VANCOUVER, BC, Nov. 10, 2021 /CNW/ - Aris Gold
Corporation (Aris Gold or the Company) (TSX: ARIS) (OTCQX:
ALLXF) reports financial and operating results for the three and
nine months ended September 30, 2021.
All amounts are in US dollars, unless otherwise indicated.
Q3 2021 Highlights
Highlights for Q3 2021 were focused on the continued advancement
of the Lower Mine project, with the following notable
developments:
- The project team completed several Lower Mine optimizations
with Wood PLC, the EPCM contractor, and are finalizing the detailed
design.
- Aris Gold continued with the 35,000-metre infill and
exploration drill program at Marmato. The final six drillholes of
that program are underway.
- Expenditures of $5.4 million were
incurred on the Lower Mine in Q3 2021, including $4.1 million related to early works, land
acquisitions, and technical studies, $0.7
million related to the 35,000-metre drilling campaign, and
$0.6 million related to owner costs
and other related costs.
- Aris Gold published its inaugural Sustainability Report
highlighting the Company's approach and performance on a range of
material environmental, social and governance (ESG) topics and the
adoption of a new ESG governance strategy, as well as the Company's
plans and priorities for 2021 and beyond.
- Performance optimization activities at the Marmato Upper Mine
included a comprehensive review of operations management,
administrative and organizational structures. The regional office
in Medellin has been closed and
teams have been relocated to the Marmato mine. Preventive
maintenance, productivity improvements, and cost management
programs have been initiated.
- Aris Gold's COVID-19 vaccination program has resulted in over
96% of its employees, along with many others in the local
communities around the Marmato mine, being vaccinated at this
time.
In addition, Aris Gold completed the 10,000-metre drill program
at the Juby project in Q3 2021. Juby is an advanced exploration
stage gold project in the Abitibi greenstone belt of Ontario, Canada. The objective of the drill
program was to expand the known open pit mineral resources and test
areas that may host higher-grade zones. Core sample assays have
been submitted to an analytical laboratory for review, and results
are expected in the fourth quarter of 2021.
Financial and Operating Highlights
In the three and nine months ended September 30, 2021, Aris Gold recorded net
earnings of $6.0 million and
$4.3 million, respectively (three and
nine months ended September 30, 2020:
net loss of $24.9 million and
$49.4 million, respectively). The
adjusted net loss for the three and nine months ended 2021 was
$0.6 million and $2.2 million, respectively, which when compared
to the same periods in 2020 (net earnings of $2.1 million and $3.6
million respectively) reflected an increase in cost of sales
and general and administrative expenses.
Financial and operating highlights
|
Three months ended
Sept 30,
|
Nine months ended
Sept 30,
|
Operating
data
|
2021
|
2020
|
2021
|
2020
|
Gold produced
(ounces)
|
6,800
|
6,899
|
19,401
|
16,651
|
Gold sold
(ounces)
|
6,695
|
6,963
|
20,200
|
17,241
|
Average realized gold
price ($/ounce sold)
|
1,765
|
1,881
|
1,792
|
1,728
|
Cash costs ($/ounce
sold) 1,2
|
1,344
|
1,167
|
1,364
|
1,142
|
AISC ($/ounce sold)
1
|
1,702
|
1,658
|
1,707
|
1,542
|
|
|
|
|
|
Financial data
($000s, except per share amounts)
|
|
|
|
|
Revenue
|
11,926
|
13,306
|
36,779
|
30,240
|
Earnings from mining
operations
|
1,134
|
3,260
|
2,896
|
5,926
|
Net earnings
(loss)
|
6,049
|
(24,872)
|
4,313
|
(49,370)
|
Net earnings (loss)
per share – basic and diluted
|
0.04
|
(0.32)
|
0.03
|
(0.90)
|
Adjusted
(loss)/earnings 1
|
(645)
|
2,083
|
(2,246)
|
3,635
|
|
|
|
Balance sheet, as at
($000s)
|
Sept 30,
2021
|
Dec 31,
2020
|
Cash and cash
equivalents
|
151,255
|
32,007
|
Cash in
escrow
|
5,543
|
142,096
|
Total long-term
debt
|
84,234
|
83,258
|
(1)
|
See Non-IFRS
Measures in the Q3 2021 MD&A for full details on cash
costs, AISC and adjusted (loss)/earnings calculations. The Company
has changed its methodology of calculating cash costs and AISC, and
therefore amounts for the three and nine months ended September 30,
2020 have been updated for the purposes of comparison.
|
(2)
|
In Q3 2021,
management determined that the nature of the services provided by
the site administrative department at the Marmato Mine were shared
between the Upper and Lower Mine and accordingly, certain
immaterial costs previously allocated to cost of sales, should be
capitalized to the Lower Mine expansion project. Refer to
Summary of quarterly results in the Q3 2021 MD&A for
further details.
|
Aris Gold's Q3 2021 financial statements and related MD&A
are available on SEDAR and in the Investors section of Aris
Gold's website here.
Outlook
Management is implementing several activities focused on
performance optimization in the Marmato Upper Mine, while also
completing several early-works projects in preparation for Lower
Mine construction. Highlights include:
- After a comprehensive workforce review and rationalization
program, a new mine shift schedule has been implemented, providing
workers with preferred access to accommodation at the site camp and
other incentives to relocate to the Marmato community.
- Completion of an improved mine design using grade control
modelling techniques to improve mine planning. To accelerate
training, this project is being implemented with the assistance of
specialist technical consultants.
- Continued roll-out of cost management programs including
tightly controlled purchasing and procurement processes.
- Implementation of enterprise resource planning software (ERP),
to improve cost management with timely reporting, and other supply
chain and financial management tools.
- Ongoing investment in Upper Mine plant upgrades, new equipment,
and enhanced maintenance programs to increase mine production and
processing rates.
About Aris Gold
Aris Gold is a Canadian mining company listed on the TSX under
the symbol ARIS and on the OTCQX under the symbol ALLXF. The
Company is led by an executive team with a demonstrated track
record of creating value through building globally relevant gold
mining companies. Aris Gold operates the Marmato mine in
Colombia, where a modernization
and expansion program is under way, and the Juby project, an
advanced exploration stage gold project in the Abitibi greenstone
belt of Ontario, Canada. Aris Gold
plans to pursue acquisition and other growth opportunities to
unlock value creation from scale and diversification.
Additional information on Aris Gold can be found at
www.arisgold.com and www.sedar.com.
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 Aris Gold's growth strategy,
improvements to the operations of the Marmato Upper Mine, receipt
of the remaining funds under the stream financing, extension of the
mine life at Marmato through advancing the Lower Mine project and
advancing the Marmato Upper Mine and statements made under the
heading "Outlook" 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". Statements concerning mineral resource
estimates may also be deemed to constitute forward looking
information to the extent that they involve estimates of the
mineralization that will be encountered. The material factors or
assumptions used to develop forward looking information or
statements are disclosed throughout this presentation.
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 Gold to be materially different from those
expressed or implied by such forward-looking information or forward
looking statements, including but not limited to: the ability of
the Aris Gold management team to successfully integrate with the
current operations, risks related to international operations,
risks related to general economic conditions, uncertainties
relating to operations during the COVID-19 pandemic, actual results
of current exploration activities, availability of quality assets
that will add scale, diversification and complement Aris Gold's
growth trajectory; changes in project parameters as plans continue
to be refined; fluctuations in prices of metals including gold; the
ability to convert mineral resources to mineral reserves;
fluctuations in foreign currency exchange rates, increases in
market prices of mining consumables, risks associated with holding
derivative instruments (such as credit risks, market liquidity risk
and mark-to-market risk), possible variations in mineral reserves,
grade or recovery rates; failure of plant, equipment or processes
to operate as anticipated; changes in national and local government
legislation, taxation, controls, regulations, regulations and
political or economic developments in Canada or Colombia, accidents and operations, labour
disputes, title disputes, claims and limitations on insurance
coverage and other risks of the mining industry; delays in
obtaining governmental approvals including obtaining required
environmental and other licenses, or in the completion of
development or construction activities, changes in national and
local government regulation of mining operations, tax rules and
regulations, and political and economic developments in countries
in which the Company operates, as well as those factors discussed
in the section entitled "Risk Factors" in Aris Gold's most recent
AIF available on SEDAR at www.sedar.com.
Although Aris Gold 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
Gold 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.
This announcement does not constitute an offer of securities for
sale in the United States, nor may
any securities referred to herein be offered or sold in
the United States absent
registration or an exemption from registration as provided in the
U.S. Securities Act of 1933 as amended (the "Securities Act") and
the rules and regulations thereunder. The securities referred to
herein have not been registered pursuant to the Securities Act and
there is no intention to register any of the securities in
the United States or to conduct a
public offering of securities in the
United States.
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SOURCE Aris Gold Corporation