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SSR Mining reports higher earnings

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SSR Mining Inc. announced adjusted net earnings of $84.79 million, or 40 cents per share, for the third quarter, up from $70.03 million in the 2020 quarter, and production of 186,941 gold equivalent ounces in the quarter.

The Denver-based company also reported on Nov. 3 that net income attributable to shareholders was nearly $57.18 million, or 27 cents per share, compared with $26.75 million, or 19 cents per share, in the 2020 quarter. Revenue totaled nearly $322.85 million, up from $225.41 million in the 2020 quarter.

Rod Antal, president and chief executive officer of SSR Mining, said that “the third quarter of 2021 again demonstrated the strong operational and financial results synonymous with SSR Mining,” and he said that “operationally, we delivered records across the portfolio.”

Earnings of 40 cents per share on the adjusted net income beat Wall Street estimates of 32 cents per share for the company that combined in an all-share merger with Alacer Gold in the third quarter of last year.

The company also declared a dividend of 5 cents per share.

The gold production was up from 107,556 gold equivalent ounces in the quarter ending Sept. 30, 2020, and all-in sustaining costs per ounce averaged $1,006 per ounce, down from $1,034 per ounce in last year’s quarter.

Antel stated that despite inflationary pressures, the company is on track for the guidance of 720,000 to 800,000 ounces of gold in 2021 below the estimate of $1,050 to $1,110 all-in sustaining costs per ounce for the year.

“This strong cost performance has allowed us to lower our 2021 AISC guidance to $1,000 to $1,040 per gold equivalent ounce,” he said.

In Nevada, the Marigold Mine at Valmy produced 52,049 ounces of gold in the quarter as the mine moved a record 25.4 million metric tons of material, due to shorter haulage cycles and increased loading fleet capacity, according to the earnings report.

Total exploration expenditures at Marigold in 2021 are estimated at $18 million, targeting oxide mineral resource additions and conversion at Mackay, Valmy, New Millennium, and Trenton Canyon, all part of the Marigold Mine.

The company also stated that a district master plan technical report is expected to be completed in 2022 for the Marigold Mine.

The Copler Mine in Turkey produced 82,975 ounces of gold in the third quarter at an AISC of $714 per ounce, and the company reported that the updated environmental impact assessment for the mine, including a flotation circuit, has been approved in the current quarter.

The Seabee operations in Saskatchewan produced 22,589 ounces of gold at an AISC of $898 per ounce, and the Puna Mine in Argentina produced 2.2 million ounces of silver at an AISC cost of $12.32 per ounce, the earnings report states, also mentioning that year-to-date production of 6 million silver ounces at Puna was a record for the period.

The average realized gold price for the third quarter was $1,792 per ounce, down from $1,914 per ounce in the 2020 quarter, and the average realized silver price was $24.06 per ounce, down from $26.69 in last year’s third quarter.

SSR Mining also reported that the company entered into a definitive agreement during the third quarter to sell a portfolio of royalty interests and deferred payments to EMX Royalty Corp. for $100 million, including $33 million in cash, $32.5 million in EMX shares and $34 million in deferred payments as milestones are met.

The transaction with EMX closed on Oct. 21.

SSR Mining additionally announced that the company bought back more than 4.8 million shares at an average price of $16.20 per share in the third quarter in a program to boost capital for shareholders that totaled nearly $150 million from April 19 to Sept. 30.

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