SSR MINING INC.SSRM

SSR MINING INC. Leases Disclosure

10-KFiled Feb 17, 20263 min read
LEASES
The Company’s operating leases consist primarily of leases for office space, vehicles, and plant and mining equipment. These leases have a range of terms between three years to thirteen years with renewal terms included in the contracts. Some are automatic renewals, and some are at the option of the Company. There are no restrictions placed upon the lessee by entering into these leases.
The Company's principal finance lease relates to its right to use the oxygen plant supplied by Air Liquide Gaz Sanayi ve Ticaret A.S. (the “Air Liquide Plant”) at Çöpler. The Air Liquide Plant is used for the production, transportation and delivery of oxygen and liquid oxygen to support mining operations at Çöpler. Under the terms of the Air Liquide Plant lease, the Company pays variable monthly lease payments that depend on an index. In addition, the Company is subject to variable payments based on consumption and use which have been accounted for as non-lease components and included in Cost of sales. The Air Liquide Plant lease contains a non-cancellable period of 15 years ending in 2033 with options to extend for consecutive 2-year periods. The lease term used in the measurement of the Company's lease liability and right-of-use asset includes four consecutive 2-year extension periods ending in 2038 for which the Company is reasonably certain to exercise its option in line with the Çöpler LOM.
The components of the Company’s leases presented in the Consolidated Balance Sheets were as follows (in thousands):
December 31,
20252024
Finance lease right-of-use assets, net (included in Mineral properties, plant and equipment, net)
$
73,293 
$
78,863 
Operating lease right-of-use assets (included in Other non-current assets)
16,902 18,455 
Total lease right-of-use-assets
$90,195 $97,318 
 
    
Short-term finance lease liabilities (included in Finance lease liabilities)
$
6,757 
$
4,792 
Short-term operating lease liabilities (included in Accrued liabilities and other)
2,661 1,657 
Long-term finance lease liabilities (included in Finance Lease liabilities)
 76,344  81,373 
Long-term operating lease liabilities (included in Other non-current liabilities)
 17,409  19,349 
Total lease liabilities
$103,171 $107,171 
The components of the Company’s leases presented in the Consolidated Statements of Operations for the years ended December 31 were as follows (in thousands):
Year Ended December 31,
202520242023
Operating leases:
Lease expense
$3,657 $3,746 $3,648 
Sublease income
(1,100)(1,081)(958)
     
Finance leases:
Amortization of lease cost
 
7,295 
 
5,878 
 
5,346 
Interest expense on lease liabilities
3,767 3,934 4,645 
Variable lease cost
 1,189  1,106 367 
Short-term lease cost
4,293 1,828 3,445 
Total$19,101 $15,411 $16,493 
For finance leases, amortization and interest expense is included in Interest expense. For operating leases, lease expense is included in Cost of sales for entities with production and General and administrative expense for corporate entities.
The components of the Company’s leases presented in the Consolidated Statements of Cash Flows for the years ended December 31 were as follows (in thousands):
Year Ended December 31,
202520242023
Operating leases within cash flows from operating activities
$
2,557 $2,665 $2,690 
Finance leases within cash flows from financing activities
$
4,936 $4,581 $3,870 
Finance leases within cash flows from operating activities
$
4,956 $4,318 $5,027 

The following is a schedule of weighted-average discount rates used to determine lease liabilities and remaining lease terms for the years ended December 31:
Year Ended December 31,
20252024
Weighted-average remaining lease term - operating leases (in years)8.49.2
Weighted-average remaining lease term - finance leases (in years)12.113.3
Weighted-average discount rate - operating leases7.5 %7.0 %
Weighted-average discount rate - finance leases4.5 %4.5 %
The following is a schedule of future minimum lease payments under noncancellable finance and operating leases as of December 31, 2025 (in thousands):
Operating LeasesFinance Leases
2026
$
3,790 
$
10,276 
20273,597 8,532 
20283,081 8,532 
20292,648 8,532 
20302,058 8,532 
Thereafter11,210 63,241 
Total minimum lease payments
$
26,384 
$
107,645 
Less: amounts representing interest
6,314 24,544 
Present value of net minimum lease payments
20,070 83,101 
Less: current portion of lease liabilities
2,661 6,757 
Long-term lease liabilities  
$
17,409 
$
76,344 

Historical Timeline

Fiscal YearFiled
2025Feb 17, 2026Showing above
2024Feb 18, 2025
2023Feb 27, 2024
2022Feb 22, 2023
2021Feb 23, 2022

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.

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