UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

For May 6, 2021

Commission File Number: 001-35455

 

 

SSR MINING INC.

(Translation of registrant’s name into English)

 

 

#800 - 7001 E. Belleview Ave.

Denver, Colorado

USA 80237 

#800 – 1055 Dunsmuir Street

PO Box 49088, Bentall Postal Station

Vancouver, British Columbia

Canada V7X 1G4

(Address of principal executive offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.

☐  Form 20-F                ☒  Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

DOCUMENTS FILED AS PART OF THIS FORM 6-K

See the Exhibit Index hereto.

 

 

 

 

 

 

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

    SSR Mining Inc.
    (Registrant)
Date: May 6, 2021     By:   Signed: “Michael J. Sparks”
      Michael J. Sparks
    Title:   Executive Vice President and Chief Legal & Administrative Officer

 

 

 

 

SUBMITTED HEREWITH

 

Exhibits

    
99.1    Condensed Consolidated Interim Financial Statements for the Three Months Ended March 31, 2021
99.2   Management's Discussion and Analysis for the Three Months Ended March 31, 2021
99.3   Form 52-109F2 - Certification of Interim Filings - Full Certificate - CEO
99.4   Form 52-109F2 - Certification of Interim Filings - Full Certificate - CFO
99.5   News Release Dated May 6, 2021

Exhibit 99.1

 

 

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED

MARCH 31, 2021 AND 2020

(unaudited)

 

 
 

 

 

Contents

 

Consolidated Financial Statements  
   
Condensed Consolidated Interim Statements of Financial Position  
Condensed Consolidated Interim Statements of Income  
Condensed Consolidated Interim Statements of Comprehensive Income  
Condensed Consolidated Interim Statements of Cash Flows  
Condensed Consolidated Interim Statements of Changes in Shareholders’ Equity  
   
Notes to the Condensed Consolidated Interim Financial Statements  
Note 1 – Nature of operations  
Note 2 – Basis of presentation  
Note 3 – Areas of judgment and estimation uncertainty  
   
Condensed Consolidated Statements of Financial Position  
Note 4 – Inventories  
Note 5 – Mineral properties, plant and equipment  
Note 6 – Debt and credit facility  
   
Condensed Consolidated Statements of Income  
Note 7 – Revenue  
Note 8 – Income per share  
   
Condensed Consolidated Statements of Shareholders’ Equity  
Note 9 – Share-based compensation  
Note 10 – Dividends  
   
Additional Disclosures  
Note 11 – Operating segments  
Note 12 – Fair value measurements  
Note 13 – Supplemental cash flow information  
Note 14 – Subsequent Event  

 

 

 

 

SSR Mining Inc.Interim Financial Statements Q1 2021 | 2

 

 

 

SSR Mining Inc.

Condensed Consolidated Interim Statements of Financial Position

(expressed in thousands of United States dollars, except for per share amounts)

(Unaudited)

 

 

    
  

 

 

Note

 

 

March 31,

2021

 

 

December 31,

2020

Current assets               
Cash and cash equivalents       $866,029   $860,637 
Marketable securities        25,942    26,748 
Trade and other receivables        97,442    83,491 
Inventories   4    429,678    437,379 
Prepaids and other current assets        19,302    16,267 
         1,438,393    1,424,522 
Non-current assets               
Mineral properties, plant and equipment   5    3,558,688    3,565,905 
Inventories - non-current   4    162,427    134,612 
Restricted cash        35,290    35,288 
Investments in joint ventures        6,776    7,782 
Goodwill        49,786    49,786 
Deferred income tax assets        1,924    4,612 
Other        19,843    22,479 
Total assets       $5,273,127   $5,244,986 
                
Current liabilities               
Accounts payable and accrued liabilities       $164,567   $175,984 
Debt   6    71,090    71,025 
Reclamation and closure cost provision        2,747    1,924 
         238,404    248,933 
Non-current liabilities               
Debt   6    303,892    319,645 
Lease liabilities        116,517    117,029 
Reclamation and closure cost provision        121,613    117,650 
Deferred income tax liabilities        522,841    483,449 
Other        4,857    18,377 
Total liabilities        1,308,124    1,305,083 
                
Shareholders' equity               
Common shares        3,226,627    3,220,795 
Other reserves        49,154    40,570 
Equity component of convertible notes        106,425    106,425 
Retained earnings        100,475    58,487 
Total equity attributable to equity holders of SSR Mining        3,482,681    3,426,277 
Non-controlling interest        482,322    513,626 
Total equity        3,965,003    3,939,903 
Total liabilities and equity       $5,273,127   $5,244,986 

 

 

The accompanying notes are an integral part of the consolidated financial statements

      

Approved by the Board of Directors and authorized for issue on May 4, 2021.

"Beverlee F. Park"   "Rodney P. Antal"
Beverlee F. Park, Director   Rodney P. Antal, Director

 

SSR Mining Inc.Interim Financial Statements Q1 2021 | 3

 

 

 

SSR Mining Inc.

Condensed Consolidated Interim Statements of Income

(expressed in thousands of United States dollars, except for per share amounts)

(Unaudited)

 

 

      Three months ended March 31,
   Note  2021  2020
Revenue   7   $366,484   $164,463 
Cost of sales               
Production costs        (157,492)   (91,045)
Depletion and depreciation        (61,172)   (28,635)
         (218,664)   (119,680)
Income from mine operations        147,820    44,783 
General and administrative expense        (11,867)   (5,893)
Share-based compensation recovery   9    4,507    3,568 
Exploration, evaluation and reclamation expense        (7,955)   (6,362)
Care and maintenance expense   11    —      (1,330)
Transaction and integration expense        (4,492)   —   
Operating income        128,013    34,766 
Interest and other finance income        470    2,397 
Interest expense and other finance costs        (7,945)   (6,966)
Other expense        (2,180)   (1,380)
Foreign exchange (loss) gain        (424)   1,158 
Income before income taxes        117,934    29,975 
Income tax expense        (58,172)   (5,999)
Net income       $59,762   $23,976 
Attributable to:               
Equity holders of SSR Mining       $52,980   $23,976 
Non-controlling interest        6,782    —   
        $59,762   $23,976 
Net income per share attributable to equity holders of SSR Mining               
Basic   8   $0.24   $0.19 
Diluted   8   $0.24   $0.19 

 

The accompanying notes are an integral part of the consolidated financial statements

 

SSR Mining Inc.Interim Financial Statements Q1 2021 | 4

 

 

 

SSR Mining Inc.

Condensed Consolidated Interim Statements of Comprehensive Income

(expressed in thousands of United States dollars)

(Unaudited)

 

   2021  2020
Net income  $59,762   $23,976 
Other comprehensive income          
Items that will not be reclassified to net income:          
Loss on marketable securities at FVTOCI, net of tax recovery of $109 and $2,382   (697)   (13,497)
Items that may be subsequently reclassified to net income:          
Unrealized gain (loss) on effective portion of derivative, net of tax (expense) recovery of $(726) and $2,633   2,582    (9,092)
Realized (gain) loss on derivatives reclassified to net income, net of tax expense (recovery) of $63 and $(9)   (147)   34 
Total other comprehensive income   1,738    (22,555)
Total comprehensive income  $61,500   $1,421 
Attributable to:         
Equity holders of SSR Mining  $54,718   $1,421 
Non-controlling interest   6,782    —   
Total comprehensive income  $61,500   $1,421 

 

The accompanying notes are an integral part of the consolidated financial statements.

 

SSR Mining Inc.Interim Financial Statements Q1 2021 | 5

 

 

 

 

SSR Mining Inc.

Condensed Consolidated Interim Statements of Cash Flows

(expressed in thousands of United States dollars)

(Unaudited)

 

   Note  2021  2020
Cash flows from operating activities               
Net income for the period       $59,762   $23,976 
Adjustments for:               
Depletion and depreciation        61,375    28,806 
Interest and other finance income        (470)   (2,397)
Interest expense        7,444    6,439 
Income tax expense        58,172    5,999 
Non-cash foreign exchange (gain)        (997)   (1,306)
Other   13    9,697    13,659 
Net change in operating assets and liabilities   13    (39,423)   (290)
Cash generated from operating activities before taxes        155,560    74,886 
Income taxes paid        (10,339)   (10,750)
Cash generated by operating activities        145,221    64,136 
Cash flows from investing activities               
Expenditures on mineral properties, plant and equipment        (68,579)   (53,903)
Purchases of marketable securities        —      (10,147)
Net proceeds from sales of marketable securities        —      12,055 
Interest received        551    1,783 
Other        (25)   851 
Cash used in investing activities        (68,053)   (49,361)
Cash flows from financing activities               
Repayment of debt, principal   6    (17,500)   —   
Interest paid   6    (4,665)   (5,464)
Redemption of convertible notes   6    —      (114,994)
Proceeds from exercise of stock options        2,749    1,387 
Lease payments        (2,874)   (376)
Dividends paid to equity holders of SSR Mining   10    (10,992)   —   
Dividends paid to non-controlling interest        (38,086)   —   
Other        (420)   —   
Cash used in financing activities        (71,788)   (119,447)
Effect of foreign exchange rate changes on cash and cash equivalents        12    (536)
Increase (decrease) in cash and cash equivalents        5,392    (105,208)
Cash and cash equivalents, beginning of year        860,637    503,647 
Cash and cash equivalents, end of period       $866,029   $398,439 

Supplemental cash flow information (note 13)

The accompanying notes are an integral part of the consolidated financial statements.

 

SSR Mining Inc.Interim Financial Statements Q1 2021 | 6

 

 

 

SSR Mining Inc.

Condensed Consolidated Interim Statements of Changes in Shareholders' Equity

(expressed in thousands of United States dollars)

(Unaudited)

 

      Common shares                  
   Note   

Number of shares

(000's) 

      Amount  Other reserves 

Equity

component of convertible notes

  Retained earnings (deficit) 

Total equity

attributable to equity holders of SSR Mining

 

Non-

controlling

interest

 

Total

equity

Balance, January 1, 2020        123,084   $1,083,766   $19,762   $106,425   $(75,999)  $1,133,954   $—     $1,133,954 
Exercise of stock options and settlement of RSUs        157    1,975    (588)   —      —      1,387    —      1,387 
Equity-settled share-based compensation   9    —      —      1,223    —      —      1,223    —      1,223 
Equity value of convertible debt redeemed        —      6    —      —      —      6    —      6 
Total comprehensive income (loss) for the period                                             
Net income        —      —      —      —      23,976    23,976    —      23,976 
Other comprehensive loss        —      —      (22,555)   —      —      (22,555)   —      (22,555)
         —      —      (22,555)   —      23,976    1,421    —      1,421 
Balance, March 31, 2020        123,241   $1,085,747   $(2,158)  $106,425   $(52,023)  $1,137,991   $—     $1,137,991 
                                              
Balance, January 1, 2021        219,607    3,220,795    40,570    106,425    58,487    3,426,277    513,626    3,939,903 
Exercise of stock options        364    3,966    (1,216)   —      —      2,750    —      2,750 
Settlement of RSUs and PSUs        92    1,866    (1,777)   —      —      89    —      89 
Transfer of cash-settled RSUs        —      —      8,802    —      —      8,802    —      8,802 
Equity-settled share-based compensation   9    —      —      1,037    —      —      1,037    —      1,037 
Dividends paid   10    —      —      —      —      (10,992)   (10,992)   (38,086)   (49,078)
Total comprehensive income for the period                                             
Net income        —      —      —      —      52,980    52,980    6,782    59,762 
Other comprehensive income        —      —      1,738    —      —      1,738    —      1,738 
         —      —      1,738    —      52,980    54,718    6,782    61,500 
Balance, March 31, 2021       $220,063   $3,226,627   $49,154   $106,425   $100,475   $3,482,681   $482,322   $3,965,003 

 

The accompanying notes are an integral part of the consolidated financial statements.

 

SSR Mining Inc.Interim Financial Statements Q1 2021 | 7

SSR Mining Inc.

Notes to the Condensed Consolidated Interim Financial Statements

(tabular amounts expressed in thousands of United States dollars unless otherwise stated)

(Unaudited)

 

 

1.NATURE OF OPERATIONS

 

SSR Mining Inc. (the "Company" or "SSR Mining") is a company incorporated under the laws of the Province of British Columbia, Canada. The Company's common shares are listed on the Toronto Stock Exchange (TSX) in Canada and the Nasdaq Global Select Market (NASDAQ) in the United States under the symbol "SSRM" and the Australian Securities Exchange (ASX) in Australia under the symbol "SSR".

 

The Company and its subsidiaries (collectively, the "Group") are principally engaged in the operation, acquisition, exploration and development of precious metal resource properties located in Turkey and the Americas. The Company has four producing mines in Argentina, Canada, Turkey and the United States. SSR Mining Inc. is the ultimate parent of the Group.

 

The Company's focus is on safe, profitable gold and silver production from its Çöpler Gold Mine ("Çöpler") in Erzincan, Turkey, Marigold mine ("Marigold") in Nevada, USA, Seabee Gold Operation ("Seabee") in Saskatchewan, Canada and Puna Operations ("Puna") in Jujuy, Argentina, and to advance, as market and project conditions permit, its principal development projects toward commercial production.

 

On September 16, 2020, the Company acquired all of the issued and outstanding common shares of Alacer Gold Corp. ("Alacer"). The Company determined that the transaction represented a business combination under IFRS 3, with SSR Mining identified as the acquiror. Based upon the September 15, 2020 closing share price of the Company's common shares, the total consideration of the acquisition was $2.2 billion.

 

In accordance with the acquisition method of accounting, the consideration transferred was allocated to the underlying assets acquired and liabilities assumed, based upon their estimated fair values as at the date of acquisition.

 

Significant Developments During the Three Months Ended March 31, 2021

COVID-19 Response and Impact on Operations

During the three months ended March 31, 2021, the COVID-19 pandemic continued to impact global economic and financial markets, disrupting global supply chains and workforce participation. Many industries and businesses, including SSR Mining, continue to be impacted by the COVID-19 pandemic and face operating challenges associated with the regulations and guidelines resulting from efforts to contain COVID-19.

 

The Company continues to restrict all non-essential travel and manage the contacts of its employees and contractors in order to reduce the risk of COVID-19 impacting its operations. The Company is operating its corporate offices at reduced capacity, with most employees working remotely.

 

The Company's mine sites remain operational with carefully managed COVID-19 based restrictions designed to protect employees, including quarantining, testing, ensuring physical distancing and providing additional protective equipment. In Turkey, COVID-19 continues to slow government processes including permitting, with considerable effort being expended to attain permits and land access for continued growth and operations.

 

 

 

 

 

 

 

SSR Mining Inc.Interim Financial Statements Q1 2021 | 8

SSR Mining Inc.

Notes to the Condensed Consolidated Interim Financial Statements

(tabular amounts expressed in thousands of United States dollars unless otherwise stated)

(Unaudited)

 

2.BASIS OF PRESENTATION

 

(a)Statement of compliance

 

These unaudited condensed consolidated interim financial statements have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS") applicable to the preparation of interim financial statements, including IAS 34, Interim Financial Reporting, and do not include all the information required for full annual financial statements. Accordingly, these condensed consolidated interim financial statements should be read in conjunction with the Company's audited consolidated financial statements for the year ended December 31, 2020. Except as described in note 2(b), the accounting policies applied in the preparation of these unaudited condensed consolidated interim financial statements are consistent with those applied and disclosed in the Company's audited consolidated financial statements for the year ended December 31, 2020.

 

These statements were authorized for issue by the Board of Directors on May 4, 2021.

 

(b)Interest Rate Benchmark Reform - Phase 2 Amendments

 

The Company adopted Interest Rate Benchmark Reform - Phase 2: Amendments to IFRS 9, IAS 39, IFRS 4 and IFRS 16 (the "Phase 2 Amendments") effective on January 1, 2021. Interest rate benchmark reform ("Reform") refers to a global reform of interest rate benchmarks, which includes the replacement of some interbank offered rates ("IBOR") with alternative benchmark rates. The Phase 2 Amendments provide a practical expedient requiring the effective interest rate be adjusted when accounting for changes in the basis for determining the contractual cash flows of financial assets and liabilities that relate directly to the Reform rather than applying modification accounting which might have resulted in a gain or loss. In addition, the Phase 2 Amendments require disclosures to assist users in understanding the effect of the Reform on the Company's financial instruments and risk management strategy.

 

The Company has the following financial instruments indexed to London interbank offered rates ("LIBOR") that have not yet transitioned to alternative benchmark rates at the end of the current reporting period:

 

 

Financial instrument 

Carrying

amount

Term Loan  $192,500 
Interest rate swap contracts   1,190 
Credit Facility   —   

 

The Company maintains a Term Loan which bears interest at the three month USD LIBOR plus a fixed interest rate margin ranging from 3.50% to 3.70% depending on the tranche and which is expected to be fully repaid in December 2023. The Company is currently working with the syndicate of lenders to assess the potential alternatives to the use of LIBOR.

 

The Company also maintains LIBOR interest rate swap contracts with underlying notional amounts of approximately 33% of the outstanding Term Loan balance as at March 31, 2021 through December 22, 2021. Considering the short term to maturity of the interest rate swap contracts, as well as the current expected timing of changes to alternative benchmark rates, the Company does not expect to transition to an alternative benchmark rate.

 

The Company further maintains a $75.0 million senior secured revolving credit facility (the "Credit Facility") with a $25.0 million accordion feature, for which amounts borrowed incur variable interest at LIBOR plus an applicable margin ranging from 2.25% to 3.75% based on the Company's net leverage ratio, among other things. The Credit Facility matures in June 2021. Considering the short term to maturity of the Credit Facility, as well as the current expected timing of changes to alternative benchmark rates, the Company does not expect to transition to an alternative benchmark rate.

 

SSR Mining Inc.Interim Financial Statements Q1 2021 | 9

SSR Mining Inc.

Notes to the Condensed Consolidated Interim Financial Statements

(tabular amounts expressed in thousands of United States dollars unless otherwise stated)

(Unaudited)

 

3.AREAS OF JUDGMENT AND ESTIMATION UNCERTAINTY

In preparing its consolidated financial statements, the Company makes judgments in applying its accounting policies. In addition, the preparation of consolidated financial statements in conformity with IFRS requires the use of estimates that may affect the amounts reported and disclosed in the consolidated financial statements and related notes in future periods. These estimates are based on management’s best knowledge of the relevant facts and circumstances, having regard to previous experience, but actual results may differ materially from the amounts included in the consolidated financial statements. The significant accounting policy judgments and areas of estimation uncertainty in the preparation of the unaudited condensed consolidated interim financial statements for the three months ended March 31, 2021 are consistent with those applied and disclosed in note 3 to the Company's audited consolidated financial statements for the year ended December 31, 2020.

 

 

4.   INVENTORIES          
    March 31, 2021     December 31, 2020 
Stockpiled ore (1)  $178,464  $157,141 
Leach pad inventory   273,992    284,355 
Work-in-process   6,100    4,368 
Finished goods   37,663    38,661 
Materials and supplies   95,886    87,466 
    592,105    571,991 
Stockpiled ore - non-current   (160,794)   (132,912)
Materials and supplies - non-current   (1,633)   (1,700)
Current inventories  $429,678  $437,379 
(1)At March 31, 2021, stockpiled ore includes $8.8 million current and $160.8 million non-current stockpiled sulfide ore related to Çöpler (December 31, 2020 - $12.5 million current and $132.9 million non-current stockpiled sulfide ore related to Çöpler).

 

 

SSR Mining Inc.Interim Financial Statements Q1 2021 | 10

SSR Mining Inc.

Notes to the Condensed Consolidated Interim Financial Statements

(tabular amounts expressed in thousands of United States dollars unless otherwise stated)

(Unaudited)

 

 

5. MINERAL PROPERTIES, PLANT AND EQUIPMENT

 

   March 31, 2021
  

Plant and

equipment (1)

  Construction in process  Mineral properties subject to depletion  Mineral properties not yet subject to depletion  Exploration and evaluation assets  Total
Cost                  
Balance, beginning of year  $1,675,283   $43,007   $1,476,616   $225,528   $944,413   $4,364,847 
Additions   11,392    42,797    20,000    2,352    2,367    78,908 
Disposals/removal of fully depreciated assets   (4,436)   —      —      —      —      (4,436)
Change in reclamation and closure cost provision   —      —      3,871    —      —      3,871 
Transfers   24,460    (29,934)   12,571    (66)   (7,031)   —   
Balance, end of period   1,706,699    55,870    1,513,058    227,814    939,749    4,443,190 
                               
Accumulated depletion and depreciation                              
Balance, beginning of year   (432,027)   —      (366,915)   —      —      (798,942)
Depletion and depreciation   (30,101)   —      (59,715)   —      —      (89,816)
Disposals/removal of fully depreciated assets   4,256    —      —      —      —      4,256 
Balance, end of period   (457,872)   —      (426,630)   —      —      (884,502)
Carrying amount at March 31, 2021  $1,248,827   $55,870   $1,086,428   $227,814   $939,749   $3,558,688 

 

 

 

   December 31, 2020
  

Plant and

equipment (1)

  Construction in process  Mineral properties subject to depletion  Mineral properties not yet subject to depletion  Exploration and evaluation assets  Total
Cost                  
Balance, beginning of year  $663,368   $28,208   $539,378   $80,296   $127,141   $1,438,391 
Alacer acquisition   926,228    26,874    882,742    146,086    807,902    2,789,832 
Additions   2,927    104,475    55,477    2,714    7,980    173,573 
Disposals/removal of fully depreciated assets   (22,466)   (297)   (24,373)   —      —      (47,136)
Change in reclamation and closure cost provision   —      —      8,799    —      1,388    10,187 
Transfers   105,226    (116,253)   14,593    (3,568)   2    —   
Balance, end of year   1,675,283    43,007    1,476,616    225,528    944,413    4,364,847 
                               
Accumulated depreciation and depletion                              
Balance, beginning of year   (375,398)   —      (293,531)   —      —      (668,929)
Depreciation and depletion   (73,041)   —      (97,757)   —      —      (170,798)
Disposals/removal of fully depreciated assets   16,412    —      24,373    —      —      40,785 
Balance, end of year   (432,027)   —      (366,915)   —      —      (798,942)

Carrying amount  at

December 31, 2020

  $1,243,256   $43,007   $1,109,701   $225,528   $944,413   $3,565,905 

 

 

 

SSR Mining Inc.Interim Financial Statements Q1 2021 | 11

SSR Mining Inc.

Notes to the Condensed Consolidated Interim Financial Statements

(tabular amounts expressed in thousands of United States dollars unless otherwise stated)

(Unaudited)

 

 

6.   DEBT AND CREDIT FACILITY          
    March 31, 2021    December 31, 2020 
2019 Notes  $179,658   $177,582 
Term Loan   192,500    210,000 
Other   2,824    3,088 
Total carrying amount  $374,982   $390,670 

 

The following is a reconciliation of the changes in the Company's debt balance to cash flows arising from financing activities:

 

   March 31, 2021  December 31, 2020
Balance, beginning of year (1)  $392,412   $286,852 
Financing cash flows:          
Interest paid   (4,665)   (12,444)
Redemption of 2013 Notes   —      (114,994)
Principal paid on Term Loan   (17,500)   (35,000)
Other   (264)   —   
Other changes:          
Interest expense   5,264    19,916 
Redemption of 2013 Notes - converted to equity   —      (6)
Term Loan   —      245,000 
Issuance of debt   —      3,088 
Balance, end of period (1)   375,247    392,412 
Less: accrued interest   (265)   (1,742)
Carrying amount, end of period  $374,982   $390,670 
           
Classified as:          
Current  $71,090   $71,025 
Non-current   303,892    319,645 
   $374,982   $390,670 

(1)       Includes accrued interest presented within accounts payable and accrued liabilities.

 

 

7.REVENUE

 

   Three months ended March 31
   2021  2020
Gold bullion and doré sales  $313,135  $136,777 
Concentrate sales   53,928    35,623 
Other (1)   (579)   (7,937)
   $366,484  $164,463 
(1)Other revenue includes: changes in the fair value of concentrate trade receivables due to changes in silver and base metal prices; and silver and copper by-product revenue arising from the production and sale of gold bullion and doré.

 

 

SSR Mining Inc.Interim Financial Statements Q1 2021 | 12

SSR Mining Inc.

Notes to the Condensed Consolidated Interim Financial Statements

(tabular amounts expressed in thousands of United States dollars unless otherwise stated)

(Unaudited)

 

 

8.INCOME PER SHARE

 

The calculations of basic and diluted income per share attributable to equity holders of SSR Mining for the three months ended March 31, 2021 and 2020 are based on the following:

  

   Three months ended March 31,
   2021  2020
Net income  $59,762   $23,976 
Net (income) attributable to non-controlling interest   (6,782)   —   
Net income attributable to equity holders of SSR Mining   52,980    23,976 
Adjustment for dilutive instruments          
Interest saving on convertible notes, net of tax   2,550    —   
Net income used in the calculation of diluted net income per share  $55,530   $23,976 
           
Weighted average number of common shares issued   219,792    123,228 
Adjustments for dilutive instruments:          
Stock options   307    681 
Performance share units   —      547 
Restricted share units   1,063    —   
Convertible notes   12,445    —   
Diluted weighted average number of shares outstanding   233,607    124,456 
           
Net income per share attributable to equity holders of SSR Mining          
Basic  $0.24   $0.19 
Diluted  $0.24   $0.19 

 

 

9.SHARE-BASED COMPENSATION

 

Total share-based compensation expense, including all equity and cash-settled arrangements, for the three months ended March 31, 2021 and 2020 has been recognized in the consolidated financial statements as follows:

 

   Three months ended March 31,
   2021  2020
Equity-settled      
Production costs  $282   $68 
Share-based compensation expense (recovery)   731    1,145 
Exploration, evaluation and reclamation expense (recovery)   24    10 
Cash-settled          
Production costs   330    270 
Share-based compensation expense (recovery)   (5,238)   (4,714)
Exploration, evaluation and reclamation expense (recovery)   7    (37)
Transaction and integration expense   2,165    —   
   $(1,699)  $(3,258)

Under the Company's share compensation plans, there is the option to settle vested Restricted Share Units ("RSUs") in either cash or common shares. On February 10, 2021, the Company's Board of Directors indicated its intention to settle all the RSUs issued under the Company's plans, when vested, in common shares of SSR Mining. Prior to this date, based on a past history of settling RSUs in cash, the Company had accounted for these awards as liabilities. As a result of this change, the value of the relevant outstanding RSUs was fixed at the date of modification and the existing liability of $8,802,000 ($6,426,000 net of tax) was transferred to the share-based compensation reserve of shareholders' equity. The unamortized portion of $8,074,000 relating to these RSUs will be amortized over the remaining vesting periods.

 

 

SSR Mining Inc.Interim Financial Statements Q1 2021 | 13



SSR Mining Inc.

Notes to the Condensed Consolidated Interim Financial Statements

(tabular amounts expressed in thousands of United States dollars unless otherwise stated)

(Unaudited)

10.DIVIDENDS

 

On March 31, 2021, the Company paid a cash dividend of $0.05 per common share to shareholders of record on March 5, 2021, totaling $11 million.

 

Subsequent to March 31, 2021, the Board of Directors declared a quarterly cash dividend of $0.05 per common share, payable on June 14, 2021 to holders of record at the close of business on May 17, 2021.

 

11.OPERATING SEGMENTS

 

Results of operating segments are reviewed by the Company's chief operating decision maker ("CODM") to make decisions about resources to be allocated to the segments and to assess their performance. Each individual operating mine site is considered to be a reportable operating segment for financial reporting purposes.

 

In connection with the acquisition of Alacer on September 16, 2020, the Company added Çöpler as a new operating segment.

 

The following is a summary of the reported amounts of income from mine operations, operating income (loss), income (loss) before income taxes and the carrying amounts of assets and liabilities by operating segment:

 

Three months ended March 31, 2021  Çöpler  Marigold  Seabee  Puna (1)  Exploration, evaluation and development properties  Other reconciling items (2)  Total
Revenue  $151,522   $115,973   $45,707   $53,282   $—     $—     $366,484 
Production costs   (66,028)   (51,955)   (16,742)   (22,767)   —      —      (157,492)
Depletion and depreciation   (31,072)   (14,293)   (9,622)   (6,185)   —      —      (61,172)
Cost of sales   (97,100)   (66,248)   (26,364)   (28,952)   —      —      (218,664)
Income from mine operations   54,422    49,725    19,343    24,330    —      —      147,820 
                                    
Exploration, evaluation and reclamation expense   (2,840)   (407)   (2,795)   (19)   (1,652)   (242)   (7,955)
Transaction and integration expense   —      —      —      —      —      (4,492)   (4,492)
Operating income (loss)   48,117    49,421    16,639    23,227    (1,652)   (7,739)   128,013 
Income (loss) before income tax   47,096    49,138    16,534    20,317    (1,987)   (13,164)   117,934 
As at March 31, 2021                                   
Total assets  $2,323,553   $688,903   $469,952   $256,659   $1,037,942   $496,118   $5,273,127 
Non-current assets   2,011,916    308,780    318,692    142,108    1,036,742    16,496    3,834,734 
Total liabilities   (776,490)   (128,568)   (94,285)   (54,251)   (28,938)   (225,592)   (1,308,124)

 

 

SSR Mining Inc.Interim Financial Statements Q1 2021 | 14

SSR Mining Inc.

Notes to the Condensed Consolidated Interim Financial Statements

(tabular amounts expressed in thousands of United States dollars unless otherwise stated)

(Unaudited)

 

11.OPERATING SEGMENTS (continued)

 

Three months ended March 31, 2020  Marigold  Seabee  Puna (1)  Exploration, evaluation and development properties  Other reconciling items (2)  Total
Revenue  $92,081   $44,697   $27,685   $—     $—     $164,463 
Production costs   (47,771)   (15,048)   (28,226)   —      —      (91,045)
Depletion and depreciation   (11,853)   (9,918)   (6,864)   —      —      (28,635)
Cost of sales   (59,624)   (24,966)   (35,090)   —      —      (119,680)
Income from mine operations   32,457    19,731    (7,405)   —      —      44,783 
                               
Exploration, evaluation and reclamation expense   (732)   (2,437)   (150)   (2,782)   (261)   (6,362)
Care and maintenance expense (3)   —      —      (1,330)   —      —      (1,330)
Operating income (loss)   32,348    17,294    (9,092)   (2,782)   (3,002)   34,766 
Income (loss) before income tax   32,356    15,359    (11,923)   (3,197)   (2,620)   29,975 
As at March 31, 2020                              
Total assets  $545,386   $439,520   $235,377   $116,070   $275,651   $1,612,004 
Non-current assets   266,663    313,553    151,682    114,891    21,972    868,761 
Total liabilities   (109,295)   (96,848)   (53,922)   (20,903)   (193,045)   (474,013)

 

(1)Cost of sales at Puna include a write-down of metal inventories to net realizable value of $nil for the three months ended March 31, 2021 (March 31, 2020 - $8.5 million).
(2)Other reconciling items refer to items that are not reported as part of segment performance as they are managed on a corporate basis.
(3)On March 20, 2020 and March 25, 2020, due to the COVID-19 pandemic, the Company temporarily suspended operations at Puna and Seabee, respectively. While the operations were suspended, the Company continued to perform care and maintenance activities and incurred incremental costs as a result. These incremental costs do not relate to producing or selling metal concentrate or gold, and therefore they have been identified and presented separately within operating income (loss).

 

12.FAIR VALUE MEASUREMENTS

 

(a) Fair values of financial assets and liabilities measured at fair value

 

The categories of the fair value hierarchy that reflect the significance of inputs used in making fair value measurements are as follows:

 

Level 1 - quoted prices in active markets for identical assets or liabilities;

 

Level 2 - inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and

 

Level 3 - inputs for the asset or liability that are not based on observable market data.

 

The levels in the fair value hierarchy into which the Company's financial assets and liabilities that are measured and recognized on the consolidated statements of financial position at fair value on a recurring basis were categorized as follows:

 

SSR Mining Inc.Interim Financial Statements Q1 2021 | 15

SSR Mining Inc.

Notes to the Condensed Consolidated Interim Financial Statements

(tabular amounts expressed in thousands of United States dollars unless otherwise stated)

(Unaudited)

 

 

12.FAIR VALUE MEASUREMENTS (continued)

 

(a)Fair values of financial assets and liabilities measured at fair value (continued)
   
   Fair value at March 31, 2021   
   Level 1 (1)  Level 2 (2)  Level 3 (3)  Total
Marketable securities  $25,942   $—     $—     $25,942 
Trade receivables   —      56,899    —      56,899 
Derivative assets   —      2,311    —      2,311 
Other financial assets   —      —      9,732    9,732 
Derivative liabilities   —      (1,190)   —      (1,190)
   $25,942   $58,020   $9,732   $93,694 

 

   Fair value at December 31, 2020   
   Level 1 (1)  Level 2 (2)  Level 3 (3)  Total
Marketable securities  $26,748   $—     $—     $26,748 
Trade receivables   —      38,456    —      38,456 
Derivative assets   —      1,243    —      1,243 
Other financial assets   —      —      9,748    9,748 
Derivative liabilities   —      (3,881)   —      (3,881)
   $26,748   $35,818   $9,748   $72,314 

(1) Marketable securities of publicly quoted companies, consisting of investments measured at fair value through other comprehensive income, are valued using a market approach based upon unadjusted quoted prices in an active market obtained from securities exchanges.

(2) Trade receivables relating to sales of concentrate are included in Level 2 as the basis of valuation uses quoted commodity forward prices. Derivative assets and liabilities are included in Level 2 as the basis of valuation uses quoted prices in active markets.

(3) Certain items of deferred consideration from the sale of exploration and evaluation assets are included in Level 3, as certain assumptions used in the calculation of the fair value are not based on observable market data.

 

During the three months ended March 31, 2021, no amounts were transferred between Levels.

 

(b)Fair values of financial assets and liabilities not already measured at fair value

 

As at March 31, 2021, the fair value of the 2019 Notes and Term Loan as compared to the carrying amounts were as follows:

      March 31, 2021  December 31, 2020
   Level  Carrying amount  Fair value  Carrying amount  Fair value
2019 Notes (1)   1   $(179,658)$   (267,950)$   (177,582)$   (317,538)
Term Loan   3    (192,500)   (201,765)   (210,000)   (221,943)
Total borrowings       $(372,158)$   (469,715)$   (387,582)$   (539,481)

 

(1) The fair value disclosed for the Company's 2019 Notes is included in Level 1 as the basis of valuation uses a quoted price in an active market. The carrying amount of the 2019 Notes represents the debt component of the convertible notes, while the fair value represents both the debt and equity components of the 2019 Notes.

 

 

SSR Mining Inc.Interim Financial Statements Q1 2021 | 16

SSR Mining Inc.

Notes to the Condensed Consolidated Interim Financial Statements

(tabular amounts expressed in thousands of United States dollars unless otherwise stated)

(Unaudited)

 

 

13.SUPPLEMENTAL CASH FLOW INFORMATION

 

Adjustments for other non-cash operating activities during the three months ended March 31, 2021 and 2020 were as follows:

 

   Three months ended March 31,
   2021  2020
Share-based payments  $1,037   $1,223 
Loss or write-down on sale of mineral properties, plant and equipment   31    722 
(Gain) loss on change in fair value of concentrate trade receivables   (940)   8,724 
Non-cash amortization of prepayments   10,908    2,877 
Other   (1,339)   113 
   $9,697   $13,659 

 

Net change in operating assets and liabilities during the three months ended March 31, 2021 and 2020 were as follows:

 

   Three months ended March 31,
   2021  2020
Trade and other receivables  $(20,551)  $7,549 
Other current assets   (11,733)   4,427 
Inventories   6,140    (347)
Accounts payable and accrued liabilities   (13,547)   (9,789)
Reclamation and closure cost provision - current   268    (2,130)
   $(39,423)  $(290)

  

14.SUBSEQUENT EVENT

 

On April 16, 2021, the Company received approval of its Notice of Intention to Make a Normal Course Issuer Bid (the "NCIB") to purchase its common shares through the facilities of the Toronto Stock Exchange, the NASDAQ or other Canadian and United States market places. All shares will be canceled upon purchase. Pursuant to the NCIB, the Company is able to purchase up to 10,000,000 common shares over a twelve month period commencing on April 21, 2021. The NCIB will expire no later than April 20, 2022.

 

 

 

SSR Mining Inc.Interim Financial Statements Q1 2021 | 17

Exhibit 99.2

 

 

 

 

 

 

 

 

 

 

 

 

 

MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE THREE
MONTHS ENDED MARCH 31, 2021

 

 

 

 

 

 
 

 

 

CONTENTS  
   
1 First Quarter 2021 Highlights
2 Business Overview and Strategy
3 Business Developments
4 Outlook
5 Financial and Operating Highlights
6 Results of Operations
7 Exploration and Development
8 Mineral Reserves and Mineral Resources
9 Financial Results
10 Liquidity and Capital Resources
11 Financial Instruments
12 Risks and Uncertainties
13 Non-GAAP Financial Measures
14 Critical Accounting Policies and Estimates
15 Internal Control over Financial Reporting and Disclosure Controls and Procedures
16 Cautionary Notes Regarding Forward-Looking Statements and Mineral Reserves and Mineral Resources Estimates

 

 

SSR Mining Inc

MD&A Q1 2021 | 2

 

MANAGEMENT'S DISCUSSION AND ANALYSIS OF THE FINANCIAL POSITION AND RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2021

 

This Management's Discussion and Analysis ("MD&A") is intended to supplement the unaudited condensed consolidated interim financial statements of SSR Mining Inc., ("SSR Mining", or the "Company") for the three months ended March 31, 2021, and the related notes thereto, which have been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS", or "GAAP"), applicable to the preparation of interim financial statements, including IAS 34, Interim Financial Reporting.

 

All figures are expressed in U.S. dollars ("USD") except where otherwise indicated. This MD&A has been prepared as of May 4, 2021, and should be read in conjunction with the unaudited condensed consolidated interim financial statements for the three months ended March 31, 2021.

 

Additional information, including the Company's most recent Annual Information Form and Annual Report on Form 40-F, is available on SEDAR at www.sedar.com, on the EDGAR section of the U.S. Securities and Exchange Commission ("SEC") website at www.sec.gov and on the ASX at www.asx.com.au.

 

This MD&A contains "forward-looking statements" that are subject to risk factors set out in a cautionary note contained in Section 16 herein. The Company uses certain non-GAAP financial measures in this MD&A; for a description of each of these measures, please see the discussion under "Non-GAAP Financial Measures" in Section

13. The Company uses Mineral Reserves and Mineral Resources classifications in this MD&A, which differ significantly from the classifications required by the SEC, as set out in the cautionary note contained in Section 16.

 

On September 16, 2020, the Company acquired all of the issued and outstanding shares of Alacer Gold Corp. (“Alacer”). The Company began consolidating the operating results, cash flows and net assets of Alacer from September 16, 2020, and the results in this MD&A reflect such consolidation.

 

 

SSR Mining Inc

MD&A Q1 2021 | 3

 

1.FIRST QUARTER 2021 HIGHLIGHTS

 

Robust quarterly operating performance across all four operations: Delivered first quarter production of 196,094 gold equivalent ounces at AISC of $1,004 per gold equivalent ounce, on track to meet full-year guidance ranges.

 

Strong financial performance: Generated cash flows from operating activities of $145.2 million and free cash flow of $76.6 million in the first quarter.(1) Reported first quarter attributable net income of $53.0 million, or $0.24 per share, and adjusted attributable net income of $102.4 million, or $0.47 per share.(1)

 

Maintained strong, peer-leading balance sheet: Cash and cash equivalents and consolidated cash balances remained strong at quarter end, increasing to $866.0 million and $901.6 million, following $49.1 million in dividend payments to equity shareholders and to Çöpler's non-controlling interest, while also reducing debt balances $17.5 million during the quarter.

 

Capital allocation framework in place: The Board declared the first quarterly cash dividend of $0.05 per share on February 17, 2021. Subsequent to the quarter-end, the Company announced that it has received acceptance from the Toronto Stock Exchange, to initiate a Normal Course Issuer Bid permitting SSR Mining to purchase for cancellation up to 10,000,000 common shares of the Company, representing 4.5% of SSR Mining’s total issued and outstanding common shares.

 

Released year-end 2020 Mineral Reserves and Resources: Gold Mineral Reserves increased 5% to 8.0 million ounces (9.0 million gold-equivalent ounces), while gold Measured and Indicated Mineral Resources increased 14% to 15.0 million ounces (27.0 million gold-equivalent ounces).

 

Delivered integrated sustainability report: On March 30, 2021, the Company published its third annual ESG and Sustainability Report, and its first since the merger with Alacer. The ESG report included a commitment to net zero greenhouse emissions by 2050.

 

Çöpler delivered strong margins and progressed growth initiatives: Delivered gold production of 78,478 ounces in the first quarter. Reported AISC of $743 per ounce in the first quarter, generating robust margins.(1) Çöpler flotation plant commissioning and ramp-up remain on schedule for mid-year 2021.

 

Marigold had record material movement and the Mineral Resource grew: Delivered gold production of 67,936 ounces for the first quarter as the mine moved a record 23.8 million tonnes of material. The record movement was achieved despite a 35 day scheduled maintenance shutdown of the largest shovel. Indicated Mineral Resources increased by 9% for a total of 5.4 million ounces of gold compared to 4.9 million ounces at year-end 2019. Mineral Resources increased at Mackay, Red Dot, New Millennium, Crossfire and Valmy.

 

Seabee continues to deliver, Mineral Reserves were replaced and the land position more than doubled: Produced 23,735 ounces of gold in-line with the full-year mine plan. In the first quarter of 2021, Seabee exercised its option to acquire an additional 20% interest in the Fisher property, bringing its joint venture interest to 80%. Despite a limited exploration program due to COVID-19, Seabee largely replaced Mineral Reserves for the year.

 

Puna generated robust margins: Produced 1.8 million ounces of silver at cash costs of $9.41 per ounce in the first quarter and AISC of $13.98 per ounce. Puna revenue increased by 92% in the first quarter of 2021 compared to the first quarter of 2020, due to a 49% increase in the average realized silver price.(1)

 

(1)SSR Mining reports the non-GAAP financial measures of all-in sustaining costs ("AISC") per ounce of gold, silver and gold equivalent sold, adjusted attributable net income, adjusted attributable net income per share, free cash flow and consolidated cash to manage and evaluate the Company's operating performance. See “Non-GAAP Financial Measures” in Section 13.

 

 

SSR Mining Inc

MD&A Q1 2021 | 4

 

2.   BUSINESS OVERVIEW AND STRATEGY

Business Overview

SSR Mining is an intermediate precious metals mining company with four producing assets located in the USA, Turkey, Canada and Argentina. The Company's assets primarily produce gold and also silver, lead and zinc concentrates. The production sites and a global pipeline of high-quality development and exploration assets located in the USA, Turkey, Canada, Mexico and Peru form a diversified portfolio of high-margin, long-life assets along several of the world's most prolific metal districts.

 

The Company has an experienced leadership team with a proven track record of delivery and value creation. Across the organization, the Company has expertise in project construction, mining (open pit and underground), and processing (pressure oxidation, heap leach and flotation), with a robust commitment to health, safety, community engagement and environmental management.

 

The Company has a strong balance sheet, with $901.6 million in consolidated cash(1) as at March 31, 2021, to support its growth pipeline. The Company intends to leverage its balance sheet strength and proven track record of free cash flow generation to fund growth across the portfolio and facilitate superior returns to shareholders.

 

SSR Mining is listed under the ticker symbol SSRM on the Toronto Stock Exchange and Nasdaq Global Select Market (NASDAQ) and SSR on the Australian Securities Exchange.

 

Strategy

 

The Company's focus is on safe, sustainable, and profitable gold and silver production at its Çöpler Gold Mine ("Çöpler"), Marigold Mine ("Marigold"), Seabee Gold Operation ("Seabee"), and Puna Operations ("Puna"). SSR Mining is committed to delivering safe production with an emphasis on Operational Excellence. The Company is also focused on growing production and Mineral Reserves through exploration and asset acquisition for accretive growth.

 

Sustainability is a key priority for all stakeholders, whether they are local communities, local and national governments, the Company's shareholders or its employees. SSR Mining recognizes that people and the environment are central to its success and the Company is committed to safeguarding them by implementing the highest standards of sustainability, as well as the necessary plans, procedures, metrics and targets to meet the Company's commitments.

 

SSR Mining's four producing assets are described below:

 

Çöpler Gold Mine, Turkey

 

Çöpler, 80% owned by SSR Mining, is an open pit gold mine located along the Tethyan belt in east-central Turkey in the Erzincan Province, approximately 1,100 kilometers southeast of Istanbul and 550 kilometers east of Ankara. Çöpler contains oxide and sulfide ores which are mined concurrently and processed through its two processing plants using heap leach and pressure oxidation processing, respectively, to produce gold doré bars. Çöpler and nearby tenements are positioned on a land package of approximately 25,800 hectares.

 

Marigold Mine, USA

 

Marigold is an open pit gold mine located along the Battle Mountain-Eureka Trend in Nevada, USA. Marigold is a run-of-mine heap leach operation, moving more than 200,000 tonnes of material per day, and producing gold doré bars. Marigold is positioned on a land package of approximately 20,000 hectares.

 

Seabee Gold Operation, Canada

 

Seabee is an underground gold mine located along the Trans-Hudson Corridor in east-central Saskatchewan, Canada. Seabee processes ore through its processing plant using gravity concentration and cyanide leaching to produce gold doré bars. Seabee is positioned on a land package of approximately 60,000 hectares, including the 80% owned Fisher property.

 

(1) SSR Mining reports the non-GAAP financial measure of consolidated cash to supplement information in the Company's consolidated financial statements. See “Non-GAAP Financial Measures” in Section 13.

 

 

SSR Mining Inc

MD&A Q1 2021 | 5

 

2.   BUSINESS OVERVIEW AND STRATEGY (continued)

Puna Operations, Argentina

Puna is an open pit silver-lead-zinc mine located along the Bolivian silver belt in northern Argentina in the Province of Jujuy. Puna processes ore mined from the Chinchillas mine through its Pirquitas mill, using flotation processing to produce silver-lead and zinc concentrates.

 

3.BUSINESS DEVELOPMENTS

 

COVID-19 Response and Impact on Operations

 

During the three months ended March 31, 2021, the COVID-19 pandemic continued to impact global economic and financial markets, disrupting global supply chains and workforce participation. Many industries and businesses, including SSR Mining, continue to be impacted by the COVID-19 pandemic and face operating challenges associated with the regulations and guidelines resulting from efforts to contain COVID-19.

 

The Company continues to restrict all non-essential travel and manage the contacts of its employees and contractors in order to reduce the risk of COVID-19 impacting its operations. The Company is operating its corporate offices at reduced capacity, with most employees working remotely.

 

The Company's mine sites remain operational with carefully managed COVID-19 based restrictions designed to protect employees, including quarantining, testing, ensuring physical distancing and providing additional protective equipment. In Turkey, COVID-19 continues to slow government processes including permitting, with considerable effort being expended to attain permits and land access for continued growth and operations.

 

Payment of Dividends

 

On February 17, 2021, the Company announced that its Board of Directors declared its inaugural quarterly cash dividend of $0.05 per common share, payable on March 31, 2021 to holders of record at the close of business on March 5, 2021. The Company paid its inaugural dividend of $0.05 per common share, totaling $11 million, on March 31, 2021.

 

Subsequent to March 31, 2021, the Board of Directors declared a quarterly cash dividend of $0.05 per common share, payable on June 14, 2021 to holders of record at the close of business on May 17, 2021.

 

Appointment of New Chief Financial Officer

 

On February 26, 2021, the Company announced the appointment of Ms. Alison White as Executive Vice President, Chief Financial Officer. Ms. White joined the Company from Newmont Corporation at the end of March 2021.

 

ESG and Sustainability Report

 

On March 30, 2021, the Company published its third annual ESG and Sustainability Report, and its first since the merger with Alacer. The highlights of the Sustainability Report include:

Amalgamation of best practices from across the business to develop an integrated Environment, Health, Safety and Sustainability ("EHSS") management system.
New suite of sustainability policies released to align with leading industry practices.
Commitment to establishing an action plan to achieve net zero greenhouse gas emissions by 2050.
Improved disclosures on climate and water management by responding to Carbon Disclosure Project ("CDP"), and by aligning our reporting with the requirements of the Taskforce on Climate-related Financial Disclosures ("TCFD").
Focus on Diversity, Equity and Inclusion with an updated and broadened Diversity Policy and strategic planning.

 

 

SSR Mining Inc

MD&A Q1 2021 | 6

 

3.   BUSINESS DEVELOPMENTS (continued)

Normal Course Issuer Bid

On April 16, 2021, the Company received approval of its Notice of Intention to Make a Normal Course Issuer Bid (the "NCIB") to purchase its common shares through the facilities of the Toronto Stock Exchange, the NASDAQ or other Canadian and United States market places. All shares will be canceled upon purchase. Pursuant to the NCIB, the Company intends to purchase up to 10,000,000 common shares over a twelve month period commencing on April 21, 2021. The NCIB will expire no later than April 20, 2022.

 

4.OUTLOOK

 

This section of the MD&A provides management's production, cost, capital, exploration and development expenditure estimates for 2021. These are “forward-looking statements” and subject to the cautionary note regarding the risks associated with forward- looking statements contained in Section 16. Cash costs and AISC per ounce of gold and silver sold are non-GAAP financial measures. Please see the discussion under "Non-GAAP Financial Measures" in Section 16.

 

The Company's guidance is unchanged from that reported on January 19, 2021. For the full year 2021, the Company expects:

 

Operating Guidance (100%) (1)     Çöpler (2)  Marigold  Seabee  Puna  Other  Consolidated
Gold Production  koz  310 - 340  235 - 265  95 - 105      640 - 710
Silver Production  Moz        6.0 - 7.0    6.0 - 7.0
Gold Equivalent Production  koz  310 - 340  235 - 265  95 - 105  80 - 90    720 - 800
Cash Cost per Ounce (3)   $/oz    550 - 600    810 - 860    525 - 575    10.00 - 11.50    —      660 - 715 

Sustaining Capital

Expenditures (4)

   $M    52    53    11    19    —      135 
Capitalized Stripping / Capitalized Development   $M    9    47    19    13    —      88 
Sustaining Exploration Expenditures   $M    2    7    1    1    —      11 
General & Administrative (5)   $M    —      —      —      —      30 - 35    30 - 35 
Share-based Compensation (5)   $M    —      —      —      —      15 - 20    15 - 20 

All-In Sustaining Cost per

Ounce (3)

   $/oz    760 - 810    1,250 - 1,290    860 - 910    16.00 - 17.50    —      1,050 - 1,110 
Growth Capital Expenditures   $M    26    —      7    —      —      33 

Growth Exploration and

Development Expenditures (6)

   $M    31    11    7    —      5    54 
Total Growth Capital   $M    57    11    14    —      5    87 

 

(1)Figures may not add due to rounding.
(2)Figures are reported on a 100% basis. Çöpler is 80% owned by SSR Mining.
(3)SSR Mining reports the non-GAAP financial measures of cash costs and AISC per ounce of gold and silver sold to manage and evaluate operating performance at Çöpler, Marigold, Seabee and Puna. Refer to Section 13 "Non-GAAP Financial Measures".
(4)Excludes sustaining exploration expenditures. Includes $9.5 million oxygen plant lease payment at Çöpler.
(5)General and administrative expenses exclude share-based compensation, which is reported separately.
(6)Growth exploration and development expenditures are shown on a 100% basis, of which SSR Mining's attributable amount totals $46 million.
(7)All figures in U.S. dollars, unless otherwise noted. Gold equivalent figures for 2021 operating guidance are based on a gold-to-silver ratio of 76:1. Cash costs and capital expenditures guidance is based on an oil price of $45 per barrel and an exchange rate of 1.30 Canadian dollars to one U.S. dollar and 7.5 Turkish lira to one U.S. dollar.

 

The Company continues to expect free cash flow generation in 2021 to be approximately 75% weighted to the second half of the year due to the timing of the ramp-up and commissioning of the flotation circuit at Çöpler, timing of capital expenditures across all sites, working capital seasonality at Seabee, and tax and royalty payments that are paid in the first half of the year.

 

 

SSR Mining Inc

MD&A Q1 2021 | 7

 

4.   OUTLOOK (continued)

Capital Returns

The Company's capital allocation strategy is multi-faceted and includes balancing investment in high-return growth, maintaining peer leading financial strength, and providing sustainable capital returns to shareholders.

 

In recognition of SSR Mining's position as a leading and sustainable free cash flow generator in the gold sector, it is the Company's intention to return excess attributable free cash flow to shareholders through a multi-tiered capital return structure. While a recurring quarterly dividend is expected to be the primary method of capital return, the Company will periodically evaluate supplementing this dividend from excess attributable free cash flow in the form of incremental dividends and/or share buyback programs.

 

On March 31, 2021, the Company paid its inaugural quarterly dividend payment of $0.05 per common share to shareholders of record on March 5, 2021. The declaration and payment of future dividends will be at the discretion of the Board of Directors and will be made based on the Company’s financial position and other factors relevant at the time.

 

Pursuant to the approval of the NCIB received on April 16, 2021, the Company intends to purchase and cancel up to 10,000,000 of common shares through April 2022 (refer to Section 3).

 

 

SSR Mining Inc

MD&A Q1 2021 | 8

 

5.FINANCIAL AND OPERATING HIGHLIGHTS

 

A summary of the Company's consolidated financial and operating results for the three months ended March 31, 2021 and 2020 are presented below:

 

(in thousands of US dollars, except per share data)  Three months ended March 31,
   2021  2020
Financial Results          
Revenue  $366,484   $164,463 
Income from mine operations  $147,820   $44,783 
Gross margin (2)   40%   27%
Operating income  $128,013   $34,766 
Net income  $59,762   $23,976 
Net income attributable to equity holders of SSR Mining  $52,980   $23,976 
Basic attributable net income per share  $0.24   $0.19 
Adjusted attributable net income (1)  $102,378   $24,026 
Adjusted basic attributable net income per share (1)  $0.47   $0.19 
           
Cash generated by operating activities  $145,221   $64,136 
Cash used in investing activities  $(68,053)  $(49,361)
Cash used in financing activities  $(71,788)  $(119,447)
           
Operating Results          
Gold produced (oz)   170,149    87,968 
Gold sold (oz)   173,370    85,742 
Silver produced ('000 oz)   1,792    1,770 
Silver sold ('000 oz)   2,038    1,834 
Lead produced ('000 lb) (4)   6,164    5,536 
Lead sold ('000 lb) (4)   6,432    6,407 
Zinc produced ('000 lb) (4)   3,079    1,821 
Zinc sold ('000 lb) (4)   956    2,166 
           
Gold equivalent produced (oz) (5)   196,094    107,331 
Gold equivalent sold (oz) (5)   201,494    104,715 
           
Average realized gold price ($/oz sold)  $1,798   $1,597 
Average realized silver price ($/oz sold)  $26.02   $17.47 
           
Cash cost per gold equivalent ounce sold (1, 5)  $665   $824 
AISC per gold equivalent ounce sold (1, 5)  $1,004   $1,261 
           
Financial Position   March 31, 2021    December 31, 2020 
Cash and cash equivalents  $866,029   $860,637 
Current assets  $1,438,393   $1,424,522 
Total assets  $5,273,127   $5,244,986 
Current liabilities  $238,404   $248,933 
Total liabilities  $1,308,124   $1,305,083 
Working capital (3)  $1,199,989   $1,175,589 

 

(1)The Company reports non-GAAP financial measures including adjusted attributable net income, adjusted basic attributable net income per share, cash costs and AISC per ounce sold to manage and evaluate its operating performance at its mines. See "Non-GAAP Financial Measures" in Section 13.
(2)Gross margin is defined as income from mine operations divided by revenue.
(3)Working capital is defined as current assets less current liabilities.
(4)Data for lead production and sales relate only to lead in lead concentrate. Data for zinc production and sales relate only to zinc in zinc concentrate.
(5)Gold equivalent ounces have been established using the average realized metal prices per ounce of precious metals sold in the period and applied to the recovered silver metal content produced by the mines. Zinc and lead production are not included in gold equivalent ounces produced.

 

 

SSR Mining Inc

MD&A Q1 2021 | 9

 

6.RESULTS OF OPERATIONS

 

Çöpler, Turkey

(amounts presented on 100% basis)

 

   Three months ended March 31
Operating Data  2021  2020 (1)  Change
Gold produced - oxide (oz)   24,745    25,063    (1)%
Gold produced - sulfide (oz)   53,733    62,800    (14)%
Total gold produced (oz)   78,478    87,863    (11)%
Gold sold (oz)   82,502    89,604    (8)%
                
Ore mined - oxide (kt)   818    542    51%
Ore mined - sulfide (kt)   2,189    4    N/M 
Total material mined (kt)   6,689    5,289    26%
Waste removed (kt)   3,683    4,743    (22)%
Strip ratio   1.2    8.7    (86)%
                
Ore stacked - oxide (kt)   941    539    75%
Gold grade stacked - oxide (g/t)   1.29    1.31    (2)%
                
Ore processed - sulfide (kt)   580    497    17%
Gold grade processed - sulfide (g/t)   3.32    4.04    (18)%
Gold recovery - sulfide (%)   90.8    92.0    (1)%
                
Average realized gold price ($/oz sold)  $1,811   $1,588    14%
                
Cash costs ($/oz gold sold) (2, 3)  $580   $586    (1)%
AISC ($/oz gold sold) (2, 3)  $743   $700    6%
                
Financial Data ($000s)               
Revenue  $151,522    N/A    N/A 
Production costs  $66,028    N/A    N/A 
Depletion and depreciation  $31,072    N/A    N/A 
Income from mine operations  $54,422    N/A    N/A 
Exploration and evaluation expenses  $2,840    N/A    N/A 
Capital expenditures  $13,918    N/A    N/A 

 

(1)The operating data presented in this column includes operating results for Çöpler for the three months ended March 31, 2020. As the Company was not entitled to the economic benefits of Çöpler prior to the acquisition, financial data for the periods prior to September 16, 2020 are not provided.
(2)The Company reports the non-GAAP financial measures of cash costs and AISC per ounce of gold sold to manage and evaluate operating performance at Çöpler. For further information, please refer to “Non-GAAP Financial Measures” in Section 13.
(3)Cash costs and AISC per ounce of gold sold exclude the impact of any fair value adjustment on acquired inventories as at the date of the Company's acquisition of Alacer.

 

First Quarter 2021 Operating and Financial Results

 

Production

 

Production at Çöpler was better than planned for the first quarter of 2021. Çöpler produced 78,478 ounces of gold, which included 24,745 ounces of gold production from the Çöpler oxide plant and 53,733 ounces of gold production from the sulfide plant. The scheduled 14 day shutdown of autoclave number 1 was delayed from late March and subsequently completed between April 5 and April 19, 2021.

 

For the three months ended March 31, 2021, oxide ore tonnes mined were 0.8 million, in-line with the mine plan. The oxide ore mined grade was 1.36 g/t. Sulfide ore tonnes mined were 2.2 million, and the total waste tonnes mined were 3.7 million, in-line with the mine plan.

 

  

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MD&A Q1 2021 | 10

 

For the three months ended March 31, 2021, the sulfide plant treated 0.6 million tonnes of sulfide ore. The sulfide plant continued to operate efficiently above design throughput of 245 dry tonnes per hour ("dtph"), averaging 279 dtph through the autoclaves for the first quarter of 2021. Plant gold recovery averaged 91% for the three months ended March 31, 2021. Recovery improvement projects planned for the first quarter of 2021 have been delayed due to international COVID restrictions but remain a focus for the second quarter of 2021.

 

The commissioning of the flotation circuit remains on schedule, with commissioning expected in June 2021 and in operation beginning in July 2021. Steel structures, platforms, walkways, and pipe racks were completed in March and equipment installation and electrical and control systems work started on schedule.

 

The impact of COVID-19 was limited during the first quarter of 2021 as teams have managed roster breaks, leave and quarantine requirements to maintain adequate staffing numbers.

 

Revenue

 

Revenue for the first quarter of 2021 was $151.5 million as 82,502 ounces of gold were sold at an average realized gold price of $1,811 per ounce.

 

Gold ounces sold in the first quarter of 2021 were higher than production due to the timing of gold pours at December 31, 2020.

 

Operating Costs

 

Cash costs and AISC per ounce of gold sold are non-GAAP financial measures. Please see the discussion under "Non-GAAP Financial Measures" in Section 13.

 

Unit operating costs remained stable and were slightly below plan. The impact of fair value adjustments on acquired inventories and mineral interests are reflected in production costs and depletion and depreciation, respectively. These impacts have been removed in the calculation of cash costs and AISC per ounce of gold sold (refer to Section 13).

 

In the first quarter of 2021, cash costs per ounce of gold sold were $580. Cash costs were impacted by the timing of a maintenance shutdown which was rescheduled from March to April 2021. AISC per ounce of gold sold was $743, which was impacted by lower cash costs and capital expenditures compared to plan. Construction of the tailings storage facility phases 3 and 4 is advancing ahead of operational requirements using stockpiled material from 2020.

 

 

SSR Mining Inc

MD&A Q1 2021 | 11

 

Marigold, USA

 

 

   Three months ended March 31,
Operating Data  2021  2020 Change
Gold produced (oz)   67,936    58,448   16%
Gold sold (oz)   65,090    58,028   12%
               
Total material mined (kt)   23,763    20,259   17%
Waste removed (kt)   18,051    15,255   18%
Total ore stacked (kt)   5,711    5,004   14%
Gold stacked grade (g/t)   0.41    0.30   37%
Strip ratio   3.2    3.0   7%
               
Average realized gold price ($/oz sold)  $1,787   $1,588   13%
               
Cash costs ($/oz gold sold) (1)  $796   $824   (3)%
AISC ($/oz gold sold) (1)  $1,276   $1,266   1%
               
Financial Data ($000s)              
Revenue  $115,973   $92,081   26%
Production costs  $51,955   $47,771   9%
Depletion and depreciation  $14,293   $11,853   21%
Income from mine operations  $49,725   $32,457   53%
Exploration and evaluation expenses  $407   $732   (44)%
Capital expenditures  $30,694   $25,196   22%

 

(1)The Company reports the non-GAAP financial measures of cash costs and AISC per ounce of gold sold to manage and evaluate operating performance at Marigold. For further information, please refer to “Non-GAAP Financial Measures” in Section 13.

 

First Quarter 2021 Operating and Financial Results

 

Production

 

In the first quarter of 2021, 23.8 million tonnes of material were mined, a 17% increase compared to the first quarter of 2020. The increases are attributable to shorter haulage cycles, coupled with stronger haul truck utilization and increased loading fleet capacities.

 

During the first quarter of 2021, 5.7 million tonnes of ore was stacked at a gold grade of 0.41 g/t. This compares to

5.0 million tonnes of ore stacked at a gold grade of 0.30 g/t in the first quarter of 2020. The higher grades delivered in the first quarter of 2021 as compared to the first quarter 2020 are associated with the planned mining of the higher-grade portions of Mackay 4, Mackay 6 and Mackay 8. In the first quarter of 2020, mining activities focused on the lower grade portions of Mackay 4 and stripping of Mackay 6 and Mackay 8.

 

Marigold produced 67,936 ounces of gold, an increase of 16% compared to the first quarter of 2020. Given the current high stack elevation on the leach pad, a significant portion of production within the first quarter is tied to ounce placement from the previous quarter.

 

Revenue

 

Revenue increased by 26% to $116.0 million in the first quarter of 2021 compared to the first quarter of 2020, due to a 13% increase in the average realized gold price and 12% more ounces sold.

 

Gold ounces sold in the first quarter were lower than production due to the timing of gold pours at March 31, 2021.

 

 

SSR Mining Inc

MD&A Q1 2021 | 12

 

Operating Costs

 

Cash costs and AISC per ounce of gold sold are non-GAAP financial measures. Please see the discussion under "Non-GAAP Financial Measures" in Section 13.

 

Cash costs per ounce of gold sold for the first quarter of 2021 were $796, a 3% decrease compared to the first quarter of 2020, primarily due to lower unit costs coming out of inventory, partially offset by higher unit royalty costs due to higher gold prices.

 

In the first quarter of 2021, AISC per ounce of gold sold was $1,276, in-line with the first quarter of 2020. Higher capital expenditures were partially offset by lower cash costs. Capital expenditures were higher in the first quarter of 2021 due to the purchase of two haul trucks in 2021 compared to one haul truck in 2020.

 

 

Seabee, Canada

 

 

   Three months ended March 31,
Operating Data  2021  2020 Change
Gold produced (oz)   23,735    29,521   (20)%
Gold sold (oz)   25,778    27,714   (7)%
               
Total ore milled (t)   89,644    89,282   —  %
Ore milled per day (t/day)   966    981   (2)%
Gold mill feed grade (g/t)   8.45    10.34   (18)%
Gold recovery (%)   98.3    98.1   —  %
               
Average realized gold price ($/oz sold)  $1,780   $1,615   10%
               
Cash costs ($/oz sold) (1)  $623   $544   15%
AISC ($/oz sold) (1)  $1,116   $975   14%
               
Financial Data ($000s)              
Revenue  $45,707   $44,697   2%
Production costs  $16,742   $15,048   11%
Depletion and depreciation  $9,622   $9,918   (3)%
Income from mine operations  $19,343   $19,731   (2)%
Exploration and evaluation expenses  $2,795   $2,437   15%
Capital expenditures  $12,895   $12,094   7%

 

(1) The Company reports the non-GAAP financial measures of cash costs and AISC per ounce of gold sold to manage and evaluate operating performance at Seabee. For further information, please refer to “Non-GAAP Financial Measures” in Section 13.

 

First Quarter 2021 Operating and Financial Results

 

Production

 

During the first quarter of 2021, production was in-line with plan. Seabee produced 23,735 ounces of gold, a 20% decrease compared to the first quarter of 2020. Mill feed grade was 8.45 g/t gold during the first quarter of 2021, an 18% decrease compared to the first quarter of 2020, due to mining in lower productivity areas, as planned.

 

 

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MD&A Q1 2021 | 13

 

Revenue

 

Revenue increased by 2% in the first quarter of 2021 compared to the first quarter of 2020 as a result of an average 10% increase in the realized gold price, offset partially by a 7% decrease in gold ounces sold.

 

Gold ounces sold in the first quarter of 2021 were higher than production due to the timing of shipments of gold on carbon fines and inventory from the gold pour on December 31, 2020.

 

Operating Costs

 

Cash costs and AISC per ounce of gold sold are non-GAAP financial measures. Please see the discussion under "Non-GAAP Financial Measures" in Section 13.

 

In the first quarter of 2021, cash costs per ounce of gold sold were $623, a 15% increase compared to the first quarter of 2020, due to higher costs for mine operating supplies and services, COVID-19 mitigation measures and less gold sold.

 

In the first quarter of 2021, AISC per ounce of gold sold was $1,116, a 14% increase compared to the first quarter of 2020, due to higher cash costs. Capital expenditures in the first quarter of 2021 related mainly to the replacement of drilling and haulage equipment.

 

 

SSR Mining Inc

MD&A Q1 2021 | 14

 

Puna, Argentina

 

 

   Three months ended March 31,
Operating Data  2021  2020 Change
Silver produced ('000 oz)   1,792    1,770   1%
Silver sold ('000 oz)   2,038    1,834   11%
Lead produced ('000 lb) (1)   6,164    5,536   11%
Lead sold ('000 lb) (1)   6,432    6,407   —  %
Zinc produced ('000 lb) (1)   3,079    1,821   69%
Zinc sold ('000 lb) (1)   956    2,166   (56)%
               
Total material mined (kt)   2,234    1,953   14%
Waste removed (kt)   1,994    1,674   19%
Strip ratio   8.3    6.0   38%
               
Ore milled (kt)   383    340   13%
Silver mill feed grade (g/t)   154    170   (9)%
Lead mill feed grade (%)   0.83    0.81   2%
Zinc mill feed grade (%)   0.61    0.44   39%
Silver recovery (%)   94.6    95.3   (1)%
Lead recovery (%)   87.8    91.4   (4)%
Zinc recovery (%)   59.4    55.0   8%
               
Average realized silver price ($/oz)  $26.02   $17.47   49%
               
Cash costs ($/oz silver sold) (2)  $9.41   $13.49   (30)%
AISC ($/oz silver sold) (2)  $13.98   $16.52   (15)%
               
Financial Data ($000s)              
Revenue  $53,282   $27,685   92%
Production costs  $22,767   $28,226   (19)%
Depreciation and depletion  $6,185   $6,864   (10)%
Income (loss) from mine operations  $24,330   $(7,405)  429%
Exploration, evaluation and reclamation expense  $19   $150   (87)%
Capital expenditures  $7,193   $4,822   49%

 

(1)Data for lead production and sales relate only to lead in lead concentrate. Data for zinc production and sales relate only to zinc in zinc concentrate.
(2)The Company reports the non-GAAP financial measures of cash costs and AISC per ounce of silver sold to manage and evaluate operating performance at Puna. For further information, please refer to “Non-GAAP Financial Measures” in Section 13.

 

First Quarter 2021 Operating and Financial Results

 

Production

 

During the first quarter of 2021, Puna produced 1.8 million ounces of silver, a 1% increase compared to the first quarter of 2020, due to higher tonnage milled at lower grades. Lead and zinc production increased 11% and 69% respectively, due to higher metal feed grades, with a significant increase in zinc recovery due to grinding circuit improvements. Ore milled was 0.4 million tonnes, a 13% increase compared to the first quarter of 2020 due to an increase in throughput and shorter shutdowns for scheduled maintenance. Processed ore contained an average silver grade of 154 g/t, a 9% decrease compared to the first quarter of 2020, which was generally in-line with the mine plan. The mill averaged approximately 4,511 tonnes per day during the first quarter of 2021, demonstrating steady improved plant performance.

 

 

SSR Mining Inc

MD&A Q1 2021 | 15

 

Revenue

 

Revenue increased by 92% in the first quarter of 2021 compared to the first quarter of 2020, due to a 49% increase in the average realized silver price and an 11% increase in silver ounces sold. Silver ounces sold in the first quarter of 2021 were higher than production due to the timing of concentrate shipments at December 31, 2020.

 

Operating Costs

 

Cash costs and AISC per ounce of silver sold are non-GAAP financial measures. Please see the discussion under "Non-GAAP Financial Measures" in Section 13.

In the first quarter of 2021, cash costs per ounce of silver sold were $9.41, a decrease of 30% compared to the first quarter of 2020 due to lower costs and higher silver sales. In addition, during 2021, no inventory write-downs to net realizable value occurred in the first quarter as compared to the first quarter of 2020, where lower silver prices drove a $7.2 million write-down.

 

AISC per ounce of silver sold was $13.98, a decrease of 15% compared to the first quarter of 2020 due to the lower cash costs and higher sales, partially offset by higher capital expenditures, driven by higher stripping activity during the first quarter of 2021.

 

7.EXPLORATION AND DEVELOPMENT

 

The Company holds a portfolio of prospective exploration tenures across Turkey, the USA, Canada, Mexico and Peru both near or adjacent to the existing operations (near-mine) and greenfield standalone prospects. The Company continues exploring both near-mine and greenfield prospects with a focus on the near-mine targets. Near- mine expansion projects can leverage existing mine infrastructure and capability to generate lower cost, faster development opportunities.

 

Çöpler District Exploration

 

A primary focus in the Çöpler District is to fast-track exploration of oxide ore to take advantage of spare oxide plant capacity. Exploration expenditures in 2021 are estimated at $33 million, with a primary focus on Ardich Mineral Resource expansion and conversion, Çöpler Saddle, Mavialtin, C2 copper-gold exploration, and Çöpler District Master Plan 2020 ("CDMP20") development. The 2021 program is planning to employ 7 core drill rigs within the Ardich area and 3 core drill rigs within the Çöpler area.

 

In the first quarter of 2021, the drilling campaign recommenced for Çöpler, including the Saddle target and Ardich. During the first quarter of 2021, the Company completed 4,266 meters of core drilling in Ardich and 988 meters of core drilling in Çöpler, in line with the 2021 drilling program planned rates and target areas.

 

The Çöpler in-pit oxide ore generation program is ongoing in three target areas to determine further mineralization at the current pit boundaries, with additional infill drilling completed in the Manganese pit area during the quarter. The drill program also focused on step-out potential of the untested zones located around the western part of the main pit for the copper exploration. Drilling at the Saddle has commenced to confirm the strike and extent of the mineralization. The study team at C2 are evaluating options to leverage value from the copper mineralization.

 

During the first quarter of 2021, drilling in Ardich was a combination of infill and step-out drilling in the Main, West and Southwest areas where the resource is open for further extended mineralization. First assay results of the Ardich 2021 drilling campaign are promising and consistent with previous drilling results.

 

 

SSR Mining Inc

MD&A Q1 2021 | 16

 

7. EXPLORATION AND DEVELOPMENT (continued)

 

 

Figure A: Çöpler including the Saddle target drilling locations for 2021 drill program

 

Marigold Exploration

 

Total exploration expenditures at Marigold in 2021 are estimated at $18 million, targeting oxide Mineral Resource additions and conversion at Mackay, Valmy, New Millennium, and Trenton Canyon. Growth exploration expenditures also include studies and test work at Trenton Canyon and Buffalo Valley. Figure C indicates the target zones for the Marigold property 2021 drilling program.

 

In the first quarter of 2021, Marigold exploration drilled 24,464 meters, primarily in the Mackay North and New Millennium areas. The objective of Mackay North drilling is to increase the confidence of the estimated gold values in areas with widely spaced drilling. This work also included two HQ core holes in the H1 area for metallurgical purposes. Drilling in the New Millennium area focused on East Basalt, but included drill holes in Section Six and Lil’ Gun. Drilling in East Basalt further defined the potential pit boundary and showed promising results of an expanded shallow oxide zone. The assay results for the Section Six and Lil’ Gun drill targets are still pending.

 

In addition, during the first quarter of 2021, the 2021 Trenton Canyon disturbance request was submitted to the Bureau of Land Management ("BLM") for approval. The Trenton Canyon and Buffalo Valley drilling programs, including major milestones and timeline, were finalized. A positive response from the BLM is anticipated by May 2021; however, drilling will begin in the second quarter of 2021 from existing disturbance as soon as weather conditions allow. A soil and rock geochemistry program has been implemented in the area to follow up on anomalous results. Results of these collaborative efforts have implications for both near mine and greenfield exploration.

 

For 2021, 71,450 meters of RC and core drilling are planned targeting resource and reserve growth at Valmy, East Basalt, Section 6, Trenton Canyon, and Buffalo Valley. This work also includes a small amount of diamond drilling to explore for higher-grade, structurally controlled deposits.

 

 

SSR Mining Inc

MD&A Q1 2021 | 17

 

7. EXPLORATION AND DEVELOPMENT (continued)

 

 

Figure B: Overview of Marigold’s active exploration and development areas

 

Canada Exploration

 

The Company controls two separate claim groupings in Saskatchewan, Canada: Seabee and the Amisk project, which is located 140 kilometers southeast of Seabee. Total exploration expenditures in 2021 are estimated at $7 million, with a focus on the conversion of the Gap Hanging Wall ("Gap HW") Mineral Resource, as well as the Seabee and Fisher exploration and resource development.

 

In the first quarter of 2021, Seabee exercised its option to acquire an additional 20% interest in the Fisher property, bringing its joint venture interest to 80%.

 

 

SSR Mining Inc

MD&A Q1 2021 | 18

 

7.EXPLORATION AND DEVELOPMENT (continued)

 

For the Resource Development function at the Seabee Gold Operation, the focus of drilling efforts for the first quarter of 2021 remained primarily on infill and extension drilling of the Gap HW, as well as exploring the prospective Santoy Hanging Wall ("Santoy HW") target for additional, near term inferred resources. The Company commenced drilling from two new underground chambers in the mine. The first is on 23 level which provides an excellent location to further explore for additional mineralized chutes on the Santoy HW trend. The second chamber is situated deeper in the mine at 49 level and allows for possible down-plunge extensions of the Santoy 8 zone which has been the mainstay of Seabee's production over the past several years. The development of a future chamber commenced on 52 level which is expected to allow for the exploration of the Santoy 9 zone below current resources with completion scheduled during the third quarter of 2021.

 

During the first quarter of 2021, activities in the Gap HW included the completion of a tightly spaced definition drilling program from the excavation on 46 level. The information obtained from this drill program will be used to make refinements to the current block model and provide engineering with additional information for stope design and planning purposes. Additionally, the development of another sub-level to allow access to the Gap HW on 44 level. The purpose of the second level is to prove vertical grade continuity and provide access to conduct further tight spaced drilling. Once this second level is in place, it will allow for the mining of test stopes to be processed as a bulk sample in the mill. The outcome of these test stopes will be the driver for further potential reserve conversion of the Gap HW resource.

 

During the first quarter of 2021, 9,011 meters were drilled underground and an additional 8,096 meters from surface, for a combined total of 17,107 meters cored, in-line with target and budget for meters drilled for the quarter.

 

Drilling at the Joker target (Seabee) was aimed to expand the known extent of visible gold-bearing quartz veining along strike. Significant quartz veining was encountered in some holes completed and the most significant veins were observed in the most northern hole approximately 400 meters north of the high-grade drill intercepts from the 2020 drill programs. These veins correlate with known high-grade drill intercepts within the mine complex hosted within the Lizard Lake Pluton. Drilling at the Mac North target (Fisher property) targeted well-developed structures and vein continuity.

 

 

Figure C: Overview of Seabee's active exploration and development areas

 

 

SSR Mining Inc

MD&A Q1 2021 | 19

 

8.MINERAL RESERVES AND MINERAL RESOURCES

 

On March 30, 2021, the Company reported its updated Mineral Reserves and Mineral Resources as of December 31, 2020. The update reflects increases of 5% and 14% in the Company's Mineral Reserves and Mineral Resources, respectively, as compared to the December 31, 2019 combined results for SSR Mining and Alacer pre- merger. The increase in Mineral Reserves was driven primarily by additions at Çöpler, while the increase in Mineral Resources was driven by increases at Marigold and in the Çöpler District.

 

At year-end 2020, total estimated gold and silver Mineral Reserves were 8.0 million ounces and 52.4 million ounces compared to 7.7 million ounces and 57.5 million ounces, respectively at year-end 2019 (combined SSR Mining and Alacer results pre-merger). Importantly, Measured and Indicated Gold Mineral Resources categories increased 14%, with gold in Measured and Indicated Mineral Resources of 15.0 million ounces (27.0 million gold-equivalent ounces) resulting from increases at Marigold and in the Çöpler District.

 

 

At year-end 2020, total estimated gold and silver Measured and Indicated Mineral Resources were 15.0 million ounces and 658.5 million ounces compared to 13.2 million ounces and 664.2 million ounces, respectively, for the year-end 2019 (combined SSR Mining and Alacer results pre-merger).

 

The updated Mineral Reserves and Mineral Resources reflect the following:

In the Çöpler District, gold Mineral Reserves increased 17% to 3.8 million ounces and gold Measured and Indicated Mineral Resources increased 20% to 7.2 million ounces. Inclusion of results from the large drilling program at Ardich in the Çöpler District resulted in additions as outlined in the CDMP20.
At Marigold, gold Indicated Mineral Resources increased 9% to 5.4 million ounces compared to 4.9 million ounces at year-end 2019, driven by increases at Mackay, Red Dot, New Millennium, Crossfire and Valmy.
At Seabee, gold Mineral Reserves were largely replaced for the year, despite a limited exploration program due to COVID-19. The Gap HW Mineral Resources remain a key focus area for conversion to Mineral Reserves in 2021.

 

Mineral Reserves estimates for Çöpler, Marigold, Seabee and Puna have been determined based on prices of

$1,350 per ounce of gold and $18.50 per ounce of silver (December 31, 2019 - $1,250 per ounce of gold and

$18.00 per ounce of silver). Mineral Resources estimates have been determined based on prices of $1,750 per ounces of gold and $22.00 per ounce of silver (December 31, 2019 - $1,400 per ounce of gold and $20.00 per ounce of silver). Mineral Resources reported are inclusive of Mineral Reserves.

 

For further information regarding the Company's Mineral Reserves and Mineral Resources updates, see the news release dated March 30, 2021.

 

 

SSR Mining Inc

MD&A Q1 2021 | 20

 

9.FINANCIAL RESULTS

 

The following table sets out selected financial results and data for each of the eight most recently completed quarters, expressed in millions of US dollars, except for per share, per ounce and Turkish lira ("TRY"), Argentine peso ("ARS") and Canadian dollar ("CAD") rate amounts:

 

   Q1 2021  Q4 2020  Q3 2020  Q2 2020  Q1 2020  Q4 2019  Q3 2019  Q2 2019
Revenue  $366.5   $370.7   $225.4   $92.5   $164.5   $177.6   $147.8   $155.1 
Income from mine operations  $147.8   $146.5   $83.2   $34.2   $44.8   $58.9   $51.9   $29.8 
Gross margin (1)   40%   40%   37%   37%   27%   33%   35%   19%
Income (loss) before income tax  $117.9   $110.7   $49.2   $(8.5)  $30.0   $31.1   $33.0   $13.1 
Net income (loss)  $59.8   $97.7   $25.1   $(6.3)  $24.0   $19.5   $18.1   $12.4 
Attributable net income (loss) to equity holders of SSR Mining  $53.0   $89.0   $26.8   $(6.3)  $24.0   $19.5   $20.7   $10.6 
                                         
Basic attributable net income (loss) per share  $0.24   $0.41   $0.19   $(0.05)  $0.19   $0.16   $0.17   $0.09 
Diluted attributable net income (loss) per share  $0.24   $0.39   $0.19   $(0.05)  $0.19   $0.16   $0.17   $0.09 
                                         
Gold equivalent ounces sold (2)   201,494    194,862    115,312    51,559    104,715    114,268    95,112    112,022 
                                         
Average realized gold price ($/oz) (3)  $1,798   $1,880   $1,914   $1,722   $1,597   $1,480   $1,480   $1,314 
Average realized silver price ($/oz) (3)  $26.02   $24.78   $26.69   $15.45   $17.47   $17.32   $17.31   $14.92 
                                         
Average FX rate TRY per 1 USD   7.36    7.89    7.21    6.85    6.09    5.80    5.68    5.87 
Average FX rate ARS per 1 USD   88.60    80.05    73.33    67.68    61.50    59.39    50.54    43.96 
Average FX rate CAD per 1 USD   1.27    1.30    1.33    1.39    1.34    1.32    1.32    1.34 
                                         
Cash and cash equivalents  $866.0   $860.6   $733.6   $461.7   $398.4   $503.6   $474.5   $452.2 
Total assets  $5,273.1   $5,245.0   $5,081.1   $1,634.7   $1,612.0   $1,750.1   $1,688.4   $1,650.2 
Working capital (4)  $1,200.0   $1,175.6   $1,007.9   $662.9   $646.6   $665.5   $636.3   $599.7 
Non-current liabilities  $1,069.7   $1,056.2   $1,046.0   $394.7   $377.3   $382.0   $374.7   $370.2 

 

(1)Gross margin is defined as income from mine operations divided by revenue.

(2)Gold equivalent ounces have been established using the average realized metal prices per ounce of precious metals sold in the period and applied to the recovered silver metal content produced by the mines. Zinc and lead production are not included in gold equivalent ounces produced.

(3)The Company reports the non-GAAP financial measures of average realized metal prices per ounce of precious metals sold to manage and evaluate operating performance at its mines. For a better understanding of these measures, please refer to “Non-GAAP Financial Measures” in Section 13.

(4) Working capital is defined as current assets less current liabilities.

 

The volatility in revenue over the past eight quarters has resulted from variable precious metals prices, which are not under the Company's control, sales volumes and the acquisition of Çöpler. There are no significant seasonal fluctuations in the results for the presented periods. Over the past eight quarters, average realized gold prices have ranged between $1,314 and $1,914 per ounce and average realized silver prices have ranged between $14.92 and $26.69 per ounce. Sales volumes have benefited from generally increasing production at Seabee and normal production variations at Marigold due to its nature as a run-of-mine heap leach operation. During the second quarter of 2020, as a result of the temporary suspensions at Seabee and Puna in response to the COVID-19 pandemic, sales volumes decreased significantly, negatively impacting revenue. During the third and fourth quarters of 2020, revenue was positively impacted by the acquisition of Alacer Gold Corp. which added gold sales at Çöpler.

 

 

SSR Mining Inc

MD&A Q1 2021 | 21

 

REVIEW OF FIRST QUARTER FINANCIAL RESULTS

 

Three months ended March 31, 2021, compared to the three months ended March 31, 2020

(expressed in thousands of USD, except for per share amounts)

 

Net income attributable to SSR Mining shareholders for the three months ended March 31, 2021 was $53.0 million ($0.24 per share), compared to net income of $24.0 million ($0.19 per share) for the three months ended March 31, 2020. The following is a summary and discussion of the significant components of income and expenses recognized during the three months ended March 31, 2021 compared to the same period in the prior year.

 

   Three months ended March 31,
   2021  2020
Revenue  $366,484   $164,463 
Cost of sales          
Production costs   (157,492)   (91,045)
Depletion and depreciation   (61,172)   (28,635)
    (218,664)   (119,680)
Income from mine operations   147,820    44,783 
General and administrative expense   (11,867)   (5,893)
Share-based compensation recovery   4,507    3,568 
Exploration, evaluation and reclamation expense   (7,955)   (6,362)
Care and maintenance expense   —      (1,330)
Transaction and integration expense   (4,492)   —   
Operating income   128,013    34,766 
Interest and other finance income   470    2,397 
Interest expense and other finance costs   (7,945)   (6,966)
Other expense   (2,180)   (1,380)
Foreign exchange (loss) gain   (424)   1,158 
Income before income tax   117,934    29,975 
Income tax expense   (58,172)   (5,999)
Net income  $59,762   $23,976 
           
Attributable to:          
Equity holders of SSR Mining  $52,980   $23,976 
Non-controlling interest   6,782    —   
   $59,762   $23,976 

 

          

Revenue

 

Revenue increased by $202.0 million, or 123%, to $366.5 million for the three months ended March 31, 2021, compared to $164.5 million in the comparative period of 2020. The increase was mainly due to $151.5 million in gold sales at Çöpler for the first quarter of 2021, in addition to higher gold sales at Marigold and higher silver sales at Puna. Gold sales at Marigold were $23.9 million, or 26%, higher due to a 13% increase in the average realized gold price and a 12% increase in the volume of gold ounces sold. Silver sales at Puna were $25.6 million, or 92% higher due to a 49% increase in the average realized silver price and an 11% increase in the volume of silver ounces sold.

 

 

SSR Mining Inc

MD&A Q1 2021 | 22

 

Production costs

 

Production costs increased by $66.4 million, or 73%, to $157.5 million for the three months ended March 31, 2021, compared to $91.0 million in the comparative period of 2020. The increase in production costs was mainly due to $66.0 million in production costs at Çöpler, which includes $16.1 million of fair value adjustments on inventories acquired that were subsequently processed and sold. Production costs were 9% higher at Marigold mainly due to 12% higher gold sales volumes. Production costs were 11% higher at Seabee mainly due to higher unit costs, driven by 20% lower gold production and costs associated with COVID-19. Production costs were 19% lower at Puna mainly due to lower unit costs, driven by higher plant throughput and lower mine maintenance costs, coupled with no write-downs of inventory to net realizable value in the first quarter of 2021 as compared to the first quarter of 2020, where lower silver prices drove a $7.2 million write-down.

 

Depletion and depreciation

    
Three months ended March 31,  2021  2020 Change
Depletion and depreciation ($000s)  $61,172  $28,635   114%
Gold equivalent ounces sold   201,494    104,715   92%
Depletion and depreciation per gold equivalent ounce sold  $304  $273   11%

 

Depletion and depreciation costs increased by $32.5 million, or 114%, to $61.2 million for the three months ended March 31, 2021 compared to $28.6 million for the comparative period of 2020. The increase in depreciation and depletion costs was mainly due to $31.1 million in depletion and depreciation at Çöpler.

 

General and administrative expense

 

General and administrative expense for the three months ended March 31, 2021 was $11.9 million compared to $5.9 million for the comparative period of 2020. The increase in general and administrative expense is primarily related to a larger combined organization following the acquisition of Alacer, that covers more locations and jurisdictions. Further, the insurance market has hardened this year and the Company is experiencing increased rates as a result of the pricing change in the market.

 

Share-based compensation recovery

 

Share-based compensation recovery for the three months ended March 31, 2021 was $4.5 million compared to $3.6 million for the comparative period of 2020. Share-based compensation recovery increased primarily due a recovery related to Alacer's share based compensation units that were replaced with SSR Mining units in connection with the acquisition of Alacer, in addition to an increase in cash-settled share-based compensation recovery as a result of a larger decrease in SSR Mining's common share price during the first quarter of 2021 compared to the comparative period of 2020.

 

Exploration, evaluation and reclamation expense

 

Exploration, evaluation and reclamation expenses for the three months ended March 31, 2021 were $8.0 million compared to $6.4 million for the comparative period of 2020. The expenditures incurred during the first quarter of 2021 mainly related to greenfield exploration work at Çöpler, Marigold and Seabee. The expenditures incurred during the first quarter of 2020 mainly related to greenfield exploration work performed at Trenton Canyon and Seabee.

 

Transaction and integration expenses

 

Transaction and integration expenses for the three months ended March 31, 2021 were $4.5 million compared to nil for the comparative period of 2020. These costs are associated with the acquisition of Alacer.

 

SSR Mining Inc

MD&A Q1 2021 | 23

 

Interest expense and other finance costs

 

Three months ended March 31,  2021  2020
Interest expense on debt  $5,264   $4,878 
Interest expense on leases   1,088    75 
Accretion of reclamation and closure cost provision   908    946 
Other   685    1,067 
   $7,945   $6,966 

 

Interest expense and other finance costs for the three months ended March 31, 2021 were $7.9 million compared to $7.0 million for the comparative period of 2020. The increase in interest expense is mainly due to interest on the Air Liquide oxygen plant lease at Çöpler as the increase in interest expense associated with the Term Loan after the acquisition of Alacer was mostly offset by the decrease in interest expense associated with the redemption of the Company's 2013 convertible notes in the first quarter of 2020.

 

Foreign exchange (loss) gain

 

Foreign exchange loss for the three months ended March 31, 2021 was $0.4 million compared to a foreign exchange gain of $1.2 million for the comparative period of 2020. The Company's main foreign exchange exposures are related to net monetary assets and liabilities denominated in ARS, CAD and TRY. During the three months ended March 31, 2021, the foreign exchange loss was mainly due to a weakening of the ARS against the USD and its impact on ARS-denominated assets at Puna, partially offset by a weakening of the TRY against the USD and its impact on TRY-denominated liabilities at Çöpler. During the three months ended March 31, 2020, the foreign exchange gain was mainly due to a weakening of the CAD against the USD and its impact on CAD-denominated liabilities at Seabee.

 

Income tax expense

 

Income tax expense for the three months ended March 31, 2021 was $58.2 million compared to $6.0 million for the comparative period of 2020. The tax expense in the first quarter of 2021 was a result of profitable operations at all of the Company's mines, as well as gold and metal concentrate sales activities in Canada, partially offset by the impact of general and administrative expenses deductible in Canada. Income tax expense for the three months ended March 31, 2021 includes deferred tax expense of $33.0 million related to the impact of foreign exchange rate changes on foreign currency denominated deferred tax balances principally at Çöpler and Puna.

 

The income tax expense for the three months ended March 31, 2020 was a result of profitable operations at the Marigold and Seabee, as well as the gold and metal concentrate sales activities in Canada, partially offset by general and administrative expenses in Canada and an operating loss at Puna.

 

Other comprehensive income

 

Other comprehensive income for the three months ended March 31, 2021 was $1.7 million compared to an other comprehensive loss of $22.6 million for the comparative period of 2020. In the first quarter of 2021, the Company recognized a loss, net of tax, of $0.7 million on marketable securities compared to a loss, net of tax, of $13.5 million for the comparative period of 2020, mainly due to changes in the fair value of the Company's investment in SilverCrest Metals Inc. In addition, the Company recognized an unrealized gain on the effective portion of its derivatives, net of tax, of $2.6 million compared to an unrealized loss, net of tax, of $9.1 million for the comparative period of 2020, mainly due to changes in diesel and currency prices relative to its hedge contract prices.

 

 

SSR Mining Inc

MD&A Q1 2021 | 24

 

10.LIQUIDITY AND CAPITAL RESOURCES

 

The following table summarizes the Company's cash flow activity:

       

(figures expressed in $000s)  Three months ended March 31,
   2021  2020
Cash generated by operating activities  $145,221  $64,136 
Cash used in investing activities   (68,053)   (49,361)
Cash used in financing activities   (71,788)   (119,447)
Effect of foreign exchange rate changes on cash and cash equivalents   12    (536)
Increase (decrease) in cash and cash equivalents   5,392    (105,208)
Cash and cash equivalents, beginning of period   860,637    503,647 
Cash and cash equivalents, end of period  $866,029  $398,439 

 

Cash generated by operating activities

 

In the first quarter of 2021, cash generated by operating activities was $145.2 million compared to cash generated by operating activities of $64.1 million in the first quarter of 2020. The increase in cash generated by operating activities compared to the comparative period of 2020 is mainly due to higher income from mine operations at Çöpler, Marigold and Puna. This increase was offset partially by increases in trade receivables at Puna in the first quarter of 2021 due to the timing of concentrate sales at December 31, 2020 and increases in prepaid expenses in the first quarter of 2021 related to payments made by Seabee for purchases of equipment and supplies for delivery over the ice road.

 

Cash used in investing activities

 

In the first quarter of 2021, cash used in investing activities was $68.1 million compared to cash used in investing activities of $49.4 million in the first quarter of 2020. The increase in cash used in investing activities compared to the comparative period of 2020 is mainly due to an $8.8 million increase in plant and equipment purchases, driven by the purchase of two haul trucks at Marigold compared to one in the comparative period of 2020, as well as $4.1 million more spent on capital exploration and $2.4 million more spent on underground mine development at Seabee due to planned increase in development rates.

 

Cash used in financing activities

 

In the first quarter of 2021, cash used in financing activities was $71.8 million compared to cash used in financing activities of $119.4 million for the first quarter of 2020. In the three months ended March 31, 2021, cash used in financing activities was primarily related to $38.1 million of dividends paid to the Çöpler non-controlling interest,

$17.5 million of principal repaid on the Term Loan and $11.0 million of dividends paid to equity holders of SSR Mining. In the three months ended March 31, 2020, cash used in financing activities was primarily related to the redemption of $115.0 million of convertible notes.

 

Liquidity

 

Liquidity risk is the risk that the Company will not be able to meet its obligations associated with financial liabilities as they fall due. The Company manages its liquidity risk through a rigorous planning, budgeting and forecasting process, which is reviewed and updated on a regular basis, to help determine the funding requirements to support its current operations, expansion and development plans, and by managing its capital structure. The Company's objective is to ensure that there are sufficient committed financial resources to meet its business requirements for a minimum of twelve months.

 

On a longer-term basis, the Company continues to focus on capital allocation and its cost reduction strategy, while also implementing various optimization activities at its operations to improve the cash generating capacity of each operation.

 

At March 31, 2021, the Company had $866.0 million of cash and cash equivalents, an increase of $5.4 million from December 31, 2020, mainly due to positive income from mine operations generated at each of the Company's operations, offset partially by financing and investing cash outflows.

 

 

SSR Mining Inc

MD&A Q1 2021 | 25

 

10.LIQUIDITY AND CAPITAL RESOURCES (continued)

 

At March 31, 2021, the Company's working capital position was $1,200.0 million, an increase of $24.4 million from

$1,175.6 million at December 31, 2020.

 

At March 31, 2021, the Company held $856.9 million of its cash and cash equivalents balance in USD. Additionally,

$1.9 million of cash and cash equivalents was held in TRY and $0.1 million was held in ARS. All cash is invested in short-term investments or high interest savings accounts under the Company's investment policy with maturities of 90 days or less, providing the Company with sufficient liquidity to meet its foreseeable needs.

 

The Company enters into contracts in the normal course of business that give rise to commitments for future minimum payments. There were no new significant commitments subsequent to December 31, 2020.

 

The Company's working capital at March 31, 2021, together with future cash flows from operations, are expected to be sufficient to fund planned activities and commitments over the next twelve months from the date of this MD&A.

 

Capital Resources

 

The Company's objectives when managing capital are to:

safeguard its ability to continue as a going concern in order to develop and operate its current projects and pursue strategic growth initiatives; and
maintain a flexible capital structure which lowers its cost of capital.

 

In assessing capital structure, the Company includes the components of shareholders’ equity, the 2019 Notes, the Term Loan and the Credit Facility. In order to facilitate the management of capital requirements, the Company prepares annual budgets and continuously monitors and reviews actual and forecasted cash flows. The annual budget is monitored and approved by the Company's Board of Directors. To maintain or adjust the capital structure, the Company may, from time to time, issue new shares or debt, repay debt or dispose of non-core assets. The Company expects its current capital resources will be sufficient to meet its business requirements for a minimum of twelve months.

 

As of March 31, 2021, the Company was in compliance with its externally-imposed financial covenants in relation to the Term Loan and Credit Facility. The Company does not have any financial covenants in relation to the 2019 Notes.

 

The Company is evaluating renewal and extension options for the Credit Facility, which is set to expire in June 2021.

 

Many interbank offer rates (IBORs) are expected to be replaced by new alternative benchmark rates in the next few years. The Company's Term Loan, Credit Facility and interest rate swap contracts are indexed to London interbank offered rates ("LIBOR") that have not yet transitioned to alternative benchmark rates at the end of the current reporting period. For the Term Loan, the Company is currently working with the syndicate of lenders to assess the potential alternatives to the use of LIBOR. For the Credit Facility and interest rate swap contracts, considering the short term to maturity of the Credit Facility, as well as the current expected timing of changes to alternative benchmark rates, the Company does not expect to transition to an alternative benchmark rate.

 

Outstanding share data

 

As at March 31, 2021, the Company had 220,062,873 common shares and 1,041,826 stock options outstanding which are exercisable into common shares at exercise prices ranging between C$7.27 and C$29.09 per share.

 

The Company's authorized capital consists of an unlimited number of common shares without par value. As at May 4, 2021, the following common shares and options were outstanding:

 

  Number of shares Exercise price Remaining life
  CAD $ (years)
Capital stock 220,213,692    
Stock options 1,018,547 7.27 - 29.09 0.08 - 6.06
Other share-based compensation awards 1,221,222   1.29 - 8.66
Fully diluted 222,453,461    

 

 

SSR Mining Inc

MD&A Q1 2021 | 26

 

11.FINANCIAL INSTRUMENTS

 

The Company is exposed to a variety of financial risks as a result of its operations, including market risk (which includes price risk, currency risk and interest rate risk), credit risk, liquidity risk and capital risk. The Company's overall risk management strategy seeks to reduce potential adverse effects on its financial performance. Risk management is carried out under policies approved by the Company's Board of Directors.

 

The Company may, from time to time, use foreign exchange contracts, commodity price contracts, equity hedges and interest rate swaps to manage its exposure to fluctuations in foreign currency, metal and energy prices, marketable securities values and interest rates. The Company does not have a practice of trading derivatives. The Company's use of derivatives is limited to specific programs to manage fluctuations in foreign exchange, diesel prices, interest rates and marketable securities risks, which are subject to the oversight of its Board of Directors.

 

The risks associated with the Company's financial instruments, and the policies on how the Company mitigates those risks are set out below. This is not intended to be a comprehensive discussion of all risks. There were no significant changes to the Company's exposures to these risks or the management of its exposures during the three months ended March 31, 2021.

a)   Market Risk

This is the risk that the fair values of financial instruments will fluctuate due to changes in market prices. The significant market risks to which the Company is exposed are price risk, currency risk and interest rate risk.

(i)Price Risk

This is the risk that the fair values or future cash flows of the Company's financial instruments will fluctuate because of changes in market prices. Income from mine operations depends on the metal prices for gold, silver, lead and zinc, and also prices of input commodities such as diesel. These prices are affected by numerous factors that are outside of the Company's control.

The Company has not hedged the price of any metal as part of its overall corporate strategy.

As the Company does not have trade receivables relating to gold sales, changes in gold prices do not impact the value of any financial instruments.

The costs relating to the Company's production activities vary depending on market prices of consumables, including diesel fuel and electricity. The Company hedges a portion of its future cash flows relating to diesel consumption through swap and option contracts within limits set under a risk management policy approved by the Board of Directors to manage exposure to fluctuations in diesel prices. In addition, due to the ice road supply at Seabee, the Company purchases annual consumable supplies in advance at prices which are generally fixed at the time of purchase, and not during the period of use.

During the first quarter of 2021, the Company did not enter into any additional diesel hedges at Marigold and Seabee. As at March 31, 2021, the Company has not hedged future anticipated diesel consumption at Çöpler or Puna. If and when it is determined to be favorable, the Company may execute additional diesel fuel hedges under its risk management policy.

(ii)Currency Risk

Currency risk is the risk that the fair values or future cash flows of the Company's financial instruments will fluctuate because of changes in foreign exchange rates. Exchange rate fluctuations affect the costs the Company incurs at its operations. Gold, silver, lead and zinc are sold in USD and the Company's costs are principally in USD, TRY, CAD and ARS. The appreciation or depreciation of foreign currencies against the USD can increase or decrease the cost of metal production and capital expenditures in USD terms. The Company is also exposed to currency risk arising from cash, cash equivalents and restricted cash held in foreign currencies, marketable securities, accounts receivable and other financial assets, trade and other payables, lease liabilities, other financial liabilities, and income and other taxes receivable (payable) denominated in foreign currencies. Further, the Company is exposed to currency risk through non-monetary assets and liabilities and tax bases of assets, liabilities and losses of entities whose taxable profit or tax loss are denominated in foreign currencies. Changes in exchange rates give rise to temporary differences resulting in a deferred tax liability or asset with the resulting deferred tax charged or credited to income tax expense, respectively.

 

 

SSR Mining Inc

MD&A Q1 2021 | 27

 

11. FINANCIAL INSTRUMENTS (continued)

a)Market Risk (continued)

 

Effective September 2, 2019, Argentina introduced new Central Bank regulations which require export proceeds to be converted into ARS within five business days of such proceeds entering the country. These provisions were intended to be temporary until December 31, 2019, however, the provisions remained in effect as at March 31, 2021. While these provisions remain in effect, the Company is unable to hold funds in Argentina in USD, which may increase its exposure to the ARS, depending on the overall cash position within the country, which is currently minimal.

(iii)Interest Rate Risk

Interest rate risk is the risk that the fair values or future cash flows of the Company's financial instruments will fluctuate because of changes in market interest rates. The Company manages interest rate risk by maintaining an investment policy for short-term investments and cash held in banks, which focuses on preservation of capital and liquidity. As at March 31, 2021, the Company is exposed to interest rate cash flow risk arising from its cash and restricted cash in bank accounts that earn variable interest rates, and interest expense on variable rate borrowings. The Company's variable rate borrowings are comprised of the Term Loan, which is subject to a variable interest rate of LIBOR plus 3.50% to 3.70%, and the Credit Facility, which is subject to a variable interest rate of LIBOR plus 2.25% to 3.75%.

Future net cash flows from interest income on cash, restricted cash, and interest expense on variable rate borrowings will be affected by interest rate fluctuations. To mitigate exposures to interest rate risk, the Company may purchase short-term investments at market interest rates that result in fixed yields to maturity.

The Company holds interest rate swaps to limit exposure to the impact of the variable LIBOR interest rate volatility. As at March 31, 2021, approximately 33% of the outstanding Term Loan balance is covered through interest rate swap contracts through the duration of the interest rate hedge program, ending in December 2021.

As at March 31, 2021, the Company is exposed to interest rate fair value risk on the 2019 Notes which is subject to a fixed interest rate. A change in interest rates would impact the fair value of the 2019 Notes. However, as the 2019 Notes are measured at amortized cost, there would be no impact on the Company's financial results.

b)Credit Risk

Credit risk is the risk that the counterparty to a financial instrument will cause a financial loss for the Company by failing to discharge its obligations under the terms of the financial contract. The Company's credit risk is limited to the following instruments:

(i)Credit risk related to financial institutions and cash deposits

Credit risk related to financial institutions and cash deposits is managed by diversifying cash and cash equivalents and restricted cash holdings among various financial institutions and by investing those holdings in diverse investment types including short term investment grade securities and money market fund holdings, including bankers’ acceptances, guaranteed investment contracts, corporate commercial paper, and United States treasury bills and notes in accordance with the Company’s investment policy. Investment objectives are primarily directed towards preservation of capital and liquidity. The investment policy provides limitations on concentrations of credit risk, credit quality, and the duration of investments, as well as minimum rating requirements for banks and financial institutions that hold the Company’s cash and cash equivalents and restricted cash.

(ii)Credit risk related to trade receivables

 

The Company is exposed to credit risk through its trade receivables on concentrate sales, which are principally with internationally-recognized counterparties. Payments of receivables are scheduled, routine and received within a contractually agreed time frame. The Company manages this risk through provisional payments of approximately 75% of the value of the concentrate shipped and through transacting with multiple counterparties.

 

 

SSR Mining Inc

MD&A Q1 2021 | 28

 

11.FINANCIAL INSTRUMENTS (continued)

b) Credit Risk (continued)

(iii)Credit risk related to other financial assets and VAT receivables

 

The Company is exposed to credit risk through its value-added tax ("VAT") receivables and other receivables that are collectible from the governments of Turkey and Argentina. With respect to VAT in Turkey, the balance is expected to be recoverable in full. With respect to VAT in Argentina, the balance is expected to be recoverable in full; however, due to legislative rules and the complex collection process, a portion of the asset is classified as non- current until government approval of the recovery claim is approved. Management monitors its exposure to credit risk on a continual basis.

 

At March 31, 2021, no amounts were held as collateral except those discussed above related to other financial assets.

 

12.RISKS AND UNCERTAINTIES

 

The mining industry involves many risks which are inherent to the nature of the business, global economic trends and economic, environmental and social conditions in the geographical areas of operation. As a result, the Company is subject to a number of risks and uncertainties, each of which could have an adverse effect on its operating results, business prospects or financial position. The Company continuously assess and evaluates these risks, seek to minimize them by implementing high operating standards and processes to identify, assess, report and monitor risk across the organization.

 

For a comprehensive list of other known risks and uncertainties affecting the business, please refer to the section entitled “Risk Factors” in the Company's most recent Annual Information Form, which is available at www.sedar.com, and the Company's most recent Annual Report on Form 40-F, which is available on the EDGAR section of the SEC website at www.sec.gov.

 

 

SSR Mining Inc

MD&A Q1 2021 | 29

 

13.NON-GAAP FINANCIAL MEASURES

 

The Company has included certain non-GAAP performance measures throughout this document. These performance measures are employed by the Company to measure its operating and economic performance internally 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 also use this information to evaluate its operating and financial performance; however, these non-GAAP performance measures do not have any standardized meaning. Accordingly, 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 consolidated financial statements.

Non-GAAP Measure - Cash Costs Per Ounce Sold

The Company uses cash costs per ounce of precious metals sold, a non-GAAP financial measure, to monitor its operating performance internally, including operating cash costs, and for internal decision making. 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 and ability to generate cash flow. When deriving the production costs associated with an ounce of precious metal, the Company includes the by-product credits as it considers the cost to produce the gold or silver is reduced as a result of the by-product sales incidental to the gold and silver production process, thereby allowing management and other stakeholders to assess the net costs of gold and silver production. In calculating cash costs per ounce, the Company also excludes the impact of specific items that are significant, but not reflective of its underlying operations, including the impact of measuring inventories at fair value in connection with business combinations. When 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 cash costs per ounce sold to the consolidated financial statements:

 

   For the three months ended March 31, 2021
(in thousands of USD, unless otherwise noted)  Çöpler  Marigold  Seabee  Puna  Total
Production costs  $66,028   $51,955   $16,742   $22,767   $157,492 
By-product credits  $(2,083)  $(36)  $(31)  $(6,848)  $(8,998)
Treatment and refining charges  $—     $194   $188   $3,321   $3,703 
Incremental COVID-19 related costs (1)  $—     $(332)  $(852)  $(893)  $(2,077)
Fair value adjustment on acquired inventories  $(16,069)  $—     $—     $—     $(16,069)
Cash costs  $47,876   $51,781   $16,047   $18,347   $134,051 
                          
Gold sold (oz)   82,502    65,012    25,766    —      173,280 
Silver sold (oz)   —      —      —      1,949,086    1,949,086 
Gold equivalent sold (oz) (2, 3)   82,502    65,012    25,766    28,214    201,494 
                          
Cash cost per gold ounce sold  $580   $796   $623    N/A    N/A 
Cash cost per silver ounce sold   N/A    N/A    N/A   $9.41    N/A 
Cash cost per gold equivalent ounce sold  $580   $796   $623   $650   $665 

 

 

 

 

SSR Mining Inc

MD&A Q1 2021 | 30

 

13.  NON-GAAP FINANCIAL MEASURES (continued)

 

   For the three months ended March 31, 2020
(in thousands of USD, unless otherwise noted)  Marigold  Seabee  Puna  Total
Production costs $  $47,772   $15,048   $28,225  $91,045 
By-product credits $  $(10)  $(8)  $(6,834)  $(6,852)
Treatment and refining charges $  $28   $38   $2,059  $2,125 
Cash costs $  $47,790  $15,078   $23,450  $86,318 
                     
Gold sold (oz)   58,000    27,700         85,700 
Silver sold (oz)   —      —      1,738,201    1,738,201 
Gold equivalent sold (oz) (2, 3)   58,000    27,700    19,015    104,715 
                     
Cash cost per gold ounce sold $  $824   $544    N/A    N/A 
Cash cost per silver ounce sold   N/A    N/A    $13.49    N/A 
Cash cost per gold equivalent ounce sold $  $824   $544   $1,233   $824 

 

(1) COVID-19 related costs include direct, incremental costs associated with COVID-19.
(2) Gold equivalent ounces have been established using realized metal prices per ounce of precious metal sold in the period and applied to the recovered metal content of the gold and silver sold by Çöpler, Marigold, Seabee and Puna. The Company has not included lead and zinc as they are considered a by-product.
(3)Gold equivalent ounces sold may not re-calculate based on amounts presented in this table due to rounding.

 

Non-GAAP Measure - AISC Per Ounce Sold

 

AISC includes total production costs incurred at the Company's mining operations, which forms the basis of its by- product 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, expansionary capital and non-sustaining expenditures are excluded. Certain other cash expenditures, including tax payments and financing costs are also excluded.

 

The Company believes that this measure represents the total costs of producing gold and silver from current operations and provides the Company and other stakeholders with additional information about its operating performance and ability to generate cash flows. It allows the Company to assess its ability to support capital expenditures and to sustain future production from the generation of operating cash flows.

 

As described above, AISC includes total production costs incurred at the Company's mining operations, which forms the basis of its cash costs and which are reconciled to reported production costs in the tables above.

 

 

SSR Mining Inc

MD&A Q1 2021 | 31

 

13.  NON-GAAP FINANCIAL MEASURES (continued)

 

The following tables provide a reconciliation of total AISC per ounce to the consolidated financial statements:

 

   For the three months ended March 31, 2021
(in thousands of USD, unless otherwise noted)  Çöpler  Marigold  Seabee  Puna  Corporate  Total
Cash costs  $47,876   $51,781   $16,047   $18,347   $—     $134,051 
Sustaining capital expenditures  $8,418   $30,693   $12,745   $7,193   $—     $59,049 
Sustaining exploration and evaluation expense  $164   $154   $—     $19   $—     $337 
Reclamation cost accretion and amortization  $712   $429   $49   $600   $—     $1,790 
General and administrative expense and share-based compensation expense  $4,095   $(103)  $(91)  $1,084   $2,173   $7,158 
Total AISC  $61,265   $82,954   $28,750   $27,243   $2,173   $202,385 
                               
Gold sold (oz)   82,502    65,012    25,766    —      —      173,280 
Silver sold (oz)   —      —      —      1,949,086    —      1,949,086 
Gold equivalent sold (oz) (2, 3)   82,502    65,012    25,766    28,214    —      201,494 
                               
AISC per gold ounce sold  $743   $1,276   $1,116    N/A    N/A    N/A 
AISC per silver ounce sold   N/A    N/A    N/A   $13.98    N/A    N/A 
AISC per gold equivalent ounce sold  $743   $1,276   $1,116   $966    N/A   $1,004 

 

 

 

   For the three months ended March 31, 2020
(in thousands of USD, unless otherwise noted)  Marigold  Seabee  Puna  Corporate  Total
Cash costs  $47,790   $15,078   $23,450   $—     $86,318 
Sustaining capital expenditures  $24,827   $12,094   $4,281   $—     $41,202 
Sustaining exploration and evaluation expense  $1,097   $—     $150   $—     $1,247 
Reclamation cost accretion and amortization  $353   $34   $629   $—     $1,016 
General and administrative expense and share-based compensation expense  $(627)  $(208)  $208   $2,844   $2,217 
Total AISC  $73,440   $26,998   $28,718   $2,844   $132,000 
                          
Gold sold (oz)   58,000    27,700    —      —      85,700 
Silver sold (oz)   —      —      1,738,201    —      1,738,201 
Gold equivalent sold (oz) (2, 3)   58,000    27,700    19,015    —      104,715 
                          
AISC per gold ounce sold  $1,266   $975    N/A    N/A    N/A 
AISC per silver ounce sold   N/A    N/A   $16.52    N/A    N/A 
AISC per gold equivalent ounce sold  $1,266   $975   $1,510    N/A   $1,261  

 

 

 

SSR Mining Inc

MD&A Q1 2021 | 32

 

13.  NON-GAAP FINANCIAL MEASURES (continued)

Non-GAAP Measure - Adjusted Attributable Net Income

Adjusted attributable net income and adjusted attributable net income per share are used by management and investors to measure the Company's underlying operating performance. Adjusted attributable net income is defined as net income adjusted to exclude the after-tax impact of specific items that are significant, but not reflective of the Company's underlying operations, including the impact of measuring inventories and mineral properties at fair value in connection with business combinations; impairment adjustments and reversals; foreign exchange gains (losses), including those related to deferred tax balances; transaction and integration expenses; changes in tax rates and other non-recurring items.

 

Prior to the third quarter of 2020, adjusted attributable net income was also adjusted to exclude non-cash finance expense, net of non-cash finance income and any write-downs of inventories to net realizable value. These items are no longer excluded as they are considered to occur from time to time in the normal course of operations. In addition, in prior periods, adjustments to net income were not individually tax-effected. The Company's calculation of adjusted attributable net income now tax effects each adjusting item within the "income tax impact related to above adjustments" line item. The calculations of adjusted attributable net income and adjusted attributable net income per share for prior periods conform with the presentation in the current period.

 

The following table provides a reconciliation of adjusted attributable net income to the consolidated financial statements:

 

    Three months ended March 31 
(in thousands of USD, unless otherwise noted)    2021    2020 
Net income attributable to equity holders of SSR Mining  $52,980   $23,976 
Adjustments:          
Fair value adjustment on acquired assets (1)   25,225    —   
Care and maintenance expense   —      1,330 
COVID-19 related costs (2)   2,077    —   
Foreign exchange loss   424    (1,158)
Transaction and integration expense   4,492    —   
Income tax impact related to above adjustments   (6,924)   (197)
Foreign exchange loss on deferred tax balances (3)   26,910    2,256 
Inflationary impacts on tax balances   (2,806)   (2,181)
Adjusted net income attributable to equity holders of SSR Mining  $102,378   $24,026 
           
Weighted average shares outstanding ('000s)   219,792    123,228 
Adjusted basic attributable income per share to equity holders of SSR Mining  $0.47   $0.19 

 

(1)Fair value adjustments on acquired assets relate to the acquisition of Alacer's inventories and mineral properties.

(2)COVID-19 related costs include direct, incremental costs associated with COVID-19 at all operations.

(3)Foreign exchange loss on deferred tax balances relates mainly to the impact of foreign exchange rate changes on foreign currency denominated deferred tax balances principally at Çöpler and Puna.

 

 

SSR Mining Inc

MD&A Q1 2021 | 33

 

13. NON-GAAP FINANCIAL MEASURES (continued)

Non-GAAP Measure - Free Cash Flow

The Company uses free cash flow, a non-GAAP financial measure, to supplement information in its consolidated financial statements. The Company believes that in addition to conventional measures prepared in accordance with IFRS, 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.

 

Free cash flow is reconciled to the amounts included in the consolidated statements of cash flows as follows:

 

   Three months ended March 31
(in thousands of USD, unless otherwise noted)  2021  2020
Cash generated by operating activities  $145,221  $64,136 
Expenditures on mineral properties, plant and equipment   (68,579)   (53,903)
Free cash flow  $76,642  $10,233 

 

Non-GAAP Measure - Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") and Adjusted EBITDA

 

EBITDA represents net income 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 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 the impact of measuring inventories at fair value in connection with business combinations; impairment adjustments and reversals; foreign exchange gains (losses); transaction and integration expenses; unrealized gains (losses) on derivatives; and other non-recurring items.

 

The following is a reconciliation of EBITDA and adjusted EBITDA to the consolidated financial statements:

 

 

   Three months ended March 31
(in thousands of USD, unless otherwise noted)  2021  2020
Net income  $59,762   $23,976 
Depletion and depreciation   61,375    28,806 
Interest and other finance income   (470)   (2,397)
Interest expense and other finance costs   7,945    6,966 
Income tax expense   58,172    5,999 
EBITDA  $186,784   $63,350 
Fair value adjustment on acquired inventories   16,069    —   
Care and maintenance expense   —      1,330 
COVID-19 related costs (1)   2,077    —   
Foreign exchange loss   424    (1,158)
Transaction and integration expense   4,492    —   
Adjusted EBITDA  $209,846   $63,522 
(1)COVID-19 related costs include direct, incremental costs associated with COVID-19 at all operations.

 

 

SSR Mining Inc

MD&A Q1 2021 | 34

 

13.  NON-GAAP FINANCIAL MEASURES (continued)

Non-GAAP Measure - Consolidated Cash

The Company uses consolidated cash, a non-GAAP financial measure, to supplement information in its consolidated financial statements. Consolidated cash does not have any standardized meaning prescribed under IFRS, and therefore it may not be comparable to similar measures employed by other companies. The Company believes consolidated cash provides useful information to investors as it shows the underlying cash position on a consolidated basis, especially as it is compared on a relative basis to the Company's debt position. The Company calculates consolidated cash as cash and cash equivalents plus restricted cash, which is shown as a non-current asset in the consolidated statement of financial position, and attributable cash held by joint ventures accounted for using the equity method.

 

The quantitative reconciliation from cash and cash equivalents as shown in the consolidated statement of financial position to the non-GAAP measure of consolidated cash is shown in the table below:

 

(in thousands of USD, unless otherwise noted)  March 31, 2021  December 31, 2020
Cash and cash equivalents  $866,029   $860,637 
Add: Restricted cash   35,290    35,288 
Add: Attributable cash held by joint ventures accounted for using the equity method   298    1,042 
Consolidated Cash  $901,617   $896,967 

 

 

 

14.  CRITICAL ACCOUNTING POLICIES AND ESTIMATES

 

Basis of preparation and accounting policies

 

The Company's condensed consolidated interim financial statements have been prepared in accordance with IFRS as issued by the IASB applicable to the preparation of interim financial statements, including IAS 34, Interim Financial Reporting. The condensed consolidated interim financial statements should be read in conjunction with the Company's audited consolidated financial statements for the year ended December 31, 2020.

 

Except for the Company’s adoption of Interest Rate Benchmark Reform - Phase 2: Amendments to IFRS 9, IAS 39, IFRS 4 and IFRS 16, as further described in note 2(b) of the Company's condensed consolidated interim financial statements, the accounting policies applied in the preparation of the condensed consolidated interim financial statements are consistent with those applied and disclosed in the audited consolidated financial statements for the year ended December 31, 2020.

 

Critical accounting estimates and judgments

 

The preparation of financial statements in conformity with IFRS requires the use of judgments and/or estimates that affect the amounts reported and disclosed in the condensed consolidated interim financial statements and related notes. Critical accounting estimates represent estimates that are uncertain and for which changes in those estimates could materially impact the consolidated financial statements. The critical judgments and key sources of estimation uncertainty that have the most significant effect in the preparation of the condensed consolidated interim financial statements for the three months ended March 31, 2021 are consistent with those disclosed in note 3 of the consolidated financial statements for the year ended December 31, 2020.

 

 

 

SSR Mining Inc

MD&A Q1 2021 | 35

 

15.  INTERNAL CONTROL OVER FINANCIAL REPORTING AND DISCLOSURE CONTROLS AND PROCEDURES

 

The Company's management, with the participation of the Chief Executive Officer and Chief Financial Officer, are responsible for establishing and maintaining adequate internal control over financial reporting and disclosure controls and procedures. The Company's internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS. Any system of internal control over financial reporting, no matter how well designed, has inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.

 

Following an evaluation by management, during the three months ended March 31, 2021, there were no changes in internal controls over financial reporting that have materially affected, or are reasonably likely to materially affect, the Company's internal controls over financial reporting.

 

16.CAUTIONARY NOTES REGARDING FORWARD-LOOKING STATEMENTS AND MINERAL RESERVES AND MINERAL RESOURCES ESTIMATES

 

Cautionary Note Regarding Forward-Looking Statements

 

Except for statements of historical fact relating to the Company, certain statements contained in this MD&A constitute forward-looking information, future oriented financial information, or financial outlooks (collectively “forward-looking information”) within the meaning of Canadian securities laws. Forward-looking information may be contained in this document and the Company’s other public filings. Forward-looking information relates to statements concerning the Company’s outlook and anticipated events or results and in some cases, can be identified by terminology such as “may”, “will”, “could”, “should”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “estimate”, “projects”, “predict”, “potential”, “continue” or other similar expressions concerning matters that are not historical facts.

 

Forward-looking information and statements in this MD&A are based on certain key expectations and assumptions made by the Company. Although the Company believes that the expectations and assumptions on which such forward-looking information and statements are based are reasonable, undue reliance should not be placed on the forward-looking information and statements because the Company can give no assurance that they will prove to be correct. Forward-looking information and statements are subject to various risks and uncertainties which could cause actual results and experience to differ materially from the anticipated results or expectations expressed in this MD&A. The key risks and uncertainties include, but are not limited to: local and global political and economic conditions; governmental and regulatory requirements and actions by governmental authorities, including changes in government policy, government ownership requirements, changes in environmental, tax and other laws or regulations and the interpretation thereof; developments with respect to COVID-19 pandemic, including the duration, severity and scope of the pandemic and potential impacts on mining operations; and other risk factors detailed from time to time in the Company’s reports filed with the Canadian securities regulatory authorities.

 

Forward-looking information and statements in this MD&A include statements concerning, among other things: forecasts; outlook; timing of production; production, cost, operating and capital expenditure guidance; the Company’s intention to return excess attributable free cash flow to shareholders; the timing and implementation of the Company’s dividend policy; the implementation of any share buyback program and the amount thereof; statements regarding plans or expectations for the declaration of future dividends and the amount thereof; future cash costs and AISC per ounce of gold, silver and other metals sold; the prices of gold, silver and other metals; Mineral Resources, Mineral Reserves, realization of Mineral Reserves, and the existence or realization of Mineral Resource estimates; the Company’s ability to discover new areas of mineralization; the timing and extent of capital investment at the Company’s operations; the timing and extent of capitalized stripping at the Company’s operations; the timing of production and production levels and the results of the Company’s exploration and development programs; current financial resources being sufficient to carry out plans, commitments and business requirements for the next twelve months; movements in commodity prices not impacting the value of any financial instruments; estimated production rates for gold, silver and other metals produced by the Company; the estimated cost of sustaining capital; availability of sufficient financing; receipt of regulatory approvals; the timing of studies, announcements, and analysis; the timing of construction and development of proposed mines and process facilities; ongoing or future development plans and capital replacement; estimates of expected or anticipated economic returns from the Company’s mining projects, including future sales of metals, concentrate or other products produced by the Company and the timing thereof; the Company’s plans and expectations for its properties and operations; and all other timing, exploration, development, operational, financial, budgetary, economic, legal, social, environmental, regulatory, and political matters that may influence or be influenced by future events or conditions.

 

 

SSR Mining Inc

MD&A Q1 2021 | 36

 

16.  CAUTIONARY NOTES REGARDING FORWARD-LOOKING STATEMENTS AND MINERAL RESERVES AND MINERAL RESOURCES ESTIMATES (continued)

 

Such forward-looking information and statements are based on a number of material factors and assumptions, including, but not limited in any manner to, those disclosed in any other of the Company’s filings, and include: the inherent speculative nature of exploration results; the ability to explore; communications with local stakeholders; maintaining community and governmental relations; status of negotiations and potential transactions, including joint ventures; weather conditions at the Company’s operations; commodity prices; the ultimate determination of and realization of Mineral Reserves; existence or realization of Mineral Resources; the development approach; availability and receipt of required approvals, titles, licenses and permits; sufficient working capital to develop and operate the mines and implement development plans; access to adequate services and supplies; foreign currency exchange rates; interest rates; access to capital markets and associated cost of funds; availability of a qualified work force; ability to negotiate, finalize, and execute relevant agreements; lack of social opposition to the Company’s mines or facilities; lack of legal challenges with respect to the Company’s properties; the timing and amount of future production; the ability to meet production, cost, and capital expenditure targets; timing and ability to produce studies and analyses; capital and operating expenditures; economic conditions; availability of sufficient financing; the ultimate ability to mine, process, and sell mineral products on economically favorable terms; and any and all other timing, exploration, development, operational, financial, budgetary, economic, legal, social, geopolitical, regulatory and political factors that may influence future events or conditions. While the Company considers these factors and assumptions to be reasonable based on information currently available to the Company, they may prove to be incorrect.

 

The above list is not exhaustive of the factors that may affect any of the Company’s forward-looking statements and information. You should not place undue reliance on forward-looking information and statements. Forward-looking information and statements are only predictions based on the Company’s current expectations and the Company’s projections about future events. Actual results may vary from such forward-looking information for a variety of reasons including, but not limited to, risks and uncertainties disclosed in the Company’s filings on the Company’s website at www.ssrmining.com, on SEDAR at www.sedar.com, on EDGAR at www.sec.gov and on the ASX at www.asx.com.au and other unforeseen events or circumstances. Other than as required by law, the Company does not intend, and undertake no obligation to update any forward-looking information to reflect, among other things, new information or future events.

 

Qualified Persons

 

Except as otherwise set out herein, the scientific and technical information contained in this MD&A relating to Çöpler has been reviewed and approved by Robert L. Clifford, BS (Mine Eng), SME Registered Member, and Dr. Cengiz Y. Demirci, AIPG (CPG), each of whom is a qualified person under NI 43-101 - Standards of Disclosure for Mineral Projects (“NI 43-101”). Mr. Clifford is the Company's Director, Mine Planning (Turkey, Argentina), and Dr. Demirci is the Company's Vice President, Exploration. The scientific and technical information contained in this MD&A relating to Marigold has been reviewed and approved by Greg Gibson and James N. Carver, each of whom is a SME Registered Member and a qualified person under NI 43-101. Mr. Gibson is the Company's General Manager at Marigold and Mr. Carver is the Company's Resource Development Manager, USA. The scientific and technical information contained in this MD&A relating to Seabee has been reviewed and approved by Samuel Mah, P.Eng., and Jeffrey Kulas, P.Geo., each of whom is a qualified person under NI 43-101. Mr. Mah is the Company's Director, Mine Planning (North America), and Mr. Kulas is the Company's Resource Development Manager, Canada. The scientific and technical information contained in this MD&A relating to Puna has been reviewed and approved by Robert Gill, P.Eng., and Karthik Rathnam, MAusIMM (CP), each of whom is a qualified person under NI 43-101. Mr. Gill is the Company's General Manager at Puna. and Mr. Rathnam is the Company's Resource Manager, Corporate.

 

Cautionary Note Regarding Mineral Reserves and Mineral Resources Estimates

 

This MD&A includes Mineral Reserves and Mineral Resources classification terms that comply with reporting standards in Canada and the Mineral Reserves and the Mineral Resources estimates are made in accordance with NI 43-101. NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. These standards differ significantly from the requirements of the SEC set out in the SEC's rules that are applicable to domestic United States reporting companies. Consequently, Mineral Reserves and Mineral Resources information included in this MD&A may not be comparable to similar information that would generally be disclosed by domestic U.S. reporting companies subject to the reporting and disclosure requirements of the SEC. Accordingly, information concerning mineral deposits set forth herein may not be comparable with information made public by companies that report in accordance with U.S. standards.

 

 

SSR Mining Inc

MD&A Q1 2021 | 37


Exhibit 99.3

 

 

 

Form 52-109F2

Certification of Interim Filings

Full Certificate

I, Rod Antal, Chief Executive Officer of SSR Mining Inc., certify the following:

1.Review: I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of SSR Mining Inc. (the “issuer”) for the interim period ended March 31, 2021.
2.No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.
3.Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.
4.Responsibility: The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, for the issuer.
5.Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer(s) and I have, as at the end of the period covered by the interim filings
(a)designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that
(i)material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and
(ii)information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and
(b)designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP.
5.1Control framework: The control framework the issuer’s other certifying officer(s) and I used to design the issuer’s ICFR is based on criteria established in “Internal Control – Integrated Framework (2013)” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
5.2N/A.
5.3N/A.
6.Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on January 1, 2021 and ended on March 31, 2021 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.

Date: May 6, 2021


Signed “Rod Antal”

Rod Antal

Chief Executive Officer

 

 

 

 

 


Exhibit 99.4

 

 

 

Form 52-109F2

Certification of Interim Filings

Full Certificate

I, Alison White, Chief Financial Officer of SSR Mining Inc., certify the following:

1.Review: I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of SSR Mining Inc. (the “issuer”) for the interim period ended March 31, 2021.
2.No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.
3.Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.
4.Responsibility: The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, for the issuer.
5.Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer(s) and I have, as at the end of the period covered by the interim filings
(a)designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that
(i)material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and
(ii)information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and
(b)designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP.
5.1Control framework: The control framework the issuer’s other certifying officer(s) and I used to design the issuer’s ICFR is based on criteria established in “Internal Control – Integrated Framework (2013)” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
5.2N/A.
5.3N/A.
6.Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on January 1, 2021 and ended on March 31, 2021 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.

Date: May 6, 2021


Signed “Alison White”

Alison White

Chief Financial Officer

 

 

 

 

 


Exhibit 99.5

 

 

  News Release

 

May 6, 2021

 

 

SSR MINING REPORTS FIRST QUARTER 2021 RESULTS

 

ADJUSTED ATTRIBUTABLE EPS OF $0.47 PER SHARE

 

DENVER, CO - SSR Mining Inc. (NASDAQ/TSX: SSRM, ASX:SSR) ("SSR Mining" or "the Company") reports consolidated financial results for first quarter ended March 31, 2021. In addition, the Board of Directors declared a quarterly cash dividend of US$0.05 per common share, payable on June 14, 2021 to holders of record at the close of business on May 17, 2021. This dividend qualifies as an 'eligible dividend' for Canadian tax purposes.

 

Rod Antal, President and CEO said, "The first quarter of 2021 represented another strong operational and financial quarter for SSR Mining as we delivered production of 196,094 gold equivalent ounces at an AISC of $1,004 per ounce and generated $77 million of free cash flow.

 

The operational consistency of our four operating sites combined with our peer leading free cash flow generation has allowed us to come full circle with our 2021 capital allocation program and supplement our existing $44 million per year base dividend with a sizeable share buyback program of up to $150 million. The combination of the base dividend and our share buyback program will align our peer leading free cash flow yield with our capital returns yield.

 

From a growth perspective, we continue to invest in and advance our large brownfield organic portfolio across Turkey, the US and Canada. At Çöpler, the flotation plant construction is on-track for commissioning mid-year and will drive stronger operational performance in the 2nd half of the year. In addition, step-out and infill drilling at Ardich continues to support resource expansion and conversion as we continue to progress this sizeable, low capital intensity asset into production by 2023. Exploration updates detailing the positive progress across targets at Marigold, Çöpler, and Seabee are expected over the course of the year."

 

 

First Quarter 2021 Highlights:

(All figures are in U.S. dollars unless otherwise noted)

 

Robust quarterly operating performance across all four operations: Delivered first quarter production of 196,094 gold equivalent ounces at AISC of $1,004 per gold equivalent ounce, on track to meet full-year guidance ranges.

 

Strong financial performance: Generated cash flows from operating activities of $145.2 million and free cash flow of $76.6 million in the first quarter.(1) Reported first quarter attributable net income of $53.0 million, or $0.24 per share, and adjusted attributable net income of $102.4 million, or $0.47 per share.(1)

 

Maintained strong, peer-leading balance sheet: Cash and cash equivalents and consolidated cash balances remained strong at quarter end, increasing to $866.0 million and $901.6 million, following $49.1 million in dividend payments to equity shareholders and to Çöpler's non-controlling interest, while also reducing debt balances $17.5 million during the quarter.

 

 

 
 
Capital allocation framework in place: The Board declared the first quarterly cash dividend of $0.05 per share on February 17, 2021. Subsequent to the quarter-end, the Company announced that it has received acceptance from the Toronto Stock Exchange, to initiate a Normal Course Issuer Bid permitting SSR Mining to purchase for cancellation up to 10,000,000 common shares of the Company, representing 4.5% of SSR Mining’s total issued and outstanding common shares.

 

Released year-end 2020 Mineral Reserves and Resources: Gold Mineral Reserves increased 5% to 8.0 million ounces (9.0 million gold-equivalent ounces), while gold Measured and Indicated Mineral Resources increased 14% to 15.0 million ounces (27.0 million gold-equivalent ounces).

 

Delivered integrated sustainability report: On March 30, 2021, the Company published its third annual ESG and Sustainability Report, and its first since the merger with Alacer. The ESG report included a commitment to net zero greenhouse emissions by 2050.

 

Çöpler delivered strong margins and progressed growth initiatives: Delivered gold production of 78,478 ounces in the first quarter. Reported AISC of $743 per ounce in the first quarter, generating robust margins.(1) Çöpler flotation plant commissioning and ramp-up remain on schedule for mid-year 2021.

 

Marigold had record material movement and the Mineral Resource grew: Delivered gold production of 67,936 ounces for the first quarter as the mine moved a record 23.8 million tonnes of material. The record movement was achieved despite a 35 day scheduled maintenance shutdown of the largest shovel. Indicated Mineral Resources increased by 9% for a total of 5.4 million ounces of gold compared to 4.9 million ounces at year-end 2019. Mineral Resources increased at Mackay, Red Dot, New Millennium, Crossfire and Valmy.

 

Seabee continues to deliver, Mineral Reserves were replaced and the land position more than doubled: Produced 23,735 ounces of gold in-line with the full-year mine plan. In the first quarter of 2021, Seabee exercised its option to acquire an additional 20% interest in the Fisher property, bringing its joint venture interest to 80%. Despite a limited exploration program due to COVID-19, Seabee largely replaced Mineral Reserves for the year.

 

Puna generated robust margins: Produced 1.8 million ounces of silver at cash costs of $9.41 per ounce in the first quarter and AISC of $13.98 per ounce. Puna revenue increased by 92% in the first quarter of 2021 compared to the first quarter of 2020, due to a 49% increase in the average realized silver price.(1)

 

(1)SSR Mining reports the non-GAAP financial measures of all-in sustaining costs ("AISC") per ounce of gold, silver and gold equivalent sold, adjusted attributable net income, adjusted attributable net income per share, free cash flow and consolidated cash to manage and evaluate the Company's operating performance. See "Non-GAAP Financial Measures" in Section 13 of the MD&A.

 

 

 

SSR Mining Inc.

PAGE 2

 

Financial and Operating Highlights

 

A summary of the Company's consolidated financial and operating results for the three months ended March 31, 2021 and 2020 are presented below:

 

(in thousands of US dollars, except per share data)   Three months ended March 31,
   2021  2020
Financial Results          
Revenue  $366,484   $164,463 
Income from mine operations  $147,820   $44,783 
Gross margin (2)   40%   27%
Operating income  $128,013   $34,766 
Net income  $59,762   $23,976 
Net income attributable to equity holders of SSR Mining  $52,980   $23,976 
Basic attributable net income per share  $0.24   $0.19 
Adjusted attributable net income (1)  $102,378   $24,026 
Adjusted basic attributable net income per share (1)  $0.47   $0.19 
           
Cash generated by operating activities  $145,221   $64,136 
Cash used in investing activities  $(68,053)  $(49,361)
Cash used in financing activities  $(71,788)  $(119,447)
           
Operating Results          
Gold produced (oz)   170,149    87,968 
Gold sold (oz)   173,370    85,742 
Silver produced ('000 oz)   1,792    1,770 
Silver sold ('000 oz)   2,038    1,834 
Lead produced ('000 lb) (4)   6,164    5,536 
Lead sold ('000 lb) (4)   6,432    6,407 
Zinc produced ('000 lb) (4)   3,079    1,821 
Zinc sold ('000 lb) (4)   956    2,166 
           
Gold equivalent produced (oz) (5)   196,094    107,331 
Gold equivalent sold (oz) (5)   201,494    104,715 
           
Average realized gold price ($/oz sold)  $1,798   $1,597 
Average realized silver price ($/oz sold)  $26.02   $17.47 
           
Cash cost per gold equivalent ounce sold (1, 5)  $665   $824 
AISC per gold equivalent ounce sold (1, 5)  $1,004   $1,261 
           
Financial Position   March 31, 2021    December 31, 2020 
Cash and cash equivalents  $866,029   $860,637 
Current assets  $1,438,393   $1,424,522 
Total assets  $5,273,127   $5,244,986 
Current liabilities  $238,404   $248,933 
Total liabilities  $1,308,124   $1,305,083 
Working capital (3)  $1,199,989   $1,175,589 

(1)The Company reports non-GAAP financial measures including adjusted attributable net income, adjusted basic attributable net income per share, cash costs and AISC per ounce sold to manage and evaluate its operating performance at its mines. See "Non-GAAP Financial Measures" in Section 13.

(2) Gross margin is defined as income from mine operations divided by revenue.

(3)Working capital is defined as current assets less current liabilities.

(4)Data for lead production and sales relate only to lead in lead concentrate. Data for zinc production and sales relate only to zinc in zinc concentrate.

(5)Gold equivalent ounces have been established using the average realized metal prices per ounce of precious metals sold in the period and applied to the recovered silver metal content produced by the mines. Zinc and lead production are not included in gold equivalent ounces produced.

 

 

SSR Mining Inc.

PAGE 3

 

Management Discussion & Analysis and Conference Call

 

This news release should be read in conjunction with our unaudited Condensed Consolidated Interim Financial Statements and our MD&A as filed with the Canadian Securities Administrators and available at www.sedar.com or our website at www.ssrmining.com.

 

Conference call and webcast: Thursday, May 6, 2021, at 5:00 pm EST.
Toll-free in U.S. and Canada: +1 (855) 327-6838
All other callers: +1 (416) 915-3239
Webcast: http://ir.ssrmining.com/investors/events

 

The conference call will be archived and available on our website. Audio replay will be available for two weeks by calling:
Toll-free in U.S. and Canada: +1 (855) 669-9658, replay code 6703
All other callers: +1 (412) 317-0088, replay code 6703

 

Dividend Declaration

 

The Board of Directors declared a quarterly cash dividend of US$0.05 per common share, payable on June 14, 2021 to holders of record at the close of business on May 17, 2021. This dividend qualifies as an 'eligible dividend' for Canadian income tax purposes.

 

The dividend payment applies to holders of SSR Mining’s common shares, which trade on the Toronto Stock Exchange and the Nasdaq under the symbol SSRM, and to holders of its CHESS Depositary Interests ("CDIs"), which trade on the Australian Securities Exchange under the symbol SSR. Each CDI confers a beneficial interest in one common share. Therefore, CDI holders are entitled to a dividend calculated on the same basis as the holders of SSR Mining’s common shares.

 

SSR Mining has sought and been granted a temporary waiver of certain of the ASX Settlement Operating Rules. Under the authority of the waiver, the processing of conversions of common shares to CDIs, or CDIs to common shares, lodged on or after May 14, 2021, will be deferred until after the record date of May 17, 2021.

 

 

SSR Mining Inc.

PAGE 4

 

The key dates with respect to the dividend are as follows:

 

Last date for processing requests to convert CDIs into common shares and to convert common shares into CDIs before the record date for the dividend May 13, 2021
CDIs trade on the ASX on an ex-dividend basis May 14, 2021
Common shares trade on the TSX and Nasdaq on an ex-dividend basis May 14, 2021
Record date for the dividend May 17, 2021

Processing recommences for requests to convert CDIs into common shares and to convert common shares into CDIs

May 18, 2021
Common share dividend payment date

June 14, 2021

(in Canada and

the United States) 

Payment of dividend to CDI holders

June 15, 2021

(in Australia)

  

Payments to Canadian shareholders will be made in Canadian dollars based on the exchange rate on the record date as reported by the Bank of Canada. Payments to other shareholders will be made in U.S. dollars. For CDI holders, payments will be made in Australian dollars, and it is expected to be based on the prevailing exchange rate sourced from the wholesale foreign exchange market on or around 5 business days after the record date.

 

About SSR Mining

 

SSR Mining Inc. is a leading, free cash flow focused gold company with four producing assets located in the USA, Turkey, Canada, and Argentina, combined with a global pipeline of high-quality development and exploration assets in the USA, Turkey, Mexico, Peru, and Canada. In 2020, the four operating assets produced approximately 711,000 gold-equivalent ounces. SSR Mining is listed under the ticker symbol SSRM on the NASDAQ and the TSX, and SSR on the ASX.

 

SOURCE: SSR Mining Inc.

 

SSR Mining Contacts:

F. Edward Farid, Executive Vice President, Chief Corporate Development Officer SSR Mining Inc.

E-Mail: invest@ssrmining.com

Phone: +1 (888) 338-0046 or +1 (604) 689-3846

 

To receive SSR Mining’s news releases by e-mail, please register using the SSR Mining website at www.ssrmining.com.

 

 

SSR Mining Inc.

PAGE 5

 

Cautionary Note Regarding Forward-Looking Statements

 

Except for statements of historical fact relating to the Company, certain statements contained in this press release constitute forward-looking information, future oriented financial information, or financial outlooks (collectively "forward-looking information") within the meaning of Canadian securities laws. Forward-looking information may be contained in this document and the Company’s other public filings. Forward-looking information relates to statements concerning the Company’s outlook and anticipated events or results and in some cases, can be identified by terminology such as "may", "will", "could", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "projects", "predict", "potential", "continue" or other similar expressions concerning matters that are not historical facts.

 

Forward-looking information and statements in this press release are based on certain key expectations and assumptions made by the Company. Although the Company believes that the expectations and assumptions on which such forward-looking information and statements are based are reasonable, undue reliance should not be placed on the forward-looking information and statements because the Company can give no assurance that they will prove to be correct. Forward-looking information and statements are subject to various risks and uncertainties which could cause actual results and experience to differ materially from the anticipated results or expectations expressed in this press release. The key risks and uncertainties include, but are not limited to: local and global political and economic conditions; governmental and regulatory requirements and actions by governmental authorities, including changes in government policy, government ownership requirements, changes in environmental, tax and other laws or regulations and the interpretation thereof; developments with respect to COVID-19 pandemic, including the duration, severity and scope of the pandemic and potential impacts on mining operations; and other risk factors detailed from time to time in the Company’s reports filed with the Canadian securities regulatory authorities.

 

Forward-looking information and statements in this press release include statements concerning, among other things: forecasts; outlook; timing of production; production, cost, operating and capital expenditure guidance; the Company’s intention to return excess attributable free cash flow to shareholders; the timing and implementation of the Company’s dividend policy; the implementation of any share buyback program and the amount thereof; statements regarding plans or expectations for the declaration of future dividends and the amount thereof; future cash costs and all in sustaining costs ("AISC") per ounce of gold, silver and other metals sold; the prices of gold, silver and other metals; Mineral Resources, Mineral Reserves, realization of Mineral Reserves, and the existence or realization of Mineral Resource estimates; the Company’s ability to discover new areas of mineralization; the timing and extent of capital investment at the Company’s operations; the timing and extent of capitalized stripping at the Company’s operations; the timing of production and production levels and the results of the Company’s exploration and development programs; current financial resources being sufficient to carry out plans, commitments and business requirements for the next twelve months; movements in commodity prices not impacting the value of any financial instruments; estimated production rates for gold, silver and other metals produced by the Company; the estimated cost of sustaining capital; availability of sufficient financing; receipt of regulatory approvals; the timing of studies, announcements, and analysis; the timing of construction and development of proposed mines and process facilities; ongoing or future development plans and capital replacement; estimates of expected or anticipated economic returns from the Company’s mining projects, including future sales of metals, concentrate or other products produced by the Company and the timing thereof; the Company’s plans and expectations for its properties and operations; and all other timing, exploration, development, operational, financial, budgetary, economic, legal, social, environmental, regulatory, and political matters that may influence or be influenced by future events or conditions.

 

Such forward-looking information and statements are based on a number of material factors and assumptions, including, but not limited in any manner to, those disclosed in any other of the Company’s filings, and include: the inherent speculative nature of exploration results; the ability to explore; communications with local stakeholders; maintaining community and governmental relations; status of negotiations and potential transactions, including joint ventures; weather conditions at the Company’s operations; commodity prices; the ultimate determination of and realization of Mineral Reserves; existence or realization of Mineral Resources; the development approach; availability and receipt of required approvals, titles, licenses and permits; sufficient working capital to develop and operate the mines and implement development plans; access to adequate services and supplies; foreign currency exchange rates; interest rates; access to capital markets and associated cost of funds; availability of a qualified work force; ability to negotiate, finalize, and execute relevant agreements; lack of social opposition to the Company’s mines or facilities; lack of legal challenges with respect to the Company’s properties; the timing and amount of future production; the ability to meet production, cost, a