Looking ahead to 2021, we are focused on continuing to generate peer leading free cash flow and returning capital to our shareholders, while prudently investing-in and optimizing our assets. This year we will be advancing and executing on our organic growth portfolio aimed at increasing production, reducing costs, and extending mine lives from our near-mine, low capital intensity pipeline. Our 2021 outlook builds on our 2020 performance and will continue to demonstrate our capability to sustain 700,000 to 800,000 gold-equivalent ounces of production for the next 5+ years."
Full Year 2021 Outlook
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 / | $M | 9 | 47 | 19 | 13 | — | 88 |
Sustaining Exploration | $M | 2 | 7 | 1 | 1 | — | 11 |
General & Administrative | $M | — | — | — | — | 30 - 35 | 30 - 35 |
Share Based Compensation | $M | — | — | — | — | 15 - 20 | 15 - 20 |
All-In Sustaining Cost per | $/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 | $M | 31 | 11 | 7 | — | 5 | 54 |
$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 |
(3) | |
(4) | Excludes sustaining exploration expenditures. Includes |
(5) | Growth exploration and development expenditures are shown on a 100%, of which |
2021 Priority Operational and Development Catalysts:
Çöpler:
- Flotation circuit construction, with expected ramp-up beginning mid-year 2021
- Ardich exploration and concurrent development towards first production in 2023
- C2 exploration and advancement, focusing on an expandable development plan
Marigold:
- Ongoing cost reduction and continuous improvement initiatives
- Oxide exploration targeting higher grades and conversion at Mackay,
Valmy ,New Millennium ,Trenton Canyon andBuffalo Valley - Sulfide exploration and evaluation
Seabee:
- Increase mining rates to exploit latent mill capacity
- Gap Hanging Wall Mineral Resource conversion
- Seabee and Fisher exploration and resource development
Puna:
- Continue steady state production with focus on increasing productivity
- Achieve and sustain mill throughput rates above 4,000 tonnes per day
- Implement and integrate owner-operated ore transport fleet
Free cash flow generation in 2021 is expected 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.
Çöpler,
For 2020, gold production for Çöpler was 327,000 ounces, in-line with updated full-year guidance. Gold production was 83,000 ounces in the fourth quarter of 2020.
In 2021, Çöpler is expected to produce 310,000 to 340,000 ounces of gold at mine site AISC of
Sustaining capital expenditures are planned to total
For 2020, gold production for Marigold was 234,000 ounces, in-line with updated full-year guidance. Marigold finished the year with strong quarterly gold production of 77,000 ounces, a new quarterly record for the operation.
In 2021, Marigold production is expected to be 235,000 to 265,000 ounces of gold at mine site AISC of
Sustaining capital expenditures are planned to total
Seabee,
For 2020, gold production for Seabee was 82,000 ounces, in-line with updated full-year guidance. Gold production was 32,000 ounces in the fourth quarter of 2020.
In 2021, Seabee is expected to produce 95,000 to 105,000 ounces of gold at mine site AISC of
Sustaining capital expenditures are planned to total
Puna Operations,
For 2020, silver production from Puna was 5.6 million ounces, exceeding updated full-year guidance. Silver production was 2.2 million ounces in the fourth quarter of 2020.
In 2021, Puna is expected to produce 6.0 to 7.0 million ounces of silver at mine site AISC of
Sustaining capital expenditures are planned to total
Exploration and Resource Development
In 2021, total exploration and resource development expenditures are expected to total
At Çöpler, 2021 consolidated exploration expenditures are estimated at
At Marigold, 2021 total exploration expenditures are estimated at
At Seabee, 2021 total exploration expenditures are estimated at
At Puna, 2021 total exploration expenditures are anticipated to total
Assumptions
All figures in
About
SSR Mining intends to leverage its strong balance sheet and proven track record of free cash flow generation as foundations to organically fund growth across the portfolio and to facilitate superior returns to shareholders.
SSR Mining Contacts
SSR Mining Inc.
E-Mail: invest@ssrmining.com
Phone: +1 (888) 338-0046 or +1 (604) 689-3846
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Cautionary Note Regarding Forward-Looking Information and Statements:
Except for statements of historical fact relating to us, 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 our other public filings. Forward-looking information relates to statements concerning our 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 us. Although we believe 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 we 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 the 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 our reports filed with the Canadian securities regulatory authorities.
Forward-looking information and statements in this press release include statements concerning, among other things: preliminary cost reporting in this document; production, cost, and capital expenditure guidance; our near term operational and development catalysts; the results of any gold reconciliations; the ability to discover additional oxide gold ore; the generation of free cash flow and payment of dividends; matters relating to proposed exploration; communications with local stakeholders; maintaining community and government relations; negotiations of joint ventures; negotiation and completion of transactions; commodity prices; Mineral Resources, Mineral Reserves, conversion of Mineral Resources, realization of Mineral Reserves, and the existence or realization of Mineral Resource estimates; the development approach; the timing and amount of future production; the timing of studies, announcements, and analysis; the timing of construction and development of proposed mines and process facilities; capital and operating expenditures; economic conditions; availability of sufficient financing; exploration plans; receipt of regulatory approvals; expectations regarding COVID-19, its ongoing impact on us and any interruptions it may cause on our operations; and any 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 our 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 of joint ventures; weather conditions at our 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 our mines or facilities; lack of legal challenges with respect to our 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 we consider these factors and assumptions to be reasonable based on information currently available to us, they may prove to be incorrect.
You should not place undue reliance on forward-looking information and statements. Forward-looking information and statements are only predictions based on our current expectations and our 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 our filings on our 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, we do not intend, and undertake no obligation to update any forward-looking information to reflect, among other things, new information or future events.
Cautionary Note to U.S. Investors
This news release includes Mineral Reserves and Mineral Resources classification terms that comply with reporting standards in
Cautionary Note Regarding Non-GAAP Measures
We have included certain non-GAAP performance measures throughout this document. These performance measures are employed by us to measure our operating and economic performance internally and to assist in decision-making, as well as to provide key performance information to senior management. We believe that, in addition to conventional measures prepared in accordance with GAAP, certain investors and other stakeholders also use this information to evaluate our 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 our condensed consolidated interim financial statements.
Cash costs and AISC per ounce sold are Non-GAAP Measures with no standardized definition under IFRS. For further information and a detailed reconciliation to IFRS, please see the "Non-GAAP Financial Measures" section of our Management's Discussion and Analysis dated as of
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