8-K: SSR Mining Reports Fourth Quarter and Full-Year 2024 Results, Impacted by pler Incident

SSR Mining's 2024 financial results were significantly impacted by the pler Incident, with operations suspended and substantial remediation costs incurred, though Marigold, Seabee, and Puna operations showed strong performance.

Summary

• SSR Mining reported its consolidated financial results for the fourth quarter and full year ended December 31, 2024.
• The results were impacted by the February 13, 2024 incident at the pler mine.
• Fourth quarter production was 124,154 gold equivalent ounces at a consolidated cost of sales of $1,295 per payable ounce and AISC of $1,857 per payable ounce.
• Full year 2024 production was 399,267 gold equivalent ounces at a consolidated cost of sales of $1,307 per payable ounce and AISC of $1,878 per payable ounce.
• Full-year AISC included $60.8 million in cash care & maintenance costs at pler, or $155 per ounce of gold equivalent sold.
• Full-year 2024 production from Marigold, Seabee and Puna totaled 371,061 gold equivalent ounces at cost of sales of $1,317 per payable ounce and AISC of $1,542 per payable ounce.
• The company recognized two significant production milestones in 2024, including 5 million ounces of life of mine gold production from Marigold, achieved on December 30, 2024, as well as record full-year silver production at Puna.
• In the fourth quarter of 2024, SSR Mining reported net income attributable to SSR Mining shareholders of $5.6 million, or $0.03 per diluted share.
• Adjusted net income attributable to SSR Mining shareholders was $21.3 million, or $0.10 per diluted share.
• Net income (loss) attributable to SSR Mining shareholders for the full year of 2024 was $(261.3) million, or $(1.29) per diluted share, reflecting approximately $272.9 million in incurred and anticipated reclamation and remediation costs, $114.2 million in non-cash impairment charges, and $108.7 million in total care and maintenance costs incurred as a result of the pler Incident.
• Adjusted net income attributable to SSR Mining shareholders for the full year of 2024 was $57.6 million, or $0.28 per diluted share, after adjusting for non-recurring items largely related to the pler Incident.
• In the fourth quarter of 2024, SSR Mining generated $95.0 million in operating cash flow and $56.4 million in free cash flow.
• For the full-year 2024, SSR Mining generated $40.1 million in operating cash flow, while free cash flow was $(103.4) million, inclusive of the aforementioned care and maintenance costs as well as $127.6 million spent on reclamation and remediation efforts at pler.
• As of December 31, 2024, the Company had a cash and cash equivalent balance of $387.9 million and total liquidity of $887.5 million inclusive of its revolving credit facility and accompanying accordion feature.
• Total Proven and Probable gold equivalent Mineral Reserves as of December 31, 2024 were 8.0 million ounces, up 3% on a year-over-year basis.
• SSR Mining increased the gold and silver price assumptions used in the calculation of 2024 Mineral Reserves at Marigold and Puna by approximately 3%, from $1,450 per ounce gold in 2023 to $1,500 per ounce in 2024, and from $18.50 per ounce silver in 2023 to $19.00 per ounce in 2024.
• Total Measured and Indicated gold equivalent Mineral Resources as of December 31, 2024 were 5.2 million ounces, down 1% on a year-over-year basis.
• On December 6, 2024, the Company announced it had entered into a definitive purchase agreement to acquire the Cripple Creek & Victor Gold Mine (CC&V) in Colorado for $100 million in upfront cash consideration and up to $175 million in additional milestone-based payments.

Sentiment

Score: 4

Explanation: The sentiment is moderately negative due to the significant impact of the pler Incident on financial results, offset by positive performance at other mines and strategic acquisitions.

Positives

• Marigold achieved 5 million ounces of life of mine gold production.
• Puna recorded record full-year silver production.
• Proven and Probable gold equivalent Mineral Reserves increased by 3% year-over-year.
• SSR Mining declared an initial Mineral Reserve of approximately 523,000 ounces of gold at Marigold's Buffalo Valley deposit.
• Seabee operations exceeded revised guidance range at costs below guidance, driven by processed grades that averaged 9.7 g/t in the fourth quarter.

Negatives

• The full year 2024 net loss was $(261.3) million, or $(1.29) per diluted share, heavily impacted by the pler Incident.
• Full-year 2024 free cash flow was $(103.4) million.
• Operations at pler remain suspended following the pler Incident.
• Total Measured and Indicated gold equivalent Mineral Resources as of December 31, 2024 were down 1% on a year-over-year basis.
• Operations at Seabee were suspended for more than 50 days due to forest fires.

Risks

• The pler Incident continues to pose significant risks and uncertainties for the company, including potential financial and operational impacts.
• The company is subject to governmental and regulatory requirements, including changes in government policy and environmental regulations.
• Global pandemics could impact mining operations.
• The company faces risks related to local and global political and economic conditions.
• The company faces risks related to reclamation and remediation spend at pler, which is forecasted to be $250.0 to $300.0 million from April 1, 2024 onwards.
• The Turkish Council of State affirmed the finding of the lower court, cancelling the pler mines environmental impact assessment, which was approved in 2021.

Future Outlook

The company expects to provide 2025 outlook for CC&V with its annual guidance following the close of the CC&V acquisition, which is expected within the first quarter of 2025. The Company expects to provide information on its anticipated 2025 capital spend at Hod Maden with its annual guidance, which is expected within the first quarter of 2025. At this time, we are not able to estimate or predict when and under what conditions we will resume operations at pler.

Management Comments

• Public statements from Turkish government officials have consistently confirmed that there has been no recordable contamination to local soil, water or air in the sampling locations resulting from the displaced heap leach material.
• CNI determined that the most likely cause of the pler Incident was a deeply-rooted flaw in the third-party engineered design of the heap leach pad.
• CNIs review did not find any substantiation that excess water, ground vibrations from blasting, nor stacking beyond the design caused the event.

Industry Context

The report reflects the challenges faced by mining companies in managing operational risks, particularly in regions with complex regulatory and environmental considerations. The pler Incident highlights the importance of robust engineering design and operational oversight. The acquisition of CC&V aligns with the industry trend of consolidating assets to diversify portfolios and enhance free cash flow generation.

Comparison to Industry Standards

• SSR Mining's AISC of $1,878 per gold equivalent ounce is higher than the industry average, primarily due to the impact of the pler Incident.
• Companies like Newmont and Barrick Gold typically aim for AISC figures below $1,200 per ounce.
• SSR Mining's Marigold and Seabee operations, with AISC of $1,711 and $1,515 per ounce respectively, are more in line with industry standards for similar open-pit and underground gold mines.
• The record silver production at Puna demonstrates strong operational performance compared to other silver mining operations in Argentina, such as those operated by Pan American Silver.

Legal Proceedings

• On August 20, 2024, a local court issued a decision cancelling the pler mines environmental impact assessment, which was approved in 2021.
• On February 11, 2025 the Turkish Council of State affirmed the finding of the lower court.

Stakeholder Impact

• The pler Incident has had a significant impact on employees, families, and community members.
• The company continues to support the employees, families, and community members impacted by the pler Incident.
• The suspension of operations at pler has impacted the local economy and employment opportunities.

Next Steps

• The company will continue to work closely with the relevant authorities to advance the restart of the pler mine.
• SSR Mining expects to provide the 2025 outlook for CC&V with its annual guidance following the close of the CC&V acquisition, which is expected within the first quarter of 2025.
• The Company expects to provide information on its anticipated 2025 capital spend at Hod Maden with its annual guidance, which is expected within the first quarter of 2025.

Key Dates