Aris Gold Corporation (TSX: ARIS) (OTCQX: ALLXF) announces fourth quarter and full year 2020 financial results from its wholly owned Marmato mine in Colombia. The Company’s 2020 Management’s Discussion and Analysis and Financial Statements have been filed under the Company’s profile on SEDAR at www.sedar.com and are available on the Company’s website at www.arisgold.com.
Since the launch of the Company in February 2020, significant achievements and rapid progress has been made, including:
Q4 and Full Year 2020 Financial and Operating Highlights
|Financial position, as at December 31 ($000s)|
|Cash and cash equivalents||32,007||2,672|
|Cash in escrow (1)||142,096||–|
|Total, cash, cash equivalents and cash in escrow||174,103||2,672|
|Precious metals streaming financing (2)||110,000||–|
|Gold produced (oz)||7,181||7,057||23,832||25,750|
|Average realized gold price ($/oz sold)||$1,870||$1,470||$1,767||$1,387|
|Cash costs ($/oz sold) (3)||1,238||927||1,168||983|
|AISC ($/oz sold) (3)||1,941||1,281||1,653||1,222|
|Financial data ($000s, except per share amounts)|
|Cost of sales||9,958||7,454||33,789||29,870|
|Income from mining operations||2,144||2,442||8,070||5,778|
|Adjusted EBITDA (3)||768||2,686||5,238||6,743|
|Net (loss) income (4)||(33,744)||1,551||(83,114)||3,605|
|Per share – basic and diluted||(0.32)||0.05||(1.25)||0.13|
|(1)||The net proceeds from the C$85 million private placement and the US$83 million of gold-linked notes were released from escrow on February 4, 2021|
|(2)||The Company has entered into a definitive Precious Metals Purchase Agreement with Wheaton Precious Metals International Ltd., the closing of which is subject to certain customary conditions. On closing, US$38 million will be paid to the Company with the remaining amount to be paid in tranches upon achievement of completion of * 50% and (y) 75%, of the Marmato Deep Zone expansion project construction.|
|(3)||For full details on cash costs, AISC and adjusted EBITDA calculations, see “Non-IFRS Measures” on pages 24 to 26 of the Company’s MD&A, available on SEDAR and on the Company’s website at www.arisgold.com. The Company has changed its methodology of calculating cash costs and AISC. Historical amounts have been updated for the purposes of comparison|
|(4)||The difference between Income from mining operations and Net (loss) income for the full year is primarily related to one-time expenses of $75.3 million included in Losses on financial instruments ($44.8 million), RTO Transaction Expense ($16.7 million), and Financing fees and expenses ($13.8 million)|
The key achievement of 2020 was the creation of Aris Gold as an independent public company with a strong financial platform to fund growth. During 2021, the focus shifts to improving the operating performance of the Marmato Upper Zone mine and to start realizing the potential of the Marmato Deep Zone by starting the development of a new MDZ underground mine and constructing a new processing facility in Q4.
Marmato – Upper Zone Operations
During 2021, Aris Gold expects steady improvements of Marmato’s current operations through implementation of comprehensive workforce training and redirecting site-level operations management while concurrently improving health, safety, and environmental performance.
During the ongoing modernization and expansion phase of the Marmato mine, the Company anticipates elevated AISC per oz due to increased investments in sustaining capital. During 2020, sustaining capital expenditures totalled $6.4 million or $268 per oz sold, and included $4.0 million or $168 per oz sold related to mine infrastructure improvements and equipment. The Marmato mine has been in operation since 1991 and investments are planned to refurbish Upper Zone operations in advance of the large-scale MDZ expansion project expected to start in Q4 2021.
Marmato – Developing the MDZ
During 2021, Aris Gold’s primary focus is the scheduled start of the Marmato Deep Zone project in Q4. The Marmato project team is implementing a comprehensive development plan that includes completing optimization studies, completing the 35,000-metre drill program and subsequently updating the mineral resource and reserve estimates, engaging an EPCM contractor, completing FEL3 design, amending the environmental management plan and continuing to advance health, safety, and community support programs.
Corporate Growth Strategy
On February 4, 2021, the Company changed its name to Aris Gold Corporation in association with the appointment of the current Board and management team and the expansion of the corporate growth strategy with the vision of building Aris Gold into their next globally relevant gold producer.
Aris Gold is pursuing a growth strategy of acquiring operating gold mines and projects nearing construction with the goal of creating value through adding scale and diversification. Aris Gold has a solid foundation and experienced team to implement its growth plans.
The scientific disclosure and technical information included in this Press Release is based upon information included in the technical reports listed below that were prepared in compliance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects.
About Aris Gold
Aris Gold is a Canadian mining company listed on the TSX under the symbol ARIS. The Company is led by an executive team with a demonstrated track record of creating value through building globally relevant gold mining companies. Aris Gold operates the Marmato mine in Colombia, where a modernization and expansion program is underway, and the Juby project, an advanced exploration stage gold project in the Abitibi greenstone belt of Ontario, Canada. Aris Gold plans to pursue acquisition and other growth opportunities to unlock value creation from scale and diversification.
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We acknowledge the [financial] support of the Government of Canada.