Aris Mining Corp T.ARIS

surplus cash

[invest234]

300 mil + 138 mil wheaton - 20 mil gold notes - 8 mil expenses
= 410 mil from funding.
if the updated pea reduces the initial capex of toro to 310 mil then subtracting from 410 mil means the funding produced 100 mil in surplus cash.

the cash balance (not counting funding) at end of year was expected to be close to 100 mil.

so the total surplus cash gcm has is close to 200 mil by end of year. this is in a year where they invested a large capex on 60km exploration drilling, building poly metallic plant, and expanding to 2000 tpd. they do not need to increase investment capex even more, so what to do with that 200 mil in surplus cash?

what better way to use that 200 mil flood of surplus cash than to buy back shares at crazy undervalued prices?

(how is that for positive thinking? lol)

[ramjam007]

Yes, buybacks are ideal! I love the companies direction at the moment, and more isgnificant buybacks would make me damn proud to have found and held this gem. 

[invest234]

even if the updated pea does not reduce the capex much, they still have around 150 mil surplus cash that is growing every year. they have to do something with it.

[satuple]

I think Capex, as usual, will be much higher than thought, and there will be not much surplus. 

[invest234]

as usual? last year free cash was 76 mil, 85 mil with marmato removed. the usual is not that bad.

[invest234]

free cash is after all capex has been subtracted, even higher than expected capex. maybe you are thinking of higher than expected use of that free cash rather than capex. every quarter gcm has been using that free cash to pay down the principal of the gold notes, around 18 mil per year. that uses up a large chunk of that free cash. but soon all the gold notes will be paid down to zero and those

[Eap5522]

invest, I think satuple is trying to say that Toro is going to have a higher capex than what management is expecting. I don't think so myself, IS and the team are very smart people.

[invest234]

ah that makes sense, the "usual" means cost overruns of typical management teams building a project. i do not recall gcm management having cost overrun problems. they have performed well in construction and operations, increased production and profitability. for the last several years they gave conservative guidance and have met or exceeded production guidance. their handling of cash has

[Eap5522]

I agree 100%. They have never been reluctant to use share buybacks to try to enhance shareholder value. It made perfect sense why they slowed down and eventually stopped them earlier this year in light of issuing shares to buy GOLD X. I agree with your math....we're going to be a very cash rich company going forward and I imagine they're going to use some of that cash to buy back shares.

[kkkrrr]

i disagree at one point.. capex at segovia will not come to en and.. there will be underground developement und other spending ..but the Segovia-investments will come down ... the 2000tpd -expansion will nor lead to higher cashflow.. they need it becouse the grades will come down in future years.. they have to move more ore for the same amount of gold ...  so exploration is the key here ;) .

[menoalittle]

>> the grades will come down in future years. that's pure speculation on your part. afterall, this is el dorado