Aris Mining (US:ARMN)2022-05-13 17:00Financial Data and Key Metrics Changes - The company reported first quarter 2022 revenue of $101.3 million, which is approximately 5% higher than the first quarter of 2021 after adjustments [7] - Adjusted EBITDA for the first quarter was $45.2 million, reflecting a slight decrease from $46 million in the same quarter last year [9] - Cash flow metrics remained solid with $24 million of operating cash flow, bringing the trailing 12-month operating cash flow to $91 million, up from $81 million in 2021 [10] - The company finished the quarter with $350 million in cash after paying $14 million in tax installments and making a $10 million interest payment on senior notes [11] Business Line Data and Key Metrics Changes - Gold production for the first quarter was 50,000 ounces, with total production for the first four months of 2022 reaching 68,272 ounces [5] - The average realized gold price was $1,860 per ounce, contributing to the revenue increase [7] - Cash costs were reported at $817 per ounce, an improvement from $825 per ounce in the first quarter of 2021 [8] Market Data and Key Metrics Changes - The company anticipates starting shipments of polymetallic concentrates by the end of the second quarter, which will add to revenue streams [8] - The company is on track to produce between 210,000 and 225,000 ounces of gold from Segovia this year [6] Company Strategy and Development Direction - The company is focused on maintaining its dividend policy, paying C$1.05 per share monthly, totaling US$3.5 million in dividends for the first quarter [5] - Significant investments are being made in infrastructure projects at Segovia, including the expansion of the Maria Dama plant and the construction of the El ChoCho tailings storage facility [13] - The Toroparu Project in Guyana is being prepared for formal construction, with a PFS expected in the third quarter [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to control costs and execution amid volatile financial markets [3] - The upcoming elections in Colombia were discussed, with management noting that the company owns the land and underground rights, which may mitigate potential regulatory risks [18] - Management indicated that they do not foresee any significant delays in the Toroparu project, with sufficient funding available to proceed [30] Other Important Information - The company has been involved in a free trade arbitration with Colombia, which has led to elevated G&A expenses in the first quarter [31] - The company plans to spend approximately $70 million in the second half of the year on the Toroparu project, funded through cash flow and cash on hand [36] Q&A Session Summary Question: Potential impact of upcoming elections in Colombia on the mining industry - Management noted that the elections are closely contested, but the company owns its land and underground rights, which may shield it from adverse regulatory changes [18] Question: Update on the Toroparu project regarding capital costs - Management confirmed that the PFS is expected in July, with a cost estimate of $355 million, but they believe it may be lower due to more detailed information available [21][23] Question: Risks around the finalization of the mining license for Toroparu - Management stated that they are in the process of obtaining the mining permit and do not foresee risks of not receiving it on time [26] Question: Any scenarios for delaying the project due to macroeconomic factors - Management expressed confidence in proceeding with the project, stating they have sufficient funds to continue despite potential cost increases [30] Question: Clarification on G&A expenditures for the quarter - Management indicated that Q1 was unusually high due to arbitration costs, but they expect G&A to stabilize in subsequent quarters [31] Question: Confirmation of CapEx guidance for 2022 - Management confirmed sustaining CapEx guidance of $50 million to $55 million for Segovia and indicated that spending on Toroparu will ramp up significantly in the second quarter [33][36]