(SSR Mining, 16.Jun.2022) — SSR Mining Inc. (NASDAQ/TSX: SSRM, ASX: SSR) has filed with and received acceptance from the Toronto Stock Exchange (TSX) for a Notice of Intention to make a Normal Course Issuer Bid (“NCIB”) under the requirements of the TSX permitting SSR Mining to purchase for cancellation up to 10,600,000 common shares of the company, representing approximately 5.0% of SSR Mining’s total issued and outstanding Common Shares. As of 6 June 2022 SSR Mining had 212,638,432 issued and outstanding Common Shares.
Rod Antal, President and CEO said, “Building on last year’s peer leading capital returns which exceeded $190mn, our strong free cash flow outlook for 2022 and balance sheet will enable us to continue our robust capital returns program this year. We kicked-off 2022 with a 40% increase to our quarterly dividend to $0.07/share, or approximately $60mn annually. As per our capital allocation framework for returning excess capital to shareholders, we plan on supplementing this quarterly dividend with the recently approved NCIB program.”
SSR Mining believes that the market price of its Common Shares does not always reflect its underlying fundamental value and future growth prospects. SSR Mining’s purchase of its Common Shares under the NCIB will supplement the existing base dividend and is part of its capital allocation framework for returning excess cash to shareholders. Under SSR Mining’s previous Normal Course Issuer Bid, which commenced on 21 April 2021 and terminated on 20 April 2022, the company was authorized the purchase of up to 10,000,000 Common Shares. SSR Mining purchased and cancelled 8,800,700 Common Shares via open market purchases through the facilities of the TSX and the Nasdaq at a weighted average price paid per Common Share of $16.82 for $148.1mn.
SSR Mining may purchase Common Shares under the NCIB over the next twelve-month period beginning 20 June 2022 and ending 19 June 2023. The exact timing and amount of any purchases will depend on market conditions and other factors. SSR Mining is not obligated to acquire any Common Shares and may suspend or discontinue purchases under the NCIB at any time. Any purchases made under the NCIB will be effected through the facilities of the TSX, Nasdaq and/or alternative Canadian and United States trading systems. Any purchases made pursuant to the NCIB will be made in accordance with the rules of the TSX, applicable U.S. securities laws and will be made at market price at the time of purchase. Under the NCIB, other than purchases made under block purchase exemptions, the company may purchase up to 116,057 Common Shares on the TSX during any trading day, such number being 25% of 464,230 Common Shares, which is the average daily trading volume on the TSX for the most recently completed six calendar months prior to the TSX’s acceptance of the notice of the NCIB.
In connection with the NCIB, the company has entered into an automatic share purchase plan with a designated broker (the “ASPP”) which sets certain price thresholds for purchases of Common Shares. The ASPP is intended to allow for the purchase of Common Shares under the NCIB at times when it would ordinarily not be permitted to purchase shares due to regulatory restrictions and customary self-imposed blackout periods. The ASPP is also intended to meet the requirements of a Rule 10b5-1 trading plan under the U.S. Securities Exchange Act of 1934, and transactions under the ASPP, and under the NCIB generally, will be conducted in accordance with Rule 10b-18 under the U.S. Securities Exchange Act of 1934.