ssr mining investor day

150 Pages·2017·12.65 MB·English

by  Stacey Pavlova

SSR MINING INVESTOR DAY
EVOLUTION TO A ‘TIER 1’ INTERMEDIATE PRODUCER
September 12, 2017
Cautionary Notes
CautionaryNoteRegardingForward-LookingStatements
Thispresentationcontainsforward-lookinginformationwithinthemeaningofCanadiansecuritieslawsandforward-lookingstatementswithinthemeaningoftheU.S.PrivateSecuritiesLitigationReformActof1995(collectively,“forward-lookingstatements”).All
statements,otherthanstatementsofhistoricalfact,areforward-lookingstatements.Generally,forward-lookingstatementscanbeidentifiedbytheuseofwordsorphrasessuchas“expects,”“anticipates,”“plans,”“projects,”“estimates,”“assumes,”“intends,”
“strategy,”“goals,”“objectives,”“potential,”“believes,”orvariationsthereof,orstatingthatcertainactions,eventsorresults“may,”“could,”“would,”“might”or“will”betaken,occurorbeachieved,orthenegativeofanyofthesetermsorsimilarexpressions.These
forward‐lookingstatementsorinformationrelateto,amongotherthings:futureproductionofpreciousmetals;futurecostsofinventory,andcashcostsandall-insustainingcosts(“AISC”)perpayableounceofpreciousmetalssold;expectedoperating,exploration
anddevelopmentexpenditures;thepricesofpreciousmetals;theeffectsoflaws,regulationsandgovernmentpoliciesaffectingouroperationsorpotentialfutureoperations;futuresuccessfuldevelopmentofourprojects;thesufficiencyofourcurrentworkingcapital,
anticipatedoperatingcashfloworourabilitytoraisenecessaryfunds;estimatedproductionratesforpreciousmetals;timingofdevelopmentandproductionandthecashcostsandtotalcostsofproductionattheMarigoldmine,theSeabeeGoldOperation,Puna
Operationsandourotherprojects;theestimatedcostofsustainingcapital;ourabilitytodiscovernewmineralization,toupgradeMineralResourcesandconvertMineralResourcestoMineralReserves,toextendforecastedminelifeandtoincreaseoperational
flexibilityfortheMarigoldmine,theSeabeeGoldOperationandPunaOperations;opportunitiestoincreasetheeconomicsoftheMarigoldmine,theSeabeeGoldOperationandPunaOperations;ourexpecteddrillprogramsateachoftheMarigoldmine,theSeabee
GoldOperation,PunaOperationsandourotherprojects;expectedimpactsoffluctuationsincurrencyanddieselandpropaneprices;resultsofourhedgepositions;expansionoftheSeabeeGoldOperationbasedontheresultsofthePreliminaryEconomic
Assessment(“PEA”);thePEArepresentingproductiongrowth,improvedmarginsandexpansionofMineralResources;timing,amountanddurationoffutureproductionofgoldunderthePEA;theestimatedcapitalandoperatingcostsunderthePEA;theestimates
ofnetcashflow,netpresentvalueandeconomicreturnsfromtheSeabeeGoldOperationunderthePEA;expectationsregardingtheabilitytoobtainthenecessaryenvironmentalapprovalsforthePEA;timingforandpotentialofMarigoldmineexpansionstudy;
timingandresultsofMarigoldmineequipmentreplacementstudy;timingandoutcomeofpermittingprocessfortheMarigoldmineEISdevelopment;timingofPirquitasundergroundandChocaya/OplocastudiesandthepotentialforaPirquitasunderground
operationtoprovideanadditional,highgradeorestreamtothePirquitasplant;anticipatedproductionattheChinchillasprojectandprocessingfacilities,includingconstructionbeginninginthefourthquarterof2017andoredeliverytothePirquitasmillinthesecond
halfof2018,andeventsthatmayaffectthejointventure’soperations;estimatedinitialcapitalexpendituresattheChinchillasproject;expectedoresupplygeneratedfromtheChinchillasproject;expectedcompositionofminingfleetattheChinchillasproject;
outcomeofpermittingprocessfortheChinchillasproject;ongoingorfuturedevelopmentplansandcapitalreplacement,improvementorremediationprograms;theestimatesofexpectedoranticipatedeconomicreturnsfromourminingprojects,includingfuture
salesofmetals,concentrateorotherproducts;andourplansandexpectationsforourpropertiesandoperations.
Theseforward-lookingstatementsaresubjecttoavarietyofknownandunknownrisks,uncertaintiesandotherfactorsthatcouldcauseactualeventsorresultstodifferfromthoseexpressedorimplied,including,withoutlimitation,thefollowing:uncertaintyof
production,developmentplansandcostestimatesfortheMarigoldmine,theSeabeeGoldOperation,PunaOperationsandourotherprojects;ourabilitytoreplaceMineralReserves;ourabilitytoobtainnecessarypermitsfortheChinchillasproject;commodityprice
fluctuations;politicaloreconomicinstabilityandunexpectedregulatorychanges;currencyandinterestratefluctuations;thepossibilityoffuturelosses;generaleconomicconditions;fullyrealizingthevalueofourshareholdingsinPretiumResourcesInc.andour
othermarketablesecurities,duetochangesinprice,liquidityordisposalcostofsuchmarketablesecurities;counterpartyandmarketrisksrelatedtothesaleofourconcentrateandmetals;uncertaintyintheaccuracyofMineralReservesandMineralResources
estimatesandinourabilitytoextractmineralizationprofitably;differencesinU.S.andCanadianpracticesforreportingMineralReservesandMineralResources;lackofsuitableinfrastructureordamagetoexistinginfrastructure;futuredevelopmentrisks,including
start-updelaysandcostoverruns;ourabilitytoobtainadequatefinancingforfurtherexplorationanddevelopmentprogramsandopportunities;uncertaintyinacquiringadditionalcommerciallymineablemineralrights;delaysinobtainingorfailuretoobtain
governmentalpermits,ornon-compliancewithourpermits;ourabilitytoattractandretainqualifiedpersonnelandmanagement;potentiallabourunrest,includinglabouractionsbyourunionizedemployeesatPunaOperations;theimpactofgovernmental
regulations,includinghealth,safetyandenvironmentalregulations,includingincreasedcostsandrestrictionsonoperationsduetocompliancewithsuchregulations;reclamationandclosurerequirementsforourmineralproperties;failuretoeffectivelymanageour
tailingsfacilities;socialandeconomicchangesfollowingclosureofaminemayleadtoadverseimpactsandunrest;unpredictablerisksandhazardsrelatedtothedevelopmentandoperationofamineormineralpropertythatarebeyondourcontrol;indigenous
peoples’titleclaimsandrightstoconsultationandaccommodationmayaffectourexistingoperationsaswellasdevelopmentprojectsandfutureacquisitions;assessmentsbytaxationauthoritiesinmultiplejurisdictions;recoverabilityofVATandsignificantdelaysin
thecollectionprocessinArgentina;claimsandlegalproceedings,includingadverserulingsinlitigationagainstusand/orourdirectorsorofficers;compliancewithanti-corruptionlawsandinternalcontrols,andincreasedregulatorycompliancecosts;complyingwith
emergingclimatechangeregulationsandtheimpactofclimatechange,includingextremeweatherconditions;fullyrealizingourinterestindeferredconsiderationreceivedinconnectionwithrecentdivestitures;uncertaintiesrelatedtotitletoourmineralproperties
andtheabilitytoobtainsurfacerights;thesufficiencyofourinsurancecoverage;civildisobedienceinthecountrieswhereourmineralpropertiesarelocated;operationalsafetyandsecurityrisks;actionsrequiredtobetakenbyusunderhumanrightslaw;
competitionintheminingindustryformineralproperties;ourabilitytocompleteandsuccessfullyintegrateanannouncedacquisition;aneventofdefaultunderourconvertiblenotesmaysignificantlyreduceourliquidityandadverselyaffectourbusiness;failureto
meetcovenantsunderourseniorsecuredrevolvingcreditfacility;conflictsofinterestthatcouldarisefromcertainofourdirectors’andofficers’involvementwithothernaturalresourcecompanies;informationsystemssecuritythreats;andthoseothervariousrisks
anduncertaintiesidentifiedundertheheading“RiskFactors”inourmostrecentAnnualInformationFormfiledwiththeCanadiansecuritiesregulatoryauthoritiesandincludedinourmostrecentAnnualReportonForm40-FfiledwiththeU.S.Securitiesand
ExchangeCommission(“SEC”).
Theforegoinglistisnotexhaustiveofallfactorsandassumptionswhichmayhavebeenused.Wecannotassureyouthatactualevents,performanceorresultswillbeconsistentwiththeseforward-lookingstatements,andmanagement’sassumptionsmayproveto
beincorrect.Ourforward-lookingstatementsreflectcurrentexpectationsregardingfutureeventsandoperatingperformanceandspeakonlyasofthedatehereofandwedonotassumeanyobligationtoupdateforward-lookingstatementsifcircumstancesor
management’sbeliefs,expectationsoropinionsshouldchangeotherthanasrequiredbyapplicablelaw.Forthereasonssetforthabove,youshouldnotplaceunduerelianceonforward-lookingstatements. Allreferencesto“$”inthispresentationaretoU.S.dollars
unlessotherwisestated.
QualifiedPersons
Exceptasotherwisesetoutherein,thescientificandtechnicalinformationcontainedinthispresentationrelatingtoeachofthe:MarigoldminehasbeenreviewedandapprovedbyThomasRiceandJamesN.Carver,eachofwhomisaSMERegisteredMember,a
qualifiedpersonunderNational Instrument43-101–StandardsofDisclosureforMineralProjects(“NI43-101”)andouremployee;SeabeeGoldOperationPEAhasbeenreviewedandapprovedbyMichaelSelby,P.Eng.,PrincipalConsultant(Mining),SRK
Consulting(Canada)Inc.,andDominicChartier,P.Geo.,SeniorConsultant(Geology),SRKConsulting(Canada)Inc.,eachofwhomisaqualifiedpersonunderNI43-101;andSeabeeGoldOperationandPunaOperationshasbeenreviewedandapprovedbyF.
CarlEdmunds,P.Geo.,aqualifiedpersonunderNI43-101andouremployee.Thequalifiedpersonshaveverifiedtheinformationdisclosedherein,includingthesampling,preparation,securityandanalyticalproceduresunderlyingsuchinformation,andarenot
awareofanysignificantrisksanduncertaintiesthatcouldbeexpectedtoaffectthereliabilityorconfidenceintheinformationdiscussedherein.
CautionaryNotetoU.S.Investors
ThispresentationincludesMineralReservesandMineralResourcesclassificationtermsthatcomplywithreportingstandardsinCanadaandtheMineralReservesandtheMineralResourcesestimatesaremadeinaccordancewithNI43-101.NI43-101isarule
developedbytheCanadianSecuritiesAdministratorsthatestablishesstandardsforallpublicdisclosureanissuermakesofscientificandtechnicalinformationconcerningmineralprojects.ThesestandardsdiffersignificantlyfromtherequirementsoftheSECsetout
inSECIndustryGuide7.Consequently,MineralReservesandMineralResourcesinformationincludedinthispresentationisnotcomparabletosimilarinformationthatwouldgenerallybedisclosedbydomesticU.S.reportingcompaniessubjecttothereportingand
disclosurerequirementsoftheSEC.UnderSECstandards,mineralizationmaynotbeclassifiedasa“reserve”unlessthedeterminationhasbeenmadethatthemineralizationcouldbeeconomicallyproducedorextractedatthetimethereservedeterminationis
made.Inaddition,theSEC’sdisclosurestandardsnormallydonotpermittheinclusionofinformationconcerning“MeasuredMineralResources,”“IndicatedMineralResources”or“InferredMineralResources”orotherdescriptionsoftheamountofmineralizationin
mineraldepositsthatdonotconstitute“reserves”byU.S.standardsindocumentsfiledwiththeSEC.
CautionaryNoteRegardingNon-GAAPMeasures
ThispresentationincludescertaintermsorperformancemeasurescommonlyusedintheminingindustrythatarenotdefinedunderInternationalFinancialReportingStandards(“IFRS”),includingcashcostsandAISCperpayableounceofpreciousmetalssoldand
realizedmetalprices.Non-GAAPfinancialmeasuresdonothaveanystandardizedmeaningprescribedunderIFRSand,therefore,maynotbecomparabletosimilarmeasuresreportedbyothercompanies.Webelievethat,inadditiontoconventionalmeasures
preparedinaccordancewithIFRS,certaininvestorsusethisinformationtoevaluateourperformance.Thedatapresentedisintendedtoprovideadditionalinformationandshouldnotbeconsideredinisolationorasasubstituteformeasuresofperformance
preparedinaccordancewithIFRS.Thesenon-GAAPmeasuresshouldbereadinconjunctionwithourconsolidatedfinancialstatements.Readersshouldrefertoourmanagement’sdiscussionandanalysis,availableunderourcorporateprofileatwww.sedar.comor
onourwebsiteatwww.ssrmining.com,undertheheading“Non-GAAPandAdditionalGAAPFinancialMeasures”foramoredetaileddiscussionofhowwecalculatesuchmeasuresandforareconciliationofsuchmeasurestoIFRSterms.
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Today’s Agenda
 Welcome and Introduction
 Strategy and Outlook
 Financial Review
 Operational Overview
 Operational Excellence
 Exploration and Development
 Closing Remarks and Q+A
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Today’s Speakers
A. E. Michael Anglin Paul Benson Gregory J. Martin Alan N. Pangbourne
Chairman President and CEO SVP and CFO COO
Cameron Chapman Jon Gilligan Duane Peck Carl Edmunds James Carver
General Manager General Manager General Manager Chief Geologist Chief Geologist
Seabee Puna Operations Marigold Mine Marigold Mine
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Introduction
Mike Anglin, Chairman
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Transformation to an Intermediate Precious Metals Producer
 Attractive management team with an operational discipline
Management  Experienced across regions, cultures and operations
 Operational Excellence is fundamental to our approach
 Consistent operational performance was a focus early on
Assets  Diversified portfolio of operations with exploration growth
 Rationalized portfolio of exploration stage assets
 Focused on growth and profitability
Capital  Created a disciplined capital allocation model
 Lean, de-centralized corporate platform
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Transformation to an Intermediate Precious Metals Producer
Strong operating Three operating mines Building cash while
platform and “OE” focus located in the Americas investing in the future
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SSR Mining Board of Directors
Depth of experience and a top governance rating
Michael Anglin Brian Booth Gustavo Herrero BeverleePark Richard Paterson Steven Reid Paul Benson
Chairman, Safety & Corporate Audit Audit Committee Compensation Director
Corporate Sustainability Governance & Committee, Chair, Corporate Committee President and
Governance & Committee Nominating Compensation Governance & Chair, Safety & CEO
Nominating Chair, Committee Chair, Committee, Nominating Sustainability
Committee Compensation Audit Committee Safety & Committee Committee
Committee Sustainability
Committee
BSc Mining BSc Geology BBA, MBA BCom, FCPA/FCA, BCom BSc Mineral BSc Geology and
Engineering, MSc MBA Engineering, MBA Exploration
Geophysics, BE
Mining, MSc
BHP Billiton Inco, Lake Shore IVA S.A., Zucamor TimberWest GenstarCapital Goldcorp, Placer BHP Billiton, Rio
Gold, Pembrook S.A./PapelMisionero Dome, Kingsgate, Tinto, Troy
S.A., TyrusCapital Newcrest Resources and
RenisonGoldfields
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Strategy and Outlook
Paul Benson, President and CEO
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SSR Mining Executive Team
Paul Benson Nadine J. Block W. John DeCooman, Jr. Gregory J. Martin Alan N. Pangbourne
President and CEO VP, Human Resources VP, Business Development SVP and CFO COO
and Strategy
BSc Geology and BA Psychology, BSc Mineral MBA, CPA, CGA, BApScMetallurgy,
Exploration MBA Economics, MSc P.Eng, BAScCivil Graduate Diploma in
Geophysics, BE Mineral Economics Engineering Mineral Processing
Mining, MSc
Troy Resources, TimberWest, Echo Bay Mines, Placer Dome, Kinross, BHP Billiton,
BHP Billiton, Rio Finning, Pan Bankers Trust, and NovaGold, Zincore, Signet Engineering,
Tinto and Renison American Silver, and Deutsche Bank and Finning Marvel Loch Gold
Goldfields Quadra FNX Mines, Seltrust/
BP Minerals
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