S&P alters GCM view to positive

S&P said it changed its outlook for GCM Mining Corp. to positive from stable and affirmed its B+ ratings on the company and its $300 million of 6 7/8% senior unsecured notes due 2026.

GCM Mining recently reported it agreed to acquire all the remaining 56% of the outstanding shares of unrated Aris Gold, of which it previously owned 44%, to combine both companies.

“We expect the transaction to be completed by the end of third quarter 2022, after which the entity will have the potential to produce about 220% increased output by 2024, compared to fiscal year 2021 that ended Dec. 31,” the agency said in a press release.

The positive outlook reflects GCM’s soon-to be increased productive asset base, which will accelerate deleveraging and result in larger scale and cash flow generation without needing added funding or compromising its liquidity.

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