ARIS MINING REPORTS Q4 AND FULL-YEAR 2022 FINANCIAL AND OPERATING HIGHLIGHTS
Aris Mining Corporation (TSX: ARIS; OTCQX: TPRFF) announced its financial results for Q4 2022 and FY2022, reporting $51 million in free cash flow. The company produced 215,373 ounces of gold and sold 220,098 ounces at an average price of $1,784 per ounce. Total income from mining operations was $160 million with a net income of $0.6 million. Notably, Aris Mining plans to produce between 230,000 and 270,000 ounces of gold in 2023 at an AISC of $1,050 to $1,150 per ounce. Key projects include the Marmato Lower Mine expansion and the Soto Norte project. The company ended 2022 with $299.5 million in cash and cash equivalents.
- Generated $51 million in free cash flow.
- Produced 215,373 ounces of gold in 2022.
- Sold 220,098 ounces of gold at an average price of $1,784 per ounce.
- Established $160 million income from mining operations.
- Plans for 230,000 to 270,000 ounces gold production in 2023.
- Net income decreased to $0.6 million from $179.968 million year-over-year.
- Adjusted earnings per share dropped to $0.46 from $0.87.
Aris Mining CEO
Looking forward, we expect to produce between 230,000 and 270,000 ounces of gold at an AISC1 of between
2022 Highlights
Operational:
- Produced 215,373 ounces of gold, including 34,933 ounces from the purchase of mill-feed from partnerships with artisanal and small-scale miners around the Segovia Operations
- Sold 220,098 ounces of gold at an average realized price of
$1,784 - Total cash costs of
$797 $1,128 - In
November 2022 , the Company received approval from the Agencia Nacional de Minería (ANM) of the Marmato works and construction program (PTO); a further step toward fully permitting theMarmato Lower Mine expansion project - In
November 2022 , the Company updated theMarmato Lower Mine expansion Preliminary Feasibility Study and increased gold mineral reserves by57% 2 - Updated mineral resource and reserve estimates for the Segovia Operations effective
December 31, 2022 , which included full replacement of gold ounces mined in 20222
Financial and growth investments:
- In
September 2022 ,GCM Mining andAris Gold combined to create Aris Mining as a leadingLatin America -focused gold producer - In
April 2022 ,Aris Gold , which subsequently combined with the Company, established a joint venture and became the operator of theSoto Norte Project inColombia , where environmental licensing is advancing to develop a new underground gold, silver and copper mine - Income from mining operations of
$160 million - EBITDA of
$116.9 million $166.0 million - Expenditures of
$45.7 million - Expenditures of
$73.2 million $7.4 million $5.1 million Marmato Mine (Upper and Lower), and$60.7 million Toroparu Project 1 - Net income of
$0.6 million $0.01 - Adjusted net income of
$50.3 million $0.46 $299.5 million December 31, 2022
Responsible mining and shared value:
- Joined the United Nations Global Compact and initiated the development of our Communication on Progress (CoP) Report
- Introduced Vision Zer000, a program to further strengthen our culture of harm prevention and to integrate safety, health and well-being into our daily actions
- Social contributions of
$12.0 million - Royalty and income tax payments of
$63.7 million - Expanding partnerships with artisanal and small-scale miners at the Segovia Operations and creating new partnership opportunities at the
Marmato Mine andSoto Norte Project through a new protocol for establishing agreements - Strengthening Aris Mining's diversity and inclusion policies to promote gender equality in all areas of our business
Q4 2022 Financial and Operating Highlights
In US dollars | Three months ended | Years ended | ||
2022 | 2021 | 2022 | 2021 | |
Gold sold (ounces) | 59,157 | 51,716 | 220,098 | 210,042 |
Average realized gold price ($/ounce sold) | 1,687 | 1,782 | 1,784 | 1,794 |
Cash costs ($/ounce sold)1 | 811 | 797 | 797 | 788 |
AISC ($/ounce sold)1 | 1,108 | 1,211 | 1,128 | 1,133 |
Income from mining operations ($'000) | 37,744 | 36,220 | 159,955 | 155,579 |
Net cash provided by operating activities ($'000) | 12,938 | 27,413 | 76,954 | 80,554 |
EBITDA ($'000)1 | 32,811 | 32,057 | 116,930 | 280,289 |
Adjusted EBITDA ($'000)1 | 36,372 | 37,300 | 165,960 | 171,489 |
Net earnings ($'000) | 4,769 | 6,606 | 622 | 179,968 |
Adjusted earnings ($'000)1 | 8,679 | 12,162 | 50,283 | 72,234 |
Earnings per share – basic ($) | 0.05 | 0.07 | 0.01 | 2.25 |
Adjusted earnings per share – basic ($)1 | 0.09 | 0.12 | 0.46 | 0.87 |
1. | Refer to the Non-IFRS Measures section below for full details on cash costs ($ per oz sold), AISC ($ per oz sold), EBITDA, adjusted EBITDA, and adjusted earnings. Comparative cash cost and AISC values have been adjusted from amounts disclosed prior to Q3 2022 following a change in the methodology used to calculate total cash costs ($ per oz sold) and AISC ($ per oz sold) in Q3 of 2022. |
Balance sheet, as at ( | 2022 |
|
Cash and cash equivalents | 299,461 | 323,565 |
Total assets | 1,242,120 | 998,385 |
Total debt1 | ||
Senior Notes | 300,000 | 300,000 |
Gold Notes | 66,006 | - |
Convertible Debentures | 13,300 | 14,200 |
1. | The face value of long-term debt as at |
2022 Cash Flow Generation
The operating cash flow generated by the Company in FY 2022 is summarized in the table below.
(US | Year ended | |
Gold Revenue | 392,622 | |
Total cash cost1 | (175,528) | |
Royalties1 | (12,955) | |
Social contributions1 | (11,992) | |
Sustaining capital1 | (47,884) | |
All in sustaining cost (AISC) 1 | (248,359) | |
AISC Margin | 144,263 | |
General and administrative expenses | (22,024) | |
Change in receivables related to timing of gold sales | (13,496) | |
Other changes in receivables | (3,372) | |
Impact of foreign exchange losses on cash balances | (7,162) | |
Other changes in working capital and other | 3,152 | |
Taxes paid2 | (50,716) | |
Free cash flow from operations | 50,645 | |
Non-sustaining capital | ||
60,678 | ||
Segovia Operations1 | 7,374 | |
475 | ||
4,649 | ||
Total non-sustaining capital | 73,176 | |
1. | Refer to the Non-IFRS Measures section below for full details on cash costs ($ per oz sold), AISC ($ per oz sold), and additions to mining interests split by nature and site. Comparative cash cost and AISC values have been adjusted from amounts disclosed prior to Q3 2022 following a change in the methodology used to calculate total cash costs ($ per oz sold) and AISC ($ per oz sold) in Q3 of 2022. |
2. | As presented in the Financial Statements and notes included therein for the respective periods. |
Aris Mining's Q4 2022 financial statements and related MD&A are available on SEDAR and in the Financials section of Aris Mining's website here.
Conference call
The conference call to discuss the Q4 2022 and FY2022 results will be held on
The conference call dial-in is +1-416-764-8658 or toll free (
Participants can access the Company's presentation by a live webcast of the conference call at the following link: https://events.q4inc.com/attendee/982031966
There will be a question-and-answer session following the presentation.
About Aris Mining
Aris Mining is a Canadian company led by an executive team with a track record of creating value through building globally relevant mining companies. In
Aris Mining promotes the formalization of artisanal and small-scale mining as this process enables all miners to operate in a legal, safe and responsible manner that protects them and the environment.
Additional information on Aris Mining can be found at www.aris-mining.com and www.sedar.com.
Cautionary Language
Non-IFRS Measures
Cash costs ($ per oz sold), AISC ($ per oz sold), EBITDA, adjusted EBITDA, adjusted (loss)/earnings and additions to mining interests are non-IFRS financial measures and non-IFRS ratios in this document. These measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to other issuers. For full details on these measures and ratios refer to the "Non-IFRS Measures" section of the Company's Management's Discussion and Analysis for the three months and year ended
Qualified Person and Technical Information
Scientific and technical information concerning the Marmato mine is summarized, derived, or extracted from the NI 43-101 compliant technical report entitled "Technical Report for the
Scientific and technical information concerning the mineral resource and reserve estimates of the Segovia Operations is summarized, derived, or extracted from the news release of the Company dated
Forward-Looking Information
This news release contains "forward-looking information" or forward-looking statements" within the meaning of Canadian securities legislation. All statements included herein, other than statements of historical fact, including, without limitation, statements relating to the mine lives and growth potential of the Company's large-scale development projects, the Company's plans for its near-term growth projects, 2023 gold production and AISC projections, plans with respect to partnerships with artisanal and small-scale miners and the timing thereof, and the Company's plans and strategies are forward-looking. Generally, the forward-looking information and forward looking statements can be identified by the use of forward looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", "will continue" or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". Statements concerning mineral reserve estimates and mineral resource estimates may also be deemed to constitute forward looking information to the extent that they involve estimates of the mineralization that will be encountered. The material factors or assumptions used to develop forward looking information or statements are disclosed throughout this presentation.
Forward looking information and forward looking statements, while based on management's best estimates and assumptions, are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Aris Mining to be materially different from those expressed or implied by such forward-looking information or forward looking statements, including but not limited to: local environmental and regulatory requirements and delays in obtaining required environmental and other licenses, changes in national and local government legislation, taxation, controls, regulations and political or economic developments, uncertainties and hazards associated with gold exploration, development and mining, risks associated with tailings management, risks associated with operating in foreign jurisdictions, risks associated with capital cost estimates, dependence of operations on infrastructure, costs associated with the decommissioning of the Company's properties, fluctuations in foreign exchange or interest rates and stock market volatility, operational and technical problems, the ability to maintain good relations with employees and labour unions, competition; reliance on key personnel, litigation risks, uncertainties relating to title to property and mineral resource and mineral reserve estimates, risks associated with acquisitions and integration, risks associated with the Company's ability to meet its financial obligations as they fall due, volatility in the price of gold, or certain other commodities, risks that actual production may be less than estimated, risks associated with servicing indebtedness, additional funding requirements, risks associated with general economic factors, risks associated with secured debt, changes in the accessibility and availability of insurance for mining operations and property, environmental, sustainability and governance practices and performance, risks associated with climate change, risks associated with the reliance on experts outside of
Although Aris Mining has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information and forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information or statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information or statements. The Company has and continues to disclose in its Management's Discussion and Analysis and other publicly filed documents, changes to material factors or assumptions underlying the forward-looking information and forward-looking statements and to the validity of the information, in the period the changes occur. The forward-looking statements and forward-looking information are made as of the date hereof and Aris Mining disclaims any obligation to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements or forward-looking information contained herein to reflect future results. Accordingly, readers should not place undue reliance on forward-looking statements and information.
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1 Refer to the Non-IFRS Measures section below for full details on EBITDA, adjusted EBITDA, total cash costs per ounce, AISC ($ per oz sold), sustaining capital, adjusted net income and adjusted net income per share. |
2 See Qualified Person and Technical Disclosure section below for further details. |
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