EX-99.1 2 a2018q3fs.htm EXHIBIT 99.1 Exhibit

ssrmininglogonewa08.jpg








CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE THREE AND NINE MONTHS ENDED
SEPTEMBER 30, 2018 AND 2017
(unaudited)







Contents




 
Financial Statements
 
 
 
 
 
 
 
 
 
 
Notes to the Condensed Consolidated Interim Financial Statements
 
 
 
 
 
Statements of Financial Position
 
 
 
 
 
 
Statements of Income
 
 
 
 
 
Statements of Shareholders’ Equity
 
 
 
 
Additional Disclosures
 
 
 



SSR Mining Inc.
Interim Financial Statements Q3 2018 | 2


Condensed Consolidated Interim Statements of Financial Position
SSR Mining Inc.
(expressed in thousands of United States dollars)


 
Note
September 30

December 31

 
 
2018

2017

 
 
$ 

$

Current assets
 
 
 
Cash and cash equivalents
 
474,511

459,864

Trade and other receivables
 
32,497

38,052

Marketable securities
 
6,714

114,001

Inventory
3
214,674

182,581

Other
 
3,163

5,099

 
 
731,559

799,597

Non-current assets
 
 
 
Property, plant and equipment
 
693,047

658,629

Goodwill
 
49,786

49,786

Deferred income tax assets
 
3,303

—

Other
 
26,022

29,442

Total assets
 
1,503,717

1,537,454

 
 
 
 
Current liabilities
 
 
 
Trade and other payables
4
77,160

60,153

Provisions
5
4,951

11,313

 
 
82,111

71,466

Non-current liabilities
 
 
 
Deferred income tax liabilities
 
108,947

114,576

Provisions
5
72,509

94,304

Debt
 
243,858

233,180

Total liabilities
 
507,425

513,526

 
 
 
 
Shareholders' equity
 
 
 
Share capital
 
1,050,776

1,047,233

Other reserves
 
(15,090
)
24,998

Equity component of convertible notes
 
68,347

68,347

Deficit
 
(129,828
)
(139,693
)
Total equity attributable to SSR Mining shareholders
 
974,205

1,000,885

Non-controlling interest
 
22,087

23,043

Total equity
 
996,292

1,023,928

Total liabilities and equity
 
1,503,717

1,537,454

The accompanying notes are an integral part of the Condensed Consolidated Interim Financial Statements

Approved by the Board of Directors and authorized for issue on November 8, 2018

"Richard D. Paterson"
 
"Paul Benson"
Richard D. Paterson, Director
 
Paul Benson, Director

SSR Mining Inc.
Interim Financial Statements Q3 2018 | 3


Condensed Consolidated Interim Statements of Income
SSR Mining Inc.
(expressed in thousands of United States dollars, except for per share amounts)



 
Note
Three months ended September 30,
 
Nine months ended September 30,
 
 
 
2018

2017

2018

2017

 
 
$

$

$

$

Revenue
6
115,033

106,005

316,963

340,892

Cost of sales
9
(93,158
)
(83,483
)
(256,654
)
(248,819
)
Income from mine operations
 
21,875

22,522

60,309

92,073

 
 
 
 
 
 
General and administrative expenses
 
(5,985
)
(7,043
)
(20,833
)
(18,225
)
Exploration, evaluation and reclamation expenses
 
(5,670
)
(5,086
)
(12,642
)
(16,810
)
Impairment reversal
 
—

—

—

24,357

Operating income
 
10,220

10,393

26,834

81,395

 
 
 
 
 
 
Interest earned and other finance income
 
3,226

1,664

8,559

3,965

Interest expense and other finance costs
 
(8,157
)
(9,428
)
(25,425
)
(25,650
)
Other expenses
 
(830
)
(583
)
(5,474
)
(2,882
)
Foreign exchange gain
 
2,173

129

11,155

3,823

Income before income tax
 
6,632

2,175

15,649

60,651

Income tax expense
 
(4,404
)
(354
)
(13,136
)
(6,035
)
Net income

2,228

1,821

2,513

54,616

Attributable to:
 
 
 
 
 
Equity holders of SSR Mining
 
6,374

1,067

9,865

53,433

Non-controlling interests
 
(4,146
)
754

(7,352
)
1,183

 
 
 
 
 
 
Net income per share attributable to equity holders of SSR Mining
 
 
Basic
7
$0.05
$0.01
$0.08
$0.45
Diluted
7
$0.05
$0.01
$0.08
$0.44
The accompanying notes are an integral part of the Condensed Consolidated Interim Financial Statements


SSR Mining Inc.
Interim Financial Statements Q3 2018 | 4


Condensed Consolidated Interim Statements of Comprehensive Income (Loss)
SSR Mining Inc.
(expressed in thousands of United States dollars)



 
 
Three months ended September 30,
 
Nine months ended September 30,
 
 
 
2018

2017

2018

2017

 
 
$

$

$

$

Net income
 
2,228

1,821

2,513

54,616

Other comprehensive (loss) income
 
 
 
 
 
Items that will not be reclassified to net income:
 
 
 
 
 
Gain (loss) on marketable securities at FVTOCI, net of tax of $446, $1,346, $6,378 and ($1,638)
 
(1,916
)
(9,483
)
(39,759
)
10,498

Items that may be subsequently reclassified to net income:
 
 
 
 
Unrealized gain (loss) on effective portion of derivative, net of tax of ($209), ($140), $181 and ($256)
 
(187
)
240

(593
)
363

Total other comprehensive (loss) income
 
(2,103
)
(9,243
)
(40,352
)
10,861

Total comprehensive income (loss)
 
125

(7,422
)
(37,839
)
65,477

Attributable to:
 
 
 
 
 
Equity holders of SSR Mining
 
4,271

(8,176
)
(30,487
)
64,294

Non-controlling interests
 
(4,146
)
754

(7,352
)
1,183

The accompanying notes are an integral part of the Condensed Consolidated Interim Financial Statements


SSR Mining Inc.
Interim Financial Statements Q3 2018 | 5


Condensed Consolidated Interim Statements of Changes in Shareholders' Equity
SSR Mining Inc.
(expressed in thousands of United States dollars except for number of shares)



 
Note
Common Shares
Other reserves

Equity component of convertible notes

Deficit

Total equity attributable to equity holders of SSR Mining

Non-controlling interest

Total
equity

 
 
Shares

Amount

 
 
000's

$

$

$

$

$

$

$

Balance, January 1, 2017
 
119,401

1,043,555

(1,014
)
68,347

(209,009
)
901,879

—

901,879

  Exercise of stock options
 
299

2,553

(1,004
)
—

—

1,549

—

1,549

Equity-settled share-based compensation
8
—

—

1,654

—

—

1,654

—

1,654

Recognition of non-controlling interest
 
—

—

(1,341
)
—

—

(1,341
)
18,572

17,231

Funding from non-controlling interest
 
—

—

—

—

—

—

1,166

1,166

Total comprehensive income for the period
 
—

—

10,861

—

53,433

64,294

1,183

65,477

Balance, September 30, 2017
 
119,700

1,046,108

9,156

68,347

(155,576
)
968,035

20,921

988,956

 
 
 
 
 
 
 
 
 
 
Balance, January 1, 2018
 
119,841

1,047,233

24,998

68,347

(139,693
)
1,000,885

23,043

1,023,928

Exercise of stock options
 
391

3,543

(1,326
)
—

—

2,217

—

2,217

Equity-settled share-based compensation
8
—

—

1,590

—

—

1,590

—

1,590

Funding from non-controlling interest
 
—

—

—

—

—

—

6,396

6,396

Total comprehensive income (loss) for the period
 
—

—

(40,352
)
—

9,865

(30,487
)
(7,352
)
(37,839
)
Balance, September 30, 2018
 
120,232

1,050,776

(15,090
)
68,347

(129,828
)
974,205

22,087

996,292

The accompanying notes are an integral part of the Condensed Consolidated Interim Financial Statements

SSR Mining Inc.
Interim Financial Statements Q3 2018 | 6


Condensed Consolidated Interim Statements of Cash Flows
SSR Mining Inc.
(expressed in thousands of United States dollars)



 
Note
Three months ended September 30,
 
Nine months ended September 30,
 
 
 
2018

2017

2018

2017

 
 
$

$

$

$

Cash flows from operating activities
 
 

 

 
 
Net income for the period
 
2,228

1,821

2,513

54,616

Adjustments for:
 
 

 

 
 
Depreciation, depletion and amortization
 
29,126

24,206

77,829

72,911

Net finance expense
 
4,536

7,120

15,649

19,903

Impairment reversal
 
—

—

—

(24,357
)
Income tax expense
 
4,404

354

13,136

6,035

Non-cash foreign exchange (gain) loss
 
(2,874
)
459

(14,804
)
996

Net changes in non-cash working capital items
11
7,621

5,979

(8,649
)
(8,923
)
Other items impacting operating activities
11
1,299

1,157

6,702

4,932

Cash generated by operating activities before interest and taxes
 
46,340

41,096

92,376

126,113

Moratorium paid
 
(1,162
)
(1,909
)
(4,563
)
(7,323
)
Interest paid
 
(4,889
)
(6,294
)
(12,317
)
(12,895
)
Income taxes paid
 
(4,915
)
(2,601
)
(11,983
)
(6,345
)
Cash generated by operating activities
 
35,374

30,292

63,513

99,550

Cash flows from and used in investing activities
 
 

 

 
 
Purchase of plant and equipment
 
(36,995
)
(8,864
)
(57,150
)
(24,871
)
Capitalized stripping costs
 
(2,529
)
(6,056
)
(6,281
)
(17,152
)
Underground mine development costs
 
(1,812
)
(1,314
)
(6,164
)
(5,994
)
Chinchillas project costs
 
(13,566
)
—

(41,386
)
—

Capitalized exploration costs
 
(3,681
)
(1,211
)
(10,902
)
(4,129
)
Chinchillas option exercise payment, net of cash acquired
 
—

—

—

(12,972
)
Net proceeds from sale of marketable securities
 
—

54,397

63,445

54,397

Interest received
 
2,581

1,081

6,618

2,551

Other
 
(19
)
537

(1,083
)
2,309

Cash (used in) generated by investing activities
 
(56,021
)
38,570

(52,903
)
(5,861
)
Cash flows from financing activities
 
 

 

 
 
Proceeds from exercise of stock options
 
11

608

2,217

1,493

Funding from non-controlling interests
 
2,438

1,166

6,396

1,166

Cash generated by financing activities
 
2,449

1,774

8,613

2,659

Effect of foreign exchange rate changes on cash and cash equivalents
 
(933
)
(141
)
(4,576
)
550

(Decrease) increase in cash and cash equivalents
 
(19,131
)
70,495

14,647

96,898

Cash and cash equivalents, beginning of period
 
493,642

353,530

459,864

327,127

Cash and cash equivalents, end of period
 
474,511

424,025

474,511

424,025

The accompanying notes are an integral part of the Condensed Consolidated Interim Financial Statements

SSR Mining Inc.
Interim Financial Statements Q3 2018 | 7


Notes to the Condensed Consolidated Interim Financial Statements
SSR Mining Inc.
(tabular amounts expressed in thousands of United States dollars unless otherwise stated)


1.
NATURE OF OPERATIONS

SSR Mining Inc. ("we", "us", "our" or "SSR Mining") is a company incorporated under the laws of the Province of British Columbia, Canada and our shares are publicly listed on the Toronto Stock Exchange in Canada and the NASDAQ Global Market in the United States. Together with our subsidiaries, we (the “Group”) are principally engaged in the operation, acquisition, exploration and development of precious metal resource properties located in the Americas. We have three producing mines and a portfolio of precious metal dominant projects located throughout the Americas. SSR Mining Inc. is the ultimate parent of the Group.

Our address is Suite 800, 1055 Dunsmuir Street, PO Box 49088, Vancouver, British Columbia, V7X 1G4.

Our focus is on safe, profitable gold and silver production from our Marigold mine in Nevada, U.S., Seabee Gold Operation in Saskatchewan, Canada and our 75% owned Puna Operations in Jujuy, Argentina, and to advance, as market and project conditions permit, our other principal development projects towards development and commercial production.


2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of these condensed consolidated interim financial statements are set out below.

a)
Basis of preparation
These condensed consolidated interim financial statements should be read in conjunction with our audited consolidated financial statements for the year ended December 31, 2017.

These condensed consolidated interim financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") applicable to the preparation of interim financial statements, including IAS 34, Interim Financial Reporting, and do not include all the information required for full annual financial statements. The comparative information has also been prepared on this basis.

These statements were authorized for issue by our Board of Directors on November 8, 2018.

b)
Change in accounting policies
We have adopted the requirements of IFRS 15 Revenue from Contracts with Customers (“IFRS 15”) as of January 1, 2018. IFRS 15 covers principles that an entity shall apply to report useful information to users of financial statements about the nature, amount, timing, and uncertainty of revenue and cash flows arising from a contract with a customer. We elected to apply IFRS 15 using a modified retrospective approach by recognizing the cumulative effect of initially adopting IFRS 15 as an adjustment to the opening balance sheet at January 1, 2018. Therefore, the comparative information has not been restated and continues to be reported under IAS 18 Revenue. The details of accounting policy changes and the quantitative impact of these changes are described below.

Gold doré and bullion sales

IFRS 15 requires that revenue from contracts with customers be recognized upon the transfer of control over goods or services to the customer. The recognition of revenue upon transfer of control to the customer is consistent with our revenue recognition policy as set out in Note 2(f) to our audited consolidated financial statements for the year ended December 31, 2017, as the condition is satisfied on gold doré and bullion sales when title transfers to the customer. Accordingly, upon adoption, this requirement under IFRS 15 resulted in no impact to our financial statements, as the timing of revenue recognition on our gold bullion sales is unchanged.


SSR Mining Inc.
Interim Financial Statements Q3 2018 | 8


Notes to the Condensed Consolidated Interim Financial Statements
SSR Mining Inc.
(tabular amounts expressed in thousands of United States dollars unless otherwise stated)

2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Concentrate sales

We performed an assessment of our existing concentrate sales agreements and determined that there is no change in the timing of revenue recognition under IFRS 15. The point of transfer of risks and rewards and transfer of control for concentrate sales occur at the same time. IFRS 15 identifies that the shipping component associated with certain concentrate sales may be a separate performance obligation, which would require a portion of the revenue to be deferred and recognized as the obligation is fulfilled. We have determined that the deferred revenue would be insignificant and thus, have not accounted for the shipping component as a separate performance obligation.

IFRS 15 does not consider changes in the fair value of the concentrate receivable measured at fair value through profit and loss as revenue from contracts with customers. Accordingly, we have separately presented the changes as other revenue in Note 6.

c)
Significant accounting judgments and estimates
The preparation of financial statements requires the use of assumptions, judgments and/or estimates that affect the amounts reported and disclosed in the consolidated financial statements and related notes. These assumptions, judgments and estimates are based on management’s best knowledge of the relevant facts and circumstances, having regard to previous experience, but actual results may differ materially from the amounts included in the financial statements. The significant judgments and estimates applied in the preparation of the unaudited condensed consolidated interim financial statements for the three and nine months ended September 30, 2018 are consistent with those applied and disclosed in Note 2(u) to our audited consolidated financial statements for the year ended December 31, 2017.


3.
INVENTORY

 
September 30, 2018

December 31, 2017

 
$ 

$

Current:
 
 
Finished goods
18,577

19,262

Stockpiled ore
4,190

6,806

Leach pad inventory
159,492

128,783

Materials and supplies
32,415

27,730

 
214,674

182,581

Non-current materials and supplies
2,457

3,973

 
217,131

186,554


As at September 30, 2018, we have total provisions of $4,625,000 (December 31, 2017 - $7,250,000) for supplies inventory that we no longer expect to utilize.









SSR Mining Inc.
Interim Financial Statements Q3 2018 | 9


Notes to the Condensed Consolidated Interim Financial Statements
SSR Mining Inc.
(tabular amounts expressed in thousands of United States dollars unless otherwise stated)

4.
TRADE AND OTHER PAYABLES

 
September 30, 2018

December 31, 2017

 
$

$

Trade payables
26,277

16,740

Accrued liabilities
35,511

29,574

Accrued royalties
5,282

6,276

Income taxes payable
8,832

4,385

Accrued interest on convertible notes
1,258

3,178

 
77,160

60,153




5.
PROVISIONS

 
September 30, 2018
 
December 31, 2017
 
 
Current

Non-current

Current

Non-current

 
$

$

$

$

Moratorium (1)
4,608

13,725

9,085

36,952

Close down and restoration provision
337

58,784

978

57,352

Other provisions
6

—

1,250

—

 
4,951

72,509

11,313

94,304


(1) 
We entered into a fiscal stability agreement with the Federal Government of Argentina in 1998 for production from Puna Operations' Pirquitas mine. In December 2007, the National Customs Authority of Argentina (Dirección Nacional de Aduanas) ("Customs") levied an export duty of approximately 10% from concentrate for projects with fiscal stability agreements pre-dating 2002 and Customs had asserted that Puna Operations was subject to this duty. We had previously challenged the legality of the export duty applied to silver concentrate from that date until the duty was removed in February 12, 2016.

On March 31, 2017, we entered into the tax moratorium system in Argentina to resolve the export duty dispute. Under the conditions of the moratorium, which converted the export duty liability to Argentine pesos ("ARS"), we agreed to pay ARS 1,057,444,000 ($68,621,000 undiscounted) with a 5% down payment initially and the balance in installments over 60 months. Outstanding ARS amounts are subject to interest at a minimum rate of 1.5% per month.

With our entry into the tax moratorium for resolution of our export duty dispute, we are no longer challenging the legality of the application of the export duty as implemented in December 2007 other than with respect to our right for reimbursement of the $6,646,000 of export duty that we paid.



6.
REVENUE

 
Three months ended September 30,
 
Nine months ended September 30,
 
 
2018

2017

2018

2017

Gold doré and bullion sales
107,118

76,882

277,259

263,224

Concentrate sales
9,237

30,425

42,326

76,747

Other revenue
(1,322
)
(1,302
)
(2,622
)
921

 
115,033

106,005

316,963

340,892



SSR Mining Inc.
Interim Financial Statements Q3 2018 | 10


Notes to the Condensed Consolidated Interim Financial Statements
SSR Mining Inc.
(tabular amounts expressed in thousands of United States dollars unless otherwise stated)

7.
INCOME PER SHARE

The calculations of basic and diluted income per share are based on the following:
 
Three months ended September 30,
 
Nine months ended September 30,
 
 
2018

2017

2018

2017

Net income
2,228

1,821

2,513

54,616

Net (loss) income attributable to non-controlling interests
(4,146
)
754

(7,352
)
1,183

Net income attributable to equity holders of SSR Mining
6,374

1,067

9,865

53,433

 
 
 
 
 
Net income used in the calculation of diluted net income per share
6,374

1,067

9,865

53,433

 
 
 
 
 
Weighted average number of common shares issued (thousands)
120,233

119,591

120,064

119,512

Adjustments for dilutive instruments:
 
 
 
 
Stock options (thousands)
742

952

785

1,190
Weighted average number of common shares for diluted income per share (thousands)
120,975

120,543

120,849

120,702

 
 
 
 
 
Basic net income per share attributable to equity holders of SSR Mining
$0.05
$0.01
$0.08
$0.45
Diluted net income per share attributable to equity holders of SSR Mining
$0.05
$0.01
$0.08
$0.44


8.
SHARE-BASED COMPENSATION

Total share-based compensation, including all equity and cash-settled arrangements, for the three and nine months ended September 30, 2018 and 2017 has been recognized in the condensed consolidated interim financial statements as follows:
 
Three months ended September 30,
 
Nine months ended September 30,
 
 
2018

2017

2018

2017

 
$

$

$

$

Equity-settled
 
 


Cost of inventory
36

54

125

137

General and administrative expenses
543

407

1,436

1,487

Exploration, evaluation and reclamation expenses
9

11

29

30

Cash-settled
 
 


Cost of inventory
194

351

730

(1,155
)
General and administrative expenses
39

1,447

3,750

4,736

Exploration, evaluation and reclamation expenses
14

22

42

(24
)
 
835

2,292

6,112

5,211



SSR Mining Inc.
Interim Financial Statements Q3 2018 | 11


Notes to the Condensed Consolidated Interim Financial Statements
SSR Mining Inc.
(tabular amounts expressed in thousands of United States dollars unless otherwise stated)

9.
OPERATING SEGMENTS

The following is a summary of the reported amounts of income or loss, and the carrying amounts of assets and liabilities by operating segment:
Three months ended September 30, 2018
Marigold mine

Seabee Gold Operation

Puna Operations (i)

Exploration and evaluation properties

Other reconciling items (ii)

Total

 
$ 

$ 

$

$

$

$

Revenue
71,848

35,270

7,915

—

—

115,033

Cost of inventory
(42,328
)
(12,993
)
(9,877
)
—

—

(65,198
)
Depletion, depreciation and amortization
(16,266
)
(11,216
)
(478
)
—

—

(27,960
)
Income (loss) from mine operations
13,254

11,061

(2,440
)
—

—

21,875

 
—

—

—

 
 
 
Exploration, evaluation and reclamation expenses
(165
)
(2,328
)
(38
)
(499
)
(2,640
)
(5,670
)
Operating income (loss)
11,675

7,873

(4,190
)
(501
)
(4,637
)
10,220

Income (loss) before income tax
7,408

8,032

(3,684
)
(456
)
(4,668
)
6,632

 
 
 
 
 
 
 
As at September 30, 2018
 
 
 
 
 
 
Total assets
470,096

443,602

150,486

71,370

368,163

1,503,717

Non-current assets
234,803

328,371

98,408

68,726

20,464

750,772

Total liabilities
(77,359
)
(93,174
)
(65,453
)
(6,519
)
(264,920
)
(507,425
)

Three months ended September 30, 2017
Marigold
mine

Seabee Gold Operation

Puna Operations (i)

Exploration and evaluation properties

Other reconciling items (ii)

Total

 
$

$

$

$

$

$

Revenue
49,395

27,652

28,958

—

—

106,005

Cost of inventory
(26,507
)
(13,799
)
(20,445
)
—

—

(60,751
)
Depletion, depreciation and amortization
(11,699
)
(10,210
)
(1,928
)
—

—

(23,837
)
Restructuring costs
—

—

1,105

—

—

1,105

Income from mine operations
11,189

3,643

7,690

—

—

22,522

 
—

—

—

 
 
 
Exploration, evaluation and reclamation expenses
(524
)
(1,102
)
(96
)
(3,364
)
—

(5,086
)
Operating income (loss)
10,665

2,540

6,658

(3,570
)
(5,900
)
10,393

Income (loss) before income tax
10,907

2,655

3,028

(7,245
)
(7,170
)
2,175

 
 
 
 
 
 
 
As at September 30, 2017
 
 
 
 
 


Total assets
444,934

419,305

142,676

74,021

418,284

1,499,220

Non-current assets
227,906

353,176

46,764

95,367

849

724,062

Total liabilities
(75,913
)
(89,065
)
(84,639
)
(10,924
)
(249,723
)
(510,264
)






SSR Mining Inc.
Interim Financial Statements Q3 2018 | 12


Notes to the Condensed Consolidated Interim Financial Statements
SSR Mining Inc.
(tabular amounts expressed in thousands of United States dollars unless otherwise stated)

9.
OPERATING SEGMENTS (Continued)
Nine months ended September 30, 2018
Marigold mine

Seabee Gold Operation

Puna Operations (i)

Exploration and evaluation properties

Other reconciling items (ii)

Total

 
$

$

$

$

$

$

Revenue
188,402

88,857

39,704

—

—

316,963

Cost of inventory
(105,067
)
(35,189
)
(40,680
)
—

—

(180,936
)
Depletion, depreciation and amortization
(43,177
)
(30,140
)
(2,401
)
—

—

(75,718
)
Income (loss) from mine operations
40,158

23,528

(3,377
)
—

—

60,309

 
—

—

—

 
 
 
Exploration, evaluation and reclamation expenses
(448
)
(6,266
)
(674
)
(2,203
)
(3,051
)
(12,642
)
Operating income (loss)
35,796

15,292

(9,020
)
(2,205
)
(13,029
)
26,834

Income (loss) before income tax
23,125

13,623

(5,104
)
(2,176
)
(13,819
)
15,649


Nine months ended September 30, 2017
Marigold
mine

Seabee Gold Operation

Puna Operations (i)

Exploration and evaluation properties

Other reconciling items (ii)

Total

 
$

$

$

$

$

$

Revenue
185,608

77,762

77,522

—

—

340,892

Cost of inventory
(93,423
)
(37,218
)
(50,682
)
—

—

(181,323
)
Depletion, depreciation and amortization
(38,296
)
(27,824
)
(6,249
)
—

—

(72,369
)
Export duty
—

—

4,303

—

—

4,303

Restructuring costs
—

—

570

—

—

570

Income from mine operations
53,889

12,720

25,464

—

—

92,073

 
—

—

—

 
 
 
Exploration, evaluation and reclamation expenses
(1,529
)
(3,922
)
(3,689
)
(7,398
)
(272
)
(16,810
)
Impairment reversal
—

—

24,357

—

—

24,357

Operating income (loss)
52,313

8,798

44,613

(8,021
)
(16,308
)
81,395

Income (loss) before income tax
52,281

8,800

39,470

(11,607
)
(28,293
)
60,651


(i) Following the formation of the joint venture with Golden Arrow Resources Corporation ("Golden Arrow") on May 31, 2017, the Pirquitas property was combined with the Chinchillas project into the Puna Operations operating segment. We fully consolidate Puna Operations, which includes non-controlling interest portion of revenues, and (loss) income from mine operations for three months ended September 30, 2018 of $2,060,000 and ($463,000), respectively (September 30, 2017: $7,020,000 and $1,892,000, respectively), and the nine months ended September 30, 2018 of $9,553,000 and ($935,000), respectively (September 30, 2017: $9,466,000 and $2,544,000, respectively).

(ii) Other reconciling items refer to items that are not reported as part of segment performance as they are managed on a corporate basis.

SSR Mining Inc.
Interim Financial Statements Q3 2018 | 13


Notes to the Condensed Consolidated Interim Financial Statements
SSR Mining Inc.
(tabular amounts expressed in thousands of United States dollars unless otherwise stated)

10.
FAIR VALUE MEASUREMENTS

Assets and liabilities that are held at fair value are categorized based on a valuation hierarchy as follows:
 
Fair value at September 30, 2018
Fair value at December 31, 2017
 
Level 1

Level 2

Level 3

Total

Level 1

Level 2

Level 3

Total

 
$ 

$

$

$

$ 

$

$

$

Recurring measurements
 
 
 
 
 
 
 
 
Trade receivables
—

2,480

—

2,480

—

14,848

—

14,848

Marketable securities
6,714

—

—

6,714

114,001

—

—

114,001

Derivative assets
—

255

—

255

—

1,287

—

1,287

Other financial assets
—

—

3,784

3,784

—

—

6,338

6,338

Accrued liabilities
—

(9,464
)
—

(9,464
)
—

(10,009
)
—

(10,009
)
 
6,714

(6,729
)
3,784

3,769

114,001

6,126

6,338

126,465

 
 
 
 
 
 
 
 
 
Non-recurring measurements
 
 
 
 
 
 
 
 
Deferred consideration
—

—

—

—

—

—

7,399

7,399

 
—

—

—

—

—

—

7,399

7,399

 
 
 
 
 
 
 
 
 
Fair values disclosed
 
 
 
 
 
 
 
 
Convertible notes
(260,198
)
—

—

(260,198
)
(259,578
)
—

—

(259,578
)
 
(260,198
)
—

—

(260,198
)
(259,578
)
—

—

(259,578
)

There were no transfers between Level 1 and Level 2 fair value measurements. During the nine months ended September 30, 2018, there were no transfers into or out of Level 3 fair value measures.


11.
SUPPLEMENTAL CASH FLOW INFORMATION

Changes in working capital items during the three and nine months ended September 30, 2018 and 2017 are as follows:
 
Three months ended September 30,
 
Nine months ended September 30,
 
 
2018

2017

2018

2017

 
$ 

$

$

$

Trade and other receivables
(172
)
7,814

1,001

17,293

Inventory
(3,933
)
1,948

(28,919
)
(6,427
)
Trade and other payables
11,795

(3,519
)
20,162

(12,335
)
Provisions
(69
)
(264
)
(893
)
(7,454
)
 
7,621

5,979

(8,649
)
(8,923
)


SSR Mining Inc.
Interim Financial Statements Q3 2018 | 14


Notes to the Condensed Consolidated Interim Financial Statements
SSR Mining Inc.
(tabular amounts expressed in thousands of United States dollars unless otherwise stated)

11.
SUPPLEMENTAL CASH FLOW INFORMATION (Continued)

Adjustments for non-cash other operating activities during the three and nine months ended September 30, 2018 and 2017 are as follows:
 
Three months ended September 30,
 
Nine months ended September 30,
 
 
2018

2017

2018

2017

 
$ 

$

$

$

Share-based payments
588

472

1,590

1,654

Export duty adjustment in cost of sales
—

—

—

(4,303
)
Change in estimate of close down and restoration provision
—

—

—

3,577

Write down of fixed assets
—

133

2,771

976

Other
711

552

2,341

3,028

 
1,299

1,157

6,702

4,932



Non-cash investing and financing transactions conducted during the three and nine months ended September 30, 2018 and 2017 are as follows:
 
Three months ended September 30,
 
Nine months ended September 30,
 
 
2018

2017

2018

2017

 
$ 

$

$

$

Transfer of share-based payment reserve upon exercise of stock options
(7
)
(358
)
(1,326
)
(1,004
)
Shares received from sale of mineral properties
205

323

1,751

1,992

 
198

(35
)
425

988




SSR Mining Inc.
Interim Financial Statements Q3 2018 | 15