Ssr Mining Inc. · NASDAQ:SSRM

Ssr Mining — Silver Standard Resources — Investor Presentation (March 2016)

48 slides from Ssr Mining's investor presentation, March 2016

  1. Slide 1: Creating Value

    CREATING VALUE March 2016 Corporate Presentation

  2. Slide 2: Cautionary Notes

    Cautionary Notes Cautionary Note Regarding Forward-Looking Statements This presentation contains forward-looking information within the meaning of Canadian securities laws and forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 (collectively, “f

  3. Slide 3: Why Silver Standard?

    Why Silver Standard? Strong Operating Performance & Free Cash Flow  Free cash flow ASSETS  Two large mines  Focused portfolio  $212M in cash  $88M in marketable CAPITAL securities  Strong balance sheet  Experienced team MANAGEMENT  In-country expertise  Deliver to plan Note: Cash and market

  4. Slide 4: 2015: A Year of Records

    2015: A Year of Records Record Production 207,006 oz gold and 10.3M oz silver Low Cash Costs $692/oz gold and record low $10.68/oz silver AISC lower year-on-year $895/oz gold, 25% lower, and $12.44/oz silver, 22% lower Free Cash Flow Increased cash balance to $212M, up by $27M Operating Cash Flow $9

  5. Slide 5: Record 2015 Production

    Record 2015 Production 98.9 350Koz 97.3 Gold Eq. Production in 2015 100 $926 93.2 $1,000 $906 82.6 $768 76.0 $723/oz 80.7 $746 Gold Equivalent Cash Costs ($/oz) $800 Gold Equivalent Production (Koz) 75 $765 53.7 $719 $702 Gold Eq. Cash Costs in 2015 $695 $600 50 $400 30.9 25 $200 25.4Moz Silver Eq.

  6. Slide 6: Marigold: Growth in Nevada

    MARIGOLD GROWTH IN NEVADA SSRI:NASDAQ │SSO:TSX │March 2016 6

  7. Slide 7: Track Record of Growth and Performance

    Track Record of Growth and Performance  Open pit, run-of-mine heap leach gold operation  Continuous production since 1988  Strong safety and environmental practices  Excellent infrastructure Twin Creeks Goldstrike MARIGOLD Maverick Springs Phoenix  YE 2015: Produced record 207,006 oz Au at cash

  8. Slide 8: Improved 2016 Guidance at Marigold

    Improved 2016 Guidance at Marigold Gold Production 200,000oz – 210,000oz Cash costs per payable ounce sold $690/oz – $740/oz Capital expenditures $32M Capitalized stripping costs $30M  Production guidance is +20% higher in 2016 compared to 2014 Technical Report  Cash costs guidance is +15% lower i

  9. Slide 9: Invested for Increased Efficiency and Capacity

    Invested for Increased Efficiency and Capacity Increased Shovel Increased Hauling Capacity by over 100% Capacity to 80Mtpa in 2016 21 Trucks 3 Shovels 21 Trucks 18 Trucks 18 Trucks 12 Trucks 2 Shovels 2012 2014 2012 2014 2016 Realizing Efficiencies Operational Excellence is fundamental SSRI:NASDAQ │

  10. Slide 10: Top Quartile Loading Efficiency

    Top Quartile Loading Efficiency 8,000 Average tonnes loaded per hour 6,000 4,000 2,000 0 M1 M8 Marigold M17 M2 M2 M20 M10 M14 M21 M4 495HR 4100 XPB 4100 XPC 495HR 4100 XPB 495HR 495HR 4100 XPC 495HR 495HR 4100 XPB Lowering Costs High loading productivity drives efficiencies and lower costs Note: Mar

  11. Slide 11: Operational Excellence

    Operational Excellence Long-term Cost Savings $1.92 Mining cost per tonne $1.74 $1.70 $1.65 $1.61 $1.62 $1.57 $1.54 $1.48 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Lowering Costs Savings of 1₵ cost per tonne mined = $750,000 annually Notes: Annual savings of $750,000 based

  12. Slide 12: Investing in the Future

    Investing in the Future  Planned exploration expenditures of $4M in 2016  Complete assay program over life of mine  Resources to Reserves conversion drill program  Advance Valmy property exploration SSRI:NASDAQ │SSO:TSX │March 2016 12

  13. Slide 13: Assay Program

    Assay Program Increases Contained Gold by 13% Pit Outline as of Original Topography December 2015 Pit Outline at YE 2016 Pit Outline at YE 2019 Mineralized Ore as at December 2014 Additional Ore Tonnage and Ounces 100 meters W E Notes: See news releases dated July 6, 2015 and February 25, 2016 for a

  14. Slide 14: Mineral Resource Discovery

    Mineral Resource Discovery Valmy and Mud Pits  Three new higher-grade mineralized 8SX HideOut centers discovered in last 15 months  8SX: 91.4 meters at 2.48 g/t Au A’ 8D  8D: 164.6 meters at 1.67 g/t Au A Terry Zone Basalt Pit  HideOut: 76.2 meters at 2.47 g/t Au 1 km N Reserve Pits 2015 Resourc

  15. Slide 15: Increased Mineral Resources

    Increased Mineral Resources 6.0 0.55 0.30 10% increase in Gold Mineral Resources 0.25 0.08 4.58 4.16 0.20 0.63 M+I Mineral 0.35 (million ounces) 4.0 Resources year-on-year Mineral 2.0 Resources based on $1,400/oz gold price, 0.0 compared to 2014 M+I Depletion Gold Price Drilling / Assay Basalt Pit 2

  16. Slide 16: Pirquitas: Large Open-Pit Silver Mine

    PIRQUITAS LARGE OPEN-PIT SILVER MINE SSRI:NASDAQ │SSO:TSX │March 2016 16

  17. Slide 17: Pirquitas Cash Costs Trending Down

    Pirquitas Cash Costs Trending Down $25 10.3 8.0 - 10.0 10 8.7 $19.70 8.6 $20 8.2 $16.88 8 Cash costs per payable Silver Production (Moz) ounce of silver sold 7.1 $15 $12.87 $10.50 - $12.50 6 $12.08 $10.68 $10 4 $5 2 $0 0 2011 2012 2013 2014 2015 Guidance 2016 Lowering Costs Achieved record low cash

  18. Slide 18: Chinchillas Project

    Chinchillas Project Potential to Extend Pirquitas Operating Life  Silver-zinc-lead deposit located 30 km from Pirquitas  +10,000 meters infill drilling completed in Q4 2015  61 meters at 673 g/t silver  50 meters at 637 g/t silver  38 meters at 278 g/t silver  $7.5M planned in 2016 for explora

  19. Slide 19: Pirquitas Underground

    Pirquitas Underground Focused on Mine Life Extension  Potential small-scale, high-grade ore feed from the Chocaya, Oploca and Cortaderas veins  Positive drill results from 2015 drill program:  3.16 meters at 1,436 g/t silver  1.93 meters at 1,890 g/t silver  0.83 meters at 2,670 g/t silver  Co

  20. Slide 20: Properties, Projects and Production

    Properties, Projects and Production Over $570M Cash from Divestments 10 1 8 7 7. Candelaria 1. Marigold 11 8. Maverick 3 Springs 5. Diablillos 9 3. Pitarrilla 9. San Marcial 2. Pirquitas 6. Berenguela 4. San Luis 10. Sunrise Lake 4 6 11. Parral 2 5 SSRI:NASDAQ │SSO:TSX │March 2016 20

  21. Slide 21: San Luis Project

    San Luis Project High Grade Gold Development Option Ancash Region, Peru High grade mineralization with N M+I Mineral Resources of  9.0 Moz Ag at 578.1 g/t  0.35 Moz Au at 22.4 g/t Ecash Community Already Secured  EIA Ayelén Vein  Feasibility Study Going forward San Simon Vein  Pursuing communit

  22. Slide 22: Pitarrilla Project

    Pitarrilla Project  Development stage silver-lead-zinc deposit  Open pit / UG project with potential for long life Parral Mining District Chihuahua  Conventional flotation and leaching Pitarrilla Project Durango  526 Moz Ag Mineral Resources Mexico (Measured and Indicated)  Evaluating optimizat

  23. Slide 23: A High-Quality Intermediate Precious Metals Producer

    A HIGH-QUALITY INTERMEDIATE PRECIOUS METALS PRODUCER Combining Margin and Scale SSRI:NASDAQ │SSO:TSX │March 2016 23

  24. Slide 24: Transaction Summary

    Transaction Summary Terms and Conditions  Total equity value of approximately C$337 million  Acquisition of all outstanding common shares of Claude via Plan of Arrangement Proposed  All outstanding options to purchase Claude common shares will be exchanged for options to Transaction purchase Silv

  25. Slide 25: Transaction Highlights

    Transaction Highlights  Establishes a high-quality intermediate precious metals producer with margin and scale in attractive mineral belts and political regions  Combined company is expected to produce ~390,000 gold equivalent ounces at cash costs of ~$735 per Au Eq ounce sold in 2016  Immediatel

  26. Slide 26: Pro Forma Capitalization and Balance Sheet

    Pro Forma Capitalization and Balance Sheet Claude Silver Units Resources Pro Forma Standard (at offer) TSX Share Price C$ $8.93 $1.65 $8.93 FDITM Shares Outstanding M 82 204 119 FDITM Market Capitalization C$M 730 337 1,066 Cash and Marketable Securities US$M 300 30 330 Total Debt US$M 269 14 283 Fi

  27. Slide 27: Diversified Operating and Geopolitical Platform

    Diversified Operating and Geopolitical Platform Santoy and Seabee Mines Other Development / Exploration Peru (San Luis) Location Saskatchewan, Canada Development Assets Mexico (Pitarrilla) Argentina (Diablillos) Operation Type Underground, Mill Processing Canada (Amisk, Sunrise Lake) 2016E Productio

  28. Slide 28: Claude Resources Overview

    Claude Resources Overview Building Value for the Gold Investor 100%  Leveraged to Canadian Dollar Canadian  2nd best mining jurisdiction in the world Free Cash  >20% FCF margin in 2015 – expect similar in Flow 2016 at C$1,650/oz Strong  C$39.8M in cash and bullion (1); C$19.1M in debt Financial

  29. Slide 29: Seabee: Large, Underexplored Land Package

    Seabee: Large, Underexplored Land Package ~25 km Well Positioned to Increase Exploration Total exploration spend from 2013 to 2015 of ~C$2.5 million Notes: Exploration spend for Claude Resources includes actual spend in 2013 and 2014 and exploration spend guidance for 2015. SSRI:NASDAQ │SSO:TSX │ CR

  30. Slide 30: Claude: Improved Operating & Financial Profile

    Claude: Improved Operating & Financial Profile Higher gold grade and lower costs … … has led to increased cash balance $40 Cash, Short Term Investments & Bullion (C$M) 100 $40 $983 $1,000 $836 76 Cash Cost (C$/oz Au) 75 $30 Production (Koz Au) $800 63 $669 $600 50 44 $20 $400 $12 25 $10 $200 $2 0 $0

  31. Slide 31: Key Driver: Santoy Gap

    Key Driver: Santoy Gap  2,000 oz per vertical metre (Seabee: ~ 1,000 oz/vertical metre)  Production well-ahead of schedule and pre-feasibility design  Reconciling above reserves and resources on ounces and below on tonnage  Infrastructure upgrades on-going for 650-700 tpd profile in 2016  ~10 y

  32. Slide 32: Santoy Mine Complex: Excellent Growth Opportunity

    Santoy Mine Complex: Excellent Growth Opportunity  2016 surface exploration budget of $2.5 million (18,000 metres)  Exploration will focus on: Expanding Mineral Resources near infrastructure & testing greenfield targets for the next Santoy Gap  Underground drilling demonstrated economic grades an

  33. Slide 33: Benefits to Claude Shareholders

    Benefits to Claude Shareholders  Results in an immediate premium of 25% based on Silver Standard and Claude Resources’ 20-day VWAP on March 4, 2016  Immediate premium of 30% to Claude Resources’ closing price of C$1.27 per common share on March 4, 2016  Provides exposure to Silver Standard’s dive

  34. Slide 34: Benefits to Silver Standard Shareholders

    Benefits to Silver Standard Shareholders  Immediate positive free cash flow from high-margin mining operations  Results in production growth with minimal capital investment and a cash flow accretive transaction  Establishes an operating presence in Canada, providing further geopolitical diversifi

  35. Slide 35: High Quality Producer with Margin and Scale

    High Quality Producer with Margin and Scale 2016 Production Estimates (Koz Au Eq) 554 440 392 392 381 324 287 250 178 151 144 CDE AGI Pro Forma HL NGD SSO KGI P MND KDX AR 2016 Cash Costs Estimates (US$/oz Au Eq) $789 $803 $763 $774 $709 $730 $735 $696 $575 $543 $452 NGD P KDX KGI HL AGI Pro Forma M

  36. Slide 36: Leading Mid-Cap Precious Metals Producer

    Leading Mid-Cap Precious Metals Producer Market Capitalization (US$M) $1,913 $1,389 $1,007 $795 $739 $690 $542 $404 $277 $268 $188 NGD AGI HL Pro Forma KGI CDE SSO KDX P MND AR Cash & Marketable Securities (US$M) Net Cash (US$ M) ($452) $46 $31 ($22) ($347) ($365) ($12) ($9) ($85) $42 $28 $336 $330

  37. Slide 37: Creating Value and Growth

    Creating Value and Growth Combines operations with margin and scale Accelerates production growth and exploration Maintains strong financial position Adds underground mining skillset An immediately accretive transaction Enhances credit quality and trading liquidity SSRI:NASDAQ │SSO:TSX │ CRJ:TSX │Ma

  38. Slide 38: Value & Growth

    Value & Growth SSRI:NASDAQ │SSO:TSX │ CRJ:TSX │March 2016 38

  39. Slide 39: Mineral Reserves

    Mineral Reserves (as at December 31, 2015) Mineral Reserves Location Tonnes Silver Gold Zinc Silver Gold millions g/t g/t % million oz million oz Proven Mineral Reserves San Luis Peru 0.06 604.5 28.3 1.1 0.05 Total 1.1 0.05 Probable Mineral Reserves Marigold U.S. 140.30 0.45 2.04 Marigold Leach Pad

  40. Slide 40: Mineral Resources: Measured and Indicated

    Mineral Resources: Measured and Indicated (as at December 31, 2015) Mineral Resources Location Tonnes Silver Gold Lead Zinc Copper Silver Gold millions g/t g/t % % % million oz million oz Measured Mineral Resources (Inclusive of Proven Mineral Reserves) Pitarrilla Mexico 10.13 91.7 29.8 San Luis Per

  41. Slide 41: Mineral Resources: Inferred

    Mineral Resources: Inferred (as at December 31, 2015) Mineral Resources Location Tonnes Silver Gold Lead Zinc Copper Silver Gold millions g/t g/t % % % million oz million oz Inferred Mineral Resources Marigold U.S. 38.80 0.44 0.55 Pirquitas Argentina 0.79 87.3 1.88 2.2 Pirquitas UG Argentina 0.94 20

  42. Slide 42: Reserves and Resources: Notes to Tables

    Reserves and Resources Notes to Tables All estimates set forth in the Mineral Reserves and Mineral Resources table have been prepared in accordance with NI 43-101. The estimates of Mineral Reserves and Mineral Resources for each property other than the Marigold mine have been reviewed and approved b

  43. Slide 43: 2016 Guidance

    2016 Guidance Improved Marigold 2016 production and cash costs guidance Units Marigold Pirquitas Gold Production oz 200,000 – 210,000 – Silver production Moz – 8.0 – 10.0 Zinc production Mlb – 0.0 – 5.0 Cash costs per payable ounce sold $/oz $690 – $740 $10.50 – $12.50 Capital expenditures $M $32 $5

  44. Slide 44: Pro Forma 2016 Guidance

    Pro Forma 2016 Guidance Silver Standard Claude Pro Forma Gold Gold Silver Gold Equivalent 200,000 – 8.0 – 10.0 65,000 – 370,000 – Production 210,000 oz Moz 72,000 oz 414,000 oz Cash Costs $690/oz – $10.50/oz – $525/oz – $690/oz – (US$/oz) $740/oz $12.50/oz $580/oz $780/oz Notes: Pro forma gold equiv

  45. Slide 45: Strong Technical and Commercial Experience

    Strong Technical and Commercial Experience Board of Directors Management Team Peter Tomsett Paul Benson Chairman President, CEO and Director Michael Anglin Gregory Martin SVP and CFO Paul Benson Alan Pangbourne Gustavo Herrero COO Beverlee Park John DeCooman VP, Business Development and Strategy Ric

  46. Slide 46: Relative Performance

    Ownership Summary Top 10 Shareholders % of Shares Outstanding Holdings by Investor Class Van Eck Value 7.1% Kopernik Global Investors 3.9% Renaissance Technologies 2.6% Investec Asset Management 2.6% Institutional Sun Valley Gold 2.4% 47% 53% Retail and Other Wells Capital Management 1.9% Sentry Sel

  47. Slide 47: Notes

    Notes SSRI:NASDAQ │SSO:TSX │ CRJ:TSX │March 2016 47

  48. Slide 48: Silver Standard Resources Inc. Claude Resources Inc.

    Silver Standard Resources Inc. Claude Resources Inc. Website: www.silverstandard.com Website: www.clauderesources.com Email: invest@silverstandard.com Email: ir@clauderesources.com Toll-free: 1.888.338.0046 Telephone: 1.306.668.7505 Telephone: 1.604.689.3846 Fax: 1.306.668.7500

Silver Standard Resources — Investor Presentation (March 2016) on 6ix