On February 27, 2024, SSR Mining Inc (SSRM, Financial) released its 8-K filing, disclosing both its fourth quarter and full-year financial results for 2023. The report was overshadowed by the tragic incident at the Çöpler mine in Türkiye, where operations have been suspended due to a significant slip on the heap leach pad, leaving nine individuals unaccounted for. The company is currently unable to predict when operations will resume and is assessing the potential impacts on its business and financial condition.
SSR Mining Inc is a precious metals mining company with a focus on gold and silver production in the Americas. The company operates the Marigold mine in Nevada, the Seabee Gold Operation in Saskatchewan, and the Puna mine in Argentina. The Marigold mine is a significant contributor to SSRM's gold production, while the Puna mine is a principal source of its silver production.
Financial and Operational Highlights
The company's financial results for the fourth quarter included an attributable net loss of $217.8 million, or $1.07 per diluted share, primarily due to a non-cash impairment at Çöpler. However, when adjusted for certain items, the attributable net income for the quarter was $127.1 million, or $0.59 per diluted share. For the full year, SSRM reported an attributable net loss of $98.0 million, or $0.48 per diluted share, and an adjusted attributable net income of $276.5 million, or $1.29 per diluted share.
SSRM's production for the fourth quarter was 211,226 gold equivalent ounces, with a full-year production of 706,894 gold equivalent ounces, consistent with the company's 2023 guidance. The cost of sales per gold equivalent ounce for the fourth quarter was $1,064, and the all-in sustaining cost (AISC) was $1,326 per gold equivalent ounce. For the full year, the cost of sales was $1,141 per gold equivalent ounce, and the AISC was $1,461 per gold equivalent ounce.
Despite the challenges faced due to the Çöpler Incident, SSRM's financial achievements, such as generating significant free cash flow and maintaining a strong liquidity position, are crucial for the company's resilience. These achievements are particularly important in the metals and mining industry, where cash flow and liquidity are key to weathering operational uncertainties and funding future growth initiatives.
Response to the Çöpler Incident
Rod Antal, Executive Chairman of SSR Mining, expressed deep sympathy for the families and colleagues of the missing personnel and acknowledged the support from government agencies. The company has suspended its quarterly dividend payments and the automatic share purchase plan as it continues to assess the impact of the incident. With a year-end 2023 cash balance of nearly $500 million and ongoing operations at other sites, SSRM does not anticipate near-term liquidity concerns.
The company has also retracted its previously issued 2024 and long-term guidance forecasts for Çöpler and Türkiye. Detailed disclosure related to the Çöpler Incident is included in the company's 10-K filing, and further updates will be provided on SSR Mining's website.
"Right now, our attention is focused at Çöpler. The events of February 13, 2024 were tragic and overshadow today’s results. We are heartbroken and sympathize with what we know is an extraordinarily stressful time for the families, friends and colleagues of the nine missing personnel," said Rod Antal.
SSRM's financial strength prior to the incident, with a capital returns yield of approximately 5.0% for the twelve months ending December 31, 2023, and a strong year-end cash and liquidity position, underscores the company's operational efficiency and prudent financial management. However, the suspension of operations at Çöpler and the subsequent retraction of guidance highlight the significant challenges and uncertainties the company faces going forward.
In conclusion, SSR Mining Inc's 2023 financial results demonstrate a robust operational performance, overshadowed by the unfortunate Çöpler Incident. The company's focus on safety, environmental stewardship, and financial prudence will be critical as it navigates through this difficult period and works towards resuming operations at Çöpler.
Explore the complete 8-K earnings release (here) from SSR Mining Inc for further details.
