Q2 2025 SSR Mining Inc Earnings Call
Hello everyone, and welcome to SSR. Mining second quarter 2025 conference call. This call is being recorded at this time for opening remarks. And introductions, I would like to turn the call over to Alexandre from SSR. Mining. Please go ahead.
Thank you, operator. And hello everyone. Thank you. For joining today's conference call to discuss SSR, mining expecting quarter Financial results.
Our consultative financial statements have been presented in accordance with us gaap. These financial statements have been filed on, Edgar and Cedar, and they are also available on our website.
There is an online, webcast accompanying this call, and you will find the information to access to webcasts in this afternoon's, news release and on our corporate website.
Despite the temporary suspension at CB due to the forest fire. We had a very strong quarter that generated both good operating results and significant free cash flow.
We continue to work constructively with the relevant authorities in turkey, at to advance the restart of the triple mine, including progressing, the various engineering plans and design documents.
This includes the closure plans for the Heap Leach pad and the issued for construction documents for the storage facility.
While this is another step forward, we cannot yet provide a definitive timeline for a restart.
Another key Milestone was achieved at tuna in the quarter.
We have developed a plan that will extend the Mind life at ginchi is by an initial 3 year period through the 20208.
further, we will continue to evaluate other opportunities including advancing the studies at korderas
Other notable highlights in quarter 2 include.
We had.
Consolidated free cash flow generation of nearly 100 million dollars, reiterating the strength of our America's platform.
We had a strong First full quarter.
delivering on 1 of the main strategic, rationale of the acquisition,
And lastly we continue to advance the hot Madden project towards a construction decision including 20 M, 29 million in capital expenditure year to date.
As we move into the second half of the year, we have a number of meaningful catalysts remaining on the horizon.
These include the release of a technical report and life and mind plan for Cripple Creek, and Victor. Initially, based on existing mineral Reserves,
And of course, the advancement of the hot Madden project towards a construction decision.
Across the portfolio will continue to evaluate further, organic growth initiatives at Buffalo Valley, and New Millennium and maragal.
The porcus target at CB and accorded. Their is targeted. Pune
and of course, the top priority is continuing to advance chirpa to a restart
As you can see, we've already delivered on a number of our key priorities and demonstrated strong operating performance in the first half.
This is particularly pleasing when you overlay, the heavy lift of resources, required for the very successful integration of Cripple, Creek, and Victor.
So now I'm going to turn the call over to Michael to take you through the Q2 financials, starting on slide number 4.
Thank you, rod and good afternoon. Everyone as noted, the second quarter of 2025 was another strong operational period.
Production at quarter was 120,000 golden Oz. A better than 15% improvement over q1. As we benefited from the full first quarter of production from ccmv,
all in sustaining costs in the second quarter were 2,068 per ounce or 1,858 per ounce. Excluding care maintenance costs and curvature blur.
These results through of operating cash flow of 158 million and free cash flow of 98 million during the quarter.
We spent approximately $16 million advancing hot Madden in the second quarter as we progress engineering and initial site development activities.
This brings year to date spend at the project to 29 million as we advance towards the construction decision for what remains 1 of the most attractive, underdeveloped, copper gold projects in the sector.
We also announced an initial extension to the Puna, mine life, which bill will speak to later in the call.
Moving on to our financial results on slide 5.
We recorded attributable net income of $0.42 per diluted share in the second quarter and adjusted net income of $0.51 per diluted share.
Both figures include approximately 37 million in care and maintenance costs that chirping during the quarter. As these costs are not adjusted for under SEC rules.
Adjusted net, income removed, the impact of the additional Reclamation, and Remediation costs of chirp, which I will speak to shortly, as well as the 44 million in insurance proceeds received during the quarter.
As previously, noted second quarter, free cash flow of 98 million was an excellent result.
This strong free, cash flow generation maintains, our total liquidity position of over 900 million dollars.
We remain in a very strong position financially and are well positioned to manage all capital requirements across the business. Going forward, including the remaining remediation and Reclamation costs, that chirp player.
Let's now turn to page 6 for an update on these efforts.
Following the tripler incident, the company estimated future Reclamation and Remediation costs of 250 million to 300 million dollars related to the tripler incident.
In q1 2024, the company accrued the low end of this. Estimated cross range recording, 250 million in Reclamation and Remediation costs. In addition to the 22.5 million that had already been incurred during the first quarter of 2024,
in the second quarter of 2025, we recorded a 62.9 million revision to the initial Reclamation, and Remediation costs resulting in a 12.9 million dollar, increase to the initial estimate,
The revision and estimate reflects. The company's advancement of the engineering and construction design of the East storage facility, as well as the advancement of the studies for the permanent closure of the Heap Leach pad.
Ing and construction designs.
And is not unlike the refinement in capital costs. We are used to seeing as project Advanced from pea level scoping studies towards executable project plans.
As I mentioned previously, the engineering plans and related studies for the permanent closure of the heath Leach pad continue to advance
As part of the Heap, Leach pad closure planning, the company will conduct further field investigations, and will use the findings to refine and update the closure plan for the Heap pad.
Now, over to bill for an update on the operation, starting on slide 8.
Thanks, Michael. It was another solid quarter for our operations.
Starting with Muriel.
Muriel produced 36,000 ounces in second quarter at an Asic of 1977 per ounce.
As costs, trended higher over the first quarter as expected.
For the full year, we continue to expect a second. Half weighted production profile.
With Q4 plan to represent the strongest quarter of production for the year.
We continue to be impacted by higher royalty, costs at marigal.
Given the strength of the gold price through 2025 but overall remain on track for our full year targets.
With respect expiration and growth.
We are continuing to Advance Engineering and study work at Buffalo Valley and New Millennium.
Two key avenues for future mineral reserve conversion and mine life extension.
Feasibility, study level work is commenced at Buffalo Valley.
Including infill, Drilling and initial engineering.
We look forward to providing further updates on these initiatives as they progress.
Now, on to ccmb on slide 9.
Dcmb delivered, an excellent Q2 with production and costs benefiting from better than expected solution grades coming off the pad.
Second-quarter production was 44,000 oz of gold, and they seek a price of $1,339 per ounce.
These strong results. Help Drive, significant free cash flow in the quarter.
This acquisition at the end of February.
Ccnb is now generated nearly 85 million in free, cash flow, effectively paying back, our initial upfront purchase and just 4 months.
while we expect production and cost to normalize over the remainder of the year,
Ccmb is off to an excellent, start establishing itself as a core piece of our America's platform going forward.
We are continuing to advance an initial technical report for ccmv.
We expect this document or represent a first step in our longer term plans to delineate, meaningful growth and upside for the asset in the future.
now, on to CB,
CB's quarter was heavily impacted by the power Interruption caused by forest, fires and Saskatchewan.
Firstly, I want to take a brief moment to acknowledge the impact, these fires had on our staff and their communities across Northern Saskatchewan and Manitoba
this was a particularly damaging Fire season across the region.
And while the impact to our operations was thankfully limited to power interruptions.
Our thoughts, with all those whose livelihoods were impacted?
Owing to the downtime and subsequent ramp up back to operations, CBE, produced 11,000 ounces of gold and an Asic 2708 grams.
Cost for particularly high in the quarter.
As we kept our full complement staff on site to be ready for the restart of operations, as soon as was practical.
To the remainder of the Year grades will remain at or near Reserve grade.
And production is expected to Trend towards the lower end of full year, guidance.
With respect to growth and expiration, We are continuing to advance, drilling campaigns as Santo and the porky targets.
As we evaluate potential opportunities, to extend the Mind life at CV.
This work has continued to delivering promising results and we look forward to providing further updates with our year, end reserves and resources.
On to Pune on slide 11.
Pune produced 2.8 million ounces of silver in the second quarter and an Asic of 1257 per ounce. Another excellent result.
Well, Pune has had an exceptional year so far.
Has been higher than our forecasts, unfortunately diminishing some of the positive impacts from punish strong, first half on gold equivalent ounces.
Positively our continued efforts on expiration and development at. Pune have provided an initial 3 year extension of operations at chinches.
We are continuing to advance opportunities to build on this program.
And also, continuing work to evaluate the opportunity at quarter, deras as a pathway for longer term growth.
Kuna remains an exceptional contributor to our portfolio and we are Keen to see its continued production and growth for many years to come.
On the slide 12.
Ad hoc Martin. We spend approximately 16 million on the initial side assessment efforts and technical report in the quarter.
While infield, drilling also continues its sight with the aim of de-risking. The early years of the Mind.
Year to date spend at the project is now 29 million.
And we continue to advance towards a full investment decision.
Overall it was a solid quarter across the business and we're looking forward to continuing to draw deliver in the second half.
Now, we'll turn back to rod for closing remarks.
Great, thanks. Michael. And thank you, Bill.
For the first half, now behind us, we will remain in a good position to meet our full-year targets and are poised to continue to generate free cash flow through the second half.
We still have a number of meaningful catalysts over the remainder of the year. At the portfolio, they should lead to Value delivery for our shareholders.
This obviously includes turkey and egg. We will remain firmly committed to advancing to a restarted Sherlock.
With a strong balance sheet underpinning, the portfolio and solid operating performance over the year to date. We are an excellent shape as a business and it is our priority to continue to build on this strength over the the remainder of the year.
So with that, I'm going to turn the call over to the operator for any questions you may have.
Thank you, Mr. Antle, we'll now begin the question and answer session to join the question queue. You may press star, then 1 on your telephone keypad, you will hear a tone acknowledging your request.
If you're using a speaker-phone please pick up your handset before pressing any keys to withdraw your question. Please press star then 2
First question comes from OAB with Scotia Bank, please go ahead.
Thanks operator. Hi rod. And that's our team. Uh, congrats on, uh, on the Q2 beat, uh, and uh, really great to see the successful Transit, uh, integration uh, taking place at ccnb. Uh, brought just a couple of questions from me uh starting off with ccnv uh based on what uh ccnb has already produced so far. Uh, and the our performance we saw on Q2, I mean, is, is there a chance for ccnb to beat guidance? I mean any, any thoughts and color you can provide on, you know how how you see the second half?
Yeah, I appreciate the um the congratulations over. This is um it is pleasing, I need the guides are done a terrific job.
Across the business already this year, but look on specifically on your question. Um, um, things have gone really well down there. Um,
the plan that we put together for the year, um, is as expected with the higher production, um, in the second quarter that, you know, the First full quarter that we've owned it. Um, and it really is just as a, as a result of the high grade that was stacked on, the, the Heap Leach, um, during the last part of last year, in the early part of this year, um,
In those residual grades being produced. So, um, at this stage of various, um, it's tracking to plan. Um, and as we look forward to the second half with our our stacking plans um and all going up on the pad, we're still come comfortable with the guidance as as it states.
Thank thanks, Robert for that. And then just, uh, maybe a little bit more color on this technical uh, uh, review that you guys are going to be coming out with on ccnb. Um, you know, obviously this is going to be based on uh, the updated reserves uh, that uh, Newmont had published before the closing of the transaction. Um, I mean, is there a possibility over here to, you know, significantly improve the Mind life? Do you think you can pull forward? Uh, some of that production, any thoughts color on that Rod. That would be appreciated as well.
guys, the the purpose of the update um, really was just to um, ensure that the most recent information,
For Cripple Creek, and Victor was actually in the public domain. As, you know, you might hadn't published a tech report on it for for many, many, many years. So, um, um, we, we're basically just picked up what we know, um, using all the information available to US based on the current Reserve Base. Um, and that's the starting point, um, for the, um, and the purpose actually of the, the tech report itself. So, we'll conclude all of that work and publish it. Um, your question around future growth and future growth opportunities, you know, clearly, we see that, um, um, we saw that through the due diligence and now having ownership for, you know, the best part of, um, 4 months. Um, uh, we continue to, to evaluate it, but it's still pretty early I base. Um, for us to get our arms around it, you know, we've got other priorities right now around, um, and getting amendment 14 approved, which is important to underpin the, uh, the reserves, um, as I've stated by new,
That's really clearly our first objective. And then, you know, as we look further a field and into the future, um, you know, many of the opportunities will take some time to to study properly. Um, and, uh, and then obviously bring that to, uh, to Market once once our understanding is more mature. Um, so it really,
Just it's really just a placeholder at the moment to get the information out there. So we're all working off the, uh, the same information. So you can see the um, you know, production profile, um, importantly and the cost profile importantly and then we'll go from there in the future but um, I look, it's off to a really good start for sure. Um, couldn't be more uh, more pleased or more impressed with the team down there.
Excellent. Thanks. Thanks for that rod and just, uh, quickly moving on to Chlor. Um, I just wanted to see, you know where things are at, um, in terms of kind of discussions with The Regulators. I'm just trying to figure out if The Regulators have just given you a dash list or agenda. And, and any sort of permit to restart only comes once those Stacks are completed, or is there any sort of fast tracking that could happen as well, uh, on the restart?
Yeah. Look I think we we sort of made most of the disclosure within the um, within the quarter. But I would say that the last quarter in particular, um, quarter 2 was um very good. In terms of the progress that we did make um, a number of the open items. We had been working on with the various stakeholders, um, around the plans for, uh, the construction of the storage facility, which will hold
Some of the, um, um, the Heap Legion material, The Remnant, he leech material, um, as well as the closure planning for the actual Heap bleach. Uh, really made a lot of lot of progress. Um, you know, all the way through to us. Um, as, as we mentioned on the call, um, being able to, um, issue the construction. The E storage facility. So that was a, a significant, um, you know, um, positive outcome for the work over the last quarter. And as you can imagine, um, of those as we've talked about early on, um, the work in, this is important, um, to work with the various, um, government officials, stakeholders professors from various universities to, um, to ensure we, we get it right, um, in accordance with, uh, the Turkish law. Um, but also, um, another number of the interests of parties. So that's all, that's all that's been a good good at quarter for
Us actually in a lot of ways to, uh, to get a lot of the open issues resolved. Um, so that's favorable. And then, you know, as we look forward. Um, there isn't a sort of set of things that we have to do per se Ovation. You know, you must do this before you do that. Um, you know, clearly we want to make sure that everything's in place, um, before we seek approval for a restart but, um, um, we're not quite there in in, in a, in a few regards but um, you know, we're obviously plugging along and making good progress.
so, I was really pleased with the quarter, actually
That's perfect there. Thanks a lot for that color, there as well. Um that's it for me in terms of my questions. Uh so thanks for taking my questions and again, congrats on the great quarter.
Great, thanks. Appreciate it.
The next question comes from Don DeMarco with National Bank Financial. Please go ahead.
Thank you, operator and uh, good afternoon rod and team.
Rod. Um,
Are interested in in the chiropractor. Restarting your disclosure covers a lot. Um in the disclosure you mentioned that uh you're not sure what to the time frame is that a restart might occur. But do you know what the time frame may not be. Uh, in other words, do you know for certain that it won't be say within 1 month or 3 months? But it would be longer than that.
Yeah, and if you're trying to trying to trick me into a different way, negative way to answer a question, uh, Donna, appreciate it. But look, I I think, I think what we've said, publicly is what we're going to say publicly. Um, um, there isn't a definitive timeline as sort of, of just explaining to her those. Um, I think the important thing for us is to continue to make progress and um, and we are which um, is important and continue to uh to evolve it into a um um um a point where um, we'll be seeking the approval for a, for a restart. So, you know, I'm not going to put out their time tables. Um, um, in this regard to put unnecessary pressure on anyone. Um, it's not, it's not the, um, the valid point here I think we're like we've said, we're committed to Turkey a. We see tremendous value uh for um the country in both uh the Chlor asset and also in the hot Mountain project and I think our commitment around hot
And and the progress that we're making their, um, leading up to the sort of, you know, um, for investment decision, um, um, with our board at at the, uh, the right time really, does I think, um, support, um, our commitment to Country so and, and obviously, you know, our, um, um, progress in terms of getting a restart. So I think we're in good shape, um, as we as we move forward. But look, I'm not going to put out there a timetable at this stage
Okay, thank you. Well, we'll keep looking for updates on that now. Could you remind me what the permitting status is at tripler. Um, you know what? What level of throughput for example is currently permitted and uh upon a restart in the event that it occurs. What is the process to uh update the permitting?
Yeah, so if you remember, we, um, disclosed probably, I don't know. It feels like a long time ago, probably 12 months ago that, um, we would have to revert to the 2014 e eia, um, which is around 6,000 tons per day. Um, sorry, 6,000 tons. Um, but I on a on a throughput rate, um, and that'll be our starting point. Um,
Uh, once we, once we get a restart and then, uh, we'll then be seeking, um, a refresh to the, um, eia to, um, account for everything we have to account for, in terms of the site, uh, to be looking at, um, improving that throughput rate in the future. But, um, that won't come immediately. It will be a process. Um, but first things first, just, um, you know, let's just get things started. So, we revert to 6,000 tons per day, Dawn, excellent,
Okay. Ron, thank you. Uh, well, that's all from me and uh good luck with the rest of the quarter. Thank you.
Good on you. Thank you.
This concludes the question and answer session and today's conference call, you may disconnect your lines. Thank you for participating and have a pleasant day.