SSR Mining's Focus on ESG Initiatives and Growth Plans
2023-07-30
SSR Mining held its first quarter 2023 earnings call, where the company provided updates on its business performance, financial results, and future plans. The meeting highlighted the company's strong first-quarter performance and its commitment to capital returns and share buybacks. One of the key topics discussed was the company's focus on ESG initiatives and sustainability.
During the meeting, the President and CEO, Rod Antal, addressed the performance of the Seabee asset, which faced challenges in the first quarter due to equipment downtime and unscheduled maintenance. This resulted in a deviation from the planned mine schedule and accessing lower-grade areas. However, Antal assured that the fleet is now back up and running.
Analyst Cosmos Chiu inquired about the recovery process and whether the mine would be able to reach the reserve grade of 6.35 grams per tonne. Antal responded that once operations return to normal, they would expect to achieve the average reserve grade for the year.
Chiu also asked about the potential for higher grades in Seabee, considering the positive grade reconciliation experienced in the previous year. Antal mentioned that they have an exploration program focused on the continuation of mineralization at depth. However, he cautioned against relying solely on finding higher grades.
In conclusion, the meeting highlighted the challenges faced by the Seabee asset in the first quarter, the recovery process, and the potential for achieving the reserve grade. The success of the exploration program in finding higher grades and the overall performance of the asset were also discussed in relation to the company's objectives.
The company's market outlook remains positive, with strong returns in recent years and consistent shareholder returns averaging 5% annually. The implementation of a share buyback program has also been beneficial, returning nearly $400 million to shareholders. The company foresees several positive catalysts on the horizon, indicating a favorable outlook.
In terms of financial performance, SSR Mining's first-quarter production and costs were in line with expectations. The company's production profile and free cash flow outlook are expected to be weighted towards the second half of the year. Overall, the company remains on track to meet its consolidated 2023 goals.
SSR Mining's key drivers of business include a strong emphasis on ESG practices, production and growth initiatives, and project delivery and mergers and acquisitions. The company prioritizes responsible and sustainable operations, focusing on employee and partner safety, water management, and reducing emissions. They also aim for stable production and growth through exploration activities and updating technical reports. Additionally, SSR Mining actively seeks value-accretive opportunities through strategic transactions aligned with their low capital-intensity growth strategy.
The company's outlook for the quarter and year ahead is positive, with strong returns and significant returns to shareholders. They anticipate positive catalysts and expect production and free cash flow to be heavily weighted towards the second half of the year. The company remains on track to achieve its 2023 guidance targets, despite some cost pressures.
SSR Mining has made progress on several strategic initiatives, including a focus on ESG practices. They have published an annual ESG and sustainability report, prioritized employee and partner health and safety, implemented water management plans, and worked towards achieving net-zero emissions. The company also aims to maintain a stable production platform of at least 700,000 ounces.
In terms of capital spending plans, SSR Mining has allocated over $80 million to exploration programs. They have implemented peer-leading capital returns with a minimum full-year capital return yield of over 3%, conducted share buybacks, and provided an annualized base dividend. The company has the capacity to repurchase approximately 2.4 million shares before the expiration of its current buyback program in June. These capital returns are expected to provide a significant boost for the company.
The participants of the call included key executives such as Rod Antal, Alison White, and Alex Hunchak, who provided insights into the company's production, financial updates, and strategic initiatives. Analysts Michael Siperco and Cosmos Chiu also participated, asking questions and seeking clarification on specific topics.
In conclusion, SSR Mining's first quarter 2023 earnings call highlighted the company's strong performance, focus on ESG initiatives, and commitment to capital returns and share buybacks. The meeting provided valuable insights into the challenges faced by the Seabee asset, the company's market outlook, and its strategic initiatives for growth and sustainability.