SSR Mining Inc. (NASDAQ:SSRM) Q1 2019 Earnings Conference Call Transcript

May 10, 2019 • 11:00 am ET


SSR Mining Inc. (NASDAQ:SSRM) Q1 2019 Earnings Conference Call Transcript


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Good morning, everyone and welcome to SSR Mining's First Quarter 2019 Conference Call. This call is being recorded. At this time for opening remarks and introductions, I would like to turn the call over to Stacey Pavlova, Manager, Investor Relations.

Stacey Pavlova

Thank you, operator. Good morning, ladies and gentlemen. Welcome to SSR Mining's first quarter 2019 conference call during which we will provide an update on our business and a review of our financial performance. Our financial statements and management's discussion and analysis have been filed on SEDAR and EDGAR and are also available on our website. To accompany our call, there is an online webcast and you will find the information to access the webcast in our news release relating to this call. Please note that all figures discussed during the call are in US dollars unless otherwise indicated. All references to cash costs and all-in sustaining costs are per payable ounce of metal sold. We will be making forward-looking statements today, so please read the disclosures in the relevant documents.

Joining us on the call this morning are Paul Benson, President and CEO; Greg Martin, our CFO; Kevin O'Kane, COO; and Carl Edmunds, Vice President, Exploration. Also present is John DeCooman, Senior Vice President, Business Development and Strategy.

Now I would like to turn the call over to Paul for opening remarks.

Paul Benson

Thank you, Stacey. Good morning, ladies and gentlemen. I am very pleased to welcome you to our call to discuss our first quarter 2019 operating and financial results. We are off to a very strong start for the year, as we produced over 112,000 gold equivalent ounces, a new record for the company, and all three operations delivered solid performance.

At Seabee, we delivered record quarterly production of over 31,000 ounces of gold, and over 50% increase quarter-on-quarter. It's worth noting that we had another quarter of increase in mill throughput, with further increases expected in the second half of the year, in line with our goal of achieving 1,050 tonnes per day of mill throughput for 2019. At Marigold, we produced over 53,000 ounces of gold despite some challenging weather conditions, setting up the mine well for the remainder of the year. At Puna, we doubled silver production quarter-on-quarter to 2.4 million ounces as we benefited from a full quarter of processing ore from the Chinchillas mine after declaring commercial production on December 1 last year. As ramp up of the Chinchillas mine was substantially completed in the first quarter on budget, we are now focused on achieving steady state production.

So overall, I am pleased with the solid results delivered by each operation. From an exploration perspective, as Carl will speak to shortly, our 2019 programs at Marigold, Seabee and Puna are underway and we look forward to providing results as the year progresses. We are also pleased with our financial performance during the quarter. In March, we completed our $230 million convertible notes offering to refinance a portion of our existing 2013 convertible notes, and