SSR Mining Reports Fourth Quarter and Full Year 2022 Results

Full Year 2022 Highlights ⁽¹⁾

• Attributable & Adjusted Attributable Diluted EPS of $0.89 and $0.67 Per Share, Respectively

• Production of 623,819 Gold Equivalent Ounces at Cost of Sales⁽²⁾ of $985 Per Ounce and All-in Sustaining Costs (“AISC”) of $1,339 Per Ounce

• Full-Year 2022 Capital Returns of $158.8 Million, an Approximately 5.0% Yield

Fourth Quarter 2022 Highlights

• Attributable & Adjusted Attributable Diluted EPS of $0.43 and $0.12 Per Share, Respectively

• Production of 182,655 Gold Equivalent Ounces at Cost of Sales of $1,064 Per Ounce and AISC of $1,358 Per Ounce

• Strong Fourth Quarter Operating Cash Flow of $118 Million, Free Cash Flow of $97 Million

• Closed the Acquisition of an Additional 30% Interest in Kartaltepe Joint Venture, Expanding Ownership of the Çӧpler District
  
  

• Subsequent to Year-End, Released 2023 Guidance and Rolling Three-Year Outlook Confirming 700,000 Gold Equivalent Ounce Platform

DENVER–(BUSINESS WIRE)–SSR Mining Inc. (NASDAQ/TSX: SSRM, ASX: SSR) (“SSR Mining” or the “Company”) reports consolidated financial results for the fourth quarter and full year ended December 31, 2022. In addition, the Board of Directors declared a quarterly cash dividend of $0.07 per common share payable on March 30, 2023 to holders of record at the close of business on March 3, 2023. This dividend qualifies as an ‘eligible dividend’ for Canadian tax purposes.

Rod Antal, President and CEO of SSR Mining, said, “We closed 2022 with a strong balance sheet and met our revised guidance targets. We are now focused on delivering strong production and free cash flow in 2023. With the release of our 2023 and three-year guidance earlier this month, we presented our expectations for a significant year-over-year production improvement and a three-year production profile targeting 700,000 gold equivalent ounces.

Our 2023 cost guidance incorporates two significant growth initiatives for the business, the ramp-up at Çöpler’s Çakmaktepe Extension where first production is expected within the year, and waste stripping activities at Marigold’s Red Dot as we aim to optimize Marigold’s longer-term production profile. These initiatives, along with our continued advancement of the C2 expansion project at Çöpler and exploration and resource development activities across the portfolio, are key elements of our plan to sustain a longer-term production platform at or above 700,000 gold equivalent ounces annually.

Despite our continued and significant reinvestment in the business, we expect to deliver another strong year of free cash flow and capital returns to shareholders. The Company has a number of potential key catalysts targeted for 2023, including continued work on updated mine plans at Çöpler incorporating the C2 expansion project, and at Marigold highlighting the initial contribution of the New Millennium target. All considered, we see a strong and exciting year ahead for the business.”

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⁽¹⁾ The Company reports non-GAAP financial measures including adjusted attributable net income, adjusted attributable net income per share, cash generated by operating activities before working capital adjustments, free cash flow, free cash flow before changes in working capital, net cash (debt), cash costs and AISC per ounce sold a common measure in the mining industry), to manage and evaluate its operating performance at its mines. See “Cautionary Note Regarding Non-GAAP Financial Measures” for an explanation of these financial measures and a reconciliation of these financial measures to the most comparable GAAP financial measures.

⁽²⁾ During the fourth quarter of 2022, the Company has revised the “Production costs” caption to “Cost of sales” within its Consolidated Statements of Operations to provide a more accurate description of the costs and align with commonly used terminology by industry participants. No changes were made to the previously reported amounts or the applicable accounting policies. Cost of sales excludes depreciation, depletion, and amortization.

Fourth Quarter and Full Year 2022 Highlights:

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

• Solid fourth quarter operating performance: Delivered fourth quarter production of 182,655 gold equivalent ounces at cost of sales of $1,064 per gold equivalent ounce and AISC of $1,358 per gold equivalent ounce. For the full year 2022, SSR Mining reported production of 623,819 gold equivalent ounces at cost of sales of $985 per gold equivalent ounce and AISC of $1,339 per gold equivalent ounce. Production and costs were previously reported in early February 2023 and were in line with revised 2022 guidance.
• Announced 2023 guidance and three-year operating outlook: Previously announced 2023 production guidance of 700,000 to 780,000 gold equivalent ounces at consolidated cost of sales of $1,055 to $1,115 per gold equivalent ounce and AISC of $1,365 to $1,425 per gold equivalent ounce. SSR Mining’s three-year outlook highlights a strong and stable production base of approximately 700,000 gold equivalent ounces through 2025 without requiring significant capital investment. The Company believes these production levels are sustainable through the end of the decade.
• Strong quarterly free cash flow: Attributable net income in the fourth quarter was $93.9 million, or $0.43 per diluted share, and adjusted attributable net income was $25.6 million, or $0.12 per diluted share. Fourth quarter operating cash flow was $118.1 million with free cash flow of $96.7 million and free cash flow before changes in working capital of $74.1 million. For the full year 2022, attributable net income was $194.1 million, or $0.89 per diluted share and adjusted attributable net income was $144.8 million, or $0.67 per diluted share. For the twelve months ending December 31, 2022, operating cash flow was $160.9 million, free cash flow was $23.4 million and free cash flow before changes in working capital was $170.7 million.
• Continued delivery of peer-leading capital returns program: For the twelve months ending December 31, 2022, SSR Mining returned $158.8 million to shareholders, marking the Company’s second consecutive year with a capital returns yield of approximately 5.0%. Quarterly dividend payments in 2022 totaled $58.8 million, reflecting SSR Mining’s announcement of a 40% increase to the base dividend on January 31, 2022. In addition, the Company returned $100.0 million to shareholders through the cancellation of 6,053,126 shares as part of SSR Mining’s current NCIB program. Subsequent to the quarter, the Board declared a quarterly dividend of $0.07 per share to be payable on March 30, 2023.
• Robust balance sheet with strong net cash position: At the end of 2022, SSR Mining had a cash and cash equivalent balance of $655.5 million reflecting $58.8 million in dividend payments to shareholders, $100.0 million in share repurchases, $71.2 million in scheduled debt repayments, and $170.0 million for strategic M&A transactions, including the acquisition of Taiga Gold Corp. for $20.0 million and 30% of the Kartaltepe joint venture for $150.0 million. Net cash as of year-end 2022 was $387.3 million.
• Technical Report Summaries published for all producing assets: On February 23, 2022, the Company released Technical Report Summaries (“TRS”) for each of its operating assets in compliance with Subpart 1300 of Regulation S-K, which TRS were subsequently amended and released on September 29, 2022. These reports include refreshed operating and economic assumptions for each asset and provided a base case for further growth and optimization to support the Company’s target of a long-term annual production base of 700,000 gold equivalent ounces.
• Mineral Reserves and Mineral Resource: The Company reported updated Mineral Reserve and Mineral Resource (“MRMR”) figures as of December 31, 2022 in the Company’s Annual Report on Form 10-K (the “Annual Report”), including total Mineral Reserves of 7.6 million gold ounces and 8.3 million gold equivalent ounces. This MRMR update does not incorporate new drilling results or resource modeling changes since the prior MRMR’s December 31, 2021 effective date and accordingly solely reflects depletion that occurred through 2022 mining activity, stockpile changes and changes resulting from asset acquisitions and divestment activity completed in 2022.
• Çöpler operations return to steady state with record sulfide plant throughput: Gold production was 65,603 ounces in the fourth quarter of 2022 at cost of sales of $1,065/oz and AISC of $1,269/oz, reflecting the successful restart of operations that began in the third quarter of 2022. Sulfide plant throughput in the fourth quarter of 2022 averaged more than 8,000 tonnes per day (“tpd”), a quarterly record. In 2022, gold production for Çöpler was 191,366 ounces, above the revised full-year guidance, at full-year cost of sales of $985/oz and AISC of $1,328/oz. In 2023, Çöpler is expected to produce 240,000 to 270,000 ounces of gold, 55% weighted to the second half of 2023, at mine site cost of sales of $1,070 to $1,100 per ounce and AISC of $1,245 to $1,295 per ounce. Çöpler’s cost profile in 2023 reflects the ramp up of the Çakmaktepe Extension project, where first production is expected within the year.
• Marigold delivers solid cost performance in fourth quarter; poised for strong 2023: Gold production was 62,875 ounces in the fourth quarter of 2022, a solid finish that included the continued recovery of the higher grade ounces stacked earlier in 2022. Cost of sales in the fourth quarter of 2022 was $1,004/oz and AISC of $1,160/oz. In 2022, gold production for Marigold was 194,668 ounces, in line with revised full-year guidance, at cost of sales of $1,053/oz and AISC of $1,378/oz. In 2023, Marigold is expected to produce 260,000 to 290,000 ounces of gold, 60 to 70% weighted to the second half of 2023, at cost of sales of $1,000 to $1,030 per ounce and AISC of $1,315 to $1,365 per ounce.
• Seabee delivers record full-year production: Gold production was 24,709 ounces at cost of sales of $909/oz and AISC of $1,234/oz in the fourth quarter of 2022. Underground mining and plant throughput averaged approximately 1,300 tonnes per day during the fourth quarter, highlighting the ongoing success of continuous improvement initiatives at the mine. For 2022, gold production for Seabee was a record 136,125 ounces at cost of sales of $559/oz and AISC of $823/oz. Seabee is expected to produce 100,000 to 110,000 ounces of gold in 2023, 55% weighted to the second half of 2023, at mine site cost of sales of $810 to $840 per ounce and AISC of $1,160 to $1,210 per ounce.
• Strong finish to a solid year at Puna: Silver production was 2.4 million ounces in the fourth quarter of 2022 at cost of sales of $16.53/oz and AISC of $15.97/oz. For 2022, Puna’s silver production was 8.4 million ounces at cost of sales of $17.48/oz and AISC of $15.50/oz, all metrics within the mine’s original full year guidance range. In 2023, Puna is expected to produce 8.0 to 9.0 million ounces of silver, 50 – 55% weighted to the second half of 2023, at mine site cost of sales of $18.00 to $19.50 per payable ounce and AISC of $16.25 to $17.75 per payable ounce.
• Closed the acquisition of Taiga Gold Corp.: On April 14, 2022, the Company completed the acquisition of all of the issued and outstanding shares of Taiga Gold Corp. The transaction consolidated a 100% interest in the Fisher property contiguous to the Seabee mine, eliminated a 2.5% NSR royalty on the Fisher property, and added five new properties covering over 29,100 hectares to complement the Company’s existing exploration platform in the underexplored and geologically prospective Province of Saskatchewan. The Company’s Saskatchewan assets now cover an area of approximately 131,150 hectares. In 2023, up to 35% of Seabee’s exploration budget is planned for follow-up drilling of targets on the Fisher property.
• Completed the sale of the non-core Pitarrilla project: On July 6, 2022 the Company announced the closing of the sale of the Pitarrilla project to Endeavour Silver following receipt of all required regulatory approvals and satisfaction of customary closing conditions. As consideration for the sale, SSR Mining received $35.0 million in cash, $35.0 million ⁽³⁾ in common shares of Endeavour Silver, and a 1.25% net smelter return royalty on the Pitarrilla property. The sale was originally announced on January 13, 2022.
• Closed the acquisition of an additional 30% ownership in Kartaltepe: In the fourth quarter of 2022, the Company announced and completed an agreement to acquire an additional 30% ownership interest in the Kartaltepe Mining Joint Venture at the Çöpler District from partner Lidya Mining for total cash consideration of $150.0 million (the “Kartaltepe Transaction”), streamlining operating, financial and exploration activities across the Ҫӧpler District while creating tangible synergies. The Company now owns 80% of the entirety of the Çöpler District.
• Delivered strong near-mine exploration results across the portfolio: In the fourth quarter of 2022, SSR Mining announced positive exploration updates from Çöpler’s Çakmaktepe Extension, Seabee, and Marigold. These results showcase the opportunities for growth across SSR Mining’s global platform and may be incorporated into future MRMR updates as the required technical work is completed at each respective project.

Financial and Operating Highlights

A summary of the Company’s consolidated financial and operating results for the three and twelve months ended December 31, 2022 and December 31, 2021 are presented below:

Updated Mineral Reserves and Resources for Year End 2022

SSR Mining reported its updated MRMR as of December 31, 2022 in the Company’s Annual Report. For a detailed summary by asset, please refer to Item 2 Properties in the annual report, and for a reconciliation of year-over-year changes to the MRMR figures below, please see “Supplemental Mineral Reserve and Mineral Resource Information” at the end of this news release.

As per Subpart 1300 of Regulation S-K, MRMR are presented on an attributable basis.

The MRMR as of December 31, 2022 reflect depletion that occurred through mining activity, stockpile changes and changes resulting from asset acquisitions and divestments completed during 2022. SSR Mining continues to advance exploration and resource development activities at each of its assets, and this data will be incorporated into MRMR statements as the accompanying technical work so dictates. A summary of the Company’s year-end 2022 MRMR are presented below:

• Commodity price assumptions unchanged from 2021: Commodity prices used in the calculation of Mineral Reserves for both 2022 and 2021 are $1,350/oz gold, $18.50/oz silver, $0.90/lb of lead, $1.05/lb of zinc, and $3.30/lb copper. Mineral Resource prices of $1,750/oz gold, $22.00/oz silver, $0.95/lb lead, $1.15/lb zinc and $3.95/lb copper were unchanged from 2021.
• Acquisition of an additional 30% of Kartaltepe; Pitarrilla divested: In the fourth quarter of 2022, SSR Mining closed the Kartaltepe Transaction, consolidating SSR Mining’s 80% ownership of the entire Çöpler district. On an attributable basis, the transaction added 64,000 gold equivalent ounces in Mineral Reserves, 123,000 gold equivalent ounces in Measured and Indicated Mineral Resources, and 124,000 gold equivalent ounces in Inferred Mineral Resources to the Company’s MRMR. The accretive sale of the non-core Pitarrilla project in 2022 drove the reduction of silver and base metal Mineral Resources.
• Mineral Reserves: Gold Mineral Reserves as of December 31, 2022 were 7.6 million, down 5% or 0.4 million ounces as compared to year-end 2021 Mineral Reserves reflecting mine depletion. Total gold equivalent Mineral Reserves as of December 31, 2022 were 8.3 million ounces, down 6% or 0.6 million ounces from 8.9 million ounces as compared to year-end 2021.
• Measured and Indicated Mineral Resources: Gold Measured and Indicated Mineral Resources as of December 31, 2022 were 5.8 million ounces, effectively flat as compared to year-end 2021. Total gold equivalent Measured and Indicated Mineral Resources were 7.3 million ounces, a decrease of 9.5 million ounces from the prior year as a result of the divestment of the Pitarrilla project in 2022.
• Inferred Mineral Resources: Gold Inferred Mineral Resources of 4.7 million ounces increased by 2% or 0.1 million ounces as compared to year-end 2021 Inferred Mineral Resources, a result of the acquisition of an additional 30% interest at the Kartaltepe licenses. Gold equivalent Inferred Mineral Resources of 5.8 million ounces decreased by 6% or 0.3 million ounces as compared to year-end 2021 Inferred Mineral Resources. This was largely driven by lower silver ounces as a result of the sale of Pitarrilla in 2022.

SSR Mining Mineral Reserves and Resources as of December 31, 2022 ⁽⁸⁾

Çöpler, Türkiye

(amounts presented on 100% basis)

For the three months ended December 31, 2022 and 2021, Çöpler produced 65,603 and 92,069 ounces of gold, respectively.

Contacts

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

Alex Hunchak, Director, Corporate Development and Investor Relations

SSR Mining Inc.

E-Mail: [email protected]
Phone: +1 (888) 338-0046

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