VANCOUVER, BC, March 6,
2024 /CNW/ - Aris Mining Corporation (Aris Mining or
the Company) (TSX: ARIS) (NYSE-A: ARMN) announces financial and
operating results for the three and twelve months ended
December 31, 2023 (Q4 2023 and FY
2023, respectively). All amounts are in US dollars unless otherwise
indicated.
|
Q4
2023
|
FY
2023
|
|
Gold
Production
|
61,052
ounces
|
226,151
ounces
|
|
Segovia Operations
AISC/oz1
|
$1,264
|
$1,173
|
|
EBITDA1
|
$19.7M
|
$112.1M
|
|
Adjusted
EBITDA1
|
$39.7M
|
$159.4M
|
|
Net earnings
(loss)
|
($5.9M) or
($0.04)/share
|
$11.4M or
$0.08/share
|
|
Adjusted
earnings1
|
$11.8M or
$0.09/share
|
$52.2M or
$0.38/share
|
Aris Mining CEO Neil Woodyer
stated: "In 2023, we restructured the operations team and
introduced new operating procedures following the combination of
GCM Mining and Aris Gold in
September 2022. The new team achieved
consistent quarter-over-quarter increases in gold production during
2023, significantly enhancing our position in 2024 and the future.
We have achieved the initial phase of our vision to create an
attractive gold mining company for investors by integrating
profitable operations with exploration potential and growth
projects.
During 2023, our high-grade Segovia Operations produced 202,940
ounces of gold at a processed grade of 10.4 g/t with all-in
sustaining costs per ounce of $1,173,
achieving production and AISC guidance. For the full year 2023, our
mines generated $75.4 million in free
cash flow from operations1 which largely funded
$84.2 million in growth and expansion
investments, and we ended the year with a cash position of
$195 million.
With strong gold production results and substantial growth in
mineral reserves and resources at our Segovia Operations, we have
started construction to increase its processing capacity by 50% to
3,000 tonnes per day with completion expected in early 2025. As the
new capacity is used, we expect to increase annual gold production
at Segovia to over 300,000 ounces. Construction at our Marmato
Lower Mine project has ramped up with initial access roads
completed, the lead contractor for portal and decline development
selected, and tenders for key items for the new processing plant
underway. We are on pace to reach 500,000 ounces of gold production
in Colombia in 2026."
Operations Review – Segovia Operations
|
Q4
2023
|
Q3 2023
|
FY
2023
|
|
Tonnes milled
(t)
|
166,329
|
163,205
|
663,603
|
|
Average tonnes milled
per day (tpd)
|
1,934
|
1,898
|
1,858
|
|
Average gold grade
processed (g/t)
|
10.63
|
10.77
|
10.42
|
|
Gold produced
(ounces)
|
54,719
|
53,826
|
202,940
|
|
Cash costs ($/ounce
sold)1
|
997
|
954
|
928
|
|
AISC – owner operated
mining ($/ounce sold)1
|
1,267
|
1,108
|
1,120
|
|
AISC – partner operated
mining ($/ounce sold) 1,2
|
1,261
|
1,308
|
1,242
|
|
AISC – total ($/ounce
sold)1
|
1,264
|
1,194
|
1,173
|
|
|
|
|
|
|
|
|
|
|
Aris Mining Quarterly and YTD Cashflow Generation – 2023 (US$
million)
|
|
Q4
|
Q3
|
Q2
|
Q1
|
FY
2023
|
|
Gold sold
(ounces)
|
|
62,083
|
59,040
|
54,228
|
49,158
|
224,509
|
|
Gold produced
(ounces)
|
|
61,052
|
60,193
|
54,003
|
50,903
|
226,151
|
|
Average realized gold
price ($/ounce sold)
|
|
$1,980
|
$1,913
|
$1,959
|
$1,869
|
$1,933
|
|
|
|
|
|
|
|
|
Gold revenue
|
|
$
122.9
|
$
113.0
|
$
106.2
|
$
91.9
|
$
434.0
|
|
Total cash
costs1, royalties & social contributions
|
|
(75.5)
|
(67.3)
|
(62.5)
|
(51.1)
|
(256.4)
|
|
Sustaining
capital1 – Segovia infill exploration program
|
|
(1.3)
|
(1.3)
|
(0.3)
|
(0.8)
|
(4.6)
|
|
Sustaining
capital1 – other
|
|
(10.0)
|
(7.4)
|
(4.1)
|
(7.7)
|
(28.3)
|
|
All in sustaining
margin
|
|
36.1
|
37.0
|
39.3
|
32.2
|
144.7
|
|
|
|
|
|
|
|
|
Taxes paid
|
|
-
|
-
|
(52.4)
|
-
|
(52.4)
|
|
General and
administration expenses
|
|
(7.5)
|
(3.9)
|
(4.1)
|
(2.2)
|
(17.8)
|
|
Change in working
capital, impact of foreign exchange
|
|
(8.0)
|
3.2
|
22.9
|
(17.0)
|
1.0
|
|
Free cash flow from
operations
|
|
20.6
|
36.3
|
5.7
|
12.9
|
75.4
|
|
|
|
|
|
|
|
|
Expansion and growth
capital1 at:
|
|
|
|
|
|
|
|
Marmato Upper
Mine & Lower Mine
|
|
(10.6)
|
(14.2)
|
(6.8)
|
(4.6)
|
(36.1)
|
|
Segovia
Operations – regional exploration program
|
|
(6.0)
|
(2.6)
|
(2.9)
|
(2.5)
|
(14.0)
|
|
Segovia
Operations – other
|
|
(10.3)
|
(4.0)
|
(4.7)
|
(0.1)
|
(19.1)
|
|
Toroparu
Project
|
|
(1.7)
|
(3.9)
|
(4.6)
|
(4.7)
|
(14.9)
|
|
Total expansion and
growth capital
|
|
(28.6)
|
(24.6)
|
(19.0)
|
(11.9)
|
(84.2)
|
|
Free cashflow from
operations after expansion capital
|
|
(8.1)
|
11.7
|
(13.4)
|
1.0
|
(8.7)
|
|
|
|
|
|
|
|
|
Proceeds from
warrant/option exercises
|
|
0.6
|
0.3
|
1.6
|
0.4
|
3.0
|
|
Soto Norte, deferred
payment to Mubadala
|
|
-
|
-
|
-
|
(50.0)
|
(50.0)
|
|
Repayment of
Gold-linked Notes
|
|
(1.8)
|
(1.8)
|
(1.8)
|
(1.8)
|
(7.4)
|
|
Contributions to
investments in associates
|
|
(1.4)
|
(1.4)
|
(1.2)
|
(1.1)
|
(5.1)
|
|
Purchase of Denarius
debentures and shares
|
|
(3.6)
|
-
|
-
|
(1.1)
|
(4.7)
|
|
Interest (paid), net of
interest income
|
|
(2.0)
|
(12.3)
|
(0.2)
|
(17.5)
|
(31.9)
|
|
Net change in
cash
|
|
(16.2)
|
(3.5)
|
(15.0)
|
(70.1)
|
(104.8)
|
|
Opening balance at the
beginning of the period
|
|
210.8
|
214.3
|
229.3
|
299.5
|
299.5
|
|
Closing balance at
the end of the period
|
|
$
194.6
|
$
210.8
|
$
214.3
|
$
229.3
|
$
194.6
|
|
|
|
|
|
|
|
|
|
|
|
|
_____________________________________
|
|
1
|
AISC ($ per oz sold),
EBITDA, adjusted EBITDA, adjusted earning, free cash flow, cash
costs and sustaining capital 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 interim and audited
financial statements.
|
|
2
|
Partner-operating
mining encompasses contractor workforce as well as the acquisition
of mill-feed from artisanal and small-scale miner units.
|
Aris Mining's audited consolidated financial statements for
three month and years ended December 31,
2023 and 2022 and related MD&A (together, the Annual
Filings) are available on SEDAR+, and the Annual Filings and Aris
Mining's annual report on Form 40-F for the year ended December 31, 2023 are available in the Company's
filings with the U.S. Securities and Exchange Commission (the SEC)
and in the Financials section of Aris Mining's website here. Hard
copies of the audited financial statements are available free of
charge by written request to info@aris-mining.com.
FY2023 Conference Call
Details
Management will host a conference call on Thursday, March 7, 2024, at 11:00 am ET/8:00 am
PT to discuss the results and outlook for 2024. The call
will be webcast and can be accessed at Aris Mining's website at
www.aris-mining.com, or at
https://services.choruscall.ca/links/arismining2023q4.html
To join the conference via telephone dial:
- Toll-free North America:
1-866-668-0730
- International: +1 604-638-5357
Participants may also choose to pre-register to join the
conference call automatically, at this link. Upon registering,
participants will receive a calendar invitation with dial-in
details and a unique PIN, which will allow them to bypass the
operator queue and connect directly to the conference.
The call will be available for playback for one week by
dialing:
- Toll-free in the US and Canada: +1 800.319.6413
- International: +1 604.638.9010
- Replay access code: 0729
A replay of the event will be archived at Aris Mining
Corporation - Investors - Events & Presentations
(aris-mining.com).
About Aris Mining
Aris Mining is a gold producer in the Americas with an
attractive blend of current production, exploration, and growth
projects. The Company operates two mines in Colombia, the Segovia Operations and Marmato
Upper Mine, known for their high-grade deposits, which produced
226,000 ounces of gold in 2023. With expansion projects in
progress, Segovia and Marmato aim to produce a combined 500,000
ounces of gold in 2026. Aris Mining also operates and is 20% owner
of 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 is committed to pursuing acquisitions and other growth
opportunities to unlock value through scale and
diversification.
Additional information on Aris Mining can be found
at www.aris-mining.com, www.sedarplus.ca, and on
www.sec.gov.
Cautionary Language
Non-IFRS Measures
Free cash flow, cash costs ($ per oz sold), AISC ($ per oz
sold), EBITDA, adjusted EBITDA, adjusted (loss)/earning, sustaining
capital and expenditures on growth capital are non-IFRS financial
measures and non-IFRS ratios. These measures do not have any
standardized meaning prescribed under IFRS, and therefore may not
be comparable to other issuers. For full details on these measures
and ratios refer to the "Non-IFRS Measures" section of the
Company's Management's Discussion and Analysis for the three months
and years ended December 31, 2023 and
2022 (MD&A). The MD&A is incorporated by reference into
this news release and is available on the Company's profile on
SEDAR+ at www.sedarplus.ca and in its filings with the SEC at
www.sec.gov.
The tables below reconcile the non-IFRS financial measures
contained in this news release for the current and comparative
periods to the most directly comparable financial measure disclosed
in the Company's 2023 audited consolidated financial
statements.
Total cash costs
|
Segovia Operations
|
Total
Operations
|
|
Quarter
ended,
|
Year
ended,
|
Quarter
ended,
|
Year
ended,
|
|
($000s except per
ounce amounts)
|
Dec 31,
2023
|
Sept 30,
2023
|
Dec 31,
2023
|
Dec 31,
2023
|
Sept 30,
2023
|
Dec 31,
2023
|
|
Total gold sold
(ounces)
|
55,736
|
52,627
|
201,652
|
62,083
|
59,040
|
224,509
|
|
Cost of
sales1
|
61,993
|
56,543
|
213,649
|
76,580
|
68,534
|
261,766
|
|
Less: materials and
supplies provision
|
(715)
|
-
|
(715)
|
(1,211)
|
(190)
|
(1,401)
|
|
Less:
royalties1
|
(3,434)
|
(3,202)
|
(12,784)
|
(4,531)
|
(4,189)
|
(16,745)
|
|
Add: by-product
revenue1
|
(2,297)
|
(3,153)
|
(13,081)
|
(2,565)
|
(3,514)
|
(14,199)
|
|
Less: other
adjustments
|
-
|
-
|
-
|
-
|
-
|
77
|
|
Total cash
costs
|
55,547
|
50,188
|
187,069
|
68,273
|
60,641
|
229,498
|
|
Total cash costs ($
per oz gold sold)
|
997
|
954
|
928
|
1,100
|
1,027
|
1,022
|
|
|
|
|
|
|
|
|
|
|
1.
|
As presented in the
interim and audited consolidated financial statements and notes for
the respective periods.
|
All-in sustaining costs (AISC)
|
Segovia
Operations
|
Total Operations
|
|
|
Quarter
ended,
|
Year
ended,
|
Quarter
ended,
|
Year
ended,
|
|
|
($000s except per
ounce amounts)
|
Dec 31,
2023
|
Sept 30,
2023
|
Dec 31,
2023
|
Dec 31,
2023
|
Sept 30,
2023
|
Dec 31,
2023
|
|
Total gold sold
(ounces)
|
55,736
|
52,627
|
201,652
|
62,083
|
59,040
|
224,509
|
|
Total cash
costs
|
55,547
|
50,188
|
187,069
|
68,273
|
60,641
|
229,498
|
|
Add:
royalties1
|
3,434
|
3,202
|
12,784
|
4,531
|
4,189
|
16,745
|
|
Add: social
programs1
|
2,501
|
2,249
|
9,573
|
2,653
|
2,434
|
10,157
|
|
Add: sustaining capital
expenditures
|
8,669
|
6,685
|
25,136
|
11,020
|
8,143
|
30,842
|
|
Add: lease payments on
sustaining capital
|
324
|
507
|
2,073
|
324
|
507
|
2,073
|
|
Total
AISC
|
70,475
|
62,831
|
236,635
|
86,801
|
75,914
|
289,315
|
|
Total AISC ($ per oz
gold sold)
|
1,264
|
1,194
|
1,173
|
1,398
|
1,286
|
1,289
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.
|
As presented in the
interim and audited consolidated financial statements and notes for
the respective periods.
|
The table below reconciles the cash cost per ounce sold and the
AISC per ounce sold for ore sourced from owner-operated mines and
other partner-operated mines to the totals for the consolidated
Segovia Operations:
|
Quarter ended
December 31, 2023
|
Year ended December
31, 2023
|
|
Owner
Operated
mining1
|
Partner
|
Total
|
Owner
Operated
mining1
|
Partner
|
Total
|
|
Operated
mining2
|
Segovia
|
Operated
mining2
|
Segovia
|
|
Attributable gold sold
(ounces)
|
31,396
|
24,340
|
55,736
|
113,560
|
88,092
|
201,652
|
|
Total cash costs
($'000)3
|
27,632
|
27,915
|
55,547
|
88,069
|
99,002
|
187,071
|
|
Cash cost per ounce
sold ($/ounce)3
|
$880
|
$1,147
|
$997
|
$776
|
$1,124
|
$928
|
|
All-in sustaining costs
($'000)3
|
39,781
|
30,694
|
70,475
|
127,232
|
109,405
|
236,637
|
|
AISC cost per ounce
sold ($/ounce)3
|
$1,267
|
$1,261
|
$1,264
|
$1,120
|
$1,242
|
$1,173
|
|
|
|
|
|
|
|
|
Quarter ended
September 30, 2023
|
|
Owner
Operated
mining1
|
Partner
Operated
mining2
|
Total
Segovia
|
|
Attributable gold sold
(ounces)
|
30,030
|
22,597
|
52,627
|
|
Total cash costs
($'000)3
|
23,602
|
26,586
|
50,188
|
|
Cash cost per ounce
sold ($/ounce)3
|
$786
|
$1,177
|
$954
|
|
All-in sustaining costs
($'000)3
|
33,279
|
29,553
|
62,831
|
|
AISC cost per ounce
sold ($/ounce)3
|
$1,108
|
$1,308
|
$1,194
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.
|
Includes
Company-operated areas within the mines, utilizing owner-managed
labour.
|
|
2.
|
Comprises
contractor-operated and other small-scale mining operations within
and outside of the Company's mining title that are operated by
miners under contract to deliver the mill feed mined to the
Company's Maria Dama plant for processing.
|
|
3.
|
Refer to the
Non-IFRS Measures section for full details on cash
costs ($ per oz sold) and AISC ($ per oz sold).
|
Additions to mineral interests, plant and equipment
|
|
|
|
Quarter
ended,
|
Year
ended,
|
|
|
($'000)
|
|
|
|
Dec 31,
2023
|
Sept 30,
2023
|
Dec 31,
2023
|
|
Sustaining
capital
|
|
|
|
|
|
|
|
Segovia
Operations
|
|
|
|
8,669
|
6,685
|
25,136
|
|
Marmato
Upper Mine
|
|
|
|
2,351
|
1,457
|
5,706
|
|
Total
|
|
|
|
11,020
|
8,143
|
30,842
|
|
Non-sustaining
growth capital
|
|
|
|
|
|
|
|
Segovia
Operations
|
|
|
|
16,308
|
6,569
|
33,157
|
|
Toroparu
Project
|
|
|
|
1,740
|
3,874
|
14,929
|
|
Marmato
Lower Mine
|
|
|
|
9,394
|
8,413
|
27,814
|
|
Marmato
Upper Mine
|
|
|
|
1,181
|
5,737
|
8,244
|
|
Juby
Project
|
|
|
|
7
|
-
|
40
|
|
Total
|
|
|
|
28,630
|
24,594
|
84,184
|
|
Total
Additions1
|
|
|
|
39,650
|
32,736
|
115,026
|
|
1.
As presented in the interim and audited
consolidated financial statements and notes for the respective
periods.
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings before interest, taxes, depreciation, and
amortization (EBITDA) and adjusted EBITDA
|
|
Quarter
ended,
|
Year
ended,
|
|
($000s)
|
|
|
Dec 31,
2023
|
Sept 30,
2023
|
Dec 31,
2023
|
|
Earnings (loss)
before tax1
|
|
|
7,963
|
26,156
|
58,826
|
|
Add back:
|
|
|
|
|
|
|
Depreciation and depletion1
|
|
|
7,535
|
10,938
|
34,944
|
|
Finance
income1
|
|
|
(2,580)
|
(3,672)
|
(10,783)
|
|
Interest
and accretion1
|
|
|
6,772
|
6,757
|
29,156
|
|
EBITDA
|
|
|
19,690
|
40,179
|
112,143
|
|
Add back:
|
|
|
|
|
|
|
Share-based compensation1
|
|
|
2,977
|
528
|
5,111
|
|
Revaluation of investments (Denarius) 1
|
|
|
536
|
-
|
10,559
|
|
Loss from
equity accounting in investee1
|
|
|
(3,667)
|
(1,062)
|
(59)
|
|
(Gain)
loss on financial instruments1
|
|
|
13,429
|
(374)
|
13,078
|
|
Foreign
exchange (gain) loss1
|
|
|
6,685
|
2,285
|
18,550
|
|
Adjusted
EBITDA
|
|
|
39,650
|
41,555
|
159,382
|
|
|
|
|
|
|
|
|
1.
|
As presented in the
interim and audited consolidated financial statements and notes for
the respective periods.
|
Adjusted net earnings and adjusted net earnings per
share
|
|
Quarter
ended,
|
Year
ended,
|
|
($000s except shares
amount)
|
|
|
Dec 31,
2023
|
Sept 30,
2023
|
Dec 31,
2023
|
|
Basic weighted average
shares outstanding
|
|
|
137,313,095
|
137,192,545
|
136,735,317
|
|
Diluted weighted
average shares outstanding
|
|
|
137,313,095
|
137,484,041
|
137,062,505
|
|
Net earnings
(loss)1
|
|
|
(5,944)
|
13,833
|
11,419
|
|
Add back:
|
|
|
|
|
|
|
Share-based compensation1
|
|
|
2,977
|
528
|
5,111
|
|
Revaluation of investments (Aris Gold/Denarius)
1
|
|
|
536
|
-
|
10,559
|
|
(Income)
loss from equity accounting in investee1
|
|
|
(3,667)
|
(1,062)
|
(59)
|
|
(Gain)
loss on financial instruments1
|
|
|
13,429
|
(374)
|
13,078
|
|
Foreign
exchange (gain) loss1
|
|
|
6,685
|
2,285
|
18,550
|
|
Income tax effect on
adjustments
|
|
|
(2,221)
|
(796)
|
(6,434)
|
|
Adjusted net (loss)
/ earnings
|
|
|
11,795
|
14,414
|
52,224
|
|
Per share
– basic ($/share)
|
|
|
0.09
|
0.11
|
0.38
|
|
|
|
|
|
|
|
|
1.
|
As presented in the
interim and audited consolidated financial statements and notes for
the respective periods.
|
Forward-Looking
Information
This news release contains "forward-looking information" or
forward-looking statements" within the meaning of Canadian
securities legislation. All statements included herein, other than
statements of historical fact, including, without limitation,
statements relating to the Company's belief that it has
significantly enhanced its position in 2024 and the future, the
Company's plans to increase the processing capacity at the Segovia
Operations and the timing thereof, the expected increase in annual
gold production at the Segovia Operations, the Company's goal of
producing 500,000 ounces of gold in Colombia in 2026 and the Company's plans and
strategies are forward-looking. Generally, the forward-looking
information and forward looking statements can be identified by the
use of forward looking terminology such as "plans", "expects" or
"does not expect", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates" or "does not
anticipate", "will continue" or "believes", or variations of such
words and phrases or state that certain actions, events or results
"may", "could", "would", "might" or "will be taken", "occur" or "be
achieved". The material factors or assumptions used to develop
forward looking information or statements are disclosed throughout
this news release.
Forward looking information and forward looking statements,
while based on management's best estimates and assumptions, are
subject to known and unknown risks, uncertainties and other factors
that may cause the actual results, level of activity, performance
or achievements of Aris Mining to be materially different from
those expressed or implied by such forward-looking information or
forward looking statements, including but not limited to those
factors discussed in the section entitled "Risk Factors" in Aris
Mining's annual information form dated March
6, 2024 which is available on SEDAR+ at
www.sedarplus.ca and in the Company's filings with the SEC at
www.sec.gov.
Although Aris Mining has attempted to identify important factors
that could cause actual results to differ materially from those
contained in forward-looking information and forward-looking
statements, there may be other factors that cause results not to be
as anticipated, estimated or intended. There can be no assurance
that such information or statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such information or statements. The Company has and
continues to disclose in its Management's Discussion and Analysis
and other publicly filed documents, changes to material factors or
assumptions underlying the forward-looking information and
forward-looking statements and to the validity of the information,
in the period the changes occur. The forward-looking statements and
forward-looking information are made as of the date hereof and Aris
Mining disclaims any obligation to update any such factors or to
publicly announce the result of any revisions to any of the
forward-looking statements or forward-looking information contained
herein to reflect future results. Accordingly, readers should not
place undue reliance on forward-looking statements and
information.
View original
content:https://www.prnewswire.com/news-releases/aris-mining-reports-2023-results-with-guidance-achieved-net-earnings-of-11-4m-adjusted-earnings-of-52-2m-0-38share-adjusted-ebitda-of-159m-302082217.html
SOURCE Aris Mining Corporation