SSR Mining Inc. (NASDAQ:SSRM) Q2 2019 Earnings Conference Call - Final Transcript

Aug 09, 2019 • 11:00 am ET


SSR Mining Inc. (NASDAQ:SSRM) Q2 2019 Earnings Conference Call - Final Transcript


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Good morning, everyone and welcome to SSR Mining Second 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. Please go ahead.

Stacey Pavlova

Thank you, Operator. Good morning, ladies and gentlemen. Welcome to SSR Mining's second 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 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, Explorations.

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'm very pleased to welcome you to our call to discuss our second quarter 2019 operating and financial results.

We delivered a strong quarter, as we produced nearly 100,000 gold equivalent ounces and progressed a number of strategic initiatives while we maintained our financial strength. All three mines achieved sold results. At Marigold, we produced 55,000 ounces of gold, while stacking nearly 30% more ore on the leach pad at a higher grade compared to Q1, setting us up well for the remainder of the year. At Seabee, higher gold grade and recovery led to a strong quarterly production of over 26,000 ounces. The new underground equipment was commissioned early in the second quarter and we are already seeing an improved underground development rate as well. Puna operations produced 1.5 million ounces of silver with silver grades tracking well to the mine plan. So overall, the solid performance delivered by each operation positions us well for the year.

With the first half of the year behind us, we are taking this opportunity to revise our guidance at each operation as Greg will discuss later. On a consolidated basis, we're improving our production guidance and increasing our midpoint production to 400,000 gold equivalent ounces. Largely due to the strong metal prices, which drives royalties upwards, we are marginally increasing our cash cost guidance with midpoint now expected to be $735 per gold equivalent ounce.

During the second quarter, we announced the acquisition of the Trenton Canyon and Buffalo Valley properties located immediately south of Marigold mine. This acquisition almost doubles our land package and provides us with the opportunity to grow the reserves and resources and potentially extend Marigold's mine