SSR Mining Inc. (NASDAQ:SSRM) Q4 2019 Earnings Conference Call - Final Transcript
Feb 21, 2020 • 11:00 am ET
Seabee and built on our track record of mineral reserve and resource growth. At Marigold, mineral reserves increased by 18% to 3.9 million ounces at a slightly higher head grade of 0.49 grams a tonne. In any year, that would be an impressive result, but it's all the more so when you consider this year Marigold should produce 4 million pounds in its 31st year of continuous operation. A real reminder, if one is needed, of what a truly great mine it is.
At Seabee, we increased measured and indicated mineral resources by 23% to 1.1 million ounces with an additional 583,000 ounces of inferred mineral resources, an increase of 21%. This year, our focus will turn to converting these ounces into reserves.
On the M&A side, we completed the acquisition of both Trenton Canyon and Buffalo Valley from Newmont. This acquisition brings our land holding in and around Marigold to almost 3 times what it was when we bought the mine in 2014. Trenton Canyon provides both oxide exploration potential as a supplement to Marigold and high-grade sulphide exploration potential at depth [Phonetic].
We also completed the acquisition of the remaining 25% interest in Puna, we didn't own. 2019 also marked the release of our inaugural sustainability report. The report was an excellent collective effort from all our mine sites and corporate office. We look forward to the release of our second annual report to be published later this year as we continue to inform the public about all the initiatives we implement across our portfolio and in the communities in which we operate.
In summary, 2019 was another successful year for SSR Mining and I'd like to thank our employees for delivering these great results that have positioned us for a year of strong operating cash flow in 2020.
With that, I'll turn the call over to Kevin, who will discuss our operational performance in more detail.
Thank you, Paul. We finished 2019 with strong operating results for Q4 and for the year. Our safety performance during the last quarter was very good and the recordable incident rate for 2019 was the lowest in our history as an operating company. Operationally 2019 was a successful year across all three sites.
We achieved overall production and cost guidance for the 8th consecutive year. In total, we produced 421,800 consolidated gold equivalent ounces, including 106,200 gold equivalent ounces produced in the fourth quarter.
Cash costs for Q4 were $716 per gold equivalent ounce while cash costs for the year were $740 per gold equivalent ounce. Each operation exceeded the top end of production guidance for the year. We set yearly production records at all three sites. This was driven by higher grade at Seabee and strong operating performance at Marigold. Puna operations have stabilized, as we had previously indicated would occur, with significantly improved mill throughput and metal recoveries in the quarter.
At Marigold, we produced 59,200 ounces of gold in Q4, 12% more than in Q3, mainly due to