ARIS MINING REPORTS H1 2024 PRODUCTION, PROVIDES EXPANSION PROJECTS UPDATE AND REAFFIRMS FULL YEAR 2024 GUIDANCE
Aris Mining (TSX: ARIS) (NYSE-A: ARMN) reports gold production of 99,983 ounces for H1 2024, with 88,613 ounces from Segovia and 11,370 ounces from Marmato Upper Mine. The company is on track to meet the lower end of its full-year production guidance of 220,000 to 240,000 ounces. Aris Mining is progressing with expansion projects at Segovia and Marmato, targeting an annual production run-rate of approximately 500,000 ounces by H2 2026. The Segovia expansion will increase capacity to 300,000 ounces annually, with completion expected in early 2025. The Marmato Lower Mine project is on track for first gold pour by end of 2025. Aris Mining has also increased its ownership in the Soto Norte project to 51%, with feasibility studies underway for a new development plan.
- On track to meet lower end of full-year production guidance (220,000-240,000 oz)
- Segovia expansion to increase capacity by 50% (2,000 tpd to 3,000 tpd)
- Marmato Lower Mine project progressing with $30M spent out of $280M budget
- Increased ownership in Soto Norte project to 51%
- Targeting annual production run-rate of 500,000 oz by H2 2026
- H1 2024 gold production (99,983 oz) lower than H1 2023 (104,906 oz)
- Segovia Operations moving through relatively low-grade zones
Aris Mining's H1 2024 production report provides critical insights into its operational performance and future growth trajectory. For the first half of 2024, the company reported gold production of 99,983 ounces, a slight drop from the 104,906 ounces produced during the same period last year. This decline can be attributed primarily to operations in lower-grade zones, yet the company remains on track to meet the lower end of its full-year guidance of 220,000 to 240,000 ounces.
Key financial highlights: The company has made significant investments in its expansion projects. At Segovia, they are expanding the processing plant's capacity by 50%, which will enable an annual production of 300,000 ounces of gold by early 2025. This expansion requires a capital investment of $15 million, projected to yield a strong return on invested capital.
At Marmato, the Lower Mine project, with a total budget of $280 million, is progressing as planned. They have already spent $30 million and the remaining $250 million will be partially funded through stream financing. Achieving the capital expenditure milestones will unlock additional funding, essential for the project's timely completion.
In summary, while the slight decline in H1 production might cause short-term concern, the strategic investments and expansions are poised to yield significant long-term benefits. Investors should closely monitor these developments and the upcoming Q2 financial results for more detailed insights.
Aris Mining is making strategic operational and financial moves to bolster its future production capacity. The company's focus on higher-grade zones at Segovia and the expansion of processing capacities are important steps. Expanding throughput capacity at Segovia from 2,000 tpd to 3,000 tpd will significantly enhance production efficiency, allowing them to reach their target of 300,000 ounces annually.
The update on the Marmato Lower Mine project shows the company’s commitment to capital-intensive, high-reward projects. The transition to contract mining at the Upper Mine, similar to the Segovia model, is expected to streamline operations and reduce operational uncertainties.
Soto Norte's acquisition: Aris Mining now owns 51% of the project, positioning it well for future growth. The feasibility studies for a new, smaller scale development plan are expected to provide additional clarity and potential upside.
Overall, these strategic initiatives indicate a robust growth plan, aligning well with the industry's focus on efficiency and scalability. Investors should weigh the long-term potential against the short-term production dips.
Neil Woodyer, CEO of Aris Mining, commented "Our Segovia processing facilities performed well during Q2, consistently achieving over 2,000 tonnes per day (tpd) of throughput. As previously disclosed, the Segovia Operations were moving through relatively low-grade zones in the production schedule, and higher-grade zones are now being mined.
During the second quarter we made meaningful progress with our expansion projects at
At
At Marmato, as at the end of May 2024, we have spent
At Soto Norte, we now own
We are excited about the transformational near-term growth we will deliver over the next two years through the
Q2 2024 Financial Results
Aris Mining will announce its full Q2 2024 financial results after market close on Tuesday, August 13, 2024. Management will host a conference call on Wednesday, August 14, 2024, at 9:00 am ET / 6:00 am PT to discuss those financial results. The call will be webcast and can be accessed at Aris Mining's website at https://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
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
International: +1-855-669-9658; and using the access code: 3164349
A replay of the webcast will be archived in the Events and Presentations page of our website.
About Aris Mining
Aris Mining is a gold producer in the
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.
Technical Disclosure and Qualified Person
The technical information in this news release was reviewed and approved by Pamela De Mark, P.Geo, Senior Vice President, Geology and Exploration of Aris Mining, who is a Qualified Person as defined by NI 43-101. Unless otherwise indicated, the scientific disclosure and technical information included in this news release are based upon information included in the NI 43-101 compliant technical reports listed below and are available for review on SEDAR+ at www.sedarplus.ca, on the Company's website at www.aris-mining.com, and in the Company's filings with the
- "NI 43-101 Technical Report for the Segovia Operations, Antioquia,
Colombia " dated December 6, 2023, with an effective date of September 30, 2023, and prepared by Pamela De Mark, P.Geo., Inivaldo Diaz, CP, and Cornelius Lourens, FAusIMM. - "Technical Report for the Marmato Gold Mine, Caldas Department,
Colombia , Pre-Feasibility Study of the Lower Mine Expansion Project" dated November 23, 2022 with an effective date of June 30, 2022 and prepared by Ben Parsons, MAusIMM (CP), Anton Chan, Peng, Brian Prosser, PE, SME-RM, Joanna Poeck, PE, SME-RM, Eric J. Olin, SME-RM, MAusIMM, Fredy Henriquez, SME-RM, ISRM, David Hoekstra, PE, NCEES, SME-RM, Mark Allan Willow, CEM, SME-RM, Vladimir Ugorets, MMSA, Colleen Crystal, PE, GE, Kevin Gunesch, PE, Tommaso Roberto Raponi, PEng, David Bird, PG and Pamela De Mark, P.Geo.
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 remaining on-track to deliver full year 2024 production guidance, plans to progress to higher grade zones at the Segovia Operations, the Company being in position to produce 500,000 ounces in 2026, the details of and expected production at the Segovia Operations after completion of the expansion project, the Marmato Lower Mine expansion project and the details, benefits and timing thereof, expected achievement of the stream financing milestones, transitioning of Upper Mine operations to the CMPs, the release of the Q2 2024 financial results 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. These factors should be considered carefully, and readers should not place undue reliance on the Company's forward-looking statements. The Company has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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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SOURCE Aris Mining Corporation
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