ARIS MINING REPORTS H1 2024 NET EARNINGS OF $5.0M, ADJUSTED EARNINGS OF $18.1M ($0.12/SHARE) AND EBITDA OF $53.2M WHILE SEGOVIA EXPANSION AND CONSTRUCTION OF MARMATO LOWER MINE REMAIN ON TRACK
Aris Mining has reported its financial results for H1 2024, highlighting net earnings of $5.0M, adjusted earnings of $18.1M ($0.12/share), and EBITDA of $53.2M. The company produced 99,983 ounces of gold during this period and is on track to meet the lower end of its annual gold production guidance of 220,000-240,000 ounces.
Notable projects include the expansion of the Segovia operations and construction of the Marmato Lower Mine, with the Segovia plant operating at its design capacity and set for further expansion by early 2025. The company invested $70M in growth projects, including $7.5M in exploration.
The Segovia operation's cash cost per ounce for owner mining was $1,222. For On-Title CMP operations, it was $1,174, with total project AISC expected to range from $1,400 to $1,500 per ounce. Construction of the Marmato Lower Mine is within budget and expected to cost $246M, partly funded by stream financing.
Future projects include the Soto Norte Project with a feasibility study expected in early 2025, targeting significant production increases by 2026.
Aris Mining ha riportato i risultati finanziari per il primo semestre del 2024, evidenziando un utile netto di 5,0 milioni di dollari, un utile rettificato di 18,1 milioni di dollari (0,12 dollari per azione) e un EBITDA di 53,2 milioni di dollari. Durante questo periodo, la compagnia ha prodotto 99.983 once d'oro ed è sulla buona strada per raggiungere il limite inferiore della guida annuale per la produzione d'oro di 220.000-240.000 once.
I progetti di rilievo includono l'espansione delle operazioni di Segovia e la costruzione della Miniera Inferiore di Marmato, con l'impianto di Segovia che funziona alla sua capacità progettuale e pronto per ulteriori espansioni entro inizio 2025. L'azienda ha investito 70 milioni di dollari in progetti di crescita, di cui 7,5 milioni in esplorazione.
Il costo in contante per oncia delle operazioni minerarie a conduzione autonoma di Segovia è stato di 1.222 dollari. Per le operazioni On-Title CMP, è stato di 1.174 dollari, con il costo totale del progetto AISC atteso tra 1.400 e 1.500 dollari per oncia. La costruzione della Miniera Inferiore di Marmato è entro il budget e si prevede che costerà 246 milioni di dollari, finanziata in parte mediante finanziamenti da streaming.
I progetti futuri includono il Progetto Soto Norte, con uno studio di fattibilità previsto per inizio 2025, mirato a significativi aumenti di produzione entro il 2026.
Aris Mining ha informado sus resultados financieros para el primer semestre de 2024, destacando ganancias netas de 5,0 millones de dólares, ganancias ajustadas de 18,1 millones de dólares (0,12 dólares por acción) y EBITDA de 53,2 millones de dólares. La compañía produjo 99,983 onzas de oro durante este período y está en camino de cumplir con el extremo inferior de su guía anual de producción de oro de 220,000-240,000 onzas.
Los proyectos notables incluyen la expansión de las operaciones de Segovia y la construcción de la Mina Inferior de Marmato, con la planta de Segovia operando a su capacidad de diseño y programada para una mayor expansión a principios de 2025. La empresa invirtió 70 millones de dólares en proyectos de crecimiento, incluyendo 7,5 millones en exploración.
El costo en efectivo por onza de las operaciones mineras propias de Segovia fue de 1,222 dólares. Para las operaciones de On-Title CMP, fue de 1,174 dólares, con un AISC total del proyecto que se espera que se sitúe entre 1,400 y 1,500 dólares por onza. La construcción de la Mina Inferior de Marmato está dentro del presupuesto y se espera que cueste 246 millones de dólares, financiada en parte mediante financiamiento por streaming.
Los proyectos futuros incluyen el Proyecto Soto Norte, con un estudio de viabilidad previsto para principios de 2025, que busca incrementos significativos en la producción para 2026.
Aris Mining은 2024년 상반기 재무 결과를 보고하며, 순이익 500만 달러, 조정 이익 1,810만 달러(주당 0.12 달러), EBITDA 5,320만 달러를 강조했습니다. 이 기간 동안 99,983 온스의 금을 생산하였으며, 연간 금 생산 목표인 220,000-240,000 온스의 하한 목표를 달성할 것으로 보입니다.
주요 프로젝트로는 세고비아(Segovia) 운영의 확장과 마르마토(Marmato) 하부 광산의 건설이 있으며, 세고비아 플랜트는 설계 용량으로 운영되고 있으며 2025년 초에 추가 확장될 예정입니다. 회사는 7천만 달러를 성장 프로젝트에 투자했으며, 이 중 750만 달러는 탐사에 사용되었습니다.
세고비아 운영의 자영업 채굴당 현금 비용은 1,222달러였고, 온타이틀 CMP 운영의 경우 1,174달러였으며, 전체 프로젝트 AISC는 온스당 1,400 - 1,500달러 범위를 예상하고 있습니다. 마르마토 하부 광산의 건설은 예산 내에서 진행되고 있으며, 비용은 2억 4,600만 달러로 예상되며 부분적으로 스트림 금융으로 지원됩니다.
미래 프로젝트로는 2025년 초에 실시될 예비 조사인 소토 노르테 프로젝트가 있으며, 2026년까지의 생산량 증가를 목표로 하고 있습니다.
Aris Mining a publié ses résultats financiers pour le premier semestre 2024, mettant en évidence un bénéfice net de 5,0 millions de dollars, un bénéfice ajusté de 18,1 millions de dollars (0,12 dollar par action) et un EBITDA de 53,2 millions de dollars. Au cours de cette période, la société a produit 99 983 onces d'or et est sur la bonne voie pour atteindre le seuil inférieur de son objectif annuel de production d'or de 220 000 à 240 000 onces.
Les projets notables incluent l'extension des opérations de Segovia et la construction de la mine inférieure de Marmato, avec l'usine de Segovia fonctionnant à sa capacité de conception et prévue pour une nouvelle expansion d'ici début 2025. L'entreprise a investi 70 millions de dollars dans des projets de croissance, dont 7,5 millions dans l'exploration.
Le coût en espèces par once pour l'exploitation minière autonome de Segovia a été de 1 222 dollars. Pour les opérations On-Title CMP, il a été de 1 174 dollars, avec un AISC total du projet prévu entre 1 400 et 1 500 dollars par once. La construction de la mine inférieure de Marmato est dans le budget et devrait coûter 246 millions de dollars, financée en partie par du financement par streaming.
Les projets futurs incluent le projet Soto Norte, avec une étude de faisabilité prévue début 2025, visant des augmentations significatives de production d'ici 2026.
Aris Mining hat seine finanziellen Ergebnisse für das erste Halbjahr 2024 veröffentlicht, mit einem Nettogewinn von 5,0 Millionen Dollar, einem bereinigten Gewinn von 18,1 Millionen Dollar (0,12 Dollar pro Aktie) und einem EBITDA von 53,2 Millionen Dollar. Während dieses Zeitraums produzierte das Unternehmen 99.983 Unzen Gold und ist auf Kurs, das untere Ende seiner jährlichen Goldproduktionsprognose von 220.000-240.000 Unzen zu erreichen.
Zu den bemerkenswerten Projekten gehören die Erweiterung der Segovia-Operationen und der Bau der Marmato-unteren Mine, wobei das Segovia-Werk mit seiner geplanten Kapazität betrieben wird und für eine weitere Erweiterung bis Anfang 2025 bereit ist. Das Unternehmen investierte 70 Millionen Dollar in Wachstumsprojekte, einschließlich 7,5 Millionen Dollar in Exploration.
Die Cashkosten pro Unze für den Eigenbergbau in Segovia lagen bei 1.222 Dollar. Für die On-Title-CMP-Betriebe lagen sie bei 1.174 Dollar, wobei die Gesamtkosten (AISC) des Projekts voraussichtlich zwischen 1.400 und 1.500 Dollar pro Unze liegen werden. Der Bau der Marmato-unteren Mine liegt im Budget und es wird erwartet, dass die Kosten 246 Millionen Dollar betragen, teilweise finanziert durch Stream-Finanzierungen.
Zukünftige Projekte umfassen das Soto Norte-Projekt mit einer Machbarkeitsstudie, die Anfang 2025 erwartet wird und signifikante Produktionssteigerungen bis 2026 anstrebt.
- Reported H1 2024 net earnings of $5.0M and adjusted earnings of $18.1M.
- Produced 99,983 ounces of gold, on track to meet annual guidance of 220,000-240,000 ounces.
- EBITDA of $53.2M for H1 2024.
- Investment of $70M in growth projects, including $7.5M in exploration.
- Segovia operations set for further expansion to 3,000 tpd by early 2025.
- Construction of Marmato Lower Mine progressing on schedule with a budget of $246M.
- Cash cost per ounce for Segovia operations increased to $1,222 for owner mining and $1,174 for On-Title CMP operations.
- Overall project AISC guidance raised to $1,400-$1,500 per ounce, up from previous guidance of $1,225-$1,325.
- Higher purchase and processing costs for Third-Party CMP operations, increasing by 29% in Q2 2024.
Insights
Aris Mining's H1 2024 results show mixed performance. Net earnings of $5.0M and adjusted earnings of $18.1M ($0.12/share) indicate profitability, but lower than ideal. EBITDA of $53.2M suggests decent operational efficiency. The company is on track to meet the lower end of its 2024 gold production guidance of 220,000 to 240,000 ounces.
Key points:
- Cash costs increased due to higher gold prices, now projected at
$1,125 to$1,225 per ounce - AISC guidance raised to
$1,400 to$1,500 per ounce - Segovia expansion and Marmato Lower Mine construction progressing as planned
$246M estimated cost to complete Marmato Lower Mine, with$122M from stream financing
While current performance is moderate, the expansion projects could significantly boost future production and profitability if executed successfully.
Aris Mining's strategic focus on expansion is promising but comes with execution risks. The Segovia expansion to 3,000 tonnes per day by early 2025 could boost production to over 300,000 ounces annually. The Marmato Lower Mine project aims for 162,000 ounces per year over a 20-year life.
Key observations:
- Segovia's grade of 9.3 g/t Au remains high by industry standards
- Contract Mining Partners (CMP) model provides community engagement and flexible cost structure
- Acquisition of 51% stake in Soto Norte project adds potential future growth
- Toroparu project in Guyana diversifies geographical risk
The company's target of 500,000 ounces annually by H2 2026 is ambitious but achievable if projects are executed well. However, investors should monitor capital expenditure and potential cost overruns closely.
Aris Mining's performance should be viewed in the context of the gold market. With gold prices averaging $2,308 per ounce in Q2, the company's increased costs are partially offset by higher revenues. The market outlook remains favorable for gold producers.
Investor considerations:
- Production growth potential could attract growth-oriented investors
- High-grade deposits at Segovia provide cost advantages
- Diversification across Colombia and Guyana mitigates country-specific risks
- Stream financing for Marmato reduces capital burden
The stock may appeal to investors seeking exposure to gold with a growth story. However, execution risks and capital needs for multiple projects simultaneously could pressure short-term financials. The company's ability to manage costs and deliver on expansion plans will be important for stock performance.
All amounts are expressed in US dollars unless otherwise indicated.
Q2 2024 | Q1 2024 | H1 2024 | |
Gold production (ounces) ( | 49,216 | 50,768 | 99,983 |
EBITDA1 | |||
Adjusted EBITDA1 | |||
Net earnings (loss) | |||
Adjusted earnings1 |
Neil Woodyer, CEO of Aris Mining, commented: "Amid favorable gold prices, Aris Mining reported EBITDA of
In H1 2024, we processed relatively lower grade material at
Meanwhile, construction of the Marmato Lower Mine is advancing on schedule. As of the end of June 2024, the estimated cost to complete the Lower Mine construction stood at
__________________________ |
1 EBITDA, adjusted EBITDA, adjusted (net) earnings and AISC are non-GAAP financial measures in this document. These measures do not have any standardized meaning prescribed under GAAP, and therefore may not be comparable to other issuers. Refer to the Non-GAAP Measures section in this document for a reconciliation of these measures to the most directly comparable financial measure disclosed in the Company's interim financial statements. |
Segovia Operations Review
At the Segovia Operations in Q2 2024, the cash cost per ounce was
Similarly, the purchase and processing costs per ounce for material delivered by Third-Party CMPs, who operate off-title, increased by
Segovia Operating Information by Segment | Q2 2024 | Q1 2024 | % Change | H1 2024 | ||
Owner Mining & On-title CMPs | ||||||
Gold produced (ounces) | 36,400 | 39,915 | (9) % | 76,315 | ||
Gold sold (ounces) | 36,117 | 40,253 | (10) % | 76,370 | ||
Cash cost per ounce sold - owner ($ per oz sold)1 | 1,222 | 1,192 | 3 % | 1,206 | ||
Cash cost per ounce sold - on-title CMPs ($ per oz sold)1 | 1,174 | 1,061 | 11 % | 1,114 | ||
AISC/oz sold - owner & on-title CMPs ($ per oz sold)1 | 1,527 | 1,439 | 6 % | 1,481 | ||
AISC sales margin (%)1,2 | 34 % | 30 % | 32 % | |||
AISC margin ($'000)1 | 28,388 | 25,064 | 13 % | 53,452 | ||
Third-Party Purchased Material (Off-title CMPs) | ||||||
Gold produced (ounces) | 7,305 | 4,993 | 46 % | 12,298 | ||
Gold sold (ounces) | 7,248 | 5,036 | 44 % | 12,284 | ||
Purchase & processing cost per ounce ($ per oz sold)1 | 1,790 | 1,386 | 29 % | 1,625 | ||
Third-Party sales margin (%)1,2 | 23 % | 33 % | 26 % | |||
Third-Party sales margin ($'000)1,2 | 3,785 | 3,403 | 11 % | 7,189 |
1 | Non-GAAP financial measures, refer to the Non-GAAP Measures section for a full reconciliation to the most directly comparable financial measure disclosed in the Interim Financial Statements. |
2 | Sales margin is calculated as AISC margin over revenues as disclosed above, sales margin is considered by management to be a useful metric of the operations' profitability. |
Total Segovia Operating Information | Q2 2024 | Q1 2024 | % Change | H1 2024 |
Average realized gold price ($/ounce sold) | 2,308 | 2,061 | 12 % | 2,185 |
Tonnes milled (t) | 155,912 | 154,425 | 1 % | 310,337 |
Average tonnes milled per day (tpd) | 1,834 | 1,817 | 1 % | 1,826 |
Average gold grade processed (g/t) | 9.14 | 9.42 | (3) % | 9.28 |
Gold produced (ounces) | 43,705 | 44,908 | (3) % | 88,613 |
Cash costs ($/ounce sold)1 | 1,299 | 1,162 | 12 % | 1,229 |
AISC – total ($/ounce sold)1 | 1,571 | 1,434 | 10 % | 1,501 |
1 | Non-GAAP financial measures, refer to the Non-GAAP Measures section for a full reconciliation to the most directly comparable financial measure disclosed in the Interim Financial Statements. |
Segovia Cash Cost and AISC Outlook
Forecasting full-year costs is challenging due to the direct link between CMP costs and the price of gold, which is used to determine the mill-feed purchase cost. However, the CMP business model is designed to maintain relatively stable margins while we grow gold production and strengthen our community relationships. Considering H1 2024 results, the expectation of continued inflationary cost pressures, and the potential for higher gold prices, we now anticipate cash costs per ounce at
Segovia Expansion Project
- As announced in Q4 2023, the
Segovia expansion project aims to increase processing capacity from 2,000 to 3,000 tonnes per day and is progressing as scheduled - Overall engineering work is
85% complete - The manufacturing of the new ball mill was completed on time, and final payment has been made. The new ball mill is expected to be delivered to site in September
- Construction progress includes the installation of concrete retaining walls, foundations for new equipment and the CMP receiving facilities, and assembly of the conveyor belts
- Additional work on the foundations and capital expenditures have increased the overall budget to
$15 million - Once the expansion is complete in early 2025, and following a ramp up period,
Segovia is expected to produce over 300,000 ounces of gold per year
Marmato Lower Mine Expansion
- Aris Mining commenced construction of the new Marmato Lower Mine in Q3 2023 following the receipt of environmental permits in July 2023. The Lower Mine will access wider porphyry mineralization below the Upper Mine, with both mines estimated to produce a combined 162,000 ounces of gold per year over a 20-year mine life2
- Detailed design and engineering of the process facility are over
90% complete. Manufacturing of the process plant equipment ordered in Q1 2024 is progressing on schedule, with long lead items on track to meet contractual delivery dates - The portal development is ahead of schedule, with completion expected by the end of August 2024. The contractor selected for the twin decline is preparing equipment for mobilization
- Preparation of the access road to the processing plant is progressing well and asphalting commenced in August 2024
- Design and engineering of the power supply to the mine and process plant are complete and the land rights acquisition process continues for the main power line
- Design of the paste plant and water treatment plant are underway
- As of end of June 2024, the estimated cost to complete the Lower Mine construction was
$246 million $122 million $124 million
_________________________________ | |
2 | Refer to the pre-feasibility study on the Marmato Lower Mine Project with an effective date of June 30, 2022, see Section "Qualified Person and Technical Disclosure" |
Marmato Lower Mine – Construction Budget
$ million | |
Construction spend (August 2023 to June 2024)1 | 34 |
Estimated cost to complete (as of June 30, 2024) | 246 |
Total construction budget | 280 |
Remaining stream funding | 122 |
Remaining net construction budget | 124 |
1 Relates to costs directly associated with the construction of the plant, mining and other surface infrastructure of the Marmato Lower Mine Project, exclusive of costs associated with other ancillary activities supporting the wider Marmato Mine complex. |
Soto Norte Project (PSN)
- On June 28, 2024, the Company completed the acquisition of an additional
31% interest in PSN, increasing its total ownership to51% , with Mubadala retaining a49% interest in PSN and becoming a9.3% shareholder of Aris Mining - In 2023, Aris Mining completed a technical and economic assessment of PSN that considered a scaled-down mining concept with optimizations including: (i) reducing the environmental footprint; (ii) building a smaller processing plant with a longer operating life; (iii) adopting a flexible mining method to target higher-grade material earlier in the mine life; (iv) installing a paste backfill plant to minimize surface tailings storage requirements; and (v) replacing the 6.9 km tunnel to connect the mine and the processing plant site with a rope conveyor
- The PSN development team is being integrated into the Company's management structure and procedures. The Company will sole fund certain operating costs during the pre-licensing period, with non-operating and project construction costs funded on a pro-rata ownership basis
- Local CMPs will be integrated into the new PSN design and development plan
- Feasibility level studies are underway, with results expected in early 2025
Toroparu Project
- Aris Mining continues to advance the Toroparu project, including analysis of the available options for power generation and access routes to the project and order of magnitude studies on the associated capital and operating costs
- We have submitted all documentation required to renew our Environmental License at Toroparu for a further term of five years and expect to receive approval from the Guyana Environmental Protection Agency shortly
Cash Flow Generation
( | Q2 2024 | Q1 2024 | H1 2024 |
Gold Revenue | |||
Total cash cost1 | (69,775) | (64,811) | (134,586) |
Royalties | (4,204) | (4,092) | (8,296) |
Social contributions | (2,271) | (3,455) | (5,726) |
Sustaining exploration1 | (2,006) | (990) | (2,996) |
Sustaining capital - other1 | (5,364) | (6,836) | (12,200) |
All in sustaining cost (AISC) 1 | (83,620) | (80,184) | (163,804) |
AISC Margin | 30,550 | 25,006 | 55,556 |
Taxes paid2 | (8,497) | — | (8,497) |
General and administration expense2 | (2,053) | (4,207) | (6,260) |
Increase in VAT receivable | (8,345) | (9,090) | (17,435) |
Other changes in working capital | (1,781) | (17,816) | (19,596) |
Impact of foreign exchange losses on cash balances2 | (2,240) | (322) | (2,562) |
Cash flow from operations | 7,634 | (6,429) | 1,206 |
Expansion and growth capital expenditure1 at: | |||
Marmato Upper Mine | (1,046) | (1,878) | (2,924) |
Marmato Lower Mine | (19,143) | (14,865) | (34,008) |
Regional exploration | (4,518) | (2,951) | (7,469) |
Segovia Operations | (11,765) | (8,472) | (20,238) |
Toroparu Project | (2,079) | (1,939) | (4,018) |
Corporate | (1,112) | — | (1,112) |
Total expansion and growth capital | (39,663) | (30,105) | (69,769) |
Cash flow from operations after expansion capital | (32,029) | (36,534) | (68,563) |
Proceeds from warrant/option exercises2 | 16,827 | 7,671 | 24,498 |
Principal repayment of Gold Notes2 | (3,695) | (3,694) | (7,389) |
Net transaction costs from Soto Norte Acqusition2 | (834) | — | (834) |
Capitalized interest paid2 | (3,549) | (2,594) | (6,143) |
Repayment of convertible debenture2 | (1,325) | — | (1,325) |
Interest (paid) received - net | 35 | (10,598) | (10,563) |
Total financial and other costs | 7,459 | (9,215) | (1,756) |
Cash flow after expansion capital, financing and other costs | (24,570) | (45,749) | (70,319) |
Cash contributions to investment in associate2 | (1,270) | (1,376) | (2,646) |
Net change in cash2 | (25,840) | (47,125) | (72,965) |
Opening cash balance at beginning of period2 | 147,497 | 194,622 | 194,622 |
Closing cash balance at end of period2 |
1. | Refer to the Non-GAAP Measures section for full details on cash costs ($ per oz sold), AISC ($ per oz sold), and additions to mining interests split by nature and site. |
2. | As presented in the Interim Financial Statements and notes for the respective periods. |
Aris Mining's condensed consolidated interim financial statements for the three and six months ended June 30, 2024 and related MD&A are available on SEDAR+, in the Company's filings with the
Q2 2024 Conference Call Details
Management will host a conference call on Wednesday, August 14, 2024, at 9:00 am ET/6:00 am PT to discuss the results. The call will be webcast and can be accessed at Aris Mining's website at www.aris-mining.com, or at Webcast | Q2 2024 Results Conference Call (choruscall.com).
Participants may gain expedited access to the conference call by registering at Diamond Pass Registration (dpregister.com). Upon registering, call in details will be displayed on screen which can be used to bypass the operator and avoid the call queue. Registration will remain open until the end of the live conference call.
Participants who prefer to dial-in and speak with a live operator, can access the call by dialing:
- Toll-free
North America : +1-844-763-8274 - International: +1-647-484-8814
After the call, an audio recording will be available via telephone until end of day August 21, 2024. The recording can be accessed by dialing:
- Toll-free in the US and
Canada : +1-877-344-7529 - International: +1-855-669-9658; and using the access code: 3164349
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
Aris Mining intends to pursue acquisitions and other growth opportunities to unlock value through scale and diversification. Aris Mining promotes the formalization of traditional miners into contract mining partners 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, www.sedarplus.ca, and on www.sec.gov.
Cautionary Language
Non-GAAP Financial 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-GAAP financial measures and non-GAAP ratios. These measures do not have any standardized meaning prescribed under IFRS or by Generally Accepted Accounting Principles (GAAP) in
The tables below reconcile the non-GAAP 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 Q2 2024 interim financial statements.
Cash costs per ounce
Reconciliation of total cash costs by business unit at the Segovia Operations to the cash costs as disclosed above.
Three months ended June 30, 2024 | Three months ended June 30, 2023 | |||||
( | Marmato | Total | Marmato | Total | ||
Total gold sold (ounces) | 43,366 | 6,103 | 49,469 | 48,381 | 5,847 | 54,228 |
Cost of sales1 | 62,282 | 14,712 | 76,994 | 51,030 | 11,917 | 62,947 |
Less: royalties1 | (3,078) | (1,126) | (4,204) | (3,488) | (1,127) | (4,615) |
Add: by-product revenue1 | (2,862) | (153) | (3,015) | (2,755) | (322) | (3,077) |
Total cash costs | 56,342 | 56,342 | 69,775 | 44,787 | 10,468 | 55,255 |
Total cash costs ($ per oz gold sold) | ||||||
Total cash cost including royalties | 59,420 | 48,275 | ||||
Total cash cost including royalties ($ per oz gold sold) | ||||||
Six months ended June 30, 2024 | Six months ended June 30, 2023 | |||||
( | Marmato | Total | Marmato1 | Total | ||
Total gold sold (ounces) | 88,654 | 11,860 | 100,513 | 93,289 | 10,097 | 103,386 |
Cost of sales1 | 120,231 | 28,096 | 148,327 | 95,113 | 21,539 | 116,652 |
Less: royalties1 | (6,086) | (2,210) | (8,296) | (6,148) | (1,877) | (8,025) |
Add: by-product revenue1 | (5,180) | (265) | (5,445) | (7,632) | (488) | (8,120) |
Less: other adjustments | — | — | — | — | 77 | 77 |
Total cash costs | 108,965 | 25,621 | 134,586 | 81,333 | 19,251 | 100,584 |
Total cash costs ($ per oz gold sold) | ||||||
Total cash cost including royalties | 115,051 | 87,481 | ||||
Total cash cost including royalties ($ per oz gold sold) | ||||||
Three months ended March 31, 2024 | ||||||
( | Marmato | Total | ||||
Total gold sold (ounces) | 45,288 | 5,756 | 51,044 | |||
Cost of sales1 | 57,949 | 13,384 | 71,333 | |||
Less: royalties1 | (3,008) | (1,084) | (4,092) | |||
Add: by-product revenue1 | (2,318) | (112) | (2,430) | |||
Total cash costs | 52,623 | 12,188 | 64,811 | |||
Total cash costs ($ per oz gold sold) | ||||||
Total cash cost including royalties | 55,631 | |||||
Total cash cost including royalties ($ per oz gold sold) | ||||||
1 As presented in the Interim Financial Statements and notes thereto for the respective periods. | ||||||
Three months ended June 30, 2024 | Three months ended June 30, 2023 | |||||||
( | Owner | On-title | Off-title | Total | Owner | On-title | Off-title | Total |
Total gold sold (ounces) | 20,182 | 15,935 | 7,248 | 43,365 | 27,169 | 14,686 | 6,526 | 48,381 |
Cost of sales1 | 28,530 | 20,774 | 12,977 | 62,282 | 24,057 | 16,999 | 9,974 | 51,030 |
Less: royalties1 | (1,720) | (1,358) | — | (3,078) | (2,264) | (1,224) | — | (3,488) |
Add: by-product revenue1 | (2,151) | (711) | — | (2,862) | (2,003) | (752) | — | (2,755) |
Total cash costs | 24,659 | 18,705 | 12,977 | 56,342 | 19,790 | 15,023 | 9,974 | 44,787 |
Total cash costs ($ per oz gold sold) | ||||||||
Six months ended June 30, 2024 | Six months ended June 30, 2023 | |||||||
( | Owner | On-title | Off-title | Total | Owner | On-title | Off-title | Total |
Total gold sold (ounces) | 42,628 | 33,742 | 12,283 | 88,653 | 52,120 | 29,011 | 12,158 | 93,289 |
Cost of sales1 | 58,613 | 41,659 | 19,957 | 120,231 | 43,939 | 33,873 | 17,300 | 95,113 |
Less: royalties1 | (3,397) | (2,689) | — | (6,086) | (3,954) | (2,194) | — | (6,148) |
Add: by-product revenue1 | (3,813) | (1,367) | — | (5,180) | (5,530) | (2,102) | — | (7,632) |
Total cash costs | 51,403 | 37,604 | 19,957 | 108,965 | 34455 | 29,577 | 17,300 | 81,333 |
Total cash costs ($ per oz gold sold) | ||||||||
Three months ended March 31, 2024 | ||||||||
( | Owner | On-title | Off-title | Total | ||||
Total gold sold (ounces) | 22,446 | 17,807 | 5,035 | 45,287 | ||||
Cost of sales1 | 30,083 | 20,885 | 6,980 | 57,948 | ||||
Less: royalties1 | (1,677) | (1,331) | — | (3,008) | ||||
Add: by-product revenue1 | (1,663) | (655) | — | (2,318) | ||||
Total cash costs | 26,744 | 18,899 | 6,980 | 52,622 | ||||
Total cash costs ($ per oz gold sold) | ||||||||
1 As presented in the Interim Financial Statements and notes thereto for the respective periods. | ||||||||
All-in sustaining costs (AISC)
Reconciliation of total AISC by business unit at the Segovia Operations to the AISC as disclosed above.
Three months ended June 30, 2024 | Three months ended June 30, 2023 | |||||
( | Marmato | Total | Marmato | Total | ||
Total gold sold (ounces) | 43,365 | 6,103 | 49,468 | 48,381 | 5,847 | 54,228 |
Total cash costs | 56,342 | 13,433 | 69,775 | 44,787 | 10,468 | 55,255 |
Add: royalties1 | 3,078 | 1,126 | 4,204 | 3,488 | 1,127 | 4,615 |
Add: social programs1 | 2,120 | 151 | 2,271 | 2,419 | 247 | 2,666 |
Add: sustaining capital expenditures | 6,224 | 782 | 7,006 | 2,450 | 1,362 | 3,812 |
Add: lease payments on sustaining capital | 364 | — | 364 | 588 | — | 588 |
Total AISC | 68,128 | 15,492 | 83,620 | 53,732 | 13,204 | 66,936 |
Total AISC ($ per oz gold sold) | ||||||
Six months ended June 30, 2024 | Six months ended June 30, 2023 | |||||
( | Marmato | Total | Marmato | Total | ||
Total gold sold (ounces) | 88,653 | 11,860 | 100,513 | 93,289 | 10,097 | 103,386 |
Total cash costs | 108,965 | 25,621 | 134,586 | 81,333 | 19,251 | 100,584 |
Add: royalties1 | 6,086 | 2,210 | 8,296 | 6,148 | 1,877 | 8,025 |
Add: social programs1 | 4,409 | 1,317 | 5,726 | 4,823 | 247 | 5,070 |
Add: sustaining capital expenditures | 12,720 | 1,606 | 14,326 | 9,782 | 1,897 | 11,679 |
Add: lease payments on sustaining capital | 870 | — | 870 | 1,243 | — | 1,243 |
Total AISC | 133,050 | 30,754 | 163,804 | 103,329 | 23,272 | 126,601 |
Total AISC ($ per oz gold sold) | ||||||
Three months ended March 31, 2024 | ||||||
( | Marmato | Total | ||||
Total gold sold (ounces) | 45,288 | 5,756 | 51,044 | |||
Total cash costs | 52,623 | 12,188 | 64,811 | |||
Add: royalties1 | 3,008 | 1,084 | 4,092 | |||
Add: social programs1 | 2,289 | 1,166 | 3,455 | |||
Add: sustaining capital expenditures | 6,496 | 824 | 7,320 | |||
Add: lease payments on sustaining capital | 506 | — | 506 | |||
Total AISC | 64,922 | 15,262 | 80,184 | |||
Total AISC ($ per oz gold sold) | ||||||
1 As presented in the Interim Financial Statements and notes thereto for the respective periods. |
Three months ended June 30, 2024 | Three months ended June 30, 2023 | |||||
( | Owner Mining | Off-title CMP | Total | Owner Mining | Off-title CMP | Total |
Total gold sold (ounces) | 36,117 | 7,248 | 43,365 | 41,855 | 6,526 | 48,381 |
Total cash costs | 43,364 | 12,977 | 56,341 | 34,813 | 9,974 | 44,787 |
Add: royalties1 | 3,078 | — | 3,078 | 3,488 | — | 3,488 |
Add: social programs1 | 2,120 | — | 2,120 | 2,419 | — | 2,419 |
Add: sustaining capital expenditures | 6,224 | — | 6,224 | 2,450 | — | 2,450 |
Add: lease payments on sustaining capital | 364 | — | 364 | 588 | — | 588 |
Total AISC | 55,150 | 12,977 | 68,127 | 43,758 | 9,974 | 53,731 |
Total AISC ($ per oz gold sold) | ||||||
Six months ended June 30, 2024 | Six months ended June 30, 2023 | |||||
( | Owner Mining | Off-title CMP | Total | Owner Mining | Off-title CMP | Total |
Total gold sold (ounces) | 76,370 | 12,283 | 88,652 | 81,131 | 12,158 | 93,289 |
Total cash costs | 89,007 | 19,957 | 108,964 | 64,032 | 17,300 | 81,332 |
Add: royalties1 | 6,086 | — | 6,086 | 6,148 | — | 6,148 |
Add: social programs1 | 4,409 | — | 4,409 | 4,823 | — | 4,823 |
Add: sustaining capital expenditures | 12,720 | — | 12,720 | 9,782 | — | 9,782 |
Add: lease payments on sustaining capital | 870 | — | 870 | 1,244 | — | 1,244 |
Total AISC | 113,092 | 19,957 | 133,049 | 86,028 | 17,300 | 103,328 |
Total AISC ($ per oz gold sold) | ||||||
Three months ended March 31, 2024 | ||||||
( | Owner Mining | Off-title CMP | Total | |||
Total gold sold (ounces) | 40,253 | 5,035 | 45,287 | |||
Total cash costs | 45,643 | 6,980 | 52,623 | |||
Add: royalties1 | 3,008 | — | 3,008 | |||
Add: social programs1 | 2,289 | — | 2,289 | |||
Add: sustaining capital expenditures | 6,496 | — | 6,496 | |||
Add: lease payments on sustaining capital | 506 | — | 506 | |||
Total AISC | 57,942 | 6,980 | 64,922 | |||
Total AISC ($ per oz gold sold) | ||||||
1 As presented in the Interim Financial Statements and notes thereto for the respective periods. |
Additions to mineral interests, plant and equipment
Three months ended, | Six months ended, | ||||
($'000) | June 30, 2024 | March 31, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 |
Sustaining capital | |||||
Segovia Operations | 6,224 | 6,496 | 2,450 | 12,720 | 9,782 |
Marmato Upper Mine | 782 | 824 | 1,362 | 1,606 | 1,897 |
Total | 7,006 | 7,320 | 3,812 | 14,326 | 11,679 |
Non-sustaining capital | |||||
Segovia Operations | 16,284 | 11,023 | 7,638 | 27,307 | 10,279 |
Toroparu Project | 2,079 | 1,939 | 4,625 | 4,018 | 9,315 |
Marmato Lower Mine | 19,143 | 14,865 | 6,126 | 34,008 | 10,007 |
Marmato Upper Mine | 1,046 | 2,278 | 645 | 3,324 | 1,326 |
Juby Project | 1 | 3 | — | 4 | 33 |
Total | 38,553 | 30,108 | 19,034 | 68,661 | 30,960 |
Corporate Assets | 3,895 | 3,895 | |||
Additions to mining interest, plant and equipment1 | 49,454 | 37,428 | 22,846 | 86,882 | 42,639 |
1. As presented in the Interim Financial Statements and notes thereto for the respective periods. | |||||
Earnings before interest, taxes, depreciation, and amortization (EBITDA) and adjusted EBITDA
Three months ended, | Six months ended, | ||||
( | June 30, 2024 | March 31, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 |
Earnings (loss) before tax1 | 17,904 | 10,310 | 18,925 | 28,215 | 24,707 |
Add back: | |||||
Depreciation and depletion1 | 8,082 | 7,519 | 8,825 | 15,601 | 16,471 |
Finance income1 | (1,691) | (2,246) | (2,358) | (3,937) | (4,531) |
Interest and accretion1 | 6,496 | 6,803 | 6,746 | 13,299 | 15,627 |
EBITDA | 30,791 | 22,386 | 32,138 | 53,178 | 52,274 |
Add back: | |||||
Share-based compensation1 | 1,373 | 1,842 | 459 | 3,215 | 1,606 |
Revaluation of investment in Denarius1 | — | — | 10,023 | — | 10,023 |
(Income) loss from equity accounting in investee1 | 2,301 | 552 | 1,427 | 2,853 | 4,668 |
(Gain) loss on financial instruments1 | 6,144 | 3,742 | (11,756) | 9,886 | 23 |
Other (income) expense1 | 2,681 | - | 35 | 2,681 | (49) |
Foreign exchange (gain) loss1 | (7,211) | (109) | 7,236 | (7,321) | 9,580 |
Adjusted EBITDA | 36,079 | 28,413 | 39,562 | 64,492 | 78,125 |
1. As presented in the Interim Financial Statements and notes for the respective periods. |
Adjusted net earnings and adjusted net earnings per share
Three months ended, | Six months ended, | ||||
( | June 30, 2024 | March 31, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 |
Basic weighted average shares outstanding | 151,474,859 | 138,381,653 | 136,229,686 | 144,928,253 | 136,616,968 |
Net loss1 | 5,713 | (744) | 9,900 | 4,970 | 3,530 |
Add back: | |||||
Share-based compensation1 | 1,373 | 1,842 | 459 | 3,215 | 1,606 |
Revaluation of investment in Denarius1 | — | — | 10,023 | — | 10,023 |
(Income) loss from equity accounting in investee1 | 2,301 | 552 | 1,427 | 2,853 | 4,668 |
(Gain) loss on financial instruments1 | 6,144 | 3,742 | (11,756) | 9,886 | 23 |
Other (income) expense1 | 2,681 | - | 35 | 2,681 | (49) |
Foreign exchange (gain) loss1 | (7,211) | (109) | 7,236 | (7,321) | 9,580 |
Income tax effect on adjustments | 1,738 | 78 | (2,453) | 1,816 | (3,417) |
Adjusted net (loss) / earnings | 12,739 | 5,361 | 14,872 | 18,100 | 25,964 |
Per share – basic ($/share) | 0.08 | 0.04 | 0.11 | 0.12 | 0.19 |
1. As presented in the Interim Financial Statements and notes for the respective periods. |
Qualified Person and Technical Information
Pamela De Mark, P.Geo., Senior Vice President Geology and Exploration of Aris Mining, is a Qualified Person as defined by National Instrument 43-101 (NI 43-101), and has reviewed and approved the technical information contained in this news release.
Unless otherwise indicated, the scientific disclosure and technical information included in this news release is based upon information included in the NI 43-101 compliant technical report entitled "Technical Report for the Marmato Gold Mine, Caldas Department,
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 2024 production guidance and the belief that it is on track to meet such guidance, the Company's exploration results, the Segovia Operations being on track for expansion to 3000 tpd by early 2025, the Company's updated cost guidance, the Company's expected source of funds and the timing thereof, the development and expansion projects at the Segovia Operations, the Marmato Mine the Soto Norte Project and the Toroparu Project and the plans, details, costs and timings thereof, the 2026 targeted annual production rate, the feasibility level study at the Soto Norte Project 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". 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.
This news release contains information that may constitute future-orientated financial information or financial outlook information (collectively, FOFI) about the Company's prospective financial performance, financial position or cash flows, all of which is subject to the same assumptions, risk factors, limitations and qualifications as set forth above. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise or inaccurate and, as such, undue reliance should not be placed on FOFI. The Company's actual results, performance and achievements could differ materially from those expressed in, or implied by, FOFI. The Company has included FOFI in order to provide readers with a more complete perspective on the Company's future operations and management's current expectations relating to the Company's future performance. Readers are cautioned that such information may not be appropriate for other purposes. FOFI contained herein was made as of the date of this news release. Unless required by applicable laws, the Company does not undertake any obligation to publicly update or revise any FOFI statements, whether as a result of new information, future events or otherwise.
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FAQ
What are Aris Mining's H1 2024 net earnings?
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What are the updated cash cost and AISC guidance for Segovia in 2024?
What is the expected production capacity after the Segovia expansion?
What is the budget for the Marmato Lower Mine construction?
