SSR Mining (SSRM) 6 Nov 242024 Q3 Earnings call transcript

Hello, everyone, and welcome to SSR Mining's Third Quarter 2024 Financial Results Conference Call. This call is being recorded. At this time, for opening remarks and introductions, I would like to turn the conference call over to Alex Hunchak from SSR Mining.

Thank you, operator, and hello, everyone. Thank you for joining today's conference call, during which we'll provide an update on the Çöpler incident as well as a review of our third quarter financial results.

have in statements with financial consolidated been accordance presented U.S. Our GAAP. on statements on the have financial EDGAR, our been available These also filed SEDAR, are ASX website. and will an accompany U.S. in webcast are figures release call. Please webcast, To discussed there this news information is to that call, and access our our you in note find relating the during the to call online all the indicated. otherwise unless dollars please read Today's the in statements, discussion will documents. include the so forward-looking relevant disclosures

during will the our Michael press Chairman, and for today's GAAP refer accompanying to Bill I Please we information joined comparable Sparks, now measures slides. financial Additionally, over Officer; on and the call. will discussion MacNevin, non-GAAP the line by will Rod. Financial be Executive in to Operations see EVP, release Sustainability turn Chief measures. Rod our Antal, about and

everyone Thanks, areas on an joining for us thanks today. summarizing with date Çöpler, the and the to Great. going call forward. update start focus completed going in Alex, today's for to I'm of work key

With and returned and of preparing to mine. the our fourth, to failure; of for third, and since been: We update of the Çöpler progress the heap the operational site; the investigation Puna. of missing incident. containment missing on and quarter results Seabee financial have their Marigold, key for have leach recovery colleagues; remediation X been respect highlights Çöpler, an then X priorities the we've These individuals cause made At provide into on the colleagues, root restart first, the good recovered the all third families. will two, the our and the

impacted and families We Çöpler are members support incident. community continuing by to the the the

government proving sampling million to the air have the containment material no has into to at successfully heap continue infrastructure date of contamination tonnes officials continued site. Valley. displaced been recordable we from In Turkish the of to XX all to progress Sabirli temporary local Good Turkish has the including from locations. remediation the all material are progress or in soil, been Second, leach to displaced that the effective. substantially has made over reiterate Public been be authorities, with there statements and partnership the locations, the installed planned storage moved water with

of part the and previously As closed will leach no permanently processing remediation work future will leach heap the at and place disclosed, as be take heap Çöpler. pad

on government -- which remediation of We are of approval and estimated XX and between which continuing spent $XXX work close to $XX $XXX storage is to million. material. The of the third million $XXX including and East final Çöpler permanently to will was plan, of Turkish at complete. permanently spend total store April Çöpler, will bringing facility, the take containment remediation activities months to officials discussions the total remediation million the with XX displaced XXXX, all a cost million quarter to since construction In around remediation the this X

design investigations the facility each not a and review point prior reviews event. construction incident review independent to heap relative the To to parameters. The nonconformance to of XXXX underlying engineering independent conformance heap the leach of the with of also shortly engineered approved design third-party the after the restart. experts the last cause operations material construction potential by commissioned this expansion the incident the subsequent any Çöpler with leach has production We heap design, Third, across The date, on life with the facility, heap of leach was operation of of commencing construction investigation. stages respect ensure and and facility engineering conducted the design the Throughout prepared identified into to facility. reviewed various the began leach thereafter to or third-party engineered, initial firms. in third-party were parameters. The

to continue advance could of reinstated, the the permits the regulatory it required initial point. Çöpler at to that restart authorities mine. within permits the the operations is from for the with approvals, anticipated restart XX closely Çöpler We are including days relevant operating work Once all that

So now will to where on let's quarter third Slide discuss Michael results. X, move the

Thanks, Rod, and afternoon, good everyone.

Seabee an quarter both costs care cash to incurred temporary ounce. equivalent XX per Çöpler equivalent ounces approximately operations combined due maintenance to care production restarted XXXX gold on sustaining costs XX. and ounces. Third fires which were $X,XXX and was and Seabee, and Marigold, all-in XX,XXX at forest maintenance includes at gold into and placed produce August have XXX,XXX was Puna October of representing ounce, Year-to-date, $XXX subsequently on Seabee

advance exploration brownfield which the and to will discuss at we continue Bill Marigold, Puna, Seabee programs During quarter, later.

third share recorded and per results. to a share site establishment recorded largely at gains reflecting tax Hod engineering for look the Maden the exclusion exchange financial We minor the to progress. On quarter, Additionally, net quarter. adjusted net at while was the X foreign activities in continue income of brief income of per Slide in $X.XX, $X.XX and attributable

Çöpler fourth remain $XXX to in of position manage liquidity well of remediation strong are we to reinvestment cash quarter not impact quarter while was discuss across quarter, our in expenses of remediation as position net negative business. On X flow million. operations total and with included care both and continue third these to for generated a existing are reminder, cash liquidity Marigold. will the an spend million, for our activities needs million a negative cash do full million. was $X at Slide a We adjusted $XX finished at adjust free Çöpler Çöpler, cash million With our well and and the in the outlook and Bill total $XXX positioned $XXX costs in generation with the net at As as flow and costs operating by production improved we cash financially and where Including and the start income. Seabee the maintenance the free

production XX,XXX line third was of ounces with Marigold's in quarter Michael. Thanks, expectations.

meet Marigold the the mine guidance track XXX,XXX quarter plan remains on XXX,XXX the As calls year. has of production and XXXX fourth to its of highest production full to ounces. lowest year the for, cost

we AISC year to costs to from the increase gold However, in due approximately expect with costs. component price guidance, Marigold's royalty costs Of costs increased higher-than-expected the predominantly and XX% resulting now increased full royalty maintenance is higher associated strong XXXX.

desktop exploration operating the to expect and We into as during replace to these and cost advanced continue both depletion at Valley of Buffalo persist look life. expand pressures we to quarter Marigold's mine XXXX. Brownfield further potentially studies

suspension on August Seabee, fires process of operations mine the XX in production At our Thankfully, Seabee. quarter the impacted. to vicinity fires injured forest XX,XXX the plant of due not to were on were Now third by temporary and the in these employees Santoy materially mine. ounces of reflected of none

delineate is a evaluating targets. opportunity. and and suspension, as aggressively were drilling While damaged, Porky per $X,XXX October mineralization focus AISC opportunity advancement better the and some Seabee including piping remote studies ounce. team XXXX XX,XXX Seabee near-mine to XX. Due continues restarted full equipment, the guidance targets power operations to fully extensions the Porky continued extension to existing exploration West of mine now at the to technical is advancing life $X,XXX to potential represent equipment ounces on year the well XX,XXX The poles, underground of was Porky as on Seabee's and to

vegetation cleared by impacted was the program drilling evaluate exploration surface cover our third quarter, surface the provided new fires forest fires the the coming team opportunities in targets in seasons. by with the While to have field

facility. is quarter, to reflecting Owing the operating third Puna. X.X results the ounces more million midpoint ounces of million silver last to than a in X for Puna produced quarter million ounces in produce expected consecutive of on silver X on over silver Now a an increase Pirquitas throughputs of XXXX, XX.X quarters, now processing to XX record the to second Puna basis. strong million of of

ounce unchanged, are quarter expectations the margins AISC third cost free the price significant in silver per year current full Puna's in flow of Puna's cash the demonstrated environment. $X,XXX While

and continued through through extensions operations technical Cortaderas near-mine to evaluate at of Chinchillas work the target extend In to continues addition, and drilling. advancement opportunities Puna potential at exploration

to closing turn I'll remarks. for Now Rod back

Great. Thanks, Bill. thanks, Michael, and

we the potential are towards milestones As to all X mentioned continue we on commitments commitments I path important mentioned, These of I progress a the following fronts. the And out incident. good the restart operation. make Çöpler set in

to we'll continue forward and close and to advance and to looking brownfields to we a are strong year We the our Puna, Seabee Marigold, business at as growth improve move of excellence, XXXX. opportunities initiatives each into projects operational through

to contributor provide Hod to and portfolio project high-quality Maden, have Michael to XXXX expect anticipated demonstrate forward. update normal will we a at next be mentioned, asset work year. To exceptionally the capital As date, on that early going an guidance our update spend with our to key our continued continues an advance we our

operator So for call going turn may Thank over to the the any you questions with have. I'm that, to you.

comes Habib Ovais Instructions] [Operator from question today Our from Scotiabank. first

of couple from a just the on Starting Çöpler Just questions off remediation. me.

talked Anything obviously, this storage storage -- in more waiting for, you of you be I color permits that sort Any need else do mean, at facility one facility of go to right forward going would -- now. about, approvals kind appreciated. guess, approvals, need? What then terms go You've of that point. permanent that? you're And what Are you're I on temporary with obviously, to a to there of kind kind required? of

remediation status of perspective are Valley. right the where key substantially I the point from Look, pleasing Yes. all is of Thanks,. materials now a think is we the Sabirli out the

what news. did one. when the that a final we for design we really facility and to didn't the we'd of sort be have So nor the good would of ultimate storage that's have course, happened, And recreate incident expect

going Turkish permanent consultation but had of So for to are an facility, in we as it since only a with foreclosure. options been the regulations not what from date, the define locate engineering we've the perspective through well as requirements the that meeting commitments government from various the also the storage that

which of of met discussions progressed. regulators going requirements all And as has the ongoing, the chosen, all termed been Ovais. the that has And engineering was well. type we The closure is facility. on be work the location first which good, this the that ensure is country. this in with remember, The storage are to will we've So have of

taking all will that's making steps. the sure be right we're And the once we're all done, that So forthcoming. approvals

the start that we'll next year. then the efforts So we moving materials and do around that construction the expect the permanent from to temporary the locations then And one. point, in early

in EIA. I the EIA. the that in back, tonnes about in just was And X,XXX per versus terms kind of of you're talking tonnes kind day of now day XXXX of EIA, XXXX per reverting believe, the it's to -- terms the X,XXX And

all X,XXX versus restart there. a day the get at necessary be looking Just that you you restart, then at would per the some Assuming X,XXX? approvals to tonnes clarity

Ovais. correct, that's Yes,

was disclosed, the appropriate court. country government on administrative we've to as cancellation, the in the with in an appeal those look, efforts think, departments. going I appeal There case is in conjunction

is But So that background. XXXX position the in limits continuing X,XXX to which the is tonnes back EIA, the day. to throughput per the rates default

be fallback refresh in year. position, So today, in assuming as we future, the the we and to that moving know and will future, And those will those we'll things that the we that accelerate just anyway the next accordingly. into do being then it be have would on all EIA would -- efforts equal, plan an

And just me. last question for

the regulators, with restart you're remediation remediation any Or with your is the the of taking complete? can terms In place? restart sort while all wait have to discussions is until having here, over you of that restart does

are not It's to of as It's and that we've as we've completed, still I and on Çöpler are had are at conversations. other imagine, continuing are conversations had those all continually, I of And sort some there's levels -- remediation underway can those and of efforts mentioned, precursor it. some efforts actively of really discussions many underway all ongoing to dependent and the a the you that government that are currently the or evolve. think around

Çöpler all the government incident, So because commitments helps we're with good out we're various on to all make conversations while condition at our departments that a but work, restart to and it's acting the dialogue post Çöpler. we'll not the achieve have those continue this to it having necessarily ultimately the we finish

this do you joining at well [Operator And today's questions question-and-answer session presentation. We today's we'll as ladies I'm additional call. the close Instructions] and gentlemen, for no thank showing as conference time,

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