SSR Mining (SSRM) 6 Nov 24 2024 Q3 Earnings call transcript
2min read In the latest earnings call for SSR Mining, executives provided a detailed update on the company's third quarter performance and the ongoing recovery efforts following the Çöpler incident. The call, led by Executive Chairman Rodney Antal, was marked by a focus on key themes and trends that underscore the company's financial health, operational performance, and strategic outlook.
Recovery and Remediation at Çöpler
The first topic of discussion was the progress made in recovering from the incident at Çöpler. Rodney Antal reported that all missing colleagues have been recovered and returned to their families, while containment and remediation efforts have been successful in preventing any contamination to local soil, water, or air. The company is currently working with Turkish authorities to finalize plans for a permanent storage facility, with discussions underway for approval and construction. The remediation and containment work, estimated to cost between $250 million to $300 million, is ongoing and is expected to take 24 to 36 months to complete.
Financial Results and Operational Highlights
Turning to the financial results, SSR Mining reported a net income of $0.05 per share in the third quarter, with an adjusted net income of $0.03 per share. The company's consolidated financial statements, filed on EDGAR, SEDAR, the ASX, and its website, show that third quarter cash generated by operating activities was negative $1 million, while free cash flow was negative $34 million. Despite these challenges, SSR Mining remains financially strong, with a net cash position of $104 million and total liquidity of $834 million.
Operational Performance at Marigold, Seabee, and Puna
The operational performance of SSR Mining's key assets was also highlighted, with Marigold, Seabee, and Puna all showing promising results. Marigold's production was in line with expectations, with the fourth quarter expected to have the lowest production and highest costs of the year. Seabee, which faced temporary suspension due to forest fires, is now focusing on evaluating and drilling near-mine extensions and potential mine life extension opportunities. Puna, meanwhile, has achieved record throughputs at the Pirquitas processing facility and is expected to produce 10 million to 10.5 million ounces of silver in 2024.
Exploration and Growth Opportunities
The call also touched upon the company's efforts to advance brownfield exploration programs and site establishment and engineering activities at Hod Maden. These initiatives are expected to contribute significantly to SSR Mining's portfolio and underscore the company's commitment to operational excellence and growth.
Looking Ahead
In closing, Rodney Antal expressed optimism about the company's future, highlighting the strong position SSR Mining is in financially and operationally. The company is looking forward to a strong close to the year at Marigold, Seabee, and Puna, and is actively pursuing opportunities to improve its business and extend its operating life through brownfields growth projects. With the ongoing discussions with regulators regarding the restart of Çöpler, SSR Mining is poised for a promising future.
Overall, SSR Mining's earnings call painted a picture of a company that is not only recovering from a significant incident but also positioning itself for future growth and success. With a strong operational performance, a solid financial position, and a clear focus on strategic initiatives, SSR Mining is well-positioned to weather any challenges and capitalize on opportunities in the mining sector.