Release Date: February 18, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- SSR Mining Inc (SSRM, Financial) closed 2024 with strong operating results and a year-over-year increase in consolidated reserves.
- The acquisition of Cripple Creek and Victor Mine from Newmont is expected to increase scale, free cash flow, and portfolio diversification.
- Marigold celebrated 5 million ounces of life-of-mine gold production, showcasing the quality of the mine and team.
- Puna achieved record production of 10.5 million ounces of silver in 2024, hitting the top end of its increased production guidance.
- The company has a strong financial position with $388 million in total cash and a net cash position of $158 million, providing liquidity for future investments.
Negative Points
- The tragic incident at Ãöpler has left a significant impact, and operations are still awaiting restart pending discussions with Turkish authorities.
- All-in sustaining costs (AISC) were high at $1,857 per ounce in Q4 2024, with full-year AISC at $1,878 per ounce.
- Care and maintenance costs at Ãöpler and Seabee totaled $36 million in Q4, impacting net income.
- Marigold's costs are expected to remain elevated in 2025 due to increased royalty expenses and cost pressures.
- The remediation and containment costs at Ãöpler are estimated between $250 million to $300 million, with significant spending still required.
Q & A Highlights
Q: Should we expect the strong performance at Seabee in Q4 2024 to continue into 2025?
A: (William Macnevin, EVP, Operations and Sustainability) While the Q4 performance was exceptional due to high grades, such results cannot be expected every quarter. However, exploration continues, and the aim is to maintain strong performance over the long term.
Q: Is there any key information or study the regulators are waiting for before deciding on the restart of operations at Ãöpler?
A: (Rodney Antal, CEO) The restart is contingent on a package of work, including site control, environmental safety, and remediation efforts. The C&I report is part of ongoing discussions with regulators, and the focus is on finalizing closure plans for the heap leach facility.
Q: Does the development of Hod Maden depend on the restart of operations at Ãöpler?
A: (Rodney Antal, CEO) The development of Hod Maden is independent of Ãöpler's restart. The focus is on developing a detailed technical plan and preparing for project financing discussions.
Q: How does the initial reserve at Buffalo Valley fit into Marigold's production profile?
A: (William Macnevin, EVP, Operations and Sustainability) Buffalo Valley is a promising satellite deposit. It is undergoing feasibility studies and permitting, with production expected in several years, contributing to Marigold's future growth.
Q: Why did SSR Mining use conservative commodity price assumptions for its resource estimates?
A: (Rodney Antal, CEO) The decision was based on maintaining consistency, especially for Ãöpler, which is on care and maintenance. The company reviews consensus and peer practices, and adjustments may occur in 2025, considering the CC&V acquisition.
Q: What is the timeline for the remaining remediation and containment costs at Ãöpler?
A: (Michael Sparks, CFO) The spend will be lower in 2025 as engineering for the e-storage facility progresses. Material movement will increase once the facility is constructed, with costs spread over several years.
Q: Is the investment plan for Marigold still on track for lower production in 2025 and a rebound in subsequent years?
A: (Rodney Antal, CEO) The previous technical report remains a valid reference for Marigold's production outlook, with no significant changes expected.
Q: What are the conditions for reinstating operating approvals for Ãöpler?
A: (Rodney Antal, CEO) There are no specific conditions like increased local ownership or a new EIA. The focus is on completing engineering for the storage facility and heap leach pad remediation, with ongoing discussions with regulators.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
