Aris Mining (US:ARMN)2020-03-31 18:44Financial Data and Key Metrics Changes - In Q4 2019, the company reported record gold production and strong gold prices, leading to an adjusted EBITDA of $147 million, up 43% year-over-year [13][14] - Total revenue for 2019 reached $326 million, a 22% increase from 2018, driven by production growth and higher gold prices [11][14] - The total cash cost was $685 per ounce in Q4, with an average of $661 per ounce for the year, about 3% lower than 2018 [11][12] Business Line Data and Key Metrics Changes - Segovia produced 214,000 ounces of gold in 2019, a 10% increase from the previous year, with a record production of 58,000 ounces in Q4 [9][10] - Marmato's quarterly production increased to 7,000 ounces due to improved head grades [9] - The company processed an average of 1,345 tons per day at Segovia with an average head grade of 16.2 grams per ton in Q4 [9] Market Data and Key Metrics Changes - The increase in spot gold prices in the second half of 2019 significantly contributed to revenue growth [11] - The company expects the recent Colombian peso devaluation to positively impact U.S. dollar equivalent costs for mining operations [12] Company Strategy and Development Direction - The spin-out of Zona Baja mining assets into Caldas Gold Corp. allows the company to focus on underground mine expansion without affecting its capital structure [5][6] - The company plans to continue its drilling program in 2020, targeting 45,000 meters, with a focus on high-priority targets for expansion [28][29] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in handling the COVID-19 situation, noting that production and shipments have not been significantly impacted [17][18] - The company is closely monitoring the situation and adapting response plans, emphasizing the safety of workers [16][17] Other Important Information - The company reported a cash position of $84 million at the end of 2019, which has since increased to about $80 million after recent transactions [15][39] - The company has taken precautionary measures to slow down discretionary CapEx in light of the COVID-19 situation [25][35] Q&A Session Summary Question: Impact of COVID-19 on production guidance - Management indicated that March production was nearly on target, with expectations for April being more challenging, potentially requiring a revision of guidance [20][21] Question: Challenges in turning off and resuming production - Management noted that while the situation is challenging, they have experience in handling similar situations and are optimistic about maintaining operations [22][23] Question: CapEx guidance for the year - Management stated that CapEx would likely be similar to last year but would provide updates as the situation evolves [24][25] Question: Exploration plans for 2020 - The company plans to drill approximately 45,000 meters in 2020, with a focus on high-priority targets, although COVID-19 may impact these plans [27][28] Question: Cash taxes payable in the first half of the year - Management indicated that cash tax payments in the first half of the year would be around $35 million, reflecting increased profitability [30][31] Question: March production performance - Management reported that March production at Segovia was around 17,000 ounces, slightly below target, while Marmato was expected to produce about 2,000 ounces [32][33]