Full Year 2024 Aris Mining Corp Earnings Call
Good morning everyone and welcome to the Aris Mining full year 2024 results call we will begin with an overview for management followed by a question and answer period
Arizona, even installed financial reports for the fourth quarter and full year 'twenty 'twenty four on SEDAR and Edgar.
These reports can also be found on the Arris website.
I would now like to turn the conference over to Mr. Neal <unk> Chief Executive Officer. Please go ahead.
Thank you operator and welcome everyone. Thank.
Thank you for joining us for our full year 24 earnings call.
Today I'm joined by members of the management team, including Richard Thomas Rich Silver City, and all of our debt.
We look forward to addressing your questions at the end of the school.
Speaker Change: But before we dive into the results. Please note the cautionary statements on slide two as well.
We're making several forward looking statements today.
Speaker Change: Starting on slide three.
Speaker Change: Pleased to report that Q4 was a strong close.
Speaker Change: Delivering our highest production for the 57364.
Speaker Change: We generated <unk> 2 million of net income and $67 million EBITDA in the fourth quarter.
Speaker Change: A pseudo via reduced Goldman staying close to 14 85.
Speaker Change: And achieved an all in sustaining margin of $58 million, which is a 32% increase over Q3.
Speaker Change: We remain on track to commission the expanded processing facility.
Speaker Change: The second quarter of this year.
But I think thats, a gradual ramp up from 2000 tonnes per day to 3000 tonnes a day throughout the remainder of the year.
Speaker Change: Yes, yes.
Speaker Change: Annual production of 210 to 250000 ounces.
Speaker Change: And in the range of 300000 ounces from $2026.
Speaker Change: We've also been exploring opportunities to scale up my mom says coverage expansion into a high capacity operation.
Speaker Change: While we are upgrading the caliber of processing facility or <unk>.
Speaker Change: 95% to 5000 tonnes per day.
Speaker Change: We're also looking at expanding our CMP business model.
Speaker Change: And the other months location processing facility.
Speaker Change: Together these upgrades and expansions are expected to increase the mottos production potential to more than 200000 ounces.
Richard Thomas: But Richard Thomas if we give more information, but I'll, let dawn presentation.
Richard Thomas: Growing cash flow generation and refinancing of our senior notes in October last year contribution until year end cash balance of $253 million.
Richard Thomas: We are well positioned and Sundays to deliver on our growth strategy.
Richard Thomas: We expect to achieve annual gold production of more than 500000 ounces once.
Richard Thomas: In operations are fully ramped up so.
Richard Thomas: Main plate capacity.
Speaker Change: With that I'll now hand, you over to Richard I'll say CLO.
Richard Thomas: Thank you.
Speaker Change: Moving on.
Speaker Change: For the full year 211000 losses for Mama.
Speaker Change: The bolt ons.
Speaker Change: Good luck.
Speaker Change: As Neil mentioned before.
Speaker Change: And therefore, delivering our highest oil production.
Speaker Change: Yes.
Speaker Change: It's modest.
Speaker Change: Other people will.
Speaker Change: Combined with the 10%.
Speaker Change: Okay.
Speaker Change: 98.
Speaker Change: Lots of adult protection, plus you add for us.
Speaker Change: H E B.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: 8%.
Speaker Change: All in sustaining costs that you saw 4% to 1495.
Speaker Change: Hum.
Please proceed.
Speaker Change: Oh in the mining 170.
Speaker Change: 1000 <unk>.
Speaker Change: Paul.
Speaker Change: Following the 14th <unk>, while contract mindful at the statements enrich the high school.
Speaker Change: And the wholesale margin.
Speaker Change: With that I'll pass on the original Ziggy.
Speaker Change: Actual results in Nevada, Nebraska.
Roger: Thank you Roger.
Roger: Turning to slide five as Neil said at the outset, we had a very strong quarter, especially when compared to the third quarter constantly before.
Roger: Well revenue of 141 was up 13% compared to the third quarter driven by higher realized gold price.
Roger: 742 per ounce and higher quarter over quarter sales volumes, resulting from higher production.
Roger: Also by the revenue growth and a strong focus on cost control.
Roger: From operations increased 42% quarter over quarter of $54 million.
Roger: Net earnings for the fourth quarter were $21 7 million compared to a net loss of $2 one.
Roger: This was primarily due to the increase in income from mine operations as well.
Roger: A $6 6 million on financial instruments, and a platform one way.
Roger: Thanks gain recognized in the quarter.
Roger: Adjusted earnings in the fourth quarter were $24 7 million.
Roger: <unk> per share compared to $13 1 million or eight cents per share per quarter.
Roger: Does that happen.
Roger: $5 6 million in the fourth quarter, a 29% increase quarter over quarter, reflecting the increase in adjusted net earnings.
Roger: Full year 2004, we generated adjusted EBITDA of $163 1 million.
Roger: Adjusted earnings of $55 9 million.
Roger: <unk> per share.
Looking at slide six.
Roger: Like to draw your attention to the graph as mentioned earlier the increase in realized oil price higher production and our continued focus on cost control supported a meaningful expansion of decent margins in the fourth quarter and our school your operation.
Roger: Quarterly net margin reached $358 million up 32% or $44 million in the prior quarter.
Roger: Full year 2024, this ammonia operations generating an EBIT margin of $163 million while.
Roger: While we enjoyed a strong gold price environment, we will remain focused on operational efficiency.
Roger: Hello.
Roger: Now moving on to slide <unk>.
Roger: Like to discuss some key items on our assets.
Roger: For the full year 2024, our goal revenue totaled $499 million and we generated an EBITDA margin of 154.
The adjusted sustained margin.
Speaker Change: Got it and working capital changes.
Speaker Change: Supporting that finally of $157 million of our growth products, including $83 million and our model.
Speaker Change: On the whole are more modest project 65 billion asset all the operation primarily to the processing plant.
Speaker Change: And the underground development and exploration.
Speaker Change: The fourth quarter, our after tax adjustment sustained margin of $49 million more than covered our expansion growth.
Hi.
Speaker Change: <unk> financing activities in the fourth quarter generated a cash inflow.
Speaker Change: 164, including $136 million net proceeds from refinancing the 2026 bonds.
Speaker Change: Our new issue five year.
Speaker Change: Nine months and a $4 million inflow.
Speaker Change: It is not.
Speaker Change: Pertaining to the more modern more around cost.
Speaker Change: We ended the year with a cash balance of 208.
Speaker Change: Up from 195.
Speaker Change: <unk>.
Speaker Change: I will now pass it back to Tom and he'll provide an update on expansion of the scope of processing plant.
Instructions.
Speaker Change: Uh huh.
Speaker Change: Thank you just maybe on slide eight.
Speaker Change: Good question Bobby.
Speaker Change: And as previously discussed one of them together.
The new expanded the TV unit throughout fully.
Speaker Change: Fully commissioned.
Speaker Change: Adult ration and working well.
Speaker Change: And uses.
Speaker Change: Specialty materials are about 10 minutes to Interstate four thanks.
Speaker Change: Okay.
Speaker Change: Whoa.
Speaker Change: Therefore conducted the seating area underway initially expected imported U S.
Speaker Change: Following the ramp up period.
Speaker Change: That's net of about 300 tons per day by the end of things Bob.
Speaker Change: 200, and 250000 basketballs, we take between spot and in the range of 300000 months of adult <unk>.
Speaker Change: Onward.
Speaker Change: Jamie.
Speaker Change: The total cost altogether. This processing plant expansion project is estimated at $50 million and yet and at the end of the year last year.
Speaker Change: $5 million.
Let's move on to slide <unk>.
Speaker Change: I'd like to provide an update on the construction.
Speaker Change: That's my motto.
Speaker Change: As you can see from the subject often less lost the concession at level. One continues to advance with 50 exercise Mommas addresses facility and the foundation here.
Speaker Change: Yes.
Speaker Change: So it can be defended.
Speaker Change: 200, we just compete.
Speaker Change: By the end of <unk>.
Speaker Change: And the presence.
Speaker Change: In Bond Foundation ethics processing digital is at the end of things.
Bob: Hey, Bob.
Bob: At the beginning of this year, we initiated engineering assistance to evaluate whether we could expand the box.
And is it the current thoughts.
Bob: Yes, My section as the results of this study we have decided to extend the CRB prices.
Bob: On both of them to date.
Bob: The standard path.
Bob: They are also expanding in CMP business model.
Bob: Pete and image.
Bob: Existing monetization.
Bob: Third increasing gold production.
Bob: With the completion of these expansions the statement a module.
Bob: And the range of 200000.
Bob: Yes.
Bob: Bob Marley mate.
Bob: Yeah.
Bob: Yes.
Bob: We've just about 10 days.
Bob: As you can see from the joined on this loss.
Bob: Two class take the throughput from both candidates Farquhar.
Bob: Straightforward.
Bob: Upgraded pop up in terms of the design will use 90 complaints from the tenant.
Speaker Change: Good day.
While also integrating deposit base.
Speaker Change: Installing second discussion units, adding additional leach tanks to support increased throughput and accelerating certain project comes in each of the initial technical base.
Speaker Change: We expect this trend up to begin <unk>.
Speaker Change: Thanks.
Speaker Change: Moving on to slide 11, and the CPP.
Speaker Change: We have seen $75 million on those subjects.
Speaker Change: Estimated cost to complete the bottom section.
Speaker Change: The people from both onto Bothers us today is $290 million.
Speaker Change: The total cost.
Speaker Change: Yeah.
Speaker Change: Thank you Bob.
Speaker Change: Some sections that.
Speaker Change: This is Bob.
Speaker Change: Can be a box required before the <unk>.
Speaker Change: In tobacco.
Speaker Change: Hum.
Speaker Change: As Ed mentioned.
Speaker Change: We have also opted to both X 80 million.
Speaker Change: Good color.
Speaker Change: Relying on the third party power purchase agreements.
Speaker Change: Prejudice punch monster.
Speaker Change: Yes, 90 integrate these components.
Speaker Change: And in each of these pages.
Children like fixed costs around the basket.
Speaker Change: Importantly, this transaction is.
Speaker Change: 208.
Speaker Change: The remaining <unk>.
Speaker Change: $2 million.
Speaker Change: Users.
Speaker Change: The effective investment proposition being able to meaningfully increase production of a loan loss.
Dennis.
Speaker Change: Ltd.
Speaker Change: Okay, Thanks, Bob before hydro.
Speaker Change: Looking ahead to the human water essentially together yet.
Speaker Change: With annual production of more than 500.
Speaker Change: With debt tender.
Speaker Change: <unk>.
Speaker Change: Thank you Richard turning to slide 12, I'd like to summarize our previously disclosed guidance for 2021.
Speaker Change: Erez might expect consolidated gold production of between 230 to 275000 pounds.
Speaker Change: In 2025.
Speaker Change: Progress expansion project to contribute to production growth in 2025 and beyond.
Speaker Change: With 2020, but gold production expected to range between 210 to 250000 ounces and I'll say Tobey operations.
Speaker Change: We anticipate a significant increase in <unk> all in sustaining cost margin this year of more than $230 million U S dollars using the midpoint of our 2020 guidance range GAAP guidance ranges at a gold price of 2000 and $600 per ounce.
Speaker Change: This compares to an all in sustaining cost margin of 163 million U S. Dollar to go get into F. 'twenty.
Speaker Change: <unk>.
Speaker Change: In 2010 five production in some of this is all the operations will be sourced approximately 50% to 55% for all of the money at 45% to 60% for mill feed purchased from contract mining partners.
Speaker Change: For the oil mining segment, all in sustaining cost per ounce sold is expected to range between.
Speaker Change: 14, 15 to $1600 per ounce and the CMP segment is expected to achieve an all in sustaining cost sales margin.
Speaker Change: That's a 40%.
Speaker Change: The 2025 cash costs and all in sustaining cost guidance has been provided separately for the two segments all of our mines.
Speaker Change: Given this team's.
Speaker Change: Primary cost side, that's all the mining costs are primarily driven by conventional expense expenses, such as labor consumables, such as explosives appeal empower.
In contrast, CMT costs, mainly influenced by the cost of purchasing more feet, which depends on material volume, but comparable ball grid and to spot gold price.
Speaker Change: Distinguishing between all online and CMP cost metrics as necessary.
Speaker Change: The current price of oil prices.
Speaker Change: The challenge in forecasting CMP costs as a result, we believe the CMT segment.
Speaker Change: As presented on our sales margin basis.
Speaker Change: A clearer presentation of its financial performance.
Speaker Change: The motto up the mine produced 23000 ounces in 2024, and a similar production levels expected for 2025, while the construction of the new large scale online, which will access one porphyry mineralization continues.
Speaker Change: Erez Mani, we resume providing cash cost and all in sustaining cost guidance for the master mind, whether the lower mine achieved commercial production.
Speaker Change: Now, especially for our credit investors on the line slide 13 highlights the summer.
Speaker Change: Our balance sheet.
Speaker Change: Strong liquidity of 253 million U S dollars.
Speaker Change: Low net leverage of one five times.
Speaker Change: Significant near term debt maturities and a solid equity cushion sitting below all of that as evidenced by our gearing ratio and <unk>.
Speaker Change: Ultimately total and net leverage ratios have already started shutting down compared to when we issued our 2029 bonds in October last year from three one times and one seven times respectively.
Neil: I'd now like to hand, the call back to Neil to conclude our prepared remarks.
Neil: Thank you Oliver we now move to slide 14.
But before we open the Q&A session I'd like to summarize key takeaways that we reported for this fourth quarter and for the full year.
Neil: In Q4, we recorded our highest quarterly production.
Neil: 57000 ounces.
Neil: We expect total production in 2025 to range between 230, 275000 ounces, which is up from 211000 last year.
Neil: We see meaningful margin expansion as evidenced by our corporate all in sustaining cost margin of $58 million in Q4 increased <unk>.
Neil: 32% over the prior quarter.
Neil: We're in a strong financial position with cash balance of $253 million 82 billion still to be funded by week and with my motto stream and growing cash generation from to go get.
Neil: To close Arris mining is on track to more than double underproduction to 500000 ounces and we have the means and the team to deliver that growth.
With that we look forward to your questions and I'd like to turn the call back to the operator to open the line for questions.
Neil: Thank you.
Neil: Joining the question queue you May Press Star then one on your telephone keypad.
Neil: You will hear a tone acknowledging your request.
Neil: If youre using a speakerphone please pick up your handset before pressing lending teams.
Neil: We withdraw your question. Please press Star then two.
Speaker Change: Today's first question comes from Kerry Mercury with Canaccord Genuity. Please go ahead.
Kerry Mercury: Hi, Good morning, guys. Just wondering if you could give us some color on how long you've been thinking about this expansion and sort of why now I guess.
Kerry Mercury: I think we've been thinking about the expansion.
Kerry Mercury: For well over a year when we started construction we were following the plan with the speed at which new set up by S. Okay, and then going off of that.
Kerry Mercury: That plan makes sense to us.
Kerry Mercury: So to me it would be up a viable we realized two things.
Kerry Mercury: Not to achieve the performance as it had originally been anticipated.
Kerry Mercury: Huge potential for with small miners. So we started to reshape up quickly on the basis of our lessons is limited to 2 million tons.
Kerry Mercury: As to whether we can increase the more profitable tariff some of my remarks, I would be thinking about it for some time.
Kerry Mercury: We've got a switch strip takes place beginning of this year.
Okay, Thanks and.
Speaker Change: Maybe just on the capital can you give us a sense of how much capital we should expect this year versus next year.
Kerry Mercury: Our expansion.
Yes.
Speaker Change: I mean, we are forecasting roughly this year was $260 million.
Kerry Mercury: <unk> expenditures.
Kerry Mercury: The 91%.
Kerry Mercury: <unk>.
Okay, great. Thank you.
Speaker Change: Thank you and as a reminder, if you would like to ask a question. Please press Star then one at this time well pause for just a moment to assemble our roster.
Speaker Change: And this concludes our question and answer session I'd like to turn the conference back over to Mr. Woods for any closing remarks.
Thank you operator, and thank you everybody for joining us and if you vote exploration. Please contact Oliver who will be more than happy to take your trading more details. Thank you very much everybody. We appreciate your attendance. Thank you.
Speaker Change: Thank you Sir this brings to a close today's conference call. You may disconnect your lines and we thank you for participating have a pleasant day.
Speaker Change: Okay.
Speaker Change: Yeah.
Speaker Change: [music].