SSR Mining (SSRM) Tops Q3 EPS by 23c, Revenues Beat

SSR Mining (NASDAQ: SSRM) reported Q3 EPS of $0.23, $0.23 better than the analyst estimate of $0.00. Revenue for the quarter came in at $147.85 million versus the consensus estimate of $100.34 million.

Third Quarter 2019 Highlights:(All figures are in U.S. dollars unless otherwise noted)

• Strong financial performance: Reported positive income from mine operations at all operations totaling $51.9 million, net income of $18.1 million and adjusted attributable net income of $28.4 million, or $0.23 per share. (1)
• On track for higher annual gold equivalent production: Achieved quarterly consolidated production of 104,775 gold equivalent ounces at cash costs of $759 per payable ounce of gold sold. (1)
• Record production and cash costs at the Seabee Gold Operation: Produced a record 32,345 ounces of gold at record low cash costs of $373 per payable ounce of gold sold under SSR Mining management. Achieved higher gold recovery of 98.8% and gold grade of 12.4 g/t, quarterly records for the operation under our ownership. (1)
• Strong operating performance at the Marigold mine: Produced 52,968 ounces of gold at lower cash costs of $822 per payable ounce of gold sold. Stacked 6.4 million tonnes of ore at a higher quarterly gold grade of 0.51 g/t. Total material mined was over 19 million tonnes, continuing to demonstrate strong and efficient operating practices. (1)
• Improved production at Puna Operations: Increased silver mill feed grade and recovery led to 1.7 million ounces of silver production at cash costs of $14.22 per payable ounce of silver sold. Ore mined was significantly higher than ore milled, increasing the ore stockpile in advance of the rainy season. (1)
• Exploration success at Marigold's Red Dot deposit: We expect to extend the current Marigold life of mine plan into the early 2030's with Red Dot phases 1, 2 and 3.
• Maintained strong balance sheet and liquidity: Increased cash balance to $474 million and total liquidity of approximately $526 million including our marketable securities.
• Consolidated 100% ownership in Puna Operations: Completed acquisition of the remaining 25% interest in Puna Operations leading to an immediate increase in silver production profile and improved operational flexibility.
• Exercised equity participation right in SilverCrest Metals financing: Maintaining our 9.8% interest and exposure to the high grade Las Chispas project.
• Marigold mine EIS permit received: Subsequent to September 30, 2019, Marigold received a positive Record of Decision on its Environmental Impact Statement ("EIS"). The receipt of the new EIS permits the expansion of mining, including Red Dot and its associated facilities.

Paul Benson, President and CEO said, "We delivered another strong quarter, with increased production at lower cash costs, which positions us well to meet or exceed guidance for the eighth consecutive year. Our strong operating performance resulted in improved margins, earnings, operating cash flow and free cash flow. Notably, we have an incredibly strong financial position with over half a billion dollars in cash and marketable securities."

For earnings history and earnings-related data on SSR Mining (SSRM) click here.

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