S&P revises Aris outlook to stable

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

Aris Mining was formed through the merger of Aris Gold Corp. and GCM Mining Corp. in 2022.

“At the time, we expected the merger to bolster prospects for gold production growth beginning in 2024. This view stemmed from the expansion of Aris Mining's Marmato mine and from the construction of the Toroparu mine in Guyana, for which the company issued the $300 million senior unsecured notes in 2021. We forecasted that Aris Mining would cut its adjusted leverage below 2x and expand free operating cash flow (FOCF), once both projects were completed,” S&P said in a press release.

However, boosting Marmato’s output is taking longer than previously expected and the company paused construction at Toroparu partially because updated research shows a lower mineral reserve.

“Therefore, we now expect a lesser likelihood that Aris Mining will improve its financial risk profile and expand its operations by adding a third asset in the next 12-18 months. This prompted our revision of the outlook to stable,” the agency said.

S&P said it now forecasts Aris to maintain adjusted leverage below 3x for the upcoming 12 months.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.