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ARIS MINING REPORTS Q2 2023 FINANCIAL AND OPERATING RESULTS

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ARIS MINING REPORTS Q2 2023 FINANCIAL AND OPERATING RESULTS

 

 

 

 

 

Aris Mining Corporation (TSX: ARIS) (OTCQX: TPRFF) announces financial and operating results for the three and six months ended June 30, 2023. All amounts are in US dollars unless otherwise indicated.

 

Aris Mining CEO Neil Woodyer stated: “Since the merger with GCM Mining in September 2022, Aris Mining has been making continuous progress in the integration and transformation of our Colombian operations. We’ve been diligently advancing our growth projects by closely collaborating with local stakeholders. With the acquisition of permits and secure funding in place, we are poised to commence construction on the Marmato Lower Mine project in late Q3 2023.

 

Additionally, our efforts are focused on driving forward the Soto Norte project. Notably, this project has recently received confirmation of its location outside the Páramo de Santurbán, a protected area of the Andes mountains. This affirmation comes after a favorable delimitation process completed in June 2023, involving local communities and government authorities in the four municipalities associated with the project.

 

During the six-months ending on June 30, we achieved significant milestones. Our gold sales reached 103,386 ounces, resulting in $68 million in income from mining operations. A particular emphasis of our operations review has been on the Segovia Operations business structure. Here, approximately 55% of our production stems from the traditional ‘owner-operated’ mining approach, while the remaining 45% originates from ‘partner-operated’ mining. This partner-operated mining category encompasses our contractor workforce as well as the acquisition of mill-feed from artisanal and small-scale miner units.

 

Our ‘for-profit’ partnerships with community-based groups introduce two distinct operating cost structures at the Segovia Operations. During H1 2023, the all-in sustaining costs from our owner-operated mining operations were $1,007 per ounce of gold1. In contrast, the AISC from partner-operated mining operations was $1,236 per ounce of gold1. It’s notable that our partner-operated cost structure primarily hinges on a percentage of the spot gold price.

 

Anticipating an upswing in partner-operated mining activities for the latter half of 2023, we have developed projections based on an average gold price of $1,900 per ounce. As a result, we are revising our overall 2023 outlook for the Segovia Operations AISC to a range of between $1,125 and $1,175 per ounce of gold.”

 

Operations Review – H1 2023

  • Total production of 104,906 ounces of gold from the Segovia Operations (94,395 ounces) and the Marmato Upper Mine (10,511 ounces).
  • Segovia Operations had attributable gold production from owner-operated mining of 52,732 ounces at an AISC of $1,007 per ounce, and 41,663 ounces from partner-operated mining at an AISC of $1,236 per ounce.
  • Income from mining operations of $68.0 million.
  • EBITDA of $51.6 million1 and adjusted EBITDA of $78.2 million1.
  • Expenditures of $30.9 million on growth capital, including $10.2 million at the Segovia Operations, $11.3 million at the Marmato Upper and Lower Mines, and $9.3 million at the Toroparu Project1.
  • Net earnings of $2.9 million or $0.02 per share.
  • Adjusted earnings of $26 million or $0.19 per share1.
  • Cash and cash-equivalents of $214.3 million as of June 30, 2023, following a $52.9 million annual tax payment in Q2 related to Segovia Operations taxable income from 2022.

 

Full Year 2023 Outlook

  • To continue developing and expanding the ‘partner-operated’ mining model across the Segovia Operations, Marmato Mine and the Soto Norte Project. This commitment is rooted in our firm belief that cultivating ‘for-profit’ community partnerships is the most effective way to drive the sustained growth of our business within the Colombian landscape; it not only bolsters the well-being of those involved but also contributes to the broader objective of responsible mining practices.
  • Based on H1 production and H2 outlook (see table below), the Segovia Operations are expected to produce between 195,000 and 210,000 ounces at an AISC of between $1,125 and $1,175 per ounce during 2023.
  • The Marmato Lower Mine construction plan is expected to allow the existing Upper Mine to continue producing gold in the range of 20,000 to 30,000 ounces during 2023, in line with the 25,216 ounces produced in 2022.
  • On a consolidated basis, Aris Mining expects to produce between 220,000 and 240,000 ounces during 2023, which compares to the previous guidance range of between 230,000 and 270,000 ounces.

 

Segovia Operations – Mid-year 2023 Outlook

 

H1 H2 Outlook FY 2023 Outlook
Actual Low High Low High
Owner-operated mining (ounces)1 52,732 57,000 66,000 111,000 118,000
Attributable AISC/oz $ 1,007 $ 950 $ 1,050 $1,000 $ 1,050
Partner-operated mining (ounces)2 41,663 43,000 51,000 84,000 92,000
Attributable AISC/oz $ 1,236 $ 1,200 $ 1,300 $1,250 $ 1,300
Total Segovia Operations 94,395 100,000 115,000 195,000 210,000
AISC/oz, total mining operations $ 1,108 $ 1,145 $ 1,245 $ 1,125 $ 1,175
Previous 2023 production guidance for Segovia Operations 200,000 230,000
Previous 2023 AISC/oz guidance for Segovia Operations3 $950 $1,050
1. Attributable production from Company-operated areas within the mines, utilizing owner-managed labour.
2. Attributable production from contractor-operated and other artisanal and small-scale mining operations under contract to deliver the mill feed mined to the Company’s Maria Dama plant for processing.
3. Previous 2023 AISC/oz guidance was based on partner-operated mining operations costs assuming a gold price of $1,700/oz

 

___________________________________________
1 Refer to the Non-IFRS Measures section for a reconciliation of AISC ($ per oz sold) EBITDA, adjusted EBITDA, adjusted earnings and expenditures on growth capital to the most directly comparable financial measure disclosed in the Company’s Q2 2023 financial statements.

 

 

Additional Q2 2023 and H1 2023 Financial and Operating Highlights

 

Three months ended Three months ended Six months ended
June 30, 2023 March 31, 2023 June 30, 2023
Gold sold (ounces) 54,228 49,158 103,386
Gold produced (ounces) 54,003 50,903 104,906
Average realized gold price ($/ounce sold) 1,959 1,869 1,888
Gold Revenue ($’000) 106,239 91,863 198,102
Cash costs ($/ounce sold)1 1,019 922 973
AISC – all operations ($/ounce sold)1 1,234 1,214 1,225
Income from mining operations ($’000) 34,877 33,152 68,029
EBITDA ($’000)1 30,496 21,105 51,601
Adjusted EBITDA ($’000)1 39,528 38,646 78,174
Net earnings (loss) ($’000) 8,258 (5,401) 2,857
Adjusted earnings ($’000)1 14,837 11,176 26,013
Earnings (loss) per share – basic ($) 0.06 (0.04) 0.02
Adjusted earnings per share – basic ($)1 0.11 0.08 0.19

 

Balance sheet, as at ($000s) June 30, 2023 December 31, 2022
Cash and cash equivalents 214,344 299,461
Total assets 1,235,023 1,242,120
Total debt2
Senior Notes 300,000 300,000
Gold Notes 62,312 66,006
Convertible Debentures 13,593 13,300
 Shareholders’ equity 570,679 501,375
1. Refer to the Non-IFRS Measures section for full details on cash costs ($ per oz sold), AISC ($ per oz sold), EBITDA, adjusted EBITDA, adjusted earnings and additions to mining interests. Comparative cash cost and AISC values have been adjusted from amounts disclosed prior to Q3 2022 following a change in the methodology used to calculate total cash costs ($ per oz sold) and AISC ($ per oz sold) in Q3 of 2022.
2. The principal of current and long-term debt as at June 30, 2023 are as disclosed in Note 10 to the Interim Financial Statements.

 

 

Aris Mining’s Q2 2023 interim financial statements and related MD&A are available on SEDAR+ and in the Financials section of Aris Mining’s website here.

 

About Aris Mining

 

Aris Mining is a Canadian company led by an executive team with a track record of creating value through building globally relevant mining companies. In Colombia, Aris Mining operates several high-grade underground mines at its Segovia Operations and the Marmato Mine, which together produced 235,000 ounces of gold in 2022. Aris Mining is currently advancing the Marmato Lower Mine Expansion project, which will provide access to wider porphyry mineralization below the current Upper Mine. Following completion and ramp up of the Marmato Lower Mine Expansion project in 2025, the Marmato Mine is expected to deliver average production of 162,000 ounces per year over a nearly 20-year mine life from the existing mineral reserves2. Aris Mining also operates 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 plans to pursue acquisition and other growth opportunities to unlock value creation from scale and diversification.

 

Aris Mining promotes the formalization of artisanal and small-scale mining as this process enables all miners to operate in a legal, safe and responsible manner that protects them and the environment.

 

Posted August 10, 2023

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