8-K: SSR Mining Reports First Quarter 2025 Results, Driven by Strong Operational Performance

SSR Mining announces solid Q1 2025 financial results, highlighted by net income of $58.8 million and gold equivalent production of 103,805 ounces.

Summary

• SSR Mining reported its consolidated financial results for the first quarter ended March 31, 2025.
• The company produced 103,805 gold equivalent ounces at a cost of sales of $1,312 per payable ounce and AISC of $1,972 per payable ounce.
• Net income attributable to SSR Mining shareholders was $58.8 million, or $0.28 per diluted share.
• Adjusted net income attributable to SSR Mining shareholders was $61.6 million, or $0.29 per diluted share.
• The company generated $84.8 million in operating cash flow and $39.3 million in free cash flow.
• As of March 31, 2025, SSR Mining had a cash and cash equivalent balance of $319.6 million.
• Total liquidity was $819.6 million, including an undrawn revolving credit facility.
• The company spent $12.2 million at Hod Maden on engineering and site establishment.
• Remediation and reclamation spend at pler totaled $5.0 million, and care and maintenance costs totaled $35.8 million.

Sentiment

Score: 7

Explanation: The report is generally positive, highlighting strong operational performance and financial results. However, the ongoing issues at pler and the associated costs temper the overall sentiment.

Positives

• Each of SSR Mining's assets performed well against expectations in the first quarter.
• The company is on track for full-year consolidated production and cost guidance.
• SSR Mining is positioned to generate strong free cash flows through the remainder of the year.
• The integration of CC&V into the SSR Mining portfolio was seamless, with operating results aligned with expectations.
• Seabee achieved processed grades of 9.00 g/t due to positive grade reconciliation in Santoy 9.
• Puna increased silver production to 2.5 million ounces compared to 1.9 million ounces in the same period last year.

Negatives

• The company is unable to estimate when operations will resume at pler.
• Care and maintenance costs at pler totaled $35.8 million, including $20.6 million in cash costs.
• Sustaining capital spend at Marigold was lower than planned due to some expenditures being shifted to the second quarter.

Risks

• The company faces uncertainty regarding the restart of operations at pler.
• The pler incident continues to pose risks and uncertainties.
• Fluctuations in commodity prices could impact financial results.
• Delays in obtaining regulatory approvals could affect project timelines.
• The company is exposed to political and economic conditions in the countries where it operates.

Future Outlook

SSR Mining expects to achieve its full-year consolidated production and cost guidance and generate strong free cash flows for the remainder of 2025. The company anticipates releasing an updated life of mine plan for CC&V within the next 12 months.

Management Comments

• Rod Antal, Executive Chairman of SSR Mining, stated that the company entered 2025 with a clear focus on operational delivery and is pleased with the performance of each asset in the first quarter.
• He also mentioned that the company is well on track for full-year consolidated production and cost guidance and is positioned to generate strong free cash flows through the remainder of the year.
• Antal noted the seamless integration of CC&V and the focus on advancing optimization and possible expansion opportunities at the site.

Industry Context

SSR Mining's focus on operational delivery and cost management aligns with broader industry trends aimed at maximizing profitability in a volatile commodity price environment. The acquisition of CC&V diversifies the company's asset base and provides exposure to a stable mining jurisdiction. The ongoing challenges at pler highlight the operational and regulatory risks associated with mining in certain regions.

Comparison to Industry Standards

• SSR Mining's AISC of $1,972 per gold equivalent ounce is higher than some of its peers, such as Barrick Gold (ABX) and Newmont Corporation (NEM), but this figure includes the impact of care and maintenance costs at pler.
• Excluding pler costs, the AISC of $1,749 per gold equivalent ounce is more competitive.
• The company's free cash flow generation of $39.3 million is a positive sign, but it is lower than some larger gold producers.
• SSR Mining's production guidance of 410,000 to 480,000 gold equivalent ounces places it in the mid-tier producer category, smaller than industry giants like Newmont and Barrick, but larger than many junior miners.

Stakeholder Impact

• Shareholders will benefit from the improved financial performance and potential for future growth.
• Employees at CC&V will benefit from the integration into a larger, more diversified company.
• Local communities will benefit from the economic activity generated by SSR Mining's operations.
• The ongoing suspension at pler continues to impact stakeholders in Trkiye.

Next Steps

• Continue to work closely with authorities to advance the restart of the pler mine.
• Advance optimization and possible expansion opportunities at CC&V.
• Continue development activities at Hod Maden.
• Advance exploration and development activities across the portfolio.
• Release an updated life of mine plan for CC&V within the next 12 months.

Key Dates

Keywords

SSR Mining, Gold, Silver, Production, Financial Results, Q1 2025, pler, Hod Maden, CC&V, Marigold, Seabee, Puna, AISC, Operating Cash Flow, Free Cash Flow