8-K: SSR Mining Forecasts Over 10% Production Growth in 2025, Driven by CC&V Acquisition

SSR Mining anticipates a production increase of over 10% in 2025, fueled by the recent acquisition of CC&V and advancements in other key projects.

Summary

• SSR Mining projects gold equivalent production of 410,000 to 480,000 ounces in 2025.
• This guidance excludes potential contributions from the pler mine.
• The company expects a more than 10% year-over-year increase in gold equivalent production.
• Consolidated cost of sales are estimated at $1,375 to $1,435 per payable ounce.
• All-in sustaining costs (AISC) are projected to be $2,090 to $2,150 per payable ounce, or $1,890 to $1,950 excluding care and maintenance costs at pler.
• The acquisition of CC&V was completed on February 28, 2025, and its production guidance reflects the period from March 1 to December 31, 2025.
• SSR Mining plans to spend $60 to $100 million on project development capital for Hod Maden in 2025.
• Consolidated production in 2025, excluding any potential contributions from pler, is expected to be 55% weighted to the second half of the year.
• Quarterly AISC is expected to be highest in the first and third quarters of 2025.
• Development capital, largely attributable to the advancement of the Hod Maden project, is expected to be relatively evenly distributed throughout the year.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive due to the expected production growth and the acquisition of CC&V. However, the ongoing suspension of operations at pler and the associated costs are a concern.

Positives

• The acquisition of CC&V is expected to significantly boost production.
• SSR Mining is actively working to extend mine lives at its Americas assets.
• The company has a robust balance sheet to support its growth initiatives.
• Technical work at Hod Maden continues to affirm prior due diligence outcomes.
• SSR Mining is advancing opportunities to extend the mine life at Puna, including pit laybacks at the Chinchillas pit and advancing exploration and engineering work at Cortaderas.
• Continued delivery of operational improvement initiatives has enabled further increases to process plant throughputs at Puna, which are targeted to average approximately 5,000 tonnes per day throughout the year.

Negatives

• The pler mine remains suspended following the February 13, 2024 incident.
• The company is unable to estimate when operations at pler will resume.
• Care and maintenance costs at pler are impacting consolidated AISC.
• SSR Mining continues to anticipate the cost for pler remediation and containment work from April 1, 2024 onwards remains unchanged at $250 to $300 million.

Risks

• The ongoing suspension of operations at the pler mine poses a significant risk.
• The company faces uncertainty regarding the timing and conditions for restarting pler.
• Delays in obtaining necessary regulatory approvals for pler could further impact operations.
• Fluctuations in commodity prices and exchange rates could affect financial performance.
• The company's forward-looking statements are subject to various risks and uncertainties.
• The company is exposed to risks and uncertainties resulting from the incident at pler described in our Annual Report on Form 10-K for the year ended December 31, 2024.

Future Outlook

SSR Mining anticipates significant production growth and strong cash flows in 2025, driven by its Americas assets and the acquisition of CC&V. The company is focused on delivering growth across its portfolio and building its position as a leading mid-tier gold producer.

Management Comments

• Rod Antal, Executive Chairman of SSR Mining, said, 'We entered 2025 with positive momentum. Our Americas assets, recently bolstered by the acquisition of CC&V, are well positioned for significant production growth and strong cash flows in 2025.'
• Rod Antal, Executive Chairman of SSR Mining, said, 'In addition, we see attractive and low capital intensity opportunities to potentially extend the mine lives at each of these assets going forward and will continue to progress technical work through the year.'
• Rod Antal, Executive Chairman of SSR Mining, said, 'In Trkiye, constructive discussions with the relevant Turkish government authorities continue, as the Company remains committed to both restarting the pler mine and progressing the Hod Maden project towards a construction decision.'
• Rod Antal, Executive Chairman of SSR Mining, said, 'Underpinning our ambitious growth initiatives remains a robust balance sheet. Looking ahead, we have a clear path forward, with a focus on delivering growth across the portfolio as we look to build our position as a leading mid-tier gold producer.'

Industry Context

The announcement reflects a broader trend in the mining industry of companies seeking growth through acquisitions and project development. SSR Mining's focus on increasing production and reducing costs aligns with industry best practices. The company's efforts to restart the pler mine are also noteworthy, as environmental and social responsibility are increasingly important considerations for mining companies.

Comparison to Industry Standards

• SSR Mining's AISC guidance of $2,090 to $2,150 per ounce is higher than some of its peers, such as Barrick Gold (ABX) and Newmont Corporation (NEM), which have reported AISC in the range of $1,200 to $1,300 per ounce.
• However, SSR Mining's AISC guidance is impacted by the care and maintenance costs at pler, which are expected to be $20 to $25 million per quarter.
• SSR Mining's production guidance of 410,000 to 480,000 gold equivalent ounces is lower than some of the larger gold producers, such as Newmont and Barrick Gold, which produce several million ounces of gold per year.
• However, SSR Mining is focused on growing its production through acquisitions and project development, and its production guidance is expected to increase in the coming years.
• The Hod Maden project is a high-grade gold-copper project that is expected to be a significant contributor to SSR Mining's production in the future. Similar projects, such as the Oyu Tolgoi project in Mongolia, have been successfully developed and are generating significant value for their owners.

Stakeholder Impact

• Shareholders can expect increased production and potential for higher cash flows.
• Employees at CC&V have become part of SSR Mining following the acquisition.
• The restart of the pler mine is important for the local community in Trkiye.
• Suppliers and contractors will be impacted by the company's capital expenditure plans.

Next Steps

• SSR Mining will continue to work closely with the relevant authorities in Trkiye to advance the restart of the pler mine.
• The company will progress technical work on an updated life of mine plan for CC&V, expected to be released within the next 12 months.
• SSR Mining will continue to advance the Hod Maden project towards a construction decision.
• The company will continue to advance opportunities to extend the mine life at Puna.
• SSR Mining will continue to advance greenfield opportunities across its portfolio.

Key Dates

Keywords

SSR Mining, Production Guidance, Gold Equivalent Ounces, CC&V, Hod Maden, pler, AISC, Marigold, Seabee, Puna