Ssr Mining Inc. · NASDAQ:SSRM

Ssr Mining — Corporate Update (October 2014)

64 slides from Ssr Mining's corporate update, Oct 15, 2014

  1. Slide 1: Marigold Analyst Tour

    MARIGOLD ANALYST TOUR October 15, 2014

  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: Today's Schedule

    Today’s Schedule  Introduction and Safety Induction 9:30am  Management Presentation 9:45am  Lunch 11:45am  Marigold Analyst Tour 12:45pm  Depart Marigold Mine 4:00pm SSRI:NASDAQ | SSO:TSX 3

  4. Slide 4: Safety Induction

    Safety Induction 1. Safety Share – “Situational Awareness” 2. Building Emergency Muster Locations 3. PPE Requirements 4. Basic Site Safety Location Requirements SSRI:NASDAQ | SSO:TSX 4

  5. Slide 5: Agenda

    Agenda  Introduction and History/Overview  Environment, Safety and Health  Geology  Mineral Resources and Reserves  Mine Operations  Processing  Financial Summary  Mine Optimization  Opportunities and Next Steps SSRI:NASDAQ | SSO:TSX 5

  6. Slide 6: Transformational Acquisition

    Transformational Acquisition 1. Geopolitically diversified our portfolio  Nevada is a long established premier mining location 2. Transaction value for the price paid  NPV of $419M well exceeds the price paid of $268M 3. Robust Life of Mine Plan  Positioned for success through the cycle Focused o

  7. Slide 7: History and Overview

    History and Overview

  8. Slide 8: 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

  9. Slide 9: History

    History  1988: Commenced Production under Rayrock/Homestake/Placer Dome  1999: Transitioned to 100% ROM heap leach processing  1999: Glamis acquired Rayrock Mines  2001: Barrick acquired 33% ownership through Homestake Mining  2005: Mine Expanded  2006: Goldcorp acquired 66% ownership through

  10. Slide 10: Marigold Operations Overview

    Marigold Operations Overview Plant and Administrative Facilities N Leach Pads Terry Pit Mackay Pit Target Pit Basalt – Antler Backfilled Pit 1 km SSRI:NASDAQ | SSO:TSX 10

  11. Slide 11: Environment, Safety and Health

    Environment, Safety and Health

  12. Slide 12: Mine Safety Performance

    Mine Safety Performance  2014 YTD All Injury Frequency Rate (“AIFR”) of 2.48 is consistent with recent years-seven reportable injuries in 2014  Since SSRI took ownership the AIFR has reduced to 1.56  2014 YTD contractor AIFR is 0 Returning to World Class Safe Production SSRI:NASDAQ | SSO:TSX 12

  13. Slide 13: Achieving a Safe Workplace

    Achieving AchievingaaSafe SafeWorkforce Workplace  Face Time with the Workforce  Safe for Life Behavior Reviews  Formal Task Observations  Line Out Meetings  Safety Meetings  Workplace Inspections  Field Level Risk Assessment Effectiveness Reviews  Mock Regulatory Inspection Program  Educat

  14. Slide 14: Environmental Best Practices

    Environmental Best Practices  First operating mine to receive the International Cyanide Management Code certification  One of the first to install mercury pollution control devices  Partnered with the Nevada Division of Wildlife  Annual environmental awareness training  Highly regarded by regul

  15. Slide 15: Mine Reclamation and Closure

    Mine Reclamation and Closure  Where applicable concurrent reclamation is performed throughout the mine life, reducing mine closure costs  Permanent mine closure plan will be submitted, per State & BLM requirements, within 2 years of final closure  Case study- Marigold Tailings Impoundment: Discon

  16. Slide 16: Community Relations

    Community Relations  Education support through various scholarships  Partnership with the Safe Haven Rescue Zoo  Initiated a sustainable investment board, Battle Mountain Advisory Committee  Community wellness and emergency preparedness support through donations and participation in drills and c

  17. Slide 17: Awards & Accreditations

    Awards & Accreditations  International Cyanide Code: First mine worldwide to receive certification  Nevada Mining Association: Safety Awards granted to 15 employees since 2011  Employer Support of the Guard and Reserve: Supervisor and Employer awards  American Red Cross: Several Real Heroes awar

  18. Slide 18: Permitting Strategy and Results

    Permitting Strategy and Results • Pit Expansions Minor • Leach pad & Waste expansions • Dump Expansions Expansion Modification • Infrastructure Improvements • Dewatering/Pit Lake EIS • Infrastructure Expansion Bonding Midyear approval in 2018 progress Continuous focus on permitting SSRI:NASDAQ | SSO

  19. Slide 19: Environmental Impact Statement Timeline

    Environmental Impact Statement Timeline Public Scoping Period Public Comment Public Comment & Meetings Period & Meetings Period Appeal Period Baseline Studies Q1 2016 Q1 2017 Q4 2017 Ongoing Q2 2018 - 2015 Q1-Q4 Q1-Q3 Q2 2015 Q1 2018 2016 2017 Submit Plan of Draft EIS Final EIS Record of Operations

  20. Slide 20: Geology

    Geology

  21. Slide 21: Major Gold Belt in Northern Nevada

    Major Gold Belt in Northern Nevada Idaho Star Lake Concept Twin Midas Creeks Turquoise Rabbit Suture Pinson Ridge Trend Alligator Ridge Sandman Preble Iron Point Utah Hollister Lone Tree Sierra Tact- Buff-T Marigold Convers Willow e Trenton Mule Creek Canyon Canyon Goldbanks Phoenix Fire Creek Kenne

  22. Slide 22: Battle Mountain Mining District Geology

    Battle Mountain Mining District Geology SSRI:NASDAQ | SSO:TSX 22

  23. Slide 23: Marigold Mineralization of Sedimentary Rocks

    Marigold Mineralization of Sedimentary Rocks Terry Zone Complex (looking north) Fault zone Alteration zone Mineralized zone N W SSRI:NASDAQ | SSO:TSX 23

  24. Slide 24: Resource Areas and Exploration Plan

    Resource Areas and Exploration Plan 5 North Discover, Define & Develop Hercules GRADE THICKNESS High 70 g-m Medium 5-70 g-m Low <5 g-m GEOLOGY Quaternary / Tertiary Alluvium Mackay Tertiary Tuff Permian / Mississippian Havallah Permian / Pennsylvanian Antler Ordovician Valmy Target II N MORE REFEREN

  25. Slide 25: Strategic Development of Resources to Reserves

    Strategic Development of Resources to Reserves Cross- Section showing resources that could be converted to future reserves N One Mile SSRI:NASDAQ | SSO:TSX 25

  26. Slide 26: Discover & Define Resource, Develop to Reserve

    Discover & Define Resource, Develop to Reserve Mackay Pit Red Dot Resource Illustrative potential pit shell Marigold Cross-Section W (looking north) E SSRI:NASDAQ | SSO:TSX 26

  27. Slide 27: Marigold 2014 Drilling Results

    Marigold 2014 Drilling Results SSRI:NASDAQ SSRI:NDAQ ||SSO: SSO:TSX TSX 27

  28. Slide 28: Sulfide Potential Below Oxide Resources

    Sulfide Potential Below Oxide Resources 2 miles 5N HERCULES 6 miles MACKAY Valmy pits ANTLER AND BASALT N Gold Mineralization: 6 miles by 2 miles SSRI:NASDAQ | SSO:TSX 28

  29. Slide 29: Conceptual Cross-Section With Local Analogs

    Conceptual Cross-Section With Local Analogs 35 miles MPh PPa Ov Getchell/TRJV Twin Creeks Across valley Across valley Oxide 4.7M ozs 11.1M ozs mineralization Un-Ox sulfide mineralization COc Twin Creeks Comus Fm. COc 6.1M ozs Au Marigold’s unknown Turquoise Ridge Comus Fm. COc gold mineralization 22

  30. Slide 30: Exploration Potential

    Exploration Potential  Oxides  Resource replacement drilling within and directly adjacent to current pit limits  Resource upgrade drilling of Inferred to Indicated  Step-out drill programs focusing on high grade, near surface, following mineralization along known trends, laterally and then to de

  31. Slide 31: Mineral Resources and Reserves

    Mineral Resources and Reserves

  32. Slide 32: Key Assumptions for Resources and Reserves

    Key Assumptions for Resources and Reserves Mineral Resources (as at September 30, 2014)  Estimated by ordinary kriging  Constrained by an optimized pit at a gold price of US$1,500 per ounce  Indicated Mineral Resource is inclusive of Mineral Reserve Mineral Reserves (as at September 30, 2014)  M

  33. Slide 33: Mineral Resources and Reserves Estimate

    Mineral Resources and Reserves Estimate 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 M

  34. Slide 34: Mackay: Reserves and Resources by Location

    Mackay: Reserves and Resources by Location 2014 Reserve LOM Pit Red Dot Area Resource Grade Shell Red Dot Area could be converted to reserve at a favorable price SSRI:NASDAQ | SSO:TSX 34

  35. Slide 35: Mine Operations

    Mine Operations

  36. Slide 36: Mining Position: EOY 2014 and EOY 2019

    Mining Position: EOY 2014 and EOY 2019 2014 2019 5North 1 Pit 5North 2 Pit Waste Dump Hercules 1 Pit Leach Pad Leach Pad Waste Dump Lease Boundary Mackay Pits Mackay Pits Waste Dump WEDG WEDG Waste Dump Waste Dump SSRI:NASDAQ | SSO:TSX 36

  37. Slide 37: 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 | SSO:TSX 37

  38. Slide 38: Operating Statistics: Material Mined

    Operating Statistics: Material Mined 100 5.0 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 | SSO:TSX 38

  39. Slide 39: Phase Design Through the Years

    Phase Design Through the Years 100 5.0 80 4.0 Million Tonnes 60 Waste:Ore 3.0 40 2.0 20 1.0 0 0.0 2015 2016 2017 2018 2019 2020 2021 2022 2023 M=Mackay M6b M9 5N2 M7 5N1 5N= 5 North H1 M8 M5 M2 M4 M3b M3a M6a M1 Strip SR Ratio H=Hercules SSRI:NASDAQ | SSO:TSX 39

  40. Slide 40: Operating Statistics: Gold Production Schedule

    Operating Statistics: Gold Production Schedule 250 100% 225 209 200 172 173 176 166 183 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 | SSO:TSX 40

  41. Slide 41: Operating Statistics: 2014 YTD Tonnes Moved

    Operating Statistics: 2014 YTD Tonnes Moved 210 208 205 204 203 200 199 190 ‘000 Tonnes/Day 187 186 170 161 150 Jan Feb Mar Apr May Jun Jul Aug Sep 2014 29% increase YTD SSRI:NASDAQ | SSO:TSX 41

  42. Slide 42: Mine Fleet

    Mine Fleet Hauling  6 x Komatsu 930  12 x Hitachi EH5000 Loading  1 x P&H 4100  2 x Hitachi EX5500  1 x Komatsu WA 1200 Drilling  2 x Atlas Copco PV271  4 x Ingersoll Rand DML SSRI:NASDAQ | SSO:TSX 42

  43. Slide 43: Processing

    Processing

  44. Slide 44: Process Flow Sheet

    Process Flow Sheet Lean Solution Barren Solution Lime Heap Leach Pad Pregnant Solution Barren Solution Pregnant Solution Barren Ponds Ponds Barren Strip Solution Carbon Adsorption Columns Pregnant Pregnant Carbon Eluant Stripping/Acid Electro-winning Washing/Reactivating E/W Sludge Barren Carbon Slu

  45. Slide 45: Financial Summary

    Financial Summary

  46. Slide 46: Capital Cost Summary

    Capital Cost Summary  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

  47. Slide 47: Operating Cost Summary

    Operating Cost Summary  Operating costs are representative of a large open pit operation $ / 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 per

  48. Slide 48: Life of Mine Operating Costs Breakdown

    Life of Mine Operating Costs Breakdown Royalties 15% Labour 29% Other Direct Costs 11% Power 3% Maintenance 7% Consumables 20% Fuel 16% *Includes capitalized stripping of $204 million Note: All data includes the period encompassing October 2014 though 2027. Maintenance excludes capitalized maintenan

  49. Slide 49: Operating Cost Summary

    Operating Cost Summary $986 $1,000 $28 $74 $ / oz 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 AISC

  50. Slide 50: Cash Costs and All In Sustaining Costs

    Cash Costs and All In Sustaining Costs $1,200 1,157 1,139 1,090 1,099 1,028 $1,000 890 808 793 787 $/oz p sold $800 $600 869 $400 765 755 761 802 766 690 675 692 $200 $0 2015 2016 2017 2018 2019 2020 2021 2022 2023 AISC Cash Costs Competitive cost structure Note: Cash costs and all-in sustaining cos

  51. Slide 51: Average royalty rate of 9.8% over LOM

    Average royalty rate of 9.8% over LOM  Annual average varies from 9.1-10.0% 5%  Royalty Holders:  Century Gold 5% 3%  Royal Gold  Franco-Nevada 10%  University of Nevada  VEK 10%  Sections in blue have no Royalty 10% 5% SSRI:NASDAQ | SSO:TSX 51

  52. Slide 52: 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 | SSO:TSX 52

  53. Slide 53: 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 | SSO:TSX 53

  54. Slide 54: Mine Optimization

    Mine Optimization

  55. Slide 55: Objectives and Results to Date

    Objectives and Results to Date  Enhance the key elements of the  Improve communication Management Operating System (“MOS”)  Enhance effective, timely reporting of  Educate front line management results  Develop effective visual management  Enhance effective close out of action tools items Prot

  56. Slide 56: Drilling and Blasting

    Drilling and Blasting Drill Footage per Operating Hour 4100 Tons per Operating Hour 115 7,000 +19% +7% 110 6,500 105 6,000 100 5,500 95 90 5,000 85 4,500 Apr May Jun Jul Aug Sep Jan Feb Mar Apr May Jun Jul Aug Sep 2014 2014 Improved drilling rates and digability SSRI:NASDAQ | SSO:TSX 56

  57. Slide 57: Case Study – P&H 4100

    Case Study – P&H 4100  Situation:  New equipment  New bench height  Needs Identified: Space  Identify areas/bench height where the shovel can be effective  Continue double side loading High quality blasted material  Drilling correct level, fragmentation study  Sufficient blasted stock in fro

  58. Slide 58: 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 Tonnes Moved per Day Rope Shovel Cost per Tonne Loaded 210 +13% $0.20 $0.18 190 $0.16 (30)% $0.14 170 $0.12 150 $0.10 * Q1 2014 Q2 2014 Q3 2

  59. Slide 59: Operational Excellence Focus

    Operational Excellence Focus  Truck constrained – focus on truck efficiency & effectiveness Availability Utilization  Investigate Root Cause of  Improved Shift Change Time Unintended Results  Improved Planning of Materials and  Dispatch Network Upgrade People  Better Parts & Materials Controls

  60. Slide 60: Opportunities and Next Steps

    Opportunities and Next Steps

  61. Slide 61: 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 | SSO:TSX 61

  62. Slide 62: Questions & Answers

    Questions & Answers an ae < = SEAS. oe

  63. Slide 63: 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

  64. Slide 64: 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

SSR Mining — Corporate Update (October 2014) on 6ix