Ssr Mining Inc. · NASDAQ:SSRM

Ssr Mining — Silver Standard Resources — Investor Presentation (January 2015)

44 slides from Ssr Mining's investor presentation, Jan 23, 2015

  1. Slide 1: Precious Metals Growth: January 2015 Corporate Presentation

    PRECIOUS METALS GROWTH January 2015 Corporate Presentation SSRI:NDAQ | SSO: TSX 1

  2. 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

  3. Slide 3: Why Silver Standard?

    Why Silver Standard? ASSETS CAPITAL MANAGEMENT Two large mines Increased cash Experienced team balance to $135M Focused portfolio In-country expertise $100M in marketable Free cash flow securities Deliver to plan Elements for Growth SSRI:NASDAQ SSRI:NDAQ ||SSO: SSO:TSX TSX 3

  4. Slide 4: Delivering Now and for the Future

    Delivering Now and for the Future 2010 – 2011 2012 2013 2014 Invested capital Delivering Pirquitas Cost re-based Growth  $211M Pretium  Pirquitas exceeds  Pirquitas cost re-  $268M Marigold IPO guidance structuring mine acquisition  $265M convertible  Pirquitas reserves  Pitarrilla feasibilit

  5. Slide 5: Balanced Growth Portfolio

    Balanced Growth Portfolio 10 1 8 7 3 9 8. Maverick 1. Marigold Springs 6. Berenguela 5. Diablillos 3. Pitarrilla 9. San Marcial 2. Pirquitas 4 7. Candelaria 4. San Luis 6 2 10. Sunrise Lake 5 + $570M SSRI:NASDAQ SSRI:NDAQ ||SSO: SSO:TSX TSX 5

  6. Slide 6: Marigold: Established Gold Mine

    MARIGOLD ESTABLISHED GOLD MINE SSRI:NDAQ | SSO: TSX 6

  7. Slide 7: Our Second Operating Mine

    Our Second Operating Mine  Open pit, run-of-mine heap leach operation  Conventional truck and shovel equipment  Gold doré Twin Creeks Goldstrike MARIGOLD Maverick Springs  Continuous operation since 1988 Phoenix Cortez Carlin Trend  Strong safety and environmental practices Battle Mountain- Eur

  8. Slide 8: Mineral Resources and Reserves Estimate

    Mineral Resources and Reserves Estimate Probable  129.7 Mt grading 0.51 g/t gold (2) 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

  9. Slide 9: Discover & Define Resource, Develop to Reserve

    Discover & Define Resource, Develop to Reserve Mackay Pit (2) Red Dot Resource Illustrative potential pit shell Marigold Cross-Section W (looking north) E SSRI:NASDAQ SSRI:NDAQ ||SSO: SSO:TSX TSX 9

  10. Slide 10: 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 10

  11. Slide 11: Increased Efficiencies: Loading Capacity

    Increased Efficiencies: Loading Capacity Rope Shovel Availability Rope Shovel Utilization 100% +38% 90% +19% 90% 80% (2) 80% 70% 70% 60% 60% 50% 50% Q1 2014 Q2 2014 Q3 2014 Q1 2014 Q2 2014 Q3 2014 Tonnes Moved per Day Rope Shovel Cost per Tonne Loaded 210 +13% $0.20 $0.18 190 $0.16 $0.14 (30)% 170 $

  12. Slide 12: Operating Cost Summary

    Operating Cost Summary  Operating costs are representative of a large open pit operation (2) $ / tonne 0% LOM Cost / tonne Processed G&A 8% Processing * Mine Operations $7.13 13% Processing 1.33 Mine Operations 79% G&A 0.69 Total $9.16 Mining Operations represent ~80% of costs * Equivalent to $1.50

  13. Slide 13: Operating Cost Summary: LOM AISC less than $1,000/oz

    Operating Cost Summary $986 $1,000 $28 $74 $ / oz (2) Sold $950 $900 $123 Cash Costs $762 $850 Capitalized Stripping 123 $/oz sold $800 $762 $750 Sustaining Capital 74 $700 Reclamation 28 $650 $600 Cash Capitalized Sustaining Reclamation AISC All-in Sustaining Costs $986 Cost Stripping Capital LOM A

  14. Slide 14: Capital Cost Summary

    Capital Cost Summary  Total life of mine sustaining capital requirements (2) 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 exclu

  15. 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

  16. Slide 16: Cash Flow and Production Growth in 2015

    Cash Flow and Production Growth in 2015  Acquired Marigold mine April 2014 Guidance 2015 (1)  Achieved record Q4 2014 Gold 160,000 – production 175,000 oz production of +67,000 ounces gold Cash costs per payable $725 – ounce of gold $800 / oz  Produced 129,615 ounces gold in sold (2) 2014 (April

  17. Slide 17: 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 17

  18. Slide 18: Pirquitas: Large Open-Pit Silver Mine

    PIRQUITAS LARGE OPEN-PIT SILVER MINE SSRI:NDAQ | SSO: TSX 18

  19. Slide 19: Proven Capability and Delivery

    Proven Capability and Delivery  100% owned and operated silver and zinc mine Pirquitas Mine  2010: Invested capital Jujuy, Argentina  2011 – 2012: Delivered predictable production  2013: Improved cost structure, completed push back  2014: Repositioned on cost curve, record annual production Dia

  20. Slide 20: Improving Environment

    Improving Environment Argentina 2015 Guidance (1)  Peso devaluation 29% vs  9.0 – 10.0M oz Ag production 11% blue market to Aug 2014  10 – 12M lb Zn production  Normalizing climate  $11.50 – $12.50 / oz cash cost (2)  Paris Club (per payable ounce of silver sold)  Repsol / YPF  $10M capex 

  21. Slide 21: Actively Managing Costs Down for Long-Term

    Actively Managing Costs Down for Long-Term $19.70 $16.88 Cash costs per payable $12.87 ounce of silver sold $12.36 $12.18 $12.00 - $11.50 - $13.00 $12.50 $12.22 2011 2012 2013 Q1 2014 Q2 2014 Q3 2014 2014 2015 Guidance Guidance Note: Cash costs are a non-GAAP financial measure. Please see "Cautionar

  22. Slide 22: San Luis: Dual Option to Value

    San Luis: Dual Option to Value Ancash Region, Peru  Going forward N  Focused on the Bonita Zone  Pursuing community agreements Ecash Community  Already secured Ayelén Vein  EIA  Feasibility study San Simon Vein Bonita Zone Cochabamba 3 km Community SSRI:NASDAQ SSRI:NDAQ ||SSO: SSO:TSX TSX 22

  23. Slide 23: Pitarrilla: Large Option

    Pitarrilla: Large Option  Redefining way forward Parral Mining District Chihuahua  Continued exploration of land position Pitarrilla Project  Production optionality Durango  Water moratorium Mexico  Pitarrilla Feasibility Study Results (December 2012)  32-year life: 480M oz Ag reserves  Avg.

  24. Slide 24: Strong Liquidity Position

    Strong Liquidity Position $234M CASH AND MARKETABLE SECURITIES $265M CONVERTIBLE NOTES Note: Cash and marketable securities are as at September 30, 2014. SSRI:NASDAQ SSRI:NDAQ ||SSO: SSO:TSX TSX 24

  25. Slide 25: Strong Technical and Commercial Experience

    Strong Technical and Commercial Experience Management Team John Smith Gregory Martin Alan Pangbourne John DeCooman President, CEO SVP and Chief SVP, Operations VP, Business Development and Director Financial Officer and Strategy Nadine Block Kelly Stark-Anderson Jon Gilligan Ed Kirwan Bruce Huber VP

  26. Slide 26: Achieving Strategy in 2015

    Achieving Strategy in 2015 Positive free cash flow at corporate level Strong balance sheet & cash flow for growth We will achieve our 2015 goals by:  Continuing operational excellence at our mines  Maintaining cost discipline SSRI:NASDAQ SSRI:NDAQ ||SSO: SSO:TSX TSX 26

  27. Slide 27: SSRI:NASDAQ SSRI:NDAQ | | SSO: SSO:TSX

    SSRI:NASDAQ SSRI:NDAQ ||SSO: SSO:TSX TSX 27

  28. Slide 28: Development Project Portfolio

    Development Project Portfolio Pitarrilla Feasibility Study Results San Luis Feasibility Study Results (December 2012) (June 2010)  32-year life: 479M oz Ag reserves  3.5-year life: Underground mine  Avg. production: 15M oz Ag (1st 18 years)  Avg. annual 1.9M oz Ag production: 78,000 oz Au  Cash

  29. Slide 29: Mineral Reserves

    Mineral Reserves (as at December 31, 2013) Mineral Reserves Metal grade Contained metal Tonnes Silver Gold Lead Zinc Silver Gold (mil.) (g/t) (g/t) (%) (%) (mil. oz) (mil. oz) Proven 7.1 208.0 - - 0.55 47.3 - Pirquitas Probable 2.9 179.0 - - 1.28 16.6 - Stockpiles (a) 1.1 125.0 - - 1.39 4.5 - Pitarr

  30. Slide 30: Mineral Resources: Measured & Indicated

    Mineral Resources: Measured & Indicated (as at December 31, 2013) Measured & Indicated Mineral Resources (inclusive of Mineral Reserves) Metal grade Contained metal Tonnes Silver Gold Lead Zinc Copper Silver Gold (mil.) (g/t) (g/t) (%) (%) (%) (mil. oz) (mil. oz) Measured 7.9 210.0 - - 0.35 - 53.2 -

  31. Slide 31: Mineral Resources: Inferred

    Mineral Resources: Inferred (as at December 31, 2013) Inferred Mineral Resources Metal grade Contained metal Tonnes Silver Gold Lead Zinc Copper Silver Gold (mil.) (g/t) (g/t) (%) (%) (%) (mil. oz) (mil. oz) Pirquitas 5.4 162.0 - - 2.38 - 28.3 - Pitarrilla 22.1 62.1 - 0.21 0.49 - 44.1 - San Luis 0.0

  32. Slide 32: Reserves & Resources: Notes to Tables

    Reserves & Resources: Notes to Tables All estimates of Mineral Reserves and Mineral Resources in the Mineral Reserves and Mineral Resources tables have been prepared in accordance with National Instrument 43-101—Standards of Disclosure for Mineral Projects (“NI 43-101”) and have been reviewed and ap

  33. Slide 33: Reserves & Resources: Notes to Tables

    Reserves & Resources: Notes to Tables Diablillos Mineral Resources estimate was completed in a technical report entitled “Technical Report on the Diablillos Property-Salta and Catamarca Provinces, Argentina” dated July, 2009. Mineral Resources are reported above a recoverable metal value (“RMV”) cut

  34. Slide 34: Marigold Mineral Resources and Reserves

    Marigold Mineral Resources and Reserves (as at September 30, 2014) Mineral Reserves Tonnes Gold Grade Contained Gold Category (Mt) (g/t) (Moz) Proven - - - Probable 129.7 0.51 2.12 Total 129.7 0.51 2.12 Mineral Resources (inclusive of Mineral Reserves) Tonnes Gold Grade Contained Gold Category (Mt)

  35. Slide 35: Marigold Mineral Resources: Notes to Table

    Marigold 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) defini

  36. Slide 36: Marigold Mineral Reserves: Notes to Table

    Marigold 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 Res

  37. Slide 37: More Capacity, More Efficiency

    More Capacity, More Efficiency Shovel Capacity (Cubic Yards) 150 100 3 Shovels + 109% 2 Shovels 50 0 2012 2014 Hauling Capacity (Tonnes) Haul Truck Maintenance (Hours) 5,000 Maintain 20 Wash 18 Trucks + 50% - 50% 12 Trucks 2,500 10 0 0 2012 2014 2012 2014 New, large scale equipment adds significant

  38. Slide 38: Operating Statistics: Material Mined

    Operating Statistics: Material Mined 100 5.0 (2) 80 4.0 Million Tonnes Waste:Ore 60 3.0 64 59 59 62 60 40 53 53 47 2.0 20 1.0 14 13 15 15 15 15 15 15 15 5 0 0.0 2015 2016 2017 2018 2019 2020 2021 2022 2023 Waste tonnes Ore tonnes Strip Rato Strip ratio declines over time SSRI:NASDAQ SSRI:NDAQ ||SSO:

  39. Slide 39: Operating Statistics: Gold Production Schedule

    Operating Statistics: Gold Production Schedule 250 100% 225 (2) 209 200 172 173 176 166 183 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 39

  40. Slide 40: Sensitivity Analysis

    Sensitivity Analysis $600 (2) $400 NPV ($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 Note: Sensitivity analysis assumes base c

  41. Slide 41: Marigold Site Overview

    Marigold Site Overview Plant and Administrative Facilities N (2) Leach Pads Terry Pit Mackay Pit Target Pit Basalt – Antler Backfilled Pit 1 km SSRI:NASDAQ SSRI:NDAQ ||SSO: SSO:TSX TSX 41

  42. Slide 42: Marigold 2014 Drilling Results

    Marigold 2014 Drilling Results (2) Note: See news release dated October 15, 2014 for selected drill hold highlights and reference data for the Marigold exploration drill program. SSRI:NASDAQ SSRI:NDAQ ||SSO: SSO:TSX TSX 42

  43. Slide 43: Presentation Endnotes

    Presentation Endnotes All amounts are in U.S. dollars unless otherwise stated. 1) See news release dated January 14, 2015 for production and cost guidance. 2) Cash costs are a non-GAAP financial measure. See “Cautionary Note Regarding Non-GAAP Measures” in this presentation. SSRI:NASDAQ SSRI:NDAQ ||

  44. Slide 44: Corporate Presentation

    CORPORATE PRESENTATION SSRI:NDAQ | SSO: TSX 44

Silver Standard Resources — Investor Presentation (January 2015) on 6ix