Uncategorized
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
Aris Mining Corporation (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.
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.
Posted March 8, 2024
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