SSR MINING INC. [SSRM] Filings

10-Q 1 ssrm-20220331.htm 10-Q ssrm-20220331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended March 31, 2022

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________to__________

Commission File Number: 001-35455

SSR MINING INC.

(Exact name of registrant as specified in its charter)


British Columbia (State or Other Jurisdiction of Incorporation or Organization)						98-0211014 (I.R.S. Employer Identification No.)
Suite 1300 - 6900 E. Layton Ave, Denver, Colorado, 80237

(Address of Principal Executive Offices)

Registrant’s telephone number, including area code (303) 292-1299

Securities registered pursuant to Section 12(b) of the Act.


Title of each class	Trading symbol	Name of each exchange on which registered
Common shares without par value	SSRM	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12-b2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12-b2 of the Exchange Act). ☐ Yes ☒ No

There were 212,630,261 common shares outstanding on April 27, 2022.

TABLE OF CONTENTS


			Page
PART I - FINANCIAL INFORMATION
FIRST QUARTER 2022 HIGHLIGHTS			2
ITEM 1. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA			3
Condensed Consolidated Statements of Operations (unaudited)			4
Condensed Consolidated Statements of Cash Flows (unaudited)			5
Condensed Consolidated Balance Sheets (unaudited)			7
Condensed Consolidated Statement s of Changes in Equity (unaudited)			8
Notes to Condensed Consolidated Financial Statements			10
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS			23
Business Overview			23
Operating Statistics			24
Consolidated Results of Operations			26
Results of Operations			29
Liquidity and Capital Resources			33
Non-GAAP Financial Measures			36
Critical Accounting Policies and Estimates			41
New Accounting Pronouncements			41
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK			42
ITEM 4. CONTROLS AND PROCEDURES			42
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS			43
ITEM 1A. RISK FACTORS			43
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS			43
ITEM 3. DEFAULTS UPON SENIOR SECURITIES			43
ITEM 4. MINE SAFETY DISCLOSURES			43
ITEM 5. OTHER INFORMATION			43
ITEM 6. EXHIBITS, FINANCIAL STATEMENT SCHEDULES			44
SIGNATURES

PART I

FIRST QUARTER 2022 HIGHLIGHTS (dollars, except per share, per ounce and per pound amounts)

▪Robust quarterly operating performance: Delivered first quarter production of 173,675 gold equivalent ounces at all-in sustaining costs (“AISC” *) of $1,093 per gold equivalent ounce.

▪Continued track record of generating positive free cash flow: Cash flows from operating activities of $62.2 million and free cash flow of $27.7 million in the first quarter. Attributable net income in the first quarter was $67.6 million, or $0.32 per basic share and $0.31 per diluted share. Adjusted attributable net income was $65.9 million, or $0.31 per basic share and $0.30 per diluted share.

▪Dividend increased as part of capital returns commitment: During the first quarter, the Board declared a quarterly cash dividend of $0.07 per share, a 40% increase over the prior period, which was paid on April 4, 2022. The Normal Course Issuer Bid (“NCIB”), first announced on April 19, 2021, remained active during the quarter.

▪Balance sheet continues to support growth initiatives: At the end of the first quarter, the Company had a cash and cash equivalent balance of $999.0 million and $17.8 million in scheduled debt repayments and $30.8 million in dividends to joint venture partners.

▪2021 ESG and Sustainability Report: On April 14, 2022, the Company published its fourth annual ESG and Sustainability Report. The report outlines SSR Mining’s approach to sustainability across a range of areas, including Health & Safety, environment, communities and diversity, as well as summarizes our 2021 ESG performance.

▪Announced the sale of the Pitarrilla project: On January 13, 2022, the Company announced it had entered into a definitive agreement to sell its Pitarrilla silver project in Durango, Mexico to Endeavour Silver Corp. (“EXK”) for total consideration of up to $127.0 million. This consideration includes $35.0 million in cash, $35.0 million in EXK shares, and a 1.25% Net Smelter Return (“NSR”) royalty on the Pitarrilla property. The transaction, which is subject to TSX and NYSE regulatory approvals, the approval of the Mexican Federal Economic Competition Commission and customary closing conditions, is expected to close in the second quarter of 2022.

•Closed the acquisition of Taiga Gold Corp.: Subsequent to quarter’s end, on April 14, 2022, SSR Mining completed the previously announced plan of arrangement (the “Arrangement”) to acquire all of the issued and outstanding shares of Taiga Gold Corp. (CSE: TGC) (“Taiga Gold”) at a price of CAD $0.265 per share, representing an aggregate consideration of approximately $24.5 million. The transaction consolidated a 100% interest in the Fisher property contiguous to the Seabee mine, eliminated a 2.5% NSR royalty on the Fisher property, and added five new properties covering over 29,100 hectares to complement the Company’s existing exploration platform in the underexplored and geologically prospective Province of Saskatchewan. SSR Mining’s Saskatchewan assets now cover an area of approximately 131,150 hectares.

* AISC is a non-GAAP metric which is customary in the mining industry, but for which there is no standardized definition or comparable financial measure under U.S. GAAP. As a result, we have not identified a comparable financial measure calculated under U.S. GAAP. For a description of AISC, please see the discussion under "Non-GAAP Financial Measures" in Part I, Item 2, Management’s Discussion and Analysis herein.

ITEM 1. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

SSR Mining Inc.

Condensed Consolidated Statements of Operations

(unaudited, in thousands except per share)


	Three Months Ended March 31,
	2022		2021
Revenue	$	355,446	$	366,484
Operating Costs and Expenses:
Production costs		153,520		161,863
Depreciation, depletion, and amortization		58,742		53,779
General and administrative expense		16,239		7,759
Exploration, evaluation, and reclamation costs		9,858		9,408

Transaction, integration, and SEC conversion expense		1,217		4,492
Operating income		115,870		129,183
Other income (expense):
Interest expense		(4,295)		(4,944)
Other income (expense)		(367)		(1,611)
Foreign exchange gain (loss)		(3,287)		(379)
Total other income (expense)		(7,949)		(6,934)
Income before income and mining taxes		107,921		122,249
Income and mining tax benefit (expense)		(31,562)		6,380
Equity income (loss) of affiliates		(253)		(1,178)
Net income		76,106		127,451
Net loss (income) attributable to non-controlling interest		(8,543)		(18,590)
Net income attributable to SSR Mining shareholders	$	67,563	$	108,861

Net income per share attributable to SSR Mining shareholders
Basic	$	0.32	$	0.50
Diluted	$	0.31	$	0.48

The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.

SSR Mining Inc.

Condensed Consolidated Statements of Cash Flows

(unaudited, in thousands)


	Three Months Ended March 31,
	2022		2021
Operating activities
Net income	$	76,106	$	127,451
Adjustments for:
Depreciation, depletion, and amortization		58,742		53,779
Amortization of debt discount		227		220
Reclamation costs		1,311		1,205
Deferred income taxes		(16,404)		(23,024)
Stock-based compensation		4,849		(1,699)
Equity pickup on investments in joint ventures		253		1,178
Unrealized gain on derivative instruments		(364)		(2,583)
Change in fair value of marketable securities		923		586
Non-cash fair value adjustment on acquired inventories		4,540		16,069
Loss (gain) on sale of mineral properties, plant and equipment		584		22

Net change in operating assets and liabilities		(68,580)		(45,701)
Net cash provided by operating activities		62,187		127,503

Investing activities
Additions to mineral properties, plant and equipment		(34,492)		(55,711)

Net proceeds from sales of marketable securities		6,607		—
Proceeds from sale of mineral properties, plant and equipment		—		149
Other investing activities		—		(172)
Net cash used in investing activities		(27,885)		(55,734)

Financing activities
Repayment of debt, principal		(17,781)		(17,500)


Proceeds from exercise of stock options		2,398		2,750

Principal payments on finance leases		(7,293)		(2,158)
Non-controlling interest dividend		(30,773)		(38,084)
Dividends paid		—		(10,992)
Other financing activities		—		(423)
Net cash used in financing activities		(53,449)		(66,407)
Effect of foreign exchange rate changes on cash and cash equivalents		583		22
Net increase (decrease) in cash, cash equivalents, and restricted cash		(18,564)		5,384
Cash, cash equivalents, and restricted cash, beginning of period		1,052,865		895,921
Cash, cash equivalents, and restricted cash, end of period	$	1,034,301	$	901,305

SSR Mining Inc.

Condensed Consolidated Statements of Cash Flows

(unaudited, in thousands)



	Three Months Ended March 31,
	2022		2021
Reconciliation of cash, cash equivalents, and restricted cash:
Cash and cash equivalents	$	998,986	$	866,015
Restricted cash		35,315		35,290
Total cash, cash equivalents, and restricted cash	$	1,034,301	$	901,305

The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.

SSR Mining Inc.

Condensed Consolidated Balance Sheets

(unaudited, in thousands)


	March 31, 2022		December 31, 2021
ASSETS
Cash and cash equivalents	$	998,986	$	1,017,562
Marketable securities		34,235		40,431
Trade and other receivables		132,679		121,356
Inventories		419,749		389,416
Prepaids and other current assets		28,220		31,549
Assets held for sale		63,670		—
Total current assets		1,677,539		1,600,314

Mineral properties, plant and equipment, net		3,163,731		3,249,764
Inventories		221,358		221,617
Restricted cash		35,315		35,303
Equity method investments		4,665		4,918
Goodwill		49,786		49,786
Deferred income tax assets		11,809		8,501
Other non-current assets		48,460		41,235
Total assets	$	5,212,663	$	5,211,438

LIABILITIES
Accounts payable	$	55,635	$	34,844
Accrued liabilities and other		141,030		165,108
Finance lease liabilities		3,723		12,439
Current portion of debt		71,210		71,491
Liabilities held for sale		6,903		—
Total current liabilities		278,501		283,882

Debt		278,261		295,493
Finance lease liabilities		105,011		105,965
Reclamation liabilities		124,074		122,660
Deferred income tax liabilities		319,923		338,788
Other non-current liabilities		20,802		12,133
Total liabilities		1,126,572		1,158,921

EQUITY
Common shares – unlimited authorized common shares with no par value; 212,557 and 211,879 shares issued and outstanding as of March 31, 2022 and December 31, 2021, respectively		3,143,445		3,140,189
Retained earnings (deficit)		450,215		397,667
SSR Mining’s shareholders’ equity		3,593,660		3,537,856
Non-controlling interest		492,431		514,661
Total equity		4,086,091		4,052,517
Total liabilities and equity	$	5,212,663	$	5,211,438

The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.

SSR Mining Inc.

Condensed Consolidated Statement of Changes in Equity

(unaudited, in thousands)


	Common shares
	Number of shares	Amount		Retained earnings (accumulated deficit)		Total equity attributable to equity holders of SSR Mining		Non-controlling interest		Total equity
Balance as of December 31, 2021	211,879	$	3,140,189	$	397,667	$	3,537,856	$	514,661	$	4,052,517
Exercise of stock options	166		2,433		—		2,433		—		2,433
Settlement of RSUs	512		—		—		—		—		—
Equity-settled stock-based compensation	—		823		—		823		—		823
Dividends declared to equity holders of SSR Mining	—		—		(15,015)		(15,015)		—		(15,015)
Dividends paid to non-controlling interest	—		—		—		—		(30,773)		(30,773)
Net income (loss)	—		—		67,563		67,563		8,543		76,106
Balance as of March 31, 2022	212,557	$	3,143,445	$	450,215	$	3,593,660	$	492,431	$	4,086,091

SSR Mining Inc.

Condensed Consolidated Statement of Changes in Equity

(unaudited, in thousands)


	Common shares
	Number of shares	Amount		Retained earnings (accumulated deficit)		Total equity attributable to equity holders of SSR Mining		Non-controlling interest		Total equity		Contingently redeemable shares
Balance as of December 31, 2020	219,607	$	3,242,821	$	92,077	$	3,334,898	$	512,279	$	3,847,177	$	3,311
Exercise of stock options	364		2,750		—		2,750		—		2,750		—
Settlement of RSUs and PSUs	92		89		—		89		—		89		—
Equity-settled stock-based compensation	—		1,037		—		1,037		—		1,037		—
Transfer of cash-settled RSUs	—		8,802		—		8,802		—		8,802		—
Reclassification of contingently redeemable shares	—		3,311		—		3,311		—		3,311		(3,311)
Dividends paid to equity holders of SSR Mining	—		—		(10,992)		(10,992)		—		(10,992)		—
Dividends paid to non-controlling interest	—		—		—		—		(38,084)		(38,084)		—
Other	—		—		(18)		(18)		—		(18)		—
Net income (loss)	—		—		108,861		108,861		18,590		127,451		—
Balance as of March 31, 2021	220,063	$	3,258,810	$	189,928	$	3,448,738	$	492,785	$	3,941,523	$	—

The accompanying notes are an integral part of the Condensed Consolidated Financial Statements.

SSR Mining Inc.

Notes to Condensed Consolidated Financial Statements

(unaudited)

1.THE COMPANY

SSR Mining Inc. and its subsidiaries (collectively, "SSR Mining," or the "Company”) is incorporated under the laws of the Province of British Columbia, Canada. The Company's common shares are listed on the Toronto Stock Exchange (TSX) in Canada and the Nasdaq Global Select Market (NASDAQ) in the U.S. under the symbol "SSRM" and the Australian Securities Exchange (ASX) in Australia under the symbol "SSR."

The Company is principally engaged in the operation, acquisition, exploration and development of precious metal resource properties located in Turkey and the Americas. The Company produces gold doré as well as copper, silver, lead and zinc concentrates. SSR Mining's diversified asset portfolio is comprised of high-margin, long-life assets located in some of the world's most prolific metal districts. The Company has four producing mines in Turkey, the United States, Canada, and Argentina. The Company's focus is on safe, profitable gold and silver production from its Çöpler Gold Mine ("Çöpler") in Erzincan, Turkey, Marigold mine ("Marigold") in Nevada, USA, Seabee Gold Operation ("Seabee") in Saskatchewan, Canada and Puna Operations ("Puna") in Jujuy, Argentina, and to advance, as market and project conditions permit, its principal development projects towards development and commercial production.

2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Risks and Uncertainties

As a mining company, the revenue, profitability and future rate of growth of the Company are substantially dependent on the prevailing prices for gold, silver, zinc and lead. The prices of these metals are volatile and affected by many factors beyond the Company’s control, and there can be no assurance that commodity prices will not be subject to wide fluctuations in the future. A substantial or extended decline in commodity prices could have a material adverse effect on the Company’s financial position, results of operations, cash flows, access to capital and the quantities of reserves that the Company can economically produce. The carrying value of the Company’s Mineral properties, plant and equipment; Inventories; Deferred income tax assets; and Goodwill are particularly sensitive to the outlook for commodity prices. A decline in the Company’s price outlook could result in material impairment charges related to these assets.

COVID-19

During the period ended March 31, 2022, the COVID-19 pandemic continued to impact global economic and financial markets, disrupting global supply chains and workforce participation. Many industries and businesses, including SSR Mining, have learned how to navigate and operate under these conditions but may still be subject to operating challenges, inflationary pressures and outbreaks. The Company will continue to be vigilant and take appropriate measures to protect the health and safety of its employees and surrounding communities.

Basis of presentation

The Condensed Consolidated Financial Statements have been prepared in accordance with the instructions to Form 10-Q and do not include all information and disclosures required by generally accepted accounting principles in the United States. Therefore, this information should be read in conjunction with SSR Mining Inc.’s Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021 filed on February 23, 2022. The information furnished herein reflects all adjustments that are, in the opinion of management, necessary for a fair statement of the results for the interim periods reported. All such adjustments are, in the opinion of management, of a normal recurring nature. The results for the three month period ended March 31, 2022, are not necessarily indicative of the results that may be expected for the year ending December 31, 2022.

Reclassifications

Certain amounts and disclosures in prior years have been reclassified to conform to the current year presentation.

SSR Mining Inc.

Notes to Condensed Consolidated Financial Statements

(unaudited)

3.OPERATING SEGMENTS

The Company currently has four producing mines and a portfolio of precious metal dominant projects. Each individual operating mine site and the Company's exploration, evaluation and development properties are considered reportable segments. Operating results of operating segments are reviewed by the Company's chief operating decision maker ("CODM") to make decisions about resources to be allocated to the segments and to assess their performance.

The following tables provide a summary of financial information related to the Company's segments (in thousands):


	Three Months Ended March 31, 2022
	Çöpler			Marigold		Seabee		Puna		Exploration, evaluation and development properties (2)		Corporate and other (1)		Total
Revenue	$	137,407	$	68,893	$	90,857	$	58,289	$	—	$	—	$	355,446
Production costs	$	62,584	$	38,735	$	16,410	$	35,791	$	—	$	—	$	153,520
Depletion, depreciation, and amortization	$	30,513	$	6,888	$	15,379	$	5,962	$	—	$	—	$	58,742
Exploration, evaluation, and reclamation costs	$	1,049	$	743	$	2,374	$	481	$	4,251	$	960	$	9,858
Transaction, integration, and SEC conversion expense	$	—	$	—	$	—	$	—	$	—	$	1,217	$	1,217
Operating income	$	42,537	$	22,526	$	56,691	$	15,906	$	(4,251)	$	(17,539)	$	115,870
Capital expenditures	$	6,870	$	18,235	$	12,914	$	2,213	$	—	$	—	$	40,232
Total assets as of March 31, 2022	$	2,161,612	$	569,895	$	524,023	$	326,389	$	929,523	$	701,221	$	5,212,663

(1) Corporate and other consists of business activities that are not included within the reportable segments and provided for reconciliation purposes.

(2) The Company entered into an agreement on January 12, 2022 to sell its Pitarrilla project. The assets related to the Pitarrilla project are classified as Current assets held for sale on the Condensed Consolidated Balance Sheets as of March 31, 2022. Refer to Note 16 for further information.

SSR Mining Inc.

Notes to Condensed Consolidated Financial Statements

(unaudited)


	Three Months Ended March 31, 2021
	Çöpler			Marigold		Seabee		Puna		Exploration, evaluation and development properties		Corporate and other (1)		Total
Revenue	$	151,522	$	115,973	$	45,707	$	53,282	$	—	$	—	$	366,484
Production costs	$	66,417	$	53,711	$	16,561	$	25,174	$	—	$	—	$	161,863
Depletion, depreciation, and amortization	$	30,578	$	8,934	$	9,597	$	4,670	$	—	$	—	$	53,779
Exploration, evaluation, and reclamation costs	$	3,068	$	758	$	2,873	$	429	$	2,038	$	242	$	9,408
Transaction, integration, and SEC conversion expense	$	—	$	—	$	—	$	—	$	—	$	4,492	$	4,492
Operating income	$	47,758	$	52,673	$	16,767	$	21,928	$	(2,038)	$	(7,905)	$	129,183
Capital expenditures	$	9,035	$	23,413	$	13,439	$	3,276	$	—	$	—	$	49,163
Total assets as of March 31, 2021	$	2,308,886	$	645,584	$	469,249	$	239,520	$	1,018,525	$	521,245	$	5,203,009

(1) Corporate and other consists of business activities that are not included within the reportable segments and provided for reconciliation purposes.

Geographic Area

The following are non-current assets, excluding Goodwill, Restricted cash and Deferred income taxes, by location as of March 31, 2022 and December 31, 2021 (in thousands):


	March 31, 2022		December 31, 2021
Turkey	$	2,737,010	$	2,744,707
Canada		272,311		292,264
United States		309,389		307,857
Argentina		118,448		123,834
Mexico		541		48,345
Peru		515		527
Total	$	3,438,214	$	3,517,534

SSR Mining Inc.

Notes to Condensed Consolidated Financial Statements

(unaudited)

The following is revenue information by geographic area based on the location for the three months ended March 31 (in thousands):


	Three Months Ended March 31,
	2022		2021
Turkey	$	137,407	$	151,522
Canada		90,857		45,707
United States		68,893		115,973
Argentina		58,289		53,282
Total	$	355,446	$	366,484

4.REVENUE

The following table represents revenues by product (in thousands):


	Three Months Ended March 31,
	2022		2021
Gold doré sales
Çöpler	$	135,943	$	151,522
Marigold		68,852		115,937
Seabee		90,822		45,676
Concentrate sales
Puna		54,132		53,928
Other (1)
Çöpler		1,464		—
Marigold		41		36
Seabee		35		31
Puna		4,157		(646)
Total	$	355,446	$	366,484

(1) Other revenue includes: changes in the fair value of concentrate trade receivables due to changes in silver and base metal prices; and silver and copper by-product revenue arising from the production and sale of gold doré.

Revenue by metal

Revenue by metal type for the three months ended March 31 are as follows (in thousands):


	Three Months Ended March 31,
	2022		2021
Gold	$	295,617	$	313,135
Silver		33,965		48,013
Lead		13,857		5,170
Zinc		6,310		745
Other		5,697		(579)
Total	$	355,446	$	366,484

Provisional metal sales

For the three months ended March 31, 2022 and 2021, the change in the fair value of the Company's embedded derivatives relating to provisional concentrate metal sales was an increase (decrease) of $4.2 million and $(0.6) million, respectively, which has been recorded in Revenue.

SSR Mining Inc.

Notes to Condensed Consolidated Financial Statements

(unaudited)

At March 31, 2022, the Company had silver sales of 3.54 million ounces at an average price of $24.17 per ounce, zinc sales of 4.06 million pounds at an average price of $1.78 per pound, and lead sales of 19.53 million pounds at an average price of $1.06 per pound, subject to final pricing over the next several months.

5.INCOME AND MINING TAXES

SSR’s consolidated effective income tax rate was 29.2% for the first three months of 2022 compared to (5.2)% for the first three months of 2021. The primary driver of the change in the effective rate is foreign currency fluctuations as well as changes in book income in foreign jurisdictions with varying tax rates. The Company’s statutory tax rate for the period is 27%, and the effective rate differs from the statutory rate primarily due to foreign exchange and jurisdictional mix of earnings with different tax rates.

6.OTHER INCOME (EXPENSE)

The following table includes the components of Other income (expense):


	Three Months Ended March 31,
	2022		2021
Interest income (expense)	$	1,565	$	470
Gain (loss) on marketable securities		(923)		(586)

Gain (loss) on sale of mineral properties, plant, and equipment		(584)		(22)
Other		(425)		(1,473)
Total	$	(367)	$	(1,611)

7.INCOME PER SHARE

The Company calculates basic net income per share using, as the denominator, the weighted average number of common shares outstanding during the period. Diluted net income per share uses, as its denominator, the weighted average number of common shares outstanding during the period plus the effect of potential dilutive shares during the period.

Potential dilutive common shares include stock options, Restricted Share Units (“RSUs”), RSU Replacement Units, and convertible notes for periods in which the Company has reported net income.

SSR Mining Inc.

Notes to Condensed Consolidated Financial Statements

(unaudited)

The calculations of basic and diluted net income per share attributable to stockholders of the Company for the three months ended March 31, 2022 and 2021 are based on the following (in thousands):


	Three Months Ended March 31,
	2022		2021
Net income	$	76,106	$	127,451
Net (income) loss attributable to non-controlling interest		(8,543)		(18,590)
Net income attributable to shareholders of SSR Mining		67,563		108,861
Interest saving on convertible notes, net of tax		1,215		1,575
Net income used in the calculation of diluted net income per share	$	68,778	$	110,436

Weighted average number of common shares outstanding		212,423		219,792
Adjustments for dilutive instruments:
Stock options		9		152
Restricted share units		88		73
Convertible notes		12,216		12,152
Diluted weighted average number of common shares outstanding		224,736		232,169

Net income per share attributable to common shareholders
Basic	$	0.32	$	0.50
Diluted	$	0.31	$	0.48

SSR Mining Inc.

Notes to Condensed Consolidated Financial Statements

(unaudited)

8.FAIR VALUE MEASUREMENTS AND FINANCIAL INSTRUMENTS

Fair value accounting establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below:

Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2 - Quoted prices in markets that are not active, quoted prices for similar assets or liabilities in active markets, quoted prices or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability and model-based valuation techniques (e.g. the Black-Scholes model) for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities; and

Level 3 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).

As required by accounting guidance, assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following tables set forth the Company’s assets and liabilities measured at fair value on a recurring (at least annually) and nonrecurring basis by level within the fair value hierarchy (in thousands).


	Fair value as of March 31, 2022
	Level 1 (1)		Level 2 (2)		Level 3 (3)		Total
Assets:
Cash	$	998,986	$	—	$	—	$	998,986
Restricted cash		35,315		—		—		35,315
Marketable securities		38,646		—		—		38,646
Trade receivables		—		80,673		—		80,673
Derivative asset		—		1,351		—		1,351
Deferred consideration		—		—		23,261		23,261
	$	1,072,947	$	82,024	$	23,261	$	1,178,232

SSR Mining Inc.

Notes to Condensed Consolidated Financial Statements

(unaudited)


	Fair value as of December 31, 2021
	Level 1 (1)		Level 2 (2)		Level 3 (3)		Total
Assets:
Cash	$	1,017,562	$	—	$	—	$	1,017,562
Restricted cash		35,303		—		—		35,303
Marketable securities		46,923		—		—		46,923
Trade receivables		—		72,634		—		72,634
Derivative asset		—		987		—		987
Deferred consideration		—		—		22,610		22,610
	$	1,099,788	$	73,621	$	22,610	$	1,196,019

(1)Marketable securities of publicly quoted companies, consisting of investments, are valued using a market approach based upon unadjusted quoted prices in an active market obtained from securities exchanges.

(2)The Company manages its exposure to fluctuation in diesel prices and foreign currency exchange rates through hedges. The Company’s derivative asset and liabilities are valued using pricing models with inputs derived from observable market data, including quoted prices in active markets. The Company’s provisional metal sales contracts, included in Trade and other receivables in the Condensed Consolidated Balance Sheets, are valued using inputs derived from observable market data, including quoted commodity forward prices. The inputs do not involve significant management judgment. Such instruments are classified within Level 2 of the fair value hierarchy.

(3)Certain items of deferred consideration are included in Level 3, as certain assumptions used in the calculation of the fair value are not based on observable market data. Deferred consideration is included in Other non-current assets in the Condensed Consolidated Balance Sheets.

The following table reconciles the beginning and ending balances for financial instruments that are recognized at fair value using significant unobservable inputs (Level 3) in the condensed consolidated financial statements (in thousands):


	Three Months Ended March 31,
	2022		2021
Balance as of January 1	$	22,610	$	21,460
Revaluations		651		124
Balance as of March 31	$	23,261	$	21,584

Fair values of financial assets and liabilities not already measured at fair value

The fair value of the 2019 Notes and Term Loan as compared to the carrying amounts were as follows (in thousands):


		March 31, 2022				December 31, 2021
	Level	Carrying amount		Fair value		Carrying amount		Fair value
2019 Notes (1)	1	$	225,761	$	319,700	$	225,534	$	286,207
Term Loan (2)	2		122,500		125,922		140,000		144,871
Total borrowings		$	348,261	$	445,622	$	365,534	$	431,078

(1) The fair value disclosed for the Company's 2019 Notes is included in Level 1 as the basis of valuation uses a quoted price in an active market.

(2) The fair value disclosed for the Company's Term Loan is included in Level 2 as the fair value is determined by an independent third-party pricing source.

SSR Mining Inc.

Notes to Condensed Consolidated Financial Statements

(unaudited)

9.TRADE AND OTHER RECEIVABLES

Trade and other receivables was composed of the following (in thousands):


	March 31, 2022		December 31, 2021
Trade receivables	$	94,525	$	86,124
Value added tax receivables		24,138		20,723
Income tax receivable		6,403		9,374
Other taxes receivable		2,740		1,866
Other		4,873		3,269
Total	$	132,679	$	121,356

No provision for credit loss was recognized as of March 31, 2022 or December 31, 2021. All trade receivables are expected to be settled within twelve months.

10.INVENTORIES

The components of Inventories for the periods ended March 31, 2022 and December 31, 2021 are as follows (in thousands):


	March 31, 2022		December 31, 2021
Materials and supplies	$	97,741	$	79,372
Stockpiled ore		33,200		27,589
Leach pad inventory		257,577		243,627
Work-in-process		5,820		4,951
Finished goods		25,411		33,877
Total current inventories	$	419,749	$	389,416

Stockpiled ore		219,853		220,324
Materials and supplies		1,505		1,293
Total non-current inventories	$	221,358	$	221,617

11.MINERAL PROPERTIES, PLANT AND EQUIPMENT, NET

The components of Mineral properties, plant and equipment, net are as follows (in thousands):


	March 31, 2022		December 31, 2021
Plant and equipment (1)	$	1,745,105	$	1,762,833
Construction in process		51,832		36,841
Mineral properties subject to depletion		1,393,722		1,331,615
Mineral properties not yet subject to depletion		658,637		141,629
Exploration and evaluation assets		318,762		927,176
Total mineral properties, plant, and equipment	$	4,168,058	$	4,200,094
Accumulated depreciation, plant and equipment		(553,257)		(529,635)
Accumulated depreciation, mineral properties		(451,070)		(420,695)
Mineral properties, plant, and equipment, net	$	3,163,731	$	3,249,764

SSR MINING INC. [SSRM] Filings
10-Q	[2022-05-03]
10-K	[2022-02-23]
20-F	[2012-03-30]