Aris Mining: Massive Opportunity in Gold, Deploying Proven Strategy to Capitalize

• Frank Giustra and Neil Woodyear discuss starting new mining ventures in anticipation of a bull market in gold.
• They use a "buy and build" strategy over 3-7 years, starting with a quality asset and strong management.
• Current market conditions make it an excellent time to build or acquire mining assets at low valuations.
• Their experience and expertise in mining operations, finance, capital markets and M&A gives them an advantage.
• Key projects they are focused on include expanding production at Marmoto and advancing Soto Norte towards production.

Frank Giustra and Neil Woodyear provided valuable insights into their strategies for value creation in the gold sector. With decades of experience and a proven track record of building successful mining companies, they explained their perspective on market cycles and how investors can capitalize on opportunities.

In anticipation of a secular bull market in gold, Giustra and Woodyear are launching new ventures to acquire quality assets at the early stages of the cycle. As Giustra stated, "This is an excellent time to be building something or buying something." He pointed to gold finding a new support level around $1,800 as a sign that the bull market has begun in the early innings.

Giustra believes the gold mining industry is on the cusp of a period where significant wealth can be generated, despite current market conditions showing little appetite. His experience of over 40+ years in the sector tells him sentiment can shift quickly when the fundamentals are in place.

The strategy

Giustra and Woodyear deploy is referred to as "buy and build." They target assets with good valuation and upside potential not reflected in the price. By investing early in high-quality projects with strong management, and then waiting patiently through construction and ramp-up, substantial value accretion can be achieved. Giustra emphasized this model can produce multi-bagger returns over a typical 3-7-year hold period.

Excited by the prospects, Giustra stated, "Starting with a concept and building from scratch to create something of great value is a thrill that's too much to walk away from." He enjoys the challenge of assembling a team and game plan, and then executing flawlessly to turn visions into reality. For Woodyear, the process of aligning technical, financial, political and social elements is "great fun." Despite past successes, they maintain focus and drive to replicate results.

In their view, current market conditions provide an ideal environment to deploy this strategy. Giustra said, "If I had infinite resources, I would be buying control of so many companies right now" because valuations are the cheapest he's ever seen. The disconnect between gold prices and mining company equities provides opportunities for those able to access capital.

Giustra advises maintaining discipline and patience for the inevitable recovery. He emphasized, "When sentiment is terrible, it feels like it will never get better. But I've seen this before. It will always change." His message to investors is "buy quality companies with good management and wait. Don't worry. It will come back."

The recent small miner initiatives rolled out at their Segovia and Marmato projects in Colombia demonstrate the successful application of their buy-and-build approach. By integrating artisanal miners into commercial operations, both groups benefit through shared knowledge and capital. Expanding production at Segovia while enhancing community relations has proven the model. Woodyear sees additional potential to apply this template across projects.

For Woodyear, the small miner model has been validated through enhanced production and community relations. As he explained, "We could increase production at Segovia, but also enhance our social license to operate elsewhere."

The symbiotic partnership between commercial operators and artisanal miners can be replicated across assets.

For new mining ventures, Giustra and Woodyear look to fix or improve upon the work of previous operators. The depth of expertise in their team spanning operations, capital markets, finance, debt/equity structuring, mergers and acquisitions gives them advantages others lack. According to Woodyear, "We make informed, quick decisions" with an entrepreneurial spirit avoiding unnecessary risk. This experience-based judgment provides confidence to move rapidly when opportunities arise.

In terms of highlights from their careers, Woodyear pointed to the successful launch of Endeavor Mining as a particular highlight. Giustra could not pick just one accomplishment from his 40+ year career, saying the successes far outweigh failures in such a high-risk, complex business. He credits constantly de-risking projects and learning from mistakes as keys to his track record.

Looking ahead, Giustra and Woodyear are focused on advancing flagship projects and leveraging their financial strength. Expanding production at Marmato while permitting Soto Norte in Colombia will provide a clear pathway to 600,000 ounces per year in the coming years. As Giustra stated, “We have plenty of runway to create a production profile.” With a strong balance sheet and access to capital, they can methodically execute their plans without external financing constraints.

For investors, the message is clear - veterans with proven experience see massive opportunity in depressed mining equities. Their disciplined buy-and-build strategy targeting undervalued assets positions them to generate outsized returns. As Giustra emphasized, "When sentiment changes, these companies will get revalued." By acquiring quality miners leveraged to the gold price, a huge potential upside exists for patient investors with a 3-5-year time horizon.

Giustra believes the disconnect between company values and fundamentals won't last forever, stating "When sentiment is terrible, it feels like it will never get better. But I've seen this before. It will always change." He has demonstrated the patience and discipline to stick to his proven strategy through all types of markets in his 40+ year career.

The Investment Thesis for Aris Mining

• Proven operators see a secular bull market in the early innings, with gold establishing new support at $,1800+.
• Veteran team employs buy and build strategy perfected over 40+ years and multiple cycles.
• Target undervalued assets with operational upside not priced into shares.
• Look for quality projects, strong management, and be patient through execution.
• Add value through optimized mine plans, small miner programs, and phased expansions.
• Recent initiatives added production and enhanced relations at Segovia.
• Advancing Soto Norte and Marmato expansion provides a clear 600,000-ounce-per-year path.
• A strong balance sheet allows self-funding growth plans without dilution.
• Massive disconnect between gold price and mining equities spells opportunity.
• Accumulate positions in high-quality miners like Aris ahead of revaluation.