Earnings call transcript Q1 2023

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Operator

Hello, everyone, and welcome to SSR Mining's First Quarter 2023 Conference Call. This call is being recorded.

At this time, for opening remarks and introductions, I'd like to turn the call over to Alex Hunchak from SSR Mining. Please go ahead.

Alex Hunchak

Thank you, operator, and hello, everyone. financial SSR will quarter our provide a of joining during conference business for review we which an our you Mining's XXXX first call, and Thank performance. update on

financial website. Our first with GAAP. are EDGAR, financial These also have on presented have filed ASX, in US been statements statements SEDAR, quarter accordance been available consolidated XXXX and on our

relating the in is are our online otherwise webcast, during release find call, our include will will webcast the there discussed an Today's statements. this indicated. note information accompany in Please access To you to figures unless call. that to news and forward-looking discussion US all dollars call the

the So the disclosures documents. relevant in please read

and CFO. Alison on White, Rod us Joining call CEO; today the are and Antal, President

turn Rod Now, the opening remarks. to call his over for I will

Rodney Antal

to you first Alex ended We delivery, focused joining Thanks hello Great. results and quarter and are expectations. and thanks for and us. all aligned on our operational the execution XXXX to well

We flow are cash production quarters free our strong and on year. of to drive the targets all costs the in and track the coming remainder for for expect improving guidance

production XXXX, reiterated maintain the first guidance, XXX,XXX we The our deliver remainder of our the of over significant a through annual requirements. updated expectations without with of ounces level capital where we to to three-year quarter release began expect decade the

stripping work Red to as Çakmaktepe support that in support XXXX activities waste programs key new investment longer-term including of track number first where Dot. trucks extension, at four a production preproduction as at to target, progressing activities are remains the We well haul for production on

support potential impressive some our Puna, have longer at XXX,XXX-ounce which results with platform. we mine, reserve providing continued addition, production term to In mineral drive from portfolio further our turn, exploration in near-mine to the growth to the of release very showcase the

showcase catalysts Çakmaktepe updates their extension, Marigold and year. first the planned to number We This other Çöpler at exploration from targets additional key this results includes report have. technical have the a upside of and production from we

returns outlook of in robust quarter on share well in capital We almost positive as continued buyback the expect the remain given remainder robust we with sheet active liquidity, to our million and the our $XXX balance program total the program. year our as for

for We XXXX. mine and have across we of a solid history track deliver the have nine ahead. and our quarter explorers, excited With guidance remain operators, us positive coming proud results have year our the fore catalysts builders, years business, the done to before as consecutive targets over first on we

to XXth and four published Report, on ESG going slide Sustainability marking effort to the sustainably, ESG. annual stakeholders. to move maximizing while operate step all was responsibly with our continued benefits On SSR to I we in our of another Mining's and April, fifth

for long has company firmly been and as and value is ESG it our underpins focus the core a success.

We and and performance and continue implemented have in to business the leadership initiative engagement safety of our employees across a improve focus prioritize company. the formal health and drive the safety field and to recently partners

the to are closure on assets leave mine for which and lasting each ensure water strategy global and help for management water in integrated implementing operate. focus plans resource also communities a legacy was as for to communities. water vital now and the a our the operations positive development we key one continuing of year plans ensure a Another efforts we We're of we last manage our

incorporate evaluating continued options plan of to net will key initiatives renewable zero, including our decarbonization action Additional on this technologies in journey operating and energy year towards our development platform. include an

updates forward year. on ESG of throughout our to continued have hard As worked we initiatives the sharing the previously, we look done journey advance that to and remainder

number move to on five. let's slide So,

platform which XXX,XXX of reiterated we As the ounces. mentioned, stable guidance, production three-year at expectations least a I released our for

through a and of deliver the to expect production number With initiatives that underway, the level continue growth of decade. we baseline we can exploration remainder robust the platform a already

Çöpler Later project expansion for well incorporates this maiden year, life as mine New an as Marigold's we will updated that of release target. from mineral reports plan with updated CX new technical the ounces Millennium reserves

each In have Puna, provides the mine highlighted recent Seabee and opportunity activities the successes drilling lives assets. exploration to of in releases near-mine that extend reserves build of at one

to aim in these will We opportunities XXXX. showcase

reserves outlined only, these existing of the to on largely a the In number the on through while this production technical and slide update reserves value opportunities platform to build updated we report year. short, of the The from is is starting end positive on centered purpose see at mineral this with capture portfolio. within of to the upside respect report the production technical both

Let's -- as number slide On value-accretive reputation move six top project number of on history six. have a we delivery operators, proven to M&A. our of and

remains to M&A unchanged. Our approach

strategy to and continue consider that and our focus growth jurisdictions that free flow. core our add cash to actively We our of transactions capital-intensity low to on evaluate fit value business in through complement opportunities

two -- We Seabee, we our at ownership on an advantage. have truly two we in-mine and successfully feel delivered assets in where building jurisdictions deals in XXXX, of Çöpler these we have

So, I'm seven slide turn going the to presentation to number Alison. over hand and to

Alison White

our business, committed to We on to final Thanks capital our approach capital to well-aligned remain disciplined to sheet the and our return reinvest continuing pillars I'd which executing three to Rod. returns ensuring like our of our record, balance the on first in pillar shareholders. three this strength, to program to capital are track pillars year, strategy. allocation focus and

dividend of shareholders in program. the we've form million our of April, Through share end $XX our returned buyback approximately base active and through to the

consecutive been of to two million cap. our Since $XXX annually. or averaging beginning in XXXX, XXXX of has approximately market shareholders strong nearly with X% follows the start XX% current total years to shareholder of capital Our returns returns returned

Rod value-additive catalysts a and of on As mentioned, number the we see had positive horizon.

our shareholders. further to we share way value As view to our such, as accretive an buybacks deliver

let's key points to the few a like There provide I'd today. will our review that a take so results. eight look highlight Slide are first at quarter, of a

first also guidance expectations ounces at in were was during associated planned in $X,XXX Marigold and The of higher reflects spend purchases with Seabee purchases sustaining winter season. a with an our of production quarter ounce half-weighted capital first All-in with truck haul budget. line sustaining included the of XXX,XXX line which profile, costs road and

second remains more Overall, year even XX% weighted cash our production flow weighted of full the half our year outlook to to XX% of the profile free second year. to the remains half heavily the and

Also Puna in release and As our to fifth pleased to and track results on quarter, the capital we guidance positive planned, ESG exploration proud sustaining sustainability annual from report. were for remains XXXX consolidated remain targets. within we and QX our announce

sold financial share. XXX,XXX per now in $XXX on And equivalent I'll and In quarter, share or slide income revenue. per detail $XX million discuss adjusted performance or in our million was million Attributable first generating was income $X.XX ounces, attributable $XX the gold more net for diluted net quarter quarterly nine. diluted the we $X.XX

cash were quarter working and of million by before of spend cash were free in changes and First slides capital $XX flow cash million the the Operating impacted negative flow flow flow changes working million. the operating and previous capital. $XX $X cash and CapEx mentioned $XX free million on in expected

prices and Overall, cost headwind our track consolidated for and by inflation, we've remain cash from half-weighted a power anticipate respect across and we portfolio, to cost some guidance. second on supported continue we capital seen consumable relief noted, profile, flow the labor diesel full to free production pricing increased improving As remain that pressures for note year a but With and costs. us.

of our about $X.XX side of talk company's per definition earnings share reported share based Let's calculated that income per in attributable the shown and the is adjusted is net on presentation. on the diluted right

make to specific attributable share items reflective exclude the and net ongoing $X.XX operations. are of then We the with that adjustments of after-tax of start our company's not per income impact

a onetime primarily recovery featured with adjustment This to as in portfolio. to value as tax investment market assist impacts, efforts of adjustments earthquake our tax minor Türkiye for a quarter well the including

slide to about talk XX, position. financial we'll turning SSR's And

pillars remains first total million more cash net million sheet strategy million liquidity strengths key $XXX and of of the with one the than $XXX in cash. balance our $XXX nearly capital at Our our end nearly allocation stood quarter. and at Total of in

of the in is payable maintaining potential commitments, a to price. the base dividend commodity per downturn all fully to in weather ensure price. our reserve volatility event price quarterly and in a are $X.XX the a debt funded sheet balance servicing capital requirements, committed are payments gold ounce We to $X,XXX gold and The of environment robust to even share dividend of base our

$XX across in At as will well return the we that of CX the exciting continue dedicated growth, more have million extension than exploration to our plethora as our internal year. same we to programs projects, and high this time, reinvest Çakmaktepe portfolio exceptionally including

of Finally, strategy. represent the our our third peer-leading returns capital pillar overall

track previously our a minimum the discussed of XXXX, annualized X%. buybacks us base in excess year share dividend on and for far in capital yield So return full have

We capacity will approach on million June. current the buyback to expiration to share repurchase later buybacks in before have remain program shares to and in our dynamic approximately X.X up its

returns a meaningful capital the for significant tailwind over Our year-to-date the are company.

back the a And to as walk I'll assets. to on leave I Rod turn discussion positive through it the note

Rodney Antal

Great, career Operations other Bill perfect. as welcomed Thank at Sustainability successful MacNevin amongst we very year, Barrick after EVP this much, a you Earlier our and Alison. places.

of the assets. on laser-focused help to has Already, Bill excited streamline opportunities drive costs each arrival, a ensuring been his he down from has and continue see the identified but his number would and to Since we're year. delivery expect, and both of as and the later hear mature he's under to him leadership. in performance in from in ESG field, you now you will our portfolio Right operational

Çöpler. sustaining quarter $X,XXX XXXX. the XX, now expectations at of second number starting half reflecting XX,XXX profile slide delivered to XX% I'll to one our of an ounce, for The weighted mine a production ounces production all-in of with per off cost talk

last its quarter showcasing successful X,XXX plant Impressively, the of September. tonnes per above the delivered sulfide the since with day, second ramp-up operation throughputs consecutive

this In addition, the early be full three. quarter shutdown, we or plant are either will for late quarter in finalizing a which plans

more We're production quarter. as million fourth the at be in continuing also ounces expansion Other through to CX extension Çöpler the work than from programs work opportunity which continued published from including X.X project. pre-feasibility scheduled, will Çakmaktepe on study, the first the the

existing successful we to-date further study the optimizations sheet been to on Technical flow the and technical and has and through work incorporation released refinements. report improve drilling the built of potential in results XXXX, see original

quarter regional target, where Exploration expanded ownership including across the work district, continues in Kartaltepe our to Çöpler the XX% four year. last we

we suite We during to longer and term full opportunities across have the district, continue will aggressively a of growth advance XXXX. near these and

the to the XX% XX% profile is Marigold line weighted with the XX,XXX slide the that year. Moving first half production quarter, in in on to to of XX. ounces produced second plant

planned the on haul truck the reflected sustaining costs waste of start the quarter spend of in at All-in has $X,XXX target. facilitated the the first stripping purchases that new Dot Red

complete forecast will sustaining half haul the remaining the of remain and of elevated costs the sustaining The capital all-in to as in reduce the second year. quarter we in the trucks, delivery we second

year's majority last to -- in continue of expect remaining second final to We in from material ounces the quarter. stacked the recover the stacked the

remainder at of durable Marigold the return already and stack have year, to ore typical the During we cycles will more normal. leach seen

Millennium Marigold report working more remains on year updated includes two we This and for We're of strong on are full technical ounces. new upside. XXX,XXX a for particular, years progress than to of the in XXXX to capture where the of drilling incorporating work continuing production ahead XXX,XXX track Marigold, target. to with an

is the underway southern Valley pathways and end property. longer-term both Buffalo Work at the Canyon at Marigold of identify Trenton to production

to the with resolved impacted issue equipment mine a quarter So, reflected availability underground negatively schedule. XX and production first Seabee's on slide moving now sequencing Seabee. that

to full we while while operation, represent this production period working result, had year of a hard the the are grades first processed below the to a we expectations. Seabee, guidance As quarter for will lowest be were the expected of challenge. And hit

weighted road In are means the year. to addition, Seabee's winter the first costs season heavily of half

the in mineral near mineral at prioritize resource and activities as life growth mine exploration Seabee Work continues to we advance to ensure future. mine conversion reserve extensions our

early Santoy exploration depth platform. mineralization targets that well as stage could also as longer-term and meaningfully Porky production to continued targets contribute West We existing to like Porky below regional the evaluate Seabee's at

to sustaining well On remains with of an production and half Puna XX improving again Puna. Puna a ounce. of XX% full all-in strong an to with for X its to the year in are track ounces once weighted costs also delivered half and million at on slide two. cost guidance production $XX.XX quarter second XX%

the In efforts the positive of near-mine life announced reserve to results focused Puna expansion and as quarter, aim we exploration extend resource we mine on from predominantly plans.

term We Cortaderas also represent successful longer the could which growth drill step-out the also the results opportunity mine. a for on property, at demonstrated target Pirquitas

across Sitting on of XX, on portfolio other to work exploration the growth assets, and our success of Moving exploration. the globally the continued Puna opportunities.

exploration continues these all the reports assets, excited with starting results fourth to four the and forthcoming New and mine of in producing we're Çöpler quarter in to this advance year. in Marigold technical updated showcase

have to Work core Hill our in shareholders our recognizing continues have. plan to we we significantly We from expect an the significant in at growth Copper greenfield target the organic we value jurisdictions, target through coming the and exploration across in can deliver platform, update to invest months.

So, open just to I some up it concluding remarks Q&A. before

throughout targets some year. started the we well lost heard, of we momentum you as Now, year against to forward look operational regaining as deliver the the our and

program by second free flow the expect activity into this year. on of buyback half firmly We share evidenced continued capital deliver to committed as strong our the remain and returns to cash

We're will upside mines we've in excited that Çakmaktepe first from associated explained year. released and new with for during Extension potential Çöpler as including catalysts be reports later the the this our well for many the the that highlighting technical project the planned Marigold production as XXXX,

Mining to the of in to great a look and remainder continuing year. is position, throughout that market we the to SSR forward the demonstrate

open to questions, with that, let's up operator, it So, please.

Operator

Mr. you, with Antal. first Instructions] question RBC go Markets. Capital Please Our ahead. from Michael Thank Siperco [Operator is

Michael Siperco

on couple for if very Marigold questions. team could. much of my I and Thanks Maybe Rod Puna, and taking questions a

Millennium, the you coming. whether some backfilled could what say you're guidance But about account sequencing update bit I New have XXXX that in pits? Trenton, Valley? more you're could it's suppose, point, considerations of longer not you you possible the that First, about the be this or the into can thinking Buffalo I at a know in Marigold, talk And term on how there, for new lower with taking

Rodney Antal

we've similar key over for to the getting is years. us assets exploration Yes. few the and -- of doing focus been Look, is right of conversion Michael, last all now, the of Marigold, some the actually the

emphasis, and real improve been, you the will have some opportunities values is near-term it as current for the has add that particular an and profile. with the life production at of point The Marigold emphasis rightly that to the course, we of in particularly opportunities production on as looking out, fill And to profiles them.

opportunities mind, been in the effort So, around in New with an and that oxide particular, Millennium around immediately it's the really target.

key will So that be a feature of the report. technical

Canyon and that, of down we doing future, got to of the both also we're and that pathways, while like, we've is But southern Trenton an of Valley. to eye end longer-dated those to you sort doing if work the at the Buffalo opportunities property developing are the part and at looking the

they and improving really the So, longer-dated it's But focus of future they're of But just how much we're the more thought at concepts are cycle. play might production our in doing how stage some of Marigold. a profile profile in production about of extending initially, and processes their early on the terms thinking them, we life terms initial in Marigold. into

Michael Siperco

exercise characterize out each targets to fair they'd sequenced, around? at endowment it how what mineral it or this move figuring be point is the how the at figuring is you'd ore the both? out Is of more Or as

Rodney Antal

so. talking two about at remember, Valley, There bit opportunities, Buffalo that. Canyon oxide talking the and particularly little Trenton the -- a different of there's potentially And It's if we're are both opportunities all there. and and things you're sulfide both

way is into rather in are it processing pad support et And area, location that heap put cetera. own Marigold than cetera, to down a its et hauling up some of we the mining all considerations leach large it Should the enough those infrastructure.

they're doing size So, the that up the price. early of some also the we're is trade-offs, to catching considerations help in but define drilling of us

Michael Siperco

You've solid in results. great. obviously Could the that's maybe Puna update That's Okay, flipping think exploration portfolio? how helpful. just the on Puna. about to you maybe had And you us

You've been reinvesting.

higher, jurisdiction you And for of core it and we has Do a of future? this for value to foreseeable moved Argentina? as think operation in still reinvestment get silver too. you that exploration expect and silver? do you think level core continue Obviously, Should full the

Rodney Antal

take step from exploration perspective, it's of some an if years. first into I and Puna, and a And programs. under-invested Yes, been you probably look think last our putting really back year exploration a at number of for actually more effort was the effort dollars

in for extension to we're a and were surprise for And that I outstanding releasing life mine drill one results do potential the not clearly guess, the show a assets. quarter there us,

that's start. So, good to place a

they results dollars play mine they extending those picture understanding generating will the Puna for and life, we're it. into to for more how into the while get So, longer-term invest

at to Puna us an as understand But remains -- as be to stage, us. an important it this continues potential asset in really to that And will the portfolio. evolve, core SSR asset a full to asset its

pretty it's down with there. exciting results getting some we're the of So,

Michael Siperco

the and great. pass line. No, you. Thank Thanks that’s Okay, on helpful. I'll

Operator

Your Instructions] [Operator Chiu is with Cosmos next question go from Please ahead. CIBC.

Cosmos Chiu

and Rod conference for thanks, call. Hi team the

off the of Could might QX, quarter me they Sorry, the you as questions not But but minutes you took equipment in on elaborate were have XX if resolved? best first XX to my you downtime because some in. mentioned. maybe were the here, maybe I it Seabee, and get issues answered minutes Rod, first what how on missed

Rodney Antal

actually weren't Seabee planned the maintenance, availability. and was that. which to scheduled to I'm to mine we answer XX do some the answer we the had access missed issue that equipment you on that to happy for but meant Happy able rates questions. sorry minutes, questions. your look, Yes, just schedule development Look, first the the meant had We

to better of the be. planned So, instead where we're areas grades, some we in hadn't of accessing

as as simple that. it was So,

is it you might back of running. and fleet but stretch guidance. bit up a do it bottom to sort a to can behind up, quarter get we those, overcome to end be the back But and know, now catch of We've everything we're with us, that back as to a of going

perspective an if again, But contributor. other from materiality, look smaller a overall in it's to I it at compared obviously, the assets,

on So, stage. this consolidated basis for at not us concern a it's a

Cosmos Chiu

think Of grade. to in mentioned that you course. back you're I reserve And up MD&A, trending the

away? back I to think look it How does Are reserve you Is it grade? to is right per gram at it get like how tonne. grade linear? should X.XX work? going we And

Rodney Antal

as sequence, you the on Look, get would into to cost. more we it expect average back normal as be that soon

we So, answer yes, back it the for get year. your question, to that would to expect to average

Cosmos Chiu

Yes. And to the fringes year. to then, that find look point There in at some was do positive exploration Rod, you a of see good point think around the see if grade. to reconciliation you're was last where trying I and year grade to very higher one some time, could

in MD&A, Seabee? that this saw mentioned higher of potential I could grades that but last here any an the terms Or year? is you didn't in X the of it see factor year terms there in of be kind

Rodney Antal

certainly efforts, exploration the and we this looking part program do at actual at is of true, depth. of the that's a have We're the terms That -- year. of still in work mineralization continuation the

practice leprechaun a happens if to pots, In of in to Cosmos, way. that for But we planning out, play us. don't dangerous do. But look, that lucky terms play the that's

Cosmos Chiu

the if the is on play don't So, leprechaun? bet where you

Rodney Antal

know. you'll be to Cosmos, do, we first if the Well,

Cosmos Chiu

hear number talk All Çakmaktepe you coming if CX. can catalysts year get ounces a the of Awesome. you how of I you Maybe you? Çakmaktepe terms to coming that about great or of production ever much right. in, terms your Thank extension Rod, forget you. for didn't, up, then in Çöpler? Extension you Çöpler, accounting in also to and are to Did for Have of gears disclosed, ever switching for guidance to

Rodney Antal

that, of this is And it I a the location. Cosmos, Çöpler that to But third Extension. probably XX,XXX Çakmaktepe put don't year ounces. actually into the overall, think we by part production oxide XX,XXX is of at

Cosmos Chiu

about project, that more the CX platform. like the what on potential from we Great. of project, Or could upside few you've CX XXX,XXX Yes. of months see -- ounce you is within what us, sort sounds a -- And a your Could the Is ago, here. included? remind there's then talked included? that you are lot we

Rodney Antal

back, discussion the -- Remember like the one the around CX first when was report, in a was -- there itself the we out put technical round a get remember PEA and also back almost case. step

a very initial So, what we at CX. saw cut sort it was of of

we've said times, those level we're is is the and of update, into ounces of since which detail and to PFS, this us a put now study. the a so work into next -- as later round That it of doing were that then higher included. to number take year, But a

the And that the there's continuation some of might us. CX. type lock that two optimization available up really really been having other sheet sheet of two, to the that doing. to is focus areas One beyond flow exploration us there But efforts open for down we've the of including opportunities flow

work not because at go sort I we the you work of to CX the evolution And was still doing in guess it's this study XXXX in progress, the way, of what expectation our of saw what more and just the it it's will become. another in say too So, moment. more probably the a in through the upside we're much to to is expect -- start on but call

Cosmos Chiu

Rod Yes. course. Thanks again. Of I those are questions the and and all Thanks team have. Great.

Rodney Antal

you, Cos. Thank

Alison White

Thanks Cos.

Operator

the back Antal. question-and-answer turn conference to concludes This over session. Mr. I will the

Rodney Antal

again, and joining a much very the very thanks soon. talk forward look, And all to much. to very you Thanks call. on Right. us XXXX Look for strong

Operator

This concludes call. today's conference

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

SSR Mining (SSRM) 4 May 232023 Q1 Earnings call transcript