Q3 2025 SSR Mining Inc Earnings Call
I'd like to turn the call over to Alex Unchecked from SSR mining. Please go ahead.
Thank you operator, Hello, everyone. Thank you for joining today's conference call to discuss since our mining third quarter financial results.
Speaker #3: Hello , everyone , and welcome to SSR mining s third quarter 2025 conference call . This call is being recorded . At this time , for opening remarks and introduction , I would like to turn the call over to Alex Hunchak from SSR mining .
Our consolidated financial statements had been presented in accordance with U S. GAAP.
Statements have been filed on Edgar and SEDAR and they are also available on our website.
There is an online webcast accompanying this call and you will find the information to access the webcast in this afternoon's news release and on our corporate website.
Speaker #3: Please go ahead .
Speaker #4: Thank you . Operator . And hello everyone . Thank you for joining today's call to discuss SSR Mining's third quarter financial results . Our consolidated financial statements have been presented in accordance with US GAAP .
Please note that all figures discussed during the call are in U S dollars unless otherwise indicated.
Speaker #4: These financial statements have been filed on Edgar and CDR . And they are also available on our website . There is an online webcast accompanying this call , and you will find the information to access the webcast in this afternoon's news release .
Today's discussion will include forward looking statements. So please read the disclosures in the relevant documents.
Additionally, we will refer to non-GAAP financial measures during our discussion and in the accompanying slides.
Please see our press release for information about the comparable GAAP metric measures.
Speaker #4: And on our corporate website . Please note that all figures discussed during the call are in US dollars unless otherwise indicated . Today's discussion will include forward looking statements , so please read the disclosures in the relevant documents .
Rod Antal executive Chairman will be joined by Michael Sparks, Chief Financial Officer, and Bill Mcnevin EVP operations and sustainability on today's call I will now turn the line over to Rod.
Rod Antal: It helps, but it's not the driver of getting the government to give us the approval.
Owei Sabit: That's it for me, Rod. Thanks for taking my questions.
Speaker #4: Additionally , we will refer to non-GAAP financial measures during our discussion and in the accompanying slides . Please see our press release for information about the comparable GAAP measures .
Rod Antal: Great. Thanks, Owei.
Great. Thanks, Alex and good afternoon to you all.
Third quarter results have us tracking to close out the year in the lower half of our production guidance, where we continue to expect a stronger fourth quarter.
Operator: Once again, if you have a question, please press star then one. The next question comes from Don DeMarco with National Bank Financial. Please go ahead.
Speaker #4: Rodney Antal Executive Chairman will be joined by Michael Sparks Chief Financial Officer and Bill Mcnevin , EVP , operations and Sustainability . conference today's call .
Don DeMarco: Thank you, operator. Rod and team, thank you for taking my call. First off, yeah, encouraging to hear what you just mentioned about the high level of public support for the reopening. But to my first question, I think I'll turn to Hod Maden. Of course, as you mentioned, there's a go-forward decision that's pending in the coming months. Looking at the guidance, you've reiterated guidance, but it seems like you might be tracking the low end of the range. Is there any items that may have been in the scope this year that's going to be carried into 2026?
Our full year all in sustaining costs are trending towards the high end of annual guidance and this is largely due to the impacts of higher gold prices on royalties as well as the share price performance over the year to date impacting share based compensation calculations.
Speaker #4: I will now turn the call over to Rod .
Speaker #5: Great . Thanks , Alex , and good afternoon to you all . Our third quarter results have us tracking to close out the year in the lower half of our production guidance , where we continue to expect a stronger fourth quarter .
Generally the third quarter results were in line with our expectations before.
Speaker #5: Our full year all in On of higher gold prices on royalties , as well as the share price performance over the year to date , impacting share based compensation calculations .
Before working capital adjustments, we generated $72 million.
Free cash flow and we maintain a very healthy cash and liquidity profile to support the continued investment in growth opportunities across the business.
Rod Antal: You're talking in particular in terms of the spend, Hod Maden?
Don DeMarco: Yeah, that's right. You're at 44 million year to date. I think guidance is 60 to 100. So it seems that you're on a pace to kind of hit the lower end of that range.
We also made great progress on a number of other initiatives in the quarter.
The Cripple Creek and Victor Technical report should be ready for publication in the coming weeks.
Rod Antal: Yeah. Look, I think, sorry, Michael was going to say something, but I'll jump in. He paused for a second. We'll actually probably be more towards the midpoint of that guidance range. Yeah, it's sort of a ramp-up, a normal type of, as you would expect, there's a ramp-up of spend. But the committed spend that we have for the work that we wanted to get through this year is well advanced. So we're on track to spend what we had allocated to the project. Yeah. It just happens to be the timing of the cash out the door.
This will provide our initial view of the potential at Cripple Creek with a technical report will feature mineral reserves that are aligned with the already in progress Amendment 14 expansion permit.
At Horn Mountain, we have now spent $44 million advancing the project this year and remain on track for our full year growth capital guidance is $60 million to $100 million.
A key milestone of the work this year will be.
Owei Sabit: I see. Okay. Was there anything else on that?
The comprehensive update included with a new technical report.
Rod Antal: No, look, the work's actually gone along very well. The effort that we put in this year was all predicated on using that information for the comprehensive update to the tech report, which is all coming together. And that is really the basis of what we'd be using to make a project approval decision to move forward. So everything's moving along on track in those regards, and I'm really pleased with the work that's been done at the site.
This will form the basis of the project and construction decision in the coming months.
To this end on Madden remains one of the most compelling undeveloped copper gold projects in the entire sector.
And work completed to date reinforces our view if extremely attractive asset returns.
Across the rest of the portfolio, we have continued to make great progress in advancing organic development projects.
Including Buffalo Valley at Marigold.
Pulque at Seabee and quarter Darius at Puna.
We're seeing some very encouraging results from the summer drill campaigns across all of these targets, where we hope to emulate the initial success of adding the initial three years of mine life extension of Puna.
Owei Sabit: Okay. Thank you. So we'll look forward to that go-forward decision. Will there be a mine plan that's published at around the same time? And is the go-forward decision tied into Çöpler in any way? Do you first want to see the Çöpler mine restarted before you commit to building another mine in the country? So just two parts of that question asking about the report and the potential connection with Çöpler.
Bill will speak more of this later in the call.
And lastly, we continue to make good progress at Jetblue and remains fully committed to our re stock.
We are in close communication with the relevant governmental authorities as we seek approvals to bring the mine back on line.
Rod Antal: Yeah. Yeah. Well, look, it'll be a comprehensive refresh of the technical report, Don, which we'll publish.
Overall, it was a solid quarter and as expected with good progress made on a number of initiatives across the portfolio.
Owei Sabit: Thank you.
Rod Antal: Remember when we acquired the asset. There was a tech report available at the time. But we said that we wanted to do the work to ensure that what was contained therein is a project that we can actually deliver to. So the effort around the time since we acquired it has been going through all of the technical components around flowsheets, process flowsheets, all the met models, the geomet models, the geotechnical work around the site. It's a complex site from that perspective. And then moving forward with the early stage, some of the earthworks and civil works that are going on right now to ensure when we look at the critical path tasks to get the project underway and on schedule once we finally release the new schedule, we've got a head start on it.
So now I'm going to call turn the call over to Michael to bring you through the quarter three financials, starting on slide number four.
You Rod and good afternoon, everyone in.
In the third quarter, we produced 103000 gold equivalent ounces at an all in sustaining costs of $2359 per ounce for $2114 per ounce, excluding costs incurred at <unk> during the quarter.
For the full year production of 327000 gold equivalent ounces is in line with plan and we are on track to finish within our full year guidance of 410 to 408 480000 gold equivalent ounces, albeit in the lower half of that range.
As Rod noted higher than forecasted royalty costs and share based compensation coupled with production in the lower half of guidance is pushing our ASC towards the top end of our full year cost guidance range.
We ended the quarter in a strong financial position with $409 million in cash and total liquidity of over $900 million.
Rod Antal: So as I mentioned, all of that goes into the update, as well as then the sort of market work around going out to market and getting new pricing in today's dollars for the project itself. So all going very well, as I mentioned. In terms of the dependency, I guess, around the project decision itself on Çöpler, I've said all along we're treating them as mutually exclusive from that point. It's an entirely different project in an entirely different region of Türkiye. It has a completely different set of stakeholder groups. If you remember, the project is fully permitted, and that's really important. So we're not waiting on any permits. And the efforts on the ground around ensuring we have good community relations and good social support have been going along with the project development itself because they're a completely different group.
Our strong balance sheet ensures capacity to fund our numerous growth initiatives across the portfolio, which includes hog Madden, where we incurred another $17 million in capital during the quarter.
We are very excited about the progress of hot Madden and look forward to sharing an updated life of mine plan and construction decision for the project in the coming months.
Let's move on to our quarterly financial results on slide five.
In the third quarter, we sold 105000 gold equivalent ounces at an average realized gold price above $3500 per ounce net income attributable to SSR mining shareholders was $65 4 million or 31 cents per diluted share while adjusted net income was $68 4 million.
Or 32 cents per diluted share.
As highlighted in the table free cash both in this quarter was impacted by working capital movements, particularly inventory movements at Marigold, and CCM b as well as prepayments associated with development activities at hard Madden.
Accordingly free cash flow before changes in working capital was $72 million highlighting our strong margin. Despite continued investment in growth initiatives across the portfolio now.
Rod Antal: So we're not attaching a dependency on Çöpler to the Hod Maden decision.
Now over to Bill for an update on the operating operations starting on slide six.
Owei Sabit: Okay. Thank you for that. And then, just as a final question, if we just take a step back, question about your strategy. I mean, certainly, you've got a lot of organic opportunities within the portfolio, and then there's potential other growth levers with respect to M&A. Can you share any bias, whether for potential growth or how your strategy looks ahead over the next, say, five or so years?
Thanks, Michael.
First start with the HSA.
We continue to advance initiatives aimed at ensuring our purpose and values are reflected in everything we do.
I will share some examples of this.
We've seen improvements in how we're applying risk review and mitigation.
But they are planning and field execution.
Rod Antal: Really no change, Don. I think we've always been fairly transparent around the criteria that we look at from an M&A perspective. And M&A can be everything from strategic to bolt-on acquisitions like we had with Cripple Creek and Victor. There is a number of criteria that we look for. And it needs to fit within those criteria for it to be a strategic fit. And we've always been very true to that. And we'll continue to follow that because I think it does provide a discipline to the way we look at the business. So no change at all. Building on the core jurisdictions we have, building on the platforms that we've got in Canada, US, Argentina, and Türkiye is sort of a first-order priority for us. And then looking for those value-accretive opportunities that might be available from time to time. So look, we'll stay true to that.
There has also been great progress on integrating progressive closure into a loss of mine plans.
Has the potential to reduce the overall cost of the business.
Now onto slide seven from entering.
In the third quarter Marigold produced 36000 ounces gold and I think providing 40 per ads.
As a result.
Born with plan and we continue to expect strong fourth quarter, albeit slightly below our initial expectations for the period.
As we have advanced mining at Red dog types too.
We have in Canada, the consistent grade profile aligned with our internal models.
However, the <unk> has had more funds than expected.
Resulting in the need for additional blending to ensure pad recovery performance.
Our technical teams at both Marigold and Seabee have been working collaboratively this year to improve ore body knowledge.
Rod Antal: I think it's good practice. And it means that when we bring something to market that we like, you know that it has gone through a fairly rigorous due diligence process, and it fits our strategy.
Focusing on processing planning.
Through these efforts, we're improving our approach to all blending at Merry go to ensure that we appropriately deal with the final <unk> camera.
With respect to growth.
Owei Sabit: Okay. Okay. Well, great. Thank you very much. That's all for me. And thank you again for taking my questions. And good luck with Q4.
We're advancing work on Buffalo Valley deposit with the goal of fully integrating the project into the Marigold lots of bond plan.
Rod Antal: Great. Thanks, Don. Appreciate it.
This work is progressing positively sofa.
Operator: 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.
We expect Buffalo Valley will provide a meaningful mine life extension opportunity for Mario.
And potentially complement our mineral reserve growth at new millennium.
Now on to slide <unk>.
<unk> had a solid quarter producing another 30000 ounces dealt with and I think of $17 56 per ads.
Key to however is the minus an NAV generated nearly $115 million and asset level free cash flow since acquisition.
An incredible result, given the 100 million in upfront consideration, we paid for the asset earlier this year.
Let's say seen Big Technical report is well on track for completion within the fourth quarter.
Yes.
<unk> initial mineral reserve life of mine plan.
<unk> has clearly established itself as a core operation in that portfolio.
We expect its technical report will showcase a 10 plus year lots of money.
And also highlight significant mineral resource upside to further extend the mine life.
The key bottleneck to burning these mineral resources to reserves.
The instrument of permitting for additional heap leach capacity.
And our teams are working hard to set up set us on the right path to success for decades to come.
I wanted to say that.
<unk> had a challenging quarter producing non SaaS announces it nicely.
<unk> thousand three per ounce.
These results reflected our continued focus on underground development as we noted in quarter two.
As well as some lower than expected growth.
We expect production to improve incrementally in the fourth quarter, but we remain focused on prioritizing underground development into year end as we aim to improve available stope inventory moving forward.
Work at bulky targets continues.
And we had some good success with the drill bit this summer as we aim to improve confidence in the existing mineral resources at the project and also test further opportunities to crowd.
We're excited about the potential here and look forward boding updates to the market next year.
On the phone or on slide 10.
And it continued its track record of solid performance in the third quarter and $2 4 million ounces of silver and I think of just $30 54 per ounce.
With the initial extension to chase operations announced in the third quarter.
We are working to advance other opportunities to extend mining at Chinchillas.
While also continuing to evaluate their stock.
We're excited about the potential here and.
We will provide further updates as warranted.
On to slide 11.
Lastly, at Hoffmann, we spent $78 million on engineering and solid establishment work in the quarter.
Year to date, we have spent $44 million advancing preconstruction activities project and remain on track for our full year guidance range of $60 million to $100 million in growth capital.
Our technical teams have continued to advance an updated technical report for the project as we move towards a construction decision in the coming months.
And the results continue to demonstrate an incredibly compelling project that could represent one of the highest margin projects sector once in production.
We look forward to providing more detail on these initiatives to the market in the coming months now I will turn it back to Rob for closing remarks.
Alright, Thanks, Michael Thanks Bill.
Progress in the quarter was solid on a number of fronts and we're well positioned for a strong close to the year with consolidated production along two are for your guidance.
We're making great progress key projects across the portfolio and with updated technical reports for Cripple Creek, and Victor and Hot Madden on horizon.
Where we are keen to showcase our broad future for each of those assets and their upside potential.
And of course with continued efforts towards a restart of Jetblue, we firmly believe SSR mining still represents a compelling value proposition moving forward.
So with that I'll turn the call over to the operator for any questions.
Thank you in Toronto.
We'll now begin the question and answer session and join the question queue. You May Press Star then one on your telephone keypad.
You'll hear tone acknowledging your request if you have anything.
A speakerphone please pick up your handset before pressing any key.
And then a question. Please press Star then two.
The first question comes from Amit <unk> with Scotia Bank. Please go ahead.
Hi, Roger and team and congrats.
Congrats on a pretty good quarter.
Couple of questions from me just.
Porcelain starting off with.
And your expectations of Q4.
As you guys said Q4 is expected to be a strong quarter.
Is this basically strength coming from Marigold NCC envy.
Just a follow up question to that in terms of my goal.
And the fine you are encountering that dot.
Based on how much can blend could some of that production.
And then Q4 spend into Q1 of next year.
Yes. Thanks.
I'll answer some of the questions of bills and.
Mario can go ahead and add any other color.
Sure.
Your answer to your first question around the quarter for years that was raw predominantly it was coming.
From Marigold.
As we've talked about before a stronger fourth quarter was always sort of set up that way.
To be the primary difference to quarter three.
And I think Cripple Creek itself will be more of what you're what you're saying.
And then.
From the answer to your question around the defined.
Yes, it certainly presents us with.
Then nacelle.
Necessity to.
Haynesville them differently in terms of the placement.
And having a violable more durable material to be out of Blaine. So.
That is what we're working through at the moment on how we get the.
The best result for Humira gold for the last quarter.
By managing through the.
The old placement in some regards where we don't have durable or valuable well stacked at or on the higher portions of the leach pad.
But where we do we're obviously is taking on the new light so that bill mentioned last quarter that we completed so.
That's the that will be the vacated finishing strongly at marigold for quarter four.
Okay and thanks for the color on that and then just at Seabee, obviously grade came in lower than expected.
Again was this negative reconciliation issue or we are not able to access.
Stope ore stopes that you were expecting to mindful in Q3.
I was a little bit but didn't really understand.
<unk>.
<unk> of the lower grade.
I'll hand that one over to bill.
Yeah.
Sandy in the quarter had a had a good quarter increasing in man of development, but we were doing which is our focus so we do have more.
Basel.
At the same time, we did have.
Some of them.
Material, we had an increased proportion of material from the gap hanging wall and some of that material came in at lower grade than what we had expected.
So that was that happens at some times, but.
Those are the drivers.
And based on the development that you've done obviously, we are expecting a better kind of Q4 and better understanding of the stopes that you have in hand kind of going into <unk>.
Yes, we still have we still had some mode.
Of development focus ahead of us for Q4, as well and we will continue to work diligently in but gap hanging wall and central and to get the best out of the ore body that we can.
There was no surprises in what we fans so to speak.
Sure.
Okay. Thanks for that.
And then just my last question I guess on chop floor. Rod you mentioned you guys are having discussions with the directory bodies in and things seem to be progressing any any kind of.
Is it more on the remediation side or on the on the restart side that the focus has been and then obviously.
Guessing you guys are pushing pretty hard on the restart site, but what I'm trying to understand is also is there any community support that you guys are getting right now.
That is let's say pushing.
Pushing the regulators to make some sort of a decision.
Moving into 2026.
Yes, it's less about the last part of your question I think.
If you sort of Tiger step back.
Since the incident itself.
Yes.
The work was on this and I'll say it again, because it's important.
Securing aside returning the.
Now most folks back to the families.
We moved into remediation, which.
I really focus on the clearing out with severely valley, which was done and completed and then it remember in the last sort of six months. The the efforts have been around providing the all of the technical aspects to the regulators for approval of the <unk> storage facility and the closure of the final closure of the.
The heap Leach pad, so it's sort of been a normal sequence of events that you would expect to go through.
And.
We are in constant dialogue with regulators, it's not sort of newer currencies has been going on since day one.
The incident itself.
So I'd say, we're closing off some of those technical aspects.
For.
The regulators two to approve it.
And that will be the case too.
Getting the approval to stop the operations.
But as a as it as it happens.
More recently in particular, you've seen it in the press so its nothing nothing that is not public.
There has been definitely a higher level of public.
Public support for a reopening very very United marches.
A lot of senior local folks supporting a reopening in the price and on T V and within the media more generally.
Actual uptick is actually.
A more naturally occurred.
Because of.
The fact that.
The community of the local community in particular are hurting around economic.
Activity with the with our mind shot sorry.
It's probably a coincidence and timing, but it really doesn't have that.
Bearing on it.
It helps but it's certainly it's not the driver of getting the government to give us the approval.
That's it for me thanks.
Thanks for taking my questions.
Great. Thanks.
Once again, if you have a question. Please press Star then one.
Our next question comes from Don Demarco with National Bank Financial. Please go ahead.
Thank you operator and.
Brad and team. Thank you for taking my call.
First off we are encouraging to hear what you just mentioned about the high level of public support for the reopening.
But that's my first question I think I'll turn to hard Madden and of course as you mentioned there is a go forward decision that's pending in the coming months.
At the guidance, you've reiterated guidance, but it seems like you might be tracking the low end of the range.
Is there any items that may have been in the scope. This year, that's going to be carried into 2026.
Youre talking in particular in terms of the spinner Hod Maden, Yes. That's right you were at 44 million year to date I think guidance of 6200. So it seems that you are on a pace to kind of hit the lower end of that range.
Yes look I think I'm, sorry, Michael was going to say sorry, EBIT also you're jumping.
He pauses ticket will actually probably be more towards the midpoint of that.
Okay got it and try and jump the yeah.
So it's sort of a ramp up of normal.
As you would expect as a ramp up of spend.
But the committed spend that we have for the work that we wanted to get through this year.
<unk> is well advanced so we're on track to spend.
What we had allocated to the project yeah. It just happens to be the timing of the cash out the door.
I see.
Okay was there anything else on that.
Okay that works actually going along very well.
Yeah, look I think um, sorry Michael was gonna say something but I'll do jump in. Um, he pulls for a second, we'll actually probably be more towards the, um, the midpoint of that. Um, okay, guidance range. Um, the the yeah it's a, it's an it's a sort of a ramp up a normal type of um as you would expect there's a, a ramp up of spend, um, but the committed spend that we have.
The the effort.
That we put in this year was all predicated on using that information for a comprehensive update to the Tech report.
Which is all we're all coming together.
That is really the basis of what we'd be using.
To make a project approval decision to move forward. So everything everything is moving along on track.
In those regards.
Fairly pleased with the.
With.
The work is being done at the start.
Okay. Thank you. So we'll look forward to that that Gulfport decision.
Would it be a mine plan that's published at around the same time.
And is the go forward decision tied into chirp learn any way might be the first one to see the trip remind restarted before you commit to building another mine in the country. So just two parts of that question asking what the report in.
Actual connection with Kepler.
Yeah, Yeah, well look it will be a comprehensive refresh of the technical report, Tom which won't publish.
And we.
We have and remember when we when we acquired the asset.
There was a tick report available at that time.
That we said, we said that we wanted to do the work to ensure that what was contained there being is a project that we can actually deliver too so the effort around.
Around the.
The time since we acquired it has been.
Going through all of the technical couponites around flow sheets process flow sheets.
The met models <unk> models.
Geotechnical work around the site.
It's a complex saw it from that perspective, and then moving forward with the early stage some of the earthworks and civil works that are going on right now.
To ensure that when we look at the critical path tasks.
To get the project.
Underway and on schedule once we finally released the new schedule.
We've got a head start on it so as I mentioned all of that all of that goes into the update as well as in the sort of market.
Work around going out to market and getting.
Pricing in todays dollars for the project itself so.
All going very well.
As I mentioned in terms of the.
The dependency I guess around the project decision itself.
Onshore blocks I've said I've said all along.
We're treating them as mutually exclusive from that point.
It's an entirely different project in an entirely different region of Turkey.
It has a completely different set of stakeholder groups. Our if you remember the project is fully permitted.
And that's really important so we're not waiting on.
You know any any permits and.
The efforts on the ground around ensuring.
We have good community relations and good social support.
Had been going along.
With the project development itself, because they're there a completely different group so.
We're not we're not attaching a dependency on share blood to the heart Madden decision.
Okay. Thank you for that.
And then just as a final question if we just take a step back.
Question about your strategy.
I mean, certainly you've got a lot of.
Organic opportunities within the portfolio.
And then there's potentially other growth levers with respect to M&A can.
Can you share any bias.
Weather for potential growth or how your strategy looks ahead over the next say five five or so years.
Really not changed on I think John we've always been fairly transparent around the criteria that we look at.
Hey, Matt I perspective, AMRI can be everything from strategic bolt on acquisitions Lucky, we had with Cripple Creek and Victor.
There is a number of criteria that we look for.
And it needs to fit within our criteria for it to be a strategic fit.
And we've always been very true to that.
And then we will continue to follow that because I think it does provide a discipline to the way we look at the business. So.
No change no change at all we are building on the core jurisdictions, we have building on the platforms that we've got in.
Canada U S margin trader and Turkey are you sort of an open first order of priority for us and and Theyre looking for those value accretive opportunities that might be available.
From time to time, sorry look we'll stay true to that I think its good practice.
It means that when we bring something to market that we like.
You know as that.
It has gone through a fairly rigorous due diligence process and it fits on strategy.
Okay, Okay, well great. Thank you very much that's all for me and thank you again for taking my questions.
And good luck with Q4.
Thanks, Don appreciate it.
This concludes our question and answer session and today's conference call you may disconnect your lines.
Participating.
I'm back.