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 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 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.

What you will provide an update on the incident as well as a brief review of our fourth quarter and full year financial results.

Our 2023 Consultative financial statements had been presented in accordance with U S. GAAP.

These financial statements have been filed on Edgar and SEDAR. The ASX and are also available on our website.

Alex Honchek: To accompany our call, there is an online webcast, and you will find 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 and 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.

Rod Antle: 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 all. I'm going to speak to the ongoing situation at Cherklow. 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. It will be difficult for some time.

Please see our press release for information that both the comparable GAAP measure.

Broad handheld as executive Chairman will lead todays call.

I will now turn the line over to Rob for his opening remarks.

Thank you Alex.

Good to speak to the ongoing situation and Tesla.

Firstly I won't.

And of course, one of our deepest sympathies and condolences to the families.

Friends.

Colleagues.

Communities.

Non personnel who remain missing.

This is an incredibly difficult time for everyone, who has been impacted by the incident.

We are still processing these tragic loss.

And we will be for some time.

Rod Antle: In the spirit of respect, I would like to take a moment's silence. Thank you. I'm sure you can appreciate that the situation at Chirpmark 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 CHRPR at this time. So let's walk through the facts as I currently stand. At approximately 6.30 a.m. Eastern Time on the 13th of February, a significant slip occurred from the Heapledge Pass, with an estimated 18 to 20 million tonnes of material sliding into the Suburley Valley and the Manganese Pit. All operations at Chirpa were immediately suspended.

And this all in every respect.

I would like to take a vitamin solvents.

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 of chips over this time.

So let's walk through the facts as they currently stand.

And approximately 630.

Eastern time on the 17th of February a significant sleep.

From the heap Leach pad.

The estimated 18 to 20 million tonnes sorry.

Severely rally.

And the manganese pit.

Full operations, a chipper were immediately suspended.

Rod Antle: It was confirmed that nine personnel were not accounted 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 Churpla, including the search and rescue team.

It was concerned that non personnel.

<unk> accounted for once a confirmatory head counts were completed in the hours following the incident.

Immediate efforts would focus on sites conducting search and rescue.

Various government agencies were immediately deployed to chapter, including the search and rescue teams.

Rod Antle: Since then, we have been supporting the activities at site under this direction for the various government agencies. I would like to recognize and thank the Turkish authorities for the rapid response and overwhelming support to the case, 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.

Okay.

We have been supporting the activities at <unk>.

Under the direction of the various government agencies.

I would like to recognize and thank you for taking your priorities for the rapid response and overwhelming support to that.

Rather than repay all the details contained in the press releases that are available on our website let.

Let me summarize the current situation and focus at Chipotle.

Yeah.

This 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, shipments have been focused on three other areas.

Initially suspended due to the instability.

Each pad and efforts to locate that personnel have seen regimes.

Our priority is to essentially recover and return app people to their families.

In addition.

<unk> been focused 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. The Turkish government is conducting environmental monitoring of surface water, ground water, soil, and air quality in the region.

First.

Agree John.

And initially I plan to stabilize the heap leach pad, allowing work to safely continue on the recovery of our amazing people.

Issue work began on February 23, two stabilized portions of the heap Leach pad and extensive monitoring is taking place using drawings and right.

The work to determine the final overall plan and approach stabilized the pad, including use of remote equipment is continuing to advance.

Second priority has been on the containment vessel.

Early criteria.

In this regard and containment upon immediately constructed.

And the installation of the concrete code at the bottom of the valley is underway.

Order diversion systems of the top of the severely galley are also underway.

Turkey's government is conducting environmental monitoring.

This quarter Grand water soil and air quality in the region.

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 this incident, the Chirpler PIA has been revoked. Sixth 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.

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.

These results are preliminary and additional testing will continue.

Finally, and number three is the ongoing discussion with the very various government ministries to determine the permanent storage location for the heap leach material.

Moving onto just a few other facts.

As a result.

The incident at Chaplin AI has been revoked.

Six personnel.

They design and are facing charges in relation to the incident and we're ensuring that receive the necessary support while respecting the Turkey legal process.

Investigation led by the Turkish government are underway to determine the causal factors leading to this slightly.

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 as facts present themselves moving forward.

Okay.

Two of our financial results.

Kevin a lot of the information was pre released with the technical reports on the 13th of February by obtain 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 need to have debt maturities and continued cash flow generation from our three other operations.

Rod Antle: Looking forward, the Cherville 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 acid groups 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 and the automatic share purchase plan we put in place last year. Even our focus, on Turkey Air, is on Chirpler.

Looking forward the Jetblue 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 10-K filings.

In the first quarter of 2004 and as noted in the 10-K.

Anticipate recording an impairment.

Leach inventory directly impacted quality chip glory incident, and will also evaluate jetblue 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.

An automatic share purchase plan, we put in place last year.

Given our focus is on Turkey.

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, 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 some uncertainty, 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. C.B. and Coonaway.

We've also temporarily place further investment at Horn mountain and not 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.

<unk>.

And we are doing everything we can to support our colleagues and the various stakeholders on the ground and take here.

Clearly we are 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: As I turn the line back to the operator for any questions, I will again note that I'll 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-operators, please go ahead and request your name. 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 note parallel 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 Akhil.

We will now begin the question and answer session to join the question queue. You May Press Star then one on your telephone keypad, you will hear tone acknowledging your request.

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.

You are using a speakerphone please pick up your handset before pressing any Keith.

Your question. Please press Star then two.

Our first question comes from Don Demarco with National Bank Financial. Please go ahead.

Don Demarco: Please go ahead. Thank you, operator, and good afternoon, Rod and team. First, 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?

Okay.

Thank you operator, and good afternoon, Bryan Keane my condolences too.

Everyone at the company.

And in particular Randy.

Personnel and their families.

Colleagues.

<unk>.

No Rod I don't want to overstep, what your intentions are for this call.

But maybe could you just clarify did you want no questions.

On the <unk> incident, or am I able to ask a few questions.

Yes, it could get additional color on some of the points that you made.

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?

Yes, you can ask questions I'll just.

Just very respectful to the fact that the ease of it's only two weeks old and.

Yes, clearly we are a FICO score is the 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 split right could you talk about your insurance.

Does the potential that they slipped might be insured.

Rod Antle: As a normal 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. OK. As you described, one of the big efforts right now is containing the extent of the contamination. There's a big earthworks process underway. Do you have any idea 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 and other factors?

As a as normal course.

We have notified our insurers.

Of distillate and.

We will continue to work with them in the ordinary course as is.

<unk>.

Yes.

The.

Final maybe.

<unk> come behind that at this stage they notified.

Okay.

So as you described there is.

One of the big effort right now is and campaigning.

Tammy Nations.

Big Earth works.

Process underway do you have any sense about the cost per ton per ton can move the material.

And anything material like.

Accessible or their parks, where kind of it might be difficult to reach given.

Hmm and other factors.

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, and 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. The containment area around the Thirbirli 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 has really only just got underway, so I'm too early to put any more color on that.

Yes at this stage Theres really no fidelity around the numbers I will just tell you what the areas of focus.

Four six.

We continue to.

Work actively on the heap Leach pad stabilization, that's really the key the key priority.

So we can continue with those.

Efforts to recover.

The missing people to return to their families.

The containment area around a severely valley in particularly is well advanced as I mentioned.

And we will continue until we have.

We finished that work.

And then 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 only just.

How do you really just got underway so 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 sulfides Don, it's all the imagery of Cherbrooke. And the amount that we're referring to is the offside.

Okay fair enough.

And then maybe just a final question.

<unk> released this afternoon, it mentioned that there's the potential impairment charge in Q1 70.

$73 million it referenced that that makes up 19% of the chirp layer total gold inventory just wanted to clarify does that represent 19% of the heap Leach Goldman inventory or the total.

<unk> sulphide Goldman Pickering.

It is the total of both the oxides and sulfides don't.

It's all that early inventory of children.

And the amount that we're referring to as well.

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.

Okay. Thank you for that.

Once again my condolences to the.

<unk> team and everyone involved.

Put it back to the operator, we appreciate that thank you.

Operator: We appreciate that. Thank you. That concludes the question and answer session. I would now like to turn the call back over to Mr. Antel for any closing remarks.

Sure.

This concludes the question and answer session I would now like to turn the call back over to Mr. Entel for any closing remarks. Please go ahead.

Rod Antle: 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. www.OvaisHabib.com. Thanks for watching! Thank you for watching. Like, Comment, and Subscribe. For more information, visit www.ossicleship.com

Great. Thank you operator and again, thank you all for joining us.

And goodbye for now.

This concludes the conference call you may disconnect. Your lines. Thank you for participating and have a pleasant day.

Okay.

Okay.

Okay.

Uh huh.

Okay.

Yeah.

Okay.

Okay.