InterviewI saw an interview with someone from Aris today. He was bragging about how much cash Aris has...300 million and 80 million cf coming from segovia every year. When they asked him when they will get permits to go ahead with Sorto Notre, he just rambled on about how the last owners tried but failed but they are gonna do better.
Hey man....the 300 million was borrowed a long time ago to build Toroparu. Now theyve put a stop to that and they admit they won't have any news about what they'll do with toroparu till next year.
All they will focus on now is Marmato. They DONT NEED 300 million for marmato....the free cash from Segovia will do. So why don't they PAY IT BACK. What kind of lunacy is this I don't know. They're paying 20 million a year interest expense on money they have no use for.
If they don't get going on Sorto Notre for another couple of years that's 40 or even 60 million interest down the drain. Pay it back and when they need it for sorto notre, (if ever because they have no permit yet do they), well you can take out a loan if and when that happens.
What is the issue here??? Concern about higher interest rates down the road? Well if you held that 300 million for 3 years, that's 21% you've paid in interest that you didn't need to. Even if rates go higher two years from now, it's still a loosing decision. The CFO should be fired IMO. Can anyone explain thier logic here because I just don't get it.