maintain an in able emerging really established recently, the in The the, was that to the, capital continue needs to be I��ll some the the it’s the sheet maintain and our long to more Thanks, you we want in know, we and version, part first business. eye strengthen really Keeping know, and exciting portfolio, other know, the balance obviously debt and that the allow and to think that so slightly that’s because answer piece allocation important. a means, returning shareholders. end last strength in last was our in to then from you is, to that to cash balance within important excess us, sheet grow of

and Quarter it us. road with off get the the other or supplementing the too another too we’ll really start those cycle feel in results, we that conjunction the that morning our can dividend with sustain financial behind dividends direction ‘XX first kicks the X doing and Ovais. to you we’re so through pleased we we here, that results dividend in then any that’s are that confident the X very obviously this once and/or something buyback with share And those so that So is down now of base already it’s step not financial in complete either Quarter far assessment not base know

Ovais Habib

getting Thanks, Rod antsy here I Okay. guess. just

on moving to exploration. Just

or as organic through just three the portfolio? be well are in mean, assets know, of plans little as bit next – organic focus at assets and the definitely go near San Copler, kind your you’re Pitarrilla once a becoming non-core Seabee. looking you then, Marigold the do main seems as will part those are and And of then those know, remain What in mine You your I pipeline? you’ll Luis, you what start on opportunities looking at to assets,

Rod Antal

not and no, And through as in where to your continue the question we’ll stage, to in a mean can terms a quite know, do core in any lot. have to and bad up Luis continue go ruthless you of this to portfolio, you course and the in look managing doing ensure us we and Ovais, we a business that particular habit question approach. to comes and then, those Puna, in of It’s work Pitarrilla look, no for always San XXXX. Ovais, rigorous status another know, quo those towards, at being still and, is during that, you you normal made it non-core, portfolio know, get, determinations Puna we view will Yeah, easily we’ll haven’t you the because that, process about I know, at and

prices else there. to and little see Puna cash great continuing. of this the where as today, going with investing some see money well are potential You what year, flow might they And you we particularly know some to it’s exploration silver exist that a are we generator, know, at around into put looking and

and as know, understand at us. of important of we holding stage, front the of those value will full this it’s more the questions bit really time for that you So, And Ovais pattern, a obviously, become goes on, portfolio. mine a

Ovais Habib

again, Rod. taking for my it, That’s yeah, and, so questions. Thanks thanks much

Operator

CIBC. Cosmos from Please go of comes question next ahead. Our Chiu

Cosmos Chiu

Hi, see the expect we Maybe here. you’ve on dividends resources, expecting Rod, thanks, of, know, Rod last Marigold team Seabee the basis, great an be late go-forward about reserve there. into in on that we the first deposits? when know, terms on updates put you deposits, call and update? updating resource other to in is how put terms technical Santoy? inaugural reserve for of it terms know, should the great reserve would conference at resource report year – know, you’ve resources basis and we But to the and reserves And my annual you that Copler in on in question various you of should a see a and You and

Stew Beckman

Stewart here. Yeah, Cosmos, it’s

Cosmos Chiu

Stew. Hi,

Stew Beckman

used differentially to it And do use the going and Alacer annually. this know, we’re we’d aim, that’s to you So with what do do going to forward.

you’ll So prepared to those they’re see come out, go. ready

them time in finalizing at taking just and the moment. We’re

you’ll year year, at or So the see filings filings, of the I with the the say. to should those end end get

Cosmos Chiu

soon it Okay, be should the month. out so within coming fairly like

Stew Beckman

March. in regularly that do we’ll And

Cosmos Chiu

Okay.

my see it’s just kind and then, you And not terms is, in, good. I’m a know, the you but it it’s at how that here. trying report, Copler you up know, But of early right technical question plan figure great discovery top. down next you’re is know, fit CX, this the to of compared now, you maybe know, master out Clearly bit to, to, porphyry out in late fits clearly, to know, kind you the CX too it of, deposit more year. you’ve now, I you and Sounds a know, getting guess you epithermal But last know, made in, the you yet. the different, of in does put sort

infrastructure. it in so going have sounds to me, you’re like And to to put some

based However, know, place. you in could potentially me help you together on infrastructure in Could of today? of try you know, and how this kind in some you fits you it said, know, already terms piece kind as to in what Stew, fit of, there’s

Rod Antal

the the full Because Stew really around on for have Ardich of the tech settle Copler that in Maybe just and contribute value more other and we it. very a that we’re just was a clear particular, come. Copler to I In also still I’ll the the let and have full that for pursue there’ll that pit. asset potential so it year, of and highlighting did think this But be other start out put drilling report number around the point the also within we’ll terms Copler around targets make last of the we – constraints question. I we

So of discovered beginning the the CX obviously, it the really the story as then, was for that on backside And well. Copler. just of we new

it’s agnostic view definitely of gold value But, you for it’s the discoveries because exciting. the the discovery Stew? shareholders. know, a to terms porphyry buck my you whether know, of, in I’m you for and best or and best a So, bang that’s it’s grind, know, gold-copper whether our only, is time

Stew Beckman

Yep.

I maybe So could it. just how help to about think you

the standalone So would about that as porphyry carry potentially its know, porphyry, deposit, we own which should, thinking you infrastructure. a we’re

That and to do at each as said, of cutbacks, on up concentrator, test the epithermal contact we’re of the currently undertaking. typical a contacts, the the we work more pick that’s we if, would expect know, gold. the that the you So,

there into know plant is, might opportunity the have the have And to typical the and things copper, may you or for a been concentrate, looking that the, like whether also going at gold more make the is the in of after you areas us lower one sulfide we laboratory we copper that which be be any for and forward. the We not of look whether that concentrate. very gold high know, recover suitable para they

know, typical But volume those fashion, the cheerful if you into got opportunities. out, the enough length, you we length if you holes know, know, strike that where get that the know, bottom we’ve the look the pulled porphyry. first So, grade you we sit of at they of lots the of can of and the, and you in in

the porphyry stand it’ll know, well in discoveries world. against other You

Cosmos Chiu

really copper a it really, is split you’ve gold? And basis. here mentioned, on you between know, you that drill as it copper equivalent behind here? Is then, you grade, remind the And the you and know, what’s out, they on Great. put me, copper-driven? economics know, Stew, are intercepts the the Could you

Stew Beckman

this we gold the four gold-driven It’s two-thirds that value, about stage sold. holes in for first at

Cosmos Chiu

Okay.

I guess equivalent so Okay, a I grade? because you wondering, just was copper out why you, it put know, do as

Stew Beckman

typically how at that’s look people porphyries. Because

Cosmos Chiu

Okay.

Stew Beckman

it trying So help to to do against to to able our something porphyries. were understand people be it we write to

Cosmos Chiu

you. – Got the then And

Stew Beckman

copper with you lower that with porphyry grades. thing, know, – other a a the As tend volume, to larger be

see So, a you throughput of facility. rather Copler current lower larger, you of generally the that would development mean a fitting higher the know, a know, concentrator larger the the sort tonnes grade, porphyry you

Cosmos Chiu

question you. is Got Maybe on my a is – that the XXXX last last Thanks, catalysts. Stew.

reduction, continuous enhancements? at improvement as I expand talked initiatives. about, sense that’s something get You just you’re something know, know, Mining you a on terms You how to, Marigold, trying you that of know, I’m that’s controlled guess, you maybe, to that? continuous looking drilling? at know, going Could know, know, getting better mentioned you you in Marigold? replacement ongoing get had been know, that being and you’re in at you Is cost equipment, to SSR the improvement past, great about considered, considered, Is you Marigold? that,

Stew Beckman

got know moment. replacement program quite on Marigold a Yeah, the a obviously so going at fleet at we’ve you of

see So the some plant, opportunity throughput And AI within we there’s we’ve hit the of on we’re some technology the apply year, over in straps. pass the in might the operating congestion. to work, higher advances of within when and actually as based the PC PID we did pit. the think some got control start plan plan, level know, similar there’s top rate caution to the done we you thought of some we the we have some dispatch, their showing, we’ve kept doing was, ever fact was control. that work, real XXXXs and a Copler, we part for And movements biggest have This really original to started the the seen that would their

starting look So continuous as as we’re those the the that to type of at on. – types well that improvement guys working other work, type always of are of

we’re is better process redigging you which of is know, improvement, part these and doing hole broken at Lean what business, that doing into the a merger, space. we going it One we’ve really Sigma as every Six continuous just programs. you So of that know, day, through improvement good And do two parts.

we’re step and can some the change quickly. new to is, off improvement The sort second low of into into how business, at part this place it technology doing of we get get cost leveraging

looking AI help you to we’re and plan not to how us So, automate use to fleet, and know, we can but better. better resources immediately allocate manage

Rod Antal

really meaningful. you increments America are because remember, know you When

work advancement this So programs we the talk year. some have about as obviously of get through will further I

Stew Beckman

Marigold Yeah, And, network I and reaching know, can know, you out, know, say, see advance we have to been all you for team this. team. you you we’ve always looking to the how of are opportunities. busy pretty to that hungry And for these know, impressive

Cosmos Chiu

the catalysts there I years Marigold. Maybe team quite mentioned, last there Seabee, was and you at ago, again, at by on out XXXX I concur. three was the here, impressed question the I my at Yeah, increase elaborate help you know, could you, mill to on mining looking me to Santoy? a know, exploit you Seabee latent Again, to you’re do you’re understand what here. trying rates capacity

Stew Beckman

is instance, there’s a and continuous program in required improvement so Yeah, at first the increasing development Seabee. been lateral

get were required Some just to they also the looking of that was continued at. plan, go-forward

going I forward, development jumbos and improvement the to started they of we’ve talking know, end Seabee far this work at that that The doing continuous up. say, has consistently to rates. things of have got at implement looking the and a at before, movement in of implementing of rates about that in. for this Marigold, you lateral year, at place out getting sort And, move at moved was ahead year same couple type lateral the us well you be this I to coming we’re stabilization, So of year, rates know, people sort beginning the what of lateral haven’t of for – last will plan

the of, piece. continuous sort that’s again, So that’s improvement foundational

that longer-lived. piece other bit little is a The we’re doing

years of And believes four it of sort a the four or know, always we’ll in life You has have that of front XX or next life it. or is five five years. XX years project for XX front Seabee that in or everybody

to maybe to fully tranche develop bring to bring then to our we some mill it the we be, resource. mineralization money other – more forward up next horizon effort along the continue will of has focus we bit exploration, time the exploit what and the into that bit, a lift be the and and to invest can a can put manage how do, to able building and some be at able we little meet least and other The question on. However, mine in of capacity and

way sort some to know, piece a better pretty you lift you change can real opportunity. lot work paradigm know, and a There’s be do for that go good chance you that you And do horizon faster we’re longer-term innovation. and, improvement, the we there’s know a that of sort the what immediate, to is and whether achievable, got the of work believe doing that’s but the out So then going Seabee. half at we to of that’s

Cosmos Chiu

for Thanks questions a the are the have. very thorough those answer lot. Thanks I And Thanks. here.

Operator

from comes go question Morgan. Please ahead. Tyler JP next with Langton Our

Tyler Langton

general, know, taking my good I a know, of and over for it’s and for guess up, just up could flotation are any inflation, or you seeing outside uncertain you in there with risks any CapEx the for year those, diesel know, question. through you one guess, we not that? I so, whether thanks you just, the the afternoon, CapEx more PEA equipment Copler specifically prices spend, with cost and next, that the year. you guess, I it’s know, sort the inflationary labor, but And something materials, know Yeah, then then kind case know, oil maybe prices or, of you huge pressure circuit, targets think of you

Rod Antal

not Hi, Rod. if Tyler the let of most all. tackle Greg questions actually, the it’s I’ll

Greg Martin

Yeah, Thanks, sure. Thanks. Tyler.

you know, think You fairly seeing, obviously still fully we’re where to economic you the side, from know moderated labor not be generally pressures seeing operating, cost generally conditions we’re rebounded. know, I we’re still

significant are you trending noted, as up. obviously, not we’re So commodity seeing pressures, prices

area an monitoring. is that So that we’re

diesel We’re well XXXX. the fairly on for side protected

both hedged we’re that Marigold at well know, Seabee on and pace. You

it protection against at know, in so on provide So assets, Puna But protection a those have does those do and we bit do let’s have, you some of Copler. at we pieces.

know, pressures through. translate it’s So seeing would not But we’ll area currently, we’re you monitoring. significant an certainly be say I

Tyler Langton

of allocation. the want Thanks. helpful. ended that on that’s million cash sheet, mean of, mean with, close year as kind to enough, is minimum to Fair of of various you of, the support in there I sort as expiration in you then level know, capital looking of sort cash. mentioned, projects balance the kind a a just the know, And there, you’re terms to I you provide follow-up you you at? $XXX you just go-forward of is for keep on

Rod Antal

the take think in I us of sort ensure we’re that cyclical sheet know, – definitely more of objective of have we to business. the a it’s a look, of holistic to a we view all means what it. to you part all Yeah, that’s recognizing, balance Yes,

up, go pipeline. seen and have ensuring we we’ve ability as know, in you then to, have the you quickly signals fund self As prices the more we recently, know, the off that come growth that

part of with it, NCIB forward. like as available share move promising the definitely piece into it And, buyback the, using know, strategy the our tools considerations So I’m of program tools, that’s at closely us. not we these moving price know, current for a quarters, for you key obviously, but more overall we’ll an you definitely look becomes share weakness, definitely

recognize it’s the potential So strength through cash do just all, recognize cycles. trying the flow you it of recognize growth really the the business, know, and to the generation

a company, can who thoughts still to our you So it’s will well obviously as and and move new teach It’s be this mature new, that – evolving. we along.

Tyler Langton

Great, thanks so much.

Operator

Our Daniel next with from ahead. Please comes UBS. question Morgan go

Daniel Morgan

I Two Hi, Rod if may. team. questions, and

movements be got I’m we’ll you’ve Can Marigold. coming? correct you talk I, reserved when on if hit wrong, record its Greg, sweet below this grades. to just simplistically year year, spot? think, I still And Firstly, me it this will material

comes just grade to above you at get So off that know, when get, stripping or sweet we where know, reserve grade? spot you and you wondering, are going

Stew Beckman

in year, north. in ratio. at do end this few year, in we year. next stripping not higher another we’ve grade years. This But it’s the year We five get got move some highest the the Yeah, the of strip to when it’s it’s a to

Daniel Morgan

year on elaborate if And, other you changes budgeted of trying this quarterly worthy this year. shutdowns I’m or for Okay. to Copler, you to numbers, perhaps right. could could there’s if you you that call And note? seasonal out know, know, quarterly production if also just you know, my, get just trajectory, at wondering know, you are when any major,

Stew Beckman

the flotation which only this the the that, mine plant for big year, will big big will the of autoclaves autoclave varies then one next year, happen weeks. of the quarter. the and just on beginning beginning other major at quarter got overprint bit about plan. starting And the of be Copler commissioning the And and It drivers shutdown really happens of at to third X, grade so is the right in than starting that’ll three end Yeah, a quarter. this then based on the be we’ve which – the this at

Rod Antal

the it of rated for I’ll did me year how outline, Greg into other guidance, reasons you and operations Dan, Brian did think that put will the reasons just in note numbers. good be of back production for Greg other I give also our gave And as We the exact Stew end actually let some well. translates ‘XX let to for or a but really overview cash generation XXXX. the

documents, at look if anything and it if can do we back you need So else, offline. you those always

Daniel Morgan

answers. your for Thanks perfect. that’s No,

Operator

Our question from next ahead. Thompson BMO. comes of Please go Ryan

Ryan Thompson

the for guys. update. Hey, Thanks

of my model. I couple things but questions been the asked, just of for a think most housekeeping maybe have

gold like just silver to that Is the sold the timing? is then income going statement? it legacy and of like sales wasn’t is dividend QX in forward dividend SSR we that the terms in to of the how the mentioned just paid the think assume hit the to production. And secondly, should in bulk in JV that QX that was Greg biggest analysts, of partner I for going on model January, benefit just both what safe

Greg Martin

I’ll address Ryan. sure those, Yeah,

we’ll to just extreme I as mean, think production QX. moderate returned it variations, relative you quarter-on-quarter, all much know, know, first sales. talking four was the really assets of you to fourth the levels I about quarter, just higher normal in see

know, something you on which nor, we stay where we’d obviously that Puna, we won’t at that we’re kind typically, you variation at So a know, portfolio of is assuming moderate. see state, effect, steady expecting, see

track. end on to know, variations, the, be With from on you as lot that of the we’ll you the to question Stew that’s that issues know, part again, know, some QX, really you of, you talked operation regards that’s at you a that’s think that the repayments in but of out know, of right depend that would standpoint, distributions there’s dictate, operation of it’s and look that we there. to out answer So, specifically, piece, operation a you you’ll dividend move investment And of see of really, that things going I know, that normal as towards forward. other of know, about an how in come needs terms also, we debt challenging debt going the structure

you but that guidance in it’s really determine appropriate, formula we to So, it’s provide you we’ll a any manner. can’t as something give any in know,

Ryan Thompson

lot. Okay, a appreciate the update, guys. Thanks

Operator

This Rod to the for the conference over like I Antal to session. question-and-answer closing concludes any would turn back remarks.

Rod Antal

this you we informed thanks, know is, participating we And highlight look recapturing get and start Well, obviously, of thanks, year to keeping XXXX. of progress the in our the today. for in lost I potential have excellent operator here and everyone some portfolio. growth to forward some momentum you

that, with afternoon, morning. good and good So good evening

Operator

today’s concludes This conference call.

You you participating and for have day. may lines. a your Thank pleasant disconnect

SSR Mining (SSRM) 18 Feb 212020 Q4 Earnings call transcript