Financial Data and Key Metrics Changes - Gran Colombia Gold reported a significant improvement in financial performance for 2018, achieving record highs in gold production, EBITDA, operating cash flow, and free cash flow [4][7] - Cash position increased to almost $36 million, while debt decreased to $83 million, down from $179 million three years ago [6] - The company’s average cash cost per ounce decreased to $680 from $720 in 2017, with all-in sustaining costs averaging $907 per ounce, slightly better than 2017 [14][15] Business Line Data and Key Metrics Changes - Segovia operations produced 193,000 ounces of gold in 2018, a 30% increase from 2017, driven by a 70% increase in production from the Providencia mine [9][10] - The Sandra K mine also doubled its production in 2018, contributing to overall growth [10] - Marmato produced 25,000 ounces in 2018, with expectations of 24,000 to 26,000 ounces in 2019 [10] Market Data and Key Metrics Changes - The company’s market capitalization reached $185 million, with a total issued share count of 48.3 million [5] - Analysts initiated coverage with target prices of $6 and $5.62, indicating positive market sentiment [5] Company Strategy and Development Direction - The company plans to accelerate exploration in Segovia, aiming to increase reserves and extend mine life [13][20] - Capital expenditures are expected to be between $25 million to $30 million at Segovia and about $1.5 million at Marmato for 2019 [17] - The focus remains on optimizing the mine plan at Segovia and expanding processing capacity [19][20] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the company’s growth trajectory, highlighting a solid foundation for future expansion [6][19] - The company is optimistic about 2019, having already reported close to 40,000 ounces of production in the first two months [8][9] - Management is closely monitoring the situation in Venezuela for potential opportunities [20] Other Important Information - The company completed a bought deal private placement to fund exploration and development projects [19] - Segovia's reserves and resources were updated, adding over 300,000 ounces to mineral resources [12] Q&A Session Summary Question: Will exploration costs be separated in AISC reporting? - Management is analyzing the inclusion of exploration costs in AISC and will provide clarity by the next quarterly report [22][23] Question: What is the status of the arbitration with the Colombian government regarding Marmato? - The arbitration process is ongoing, with confidence in the company’s position and evidence prepared for the tribunal [26][28] Question: How will high-grade mining affect future grades? - Current high grades are due to fortunate mining conditions, but lower grades are expected later; exploration financing aims to sustain high grades [29][30] Question: What are the plans for the Pampa Verde project? - Pampa Verde may be integrated into future projects, particularly in Marmato, with existing equipment potentially utilized [33][37]
Aris Mining (ARMN) - 2018 Q4 - Earnings Call Transcript