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Aris Mining (ARMN) - 2024 Q4 - Earnings Call Transcript
ARMNAris Mining (ARMN)2025-03-13 15:15
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Financial Data and Key Metrics Changes - In Q4 2024, the company achieved a net income of 22millionandEBITDAof22 million and EBITDA of 67 million, marking a strong quarter with the highest production of 57,364 ounces for the year [5][10] - Gold revenue for Q4 was 148million,a13148 million, a 13% increase compared to Q3, driven by a higher realized gold price of 2,642 per ounce and increased sales volumes [14] - For the full year 2024, adjusted EBITDA totaled 163.1millionandadjustedearningswere163.1 million and adjusted earnings were 55.9 million, or 0.35pershare[15][19]BusinessLineDataandKeyMetricsChanges−Segoviaproduced188,000ouncesofgold,whiletheMarmatoUpperMinecontributed23,000ounces,totaling211,000ouncesfortheyear[10]−InQ4,Segovia′sproductionincreasedby80.35 per share [15][19] Business Line Data and Key Metrics Changes - Segovia produced 188,000 ounces of gold, while the Marmato Upper Mine contributed 23,000 ounces, totaling 211,000 ounces for the year [10] - In Q4, Segovia's production increased by 8% to 51,477 ounces, with a 7% rise in average gold grade processed [11] - The all-in sustaining costs (AISC) at Segovia reduced by 4% to 1,485 per ounce in Q4, despite an 8% increase in realized gold costs [11] Market Data and Key Metrics Changes - The company expects annual production from Segovia to reach between 210,000 to 250,000 ounces in 2025, with a target of 300,000 ounces from 2026 onwards [6][32] - The AISC margin at Segovia reached a three-year high of 58millioninQ4,a3258 million in Q4, a 32% increase from the previous quarter [17][40] Company Strategy and Development Direction - The company is focused on expanding its processing facilities at Segovia and Marmato to increase production capacity, targeting over 500,000 ounces of gold annually once expansions are fully operational [8][30] - The Segovia processing plant expansion is expected to ramp up to 300 tonnes per day by the end of 2025, with a total cost of 15 million for the project [23][28] - The Marmato Lower Mine construction is progressing, with plans to expand processing capacity from 4,000 tonnes per day to 5,000 tonnes per day, aiming for an annual production of 200,000 ounces [25][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong financial position, with a year-end cash balance of 253million,positioningitwellforgrowth[8][40]−Thecompanyremainsfocusedonoperationalefficienciesandcostcontrol,despitethestronggoldpriceenvironment[17][34]OtherImportantInformation−Thecompanygeneratedacashinflowof253 million, positioning it well for growth [8][40] - The company remains focused on operational efficiencies and cost control, despite the strong gold price environment [17][34] Other Important Information - The company generated a cash inflow of 164 million in Q4, including 136millionfromrefinancingbondsand136 million from refinancing bonds and 40 million from a precious metals stream [20] - The total estimated cost to complete the Marmato Lower Mine construction is 365million,withanetconstructioncosttothecompanyof365 million, with a net construction cost to the company of 208 million after considering remaining stream funding [28][29] Q&A Session Summary Question: How long has the company been considering the expansion and why now? - Management indicated that the expansion has been under consideration for over a year, with the decision to reshape plans based on insights gained from the Upper Mine [45][46] Question: What is the expected capital expenditure for this year versus next year for the expansion? - The company forecasts approximately 260millionincapitalexpenditureforthisyear,withanadditional260 million in capital expenditure for this year, with an additional 50 million possible depending on spending [48]