SSR Mining Inc. — FY2021 Form 10-K
Period: Fiscal year ended December 31, 2021. This is an annual report, not a standalone fourth-quarter earnings release. Unless noted, amounts are U.S. dollars. The company adopted U.S. GAAP retrospectively for the presented periods after losing foreign-private-issuer status.
Business context
SSR Mining operates four producing assets: Çöpler in Turkey, Marigold in the United States, Seabee in Canada, and Puna in Argentina. Gold represented 84% of 2021 revenue; Puna sells silver, lead, and zinc concentrates.
Financial and operating performance
| Metric | FY2021 | FY2020 |
|---|---|---|
| Revenue | $1,474.2 million | $853.1 million |
| Operating income | $444.4 million | $188.3 million |
| Net income | $425.9 million | $157.2 million |
| Net income attributable to SSR Mining shareholders | $368.1 million; $1.70 basic per share | $151.5 million; $1.00 basic per share |
| Cash provided by operating activities | $609.0 million | $307.1 million |
| Capital expenditures | $164.8 million | $139.0 million |
| Free cash flow (non-GAAP) | $444.2 million | $168.1 million |
| Gold-equivalent production | 794,456 oz | 484,153 oz |
| AISC per gold-equivalent ounce sold (non-GAAP) | $955 | $1,193 |
Revenue rose 72.8%, primarily reflecting a full year of Çöpler results following the September 2020 Alacer acquisition, and resumed/full-year operations at Seabee and Puna after their 2020 COVID-related suspensions. Gold-equivalent ounces sold increased 71.4%; realized gold price declined 0.6% to $1,802/oz. AISC fell 19.9%. Marigold production was broadly steady; Seabee produced a record 118,888 oz of gold.
At year-end, cash and cash equivalents were $1,017.6 million, up from $860.6 million. Debt carrying value was $367.0 million, including $225.5 million of 2.5% convertible notes and a $140.0 million term loan; the $200 million revolving facility was undrawn. Current liabilities were $283.9 million and current assets were $1.60 billion. Restricted cash of $35.3 million is separate from cash and cash equivalents. The company reported $125.0 million of reclamation liabilities and $126.2 million of lease liabilities.
Capital allocation, changes, and unusual items
- Revenue growth and improved earnings reflect both the acquisition comparison and operating recovery; FY2020 included Çöpler only from September 16 and care-and-maintenance costs at Seabee and Puna.
- Shareholder returns totaled $191.3 million: $148.1 million for repurchases of 8.8 million shares and $43.2 million in dividends. In February 2022, the board declared a $0.07 quarterly dividend, up from the initial $0.05 level; future dividends remain discretionary.
- The company recorded a $20.3 million impairment related to the royalty portfolio sale. It also reported a $14.1 million income-tax benefit, principally associated with foreign-exchange remeasurement of non-monetary assets in Turkey; the tax result is therefore an important earnings-quality consideration.
- The royalty portfolio sale to EMX generated $33.0 million cash and $34.5 million in EMX shares, plus up to $34.0 million in contingent payments tied to project milestones. The contingent amount is not assured.
- Gold proven and probable reserves were reported at 9.154 million oz in the detailed reserve table. Separately, the highlights cite 10.2 million total gold-equivalent reserve oz, up 13%; these are different measures and should not be conflated.
Outlook, risks, and contingencies
Management said existing capital resources and expected operating cash flows should fund planned activities and commitments for at least 12 months. The filing excerpt does not provide a clear quantified consolidated production or cost forecast for 2022. Management highlighted exploration and development opportunities, including the Çöpler flotation circuit, which began commissioning in late December 2021, and a proposed copper-recovery concept at Çöpler. The copper assessment is preliminary, includes inferred resources, assumes estimated capital of $218 million with ±50% accuracy, and is not a certainty of economic realization.
Key risks include volatile metal prices; inflation and energy, labor, and supply costs; water availability; permitting and environmental obligations; reserve and recovery estimation; geopolitical, currency, and regulatory exposure in operating jurisdictions; and operational, geotechnical, tailings, and COVID-related disruption. The company was litigating with Turkey over withholding tax on distributions from its Turkish operation for tax years 2016–2020. It also disclosed exposure to LIBOR transition and provisional pricing on Puna concentrate sales. Management said ordinary-course legal proceedings were not expected to have a material effect; the filing text does not provide a clear quantified aggregate loss exposure.
PwC issued unqualified opinions on the financial statements and internal controls, and management concluded internal control over financial reporting was effective. The auditor identified impairment-indicator assessment for mineral properties, plant, and equipment as a critical audit matter.
Investor verification checklist
- Compare subsequent operating results and formal guidance with FY2021 production, AISC, and free-cash-flow performance; distinguish non-GAAP measures from GAAP results.
- Track Çöpler flotation ramp-up and any future copper project studies, approvals, capital requirements, and demonstrated recoveries.
- Review the Turkish withholding-tax dispute, potential outcomes, and tax-credit eligibility and utilization assumptions.
- Confirm debt repayment timing, LIBOR replacement terms, covenant headroom, and how shareholder returns compete with growth and sustaining capital needs.
- Assess reserve movements and mine-life assumptions, especially at Marigold and Seabee, and reconcile the 9.154 million gold-ounce reserve figure with the 10.2 million gold-equivalent headline.
- Monitor EMX contingent consideration, the Taiga Gold acquisition and Pitarrilla disposal status, and concentration among gold buyers; Istanbul Gold Refinery and CIBC accounted for 41% and 30% of FY2021 revenue, respectively.