SSR MINING INC
For the period ended Jun 30, 2024. Filed Jul 31, 2024.
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Jun 30, 2024 · Filed Jul 31, 2024
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Non-GAAP Financial Measures
The Company has included certain non-GAAP financial measures to assist in understanding the Company's financial results. The non-GAAP financial measures are employed by the Company to measure its operating and economic performance and to assist in decision-making, as well as to provide key performance information to senior management. The Company believes that, in addition to conventional measures prepared in accordance with GAAP, certain investors and other stakeholders will find this information useful to evaluate the Company's operating and financial performance; however, these non-GAAP performance measures do not have any standardized meaning. These performance measures are intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. These non-GAAP measures should be read in conjunction with the Company's Condensed Consolidated Financial Statements.
Non-GAAP Measure - Cash Costs and AISC
Cash Costs and All-In Sustaining Costs (“AISC”) per payable ounce of gold and respective unit cost measures are non-U.S. GAAP metrics developed by the World Gold Council to provide transparency into the costs associated with producing gold and provide a standard for comparison across the industry. The World Gold Council is a market development organization for the gold industry.
The Company uses cash costs per ounce of precious metals sold to monitor its operating performance internally. The most directly comparable measure prepared in accordance with GAAP is Cost of sales. The Company believes this measure provides investors and analysts with useful information about its underlying cash costs of operations and the impact of by-product credits on its cost structure. The Company also believes it is a relevant metric used to understand its operating profitability. When deriving the cost of sales associated with an ounce of precious metal, the Company includes by-product credits, which allows management and other stakeholders to assess the net costs of gold and silver production.
AISC includes total Cost of sales incurred at the Company’s mining operations, which forms the basis of cash costs. Additionally, the Company includes sustaining capital expenditures, sustaining mine-site exploration and evaluation costs, reclamation cost accretion and amortization, and general and administrative expenses. This measure seeks to reflect the ongoing cost of gold and silver production from current operations; therefore, growth capital is excluded. The Company determines sustaining capital to be capital expenditures that are necessary to maintain current production and execute the current mine plan. The Company determines growth capital to be those payments used to develop new operations or related to projects at existing operations where those projects will materially benefit the operation.
The Company believes that AISC provides additional information to management and stakeholders that provides visibility to better define the total costs associated with production and better understanding of the economics of the Company's operations and performance compared to other producers.
In deriving the number of ounces of precious metal sold, the Company considers the physical ounces available for sale after the treatment and refining process, commonly referred to as payable metal, as this is what is sold to third parties.
The following tables provide a reconciliation of cost of sales to cash costs and AISC:
| (in thousands, unless otherwise noted) | Çöpler | Marigold | Seabee | Puna | Corporate | Total |
|---|---|---|---|---|---|---|
| Cost of sales (GAAP) (1) | $— | $39,237 | $17,275 | $40,070 | $— | $96,582 |
| By-product credits | — | (61) | (14) | (13,783) | — | (13,858) |
| Treatment and refining charges | — | 74 | 45 | 2,038 | — | 2,157 |
| Cash costs (non-GAAP) | — | 39,250 | 17,306 | 28,325 | — | 84,881 |
| Sustaining capital expenditures | 4,602 | 12,432 | 6,201 | 3,550 | — | 26,785 |
| Sustaining exploration and evaluation expense | — | 274 | — | — | — | 274 |
| Care and maintenance (2) | 17,283 | — | — | — | — | 17,283 |
| Reclamation cost accretion and amortization | 493 | 605 | 922 | 5,926 | — | 7,946 |
| General and administrative expense and stock-based compensation expense | — | — | — | — | 13,452 | 13,452 |
| Total AISC (non-GAAP) | $22,378 | $52,561 | $24,429 | $37,801 | $13,452 | $150,621 |
| Gold sold (oz) | — | 25,450 | 15,020 | — | — | 40,470 |
| Silver sold (oz) | — | — | — | 2,489,064 | — | 2,489,064 |
| Gold equivalent sold (oz) (3)(4) | — | 25,450 | 15,020 | 30,720 | — | 71,190 |
| Cost of sales per gold equivalent ounce sold (1)(3)(4) | N/A | $1,542 | $1,150 | $1,304 | N/A | $1,357 |
| Cash cost per gold ounce sold | N/A | $1,542 | $1,152 | N/A | N/A | N/A |
| Cash cost per silver ounce sold | N/A | N/A | N/A | $11.38 | N/A | N/A |
| Cash cost per gold equivalent ounce sold (3)(4) | N/A | $1,542 | $1,152 | $922 | N/A | $1,192 |
| AISC per gold ounce sold | N/A | $2,065 | $1,626 | N/A | N/A | N/A |
| AISC per silver ounce sold | N/A | N/A | N/A | $15.19 | N/A | N/A |
| AISC per gold equivalent ounce sold (3)(4) | N/A | $2,065 | $1,626 | $1,231 | N/A | $2,116 |
(2)Care and maintenance expense only includes direct costs not associated with environmental reclamation and remediation costs, as depreciation is not included in the calculation of AISC.
(3)Gold equivalent ounces are calculated multiplying the silver ounces by the ratio of the silver price to the gold price, using the average LBMA prices for the period. The Company does not include by-products in the gold equivalent ounce calculations.
(4)Gold equivalent ounces sold may not re-calculate based on amounts presented in this table due to rounding.
| (in thousands, unless otherwise noted) · Çöpler · Marigold · Seabee · Puna · Corporate · Total | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of sales (GAAP) (1) | $54,949 | $63,965 | $18,272 | $33,454 | — | $170,640 | |||||||||
| By-product credits | (500) | (37) | (14) | (10,462) | — | (11,013) | |||||||||
| Treatment and refining charges | — | 276 | 19 | 3,749 | — | 4,044 | |||||||||
| Cash costs (non-GAAP) | 54,449 | 64,204 | 18,277 | 26,741 | — | 163,671 | |||||||||
| Sustaining capital expenditures | 10,511 | 31,312 | 6,872 | 2,477 | — | 51,172 | |||||||||
| Sustaining exploration and evaluation expense | 1,354 | 3,829 | — | 2,299 | — | 7,482 | |||||||||
| Reclamation cost accretion and amortization | 427 | 666 | 761 | 765 | — | 2,619 | |||||||||
| General and administrative expense and stock-based compensation expense | 1,326 | — | — | 37 | 14,899 | 16,262 | |||||||||
| Total AISC (non-GAAP) | $68,067 | $100,011 | $25,910 | $32,319 | $14,899 | $241,206 | |||||||||
| Gold sold (oz) | 49,197 | 60,389 | 15,330 | — | — | 124,916 | |||||||||
| Silver sold (oz) | 1,856,600 | — | 1,856,600 | ||||||||||||
| Gold equivalent sold (oz) (2)(3) | 49,197 | 60,389 | 15,330 | 22,789 | — | 147,705 | |||||||||
| Cost of sales per gold equivalent ounce sold (1)(2)(3) | $1,117 | $1,059 | $1,192 | $1,468 | N/A | $1,155 | |||||||||
| Cash cost per gold ounce sold | $1,107 | $1,063 | $1,192 | N/A | N/A | N/A | |||||||||
| Cash cost per silver ounce sold | N/A | N/A | N/A | $14.40 | N/A | N/A | |||||||||
| Cash cost per gold equivalent ounce sold (2)(3) | $1,107 | $1,063 | $1,192 | $1,173 | N/A | $1,108 | |||||||||
| AISC per gold ounce sold | $1,384 | $1,656 | $1,690 | N/A | N/A | N/A | |||||||||
| AISC per silver ounce sold | N/A | N/A | N/A | $17.41 | N/A | N/A | |||||||||
| AISC per gold equivalent ounce sold (2)(3) | $1,384 | $1,656 | $1,690 | $1,418 | N/A | $1,633 | |||||||||
(2)Gold equivalent ounces are calculated multiplying the silver ounces by the ratio of the silver price to the gold price, using the average LBMA prices for the period. The Company does not include by-products in the gold equivalent ounce calculations.
(3)Gold equivalent ounces sold may not re-calculate based on amounts presented in this table due to rounding.
| (in thousands, unless otherwise noted) | Çöpler | Marigold | Seabee | Puna | Corporate | Total |
|---|---|---|---|---|---|---|
| Cost of sales (GAAP)(1) | $24,423 | $88,308 | $41,708 | $68,044 | $— | $222,483 |
| By-product credits | (345) | (62) | (39) | (22,848) | — | (23,294) |
| Treatment and refining charges | 351 | 147 | 80 | 3,520 | — | 4,098 |
| Cash costs (non-GAAP) | 24,429 | 88,393 | 41,749 | 48,716 | — | 203,287 |
| Sustaining capital expenditures | 9,689 | 14,737 | 21,106 | 6,909 | — | 52,441 |
| Sustaining exploration and evaluation expense | — | 628 | — | — | — | 628 |
| Care and maintenance (2) | 24,961 | — | — | — | — | 24,961 |
| Reclamation cost accretion and amortization | 978 | 1,540 | 1,849 | 8,075 | — | 12,442 |
| General and administrative expense and stock-based compensation expense | — | — | — | — | 26,312 | 26,312 |
| Total AISC (non-GAAP) | $60,057 | $105,298 | $64,704 | $63,700 | $26,312 | $320,071 |
| Gold sold (oz) | 23,960 | 62,319 | 43,470 | — | — | 129,749 |
| Silver sold (oz) | — | — | — | 4,147,685 | — | 4,147,685 |
| Gold equivalent sold (oz) (3)(4) | 23,960 | 62,319 | 43,470 | 49,115 | — | 178,864 |
| Cost of sales per gold equivalent ounce sold(1)(3)(4) | $1,019 | $1,417 | $959 | $1,385 | N/A | $1,244 |
| Cash cost per gold ounce sold | $1,020 | $1,418 | $960 | N/A | N/A | N/A |
| Cash cost per silver ounce sold | N/A | N/A | N/A | $11.75 | N/A | N/A |
| Cash cost per gold equivalent ounce sold (3)(4) | $1,020 | $1,418 | $960 | $992 | N/A | $1,137 |
| AISC per gold ounce sold | $2,507 | $1,690 | $1,488 | N/A | N/A | N/A |
| AISC per silver ounce sold | N/A | N/A | N/A | $15.36 | N/A | N/A |
| AISC per gold equivalent ounce sold (3)(4) | $2,507 | $1,690 | $1,488 | $1,297 | N/A | $1,789 |
(2)Care and maintenance expense only includes direct costs not associated with environmental reclamation and remediation costs, as depreciation is not included in the calculation of AISC.
(3)Gold equivalent ounces are calculated multiplying the silver ounces by the ratio of the silver price to the gold price, using the average LBMA prices for the period. The Company does not include by-products in the gold equivalent ounce calculations.
(4)Gold equivalent ounces sold may not re-calculate based on amounts presented in this table due to rounding.
| (in thousands, unless otherwise noted) | Çöpler | Marigold | Seabee | Puna | Corporate | Total |
|---|---|---|---|---|---|---|
| Cost of sales (GAAP)(1) | $129,595 | $118,506 | $41,537 | $80,299 | $— | $369,937 |
| By-product credits | (1,367) | (74) | (24) | (28,476) | — | (29,941) |
| Treatment and refining charges | — | 459 | 49 | 9,247 | — | 9,755 |
| Cash costs (non-GAAP) | 128,228 | 118,891 | 41,562 | 61,070 | — | 349,751 |
| Sustaining capital expenditures | 17,214 | 64,434 | 20,007 | 5,307 | — | 106,962 |
| Sustaining exploration and evaluation expense | 2,115 | 683 | — | 3,371 | — | 6,169 |
| Reclamation cost accretion and amortization | 854 | 1,311 | 1,416 | 1,530 | — | 5,111 |
| General and administrative expense and stock-based compensation expense | 2,062 | — | — | 89 | 32,652 | 34,803 |
| Total AISC (non-GAAP) | $150,473 | $185,319 | $62,985 | $71,367 | $32,652 | $502,796 |
| Gold sold (oz) | 107,211 | 111,686 | 32,130 | — | — | 251,027 |
| Silver sold (oz) | — | — | — | 4,238,140 | — | 4,238,140 |
| Gold equivalent sold (oz) (2)(3) | 107,211 | 111,686 | 32,130 | 51,235 | — | 302,262 |
| Cost of sales per gold equivalent ounce sold(1)(2) | $1,209 | $1,061 | $1,293 | $1,567 | N/A | $1,224 |
| Cash cost per gold ounce sold | $1,196 | $1,065 | $1,294 | N/A | N/A | N/A |
| Cash cost per silver ounce sold | N/A | N/A | N/A | $14.41 | N/A | N/A |
| Cash cost per gold equivalent ounce sold (2)(3) | $1,196 | $1,065 | $1,294 | $1,192 | N/A | $1,157 |
| AISC per gold ounce sold | $1,404 | $1,659 | $1,960 | N/A | N/A | N/A |
| AISC per silver ounce sold | N/A | N/A | N/A | $16.84 | N/A | N/A |
| AISC per gold equivalent ounce sold (2)(3) | $1,404 | $1,659 | $1,960 | $1,393 | N/A | $1,663 |
(2)Gold equivalent ounces are calculated multiplying the silver ounces by the ratio of the silver price to the gold price, using the average LBMA prices for the period. The Company does not include by-products in the gold equivalent ounce calculations.
(3)Gold equivalent ounces sold may not re-calculate based on amounts presented in this table due to rounding.
Non-GAAP Measure - Adjusted Attributable Net Income (Loss)
Adjusted attributable net income (loss) and adjusted attributable net income (loss) per share are used by management and investors to measure the Company’s underlying operating performance. The most directly comparable financial measures prepared in accordance with GAAP are Net income (loss) attributable to SSR Mining shareholders and Net income (loss) per share attributable to SSR Mining shareholders. Adjusted attributable net income (loss) is defined as net income (loss) adjusted to exclude the after-tax impact of specific items that are significant, but not reflective of the Company’s underlying operations, including impairment charges; and inflationary impacts on tax balances.
The following table provides a reconciliation of Net income (loss) attributable to SSR Mining shareholders to adjusted net income (loss) attributable to SSR Mining shareholders:
| Three Months Ended June 30, | Six Months Ended June 30, | |||
|---|---|---|---|---|
| (in thousands, except per share) | 2024 | 2023 | 2024 | 2023 |
| Net income (loss) attributable to SSR Mining shareholders (GAAP) | $9,693 | $74,866 | $(277,389) | $104,679 |
| Interest saving on 2019 Notes, net of tax | — | 1,236 | — | 2,456 |
| Net income (loss) used in the calculation of diluted net income per share | $9,693 | $76,102 | $(277,389) | $107,135 |
| Weighted-average shares used in the calculation of net income | ||||
| Basic | 202,133 | 204,680 | 202,244 | 205,723 |
| Diluted | 202,407 | 217,320 | 202,244 | 218,347 |
| Net income (loss) per share attributable to SSR Mining shareholders (GAAP) | ||||
| Basic | $0.05 | $0.37 | $(1.37) | $0.51 |
| Diluted | $0.05 | $0.35 | $(1.37) | $0.49 |
| Adjustments: | ||||
| Artmin transaction and integration costs | $— | $377 | $— | $377 |
| Effects of the Çöpler Incident (1) | — | — | 321,954 | — |
| Change in fair value of marketable securities | (3,602) | 746 | (6,419) | (1,120) |
| Loss (gain) on sale of mineral properties, plant and equipment | — | 810 | — | 1,050 |
| Income tax impact related to above adjustments | 573 | (109) | 1,021 | 30 |
| Inflationary impacts on tax balances | 825 | (1,587) | (9,168) | (10,741) |
| Other tax adjustments (2) | — | — | — | 2,101 |
| Adjusted net income (loss) attributable to SSR Mining shareholders (Non-GAAP) | $7,489 | $75,103 | $29,999 | $96,376 |
| Adjusted net income (loss) per share attributable to SSR Mining shareholders (Non-GAAP) | ||||
| Basic | $0.04 | $0.37 | $0.15 | $0.47 |
| Diluted (3) | $0.04 | $0.35 | $0.15 | $0.45 |
(1)The effects of the Çöpler Incident represent the following unusual and nonrecurring charges: (1) reclamation costs of $9.0 million and remediation costs of $209.3 million (amounts are presented net of pre-tax attributable to non-controlling interest of $50.1 million); (2) impairment charges of $91.4 million related to plans to permanently close the heap leach pad (amount is presented net of pre-tax attributable to non-controlling interest of $22.8 million); and (3) contingencies of $12.3 million (amount is presented net of pre-tax attributable to non-controlling interest of $3.0 million). Refer to Note 3 to the Condensed Consolidated Financial Statements for further details related to the impact of the Çöpler Incident.
(2)Represents charges related to a one-time tax imposed by Türkiye to fund earthquake recovery efforts, offset by a release of an uncertain tax position.
(3)Adjusted net income (loss) per diluted share attributable to SSR Mining shareholders is calculated using diluted common shares, which are calculated in accordance with GAAP. For the six months ended June 30, 2024, $1.2 million interest saving on 2019 Notes, net of tax, and potentially dilutive shares of approximately 12.9 million were excluded from the computation of diluted loss per common share attributable to SSR Mining shareholders in the Condensed Consolidated Statement of Operations as they were antidilutive. These interest savings and shares were included in the computation of adjusted net income (loss) per diluted share attributable to SSR Mining shareholders for the six months ended June 30, 2024.
Non-GAAP Measure - Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") and Adjusted EBITDA
EBITDA represents net income (loss) before interest, taxes, depreciation, and amortization. EBITDA is an indicator of the Company’s ability to generate liquidity by producing operating cash flow to fund working capital needs, service debt obligations, and fund capital expenditures.
Adjusted EBITDA represents net income (loss) before interest, taxes, depreciation, and amortization, adjusted to exclude the impact of specific items that are significant, but not reflective of the Company’s underlying operations, including impairment charges.
The most directly comparable financial measure prepared in accordance with GAAP to EBITDA and Adjusted EBITDA is Net income (loss) attributable to SSR Mining shareholders.
The following is a reconciliation of Net income (loss) attributable to SSR Mining shareholders to EBITDA and adjusted EBITDA:
| Three Months Ended June 30, | Six Months Ended June 30, | |||
|---|---|---|---|---|
| (in thousands) | 2024 | 2023 | 2024 | 2023 |
| Net income (loss) attributable to SSR Mining shareholders (GAAP) | $9,693 | $74,866 | $(277,389) | $104,679 |
| Net income (loss) attributable to non-controlling interests | (7,229) | 47,510 | (78,309) | 46,701 |
| Depletion, depreciation and amortization | 23,011 | 44,641 | 61,409 | 91,736 |
| Interest expense | 2,105 | 4,959 | 6,760 | 10,019 |
| Income and mining tax expense (benefit) | 11,727 | (83,388) | (8,510) | (80,600) |
| EBITDA (non-GAAP) | 39,307 | 88,588 | (296,039) | 172,535 |
| Artmin transaction and integration costs | — | 377 | — | 377 |
| Effects of the Çöpler Incident (1) | — | — | 402,443 | — |
| Change in fair value of marketable securities | (3,602) | 746 | (6,419) | (1,120) |
| Loss (gain) on sale of mineral properties, plant and equipment | — | 810 | — | 1,050 |
| Adjusted EBITDA (non-GAAP) | $35,705 | $90,521 | $99,985 | $172,842 |
(1)The effects of the Çöpler Incident represent the following unusual and nonrecurring charges: (1) reclamation costs of $11.2 million and remediation costs of $261.7 million; (2) impairment charges of $114.2 million related to plans to permanently close the heap leach pad; and (3) contingencies of $15.3 million. Refer to Note 3 to the Condensed Consolidated Financial Statements for further details related to the impact of the Çöpler Incident.
Non-GAAP Measure - Free Cash Flow
The Company uses free cash flow to supplement information in its consolidated financial statements. The most directly comparable financial measures prepared in accordance with GAAP is Cash provided by (used in) operating activities. The Company believes that in addition to conventional measures prepared in accordance with US GAAP, certain investors and analysts use this information to evaluate the ability of the Company to generate cash flow after capital investments and build the Company’s cash resources. The Company calculates free cash flow by deducting cash capital spending from cash generated by operating activities. The Company does not deduct payments made for business acquisitions.
The following table provides a reconciliation of Cash provided by (used in) operating activitiesto free cash flow:
| Six Months Ended June 30, | ||
|---|---|---|
| (in thousands) | 2024 | 2023 |
| Cash provided by (used in) operating activities (GAAP) | $(53,501) | $83,310 |
| Expenditures on mineral properties, plant and equipment | (72,211) | (117,177) |
| Free cash flow (non-GAAP) | $(125,712) | $(33,867) |
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.