SSR MINING INC

A summary of the Company’s consolidated financial and operating results for the years ended December 31, are presented below (in thousands):

(2)The Company reports non-GAAP financial measures including adjusted attributable net income, adjusted basic attributable net income per share, cash costs and AISC per ounce sold to manage and evaluate its operating performance at its mines. See “Non-GAAP Financial Measures” for an explanation of these financial measures and a reconciliation of these financial measures to net income and cost of sales, which are the comparable GAAP financial measures.

(3)Data for lead production and sales relate only to lead in lead concentrate. Data for zinc production and sales relate only to zinc in zinc concentrate.

(4)Gold equivalent ounces are calculated using the silver ounces produced or sold multiplied by the ratio of the silver price to the gold price, using the average London Bullion Market Association (“LBMA”) prices for the period. The Company does not include copper, lead, or zinc as they are considered by-products.

Revenue

For the year ended December 31, 2023, revenue increased by $278.9 million, or 24.3%, to $1,426.9 million as compared to $1,148.0 million for the year ended December 31, 2022. The increase was mainly due to a 12.1% increase in gold ounces sold at a 7.6% increase in average realized gold price and a 26.1% increase in silver ounces sold at a 17.2% increase in average realized silver price. The increase in gold ounces sold was primarily related to improved leach recoveries at Marigold and the full year of operations in 2023 compared to the impact of the temporary suspension of operations at Çöpler that occurred during the three months ended September 30, 2022, and was partially offset by lower grade ore milled at Seabee. For a complete discussion of revenue, refer to the Results of Operations below.

The Çöpler oxide heap leach operations represented approximately 3.5% of total production and total revenue of the Company for the year ended December 31, 2023.

Cost of sales

Cost of sales increased by $196.2 million, or 32.3%, to $804.1 million for the year ended December 31, 2023, as compared to $607.9 million for the year ended December 31, 2022. The increase was primarily due to a 12.1% increase in the number of gold ounces sold, higher operating costs and inflationary pressure on costs during the year ended December 31, 2023, compared to the same period in 2022. For a complete discussion of costs of sales by site, refer to the Results of Operations below.

Depreciation, depletion and amortization

Depreciation, depletion, and amortization (“DD&A”) expense increased by $32.6 million, or 17.9%, to $214.0 million for the year ended December 31, 2023 as compared to $181.4 million for the year ended December 31, 2022, primarily due to a 14.2% increase in the amount of gold equivalent ounces sold.

General and administrative expense

General and administrative expense for the year ended December 31, 2023 was $67.5 million as compared to $71.7 million for the year ended December 31, 2022, a decrease of $4.2 million primarily due to lower employee compensation expenses.

Exploration, evaluation and reclamation costs

Exploration, evaluation, and reclamation costs increased by $6.1 million to $58.9 million for the year ended December 31, 2023 as compared to $52.8 million for the year ended December 31, 2022. The increase was primarily due to $3.0 million in exploration expense and a $2.7 million increase in reclamation accretion expense compared to the same period in 2022.

Impairment charges

Impairment charges for the year ended December 31, 2023 were $411.4 million. The impairment charges were primarily due to non-cash impairment charges of $349.2 million at Çöpler, which are unrelated to the Çöpler Incident, $49.8 million goodwill impairment at Seabee, and $9.8 million non-cash write-offs of capitalized cloud computing arrangement implementation costs. Refer to Note 7 to the Consolidated Financial Statements for further details.

Other operating expenses, net

Other operating expenses, net for the year ended December 31, 2023 were $1.3 million as compared to $2.1 million for the year ended December 31, 2022. The expenses incurred in 2023 relate to a $1.0 million loss on the sale of the Sunrise Lake project and a $0.3 million loss on the sale of the Company’s assets in Mexico, offset by a $1.0 million gain on the sale of the Candelaria property. The expenses incurred during 2022 were transaction costs related to the sale of the Pitarrilla project and SEC conversion costs.

Other income (expense)

Other income for the year ended December 31, 2023 was $50.2 million as compared to income of $20.3 million for the year ended December 31, 2022, an increase of $29.9 million. The change is primarily due to an increase in the gain on sale of investments and marketable securities of $11.8 million, an increase in interest income of $6.3 million during 2023 due to higher interest rates, and an increase in the change of the fair value of marketable securities of $3.6 million.

Foreign exchange gain (loss)

Foreign exchange loss for the year ended December 31, 2023 was $105.7 million compared to a loss of $32.5 million for the year ended December 31, 2022. During the year ended December 31, 2023, the foreign exchange losswas primarily due to a weakening of the ARS against the USD and its impact on ARS-denominated assets at Puna. During the fourth quarter of 2023, the Argentine government implemented measures to address the current economic situation including increasing the ARS exchange rate by more than 50.0% following the presidential elections and permitting the conversion of a portion of export proceeds at the market rate. The ARS exchange rate devaluation of 50.0% resulted in a foreign exchange loss of approximately $64.4 million in the fourth quarter of December 31, 2023. Additionally, the Company utilized blue chip swaps to convert a portion of the ARS to USD and to manage currency risk.

Income and mining tax benefit (expense)

Income and mining tax benefit for the year ended December 31, 2023 was $82.5 million as compared to an expense of $30.1 million for the year ended December 31, 2022. The decrease in tax expense was primarily as a result of the deferred tax effects related to impaired mineral properties and the devaluation of TRY relative to the USD.

On December 20, 2023, Pillar Two minimum tax legislation was enacted in Luxembourg, a jurisdiction in which the Company operates. The legislation will be effective for the Company’s financial year beginning January 1, 2024. Furthermore, Canada has Pillar Two legislation in draft form that, if enacted, would take retroactive effect from January 1, 2024. Pillar Two is a global corporate tax framework developed by the Organization for Economic Cooperation and Development (“OECD”) aimed at establishing a minimum tax floor of 15% on multinational corporate profits.

The Company is currently assessing the potential exposure arising from Pillar Two legislation. Under the enacted legislation, there is potential exposure to Pillar Two tax on profits earned in Türkiye, where the Pillar Two effective tax rate could be lower than 15%. However, exposure may also exist in other jurisdictions if legislation is enacted at the ultimate parent level in Canada. The Company continues to progress on its assessment of Pillar Two exposures and expects to complete its initial assessment in the first of half of financial year 2024.