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    Kerry Smith • Haywood Securities

    Kerry Smith's questions to Gold Royalty Corp (GROY) leadership

    Kerry Smith's questions to Gold Royalty Corp (GROY) leadership • Q3 2024

    Question

    Kerry Smith of Haywood Securities questioned the specifics of revenue recognition for the Vares stream, including payment lags and Q4 expectations, and asked about the company's debt reduction strategy.

    Answer

    CFO Andrew Gubbels clarified that revenue from Vares is recognized upon shipment and sale after a 25-tonne copper threshold is met, with no provisional pricing. He corrected his initial Q4 revenue estimate to be circa $1.2 million, contingent on ramp-up and prices, and confirmed a roughly three-month lag is expected. David Garofalo (Executive) stated the top priority for free cash flow is paying down the revolving credit facility to zero before considering shareholder returns.

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    Kerry Smith's questions to Aris Gold Corp (ARMN) leadership

    Kerry Smith's questions to Aris Gold Corp (ARMN) leadership • Q2 2024

    Question

    Kerry Smith of Haywood Securities sought clarification on the Marmato project, asking about the construction activities covered by the non-firm portion of the CapEx, the project's schedule adherence, and whether the full-year CapEx budget remains on track. He also asked about potential labor issues and the reason for the cost increase in the Segovia mill expansion.

    Answer

    COO Richard Thomas explained that the non-firm CapEx at Marmato relates to non-process infrastructure like camps and water treatment plants. He confirmed the project is on schedule, even slightly ahead on portal development, and that the full-year CapEx budget is still expected to be met. He noted no labor issues, citing the use of local contractors. The Segovia cost increase from $11M to $15M was attributed to a necessary scope change for deeper civil foundations, not cost escalation.

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    Kerry Smith's questions to Alamos Gold Inc (AGI) leadership

    Kerry Smith's questions to Alamos Gold Inc (AGI) leadership • Q2 2024

    Question

    Kerry Smith asked for clarification on the Phase IIIs expansion budget, questioning if the $756 million CapEx estimate remains on track given project changes. He also inquired about second-half production expectations and whether the updated CapEx would include the longer-term Magino mill expansion. Finally, he asked about the interest rate on the company's recently drawn debt.

    Answer

    Greg Fisher, Chief Financial Officer, stated that despite savings from not needing to expand the Island Gold mill, inflationary pressures mean the total project cost will likely be around the original $756 million, with a potential modest increase. This figure includes expanding the Magino mill to 12,400 tpd but not a larger future expansion. Fisher also noted that while they are comfortable with full-year guidance, production in Mexico may decrease in H2. The interest rate on the credit facility is just over 7%.

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