Aris Mining (US:ARMN)2026-03-12 14:00Financial Data and Key Metrics Changes - Gold production increased by 22% year-over-year, with gold prices rising by 48%, resulting in gold revenue of $909 million, up 82% from $499 million in 2024 [3][6] - Adjusted EBITDA reached $464 million, a 185% increase from $163 million in 2024, demonstrating significant leverage to higher gold prices [6][3] - Adjusted net earnings were $241 million or $1.28 per share, up from $56 million or $0.35 per share in 2024, reflecting a 265% increase [3][6] - The company generated $127 million in free cash flow, with a cash balance of $392 million at year-end, up from $252 million in 2024 [7][9] Business Line Data and Key Metrics Changes - Segovia produced 228,000 ounces of gold in 2025, a 21% increase compared to 188,000 ounces in 2024, driven by a 17% increase in milling rates [10][11] - Marmato performed steadily and exceeded guidance, with construction of the CIP plant and development in the bulk mining zone ahead of schedule [16][19] - Segovia's all-in sustaining cost (AISC) was $1,534 per ounce, up 3% year-over-year, while total AISC was $1,705 per ounce, up 13% from 2024 [13][14] Market Data and Key Metrics Changes - The company expects production guidance for 2026 to be between 300,000 and 350,000 ounces, representing over 25% growth year-over-year [4] - At $4,400 gold, Segovia is projected to generate $650 million in all-in sustaining margin for the year [5] Company Strategy and Development Direction - The company aims to grow production to 500,000 ounces in the near term, with plans to advance Toroparu and Soto Norte to potentially reach 1 million ounces per year [24] - The transition to the main board of the New York Stock Exchange is expected to enhance visibility among institutional investors and improve trading liquidity [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ramp-up of operations, with expectations to achieve a steady-state run rate of 3,000 tons per day by Q4 2026 [27][28] - The company remains optimistic about achieving milestones for the Marmato project, with a total capital budget of $220 million for 2026 [39][40] Other Important Information - The company completed the Segovia processing plant expansion on time and on budget, and acquired the remaining 49% of Soto Norte for $80 million [24] - The company reported a decrease in total leverage to 1x, which is 2x lower compared to Q4 2024, indicating a strong balance sheet to support growth [23] Q&A Session Summary Question: Update on Segovia ramp-up and throughput expectations - Management indicated that the ramp-up is going well, with expectations to reach a steady-state of 3,000 tons per day by Q4 2026, dependent on underground development [27][28] Question: Guidance for Q1 production - The company is running around 2,600 tons per day at the end of Q4 and expects similar throughput in Q1 [28] Question: Contractor mining partner margin expectations - The company expects contractor mining margins to remain steady, with guidance indicating about 35% contractor mining in the mix [30] Question: Remaining capital expenditures for Marmato - The total capital budget for Marmato in 2026 is $220 million, bringing the total project cost to approximately $400 million [39][40] Question: Optimism about ramp-up of the CIP plant - Management expressed confidence that the milestones for the ramp-up are realistic and achievable [40]