SSR MINING INC

Çöpler Incident

On February 13, 2024, SSR Mining Inc. and its subsidiaries (collectively, “SSR Mining,” or the “Company”) suspended all operations at its Çöpler property as a result of a significant slip on the heap leach pad (the “Çöpler Incident”). The Company is not, at this time, able to estimate or predict when and under what conditions it will resume operations at Çöpler.

Description of Çöpler. The Çöpler property is comprised of the Çöpler Mine, Greater Çakmaktepe Mine, and associated processing facilities (“Çöpler”). Both Çöpler Mine and Greater Çakmaktepe Mine are open pit gold mines located along the Tethyan belt in east-central Türkiye’s Erzincan Province. Çöpler contains oxide and sulfide ores that are mined concurrently and processed through its two separate processing circuits. Gold contained in oxide ore is recovered through heap leach processing to produce gold doré with a minor by-product of copper concentrate, while gold sulfide mineralization is subjected to pressure oxidation and carbon-in-leach processing, to produce gold doré. SSR Mining owns 80% of Çöpler through a joint venture. For further information on Çöpler, including its ownership structure, see Item 2. Properties under the heading “Çöpler Property, Erzincan Province, Türkiye.”

Çöpler constitutes a single reporting segment for the Company, as do Marigold, Puna, and Seabee, each of the Company's three other mines. Çöpler has historically represented a significant portion of the Company’s production, contributing 220,999 gold equivalent ounces in 2023, which represented 31% of the Company’s total gold production in 2023. It is unknown at this time what the full impact the Çöpler Incident will be on future operating results, cash flows, and gold and other mineral production of the Company. The scope and timing of mine plans and sequencing, future production and other work at Çöpler will need to be reassessed and evaluated, including when operations will resume. For financial information of the Company’s segments for the years ended December 31, 2023, 2022 and 2021, see Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations and Note 4 to the Consolidated Financial Statements.

Each of the Company’s three other mines operate independently and are not dependent on cash flows or operational synergies associated with Çöpler. As a result, at this time, the Company does not believe the operations of the Company’s three other mines will be directly impacted by the Çöpler Incident. The Company believes that it currently has sufficient funds available for capital and operating expenditures. For additional information on the Company’s current liquidity and capital resources, see the “Liquidity and Capital Resources” discussion in Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The Çöpler Incident. At 6:30 a.m., Eastern Standard Time, on February 13, 2024, approximately one-third of the material stacked on the Çöpler oxide heap leach slipped off the pad, with the bulk of the material flowing into the Sabırlı Valley to the east and a smaller amount into the Manganese Pit to the west, which are not active mining areas and are both within the boundaries of Çöpler’s Environmental Impact Assessment. At this time, nine workers remain missing as a result of the Çöpler Incident. Search and rescue efforts began immediately following the incident and the Company is supporting the Turkish government with those efforts.

The Ministry of Environment of Türkiye has revoked the Company’s environmental permit related to Çöpler pending further progression of the investigation and remediation efforts. The Company will continue to support the authorities in Türkiye.

Immediately following the event, the Company suspended all operations at Çöpler and, at this time, we are not certain when operations will resume. Containment and remediation efforts are ongoing, which are being directed by the Turkish government and supported by the Company, with an initial focus on removing heap leach material from the Sabırlı Valley and relocating it to a permanent storage location. The overdrain system drainage pipeline in the Sabırlı Valley, where the bulk of the material flowed, was damaged and repair is underway. The sulfide processing facility(“POX plant”) adjacent to the heap leach was shut down for maintenance at the time of the incident and does not, at this time, appear to be impacted. The POX plant will remain in a stable shutdown state as the remediation efforts continue. An initial inspection did not indicate damage to the heap leach dry processing facilities, including the crushing and agglomeration equipment, or the heap leach wet processing facilities, including the solution ponds, carbon adsorption, elution, SART plant and other ancillary infrastructure. The oxide heap leach represented approximately 11.0% of total production and total revenue at Çöpler for the year ended December 31, 2023. As of December 31, 2023, the Çöpler leach pad inventory of $73.3 million represented 19% of Çöpler’s total inventory and 10% of the Company’s total inventory. As of December 31, 2023, the Çöpler mineral properties, plant and equipment (“MPP&E”) related to the leach pad of $32.1 million represented 1.0% of Çöpler’s total MPP&E and 0.8% of the Company’s total MPP&E.

The heap leach processing used at Çöpler incorporates a number of chemical properties, including sodium cyanide and other reagents. The Turkish government is conducting environmental monitoring of surface water, groundwater, soil and air quality in the region with respect to potential contamination. Public comments from the Turkish government indicate that to date, the testing results have been negative with respect to potential contamination in the locations being monitored. These results are preliminary and additional testing will be conducted in the surrounding area. The Company is in the process of assessing the impact of environmental regulations resulting from the Çöpler Incident, including whether it may become subject to any civil or criminal sanction or monetary penalties as a result of actual or perceived violation of environmental regulations.

Regulatory officials of Türkiye have begun an investigation of the causes of the Çöpler Incident. The regulatory authorities have requested documents and begun interviews of personnel. In connection with the investigation, the regulatory authorities have charged six employees with criminal charges directly related to actions on the day of the Çöpler Incident. SSR Mining is providing its full cooperation to the legal and regulatory officials in connection with the investigation.

At this time, the Board of Directors of the Company has suspended its dividend and automatic share purchase plan (“ASPP”). The Company has delivered notice to its designated broker to terminate its automatic share purchase plan effective March 1, 2024 and the Company has ceased all share repurchases under its normal course issuer bids approved by the Toronto Stock Exchange or otherwise. The Company does not know at this time when it may resume dividends or share repurchases. The Board’s Technical, Safety and Sustainability Committee (the “TSS Committee”) is leading the Board’s review and oversight of the Company’s response to the Çöpler Incident, with support from all Directors.

See “Item 1A. Risk Factors” for additional information.

Full Year 2023 Summary Results (reflects no impact of the Çöpler Incident):

•Strong Fourth Quarter Operating Results; Record full-year production at Marigold and Puna: The Company delivered fourth quarter 2023 production of 211,226 gold equivalent ounces at cost of sales of $1,064 per gold equivalent ounce and AISC of $1,326 per gold equivalent ounce. For the full year 2023, SSR Mining reported production of 706,894 gold equivalent ounces at cost of sales of $1,141 per gold equivalent ounce and AISC of $1,461 per gold equivalent ounce. Full-year production included two records: 278,488 gold ounces at Marigold, a record high in its more than 30-year operating life, and 9,688,447 ounces silver from Puna, a record over its more than 15-year operating life. Production increased approximately 13% year-over-year and met the Company’s 2023 guidance range.

•Financial results: Attributable net income in the fourth quarter of 2023 was $(217.8) million, or $(1.07) per diluted share, inclusive of impairment charges of $408.8 million primarily resulting from impairment of long-lived and other assets at Çöpler and impairment of goodwill at Seabee. Adjusted attributable net income was $127.1 million, or $0.59 per diluted share. In the fourth quarter of 2023, operating cash flow was $203.2 million and free cash flow was $144.4 million. For the year ended December 31, 2023, attributable net income was $(98.0) million, or $(0.48) per diluted share, inclusive of impairment charges of $411.4 million primarily resulting from impairment of long-lived and other assets at Çöpler due to a change in mineral resource inventory identified in the Çöpler Technical Report Summary report and impairment of goodwill at Seabee. Adjusted attributable net income was $276.5 million, or $1.29 per diluted share. For the year ended December 31, 2023, operating cash flow was $421.7 million and free cash flow was $198.3 million.

•Balance sheet: At the end of 2023, SSR Mining had a cash and cash equivalent balance of $492.4 million reflecting $114.0 million of capital returns, $71.2 million in scheduled debt repayments, and $119.9 million for strategic M&A transactions, including the previously announced Hod Maden gold-copper development project

(“Hod Maden”). Capital returns were composed of $57.7 million in quarterly cash dividend payments and $56.3 million in share repurchases. On August 15, 2023, the Company announced that its existing revolving credit facility was increased from $200.0 million to $400.0 million, with an additional accordion feature of $100.0 million.

•Successfully executed strategic M&A transactions, including reinvesting proceeds from non-core asset sales into high return, low capital intensity growth projects: In the second quarter of 2023, the Company announced that it has acquired a 10% interest, which may be increased to 40%, and immediate operational control of the Hod Maden project in northeastern Türkiye. Aggregate acquisition consideration was $270.0 million, which includes $120.0 million in an upfront cash payment to acquire a 10% interest in Hod Maden, followed by $150.0 million in earn-in structured milestone payments to acquire an additional 30% interest, payable between the start of construction and the first anniversary of commercial production. In the fourth quarter of 2023, the Company also entered into definitive agreements to sell its Sunrise Lake Property in exchange for a 4.0% net smelter return (“NSR”) royalty on the property as well as a definitive agreement to sell its San Luis Project in exchange for total consideration of up to $42.5 million and a 4% NSR royalty on the project. As a result of the Çöpler Incident, we may be prevented from completing or participating in the development of Hod Maden. See "Item 1A. Risk Factors" for more information.

•Technical Report Summaries published for all producing assets: On February 13, 2024, the Company released Technical Report Summaries (“TRS”) for Marigold, Seabee and Puna. These reports include revised operating and economic assumptions for each asset and provide a base case for further growth and optimization to support the Company’s long-term guidance. Please note that the Company also released a TRS for Çöpler at the same time. The TRS for Çöpler had an effective date of October 31, 2023 and as such does not reflect the impact of the Çöpler Incident. The operating and economic assumptions, along with the mineral reserve, mineral resources, cost estimates and other findings contained in such TRS, may no longer be accurate and, when more information is available regarding the operations at Çöpler, the TRS may need to be amended.

(1)The Company reports non-GAAP financial measures including adjusted attributable net income, adjusted attributable net income per share, cash generated by operating activities before working capital adjustments, free cash flow, free cash flow before changes in working capital, total cash, cash costs and AISC per ounce sold (a common measure in the mining industry), to manage and evaluate its operating performance at its mines. For explanations of these measures and reconciliations to the most comparable financial measure calculated under U.S. GAAP, see the discussion under“Non-GAAP Financial Measures” in Part II, Item 7. Management’s Discussion and Analysis herein.