Financial Data and Key Metrics Changes - In Q2 2024, the company generated revenue of 219.4 million for the first half of the year, driven by a 12% increase in average realized gold price to 36.1 million, with a total of 18.1 million or 60.6 million in H1 [4][5] - Cash costs per ounce for mine operations were 1,174, with a modest increase of 3% and 11% respectively compared to Q1 2024 [8][9] - The Segovia processing plant expansion is 85% complete, with an expected production capacity of over 300,000 ounces of gold per year post-expansion [10][11] Market Data and Key Metrics Changes - The average realized gold price increased by 12% to 2,061 per ounce in Q1 [14] - The company anticipates cash costs per ounce at Segovia to range between 1,225 for the full year 2024, up from prior guidance of 1,075 [19] Company Strategy and Development Direction - The company is targeting an annual gold production rate of approximately 500,000 ounces in the second half of 2026, supported by ongoing expansion projects at Segovia and Marmato [6][20] - The acquisition of an additional 31% in Soto Norte increased project ownership to 51%, with plans for a new development plan study expected to be completed by early 2025 [6][7] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting the lower end of the full-year production guidance of 220,000 to 240,000 ounces, with expectations of a 30% increase in Segovia's gold production in the second half [18][20] - The company acknowledged inflationary cost pressures but remains optimistic about maintaining stable margins while growing production [19] Other Important Information - The company invested 7.5 million for exploration programs [5][15] - The estimated cost to complete the Marmato lower mine construction is 122 million funded by stream financing [13] Q&A Session Summary Question: What grades should be expected in Q3 and Q4 at Segovia? - Management expects grades to increase from 9.3 grams per ton in Q2 to approximately 10.2 grams per ton towards the end of the year [23][24] Question: How is capital spending at Marmato tracking? - Significant expenditures are expected to ramp up in the second half of the year as the company begins purchasing milling equipment and civil works [25][28] Question: Are there inflationary pressures affecting Marmato development? - Management indicated confidence in the costs tied to equipment and infrastructure, with many costs locked in through prepayments [34][35] Question: What is the current completion status of the Marmato project? - The Marmato project is currently 22% complete, with expectations to remain on schedule [36] Question: What is the breakdown of the remaining capital expenditures for Marmato? - Approximately 250 million is locked into fixed-price contracts, primarily for the mill and process infrastructure [35][40]
Aris Mining (ARMN) - 2024 Q2 - Earnings Call Transcript