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ARIS MINING REPORTS Q4 AND FULL-YEAR 2022 FINANCIAL AND OPERATING HIGHLIGHTS

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ARIS MINING REPORTS Q4 AND FULL-YEAR 2022 FINANCIAL AND OPERATING HIGHLIGHTS

 

 

 

 

 

Aris Mining Corporation (TSX: ARIS) (OTCQX: TPRFF), formerly GCM Mining Corporation, announces financial and operating results for the three and twelve months ended December 31, 2022. All amounts are in US dollars unless otherwise indicated.

 

Aris Mining CEO Neil Woodyer stated: “Aris Mining combines free cash flow generation from current operations with attractive large-scale development projects with long mine lives and growth potential from exploration upside. During 2022, our business generated $51 million of free cash flow from current operations that substantially funded $73 million in long-term growth investments. Aris Mining’s near-term growth projects include the construction of the Marmato Lower Mine, the Soto Norte gold-copper project undergoing permitting and licencing, and the Toroparu project in Guyana, where we are progressing additional studies to update, fully-define and optimize the development plan.

 

Looking forward, we expect to produce between 230,000 and 270,000 ounces of gold at an AISC1 of between $1,050 to $1,150 per ounce during 2023. We are working to expand our partnerships with artisanal and small-scale miners, and are continuing to align with the Colombian government’s focus on enabling all miners to operate in a legal, safe and responsible manner that protects them and the environment.”

 

2022 Highlights

 

Operational:

  • Produced 215,373 ounces of gold, including 34,933 ounces from the purchase of mill-feed from partnerships with artisanal and small-scale miners around the Segovia Operations
  • Sold 220,098 ounces of gold at an average realized price of $1,784 per ounce
  • Total cash costs of $797 per ounce1 and AISC of $1,128 per ounce1
  • In November 2022, the Company received approval from the Agencia Nacional de Minería of the Marmato works and construction program (PTO); a further step toward fully permitting the Marmato Lower Mine expansion project
  • In November 2022, the Company updated the Marmato Lower Mine expansion Preliminary Feasibility Study and increased gold mineral reserves by 57%2
  • Updated mineral resource and reserve estimates for the Segovia Operations effective December 31, 2022, which included full replacement of gold ounces mined in 20222

 

Financial and growth investments:

  • In September 2022, GCM Mining and Aris Gold combined to create Aris Mining as a leading Latin America-focused gold producer
  • In April 2022, Aris Gold, which subsequently combined with the Company, established a joint venture and became the operator of the Soto Norte Project in Colombia, where environmental licensing is advancing to develop a new underground gold, silver and copper mine
  • Income from mining operations of $160 million
  • EBITDA of $116.9 million1 and Adjusted EBITDA of $166.0 million1
  • Expenditures of $45.7 million in sustaining capital1
  • Expenditures of $73.2 million in non-sustaining capital, including $7.4 million at Segovia Operations, $5.1 million at Marmato Mine (Upper and Lower), and $60.7 million at the Toroparu Project1
  • Net income of $0.6 million or $0.01 per share
  • Adjusted net income of $50.3 million or $0.46 per share1
  • $299.5 million of cash and cash equivalents at December 31, 2022

 

Responsible mining and shared value:

  • Joined the United Nations Global Compact and initiated the development of our Communication on Progress (CoP) Report
  • Introduced Vision Zer000, a program to further strengthen our culture of harm prevention and to integrate safety, health and well-being into our daily actions
  • Social contributions of $12.0 million, which is now structured under a transparent social investment policy that aligns with Government development plans and Aris Mining’s stakeholder engagement policy
  • Royalty and income tax payments of $63.7 million
  • Expanding partnerships with artisanal and small-scale miners at the Segovia Operations and creating new partnership opportunities at the Marmato Mine and Soto Norte Project through a new protocol for establishing agreements
  • Strengthening Aris Mining’s diversity and inclusion policies to promote gender equality in all areas of our business

 

Q4 2022 Financial and Operating Highlights

 

In US dollars Three months ended December 31, Years ended December 31,
2022 2021 2022 2021
Gold sold (ounces) 59,157 51,716 220,098 210,042
Average realized gold price ($/ounce sold) 1,687 1,782 1,784 1,794
Cash costs ($/ounce sold)1 811 797 797 788
AISC ($/ounce sold)1 1,108 1,211 1,128 1,133
Income from mining operations ($’000) 37,744 36,220 159,955 155,579
Net cash provided by operating activities ($’000) 12,938 27,413 76,954 80,554
EBITDA ($’000)1 32,811 32,057 116,930 280,289
Adjusted EBITDA ($’000)1 36,372 37,300 165,960 171,489
Net earnings ($’000) 4,769 6,606 622 179,968
Adjusted earnings ($’000)1 8,679 12,162 50,283 72,234
Earnings per share – basic ($) 0.05 0.07 0.01 2.25
Adjusted earnings per share – basic ($)1 0.09 0.12 0.46 0.87
1. Refer to the Non-IFRS Measures section below for full details on cash costs ($ per oz sold), AISC ($ per oz sold), EBITDA, adjusted EBITDA, and adjusted earnings. 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.

 

 

 

Balance sheet, as at ($000s) December 31,

2022

December 31,
2021
Cash and cash equivalents 299,461 323,565
Total assets 1,242,120 998,385
Total debt1
Senior Notes 300,000 300,000
Gold Notes 66,006
Convertible Debentures 13,300 14,200
1. The face value of long-term debt as at December 31, 2022 is as disclosed in Note 10 to the Financial Statements for further details on long-term debt

2022 Cash Flow Generation

 

The operating cash flow generated by the Company in FY 2022 is summarized in the table below.

 

(US$000s) Year ended

Dec 31, 2022

Gold Revenue 392,622
Total cash cost1 (175,528)
Royalties1 (12,955)
Social contributions1 (11,992)
Sustaining capital1 (47,884)
All in sustaining cost (AISC) 1 (248,359)
AISC Margin 144,263
General and administrative expenses (22,024)
Change in receivables related to timing of gold sales (13,496)
Other changes in receivables (3,372)
Impact of foreign exchange losses on cash balances (7,162)
Other changes in working capital and other 3,152
Taxes paid2 (50,716)
Free cash flow from operations 50,645
Non-sustaining capital
Toroparu Project1 60,678
Segovia Operations1 7,374
Marmato Upper Mine1 475
Marmato Lower Mine1 4,649
Total non-sustaining capital 73,176
1. Refer to the Non-IFRS Measures section below for full details on cash costs ($ per oz sold), AISC ($ per oz sold), and additions to mining interests split by nature and site. 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. As presented in the Financial Statements and notes included therein for the respective periods.

 

Aris Mining’s Q4 2022 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 also operates the Soto Norte 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 March 15, 2023

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