SSR Mining (SSRM) Q2 Earnings call transcript Jul 31, 2024

In the recent SSR Mining Inc. (NASDAQ: SSRM) earnings call for the second quarter of 2024, the company provided an update on the Copler incident and reviewed its financial results. The call, led by Executive Chairman Rodney Antal, CFO Michael Sparks, EVP of Operations and Sustainability Bill MacNevin, and Director of Corporate Development and Investor Relations Alex Hunchak, highlighted the company's ongoing efforts to address the Copler incident, as well as its strong financial performance across its Marigold, Seabee, and Puna operations.

Copler Incident Update

The primary focus of the call was on the Copler incident, which tragically resulted in the loss of nine lives. SSR Mining has made significant progress in the recovery of the missing colleagues and in the containment and remediation of the site. All of the planned containment infrastructure, including a grout curtain, cofferdam, buttress, and pumping systems, has been successfully installed, and public statements from Turkish government officials indicate no contamination to local soil, water, or air. The company has also moved over 70% of the displaced heap leach material into temporary storage locations, with over 90% of this material coming from the Sabirli Valley. The total remediation spend for the second quarter was $55 million, with a total estimated spend of $250 to $300 million. Discussions with Turkish government officials are ongoing regarding the remediation plan, including the approval and construction of the east storage facility.

Financial Performance

The second quarter of 2024 saw SSR Mining produce 76,000 gold equivalent ounces at an all-in sustaining cost of $2,116 per ounce, with cash, care and maintenance costs at Copler representing approximately $245 per ounce. The company's Marigold, Seabee, and Puna operations have all performed well against plan, with combined production of 156,000 gold equivalent ounces for the first half of 2024. SSR Mining reported an attributable net income of $0.05 per share in the second quarter, with adjusted net income per share at $0.04, reflecting the exclusion of a mark-to-market gain on its portfolio of marketable securities. The company's cash position remained strong at $358 million, with an undrawn revolving credit facility and an anticipated increase in production and free cash flow in the second half of 2024.

Exploration and Future Plans

SSR Mining continues to advance brownfield exploration programs at Marigold, Seabee, and Puna, with a focus on extending mine life and enhancing operational efficiency. The company is also moving forward with site establishment and engineering activities at Hod Maden, aiming for a construction decision in the future.

Conclusion

The SSR Mining Inc. earnings call for the second quarter of 2024 provided a comprehensive update on the company's ongoing efforts to address the Copler incident while maintaining strong financial performance across its operations. The company's commitment to remediation and restarting operations at Copler, along with its strategic exploration and expansion plans, positions SSR Mining well for future growth and success.

The call also highlighted the importance of effective communication and transparency with stakeholders, as evidenced by the open dialogue between management and shareholders regarding the Copler incident and the company's financial performance. SSR Mining's dedication to safety, sustainability, and stakeholder engagement is a testament to its strong corporate culture and leadership.

Overall, the earnings call painted a picture of a company that is not only navigating challenges effectively but also capitalizing on opportunities for growth and expansion. SSR Mining's focus on operational excellence, stakeholder engagement, and strategic exploration bodes well for its future success.