SSR MINING INC
For the period ended Jun 30, 2024. Filed Jul 31, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Jul 31, 2024
SSRM$28.38+1.6%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-08.
0000921638-24-000115
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSBusiness OverviewConsolidated Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-07-31.
0000921638-24-000145
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONSBusiness OverviewConsolidated Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 37 previous paragraphs and 47 current paragraphs.
21 unchanged; 12 reworded; 8 added; 4 removed; 0 previous and 6 current paragraphs rearranged.
Tables are not compared: 2 previous and 2 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (8)
Current report
DD&A expense decreased by $30.3 million, or 33.1%, to $61.4 million for the six months ended June 30, 2024, as compared to $91.7 million for the six months ended June 30, 2023, primarily due to fewer gold equivalent ounces sold.
Current report
Exploration and evaluation costs for the three months ended June 30, 2024 were $11.3 million compared to $14.0 million for three months ended June 30, 2023. Exploration and evaluation costs were lower due to decreased land and permit costs, partially offset by higher materials costs. Exploration and evaluation costs were primarily related to surface exploration at Seabee and the Sterling project at Marigold.
Current report
Exploration and evaluation costs for the six months ended June 30, 2024 were $21.5 million compared to $24.5 million for six months ended June 30, 2023. Exploration and evaluation costs were lower due to decreased land and permit costs, partially offset by higher materials costs. Exploration and evaluation costs were primarily related to surface exploration at Seabee and the Sterling project at Marigold.
Current report
Other operating expense (income), net
Current report
Other operating expense (income), net for the three months ended June 30, 2024 was $(3.1) million as compared to $0.4 million for the three months ended June 30, 2023. The change is mainly due to a $6.7 million gain on the divestiture of San Luis offset by $2.4 million of contingencies and expenses related to the Çöpler incident.
Current report
Other operating expense (income), net for the six months ended June 30, 2024 was $12.2 million as compared to $0.4 million for the six months ended June 30, 2023. The change is due to $17.7 million of contingencies and expenses related to the Çöpler incident partially offset by a $5.6 million gain on the divestiture of San Luis.
Current report
Interest expense for the three months ended June 30, 2024 was $2.1 million as compared to $5.0 million for the three months ended June 30, 2023. Interest expense for the six months ended June 30, 2024 was $6.8 million as compared to $10.0 million for the six months ended June 30, 2023.The decreases were primarily due to lower debt balances outstanding during 2024.
Current report
Income and mining tax benefit for the six months ended June 30, 2024 was $8.5 million as compared to a benefit of $80.6 million for the six months ended June 30, 2023. The decrease in income tax benefit was primarily a result of foreign currency fluctuations and changes in the valuation allowance.
Removed paragraphs (4)
Previous report
Exploration and evaluation costs for the three months ended March 31, 2024 were $10.2 million compared to $10.5 million for three months ended March 31, 2023. Evaluation and exploration costs were consistent year over year.
Previous report
Other operating expense, net for for the three months ended March 31, 2024 was $15.3 million as compared to ($0.2 million) for the three months ended March 31, 2023. The change is mainly due to estimated contingencies which were accrued during 2024 as a result of the Çöpler Incident.
Previous report
Interest expense for the three months ended March 31, 2024 was $4.7 million as compared to $5.1 million for the three months ended March 31, 2023. Interest expense was consistent period over period.
Reworded paragraphs (12)
Previous wording
Refer to the “Çöpler Incident and First Quarter 2024 Summary”, “Consolidation Results of Operations”, “Results of Operations”, “Liquidity and Capital Resources” and “Non-GAAP Financial Measures” for quarterly information for the three months ended March 31, 2024.
Current wording
Refer to the “Çöpler Incident and Second Quarter 2024 Summary”, “Consolidation Results of Operations”, “Results of Operations”, “Liquidity and Capital Resources” and “Non-GAAP Financial Measures” for information for the three and six months ended June 30, 2024.
Previous wording
A summary of the Company's consolidated financial and operating results for the three months ended months ended March 31, 2024 and 2023 are presented below (in thousands):
Current wording
A summary of the Company's consolidated financial and operating results for the three and six months ended June 30, 2024 and 2023 are presented below (in thousands):
Previous wording
For the three months ended March 31, 2024, revenue decreased by $84.4 million, or 26.8%, to $230.2 million, as compared to $314.6 million for the three months ended March 31, 2023. The decrease was mainly due to 29.2% fewer ounces of gold sold at an 8.4% higher average realized gold price and 30.4% fewer ounces of silver sold. The decrease in gold ounces sold was primarily related to the suspension of operations at Çöpler following the Çöpler Incident. For a complete discussion of revenue, refer to the Results of Operations below.
Current wording
For the three months ended June 30, 2024, revenue decreased by $116.2 million, or 38.6%, to $184.8 million, as compared to $301.0 million for the three months ended June 30, 2023. The decrease was mainly due to 67.6% fewer ounces of gold sold at a 21.1% higher average realized gold price and 34.0% more ounces of silver sold. The decrease in gold ounces sold was primarily related to the suspension of operations at Çöpler following the Çöpler Incident. For a complete discussion of revenue, refer to the Results of Operations below.
Previous wording
Cost of sales decreased by $73.4 million, or 36.8%, to $125.9 million for the three months ended March 31, 2024, as compared to $199.3 million for the three months ended March 31, 2023. This decrease was mainly due to 29.2% fewer ounces of gold sold compared to the same period in 2023 primarily related to the suspension of operations at Çöpler following the Çöpler Incident. For a complete discussion of costs of sales by site, refer to the Results of Operations below.
Current wording
Cost of sales decreased by $74.1 million, or 43.4%, to $96.6 million for the three months ended June 30, 2024, as compared to $170.6 million for the three months ended June 30, 2023. This decrease was mainly due to 67.6% fewer ounces of gold sold compared to the same period in 2023 primarily related to the suspension of operations at Çöpler following the Çöpler Incident. For a complete discussion of cost of sales by site, refer to the Results of Operations below.
Previous wording
Depreciation, depletion, and amortization (“DD&A”) expense decreased by $8.7 million, or 18.5%, to $38.4 million for the three months ended March 31, 2024, as compared to $47.1 million for the three months ended March 31, 2023, primarily due to fewer gold equivalent ounces sold.
Current wording
Depreciation, depletion, and amortization (“DD&A”) expense decreased by $21.6 million, or 48.5%, to $23.0 million for the three months ended June 30, 2024, as compared to $44.6 million for the three months ended June 30, 2023, primarily due to fewer gold equivalent ounces sold.
Previous wording
General and administrative expense for the three months ended March 31, 2024 was $12.9 million as compared to $18.5 million for the three months ended March 31, 2023. General and administrative expenses decreased mainly due to lower stock-based compensation expense which was a result of lower share price in 2024.
Current wording
General and administrative expense for the six months ended June 30, 2024 was $26.3 million as compared to $34.8 million for the six months ended June 30, 2023. General and administrative expenses decreased mainly due to lower stock-based compensation expense, which was a result of lower share price in 2024, and lower consulting and professional fees.
Previous wording
Reclamation and remediation costs for the three months ended March 31, 2024 was $275.3 million as compared to $2.2 million for the three months ended March 31, 2023. Reclamation and remediation costs increased by $273.1 million mainly due to $22.5 million of remediation costs incurred during the first quarter of 2024 in connection with the Çöpler Incident, as well as accrued remediation and reclamation liabilities of approximately $250.0 million related to estimated future Çöpler remediation and leach pad closures costs.
Current wording
Reclamation and remediation costs for the six months ended June 30, 2024 were $277.7 million as compared to $4.3 million for the six months ended June 30, 2023. Reclamation and remediation costs increased by $273.4 million mainly due to reclamation and remediation costs related to the Çöpler Incident.
Previous wording
Care and maintenance costs for the three months ended March 31, 2024 was $14.4 million. Care and maintenance expense incurred during the first quarter of 2024 represents direct costs not associated with environmental reclamation and remediation costs of $7.7 million and depreciation of $6.7 million during the suspension of operations at Çöpler.
Current wording
Care and maintenance costs for the three months ended June 30, 2024 were $30.6 million. Care and maintenance expense incurred during the second quarter of 2024 represents direct costs not associated with environmental reclamation and remediation costs of $17.3 million and depreciation of $13.3 million during the suspension of operations at Çöpler.
Previous wording
Impairment charges for the three months ended March 31, 2024 were $114.2 million. The impairment charges were mainly due to non-cash impairment charges of heap leach pad inventory and related heap leach facilities due to the Çöpler Incident.
Current wording
Impairment charges for the six months ended June 30, 2024 were $114.2 million. The impairment charges were due to non-cash impairment charges of heap leach pad inventory and related heap leach facilities due to the Çöpler Incident.
Previous wording
Other income (expense) for the three months ended March 31, 2024 was $3.8 million as compared to $13.1 million for the three months ended March 31, 2023. The change is mainly due to the change of the fair value of marketable securities and a decrease in interest income due to lower cash balances.
Current wording
Other income (expense) for the three months ended June 30, 2024 was $5.0 million as compared to $12.4 million for the three months ended June 30, 2023. Other income (expense) for the six months ended June 30, 2024 was $8.7 million as compared to $25.4 million for thesix months ended June 30, 2023. The changes were mainly due to the decrease in interest income as a result of lower cash balances and changes in the fair value of marketable securities.
Previous wording
Foreign exchange loss for the three months ended March 31, 2024 was $0.9 million compared to a loss of $13.2 million for the three months ended March 31, 2023. During the three months ended March 31, 2024, the foreign exchange loss was mainly due to the a weakening of the ARS against the USD and its impact on ARS-denominated assets at Puna partially. During the three months ended March 31, 2023, the foreign exchange loss was mainly due to thea weakening of the ARS against the USD and its impact on ARS-denominated assets at Punaand the weakening of the TRY against the USD and its impact on TRY-denominated assets at Çöpler.
Current wording
Foreign exchange gain for the three months ended June 30, 2024 was $0.9 million compared to a loss of $21.2 million for the three months ended June 30, 2023. During the three months ended June 30, 2024, the foreign exchange gain was mainly due to the weakening of the TRY against the USD and its impact on TRY-denominated liabilities at Çöpler, partially offset by the weakening of the ARS against the USD and its impact on ARS-denominated assets at Puna.
Previous wording
Income and mining tax benefit for the three months ended March 31, 2024 was $20.2 million as compared to a expense of $2.8 million for the three months ended March 31, 2023. The change in income tax expense was primarily as a result of foreign currency fluctuations and a decline in year-to-date operating income compared to 2023.
Current wording
Income and mining tax expense for the three months ended June 30, 2024 was $11.7 million as compared to a benefit of $83.4 million for the three months ended June 30, 2023. The change in income tax was primarily a result of foreign currency fluctuations and changes in the valuation allowance.
Rearranged current paragraphs (6)
Current report — wording carried from elsewhere
For the six months ended June 30, 2024, revenue decreased by $200.6 million, or 32.6%, to $415.1 million, as compared to $615.6 million for the six months ended June 30, 2023. The decrease was mainly due to 48.3% fewer ounces of gold sold at an 11.8% higher average realized gold price and 2.1% fewer ounces of silver sold. The decrease in gold ounces sold was primarily related to the suspension of operations at Çöpler following the Çöpler Incident. For a complete discussion of revenue, refer to the Results of Operations below.
Current report — wording carried from elsewhere
Cost of sales decreased by $147.5 million, or 39.9%, to $222.5 million for the six months ended June 30, 2024, as compared to $369.9 million for the six months ended June 30, 2023. This decrease was mainly due to 48.3% fewer ounces of gold sold compared to the same period in 2023 primarily related to the suspension of operations at Çöpler following the Çöpler Incident. For a complete discussion of cost of sales by site, refer to the Results of Operations below.
Current report — wording carried from elsewhere
General and administrative expense for the three months ended June 30, 2024 was $13.5 million as compared to $16.3 million for the three months ended June 30, 2023. General and administrative expenses decreased mainly due to lower employee compensation expense.
Current report — wording carried from elsewhere
Reclamation and remediation costs for the three months ended June 30, 2024 were $2.4 million as compared to $2.2 million for the three months ended June 30, 2023. Reclamation and remediation costs were consistent quarter over quarter.
Current report — wording carried from elsewhere
Care and maintenance costs for the six months ended June 30, 2024 were $45.0 million. Care and maintenance expense incurred during 2024 represents direct costs not associated with environmental reclamation and remediation costs of $25.0 million and depreciation of $20.0 million during the suspension of operations at Çöpler.
Current report — wording carried from elsewhere
Foreign exchange loss for the six months ended June 30, 2024 was $37.0 thousand compared to a gain of $34.4 million for the six months ended June 30, 2023. During the six months ended June 30, 2024, the foreign exchange loss was mainly due to the weakening of the ARS against the USD and its impact on ARS-denominated assets at Puna, partially offset by the weakening of the TRY against the USD and its impact on TRY-denominated liabilities at Çöpler.