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Aris Mining Corp T.ARIS

Alternate Symbol(s):  CLGDF | T.ARIS.WT.A | ARMN | N.AMNG.NT.U

Aris Mining Corporation is a gold producer in the Americas. The Company is engaged in operating two mines with expansions underway in Colombia. The Segovia Operation is located in the Segovia-Remedios mining district in the department of Antioquia, Colombia, approximately 180 kilometers (km) northeast of Medellin. The Segovia Operations comprises four active underground gold mining operations, which include El Silencio, Sandra K, Providencia, and Carla. It has over 11 titles with a total area of 5,335.58 hectares (ha). The Marmato underground gold mine is located on the west side of the town of Marmato, in Marmato municipality of Caldas Department, in the Republic of Colombia, approximately 80 km from Medellin and 200 km northwest of the capital city of Bogota. The Company is also the operator and 51% owner of the Soto Norte Project, which is advancing to develop a new underground gold, silver and copper mine. In Guyana, it is advancing the Toroparu, a gold/copper project.


TSX:ARIS - Post by User

Bullboard Posts
Post by mstettleron Aug 27, 2016 2:43pm
214 Views
Post# 25183540

GCM, AR, MUX

GCM, AR, MUXI posted this in a different forum but thought you guys might be interested:

So today I wanted to discuss valuations on three companies with similar profiles.  Really this is more about market distortions.  I like MUX but it is priced way out of this world.  AR is rational.  GCM is irrational.

I'm including 2P oz with M&I oz for the sake of brevity.

MUX - recently traded high at 1.8 billion market cap.  No Debt.  2016 production of 144K oz @ AISC of $935.  M&I 4.25 million oz gold, inferred 3.26 million oz gold, plus 322 million oz silver in all categories.  Operations in argentina and mexico.  I for one am not very comfortable with argentina.

AR - recent market cap high at 705 million.  No Debt, 55 million in cash.  2016 production of 135K oz @ AISC of $947.  M&I 7.86 million oz gold, inferred 86K oz.  You will notice that AR has most of it's global resource in the higher confidence categories.  A small amount of silver also.  Operations in mexico with development in ontario.

GCM - recent market cap high of 25.4 million.  Approx 85 million debt.  2016 production of 140K oz @ AISC $811.  M&I 12.03 million oz, inferred 3.88 million oz.  Significant potential to add to the resource.  Operations in columbia.

OK - so GCM has ~85 million in debt but is MUX really worth 69X more?  I mean GCM has lower production costs and a larger resource.  I don't think operations in argentina and mexico are safer than columbia.  In fact MUX was greatly affected when the socialist govt. in argentina wanted to implement crippling taxes.  It could very well happen again as the argentinian economy is a constant basket case.  If gold were to untimately rise 500 USD per oz that would go straight to the bottom line of each of these companies.  The debt that GCM has would not look so terrible as they would have significant free cash flow.

The point of all of this is to demonstrate that in the gold (and silver) mining universe things can get irrational and valuations can be very distorted.
Bullboard Posts