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 $1,175 per ounce of gold.”
Operations Review – H1 2023
Full Year 2023 Outlook
Segovia Operations – Mid-year 2023 Outlook
|H1||H2 Outlook||FY 2023 Outlook|
|Owner-operated mining (ounces)1||52,732||57,000||–||66,000||111,000||–||118,000|
|Attributable AISC/oz||$ 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 ($’000)||34,877||33,152||68,029|
|Adjusted EBITDA ($’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 ($000s)||June 30, 2023||December 31, 2022|
|Cash and cash equivalents||214,344||299,461|
|1.||Refer to the Non-IFRS Measures section for full details on cash costs ($ 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.
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