Sept 25 Shelf FilingI eagerly await news that Aris has secured the new senior notes, pushing back the due date of debt from 2026 to 2029. If you think about it, at these prices with both Segovia and Marmato humming along at a total of 500k ounces per year in 2027, the $400 million note will be fully paid by 2029 with ease.
Marmato has been draining the liquidity of Aris aggressively and even with the Wheaton payments, new cash needed to be found. I was concerned that Aris would take the easy way out and issue 15 - 25 million shares to shore up their mine development needs. The shelf filing of Sept 25th was not welcome news. Instead with robust economics behind them, they chose non-dilutive debt financing. This new note will add, I believe, an extra $100 million will be added to their available cash.
Something I have been witnessing lately, mostly with junior miners is when there's an announcement of a huge liquidity boost, their stock's have responded aggressively higher. My take with Aris is the pucker factor of several institutions will relax once the new note is closed. It will be a nice boost to liquidity to develop Marmato and possibly a larger boost to the stock as a very real vote of confidence by the lending financial instution(s).