SSR Mining Q2 2023 Earnings Report
Key Takeaways
SSR Mining reported second quarter 2023 results with attributable net income of $74.9 million, or $0.35 per diluted share, and adjusted attributable net income of $75.1 million, or $0.35 per diluted share. The company produced 156,625 gold equivalent ounces at a cost of sales of $1,155 per ounce and AISC of $1,633 per ounce. They also repurchased 2.7 million shares for $40.1 million.
Attributable and adjusted attributable diluted earnings per share of $0.35 and $0.35, respectively.
Quarterly production of 156,625 gold equivalent ounces at cost of sales of $1,155 and AISC of $1,633 per ounce.
Quarterly operating cash flow and free cash flow of $80.3 million and $22.4 million, respectively.
Repurchased 2.7 million shares for $40.1 million in the second quarter.
SSR Mining
SSR Mining
Forward Guidance
SSR Mining expects improved consolidated production of approximately four hundred thousand gold equivalent ounces at reduced costs in the second half of the year, resulting in strong free cash flow generation. The Company’s consolidated 2023 production guidance of 700 to 780 thousand gold equivalent ounces at cost of sales of $1,055 to $1,115 per gold equivalent ounce and AISC of $1,365 to $1,425 per gold equivalent ounce remains unchanged.
Positive Outlook
- Seabee is positioned for an improved second half, particularly as production levels and grades improved in July.
- The company is on track to exceed $100 million in capital returns in 2023, or a 3.4% yield.
- Technical work continues to advance to support anticipated updated life of mine plans at Çöpler and Marigold.
- Waste stripping activities were initiated at Çakmaktepe Extension and remain on track for first gold production from the project within the year.
- Initial site preparation activities are currently underway at Hod Maden, and an updated technical report and construction decision for the project are expected in 2024.
Challenges Ahead
- Tracking to the lower end of consolidated production guidance as a result of Seabee’s year-to-date performance.
- Planned maintenance in the Çöpler sulfide plant will be completed in the third quarter of 2023, which is expected to affect production profile.
- Çöpler’s production profile is expected to be 50 to 55% weighted to the fourth quarter reflecting the maintenance shutdown in the third quarter.
- Sustaining capital spend at Seabee was concentrated in the first half of the year as a result of the winter road season.
- Lower production for the three months ended June 30, 2023, at Seabee is attributable to lower grades mined and processed as Seabee continued to rebound from unplanned maintenance downtime in the first quarter of 2023.