Q1 2025 SSR Mining Inc Earnings Call
Michael Sparks: Young Nature California Recording © 1989 The All-New Matthew Henchman All Rights Reserved Michael Sparks
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.
Speaker Change: At this time for opening remarks and introductions, I would like to turn the call over to Alex Hunchak from SSR Mining. We can 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
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 looking statements, so please read the disclosures in the relevant documents.
Speaker Change: Rod Antal, Executive Termin, 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 Rod.
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 SSR at the end of February .
Speaker Change: It is pleasing to note that our refits and planning for this transaction and...
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. We will continue to build from this over the remainder of 2025.
Speaker Change: These include the Delivering of a Technical Report and Life of Mind Plan for Creeple Creek and Victor.
The advancement of hard-mattered towards a construction decision.
The continued progress.
Speaker Change: on an updated and extended life and mind for Pooner towards the end of the decade through the potential life back, etching cheers, and evaluation of the longer-term potential accorded
Speaker Change: The Advancement of the Buffalo Valley Depositive 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
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 are looking forward to providing further updates on these initiatives throughout the year.
Speaker Change: So now I'm going to call, tend to 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 Sherpler during the quarter.
Michael Sparks: These results throw up operating cash below $85 million and pre-cash flow of $39 million during the quarter 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 HOD Madden in the first quarter as we progressed engineering and initial site development activities. Brownfield Exploration and Development work continued at Marigold, C.B. and Pune, and Bill will provide more details on these
Now moving on to our financial results on slide 5.
Michael Sparks: We recorded a favorable net income of 28 cents per diluted share in the first quarter and adjusted net income of 29 cents per diluted share.
Michael Sparks: Both figures include approximately $36 million in care and maintenance costs at Turplor during the quarter, as these costs are not adjusted for under FEC rules. As previously noted, first quarter pre-cash flow of $39 million was a strong result to
Michael Sparks: This strong free cash flow generation maintains our total liquidity position of over $800 million.
Michael Sparks: With 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 month. Now, if it turns to slide seven, I'll hand over to Bill. Thanks, Michael.
Bill MacNevin: It was a great start to the year and I want to walk through some of the successes at each of our operations [inaudible]
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 ASIC 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 Churbler.
Bill MacNevin: This production forecast is a 10% increase over 2024 on a mid-pointed 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 hot modern as we advance the project toward a construction decision.
Bill MacNevin: Marigold produced 39,000 ounces in the 1st quarter and an ASIC of 1765 crowns. A solid start to the year.
Bill MacNevin: Distaining Capital-Trended Blow Expectations in Q1, with this been now expected in the second quarter.
Bill MacNevin: We're continuing to focus our exploration and growth efforts on oxide mineral reserve additions at Buffalo Valley and New Millenium.
Bill MacNevin: We look forward to providing further updates on these initiatives as they progress.
Now on to CCMB on slide 9.
Bill MacNevin: 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 planned for the future.
Bill MacNevin: A Tribunal first production from CCNV covers the month of March following the transactions close. Production of March is 11,000.3 Kilares at an ASIC of 1774 aligned with our expectations.
Bill MacNevin: Incluses of the January and February production CCMV produced 39.3,000 ounces of gold in Q1.
Bill MacNevin: As a reminder, you might report a CCMV 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.
Bill MacNevin: This expanded reserve demonstrates potential upside of what we believe will be a long-lived and significant contributor to our portfolio for many years to come.
Bill MacNevin: To that end, we're advancing technical work to inform an updated life of mind plan and accompanying technical report for CCMV.
Bill MacNevin: With a large existing reserve setting, the stage for a long mind lights at CCMB.
Bill MacNevin: These initiatives will help further define and showcase some of the upside we identified during the due diligence process.
Now I want to see you, baby.
Bill MacNevin: CB had an excellent start to the producing 26,000 answers.
Bill MacNevin: ASIC of 3074 per ounce. As a result of continued, positive grade reconciliation in Santo
Bill MacNevin: Walgreens, Average Nine Grants, Patun in Q1. We expect this to be normalized towards reserve grades for the remainder of the year and have led full-year guides to assumptions unchanged as a result.
Bill MacNevin: 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.
Bill MacNevin: With respect to growth and exploration, we're continuing to advance drilling campaigns at both Santor and Porky targets as we evaluate potential opportunities to extend the mind
Bill MacNevin: 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, Slide 11
Bill MacNevin: Turner produced 2.5 million ounces of silver in the first quarter and 8.6 of $13.16 per ounce an excellent result to start the year.
Bill MacNevin: Our current folks at Perna is on mind life extension opportunities, particularly on laybacks at Chiu Chiu's, the sport near life's mind extension, deeper into the decade as we face engineering work on the court of Darius Target.
Bill MacNevin: Huna has been exceptional contributor to our portfolio and we keen to see its continued production and growth for many years to come.
On Slide 12
Bill MacNevin: Turkey. At Hot Martin, 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: 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 Turkey to start the year.
Speaker Change: Now I will come 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 rebuild our track record of being a reliable producer and adding sharehold value through various initiatives.
Speaker Change: As you have heard, we are pleased with our results out of the gating quarter one and we will build on this momentum over the course of the year.
Speaker Change: With thrilled that we have caused an integrated CCMV into SSR with a steady production and cash wise expecter 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 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 queue, you may press star then one on your telephone keypad. You will hear it on acknowledging your request.
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.
Cosmo Hsu: The FOIS question comes from Cosmos Chiu, with PIBC. Please, go ahead.
Hi, thanks Rod and Team.
Cosmo Hsu: Maybe my first question is on Cripple Creek and Victor here. Congrats on closing the deal.
Cosmo Hsu: I know he kind of touched on it, but I'm just wondering [inaudible]
Cosmo Hsu: What's the next steps in terms of what you can show us, what you can do at Clifal Creek Invictor?
Cosmo Hsu: I know you're going to spend the next 12 months in terms of a new life of mine planned 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 [inaudible]
in terms of...
Cosmo Hsu: How we can optimize the model that we built into your valuation.
Bill MacNevin: A good question, Cosmos, I'm going to pass that with a 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.
Bill MacNevin: and Keita that we're compiling and we're going to build out that new life of mine reporting, most importantly a technical report. 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 in 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, we're working to get that out in Q3.
Speaker Change: When we acquired the asset and have acquired the asset, now of course that is a bit of a doubt of information in the market around CCNV given...
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: I'm really equate the market with the asset, but on the back of, I'm publishing a new tech report so
really
Speaker Change: Demonstrate what we see is a big value for the asset.
Speaker Change: 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, you know, for its potential and then...
Speaker Change: You know, I think beyond that, that our job is to keep on describing what other value we think.
Speaker Change: We might be able to e-cat of the assets moving forward so...
Speaker Change: Early Days, things have gone really well, as we mentioned, and nothing that we've seen so far is really disappointed us.
Buh-bye!
Speaker Change: Yeah, I'm just, I guess the genesis of my question is that 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 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. [inaudible]
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: I think right now, of course, I think it's just that we'll leave it as is as a question. Mainly mainly because I think what you've described is...
Speaker Change: He's out in other cases where assets are a little bit better understood Good.
the other publications around Triple Creek in the market. It's so, um...
Speaker Change: So we're going to catch that up so I think you know 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 CP'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.
I was maybe switching gears to Turkey a half a day.
As you mentioned, you spent $12.2 million in...
in CapEx, developing CapEx in Q1.
Speaker Change: their target 60 to 100 million. Could you maybe talk about the velocity of the increase that we're expecting?
Speaker Change: I guess number 160 to 100 million that's a fairly large
Rodney Antal, William MacNevin, Michael Sparks
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: Spind will escalate accordingly, beyond the sort of 12 million the quarter, which has been primarily, you know...
Um...
Owners Costs, Man, Engineering fee, so...
That'll start to rain pop down.
um, particularly from Q3 on Blitzkopf.
Speaker Change: as we start to execute that contract. If we let them now, they're still that sort of lag by the time folks get mobilised and contractors get mobilised but that'll start to really uplisted self in quarter three, quarter four. And I think we left out there and we did leave that range in there.
Speaker Change: Mainly around the timing of that ramp up, but 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 through.
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, you're...
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, how my 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 homaden?
Speaker Change: Yes, the work we were doing, I think we sort of described that after we acquired the asset was more around...
Speaker Change: being able to describe to the market what the early years of production will be. That's what we spent a lot of time on. Ensuring up the flow sheets.
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.
Speaker Change: Yeah, as we obviously get closer to making a project decision, we'll get closer to then republishing the tech report with all the outcomes of that work.
and also progressing the financing options around the project.
The other thing now that we did...
No, on the acquisition cause was the…
inflation
Then we've been experiencing Turkey A.
with the project as you rightly point out the last.
Speaker Change: Project Testament was 2022. 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: 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 Turfler and how there is?
Speaker Change: and any kind of connection to what might be a construction decision at Harmadan or are they completely separate?
Now, we're purposely get them separate cause.
Speaker Change: Because that's the way we would have run the project anyway to be honest with you, this is a green fields project as you know, it's not a brown fields project so it's not a natural extension
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.
and so on. 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 Hot Madden.
Speaker Change: We consider them separately, so there's no link to them from a government perspective, there's no link to them.
Speaker Change: in terms of the success of us getting the permits to restart Churpla. They're sort of both marching on their own drumbeat.
with different priorities and different sense of urgency. So, um...
You know, Hot Madden goes into construction.
I mean, goes through it's no more construction phases, there'll be more...
Speaker Change: of a integration into the current infrastructure we have around the the
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, Phil, Michael and Alex. Those are all the questions I have. Thank you.
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.