Earnings call transcript Q2 2023

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Operator

Hello, everyone, and welcome to SSR Mining's Second 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 with SSR Mining.

Alex Hunchak

Thank you, operator, and hello, everyone. Thank you for joining SSR Mining's second quarter 2023 conference call, during which we will provide an update on our business and a review of our financial performance.

consolidated have XXXX accordance presented quarter U.S. with second financial been statements in Our GAAP. have on been ASX statements financial These filed also on and EDGAR, available our website. are the SEDAR, webcast, call, is information our access in this relating webcast news the will call. accompany To to an online find and there the release to our you Please U.S. all discussed the during figures that note call in are otherwise indicated. unless dollars forward-looking will include statements. discussion Today's

relevant documents. So in please read the the disclosures

Financial Executive us and on Sustainability. today call Executive Alison President, Bill Officer; Joining Chief Vice are Rod MacNevin, Chairman; White, Antal, the Operations and

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

Rodney Antal

Great. all, and Alex, thanks hello us. Thanks, to and for you joining

to wanted in and joining I his call. welcome the first field started, I MacNevin, pleasure join Bill. Bill earnings for months us him He's us. to have Before the last finally been for to is who six quarterly call, get a the introduce It's

half report generally operational it out and close XXXX, start is solid, of Puna we to have aligned at well to-date to pleasing from results the year expectations. been Seabee. our the Çöpler, As to slower offsetting Production Marigold consolidated our have first partially that the been

as second our free the beginning at guided we expect generation. majority year, flow cash the Looking the ounce and half forward, the we provide and to of of production

flow. positive cash between relatively portfolio and is free Our expected fourth costs, to of approximately the third evenly generating at deliver GEOs split production XXX,XXX strong quarters reduced

the confirm year. over in that our $XXX our a the million million dividend, on is in Given yield. free Combined share for our half of flow or outlook for repurchased are XXXX outlook the half should base cash a of second X.X% half year, strong the to in capital strong year. a $XX with This of exceed returns we message first recent the second price, we our track of and shares

this Çöpler's At timetable. and the production a access acquisition. a pre-stripping that will to year began is advancing allow announcing our our strategic Çakmaktepe aligned busy quarter oxide Extension, organic and was to ore growth we It first original

team, in this we the and up our provides the project accretive announced world-class Maden Turkey, very in Also, to during For XX% exciting. operatorship acquisition which is of a Hod an project. us interest quarter, progress the highly obviously

busy Lidya complement We job on have are handover tremendous been been the who the the advancing a establishing already the been ground We've communities. our works, recruiting the sustainable including and the project the all team completing site with underway. from partner focused doing relationships key on to and team Mines, progressing stakeholders, local project which the has initial

technical Finally, subsequent and the release decision during updated for of the anticipate we report project an construction XXXX.

number from Extension have includes the that XXX,XXX that Hod platform and key the report the Çakmaktepe of our of Maden. again, These of derisking update the showcase horizon. a technical We first the value-driving reports on forms ounce also the next step long-term This production continued are of the production the in catalysts future foundation and Çöpler SSR. technical Marigold,

of as history M&A. track as operators builders explorers, proud a as mine long a prudent have We record and well value-additive

Our $XXX business than liquidity. million more in supported strong including sheet, by the is our solid in balance a total position,

our for been firmly number I'm talk X, ESG a the underpins on long and to is has ESG. success. move has value Slide company core going to and I'll focus about and

while stakeholders. responsibly our and sustainability and to ESG year, fifth of we to And prioritize the safety maximizing our efforts marking another Mining's continued published benefits April and We and business the continue the to step partners. our of annual XXth on health report, operate in this sustainably employees SSR

the operations, engagement as formal XXXX, leadership from initiative drive the been performance in with has in and to focused In a which field across met and we reinvigorated opportunity, our improve an enthusiasm improvement teams. safety

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

our each ensure water that assets local finally, and closure progressing plans mine plans of a our to on enlisting progressing are integrated We efforts communities. we our positive for management for leave legacy

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

on Slide So X. to moving number

ounces I near-term over maintaining decade. project, adding platform development supported highest growth we projects the the the a profile. by of platform the one at least mentioned, to established a stable pathway That world was the Hod of have of As further production of return in Maden remainder acquisition our the XXX,XXX to

advance continue Marigold, the Çöpler and and reports updated technical to for ahead Maden. of technical We Hod drilling work

in as Additionally, well each asset's lives of be production to life for efforts future continuously profile and with goal mine the full exploration growth. long-term into reserves extending each one of plans, refresh highlighting providing Puna We building of a as mine these updated assets. convert those opportunities at of intend

are position our high low the to intensity, By return continue as a operator position a strong on with to free cash flow We generation. build capital production this growth, demonstrated to organic profile in slide. delivering a demonstrating commitment on and good aim consistent existing we

to Maden. little and on Hod a bit Slide about just X, Moving talk to

XX% Maden we Mining announced to and As transaction provided that and Türkiye. the operatorship in in closed project SSR in the quarter, mentioned Northeastern world-class I interest a up second a Hod

our ounce. an over portfolio at perfectly XX less equivalent $XXX per mine gold sustaining grams best-in-class complement co-product grades ton with of life of of all-in cost average an Maden Hod than

of record activities project the preparation country We speak. at have a site the we as track and advancing success in are proven

production a work, additional at and decision. by evaluating design we arrange plans developed while for optimizing partner the working hard are construction also are teams our project opportunities. are technical year, total execution the million This $XX Our upside of and financing to spending

our decision expect technical construction for Next report we an inform for year, Board. issue will which project, the to updated the

in as acquisition more upfront transaction than XX% Overall, structured attributable help cash partners that the forward rate all-in transaction is in limited a $X,XXX than or a base of case annually we Lidya using in production. outlay, is continue cost, expect material preserve new on journey. positive look will million updating better partnership and shareholders was progress Mines cash you the project in capital the quarter flow for our return $XX we our the Hod excess by our with generate first free $XXX free our along This gold The expected to and the internal time our ounce it flow price. a existing to Horizon, we and for business, million per Maden of

moving X. Slide So on to just

our project with value can and Maden Çöpler done Hod because, plant to project, team confident the in ability to on something The project Hod We the same see, transaction is shareholder deliver have before. development are strategies build. it derisking we the you redeployed sulfide Maden under the delivered have and is budget project were – time further currently deployed successfully being as

that value as a shareholders. experience of continue In record to M&A we builders, track adding delivers and portfolio upside through addition clear our have to that additional value mine across further to the see

remains Our unchanged. to M&A approach

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

Slide X with over presentation number and to hand So Alison. the I'm that, over it going to to turn

Alison White

and on capital consecutive June, the reinvesting afternoon, we of end the one are to program, the Through active third for and remained strength. buyback good shareholders first second return share shareholders, and Rod, $XXX everyone. pillars I'd on and like to million have to base quarter sheet to dividend our returns balance of our track which our the strategy, focus business ensuring three our over capital in by and approximately Thanks, we allocation $XX in is year. of complemented program, returned million through

which million activity have In this company total, on minimum proud is $XXX X.X% The than last we've returned we the of something positioned the that of. yield are already is a over very based full-year years, at year. least capital we more return for had three

the way shareholders. as a and as As the return we we operational an to of catalysts such, to and positive well positive tailwinds on view buyback as horizon Rod see accretive as capital mentioned, value-additive number

we next program, us million additional repurchase month renewed enabling over to up an of During quarter, XX XX.X months. buyback also the last the our shares share to the

and Slide that look X turn will a our provide results. let's take review of to a second quarter, the so at

profile. quarter Sales quarter XXX,XXX ounces a of our in of third ounces. gold first production of ship gold the Puna. the second production June line a a The Second in quarter. closure sold in XXX,XXX vessel of during production of X,XXX equivalent half where the the were timing equivalent markets gold port the ounces but a half-weighted approximately produced, the by our second Turkish not quarter were are for banks ounces late equivalent XXX,XXX driven were expectations and and with concentrates holiday differences a in arrival sold and for week was and at for These we metal last ounces

with sustaining capital four into an our guidance placed sustaining in trucks Marigold. profile, and at All-in is service line first high, we expectations $X,XXX slightly a but costs half-weighted reflects of new of ounce where haul

sustaining and year. due road ice at Seabee that supports always The also made that for the to is for of all-in high capital at entire the Our transport location decreased first on and unsold also half operations purchases improved have would cost X,XXX which our all-in ounces costs. was sustaining calculation in denominator the sold sustaining impacted Çöpler the the ounces by inventory for at overall Puna,

adjusted was Earnings after net non-controlling $XX net considering million. were share. both benefits the $XX per Deferred and $X.XX during attributable quarter Attributable tax million diluted income were approximately income at about per share net the interest.

of the liabilities that more base our benefit to interest and This year, acquisition tax then in subject increased of Hod Kartaltepe has net is of liabilities after late occurred total consideration currency increase the million. non-controlling the this than year by With thus in the driving XXXX, reductions. value devaluation far $XXX Maden last deferred

before cash positive delivered capital working or $XX million we quarter, the flow million adjustments. $XX of free In

the decline of the with in cash the the flow pace driving remains production free third Over sustaining year. fourth the evenly a XXXX, remainder the between the relatively quarters, on improved capital and split spend rest throughout of of our

respect for cost consolidated diesel a we labor With we pricing headwind. power prices Overall, remain track guidance. and cost inflation, however, do and in that portfolio, an consumable capital to pressures and on improvement seen the full-year our remain have but note across

in to XXXX. On increase July a XX% X% January to XX, XX% announced the rate retroactive corporate that tax is [Sircaii] X, from

evaluate will we working expense While we the are increase. X% the financial deferred change, of when to impact increase QX the during tax still record

offset material For as resulting additional one the expense do in we in cash short-term, to credits not to of change existing use. the quarter second are to anticipate a in benefits, in that incentive as had XX%. the the taxes, such rate devaluation tax result expected currently change country a additional we due will Any from continue the

to Now Mining's turning about Slide XX, financial talk position. can SSR we

of strengths balance Our sheet pillar strategy. of another key and remains allocation our capital our a

stands quarter. at returns, Our the of cash paid that delivery more financial than will further also currently Hod than million, as position was and upfront transaction, reflecting flow $XXX liquidity capital free positive $XXX part end currently expect in $XXX cash million more Maden reinforce peer-leading is the our which our paid during XXXX million, into a we consideration of position. the Total continued and of

sheet in dividend environment, a of of commitments, and committed in fully a even the balance the are capital the gold weather We downturn commodity to price requirements payments maintaining funded potential our in base are price. volatility servicing robust event debt all ensuring to

the a is gold share dividend an reserve payable of to our ounce such, quarterly $X,XXX As $X.XX base price.

more million internal continue Çakmaktepe Extension, high reinvest Çöpler third will we allocation Maden the exceptionally this pillar growth, in to projects is spend capital strategy well exploration across our Our in $XX including the have as that dedicated we expansion exciting the return Hod programs and to portfolio that year. of key as than

its recently repurchase We XXXX. capacity buyback June buyback will our expiration approach before up of shares share on XX.X have in dynamic program and announced additional the in to to remain our to million

improvement into financial Our in strong we a further year-end. company and position, expect remains

call Operations to Executive and operations. to Sustainability, over now review turn I'll Bill, And of Vice the President the our

William MacNevin

Thanks, joining efficiency improvement of Alison. each skill the at core Already, impressive throughout hard operations. my of you the appreciative have with a time SSR It's my of to has diversity talent focused the today. beginning company and I've come all work respect to have the our that first majority very I'm today Mining of Since on and on at I've conference pleasure the been call of where SSR four year, stands Mining. spent we and here the it brought company. operational the be with

we prioritize same At practices the continue for as operating time, areas forward. define going update and to our see we these and will improvement, I

into each safety. with getting Before start day thing people individual I brief important and to want the about Most every is assets, home safe. dive a discussion I our we do

As SSR this has a always value, core a focus. been

leadership people. and safe our and integral Now engagement improving is simple Whilst work is as our production it improving results delivery safety, this to implementing is the field, driving an success. increased are we of enable quality long-term in tools approach to the also

to So maintenance ounces X,XXX the sulfide nearly completed strong per the the throughput The is optimization at QX delivered Çöpler. be is month. ounce. delivered tons on now underway production on track autoclave plant continued production, averaging XX,XXX The per this The of planned mine currently of showcasing an day, quarter asset. AISC X,XXX this another of of

continue the at impact in the second to autoclave production maintenance capacity period, As the usual, third quarter. higher operate limiting the to we during

which as Çakmaktepe work We're also production programs significantly work Work advancing in assay including report a awaiting quarter report in means this to Çöpler ownership date targets late year. support first district, updated including continues has built this XXXX technical the at on the key Other gold of update, where expanded across in in published on year. publish now Çöpler was XX,XXX advanced With the rather in extension of to regional of first will Exploration XX,XXX than quarter XX% where QX our ounces scheduled, XXXX. are in the report. technical results be we quarter position and work work expected the pre-stripping is to we this fourth to to of initiated continue TRS production XXXX. first the from second we

full district will near a that long-term have and we opportunities of across to growth advance. We suite continue the

in normal stacking trend Slide the reflected Sustaining Now on Marigold quarter, spend in per produced waste stripping return purchases Marigold activities. full-year on of support quarter, was guidance. and in leach durable for planned track the capital now truck for XX. operation. the the with second the in XXXX that to fourth as the cycles AISC planned $X,XXX ounces downwards will quarters, profile typical on remains line ounce an to the with continues third production XX,XXX line at haul new more with significantly in second to mine

also life to work longer-term into at of Marigold. capture Trenton updated the is plan to of at Buffalo evaluate technical southern pathways advancing We're Millennium, New includes incorporating for resource This ahead Marigold, and of for the targets more at potential end production Marigold aim where an Work two Valley of we upside. updated mine than models years the property. particular underway drilling, in Canyon

of stopes from overcome below mine getting the Seabee. was XX, the Now production shortfall moving expectations mining on second the Positively sequence month maintenance mine for Slide quarter positioning quarter as on half. in on grade original to access head of much grades half. resulting worked open below up high-grade X,XXX the mine July, the second to Seabee under just ounces, stoping plan plan remain increased Accordingly, second our a to in their stronger first to the outage. and unplanned Seabee's operation produced the focused the

on spend cost the to completion we expect the quarter. half improved mine second second given the addition of the In in road to improve performance, in winter

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

of is track Puna its ounces strong quarter on well full-year Puna Puna. Slide guidance, per moving [indiscernible] X.X And at on million of production delivered with and AISC XX, ounce. for $XX.XX second to quarter, life the in half. the to we second performance mine cost expansion predominantly in and on improving continued the focused exploration Near-mine resource efforts anticipate plan. of as reserve we aim extend another

success exploration additional near growth for Cortaderas operation. presenting returned potential also the have a longer-term Pirquitas We at target target the mill

on Moving XX. to Slide

for to Before trajectory. our my I reiterate I back want Rod, optimism and longer-term to portfolio hand

Mining. We role improve and and thrilled and grow further of very to operations portfolio in a have growth an I'm opportunities, solid helping accomplished and SSR team have a

Rodney Antal

Alison. Bill, thanks, Thanks, and Great.

position highly second expectations interest Maden heard, to XXXX. a Hod aligned you've in as half the was quarter into also move to included accretive acquisition of project. in we're of As the Generally, the up XX% the we positively second good the and

our the potential second year. the across production half While end share we keen organic showcase are and to the tracking guidance in of the growth to the half consolidated reports portfolio. also lower we We're to to the in expect first financial due significant at results operating Seabee, updated technical improvement the of results our

the number about of flow horizon improving a of cash the the remain and we catalysts free So value-enhancing in key and anticipation coming extremely with business. on quarters, in production short, the optimistic

I'm you you, the the So with back operator. for operators any to questions over going that, may to have. hand Thank call

Operator

is Thank Please CIBC. go Instructions] you, Antal. [Operator Mr. question with from ahead. Our first Cosmos Chiu

Cosmos Chiu

answered Thank have Maybe start not other factor GEOs, the to guidance lower it's that just of want think Everything confirm, is you also Bill Allison, sort lower guidance. your the why on really question end. I at that you've here, maintained assets just my target, trending Alex. on now had you've ounces now a trending Rod, Rod, my to of towards I but your you're see. said anticipated all Seabee? XXX,XXX one the already to to else first you've end. slower XXX,XXX the and kind would Is is been but you question

Rodney Antal

right, Cos. think I that's Yes,

say quarter well. you did Seabee, for we and claw remember can't I us the reasons to that's why. And the would to talked I it during the on that foot. held difficult but back if for as clearly, Seabee guidance And true question, you in at the second about put the and the back us quarter, you asked be remember, maybe first If original actually underperformance probably the

So performing, look how assets actually as we and we're across fortunate. they're the quite

we're at given maintain into be performance momentum half moving production of sort Seabee able were the right in the on expect that if we'll and lower at for we're think two, meet I first that can that end. we half the in, position our guidance track to

Cosmos Chiu

Çöpler. more Great. maybe specifically And on

the You've done half. in now XXX,XXX first ounces

QX for be it in it to my work guess Or I Rod, that if XXX,XXX looks to understand there's improve of completed going to math, I color? has If in? be maintenance in throughput. how you QX second also Çakmaktepe to XXX,XXX help but ounces higher targeting half question bit correctly, improve well. is well, combination is, I you've QX? it as work out, needs it the as QX just You're year. Is like it sounds have the me a is you said give still Could QX going like better than and out production, be QX me XX% to a of of coming some it you QX. to Can is more the

Rodney Antal

got As to I'm I'm this questions going to some room deflect to I deflect now, to one can going – Bill. since these of the in team. Bill the and we've

Cosmos Chiu

Thank you.

William MacNevin

the Yes. question. Appreciate

drivers several QX the into hubs heading throughput on done have autoclave with We QX. some and the then work into We've rate.

– been there. improving there's we've So

that end half stacking oxide the we material impacted year The other up – the actually thing the as performance planned that was much of first as we for. didn't our

in stacked, improving got we've that the very work Moving terms as and operating going in of material And have plans that autoclave. well. increase to time be the help some forward, will also, we've on got good

come oxidization also that's than going talk to to about we the on it's a do maintenance time circuit. some we've month, changes done, this going with So what there's traditionally I been and be that with finished less in in maintenance

several there. So things

it. focused an very deliver on increase, against So working it but we're is to

Cosmos Chiu

your From know Great. oxides And this the bit other heard Turkey companies, QX. that a different? related. heavy I of is stacking of Çöpler was was we've there why don't Turkey rainfall Is impacted parts of in in is or if and part

William MacNevin

heavily weather weren't the by impacted we – didn't in We QX.

material the and right Our time. the oxide was purely stack having about blending at right

wasn't us. impact for weather So an

Cosmos Chiu

solid solid Got Same bit. expected. question a quarter, it. Marigold, QX Maybe as switching on gears little

half, you increase last first more cycle You've done of sounds XXX,XXX But the stocking out maybe, a again, coming you're in XXX,XXX targeting like fines into that Is what's QX normalized QX? QX? XXX,XXX. bit the to again, the driving in you rate? Once now and the stacked color saw slightly again anticipating? year. that it ounces you've over, in the we're us now that's without it from and the is leach increase it give QX more recovery Could that Is terms what of already some

William MacNevin

rate Stacking driver. big is the

QX us. is important to So very obviously,

we're coming towards it's us. in material through mining So getting the

fines we're you challenged As were that had a that with the with virtually return through we area we that. through to say work needed we've relative normalized, positive that We're – material.

of it's about the now release the So ore and just stacking really timing rate. the

Cosmos Chiu

be? of the what maybe, of flow one maybe building that terms else a anticipate, might or now on that's – I year options And Rod. talked And out technical always financing kind in could report. It's then? give I've insight going a last you to I then alongside working Maden, specifically, something of you decision made, terms But between options, some meantime, Rod, said, us in and it you've next think acquisition not. question. Hod those Great. the very looking we here. should Again, again, news on some of complementary about in you're know come any

Rodney Antal

just Yes. into us the it's around is Look, to work doing project the we're have really fidelity a that decision that improving to a position project Cos, the on we put itself. go the make

doing looking we the validation some the validating work at cetera. ways own flow are sheets, on the thoughts also our et to We're around doing So improve We're infill work. flow sheet's drilling.

it building team and DD of experience news parallel to with talk Maden, be all that while the Hod it of the a pieces just to the because come in took that work next But that running approach year plant here now for as in et next confirmatory lot be is into a sulfide that to simply flow same the about to really moving work be conclusion little of about we So Çöpler plan that we'll cetera. overlay in – there positions building cetera, won't together from really some we've us. deployed we to our over our thinking et will

have and So high it when we start be, get to successful level of to a very we for confidence going of out bring ground, the it.

that's emphasis be. on. really some So what the will be going works small There will

As we that, some that over there will mentioned, sort site We've of TSF some to to lot access the is work But some on works. put tunneling be infrastructure beyond to tunneling site, itself access early-stage the a going got area. be there going on more at won't the activity. whole

So some up. cetera. in ramping drilling, et getting the teams it's place, It's

next year. So really to forward look

if financing. between project. know. But project possible best now news we partners From to terms Alison up made she's that through of trips expect was joint to by there's Hod pick to partners, busy work up the the here decision we'll now think a obviously try will you that have actual quietly you on of let a really a for financial progress any can obviously work London to we to our that get Maden try just from on to time, the at pick couple that to venture the And imagine, as and perspective, progress the flow that work moment, and as is sort I to already the coming already underway

anything of early best, months. will of or late in at couple out come that probably the It next in I expect be, probably don't here year. the So next to year

Cosmos Chiu

Understood. questions. course. Of and thanks And Rod again Thanks all for my answering team.

Rodney Antal

Cos. Thanks,

Operator

over [Operator the Instructions] Antal I'll closing turn Mr. any call remarks. for This concludes session. question-and-answer to back the

Rodney Antal

in for a again again and Bye-bye. quarter. our you thanks, us to and you, Thank in talking forward great day, and Thank Have look to Great. participating joining call. everyone, today you. another

Operator

your call. feel Please This to concludes disconnect. free conference

SSR Mining (SSRM) 2 Aug 232023 Q2 Earnings call transcript