SSR Mining (NASDAQ: SSRM) reported Q2 EPS of ($0.02), $0.02 worse than the analyst estimate of $0.00. Revenue for the quarter came in at $92.49 million versus the consensus estimate of $100.34 million.
Paul Benson, President and CEO said, "Each of our sites have responded admirably to this challenging environment, implementing new protocols to keep our employees safe when they come to work. Corporately, we reported positive income from mine operations totaling $34 million during the quarter and our cash balance was further strengthened, sitting at $462 million as of June 30. We have been pleased with the safe ramp-ups at both Seabee and Puna, with both operations implementing phased restarts during the quarter. Importantly, we continued to advance our zero-premium merger with Alacer Gold and anticipate closing the transaction in the near-term."
Second Quarter 2020 Highlights:(All figures are in U.S. dollars unless otherwise noted)
- Financial performance: With Seabee Gold Operation and Puna Operations on COVID-19 related temporary care and maintenance for the quarter, reported positive income from mine operations totaling $34.2 million, a net loss of $6.3 million, or loss per share of $0.05, and adjusted attributable net loss of $2.1 million, or loss per share of $0.02.(1)
- Announced a zero-premium merger with Alacer Gold: Completion of the transaction with Alacer Gold will create a leading intermediate precious metals producer with robust margins, strong free cash flow generation, and long mine lives led by a highly experienced management team with a track record of value creation.
- Maintained strong balance sheet and liquidity: Cash balance at quarter end increased to $461.7 million.
- Strong operational result at the Marigold mine: Produced 49,918 ounces of gold at cash costs of $864 per payable ounce of gold sold.(1) Total material mined was over 22 million tonnes, a quarterly record in Marigold's 31 year history.
- Continued exploration success: Drilling at Trenton Canyon yielded high-grade gold results from newly discovered sulphide mineralization in a geologic setting analogous to other high-grade underground gold mines in Nevada.
- Safe restart of operation at Seabee Gold Operation and Puna Operations: At Seabee, a phased restart was implemented beginning with underground mine development in early June. At Puna Operations, transport of ore from Chinchillas to the plant began May 22, followed by concentrate production beginning June 12, and mining of ore at the Chinchillas mine on June 25.
- Divested SilverCrest equity position: On May 14, 2020, sold entire SilverCrest Metals Inc. investment for a pre-tax gain of approximately C$55.3 million.
For earnings history and earnings-related data on SSR Mining (SSRM) click here.
