Mining News
SSR Mining posts attributable net income of $58.5 million in Q2 2022, flags inflationary pressures
(Kitco News) - SSR Mining (TSX: SSRM) announced today that in Q2 2022, the company produced 159,262 gold equivalent ounces, which is 20% lower than 199,673 ounces produced in Q2 2021.
The company also reported that all-in sustaining costs (AISC) of $1,267 per gold equivalent ounce in Q2 2022 were up 35% from Q2 2021 ($938/oz), as it continues to face increased cost pressures especially in fuel, electricity, and reagents.
SSR Mining said that its previously announced FY 2022 production guidance is unchanged, however the company is revising its cost guidance higher, with production cost guidance of $940 – $1,000 per gold equivalent ounce and AISC guidance of $1,230 – $1,290 per gold equivalent ounce.
The company added that production for the remainder of 2022 is expected to be heavily weighted to the fourth quarter, driven by stronger production at Marigold, the deferral of planned maintenance previously scheduled for the fourth quarter at Çöpler, and the potential mining of higher grades at Seabee.
Accordingly, AISC are expected to be lowest in the fourth quarter, trending below the revised cost guidance range, SSR Mining noted.
The company’s attributable net income in Q2 2022 was $58.5 million (Q2 2021: $74.7 million), or $0.27 per diluted share, and adjusted attributable net income was $66.8 million, or $0.30 per diluted share.
In addition, SSR Mining reported that its Board of Directors declared a quarterly cash dividend of $0.07 per common share payable on September 6, 2022 to holders of record at the close of business on August 12, 2022.
President and CEO Rod Antal stated, "The second quarter of 2022 demonstrated the continued resilience of our globally diversified business in the face of inflationary pressures, as our consolidated production and cost metrics tracked well against our year-to-date targets. We are however continuing to face increased cost pressures especially in fuel, electricity, and reagents across the business that have outpaced our various cost mitigation efforts this year.
“As a result, we are reaffirming our production guidance, albeit at the bottom end of the guidance range, and revising our cost guidance higher for the year to reflect these macroeconomic pressures and the temporary suspension of the Çöpler mine.”
SSR Mining is a leading, free cash flow focused gold company with four producing operations located in the USA, Türkiye, Canada, and Argentina, combined with a global pipeline of development and exploration assets. In 2021, the four operating assets produced approximately 794,000 gold-equivalent ounces.
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