RE:RE:New hereGo to Page 3 of the Q3 Financial Statement. Income from Operations was $32 million. There was a $12.8 million loss on financial instruments. They have outstanding Gold notes that effectively create a loss for Aris as the price of Gold rises. From what I can tell of the Gold notes, is in November 2020 59,300 ounces of future Gold production was fixed at $1400/ounce. I believe that is why 9 months in 2024 there's a loss of $23 million versus almost nil for 9 months 2023. Income was also hammered by a $17 million tax bill for the quarter.
If Aris did not have production growth near term (i.e. 2025), this company would be like dozens of zombie miners just squeaking out a profit, even with high Gold prices. This miner is a growth story of the future. It is not about a 1-trick pony with no growth prospects as it would have been if GCM would not have merged with Aris.
I don't know if anyone saw it but I-80 Gold just lost 2/3rd of their market cap this week. I-80 is a growth story but is cash poor. They are now restructuring their debt commitments. Bye bye stock! Some moaned about Aris refinancing but I celebrated it. Aris is completely free any funding risk. Their 8% interest $450 million debt due in October 2029 is great. 8% sounds high but this little miner just financed at the Prime Rate, meaning financial institutions gave Aris their best rate.
My investment interest here is Gold production growth. Since that growth over the next year or two comes at an AISC of $1500, we can project this miner to be highly profitable in the future. Stock markets are all about price the future and not the now.
Again I ask, show me any miner that has the production growth potential of Aris over the next 18 months?