SSR Mining 4Q adjusted income soars on higher output, prices
(Kitco News) - SSR Mining Inc. (NASDAQ, TSX: SSRM) late Thursday reported a much higher fourth-quarter adjusted profit than a year ago as revenue rose sharply due to an increase in the amount of gold and silver sold, as well as higher prices.
The company listed adjusted net income of $36.6 million, or 30 cents a share, well up from $4.4 million, or 4 cents, in the same quarter of 2018. Net income of $19.5 million was a turnaround from a $3.5 million loss in the fourth quarter of 2018.
Quarterly revenue increased by 71% year-on-year to $177 million. The company said this was mainly due to an 18% increase in gold ounces sold and a 20% increase in the realized gold price at the Marigold mine and Seabee gold operation, as well as a 177% increase in silver ounces sold and a 20% increase in realized silver price at the Puna operations.
Paul Benson, president and chief executive officer, said SSR Mining achieved annual production and cost guidance for the eighth consecutive year. SSR Mining produced 421,828 gold-equivalent ounces. The Seabee operation achieved its sixth straight annual output record with 112,137 gold ounces, while Marigold delivered a record 220,227 ounces. Production at both mines topped guidance.
Meanwhile, Puna produced 7.7 million ounces of silver, 24 million pounds of lead and 8.4 million pounds of zinc. Further, the company achieved growth in resources at both Marigold and Seabee.
For full-year 2019, income per share rose 840% to 47 cents a share, while adjusted income climbed 252% to 81 cents a share, SSR Mining said.
“Looking ahead, 2020 consolidated production is forecast to grow to approximately 425,000 gold-equivalent ounces,” Benson said. “With over $500 million of cash and an outlook of increasing production and higher margins at today’s precious metal prices, we are well positioned to continue our track record of creating value for our shareholders."