Ssr Mining Inc. · NASDAQ:SSRM
Ssr Mining — Silver Standard Resources — Technical Presentation (October 2014)
24 slides from Ssr Mining's technical presentation, Oct 7, 2014
Slide 1: Marigold Life of Mine Plan
Marigold Life of Mine Plan October 7, 2014 SSRI:NDAQ | SSO: TSX 1
Slide 2: Cautionary Notes
Cautionary Notes Cautionary Note Regarding Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and “forward-looking information” within the meaning of Canadian securities laws (collectively
Slide 3: Delivering on Priorities
Delivering on Priorities Completed acquisition of Marigold for $268M (Apr 2014) Successful integration into Silver Standard (Jun 2014) Mineral Resources and Reserves Estimates (Oct 2014) Marigold LOM Plan (Oct 2014) Focused on margin and mine life extension SSRI:NASDAQ SSRI:NDAQ ||SSO: SSO:T
Slide 4: Life of Mine Plan Highlights
Life of Mine Plan Highlights Competitive cost structure Long mine life with potential to extend Low capital requirements Robust economics Significant gold price and operating leverage Positioned for success through the cycle SSRI:NASDAQ SSRI:NDAQ ||SSO: SSO:TSX TSX 4
Slide 5: Mine Overview
Mine Overview Open pit, run-of-mine heap leach operation Conventional truck and shovel equipment Gold doré Continuous operation since 1988 Twin Creeks Goldstrike Maverick MARIGOLD Springs Phoenix Strong safety and environmental practices Cortez Carlin Trend Excellent infrastructure Battl
Slide 6: Mineral Resources and Reserves Estimates
Mineral Resources and Reserves Estimates Probable 129.7 Mt grading 0.51 g/t gold Mineral Reserves Contained gold of 2.1 Moz Indicated 243.7 Mt grading 0.51 g/t gold Mineral Resources Contained gold of 4.0 Moz Inferred 13.4 Mt grading 0.46 g/t gold Mineral Resources Contained gold of 0.2
Slide 7: Mine Plan Overview
Mine Plan Overview Production Schedule Annual Average Total material moved: 71.8 Mt Ore to leach pad: 15.1 Mt Strip ratio: 3.7 : 1 Gold recovery: 74% Gold grade to leach pad: 0.51 g/t SSRI:NASDAQ SSRI:NDAQ ||SSO: SSO:TSX TSX 7
Slide 8: Production Profile and Gold Recoveries
Production Profile 250 100% 225 209 200 172 183 173 176 166 75% Gold Produced (Koz) Gold Recoveries (%) 159 150 50% 100 70 25% 50 0 0% 2015 2016 2017 2018 2019 2020 2021 2022 2023 Stable production base SSRI:NASDAQ SSRI:NDAQ ||SSO: SSO:TSX TSX 8
Slide 9: Capital Expenditures
Capital Expenditures Total life of mine sustaining capital requirements Sustaining Capital Costs Total ($M) Mining Equipment $17 Capitalized Equipment Maintenance 74 Processing 24 Administration and Permitting 8 Total $123 Past investment for future benefit Note: Sustaining capital costs excludes
Slide 10: Operating Costs
Operating Costs Operating costs are representative of a large open pit operation LOM Cost / oz $ / oz Sold $ / tonne LOM Cost / tonne Processed Cash Costs $762 * Mine Operations $7.13 Capitalized Stripping 123 Processing 1.33 Sustaining Capital 74 G&A 0.69 Reclamation 28 Total $9.16 All-in Sustain
Slide 11: Operational Excellence
Operational Excellence Explore and Plan Drill Blast Load Haul Heap Ore Dore Plant Leach Waste Moving tonnes at the lowest cost SSRI:NASDAQ SSRI:NDAQ ||SSO: SSO:TSX TSX 11
Slide 12: Drilling and Blasting
Drilling and Blasting Drill Footage per Operating Hour 115 110 +7% 105 100 95 90 85 Apr May Jun Jul Aug Sep 2014 Improved drilling rates and quality of drilling SSRI:NASDAQ SSRI:NDAQ ||SSO: SSO:TSX TSX 12
Slide 13: Loading
Loading Rope Shovel Availability Rope Shovel Utilization 100% +38% 90% +19% 90% 80% 80% 70% 70% 60% 60% 50% 50% Q1 2014 Q2 2014 Q3 2014 Q1 2014 Q2 2014 Q3 2014 Rope Shovel Cost per Tonne Loaded $0.20 $0.18 $0.16 $0.14 (30)% $0.12 $0.10 * Q1 2014 Q2 2014 Q3 2014 Loading trends leading to lower costs
Slide 14: Haulage
Haulage Haulage Operating Hours (Hitachi EH5000 AC1 Trucks Only) 9,000 +20% 8,000 7,000 6,000 Q1 2014 Q2 2014 Q3 2014 Operating hours increasing…more tonnes moved SSRI:NASDAQ SSRI:NDAQ ||SSO: SSO:TSX TSX 14
Slide 15: Mine Economics
Mine Economics After-tax NPV (5%) = $419M Revenue = $2.2B (at $1,300 per ounce gold price) After-tax Free Cash Flow = $536M After-tax NPV (5%) sensitivity analysis: +10% gold price: $540M (10%) operating costs: $495M SSRI:NASDAQ SSRI:NDAQ ||SSO: SSO:TSX TSX 15
Slide 16: Marigold Going Forward
Marigold Going Forward Resource delineation and upgrade Operational excellence focused on mining costs and practices Exploration for oxide and sulphide mineralization Focused on delivering results and continued growth SSRI:NASDAQ SSRI:NDAQ ||SSO: SSO:TSX TSX 16
Slide 17: Summary
Summary Transformational acquisition in April 2014 Marigold delivers: Competitive cost structure Long mine life with potential to extend Low capital requirements Robust economics Significant gold price and operating leverage Immediate leverage to gold with growth potential SSRI:NASDAQ
Slide 18: Question & Answer
QUESTION & ANSWER SSRI:NDAQ | SSO: TSX 18
Slide 19: Appendices
APPENDICES SSRI:NDAQ | SSO: TSX 19
Slide 20: Sensitivity Analysis
Sensitivity Analysis $600 $400 NPV ($M) $200 $0 (10)% Base Case 10% Gold Price Operating Cost Capital Expenditures (10)% 0% 10% Gold Price $297M $419M $540M Operating Cost $495M $419M $342M Sustaining Capex $430M $419M $409M Leverage to rising gold price SSRI:NASDAQ SSRI:NDAQ ||SSO: SSO:TSX TSX 20
Slide 21: Mineral Resources and Reserves Estimates
Mineral Resources and Reserves Estimates Long-life mine with exploration upside Potential to extend mine life with history of strong resource conversion Updated mineral reserves and resources estimates Mineral Reserves and Mineral Resources Tonnes Metal Grade Contained Metal (M tonnes) (g/t Au
Slide 22: Mineral Resources: Notes to Table
Mineral Resources: Notes to Table 1. James Carver, Registered SME Member (# 509390), is the Qualified Person for the Mineral Resources estimate. 2. The Mineral Resources estimate has been classified in accordance with Canadian Institute of Mining, Metallurgy and Petroleum (CIM, 2010) definition stan
Slide 23: Mineral Reserves: Notes to Table
Mineral Reserves: Notes to Table 1. Thomas Rice, SME Registered Member (#269380), is the Qualified Person for the Mineral Reserves estimate. 2. Trevor Yeomans, B.Sc. (Hons), ACSM, P. Eng. is the Qualified Person who provided metallurgical parameters that were incorporated in the Mineral Reserves est
Slide 24: Marigold Life of Mine Plan
Marigold Life of Mine Plan SSRI:NDAQ | SSO: TSX 24
Silver Standard Resources — Technical Presentation (October 2014) on 6ix