Aris Mining (US:ARMN)2021-04-01 16:21Financial Data and Key Metrics Changes - Gran Colombia reported a net loss of $51 million in Q4 2020, leading to a full-year net loss of $27.6 million, impacted by $4 million in financing costs and $52 million in non-cash fair value losses on derivatives [7][8] - Adjusted net earnings for 2020 increased by 25% to $76 million, or $1.28 per share, despite challenges from COVID-19 [8] - Revenue for Q4 2020 was $99.7 million, contributing to a record annual revenue of $391 million, up 20% from 2019 [16] Business Line Data and Key Metrics Changes - Total gold production in 2020 was 220,000 ounces, with 196,000 ounces from Segovia Operations and the remainder from Marmato, which was spun out to Caldas Gold [11][12] - Segovia's head grades averaged 14.5 grams per tonne in 2020, with production adversely impacted by COVID-19 in the early part of the year [12][13] - The small mining supply chain initiative in Segovia saw a 37% increase in gold production, with head grades rising from 6-8 grams per tonne to nearly 12 grams per tonne in Q4 [15] Market Data and Key Metrics Changes - The average realized gold price in 2020 was $1,751 per ounce, up from $1,381 per ounce in 2019, enhancing operating margins and cash flow [16] - Total cash costs at Segovia averaged $699 per ounce in 2020, up from $607 per ounce in 2019, influenced by increased payment rates to contract miners and higher production taxes [17] Company Strategy and Development Direction - The company is focused on expanding the Maria Dama plant to 2,000 tonnes per day and constructing a new concentrate recovery plant to enhance cash flow and reduce environmental impact [13][14] - Gran Colombia plans to conduct 60,000 meters of drilling in 2021, with a budget of approximately $14 million, aimed at resource and reserve expansion [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the high-grade nature of Segovia's gold deposits and is excited about the upcoming drilling programs [22][23] - The company highlighted its commitment to ESG initiatives, with plans to publish its first sustainability report [28][29] Other Important Information - The company has implemented extensive COVID-19 protocols to protect its workforce and has contributed nearly $10 million to local community programs [5][6] - Gran Colombia has a 44.3% equity position in Aris Gold and a 27% equity position in Denarius Silver, indicating a strategic focus on building its equity portfolio [25][26] Q&A Session Summary - No questions were posed during the Q&A session, and the management encouraged follow-up inquiries via email [30][31]