Q1 2025 SSR Mining Inc Earnings Call
Speaker Change: Hello everyone and welcome to SSR Mining's first quarter, 2025 Conference Call. Please be advised that this call is being recorded. Should anyone need assistance during the conference call? If my signal and operator are requesting star than zero. At this time, for opening remarks and introductions, I would like to turn the call over to Alex Hunchak from SSR Mining, please go ahead.
Speaker Change: Thank you operator and hello everyone. Thank you for joining today's conference called to discuss SSR Mining's first quarter financial results.
Speaker Change: Our consolidated financial statements have been presented in accordance with USGAM. These financial statements have been filed on Edgar and Cedar, and they are also available on our website. There is an online webcast to come think this call, and you will find the information to access the webcast in its afternoon's news release and on our corporate website.
Speaker Change: Please note that all figures discussed during the call are in US dollars and that's otherwise indicated.
Speaker Change: Today's discussion will include four living statements, so please read the brochures in the relevant documents.
Speaker Change: Additionally, we will refer to non-GAAP financial measures during our depression and in the company in compliance. We'll use the R-press release for information about the comparable GAAP measures .
Speaker Change: Rod Antal, Executive Chairman, will be joined by Michael Sparks, Chief Financial Officer and Bill MacNevin, EVP Operations and Sustainability on today's call. I'll now turn line over to Rodney.
Alright, thanks Alex and good afternoon to you all.
Speaker Change: The first quarter results marked a strong start to the year for SSR.
Speaker Change: All of our operations performed well against our plans which drove the solid financial results including nearly $40 million in free cash flow generation.
Speaker Change: The first quarter also included a month of production from Cripple Creek Invicta as we close the transaction and formally welcome the CC and V team into the SSR at the end of February .
Speaker Change: and Transition have gone very well. The integration has been extremely smooth so far and while there is still more work to be done so far we are encouraged and confident we have added a core asset to the portfolio.
Speaker Change: Following the CC&V transaction close, we issued our full year 2025 operating guidance showing a year over year increase in production.
Speaker Change: The guidance also outlined our plans for meaningful investment at Hott Madden as we progress this terrific asset towards a full construction decision.
Speaker Change: We ended 2025 focused on a strong start to the year through operational delivery, which we achieved. And we will continue to build from this over the remainder of 2025.
Speaker Change: In addition, we have a number of important priorities and catalysts on the horizon over the next 12 months.
Speaker Change: These include a delivery of a technical report and life of mind plan for cripple-creak and
The advancements have hardmattered towards the construction decision.
the continued progress
Speaker Change: on an updated and extended life of mine for Pooner towards the end of the decade through the potential layback, hatching shares, and evaluation of the longer-term potential in a quarter-darris.
Speaker Change: Advancement of the Buffalo Valley to Positive Marigold, which now hosts more than 500,000 announcers in its maiden reserve. And of course, our top priority is continuing to advance
Speaker Change: This is a package of work that we are actively engaging and progressing with regulators in various government departments.
Speaker Change: This includes the approval of the East Storage Facility design as well as closure and remediation plans for the Height Bletch Pad.
Speaker Change: We anticipate that once these plans are agreed, we will then seek appropriate permits to restart the operation.
Speaker Change: Good progress is being made and while we remain confident of a restart, I am unable to provide any more detail of when and if these permits will be received.
Speaker Change: All of these efforts are focused on one key goal, delivering additional value for our shareholders and I look forward to providing further updates on these initiatives throughout the year.
Speaker Change: So now I'm going to call, turn the call over to Michael on to the financial results which are on slide 4.
Michael Sparks: Thank you, Rod, and good afternoon, everyone. The first quarter of 2025 was well aligned to our expectations, with 104,000 Gold equivalent ounces produced at all in sustaining costs of $1,972 per ounce.
Michael Sparks: or $1,749 per ounce, excluding costs incurred at Chirpwood or in the quarter. These results drove operating cash below $85 million, and pre-cash flow of $39 million during
Michael Sparks: Following the $100 million cash payment made upon the close of the CCMV acquisition, we ended the quarter with $320 million in cash on hand.
Michael Sparks: We also spent approximately $12 million advancing hot madden in the first quarter as we progress engineering and initial site development activities. Brownfield Exploration and Development work continued at Marigold, CB, and PUNA, and Bill will provide more details on these initiatives in a few minutes.
Now moving on to our financial results on slide 5.
Michael Sparks: We recorded a tripable net income of 28 cents per diluted share in the first quarter, and adjusted net income of 29 cents per diluted share. Both figures include approximately $36 million in care and maintenance costs at church or during the quarter, as these costs are not adjusted for under SEC rules.
Michael Sparks: As previously noted, first quarter free cashflow of $39 million was a strong result to start 2025.
Michael Sparks: The strong free cash flow generation maintains our total liquidity position of over $800 million.
Michael Sparks: We've continued free cash flow generation forecasted through 2025. We remain in a very strong position financially and are well positioned to manage all capital requirements across the business.
Michael Sparks: We have plenty of work in front of us, but we are proud of the strong start of the year and look forward to building on this momentum in the coming months. Now if you turn to slide step and I'll hand over to Bill. Thanks, Michael. It was a great start to the year, and I want to walk through some of the successes at each of our operations.
Bill MacNevin: First out, we'll start with a brief refresh on our 2025 guidance as shown on this slide.
Bill MacNevin: We expect to produce between 410 and 480,000 gold equivalent ounces this year at an 20th of 2,090.
Bill MacNevin: to $2,150 per ounce, or $1,890 to $1,950 per ounce when excluding care and maintenance costs at Sherpa.
Bill MacNevin: This production forecast is a 10% increase over 2024 on a mid-bought face and includes 10 months of production from CCNV.
Bill MacNevin: Our guidance also includes an initial capital spend forecast of $60 to $100 million for the HOD Martin as we advance the project toward a construction decision.
Bill MacNevin: Now, let's move on to Swide 8 for operational updates, starting with Marigold.
Bill MacNevin: Marigold produced 39,000 ounces in the 1st quarter and an ASIC of 1765 per ounce. A solid start to the year.
Bill MacNevin: with grades to trend upwards towards the end of the second quarter, delivering strongest production in Q3 and driving a 55-60% H2 weighted production profile.
Bill MacNevin: Distaining Capital Trended Blow Expectations in Q1, with this been now expected in the second quarter.
[inaudible]
Bill MacNevin: We are continuing to focus our exploration and growth efforts on oxide mineral reserve additions at Buffalo Valley, a new millenium.
Bill MacNevin: We look forward to providing further updates on these initiatives as they progress.
Now on to CCMB on slide 9.
Speaker Change: I want to start by acknowledging the hard work from our teams that helped enable a very successful start to the integration process for CCMV. It's a pleasure to bring a team of this caliber into our portfolio and we are continuing to integrate the asset into our portfolio as we plan for the future.
Speaker Change: Attributal first production from CCNV covers the month of March following the transactions close. Production of March is 11,000.3 kiloarounds at an ASIC of 1774 aligned with our expectations.
Speaker Change: Incluses of the January and February production CCMV produced 39.3,000 ounces of gold and Q1.
Speaker Change: As a reminder, you might report CCMB mineral reserves of 2.4 million ounces as of the end of 2024 in the year end results. This is an 85% year on year increase.
Speaker Change: This expanded reserve demonstrates potential upside of what we believe will be a long-lived and significant contributor but portfolio for many years to come.
Speaker Change: To that end, we're advancing technical work to inform an updated life of mind plan and a company technical report to CCMV.
Speaker Change: With a large existing reserve setting, the stage for long mind lights at CCMB.
Speaker Change: These initiatives will help further define and showcase some of the upside we identified during the two
Now, I wanted to see you, baby.
Speaker Change: T.B., you have an excellent start to the year, producing 26,000 ounces.
Speaker Change: ASIC of 3074 per ounce, as a result of continued positive grade reconciliation in Santa
Speaker Change: Walgreens, Average Nine Grants, Patun in Q1. We expect this to be normalized towards reserve grades for the remainder of the year and have bled full-year guidance assumptions unchanged as a result.
Speaker Change: The recent grade out performance has certainly been welcome but should not diminish the hard work our teams have put in to drive continuous improvement at the asset as we seek to deliver improved underground productivity and maintenance practices going forward.
Speaker Change: With respect to growth and exploration, we are continuing to advance drilling campaigns at both Santoy and Porky targets as we evaluate potential opportunities to extend the mind
Speaker Change: This work has been productive so far and we look forward to providing further updates with their year-end reserves and resources.
Now on to Pooner, side 11.
Speaker Change: Puna produced 2.5 million ounces of silver in the first quarter and a $16.16 per ounce, an excellent result to start the year.
Speaker Change: Our current folks at Perna is on mind-life extension opportunities, particularly on laybacks at Gen cheese, the sport knee-life mine extension, deeper into the decade as we advance engineering
Speaker Change: Huna has been exceptional contributor to our portfolio and we keen to see its continued production and growth for many years to come.
on site 12.
Speaker Change: Turkey. At Hot Marden, we spend approximately 12 million on initial site establishment efforts and technical work in the quarter. While infield drilling also continues at site with the aim of de-risking the first four years of the mine.
Speaker Change: Simultaneously, we continue to progress efforts on financing options to hold man as we approach a construction decision.
Speaker Change: As Rod mentioned, we have continued to advance discussions with regulators and various government departments around the potential restart of operations at Sherber.
Speaker Change: In the meantime, Care and Maintenance cost have remained aligned with guidance and we spent approximately five million in the first quarter on radiation and reclamation activities.
Speaker Change: Overall, a lot of positive efforts and progress in taking you to start the year.
Speaker Change: Now, I will head back to Rod for closing remarks. Thanks Bill, thanks Michael. We are in a 25 with a focus on operational delivery as we continue to repeal our track record of being a reliable producer and adding shareholder value through various initiatives.
Speaker Change: As you have heard, we are pleased with our results out of the Gating Quarter 1 and we will build on this momentum over the course of the year.
Speaker Change: with the thrill that we have caused and integrated CCMV into SSR with a steady production and cash flows expect to contribute meaningfully to our business for many years to come.
Speaker Change: Overall, our business is an excellent show and we are focused on delivering on a number of operational improvements and growth initiatives during the year.
Speaker Change: We believe the company has significant upside and look forward to progressing the various drivers to realises potential during 2025.
Speaker Change: So with that, we're going to call, turn the call over to the operator for any questions you may have. Thank you.
Speaker Change: Thank you, Mr. Antal. We will now begin the question and answer session. To join the question Thank you, you may press star then one on your telephone keypad. You will hear it
Speaker Change: If you're using a speaker phone, please pick up your handset before pressing any keys. To withdraw your question, please press star, then two.
Speaker Change: The first question comes from Cosmos Chiu with P.I.B.C. Please go ahead.
Hi, thanks, Rod and Team.
Cosmo Xu: Maybe my first question is on Cripple Creek and Victor here. Congrats on closing the deal.
Speaker Change: I know he kind of touched on it, but I'm just wondering [inaudible]
Speaker Change: You know, what's the next steps in terms of what you can show us, what you can do at Cripple Creek Invictor?
Speaker Change: I know you're going to spend the next 12 months in terms of-
Speaker Change: A New Life of Mind Blend. But as you mentioned, it's increased more than 80% in terms of reserves to 2.4 million ounces. I'm just wondering how, you know, between now and the next 12 months, how we can use some of this information that's been given to us in terms of...
Speaker Change: How we can optimize the model that we built into your valuation.
Speaker Change: Ovais Habib, Michael Parkin
Bill MacNevin: Good question, Cosmos. I'm going to pass out with Bill and some comments and then if there's anything else I'll wrap it up.
Bill MacNevin: One of the key things that is part of our first piece of work we obviously are collecting a lot more information and key to that we're compiling and we're going to build out that new life and mind report and most importantly a technical report.
Bill MacNevin: That technical report will have our best understanding where we currently stand.
Bill MacNevin: At the same time, we'll be continuing a lot more work looking at what we can do with the business and future but in terms of handing something across that technical report later this year will be our best and most immediate update.
Speaker Change: And what's the timing of that technical report if there's a timing at this point in time?
Yeah, we're working to get that out in Q3.
Speaker Change: So that's when we'll be pulling that together. Everyone's feverishly working away at the moment and obviously engaging with the site team and gathering more information, face-to-face that's helping immensely. So we look forward to getting that out to everyone.
Speaker Change: I think because the truth is, we're well aware that when we acquire the asset and have acquired the asset, now of course, that is a bit of a dark of information in the market around
Speaker Change: Newmont hadn't published a tentacle report on the asset for many many years, so that's really been the priority for us to...
Speaker Change: Reacquaint the market with the asset, but on the back of publishing a new tech report.
Bill MacNevin: It feels like a long time, but it's not. I think it's important we take the steps, it's built out line two.
really
Bill MacNevin: Demonstrate what we see as a deep value for the asset.
Bill MacNevin: Moving forward and as you rightly point out, I think the new reserve basis that New Monk published just before their transaction closed should drive a level of excitement for its potential and then
Bill MacNevin: You know, I think beyond that, that our job is to keep on describing what other value we think.
Bill MacNevin: We might be able to e-catter the assets I'm moving forward so.
Bill MacNevin: Early days, things have gone really well as we mentioned and nothing that we've seen so far is really disappointed us.
Thank you for watching. And I'll see you next time.
Speaker Change: Yeah, I'm just I guess the genesis of my question is that
Speaker Change: I've seen other companies, some of your competitors that have also acquired assets from Newmont
Speaker Change: Broadly speaking, they talk about different areas where they can optimize. I'm just wondering if broadly speaking I know that the actual numbers won't come on until later on in hopefully Q3 as you mentioned, but broadly speaking are there areas that we can...
Speaker Change: We can focus on, that we should focus on, that you can share with us or maybe not at this point in time.
Speaker Change: He's out in other cases where assets are a little bit better understood Good.
so where we're obviously we're obviously
Speaker Change: in that regard, a little bit further behind, further behind because of the...
Speaker Change: the other publications around Cripple Creek in the market. So we're going to catch that up. So I think for us to be able to take it over.
Speaker Change: worked through all the technical details for our, you know, our team and our CPE's to be able to sign off on that in the time frame that Bill's talking about. That's pretty fast. So, that's really a priority for us. No, I perfectly understand.
Maybe switching gears to Turkey A, Halt Medan.
As you mentioned, you spent $12.2 million in...
in CapEx, Devon, in CapEx, in Q1. [inaudible]
Speaker Change: their target 60 to 100 million. Could you maybe talk about the velocity of the increased that we're expecting?
Speaker Change: I guess, number 160 to 100 million, that's a fairly large range, that's number one, and if I look at it, if I were to analyze 12.2 million, I get to the lower end, but I don't think I should do that. So maybe if you can talk about how we should look at the potential velocity of increase.
Speaker Change: Yeah, look, I think the progress that we're making at the site, at the moment is...
We're actually tendering out some of the early works.
Speaker Change: around the infrastructure, so that is progressing well. Once those contracts are let, so these are simple works and tunnel access, etc. into site. The
Speaker Change: Spend will escalate accordingly, beyond the sort of 12 million, the quarter, which has been primarily, you know,
Speaker Change: particularly from Q3 onwards cause as we start to execute that contract. You know, if we let them now, they're still that sort of lag by the time folks get mobilised and contractors get mobilised but that will start to really uplift itself in quarter three, quarter four. And I think we let that, we did leave that range in there.
Speaker Change: mainly around the timing of that ramp up but as we as we move through the year and we get a bit more fidelity around it if we need to tighten that up we will be coming into quarter three so one.
So, things are progressing quite well there actually.
Speaker Change: And then maybe a follow-up, as you mentioned, you know, with the work that you're doing
Speaker Change: trying to get more confidence at least around the first four years of production.
Speaker Change: And as you talked about, the technical report for cripple creek and and victor .
Speaker Change: Well, Hama Dander is a technical report as well, dated 2022, I believe, so I guess my question is number one.
Speaker Change: You know, the first four years, are you trying to gain more confidence around what was disclosed in that most recent feasibility study? And number two, should we, you know, still use that feasibility as a basis in terms of the economics around Hamedin?
Speaker Change: Yes, the work we were doing, I think we sort of described it after we acquired the asset was more around...
Speaker Change: Insuring that we had the fidelity in the infield drilling particularly in those early years because they're important from an economic return perspective but also from us.
Speaker Change: around that work, with the drilling that we've got, the engineering and all of the other pieces that go with it.
So, that's continued and...
Speaker Change: At the moment, yes, I would suggest using 22 as till your basis. It's the best basis out there. As we obviously get closer to...
Speaker Change: Making a project decision will get closer to then republishing the tech report with all the outcomes of that work.
The other thing now that we did
Speaker Change: No, on the acquisition cause was the inflation, then we'd been experiencing Turkey with the project as you rightly point out the last project estimate was 2022.
Speaker Change: We're now three years beyond and four years by the time we get to this year and what we suggested and guided folks to do was to compound it sort of 10 to 15% inflation rate.
Speaker Change: to the capital number to sort of bring it up to today's dollars and we haven't seen any relief from that inflationary pressures either so I think that's still valid.
Speaker Change: Great, yeah, I think we've inflated our numbers as well, it's suggested. And maybe one last question as you mentioned, you know, Hobbit Ants in Turkey A, Turfler is also in Turkey A.
Speaker Change: Maybe I'm just, I don't know if he can answer this rod, but is there any kind of connection in terms of those two, in terms of a potential restart at Turplor and how there is...
Speaker Change: Any kind of connection to what might be a construction decision at Harmadan or are they completely separate?
Ovais Habib, Cosmos Chiu, Lawson
Now, we're purposely, um, get them separate cause.
Speaker Change: Because that's the way we would have run the project anyway to be honest with you Yeah, this is a this is a greenfields project as you know, it's not a brownfields project so it's not a natural extension of churplum [inaudible]
into the anchor routine in terms of...
Speaker Change: You know, HR, Finance, Community Relations and other things but beyond that the project sort of considered a Greenfields project.
It's sort. So we had structured it that way.
Anyway, and as it turns out...
Speaker Change: as it turns out when we think about Chirpler and Holt Madden.
with different priorities and different sense of urgency, so...
Speaker Change: and goes through its normal construction phases. There will be more of a integration into the current infrastructure we have around the the Antigold team.
Speaker Change: for taking it over because ultimately we'll leverage off that overhead we've already got set up in country but at this stage there's a separate project team set up.
Speaker Change: Great, thanks again to Rod, Michael, and Alex. Those are all the questions I have. Thank you.
Thanks, guys.
Speaker Change: This concludes the question and answer session and today's conference call. We may disconnect your lines. Thank you for participating and have a pleasant day.