SSR Mining (TSX: SSRM) (NASDAQ: SSRM) this morning updated the market with its full year 2020 outlook following the completion of its merger with Alacer Gold Corp. The company revealed this morning that it currently anticipates full year production of between 680,000 and 760,000 gold equivalent ounces on a consolidated basis, with all in sustaining costs between $965 to $1,040 per ounce.
The company broke its full year estimates down into a per project basis, identifying production and costing estimates for its four major projects. The projects include Copler, Marigold and Seabee gold operations, along with the Puna silver operation. Production estimates and all in sustaining cost estimates are as follows.
- Copler: Estimated gold production between 310,000 to 360,000 ounces at an average AISC of $710 to $760 per ounce. Growth capital requirements are estimated at $53 million.
- Marigold: Estimated gold production between 225,000 to 240,000 ounces at an average AISC of $1,170 to $1,230 per ounce. Growth capital requirements are estimated at $12 million.
- Seabee: Estimated gold production between 80,000 to 90,000 ounces at an average AISC of $770 to $820 per ounce. Growth capital requirements are estimated at $12 million.
- Puna: Estimated silver production between 4.9 million to $5.3 million ounces, or gold equivalent ounces of between 66,000 to 72,000 ounces at an average AISC of $15 to $17 per silver ounce. Growth capital requirements are estimated at $6 million.
The company currently has a combined cash balance of $703 million, while deb sits at $475 million following the merger transaction. Production is stated to be weighted 55% to 60% to the fourth quarter of the year following production ramp-up after the impacts of COVID-19 on operations at Seabee and Puna. As a result, free cash flow generation is expected to be weighted towards the fourth quarter of the year.
SSR Mining last traded at $29.49 on the TSX.
Information for this briefing was found via Sedar and SSR Mining. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.