Uncategorized
ARIS MINING REPORTS Q3 2023 FINANCIAL AND OPERATING RESULTS: NET EARNINGS OF $12.4M, ADJUSTED EBITDA(1) OF $41.6M
Aris Mining Corporation (TSX: ARIS) (NYSE-A: ARMN) announces financial and operating results for the three and nine months ended September 30, 2023. All amounts are in US dollars unless otherwise indicated.
| Q3 2023 | YTD 2023 | |
| Gold Production | 60,193 ounces | 165,099 ounces |
| AISC/oz1 | $1,286 | $1,247 |
| EBITDA1 | $38.8M | $90.4M |
| Adjusted EBITDA1 | $41.6M | $119.7M |
| Net earnings | $12.4M ($0.09/share) | $15.3M ($0.11/share) |
| Adjusted earnings1 | $14.4M ($0.11/share) | $40.4M ($0.30/share) |
Aris Mining CEO Neil Woodyer stated: “During Q3 2023, our high-grade Segovia Operations delivered strong results contributing to total gold production of 60,193 ounces, an 11% increase over Q2 2023. Aris Mining is firmly on track to achieve our 2023 production guidance of 220,000 to 240,000 ounces. Over the nine months ended September 30, our mines generated $54.9 million in free cash flow from operations1 which funded $55.5 million in growth and expansion investments. We ended Q3 2023 with cash and cash-equivalents of $211 million.
In September 2023, we commenced construction of the Marmato Lower Mine and spending is expected to ramp up as construction progresses into 2024. This project is fully funded from our current cash, operating cash flow, and dedicated stream financing. This new underground mine will provide access to the wider and large-scale porphyry mineralization below the currently operating Upper Mine, which allows for more efficient bulk mining methods in the Lower Mine. Additionally, we have completed $10.5 million of a planned $17 million strategic exploration and infill drill program at the Segovia Operations. Segovia has a history of expanding its gold mineral resources and the recent estimate announced last week signifies a leap forward, as the current measured and indicated mineral resource has surged by 114% to reach 3.6 million ounces at 14.34 g/t Au (see News Release – November 2, 2023). We are now in the process of updating the mineral reserve estimates, which is expected by the end of November.”
Operations Review – Segovia Operations
| Q3 2023 | Q2 2023 | YTD 2023 | |
| Tonnes milled (t) | 163,205 | 154,105 | 467,274 |
| Average tonnes milled per day (tpd) | 1,898 | 1,813 | 1,832 |
| Average gold grade processed (g/t) | 10.77 | 10.13 | 10.34 |
| Gold produced (ounces) | 53,826 | 47,882 | 148,221 |
| Cash costs ($/ounce sold)1 | 954 | 926 | 901 |
| AISC – owner operated mining ($/ounce sold)1 | 1,108 | 932 | 1,064 |
| AISC – partner operated mining ($/ounce sold)2,[1] | 1,308 | 1,339 | 1,235 |
| AISC – total ($/ounce sold)1 | 1,194 | 1,111 | 1,139 |
| _________________ | |||
| 1 AISC ($ per oz sold), EBITDA, adjusted EBITDA, adjusted earning, free cash flow and cash costs 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 Q3 2023 interim financial statements. 2 Partner-operating mining encompasses contractor workforce as well as the acquisition of mill-feed from artisanal and small-scale miner units. |
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Aris Mining Quarterly and YTD Cashflow Generation – 2023 (US$ million)
| Q3 2023 | Q2 2023 | Q1 2023 | YTD 2023 | ||||||
| Gold revenue | $ 113.0) | $ 106.2) | $ 91.9) | $ 311.1) | |||||
| Total cash costs, royalties & social contributions | (67.3) | (62.5) | (51.1) | (180.9) | |||||
| Sustaining capital – Segovia infill exploration program | (1.3) | (0.3) | (0.8) | (2.5) | |||||
| Sustaining capital – other | (7.4) | (4.1) | (7.7) | (19.1) | |||||
| All in sustaining margin | 37.0) | 39.3) | 32.2) | 108.5) | |||||
| Taxes paid | – | (52.4) | – | (52.4) | |||||
| General and administration expenses | (3.9) | (4.1) | (2.2) | (10.3) | |||||
| Change in working capital, impact of foreign exchange | 3.2) | 22.9) | (17.0) | 9.1) | |||||
| Free cash flow from operations | 36.3) | 5.7) | 12.9) | 54.9) | |||||
| Expansion and growth capital1 at: | |||||||||
| Marmato Upper Mine & Lower Mine | (14.2) | (6.8) | (4.6) | (25.5) | |||||
| Segovia Operations – regional exploration program | (2.6) | (2.9) | (2.5) | (8.0) | |||||
| Segovia Operations – other | (4.0) | (4.7) | (0.1) | (8.8) | |||||
| Toroparu Project | (3.9) | (4.6) | (4.7) | (13.2) | |||||
| Total expansion and growth capital | (24.6) | (19.0) | (11.9) | (55.5) | |||||
| Free cashflow from operations after expansion capital | 11.7) | (13.4) | 1.0) | (0.6) | |||||
| Proceeds from warrant/option exercises | 0.3) | 1.6) | 0.4) | 2.3) | |||||
| Soto Norte, deferred payment to Mubadala | – | – | (50.0) | (50.0) | |||||
| Repayment of Gold-linked Notes | (1.8) | (1.8) | (1.8) | (5.5) | |||||
| Contributions to Soto Norte joint venture | (1.4) | (1.2) | (1.1) | (3.7) | |||||
| Participation in Denarius Metals rights offering | – | – | (1.1) | (1.1) | |||||
| Interest (paid), net of interest income | (12.3) | (0.2) | (17.5) | (29.9) | |||||
| Net change in cash | (3.5) | (15.0) | (70.1) | (88.6) | |||||
| Opening balance at the beginning of the period | 214.3) | 229.3) | 299.5) | 299.5) | |||||
| Closing balance at the end of the period | $ 210.8) | $ 214.3) | $ 229.3) | $ 210.8) | |||||
| 1 AISC ($ per oz sold), EBITDA, adjusted EBITDA, adjusted earning, free cash flow and cash costs 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 Q3 2023 interim financial statements. | |||||||||
Mineral Resource Estimates (MRE) – Segovia Operations
| Effective date | Measured | Indicated | Measured & Indicated | Inferred | ||||||||
| Tonnes | Grade Au | Oz Au | Tonnes | Grade Au | Oz Au | Tonnes | Grade Au | Oz Au | Tonnes | Grade Au | Oz Au | |
| (kt) | (g/t) | (koz) | (kt) | (g/t) | (koz) | (kt) | (g/t) | (koz) | (kt) | (g/t) | (koz) | |
| September 30, 2023 (2023 MRE) December 31, 2022 (2022 MRE) |
4,114
405 |
14.31
15.39 |
1,893
200 |
3,754
4,569 |
14.38
10.16 |
1,736
1,492 |
7,869
4,974 |
14.34
10.58 |
3,629
1,692 |
4,682
5,325 |
12.11
9.44 |
1,823
1,616 |
| 2023 MRE /
2022 MRE |
+36 % | +1,937
+114% |
+28 % | +207
+13% |
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| Notes:
• Mineral resources are inclusive of mineral reserves. • Mineral resources are not mineral reserves and have no demonstrated economic viability • There are no known environmental, permitting, legal, title, taxation, socio-economic, marketing, political, or other relevant factors that could materially affect the mineral resource estimate. • Totals may not add due to rounding. 2023 MRE Notes: • A gold price of US$1,850 per ounce was used for the 2023 MRE. • The 2023 MRE utilized a gold cut-off grade of between 2.80 g/t and 3.12 g/t depending on mineral resource area. • The 2023 MRE was prepared by Pamela De Mark, P. Geo., Senior Vice President of Geology and Exploration of Aris Mining. 2022 MRE Notes: • The mineral resource estimate used a US$ gold price per ounce of $1,850 to determine a gold cut-off grade of 2.65 g/t and used a minimum mining width of 1.0 m. |
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Aris Mining’s Q3 2023 interim financial statements and related MD&A are available on SEDAR+, in its filings with the U.S. Securities and Exchange Commission (the SEC), and in the Financials section of Aris Mining’s website here.
About Aris Mining
Aris Mining is a gold producer in the Americas with a growth-oriented strategy. 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 construction of the Marmato Lower Mine Expansion project, which will provide access to wider porphyry mineralization below the current Upper Mine. 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 acquisitions 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 November 9, 2023
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