SLIDE 1
February 23, 2018
Cautionary Notes
PAGE 2 SSRM:NASDAQ/TSX
Cautionary Note Regarding Forward-Looking Statements This pr es entation c ont ains forwar d-look ing informat ion wit hin the meaning of Canadian s ec urities laws and forward-look ing statem ents within the meaning of the U.S. Private S ec urities Litigation Reform A ct of 1995 (collectiv ely, “for ward- looking statem ents”). A ll statements, other than statements of historical fact, are for war d-looking stat em ents. Gener ally, forward- looking st atem ents c an be identified by the use of wor ds or phr ases suc h as “ex pects,” “ anticipates,” “ plans,” “ projects,” “ estim ates,” “ass um es,” “intends,” “ strategy,” “ goals,” “objectiv es,” “potential,” “believ es,” or v ariations t her eof, or stating t hat c ertain actions, ev ents or r esults “m ay,” “ could,” “would,” “ might” or “ will” be t aken, oc cur or be ac hieved, or the negat ive of any of these terms or s imilar ex pr essions. The for war d-looking st atem ents in this news release relate to, among other things: futur e production of gold, s ilv er and other met als, inc luding f orecast ed production incr eas e by 35% in 2021; timing of pr oduction; fut ure costs of inv entor y; cas h costs and all- in s ustaining costs (“ AISC” ) per pay able ounce of gold, silv er and ot her metals sold; expected ex ploration and developm ent ex penditur es; the pric es of gold, silver and other m etals; our ability to dis cov er new ar eas
- f miner alization, to convert Inf erred M ineral Res ourc es to I ndicat ed M ineral Res our ces, to ex pand M ineral Res erv es and t o conv ert Miner al Resources into M ineral Reserves; ex pansion of the S eabee Gold O per ation bas ed on t he r esults of the PE A;
the PE A repr esenting product ion gr owt h, im proved m argins and proces sing plant perfor manc e and low c apital investm ent; timing, amount and durat ion of fut ure pr oduction of gold under the PEA; t he timing of closure of the or iginal S eabee m ine; the timing of awarding c onstr uction c ontr acts for t he Chinc hillas pr oject’s supporting infrastructure; expected timing of c onstr uction of and or e delivery from the Chinchillas project; the ex pected t iming of first ore deliv ery to t he P irquitas mill and antic ipated product ion res ulting ther efrom; the anticipat ed effect of equipment pur chases at M arigold m ine on futur e pr oduction; the ex pect ed benefits of the new leac h pad at the M arigold mine; the effects of laws, regulations and gov ernment polic ies affecting our
- perations or potential future oper ations; our expos ure to fluctuations in ARS and interest rates on the liability under the tax mor atorium; futur e succ essf ul ex ploration and developm ent of our pr ojects; the suffic iency of our current work ing capital,
antic ipated oper ating c ash f low or our ability to r ais e nec ess ary funds; estim ated pr oduction r ates for gold, silver and other met als produced by us; the estim ated cost of sust aining c apital; ongoing or fut ure development plans and capital replacement, impr ov em ent or r emediation pr ogr am s; the estimat es of ex pected or ant icipated ec onom ic ret urns fr om our mining projects, including future s ales of m etals, concentrate or other pr oducts pr oduced by us; and our plans and ex pectations for our propert ies and operations. Thes e forward- looking stat em ents ar e subject to a variety of known and unknown risk s, unc ertainties and other factors that could caus e actual ev ents or results to differ from those ex pr ess ed or im plied, including, without limitation, the following: unc ertainty of pr oduction, dev elopm ent plans and c ost estim ates f or the M arigold m ine, the Seabee G old Operat ion, Puna O per ations and our projects; our ability to r eplace Miner al Res erv es; our ability t o obtain nec ess ary per mits f or the Chinchillas project; comm odity pric e fluctuations; politic al or ec onomic inst ability and unex pect ed r egulat ory c hanges; curr ency and inter est rate fluctuations; the pos sibility of future los ses; general ec onom ic conditions; fully realizing the value of our s hareholdings in Pretium Res our ces Inc. and our other m ark etable s ec urities, due to c hanges in pric e, liquidity or dispos al c ost of such m ark etable s ec urities; c ounterparty and mar ket ris ks relat ed to the sale of our concentrat e and m etals; unc ertainty in the ac cur acy of Mineral Res erv es and Mineral Res ources estim ates and in our ability to extract mineraliz ation profit ably; differences in U.S. and Canadian pr actic es for reporting Miner al Reserv es and Miner al Resources; lack of suitable infrastr uctur e or dam age to exist ing infrastr uctur e; futur e dev elopm ent r isks, inc luding start-up delays and c ost overr uns; our ability to obt ain adequate financing for furt her ex ploration and dev elopment pr ogr ams and opportunities; unc ertainty in acquir ing additional c om merc ially mineable mineral rights; delays in obtaining or failur e to obtain gov er nmental perm its, or non-complianc e with our per mits; our ability to attract and ret ain qualified personnel and management; potent ial labour unrest, including labour actions by our unioniz ed employ ees at Puna O per ations; the impact of gov ernmental r egulations, including health, s afety and env ironm ental regulations, inc luding incr eas ed c osts and r estrictions on oper ations due t o complianc e wit h suc h regulations; reclam ation and clos ur e requir ements for our m ineral propert ies; failur e to effectively manage our tailings facilities; soc ial and economic changes following closur e of a mine, may lead to adver se im pacts and unr est; unpredictable risk s and haz ards related to the dev elopment and operation of a m ine or miner al pr operty that ar e beyond our control; indigenous peoples ’ title claim s and rights to consultation and accomm odation may affect our existing operations as well as development projects and future acquis itions; ass ess ments by taxation authorities in multiple juris dictions; claims and legal pr oc eedings, including adverse rulings in litigation against us and/or our dir ectors or offic ers; complianc e with anti-c orruption laws and internal controls, and incr eased regulator y complianc e costs; c om ply ing with emer ging c lim ate c hange regulations and the im pact of c lim ate c hange, including extreme weather conditions; fully realizing our inter est in def erred c ons ideration r ec eiv ed in c onnection with recent div estitur es; unc ertainties related to title to our mineral properties and the ability to obtain surfac e rights; the sufficienc y of our ins uranc e coverage; civil dis obedience in the countries wher e our miner al pr operties are located; operational safety and sec urity r isks; actions required to be t aken by us under hum an rights law; competition in the m ining industry for mineral pr operties; our ability to complete and s ucc essf ully integr ate an announced acquis ition; an event of default under our Not es may signific ant ly reduce our liquidity and adv ersely affect our business; failur e to m eet c ov enants under our senior secur ed r ev olv ing cr edit f acility; conflicts of inter est that c ould arise from c ertain of our dir ector s’ and offic ers’ involvement wit h other natur al resourc e c ompanies; informat ion syst ems sec urity t hreats; and thos e other v arious ris ks and uncert ainties identif ied under the heading “ Ris k Fact ors” in our most r ec ent A nnual Infor mation F orm filed with the Canadian s ec urities r egulat ory authorit ies and included in our most recent Annual Report on Form 40-F filed with the U.S. Securities and Exchange Commission (“SEC”). The for egoing list is not exhaustive of all factors and ass um ptions which may hav e been used. We c annot as sur e y ou that actual ev ents, perfor mance or r esults will be c onsist ent with thes e forwar d-look ing statements, and m anagem ent’s as sum ptions may prov e to be incorrect. Our f orward-look ing statements reflect cur rent expectat ions regar ding fut ure events and operating perf orm anc e and s peak only as of the date her eof and we do not as sume any obligation to update for ward- looking st atem ents if circumstanc es or m anagem ent’s beliefs, expectations or opinions s hould change ot her than as required by applic able law. For the reas ons s et forth above, you should not plac e undue relianc e on forward-look ing statem ents. All refer ences to “ $” in this presentation are to U.S. dollars unless otherwise stated. Qualified Persons Except as ot her wis e s et out herein, the s cientific and tec hnical inf orm ation contained in this pres ent ation relating to eac h of the: M arigold m ine has been rev iewed and approv ed by Thomas Rice and Jam es N. Car ver, eac h of whom is a S ME Register ed Mem ber, a qualified pers on under National Instr ument 43-101 – Standards of Dis closur e for Miner al Pr ojects (“ NI 43-101”) and our employee; Seabee G old O peration has been rev iewed and appr oved by F. Car l E dmunds, P. Geo., a qualified pers on under NI 43- 101 and our employ ee; and P una Operations has been r eviewed and appr oved by B ruc e Butc her, P. E ng., a qualified pers on under NI 43- 101 and our em ploy ee. The qualified persons hav e ver ified the infor mation disc losed her ein, including the sampling, preparation, security and analytical procedures underlying such information, and are not aware of any significant risks and uncertainties that could be expected to affect the reliability
- r confidence
in the information discussed herein. Cautionary Note to U.S. Investors This pr es entat ion inc ludes Miner al Res erv es and M ineral Resourc es class ific ation term s that comply with report ing standar ds in Canada and the Miner al Res erv es and the Miner al Res our ces estim ates are made in acc or dance with NI 43- 101. NI 43-101 is a rule dev eloped by the Canadian S ecurities Administr ators that establishes standards for all public disc losur e an iss uer mak es of sc ientific and technical infor mation concer ning m ineral pr ojects. These standar ds differ signif icantly from the requir em ents of the SE C s et out in SE C Industry G uide 7. Consequently, Miner al Reserves and Miner al Resources infor mation inc luded in this pres ent ation is not comparable to sim ilar infor mation t hat would generally be disclos ed by domestic U.S. reporting c om panies s ubject t o the reporting and disclos ure requirem ents of the S EC. Under SE C standar ds, m ineraliz ation m ay not be class ified as a “reserv e” unles s the deter mination has been m ade that the mineraliz ation c ould be ec onom ically produc ed or extract ed at the time the reserv e deter mination is m ade. In addit ion, the S EC’s disc los ure standar ds nor mally do not perm it the inc lus ion of infor mation concer ning “ Meas ured Mineral Resourc es,” “Indic ated Miner al Resources” or “Inferr ed Mineral Resources”
- r other descriptions
- f the amount of mineralization
in mineral deposits that do not constitute “reserves” by U.S. standards in documents filed with the SEC. Cautionary Note Regarding Non-GAAP Measures This presentation inc ludes cert ain term s or perfor mance meas ures comm only used in the m ining industry that are not defined under I nternational Financial Reporting St andar ds (“IF RS”), inc luding c as h c osts and AIS C per pay able ounc e of precious metals sold, realized metal pric es, adjusted attributable incom e (los s) before tax, adjusted attribut able net incom e (los s), adjusted bas ic attributable income (loss) per shar e, income from mine oper ations, operating incom e and wor king capital. Non- GAAP financial meas ures do not have any standar diz ed m eaning pr escr ibed under IFRS and, ther efor e, may not be comparable to similar meas ures reported by other companies. We believe that, in addit ion to conv entional meas ures pr epar ed in acc ordanc e wit h IFRS, certain inv estors us e this inf orm ation to evaluate our perfor mance. The data pr es ented is int ended to prov ide additional inf orm ation and should not be consider ed in isolation or as a s ubst itute for meas ures of perfor mance prepar ed in accordanc e with IFRS. These non-GA AP measures should be read in conjunction with our consolidated financial statements. Reader s should refer to our m anagement’s disc uss ion and analys is, available under our cor por ate pr ofile at www.sedar.com or on our website at www.s srm ining.c om, under the heading “ Non-GA AP and A dditional GAAP F inanc ial M eas ures” for a more detailed disc uss ion of how we calculat e suc h m easur es and f or a r econc iliation of s uc h meas ures to IFRS terms.