ARIS MINING REPORTS 2023 RESULTS WITH GUIDANCE ACHIEVED, NET EARNINGS OF $11.4M, ADJUSTED EARNINGS OF $52.2M ($0.38/SHARE), ADJUSTED EBITDA OF $159M

Rhea-AI Summary

Aris Mining Corporation reports strong financial and operating results for Q4 2023 and FY 2023, showcasing increased gold production, EBITDA, and adjusted earnings. The company's CEO highlights operational improvements and growth initiatives, including capacity expansion at Segovia Operations and progress at Marmato Lower Mine project. Aris Mining generated significant free cash flow and ended the year with a healthy cash position, setting the stage for future growth and production milestones.

Insights

Financial Analyst

The disclosed financial and operating results of Aris Mining Corporation for Q4 and FY 2023 exhibit a mixed financial performance with net losses in Q4 but overall profitability for the fiscal year. The company's all-in sustaining costs (AISC) per ounce for gold production remained relatively stable, reflecting effective cost management despite the restructuring of operations post-merger. The increase in gold production and the expansion of the Segovia Operations are pivotal for future revenue growth. However, the negative free cash flow after expansion capital in Q4 indicates potential liquidity concerns.

Investors should note the substantial growth in mineral reserves and resources, which could lead to increased production capacity and revenue in the long-term. Yet, the decrease in net cash year-over-year raises questions about the company's ability to sustain its growth investments without additional financing. The cash position at year-end, though significant, has declined from the previous year, which may affect the company's financial flexibility.

Market Research Analyst

The gold mining industry is sensitive to gold prices, which have fluctuated over the past year. Aris Mining's average realized gold price in 2023 indicates a favorable market environment, which has contributed to their revenue. The company's strategy to increase processing capacity by 50% at the Segovia Operations aligns with industry trends of scaling operations to leverage economies of scale.

Market dynamics suggest that construction projects such as the Marmato Lower Mine could position Aris Mining for competitive advantage, but also carry operational risks and cost overruns. The projected increase to 500,000 ounces of gold production in Colombia by 2026 could significantly impact the company's market share and valuation if executed efficiently.

Mining Industry Expert

The technical aspects of Aris Mining's operations, such as the processed grade of 10.4 g/t at the Segovia Operations, are indicative of high-grade mining, which is typically more cost-effective than lower-grade mining. The shift to increase processing capacity and the ramp-up of the Marmato Lower Mine project demonstrate a commitment to long-term growth and operational efficiency.

The focus on exploration potential and growth projects is essential in the mining industry to sustain production levels and replace depleted reserves. However, the capital intensity of these projects requires careful financial planning to ensure they do not jeopardize the company's financial health. The partnership with artisanal and small-scale mining units is noteworthy, as it reflects a trend towards more inclusive and sustainable mining practices.

VANCOUVER, BC, March 6, 2024 /PRNewswire/ - Aris Mining Corporation (Aris Mining or the Company) (TSX: ARIS) (NYSE-A: ARMN) announces financial and operating results for the three and twelve months ended December 31, 2023 (Q4 2023 and FY 2023, respectively). All amounts are in US dollars unless otherwise indicated.

	Q4 2023	FY 2023
Gold Production	61,052 ounces	226,151 ounces
Segovia Operations AISC/oz1	$1,264	$1,173
EBITDA1	$19.7M	$112.1M
Adjusted EBITDA1	$39.7M	$159.4M
Net earnings (loss)	($5.9M) or ($0.04)/share	$11.4M or $0.08/share
Adjusted earnings1	$11.8M or $0.09/share	$52.2M or $0.38/share

Aris Mining CEO Neil Woodyer stated: "In 2023, we restructured the operations team and introduced new operating procedures following the combination of GCM Mining and Aris Gold in September 2022. The new team achieved consistent quarter-over-quarter increases in gold production during 2023, significantly enhancing our position in 2024 and the future. We have achieved the initial phase of our vision to create an attractive gold mining company for investors by integrating profitable operations with exploration potential and growth projects.  

During 2023, our high-grade Segovia Operations produced 202,940 ounces of gold at a processed grade of 10.4 g/t with all-in sustaining costs per ounce of $1,173, achieving production and AISC guidance. For the full year 2023, our mines generated $75.4 million in free cash flow from operations¹ which largely funded $84.2 million in growth and expansion investments, and we ended the year with a cash position of $195 million.

With strong gold production results and substantial growth in mineral reserves and resources at our Segovia Operations, we have started construction to increase its processing capacity by 50% to 3,000 tonnes per day with completion expected in early 2025. As the new capacity is used, we expect to increase annual gold production at Segovia to over 300,000 ounces. Construction at our Marmato Lower Mine project has ramped up with initial access roads completed, the lead contractor for portal and decline development selected, and tenders for key items for the new processing plant underway. We are on pace to reach 500,000 ounces of gold production in Colombia in 2026."

Operations Review – Segovia Operations

	Q4 2023		Q3 2023		FY 2023
Tonnes milled (t)	166,329		163,205		663,603
Average tonnes milled per day (tpd)	1,934		1,898		1,858
Average gold grade processed (g/t)	10.63		10.77		10.42
Gold produced (ounces)	54,719		53,826		202,940
Cash costs ($/ounce sold)1	997		954		928
AISC – owner operated mining ($/ounce sold)1	1,267		1,108		1,120
AISC – partner operated mining ($/ounce sold) 1,2	1,261		1,308		1,242
AISC – total ($/ounce sold)1	1,264		1,194		1,173

Aris Mining Quarterly and YTD Cashflow Generation – 2023 (US$ million)

			Q4	Q3			Q2	Q1	FY 2023
Gold sold (ounces)			62,083	59,040			54,228	49,158	224,509
Gold produced (ounces)			61,052	60,193			54,003	50,903	226,151
Average realized gold price ($/ounce sold)			$1,980	$1,913			$1,959	$1,869	$1,933
Gold revenue			$  122.9	$  113.0			$  106.2	$   91.9	$  434.0
Total cash costs1, royalties & social contributions			(75.5)	(67.3)			(62.5)	(51.1)	(256.4)
Sustaining capital1 – Segovia infill exploration program			(1.3)	(1.3)			(0.3)	(0.8)	(4.6)
Sustaining capital1 – other			(10.0)	(7.4)			(4.1)	(7.7)	(28.3)
All in sustaining margin			36.1	37.0			39.3	32.2	144.7
Taxes paid			-	-			(52.4)	-	(52.4)
General and administration expenses			(7.5)	(3.9)			(4.1)	(2.2)	(17.8)
Change in working capital, impact of foreign exchange			(8.0)	3.2			22.9	(17.0)	1.0
Free cash flow from operations			20.6	36.3			5.7	12.9	75.4
Expansion and growth capital1 at:
Marmato Upper Mine & Lower Mine			(10.6)	(14.2)			(6.8)	(4.6)	(36.1)
Segovia Operations – regional exploration program			(6.0)	(2.6)			(2.9)	(2.5)	(14.0)
Segovia Operations – other			(10.3)	(4.0)			(4.7)	(0.1)	(19.1)
Toroparu Project			(1.7)	(3.9)			(4.6)	(4.7)	(14.9)
Total expansion and growth capital			(28.6)	(24.6)			(19.0)	(11.9)	(84.2)
Free cashflow from operations after expansion capital			(8.1)	11.7			(13.4)	1.0	(8.7)
Proceeds from warrant/option exercises			0.6	0.3			1.6	0.4	3.0
Soto Norte, deferred payment to Mubadala			-	-			-	(50.0)	(50.0)
Repayment of Gold-linked Notes			(1.8)	(1.8)			(1.8)	(1.8)	(7.4)
Contributions to investments in associates			(1.4)	(1.4)			(1.2)	(1.1)	(5.1)
Purchase of Denarius debentures and shares			(3.6)	-			-	(1.1)	(4.7)
Interest (paid), net of interest income			(2.0)	(12.3)			(0.2)	(17.5)	(31.9)
Net change in cash			(16.2)	(3.5)			(15.0)	(70.1)	(104.8)
Opening balance at the beginning of the period			210.8	214.3			229.3	299.5	299.5
Closing balance at the end of the period			$  194.6	$  210.8			$  214.3	$  229.3	$  194.6

	_____________________________________
1	AISC ($ per oz sold), EBITDA, adjusted EBITDA, adjusted earning, free cash flow, cash costs and sustaining capital are non-IFRS financial measures in this document. These measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to other issuers. Refer to the Non-IFRS Measures section and the table titled "Quarterly and YTD Cashflow generation" below for a reconciliation of these measures to the most directly comparable financial measure disclosed in the Company's interim and audited financial statements.
2	Partner-operating mining encompasses contractor workforce as well as the acquisition of mill-feed from artisanal and small-scale miner units.

Aris Mining's audited consolidated financial statements for three month and years ended December 31, 2023 and 2022 and related MD&A (together, the Annual Filings) are available on SEDAR+, and the Annual Filings and Aris Mining's annual report on Form 40-F for the year ended December 31, 2023 are available in the Company's filings with the U.S. Securities and Exchange Commission (the SEC) and in the Financials section of Aris Mining's website here. Hard copies of the audited financial statements are available free of charge by written request to info@aris-mining.com.

FY2023 Conference Call Details

Management will host a conference call on Thursday, March 7, 2024, at 11:00 am ET/8:00 am PT to discuss the results and outlook for 2024. The call will be webcast and can be accessed at Aris Mining's website at www.aris-mining.com, or at https://services.choruscall.ca/links/arismining2023q4.html

To join the conference via telephone dial:

• Toll-free North America: 1-866-668-0730
• International: +1 604-638-5357

Participants may also choose to pre-register to join the conference call automatically, at this link. Upon registering, participants will receive a calendar invitation with dial-in details and a unique PIN, which will allow them to bypass the operator queue and connect directly to the conference.

The call will be available for playback for one week by dialing:

• Toll-free in the US and Canada: +1 800.319.6413
• International: +1 604.638.9010
• Replay access code: 0729

A replay of the event will be archived at Aris Mining Corporation - Investors - Events & Presentations (aris-mining.com).

About Aris Mining

Aris Mining is a gold producer in the Americas with an attractive blend of current production, exploration, and growth projects. The Company operates two mines in Colombia, the Segovia Operations and Marmato Upper Mine, known for their high-grade deposits, which produced 226,000 ounces of gold in 2023. With expansion projects in progress, Segovia and Marmato aim to produce a combined 500,000 ounces of gold in 2026. Aris Mining also operates and is 20% owner of the Soto Norte Project joint venture, where environmental licensing is advancing to develop a new underground gold, silver and copper mine. In Guyana, Aris Mining is advancing the Toroparu Project, a gold/copper project. Aris Mining is committed to pursuing acquisitions and other growth opportunities to unlock value through scale and diversification.

Additional information on Aris Mining can be found at www.aris-mining.com, www.sedarplus.ca, and on www.sec.gov.

Cautionary Language

Non-IFRS Measures

Free cash flow, cash costs ($ per oz sold), AISC ($ per oz sold), EBITDA, adjusted EBITDA, adjusted (loss)/earning, sustaining capital and expenditures on growth capital are non-IFRS financial measures and non-IFRS ratios. 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 years ended December 31, 2023 and 2022 (MD&A). The MD&A is incorporated by reference into this news release and is available on the Company's profile on SEDAR+ at www.sedarplus.ca and in its filings with the SEC at www.sec.gov.

The tables below reconcile the non-IFRS financial measures contained in this news release for the current and comparative periods to the most directly comparable financial measure disclosed in the Company's 2023 audited consolidated financial statements.

Total cash costs

		Segovia Operations			Total Operations
		Quarter ended,		Year ended,	Quarter ended,			Year ended,
($000s except per ounce amounts)	Dec 31, 2023		Sept 30, 2023	Dec 31, 2023		Dec 31, 2023	Sept 30, 2023	Dec 31, 2023
Total gold sold (ounces)	55,736		52,627	201,652		62,083	59,040	224,509
Cost of sales1	61,993		56,543	213,649		76,580	68,534	261,766
Less: materials and supplies provision	(715)		-	(715)		(1,211)	(190)	(1,401)
Less: royalties1	(3,434)		(3,202)	(12,784)		(4,531)	(4,189)	(16,745)
Add: by-product revenue1	(2,297)		(3,153)	(13,081)		(2,565)	(3,514)	(14,199)
Less: other adjustments	-		-	-		-	-	77
Total cash costs	55,547		50,188	187,069		68,273	60,641	229,498
Total cash costs ($ per oz gold sold)	997		954	928		1,100	1,027	1,022

1.	As presented in the interim and audited consolidated financial statements and notes for the respective periods.

All-in sustaining costs (AISC)

	Segovia Operations					Total Operations
	Quarter ended,		Year ended,			Quarter ended,			Year ended,
($000s except per ounce amounts)	Dec 31, 2023	Sept 30, 2023		Dec 31, 2023	Dec 31, 2023		Sept 30, 2023	Dec 31, 2023
Total gold sold (ounces)	55,736	52,627		201,652	62,083		59,040	224,509
Total cash costs	55,547	50,188		187,069	68,273		60,641	229,498
Add: royalties1	3,434	3,202		12,784	4,531		4,189	16,745
Add: social programs1	2,501	2,249		9,573	2,653		2,434	10,157
Add: sustaining capital expenditures	8,669	6,685		25,136	11,020		8,143	30,842
Add: lease payments on sustaining capital	324	507		2,073	324		507	2,073
Total AISC	70,475	62,831		236,635	86,801		75,914	289,315
Total AISC ($ per oz gold sold)	1,264	1,194		1,173	1,398		1,286	1,289

1.	As presented in the interim and audited consolidated financial statements and notes for the respective periods.

The table below reconciles the cash cost per ounce sold and the AISC per ounce sold for ore sourced from owner-operated mines and other partner-operated mines to the totals for the consolidated Segovia Operations:

	Quarter ended December 31, 2023					Year ended December 31, 2023
	Owner Operated  mining1		Partner		Total		Owner Operated  mining1		Partner		Total
			Operated mining2		Segovia				Operated mining2		Segovia
Attributable gold sold (ounces)	31,396		24,340		55,736		113,560		88,092		201,652
Total cash costs ($'000)3	27,632		27,915		55,547		88,069		99,002		187,071
Cash cost per ounce sold ($/ounce)3	$880		$1,147		$997		$776		$1,124		$928
All-in sustaining costs ($'000)3	39,781		30,694		70,475		127,232		109,405		236,637
AISC cost per ounce sold ($/ounce)3	$1,267		$1,261		$1,264		$1,120		$1,242		$1,173
							Quarter ended September 30, 2023
							Owner Operated  mining1		Partner Operated mining2		Total Segovia
Attributable gold sold (ounces)							30,030		22,597		52,627
Total cash costs ($'000)3							23,602		26,586		50,188
Cash cost per ounce sold ($/ounce)3							$786		$1,177		$954
All-in sustaining costs ($'000)3							33,279		29,553		62,831
AISC cost per ounce sold ($/ounce)3							$1,108		$1,308		$1,194

1.	Includes Company-operated areas within the mines, utilizing owner-managed labour.
2.	Comprises contractor-operated and other small-scale mining operations within and outside of the Company's mining title that are operated by miners under contract to deliver the mill feed mined to the Company's Maria Dama plant for processing.
3.	Refer to the Non-IFRS Measures section for full details on cash costs ($ per oz sold) and AISC ($ per oz sold).

Additions to mineral interests, plant and equipment

							Quarter ended,			Year ended,
($'000)							Dec 31, 2023	Sept 30, 2023	Dec 31, 2023
Sustaining capital
Segovia Operations							8,669	6,685	25,136
Marmato Upper Mine							2,351	1,457	5,706
Total							11,020	8,143	30,842
Non-sustaining growth capital
Segovia Operations							16,308	6,569	33,157
Toroparu Project							1,740	3,874	14,929
Marmato Lower Mine							9,394	8,413	27,814
Marmato Upper Mine							1,181	5,737	8,244
Juby Project							7	-	40
Total							28,630	24,594	84,184
Total Additions1							39,650	32,736	115,026
1.  As presented in the interim and audited consolidated financial statements and notes for the respective periods.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) and adjusted EBITDA

			Quarter ended,			Year ended,
($000s)			Dec 31, 2023	Sept 30, 2023	Dec 31, 2023
Earnings (loss) before tax1			7,963	26,156	58,826
Add back:
Depreciation and depletion1			7,535	10,938	34,944
Finance income1			(2,580)	(3,672)	(10,783)
Interest and accretion1			6,772	6,757	29,156
EBITDA			19,690	40,179	112,143
Add back:
Share-based compensation1			2,977	528	5,111
Revaluation of investments (Denarius) 1			536	-	10,559
Loss from equity accounting in investee1			(3,667)	(1,062)	(59)
(Gain) loss on financial instruments1			13,429	(374)	13,078
Foreign exchange (gain) loss1			6,685	2,285	18,550
Adjusted EBITDA			39,650	41,555	159,382

1.	As presented in the interim and audited consolidated financial statements and notes for the respective periods.

Adjusted net earnings and adjusted net earnings per share

			Quarter ended,			Year ended,
($000s except shares amount)			Dec 31, 2023	Sept 30, 2023	Dec 31, 2023
Basic weighted average shares outstanding			137,313,095	137,192,545	136,735,317
Diluted weighted average shares outstanding			137,313,095	137,484,041	137,062,505
Net earnings (loss)1			(5,944)	13,833	11,419
Add back:
Share-based compensation1			2,977	528	5,111
Revaluation of investments (Aris Gold/Denarius) 1			536	-	10,559
(Income) loss from equity accounting in investee1			(3,667)	(1,062)	(59)
(Gain) loss on financial instruments1			13,429	(374)	13,078
Foreign exchange (gain) loss1			6,685	2,285	18,550
Income tax effect on adjustments			(2,221)	(796)	(6,434)
Adjusted net (loss) / earnings			11,795	14,414	52,224
Per share – basic ($/share)			0.09	0.11	0.38

1.	As presented in the interim and audited consolidated financial statements and notes for the respective periods.

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 Company's belief that it has significantly enhanced its position in 2024 and the future, the Company's plans to increase the processing capacity at the Segovia Operations and the timing thereof, the expected increase in annual gold production at the Segovia Operations, the Company's goal of producing 500,000 ounces of gold in Colombia in 2026 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". The material factors or assumptions used to develop forward looking information or statements are disclosed throughout this news release.

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 those factors discussed in the section entitled "Risk Factors" in Aris Mining's annual information form dated March 6, 2024 which is available on SEDAR+ at www.sedarplus.ca and in the Company's filings with the SEC at www.sec.gov.

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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SOURCE Aris Mining Corporation

FAQ

What were the gold production figures for Aris Mining in Q4 2023 and FY 2023?

In Q4 2023, Aris Mining produced 61,052 ounces of gold, while in FY 2023, the company produced 226,151 ounces.

What were the EBITDA and adjusted EBITDA numbers for Aris Mining in Q4 2023 and FY 2023?

In Q4 2023, Aris Mining reported EBITDA of $19.7 million and adjusted EBITDA of $39.7 million. For FY 2023, the figures were $112.1 million and $159.4 million, respectively.

What was the net earnings (loss) per share for Aris Mining in Q4 2023 and FY 2023?

In Q4 2023, Aris Mining reported a net loss of $5.9 million or ($0.04) per share. For FY 2023, the company had net earnings of $11.4 million or $0.08 per share.

What initiatives did Aris Mining undertake in 2023 to enhance its operations?

In 2023, Aris Mining restructured its operations team, introduced new operating procedures, and achieved consistent quarter-over-quarter increases in gold production. The company integrated profitable operations with exploration potential and growth projects.

What is the expected increase in annual gold production at Segovia Operations after capacity expansion?

Aris Mining expects to increase annual gold production at Segovia Operations to over 300,000 ounces after increasing its processing capacity by 50% to 3,000 tonnes per day.