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Aris Gold Corporation (TSX: ARIS) (OTCQX: ALLXF) reports financial and operating results for the three months ended March 31, 2022. All amounts are in US dollars, unless otherwise indicated.


Aris Gold CEO Neil Woodyer stated: “During Q1 we began to see positive results from our performance optimization initiatives at the Marmato Upper Mine, where free cash flows were allocated toward Lower Mine construction activities in the quarter. Our EPCM contractor is nearing completion of the front-end loading (FEL3) design work for the Lower Mine, and following this, we expect to release a new mineral reserve estimate.


“In April, our senior management team stepped into the operator role of the Soto Norte joint venture, and we are leading the work to successfully obtain a mining license extension from ANM, the Colombian National Mining Agency, as well as the drafting and advancing of a new environmental and social impact assessment for the Soto Norte gold project. We continue to be impressed by the quality of the Soto Norte project, and the social development opportunities it offers.”


Q1 2022 Highlights


  • Q1 2022 operating results, with quarterly gold sales of 7,698 ounces at AISC of $1,466 per ounce, compare favourably to average quarterly gold sales of 6,731 ounces at AISC of $1,656 per ounce in Q1 2021 and demonstrate some of the early benefits of the optimization activities. In Q1 2022, the Upper Mine generated $3.4 million free cash flow.
  • The Company remains on track to meet full-year production guidance of 40,000 to 45,000 ounces, with gold production from the Upper Mine expected to increase in the second half of 2022 as the mine sequences into higher grade areas and processing rates increase.
  • Construction of the Marmato Lower Mine progressed in Q1 2022, including:
    • Working closely with Corpocaldas, the regional environmental authority, to finalize the Environmental Management Plan (PMA)
    • Starting construction of the El Higuerón decline and ventilation system in January 2022
    • Completing geotechnical and environmental studies
    • Advancing construction of the main camp site access road and accommodation facilities
    • Confirming all other critical path activities remain on schedule for first gold production from the Lower Mine in Q4 2023; these will be reconfirmed through the project FEL3 design works in Q2 2022
    • During 2022, the Company expects to invest $85 million in the construction of the Lower Mine, of which $6.5 million was spent in Q1 2022.


Financial and Operating Highlights


In Q1 2022, Aris Gold recorded earnings from mining operations of $3.2 million and net earnings of $3.1 million (Q1 2021: net loss $7.3 million). A key driver of the improved financial performance was the cost reduction program as demonstrated by AISC per ounce of $1,437, which was 17% lower than Q1 2021.


Financial and operating highlights


Three months ended Mar 31,
Operating data 2022 20212
     Gold produced (ounces) 7,419 6,643
     Gold sold (ounces) 7,698 7,412
     Average realized gold price ($ per ounce sold) 1,883 1,802
     Total cash costs ($ per ounce sold) 1 1,228 1,337
     AISC ($ per ounce sold) 1 1,437 1,737
Financial data ($000s, except per share amounts)
     Revenue 14,677 13,639
     Earnings from mining operations 3,242 1,196
     Net earnings (loss) 3,078 (7,332)
    Net earnings (loss) per share – basic and diluted 0.02 (0.06)
     Adjusted (loss)/earnings 1 1,317 (556)
Balance sheet, as at ($000s) March 31, 2022 Dec 31, 2021
    Cash and cash in escrow 134,785 142,003
    Total assets 301,389 293,666
    Total long-term debt 79,847 79,614
(1) See “Non-IFRS Measures” on pages 11 to 13 of the Q1 2022 MD&A for full details on cash costs ($ per ounce sold), AISC ($ per ounce sold) and adjusted (loss)/earnings calculations.
(2) In Q3 2021, management determined that the nature of the services provided by the site administrative department at the Marmato Mine were shared between the Upper and Lower Mine and accordingly, certain immaterial costs previously allocated to cost of sales, should be capitalized to the Lower Mine expansion project. Refer to Summary of quarterly results for further details.



Aris Gold’s Q1 2022 financial statements and related MD&A are available on SEDAR and in the Investors section of Aris Gold’s website here.


About Aris Gold


Aris Gold is a Canadian mining company listed on the TSX under the symbol ARIS and on the OTCQX under the symbol ALLXF. The Company is led by an executive team with a demonstrated track record of creating value through building globally relevant gold mining companies. In Colombia, Aris Gold operates the 100%-owned Marmato mine, where a modernization and expansion program is under way, and as of April 12, 2022, operates the Soto Norte joint venture, where environmental licensing is advancing to develop a new gold mine. Aris Gold also owns 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.


Posted May 12, 2022

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