Q4 2023 SSR Mining Inc Earnings Call
Operator: Hello everyone, and welcome to SSR Mining's 4th Quarter and Full Year 2023 Financial Results Conference Call. This call is being recorded. At this time, for opening remarks and introductions, I would like to turn the call over to Alex Honchek from SSR Mining. Please go ahead.
Hello, everyone and welcome to SSR Mining's fourth quarter and full year 2022 financial results Conference call. This call is being recorded at this time for opening remarks, and introductions I would like to turn the call over to Alex Hunt check from SSR mining. Please go ahead.
Alex Honchek: Thank you, Operator, and hello, everyone. Thank you for joining today's conference call, during which you'll provide an update on the Chopler incident, as well as a brief review of our fourth quarter and full year financial results. Our 2023 Consultative Financial Statements have been presented in accordance with U.S. GAAP. These financial statements have been filed on EDGAR, CDAR, the ASX, and are also available on our website
Thank you operator, and Hello, everyone. Thank you for joining today's conference call during which we'll provide an update on the chalkboard incident as well as a brief review of our fourth quarter and full year financial results.
Our 2023 consolidated financial statements had been presented in accordance with U S. GAAP.
The financial statements have been filed on Edgar and SEDAR.
And are also available on our website.
Alex Honchek: To accompany our call, there is an online webcast, and you will find the information to access the webcast in our news release related to this call. Please note that all figures discussed during the call are in U.S. dollars unless otherwise indicated. Today's discussion will include forward-looking statements, so please read the disclosures and the relevant documents. Additionally, we will refer to non-GAAP financial measures during our discussion and in the accompanying slides.
To accompany our call Theres, an online webcast, you'll find the information to access the webcast in our news release relating to this call.
Please note that all figures discussed during the call are in U S dollars unless otherwise indicated.
Today's discussion will include forward looking statements. So please read the disclosures in the relevant documents. Additionally.
Additionally, we will refer to non-GAAP financial measures during our discussion and accompanying slides.
Alex Honchek: Please see our press release for information about the Comparable Gap Measure. Rod Antle, Executive Chairman, will lead today's call. I will now turn the line over to Rod for his opening remarks. Thank you, Alex.
Please see our press release for information that both the comparable GAAP measure.
Brought an executive chairman will lead todays call.
I will now turn the line over to Rob for his opening remarks.
Thank you Alex.
Rod Antle: I'm going to speak to the ongoing situation at Cherbrooke. Personally, I want to pass on our deepest sympathies and condolences to the families, friends, colleagues, and communities who have denied access to personnel who remain missing. This is an incredibly difficult time for everyone who has been impacted by the incident, and we are still processing this tragic loss and will for some time. In his honor and respect, I would like to take a moment's silence.
Good to speak to the ongoing situation.
Firstly.
And of course, one of our deepest sympathies and condolences to the families.
Brian.
Colleagues.
Communities.
Non personnel to revise Missy.
This is an incredibly difficult time for everyone, who has been impacted by the incident.
We are still processing these tragic loss.
And will be for some time.
So in every respect.
I would like to take a bite of installers.
Rod Antle: Thank you. I'm sure you can appreciate that the situation at Chirplow is dynamic, and while I will provide some detail today... There are many more questions you may have that I'm not able to answer at this time. I would appreciate your understanding during the Q&A. The focus of the discussion today will be on the internet itself and the activities and priorities of Chirpa at this time. So let's walk through the facts as they currently stand. At approximately 6.30am Eastern Time on the 13th of February, a significant slip occurred from the heap ledge path, with an estimated 18 to 20 million tons sliding into the Suburley Valley and the Manganese Pit. All operations at Chirpa were immediately suspended.
Thank you.
I'm sure you can appreciate that this situation that chip is dynamic.
While I will provide some detail today.
There are many more questions you may have.
Well to answer at this time.
I would appreciate your understanding during the Q&A.
The focus of the discussion today will be on the incident itself and.
And the activities and priorities in terms of at this time.
So let's walk through the facts as they currently stand.
And approximately 630 a M.
Based in part on the 13th of February it's significant.
From the heap Leach pad.
The estimated 18 to 20 million tonnes sorry.
Severely rally.
The manganese pit.
Full operations Chipper will remain suspended.
It was concerned.
Rod Antle: It was confirmed that nine personnel were unaccounted for once the confirmatory head counts were completed in the hours following the incident; immediate efforts will focus on safely conducting a search and rescue. Various government agencies were immediately deployed to Chirpla, including the search and rescue team. Since then, we have been supporting the activities at site under the direction of the various government agencies. I would like to recognize and thank the Turkish authorities for their rapid response and overwhelming support to the debate rather than repeat all the details contained in the press releases that are available on our website. Let me summarise the current situation and focus of Chirpling. The immediate focus was on the search and rescue effort.
Personnel.
Around the candidate pool once the confirmatory head counts were completed in the hours following the incident.
Media units it looks like this all sites conducting search and rescue.
Various government agencies, mainly deploy chatbot, including the search and rescue teams.
Okay.
We have been supporting the activities.
Under the direction of the various government agencies.
I would like to recognize and thanks <unk> for the rapid response and overwhelming support.
Rather than repay all the details.
In the press releases that are available on our website.
Let me summarize the current situation and focus is to put it.
Yeah.
It was on the search and rescue efforts.
Rod Antle: This was initially suspended due to the instability of the heat leach pad, but efforts to locate the personnel have since resumed. Our priority is to safely recover and return our people to their families. In addition, efforts have been focused on three other areas.
It was initially suspended due to the instability in the Haynesville.
But if it's too light tight personnel I've seen regimes.
Our priority is.
Thanks, Lee recover and return to our people to their families.
In addition.
If it's a big focus on three other areas.
Rod Antle: First, to agree on and initiate a plan to stabilize the heap leach pad, allowing work to safely continue on the recovery of our missing people. Initial work began on February 23 to stabilize portions of the heap leach pad, and extensive monitoring is taking place using drones and radar. Work to determine the final overall plan and approach to stabilize the pad, including the use of remote equipment, is continuing to advance. The second priority has been the containment of the Siberli Creek area. In this regard, the containment pond was immediately constructed, and the installation of a concrete curtain at the bottom of the valley is underway. Water diversion systems at the top of the Suburban Valley are also underway. Additionally, the Turkish government is conducting environmental monitoring of surface water, ground water, soil, and air quality in the region.
First to agree John.
And an issue I plan to stabilize the heap leach pad, allowing what precisely continue.
On the recovery, maybe I'm missing people.
Issue work began on February 23, two stabilized portions of the heap Leach pad and extensive monitoring is taking place using drawings and radar.
The work to determine the final overall plan and approach.
Stabilize the pad, including use of a remote equipment is continuing to advance.
The second priority has been on the containment of a severely criteria.
In this regard and containment pond was immediately construct it Andy.
Installation of the concrete code at the bottom of the valley is underway.
Order got vision systems or the top of the severely exactly.
So I wonder why.
Turkey's government is conducting environmental monitoring and surface water groundwater soil and air quality in the region.
Public comments from the Turkish government to date indicate that test results have been negative with respect to potential contamination in the locations are being monitored.
Rod Antle: Public comments from the Turkish government to date indicate that test results have been negative with respect to potential contamination in the locations being monitored. However, these results are preliminary, and additional testing will continue. Finally, and number three, is the ongoing discussion with the various government ministries to determine the permanent storage location for the heap leach material. Moving on to just a few other facts. As a result of the incident, the Chirpler EIA has been revoked. Fixed personnel are being detained and are facing charges in relation to the incident, and we're ensuring they receive the necessary support while respecting the Turkish legal process. Investigations led by the Turkish government are underway to determine the causal factors leading to the slip.
These results are preliminary and additional testing will continue.
Finally, and number three is the ongoing discussion with the very various government ministries Qi chairman to permanent storage location for the heap Leach material.
Moving onto just a few other facts.
As a result.
Incident at Chaplin.
<unk> has been revoked.
Six personnel.
They design and are facing charges in relation to the internet and we're ensuring that received the necessary support while respecting the Turkey prices.
Investigation led by the Turkish government are underway to determine the causal factors leading to the sleep.
Rod Antle: We expect this to take some time to complete, and until then, we have no further comments to make. As we look ahead, we continue to work closely with government officials and regulators and will update the market as facts present themselves moving forward. With respect to our financial results, Given that a lot of the information was pre-released with the technical reports on the 13th of February, I intend only to highlight a couple of key points. First, the business ended 2023 with a strong liquidity position with total cash of $492 million, no near-term debt maturities, and continued cash flow generation from our three other operations.
We expect this to take some time to complete and until we have no further comments to make.
As we look ahead, we continue to work closely with government officials and regulators and we will update the market in fact present themselves moving forward.
Okay.
Two of our financial results.
A lot of the information was pre released with the technical reports on the 13th of February.
I would like to highlight a couple of key points.
First the business into 2023 with a strong liquidity position with total cash of $492 million.
You need to have debt maturities and continued cash flow generation from our three.
Three other operations.
Looking forward the tariff.
Rod Antle: Looking forward, the Chervler incident will have an impact on our financial results in 2024. We continue to evaluate and assess these potential impacts, as laid out in today's 10k filing. In the first quarter of 2024, and as noted in the 10-K, we anticipate recording an impairment on the heap leach inventory directly impacted by the Chirpler incident, and we'll also evaluate the Chirpler long-lived asset group for any additional impairment. Given the uncertainty surrounding these items, we are taking some steps to preserve our cash position until we have more fidelity around the forward-looking cash requirements of the business. As a result, we have suspended our quarterly dividend in the automatic share purchase plan we put in place last year, given our focus is on Turkey Air and Chirpler.
Blue incident will have an impact on our financial results in 2024.
We continue to evaluate and assess the potential impact as laid out in today's 10-K filings.
In the first quarter of 24.
As noted in the 10-K we.
Recording any payment.
Leach inventory directly impacted by the true Glory incident.
So we'll evaluate jetblue long lead Thats, a great 20 additional repayment.
Given the uncertainty surrounding these items we're taking.
Some steps to preserve our cash position until we have more fidelity around the forward looking cash requirements of the business.
As a result, we have suspended our quarterly dividend.
An automatic share purchase plan, we put in place last year.
Given our focus is on <unk>.
Sure.
Rod Antle: We've also temporarily placed further investment at Houghton Madden on hold at this time. We will revisit the timeline and approach in due course. This has obviously been a very difficult time for everyone impacted by the events of February 13.
We have also temporarily place further investment at Madden on hold at this time.
We will revisit the timeline and approach in due course.
This has obviously been a very difficult time for everyone impacted all the events of <unk>.
And we are doing everything we can to support our colleagues and the various stakeholders on the ground and take care.
Rod Antle: And we are doing everything we can to support our colleagues and the various stakeholders on the ground in Turkey. Clearly, we are in a period of calm and serenity, and there is no doubt that we have some challenges ahead as we focus on the recovery efforts at Sherpa. In the meantime, operations are continuing at Marigold, CB, and CUNA.
Clearly we havent.
We're in a period of some uncertainty and there is no doubt that we have some challenges ahead as we focus on the recovery efforts.
In the meantime operations are continuing at Marigold, Seabee and Puna.
Operator: Turn the line back to the operator for any questions. I will again note that I will keep the discussions on the incident to my prepared remarks. That said, we will do our utmost to answer questions related to the 2023 operating and financial results of the other properties. Co-operator, please go ahead with the questions. Thank you, Mr. Antel. We will now begin the question and answer session. To join the question queue, you may press star, then 1 on your telephone keypad.
Ill turn the line back to the operator for any questions I will the guidance.
Keep the discussions on the incident to my prepared remarks.
That said, we will do our utmost to answer questions related to the 2023 operating and financial results of the other properties.
So operator, please go ahead with questions.
Thank you Mr. Chantal.
We will now begin the question and answer session. They joined the question queue. You May Press Star then one on your telephone keypad, you will hear a tone acknowledging your request if youre using a speakerphone. Please pick up your handset before pressing any keys to withdraw your question. Please press Star then two.
Operator: You will hear a tone acknowledging your request. If you are using a speakerphone, please pick up your handset before pressing any buttons. To withdraw your question, please press star, then 2. Your first question comes from Don DeMarco with National Bank Financial Services. Please go ahead.
The first question comes from Don Demarco with National Bank Financial. Please go ahead.
Don Demarco: Thank you, operator. And good afternoon, Rod and team. First of all, my condolences to everyone with the company and, in particular, the missing personnel and their families and colleagues. Now, Rod, I don't want to overstep what your intentions were for this call, but maybe if you could just clarify, did you want no questions? on the Tripler incident, or am I able to ask a few questions to get additional color on some of the points that you made?
Thank you operator, and good afternoon, Brad and team first of all my condolences too.
Everyone with the company and in.
Randy.
Personnel and their families.
Colleagues.
<unk>.
No Rod I don't want to overstep, what your intentions are for this call.
But maybe if you could just clarify did you want no questions.
On the Triple Crown incident, or am I able to ask a few questions.
To get additional color on some of the points that you made.
Yes, you can ask questions I'll just.
Rod Antle: You can ask questions; I'd just be respectful of the fact that the incident is only two weeks old, and clearly, we're focused on those areas that I mentioned in the call, but I'll do my best to answer anything else. Thank you. Is there any chance that the slip, could you talk about your insurance, the potential that the slip might be insured?
Just pretty respectful to the the fact that the eastern it's only two weeks old and yeah, clearly, where we're a critical mass of areas that I mentioned in the call, but I'll do my best to answer anything else.
Thank you.
Is there any chance that the the split right well.
Could you talk about your insurance is it does it parents potentials that they slipped might be insured.
Rod Antle: As normal, of course, we have notified our insurers of this slip, and we'll continue to work with them in the ordinary course as the final investigations and facts come to hand, but at this stage, they have been notified. OK. And so, as you described, one of the big efforts right now is containing the extent of the contamination. There is a big earthworks process underway. Do you have any sense about the cost per ton to move the material? And is the material accessible, or are there parts where some of this slipped heap might be difficult to reach given steep slopes or other factors?
As a as normal course, we have notified our insurers.
All of these slip and guy.
We will continue to to work with.
In the ordinary course has.
Yeah.
On the call.
Final investigations and facts come to hand, but at this stage of being notified.
Okay.
So how do you describe there's one of the big efforts right now it is in containing the extent of the contamination is a big earthwork.
Process underway do you have.
Any sense about that cost per ton per ton can move the material.
And anything material like.
Accessible or their parks, where kind of the split he might be difficult to reach giving them.
Well kind of a cracker.
Yeah at this stage don't Theres really no fidelity around the numbers I'll just tell you what the areas of focus.
Rod Antle: Yeah, at this stage, Don, there's really no fidelity around the numbers. I'll just tell you what the areas of focus are for us. We continue to work actively on the heap leach pad stabilization. That's really the key priority. So we can continue with those efforts to recover the missing people and return them to their families.
Four CS we we continue to Hum work actively on the heap Leach pad stabilization. That's really they are the key a key priority.
So we can continue with those.
Efforts to recover.
The missing people to return to their families.
Rod Antle: The containment area around the Suburley Valley, in particular, is well advanced, as I mentioned, and we'll continue until we've finished that work. And then really, the last piece around the discussions with the various government authorities around the final area for the material to be placed is really only just, really just getting underway. So I'm too early to put any more color on that.
The containment area around a severely valley in particular, he is well advanced as I've mentioned.
Most of them will continue until we have we finish that work.
And really the last piece around the discussions with the various governmental authorities around the a final area for the material to be placed is really already just.
How do you really just got underway, so I'm too early to put any more color on that.
Rod Antle: Okay, fair enough. And then maybe just as a final question, in the release this afternoon, it mentioned that there is a potential impairment charge in Q1, and it stated $73 million, and it referenced that that makes up 19% of the Chirpler total gold inventory. I just want to clarify, does that represent 19% of the heap leach gold inventory or the total heap leach and sulfide gold inventory? It is the total of both; the oxides and sulphides gone; it's all the imagery of Chirper. And the amount that we're referring to is the upside.
Okay fair enough.
And then maybe just a final question and released this afternoon. It mentioned that theres the potential impairment charge in Q1 70.
$73 million it referenced that that makes up 19% share player total gold inventory just wanted to clarify does that represent 19% of the heap Leach gold inventory or the total.
Breach and sulfide Golden Pickering.
It is a total of both the oxides and sulfides don't touch.
That's all that all the inventory of children.
And then beyond that we're referring to as yet.
Okay. Thank you for that and once again, my condolences to the SSRI and team and everyone involved.
Rod Antle: Okay, thank you for that. And once again, my condolences to the SSRM team and everyone involved. Put it back to the operator. We appreciate that.
Put it back to the operator, we appreciate it and I think back to the queue.
Operator: Thank you. That concludes the question and answer session. I would now like to turn the call back over to Mr. Anthel for any closing remarks. All right. Thank you, Operator. And again, thank you all for joining us. Goodbye for now. This concludes the conference call. You may disconnect your lines. Thank you for participating and have a pleasant day. Dollars do you. Thank you for watching!! Please Like, Comment, and Subscribe, Aircraft Hunter, Mike Parkin, Ryan Thompson, Carl Edmunds, Gregory Martin, Adam Graf, Dalton Baretto, SSR Mining Inc.
Thank you Don.
This concludes the question and answer session I would now like to turn the call back over to Mr. Until for any closing remarks. Please go ahead.
Great. Thank you operator and again, thank you all for joining us.
Goodbye for now.
This concludes the conference call you may disconnect. Your lines. Thank you for participating and have a pleasant day.
Yeah.
Yeah.
Right.
Okay.
[music].
Okay.
[music].
Yeah.
[music].
Yeah.
Okay.
[music].
Yeah.
[music].