Aris Mining Corp (ARMN)

[NYBob]

Gran Colombia Gold Reports First Quarter 2018 Results; Files National Instrument 43-101 Technical Report for Its Segovia Operations -
May 10, 2018

http://www.grancolombiagold.com/news-and-investors/press-releases/press-release-details/2018/Gran-Colombia-Gold-Reports-First-Quarter-2018-Results-Files-National-Instrument-43-101-Technical-Report-for-Its-Segovia-Operations/default.aspx

First Quarter 2018 Highlights

The Company successfully closed its $98 million Offering of Units on April 30, 2018 (the “Closing Date”) to refinance its 2020 Debentures and 2024 Debentures (collectively the “Senior Secured Debentures”), providing the Company with greater access to its internally generated free cash flow to explore, expand and modernize its mining operations, and significantly reducing the potential dilution to the Company’s shareholders compared with the existing capital structure. On the Closing Date, the Company deposited sufficient net proceeds from the Offering with the trustee for the Senior Secured Debentures to fund their redemption on May 14, 2018 (the “Redemption Date”). By extinguishing the full amount of the issued and outstanding Senior Secured Debentures with the net proceeds of the Offering, the $9.6 million of cash in trust as of March 31, 2018, representing the sinking fund for the Senior Secured Debentures, has since been released for inclusion in the Company’s unrestricted cash balance, which stood at $3.4 million at March 31, 2018. Since the Closing Date, a further $2.3 million aggregate principal amount of Senior Secured Debentures have been converted by holders into common shares, decreasing the ultimate amount required to be redeemed. At the Redemption Date, the excess funds deposited with the trustee for the redemption of the Senior Secured Debentures will be returned to the Company, further bolstering its cash position. The current issued and outstanding aggregate principal amount of the Senior Secured Debentures is $88.6 million and the Company has 29,317,798 common shares issued and outstanding.

The Company also settled $7.3 million aggregate principal amount of its 2018 Debentures on April 30, 2018 through a concurrent offer to holders of its 2018 Debentures to voluntarily settle their debt prior to maturity with a combination of 19% in cash, funded by the sinking fund, and 81% in common shares at the conversion price. The Company continues to expect that it will use its option to settle its remaining 2018 Debentures, of which $34.4 million aggregate principal amount is currently issued and outstanding, at maturity in August 2018 with common shares to the maximum extent possible. In accordance with the 2018 Debenture holders consent solicitation process to facilitate the Offering, the Company has increased the annual interest rate on the remaining issued and outstanding 2018 Debentures from 1% to 5% effective the Closing Date and through to their maturity.

The Company is on track to meet its guidance for 2018 with total gold production of 52,672 ounces in the first quarter of 2018 , up 35% over the first quarter of 2017, and a further 16,119 ounces produced in April 2018. Fueled by continued growth in the Company’s high-grade Segovia Operations, the Company’s trailing 12-months’ total gold production increased to 187,485 ounces as of March 2018, up 8% over the total for 2017 of 173,821 ounces and within the Company’s guidance range for 2018 of between 182,000 and 193,000 ounces.

Revenue increased 42% in the first quarter of 2018 over the first quarter last year to $64.8 million, positively impacted this year by the increased level of gold production as described above and 10% better realized gold prices in the first quarter of 2018 as spot gold prices rose 9% compared with the first quarter last year.

Total cash costs (1) and all-in sustaining costs(“AISC”) (1) averaged $670 per ounce and $896 per ounce, respectively, for the first quarter of 2018, down from $748 per ounce and $941 per ounce, respectively, in the first quarter last year. An increase in the proportion of the Company’s total gold sales coming from the lower cost Segovia Operations coupled with a reduction in Segovia’s total cast cost to $616 per ounce as a result of head grade improvement in the Company-operated areas of the Providencia mine and further reduction of fixed costs on a per ounce basis, led to the improved total cash cost per ounce for the Company in the first quarter of 2018 compared with the first quarter last year. AISC in the first quarter of 2018 included $180 per ounce of sustaining capital expenditures, up from $143 per ounce in the first quarter of 2017, reflecting the Company’s continuing commitment to explore, develop and modernize its high-grade Segovia Operations in the improving gold price environment.

Adjusted EBITDA (1) doubled in the first quarter of 2018 to $27.4 million compared with $13.6 million in the first quarter of 2017, bringing the trailing 12-months total adjusted EBITDA at the end of March 2018 to $89.3 million, up 18% compared with 2017.

The Company generated $2.6 million of Excess Cash Flow(1) in the first quarter of 2018, up from $2.3 million in the first quarter last year. The Company took advantage of its improved operating cash flow in the first quarter of 2018 to accelerate $5.6 million of its income tax payments that ordinarily would have been made in the second quarter of 2018 to facilitate the commencement in May 2018 of the monthly physical gold deliveries to the Gold Trust Account under the new gold-linked notes issued pursuant to the Offering.

The Company reported net income for the first quarter of 2018 of $5.4 million, or $0.25 per share, compared with a net loss of $0.8 million, or $0.04 per share, in the first quarter last year, with the year-over-year improvement principally attributable to the increased income from operations in the first quarter of 2018 driven by higher gold sales volumes and realized gold prices and lower total cash costs per ounce.

Adjusted net income (1) for the first quarter of 2018 of $9.8 million, or $0.46 per share, up from $3.1 million, or $0.16 per share, in the first quarter last year, also reflected the improvement in income from operations as noted above.

http://www.grancolombiagold.com/news-and-investors/press-releases/press-release-details/2018/Gran-Colombia-Gold-Reports-First-Quarter-2018-Results-Files-National-Instrument-43-101-Technical-Report-for-Its-Segovia-Operations/default.aspx

God Bless