SSR Mining Acquires Hod Maden: Boosting Production and Growth
2023-08-04
SSR Mining held its earning call meeting to discuss the company's progress, future plans, and the acquisition and development of a new project. The meeting focused on financing options, feasibility, updates on ongoing work, and infrastructure development.
The highlight of the meeting was the acquisition of the Hod Maden project by SSR Mining. This acquisition is significant for the company as it adds one of the highest return development projects in the world to their near-term growth profile. Hod Maden is a world-class project with excellent gold equivalent grades and a low average life of mine co-product all-in sustaining cost.
The acquisition of the Hod Maden project strengthens SSR Mining's production platform and contributes to their goal of maintaining a stable production of at least 700,000 ounces over the remainder of the decade. It also demonstrates their commitment to delivering low capital intensity and high return organic growth, which is important for their position as a strong and consistent operator with a focus on generating free cash flow.
The mention of the Hod Maden project indicates that SSR Mining is actively seeking opportunities for future growth and expansion. This aligns with their strategy of exploring new projects and adding value to their portfolio. Overall, the acquisition of the Hod Maden project is a significant development for SSR Mining and highlights their commitment to growth and profitability.
The market outlook for SSR Mining appears positive. The company's operational results for the first half of 2023 have been in line with expectations, with solid production from their mines. The second half of the year is expected to contribute the majority of ounce production and generate positive free cash flow. SSR Mining anticipates strong production in the third and fourth quarters, with reduced costs. The company has also repurchased over $45 million of shares, indicating confidence in their free cash flow outlook. Additionally, SSR Mining has made progress in advancing organic production growth and announced a strategic acquisition in Turkey. Overall, the market outlook suggests a positive trajectory for the company.
During the meeting, the company discussed the key drivers of their business, including timing differences in shipment, all-in sustaining costs, unsold inventory, and earnings per share. They also outlined their plans for the Hod Maden project, which include improving project fidelity through infill drilling and validating flow sheets. The company is running parallel work to reach a conclusion for the project, with a focus on early stage infrastructure works and tunneling at the site. From a financial perspective, they are working on project financing and expect to progress towards a project financing with their joint venture partners.
The company's outlook for the quarter and year is positive, with expectations of meeting production guidance and improvements in production anticipated in the third and fourth quarters. The company remains focused on delivering against the increase in production and appears optimistic about its performance.
Participants in the meeting included Rod Antal, Alison White, Bill MacNevin, Cosmos Chiu, and Alex Hunchak. Rod Antal provided updates on the company's progress and plans for the future, emphasizing the focus on improving project fidelity and exploring financing options. The company is diligently working towards project financing and expects to provide updates when necessary.
The meeting also discussed the company's financial position and performance, including timing differences in sales, all-in sustaining costs, earnings per share, net income, deferred tax benefits, free cash flow, inflation, and corporate tax rate changes. The company highlighted its balance sheet, cash position, and liquidity, along with its commitment to maintaining a robust balance sheet. The company's capital allocation strategy, which includes reinvestment in growth projects and exploration programs, was also mentioned.
Overall, the earning call meeting provided valuable insights into SSR Mining's progress, future plans, and the acquisition of the Hod Maden project. The company's focus on growth, profitability, and maintaining a strong balance sheet positions them well for continued success in the mining industry.