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TL;DR
Ari Sussman, Executive Chairman of Collective Mining, emphasized his commitment to the company’s success, citing his substantial personal investment and extensive experience. He highlighted Colombia’s stable regulatory framework, efficient permitting process, and strong mining culture while acknowledging challenges such as community relations and security risks. Discussing the Apollo project, Sussman expressed confidence in its multi-million-ounce potential and straightforward metallurgy but underscored the importance of careful exploration and community engagement. He noted that while current market conditions favor a sale, future decisions will depend on creating maximum shareholder value. Sussman concluded by reaffirming his belief in Apollo’s transformative potential and Collective’s long-term vision.
- Ari Sussman’s substantial personal investment and track record underscore his belief in Collective Mining’s potential and his alignment with shareholder interests.
- Colombia’s strong legal framework and efficient permitting processes provide a solid foundation for mining, despite community and security challenges.
- The Apollo project is a multi-million-ounce gold-equivalent system with significant potential, supported by promising exploration results and straightforward metallurgy.
- Collective Mining focuses on advancing high-quality targets, leveraging innovative exploration strategies, and maintaining strong community relationships to ensure project success.
- While open to selling Apollo due to current market conditions, Sussman emphasizes long-term value creation and adaptability to evolving economic and operational factors.
Who is Ari Sussman, and why should investors trust him with their money?
Ari Sussman, the Executive Chairman of Collective Mining, is a well-established figure in the mining industry. With a career marked by significant achievements, his most notable success was the sale of Continental Gold in 2020 for approximately $2 billion CAD. Despite the financial freedom gained from this deal, Sussman chose to re-enter the industry due to his passion for exploration and development.
“Management owns about 20% of the company. I personally own over 11 million shares, with an average cost of around $1.50 per share,” Sussman stated. “We are equity-driven, not salary-driven.” This alignment of interests underscores Sussman’s commitment to creating shareholder value.
Collective Mining represents Sussman’s largest investment and primary focus. He emphasized, “I do not operate multiple companies. These are hard to run, and full attention is required.”
How important is local leadership in mining operations?
Sussman has strong views on the necessity of local leadership in junior mining operations. “I do not believe that a CEO of a junior mining company should live anywhere other than in the country where they operate,” he emphasized. Collective’s President and CEO, Omar Osma, is based in Colombia, ensuring close proximity to operations and communities.
This strategy stems from lessons learned during Continental Gold’s tenure, where remote management proved inefficient. “You need full-time attention on these things because this business gets harder with time,” Sussman noted. By delegating operational leadership to a local CEO, Sussman believes Collective Mining can achieve better outcomes.
Is Colombia a safe jurisdiction for mining?
Colombia is often perceived as a risky jurisdiction due to its history and recent political shifts. However, Sussman painted a more nuanced picture. “Colombia has never expropriated a title in its history and is the oldest democracy in South America,” he explained. He highlighted the robust rule of law, which ensures mining is protected under national legislation.
Two critical factors support this stability:
- Mining is enshrined in Colombia’s legal framework, meaning any changes to taxes or royalties require legislative approval.
- Permitting timelines are among the most efficient globally, with major projects requiring just 10 months for approval.
However, security risks persist in certain regions. “We’re fortunate to be in one of the safest areas of the country,” Sussman shared. He also stressed that community relations are paramount. “Projects succeed or fail based on the company’s ability to engage with communities,” he said.
How does Collective Mining manage community relations and resource sharing?
Operating in Colombia’s coffee-growing region, Collective Mining has formed an unprecedented partnership with the Colombian Coffee Federation. “We’re the first mining company to partner with the coffee industry,” Sussman noted.
This partnership aims to demonstrate that mining and agriculture can coexist. Collective Mining works directly with coffee-growing communities, emphasizing shared resources and mutual benefits. “Mining and coffee are both cyclical businesses that can complement each other,” Sussman explained.
Water management is a particular focus in this collaboration. By engaging early with local stakeholders, Collective Mining ensures sustainable resource use while addressing community concerns.
How does Collective handle financial management and currency risks?
The Colombian Peso’s depreciation has reduced local operating costs for Collective Mining. “We don’t hedge too much, but the currency’s recent performance has been advantageous,” Sussman said.
Looking ahead, Sussman anticipates a potential rebound in the Peso’s value if Colombia’s political climate shifts in the 2026 election. “The current president’s low approval rating increases the likelihood of a pro-business government returning,” he added.
Why were these assets not developed earlier?
The Guayabales project’s proximity to Aris Mining’s Marmato mine raises the question of why it wasn’t developed sooner. “Our exploration team’s ability to generate projects is unmatched,” Sussman asserted. “We recognized the geological potential where others didn’t.”
Sussman likened Collective’s position to the early days of the Barrick-Newmont rivalry in Nevada. “We found the sweet spot of the system, and most of it is on our ground,” he noted.
What’s the main unanswered question for 2025?
Collective’s exploration strategy hinges on advancing high-priority targets while eliminating weaker ones. “We drill to kill,” Sussman stated. “Many companies hang on to hope with weak targets, but we’re happy to move on.”
In 2025, drilling will focus on the X and Tower targets, which show strong potential. “X looks like Apollo on the surface but lacks depth confirmation,” Sussman explained. “We plan to drill it by March.”
Why did they initially drill Apollo from the wrong direction?
Early drilling at Apollo misunderstood the fluid flow directions due to the complexity of the breccia system. “A breccia is like a poorly constructed jigsaw puzzle where pieces don’t fit neatly,” Sussman explained.
This led to suboptimal drilling angles. Recent adjustments, informed by structural geology, have resulted in significantly improved results.
How deep will Apollo go?
Drilling at Apollo has reached over 1,150 meters, with significant mineralization still open at depth. “Our engineering work identified a location for a mill and tailings, with a haulage ramp intersecting Apollo 1 kilometer below surface,” Sussman explained.
This setup allows for efficient mining and cost management. “Gravity is our friend, not our enemy,” he noted.
Would a block cave mining method work here?
Block caving has been ruled out due to its complexity and cost. Instead, Sussman highlighted sublevel open stoping as the likely mining method. “It’s cost-effective and aligns well with Apollo’s bulk mining potential,” he stated.
Are deleterious elements a concern?
Metallurgical work has shown Apollo’s ore to be straightforward to process. “We’re producing concentrates with high precious metal content and minimal penalties for deleterious elements,” Sussman explained.
While elements like lead and zinc are present in some veins, they are not chemically bound to the gold, making recovery straightforward.
How big can Apollo get?
“Apollo is a multi-million-ounce gold-equivalent system,” Sussman stated. While exact resource numbers await further drilling, he believes Apollo could rival or exceed the 9-million-ounce resource of Aris Mining’s Marmato project.
Will Collective Mining sell or build Apollo?
“If we were at the decision point today, I’d say sell,” Sussman said, citing high inflation and capex costs. However, he left the door open to building if economic conditions improve.
What keeps Ari Sussman up at night?
Despite geological confidence, Sussman’s primary concern is maintaining community support. “Community relations are critical and can change on a dime,” he admitted. External pressures, rather than internal challenges, remain his primary worry.
Collective Mining Interview With Ari Sussman
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