VANCOUVER, BC, May 10, 2023
/PRNewswire/ - Aris Mining Corporation (Aris Mining or the Company)
(TSX: ARIS) (OTCQX: TPRFF) announces financial and operating
results for the three months ended March 31,
2023 (Q1 2023). All amounts are in US dollars unless
otherwise indicated.
Aris Mining CEO Neil Woodyer
stated: "Following the merger of GCM Mining and Aris Gold, we launched initiatives to improve
the health and safety performance at our operations. We have also
captured cost reduction opportunities including reducing G&A
expenses to $2.2 million in Q1 2023,
as compared to $6.1 million in Q1
2022. During Q1 2023, we produced 50,903 ounces of gold to generate
$38.6 million of adjusted
EBITDA1, and $27 million
of free cash flow1 from the Segovia Operations
contributed to funding $12 million in
growth investments and the $50
million payment owing to complete the purchase of the 20%
joint venture interest in the Soto Norte Project. Our current focus
is on completing the final steps for permitting the Marmato Lower
Mine expansion project, and planning for construction expected to
commence in mid-2023. As part of our commitment to building
responsible and profitable partnerships with artisanal and
small-scale miners in Colombia, we
are very proud of a new agreement signed in April 2023 for the Marmato Upper Mine that will
include formalization of approximately 260 miners. Just two weeks
after signing the agreement, we commenced mining in Level 16 of the
Marmato Upper Mine under this new partnership model."
Q1 2023 Operational Highlights:
- Produced 50,903 ounces of gold from the Segovia Operations and
the Marmato Upper Mine, with 18% of total contained gold sourced
from the purchase of mill-feed through partnerships with artisanal
and small-scale miners around the Segovia Operations
- Sold 49,158 ounces of gold, at an average realized price of
$1,869 per ounce
- The Segovia Operations processing facility was expanded to
2,000 tonnes per day (tpd) in late 2022, but a small fire caused by
a maintenance procedure reduced throughput to an average of 1,785
tpd in Q1 2023, causing a short lag in gold production. The
required repairs have been completed and throughput averaged 2,097
tpd in April 2023, and the Segovia
Operations remain on track to achieve 2023 production guidance of
200,000 to 230,000 ounces
- Free cash flow from Segovia Operations of $27 million1
- Total cash costs of $922 per
ounce1 and all in sustaining costs (AISC) of
$1,214 per ounce1
- Announced the updated mineral resource and reserve estimates
for the Segovia Operations, effective December 31, 2022, which include full replacement
of gold ounces mined during 20222
- Aris Mining is on track to meet annual production guidance of
between 230,000 – 270,000 ounces at an AISC/oz1 of
between $1,050 to $1,150
Financial and Growth:
- Income from mining operations of $33.2
million
- EBITDA of $21.1
million1 and adjusted EBITDA of $38.6 million1
- Expenditures of $11.9 million on
non-sustaining capital, including $2.6
million at the Segovia Operations, $4.6 million at the Marmato Upper and Lower
Mines, and $4.7 million at the
Toroparu Project
- Net loss of $5.4 million or
$0.04 per share and adjusted earnings
of $11.2 million or $0.08 per share1
Responsible mining and shared value:
- On April 20, 2023, the Company
signed, with the Colombian Minister of Mines and Energy in
attendance, an association agreement with artisanal and small-scale
miners to purchase ore mined by these groups within Level 16 of the
currently operating Marmato Upper Mine
- Paid social contributions of $2.4
million, structured under a transparent social investment
policy that aligns with government development plans and Aris
Mining's stakeholder engagement policy
- Continued working to create new partnerships with artisanal and
small-scale miners throughout the Segovia Operations, the Marmato
Mine and the Soto Norte Project
_____________
|
1 Total cash
costs per ounce, AISC ($ per oz sold), adjusted earnings and
adjusted net earnings per share, EBITDA and adjusted EBITDA and
free cash flow are non-IFRS financial measures and non-IFRS ratios
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
below for more details.
|
2 See
section entitled Qualified Person and Technical Information
for the reference to technical information
|
Q1 2023 Financial and Operating Highlights
|
|
Three months ended
March 31,
|
|
|
2023
|
2022
|
Gold sold
(ounces)
|
|
|
49,158
|
53,645
|
Average realized gold
price ($/ounce sold)
|
|
|
1,869
|
1,860
|
Cash costs ($/ounce
sold)1
|
|
|
922
|
786
|
AISC ($/ounce
sold)1
|
|
|
1,214
|
1,072
|
|
|
|
|
|
Income from mining
operations ($'000)
|
|
|
33,152
|
44,033
|
Net cash provided by
operating activities ($'000)
|
|
|
19,768
|
24,209
|
|
|
|
|
|
EBITDA
($'000)1
|
|
|
21,105
|
34,918
|
Adjusted
EBITDA ($'000)1
|
|
|
38,646
|
45,129
|
|
|
|
|
|
Net earnings (loss)
($'000)
|
|
|
(5,401)
|
5,238
|
Adjusted earnings
($'000)1
|
|
|
11,176
|
15,428
|
|
|
|
|
|
Earnings (loss) per
share – basic ($)
|
|
|
(0.04)
|
0.05
|
Adjusted earnings per
share – basic ($)1
|
|
|
0.08
|
0.16
|
|
|
|
|
|
|
|
|
|
|
Balance sheet, as at
($000s)
|
|
|
March 31,
2023
|
December 31,
2022
|
Cash and cash
equivalents
|
|
|
229,350
|
299,461
|
Total
assets
|
|
|
1,212,688
|
1,242,120
|
Total
debt2
|
|
|
|
|
Senior
Notes
|
|
|
300,000
|
300,000
|
Gold Notes
|
|
|
64,159
|
66,006
|
Convertible
Debentures
|
|
|
13,300
|
13,300
|
Shareholders
equity
|
|
|
513,104
|
501,375
|
1.
|
Refer to the
Non-IFRS Measures section below for full details on
cash costs ($ 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.
|
2.
|
The principal of
current and long-term debt as at March 31, 2023 are as disclosed in
Note 10 to the Interim Financial Statements.
|
Quarterly Cashflow Generated
|
Three months ended
March 31,
|
($000s)
|
2023
|
2022
|
Gold
Revenue
|
91,864
|
99,783
|
|
|
|
Total cash
cost1
|
(45,333)
|
(42,185)
|
Royalties1
|
(3,410)
|
(3,229)
|
Social
contributions1
|
(2,404)
|
(3,100)
|
Sustaining
capital1
|
(8,523)
|
(9,009)
|
All in sustaining cost
(AISC) 1
|
(59,670)
|
(57,523)
|
|
|
|
AISC
Margin
|
32,194
|
42,260
|
|
|
|
Taxes
paid2
|
-
|
(14,411)
|
General
and administration expense2
|
(2,235)
|
(6,140)
|
Change in receivables
related to timing of metal sales
|
(6,978)
|
(4,942)
|
Change in working
capital and other
|
(12,037)
|
634
|
Impact of foreign
exchange losses on cash balances2
|
70
|
1,916
|
Free cash flow from
operations
|
11,014
|
19,317
|
|
|
|
Toroparu non-sustaining
capital1
|
(4,690)
|
(6,736)
|
Segovia non-sustaining
capital1
|
(2,641)
|
(4,999)
|
Marmato Upper Mine
non-sustaining capital1
|
(681)
|
-
|
Marmato Lower Mine
non-sustaining capital1
|
(3,881)
|
-
|
Free cash flow from
operations after expansion capital
|
(879)
|
7,582
|
|
|
|
Dividends paid and
share buy backs2
|
-
|
(4,611)
|
Proceeds from
warrant/option exercises
|
417
|
397
|
Settlement of Soto
Norte deferred payment2
|
(50,000)
|
-
|
Repayment of Gold
Linked Notes2
|
(3,154)
|
-
|
Interest and
financing costs2
|
(14,234)
|
(10,553)
|
Free cash flow after
expansion capital and financing costs
|
(67,849)
|
(7,185)
|
|
|
|
Contributions to
investment in associates2
|
(2,262)
|
(1,316)
|
Net change in
cash2
|
(70,111)
|
(8,501)
|
|
|
|
Opening balance at
beginning of period2
|
299,461
|
323,565
|
Closing balance at
end of quarter2
|
229,350
|
315,064
|
1.
|
Refer to the
Non-IFRS Measures section for full details on cash costs ($
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 previously disclosed
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
Interim Financial Statements and notes for the respective
periods.
|
Aris Mining's Q1 2023 interim financial statements and related
MD&A are available on SEDAR and in the Financials
section of Aris Mining's website here.
Conference call
The conference call to discuss the Q1 2023 results will be held
on May 11, 2023 at 7:00 am (Pacific Time) or 10:00 am (Eastern Time).
The conference call dial-in is +1-416-764-8658 or toll free
(North America) +1-888-886-7786.
Quote "Aris Mining" when prompted by the operator or conference ID
25173378.
Participants can access the Company's presentation by a live
webcast of the conference call at the following link:
https://events.q4inc.com/attendee/113640527
There will be a question-and-answer session following the
presentation.
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.
Additional information on Aris Mining can be found at
www.aris-mining.com and www.sedar.com.
Cautionary Language
Non-IFRS Measures
Cash costs ($ per oz sold), AISC ($ per oz sold), free cash
flow, EBITDA, adjusted EBITDA, adjusted (loss)/earnings and
additions to mining interests are non-IFRS financial measures and
non-IFRS ratios in this document. 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 year ended December 31, 2022
(MD&A) for more details on total cash costs per ounce, AISC ($
per oz sold), adjusted earnings and adjusted net earnings per
share, EBITDA and adjusted EBITDA and refer to the "Operations
Review - Segovia Operations" section of the MD&A for more
details on free cash flow generated from operations. The MD&A
is incorporated by reference into this news release and is
available on the Company's profile on SEDAR at www.sedar.com.
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 Q1 2023 financial statements.
Total cash costs
|
Three months ended
March 31, 2023
|
Three months ended
March 31, 2022
|
($000s except per
ounce amounts)
|
Segovia
|
Marmato
|
Total
|
Segovia
|
Marmato1
|
Total
|
Total gold sold
(ounces)
|
44,908
|
4,250
|
49,158
|
53,645
|
-
|
53,645
|
Cost of
sales2
|
44,083
|
9,622
|
53,705
|
46,953
|
-
|
46,953
|
Less:
royalties2
|
(2,660)
|
(750)
|
(3,410)
|
(3,229)
|
-
|
(3,229)
|
Less: by-product
revenue2
|
(4,877)
|
(166)
|
(5,043)
|
(1,539)
|
-
|
(1,539)
|
Less: other
adjustments
|
-
|
81
|
81
|
-
|
-
|
-
|
Total cash
costs
|
36,546
|
8,787
|
45,333
|
42,185
|
-
|
42,185
|
Total cash costs ($
per oz gold sold)
|
814
|
2,068
|
922
|
786
|
-
|
786
|
1.
|
The Marmato Mine was
purchased as part of the Aris Mining Transaction on September 26,
2022, as such prior year comparatives are not applicable to the
Company.
|
2.
|
As presented in the
Interim Financial Statements and notes for the respective
periods.
|
All-in sustaining costs
|
Three months ended
March 31, 2023
|
Three months ended
March 31, 2022
|
($000s except per
ounce amounts)
|
Segovia
|
Marmato
|
Total
|
Segovia
|
Marmato1
|
Total
|
|
Total gold sold
(ounces)
|
44,908
|
4,250
|
49,158
|
53,645
|
-
|
53,645
|
|
Total cash
costs
|
36,546
|
8,787
|
45,333
|
42,185
|
-
|
42,185
|
|
Add:
royalties2
|
2,660
|
750
|
3,410
|
3,229
|
-
|
3,229
|
|
Add: social
programs2
|
2,404
|
-
|
2,404
|
3,100
|
-
|
3,100
|
|
Add: sustaining capital
expenditures
|
7,332
|
535
|
7,867
|
8,522
|
-
|
8,522
|
|
Add: lease payments on
sustaining capital
|
656
|
-
|
656
|
487
|
-
|
487
|
|
Total
AISC
|
49,598
|
10,072
|
59,670
|
57,523
|
-
|
57,523
|
|
Total AISC ($ per oz
gold sold)
|
1,104
|
2,370
|
1,214
|
1,072
|
-
|
1,072
|
|
1.
|
The Marmato Mine was
purchased as part of the Aris Mining Transaction on September 26,
2022, as such prior year comparatives are not applicable to the
Company.
|
2.
|
As presented in the
Interim Financial Statements and notes for the respective
periods.
|
Additions to mineral interests, plant and equipment
|
Three months ended
March 31,
|
($'000)
|
|
2023
|
2022
|
Sustaining
capital
|
|
|
|
Segovia
Operations
|
|
7,332
|
8,522
|
Marmato
Upper Mine1
|
|
535
|
-
|
Total
|
|
7,867
|
8,522
|
Non-sustaining
capital
|
|
|
|
Segovia
Operations
|
|
2,641
|
4,999
|
Toroparu
Project
|
|
4,690
|
6,736
|
Marmato
Lower Mine1
|
|
3,881
|
-
|
Marmato
Upper Mine1
|
|
681
|
-
|
Juby
Project1
|
|
33
|
-
|
Total
|
|
11,926
|
11,735
|
Additions to mining
interest, plant and equipment2
|
|
19,793
|
20,257
|
1.
|
The Marmato Mine and
Juby Project was purchased as part of the Aris Mining Transaction
on September 26, 2022, as such prior year comparatives are not
applicable to the Company.
|
2.
|
As presented in the
Interim Financial Statements and notes for the respective
periods
|
Earnings before interest, taxes, depreciation, and
amortization (EBITDA) and adjusted EBITDA
|
Three months ended
March 31,
|
($000s except shares
amount)
|
2023
|
2022
|
Earnings (loss) before
tax1
|
6,751
|
20,790
|
Add back:
|
|
|
Depreciation and
depletion1
|
7,646
|
8,236
|
Finance
income1
|
(2,173)
|
(507)
|
Interest
and accretion1
|
8,881
|
6,399
|
EBITDA
|
21,105
|
34,918
|
Add back:
|
|
|
Share-based compensation1
|
1,147
|
1,208
|
(Income)
loss from equity accounting in investee1
|
3,241
|
1,032
|
(Gain)
loss on financial instruments1
|
10,810
|
7,316
|
Foreign exchange
(gain) loss1
|
2,343
|
655
|
Adjusted
EBITDA
|
38,646
|
45,129
|
1. As presented in the
Financial Statements and notes for the respective
periods.
|
Adjusted net earnings and adjusted net earnings per
share
|
Three months ended
March 31,
|
($000s except shares
amount)
|
2023
|
2022
|
Basic weighted average
shares outstanding
|
136,188,570
|
97,786,490
|
Diluted weighted
average shares outstanding
|
136,188,570
|
99,961,040
|
Net earnings
(loss)1
|
(5,401)
|
5,238
|
Add back:
|
|
|
Share-based compensation1
|
1,147
|
1,208
|
(Income)
loss from equity accounting in investee1
|
3,241
|
1,032
|
(Gain)
loss on financial instruments1
|
10,810
|
7,316
|
Foreign
exchange (gain) loss1
|
2,343
|
655
|
Income tax effect on
adjustments
|
(964)
|
(21)
|
Adjusted net (loss)
/ earnings
|
11,176
|
15,428
|
Per share
– basic ($/share)
|
0.08
|
0.16
|
1. As presented
in the Interim Financial Statements and notes for the respective
periods.
|
Segovia Free Cash Flow
Three months ended
March 31,
|
|
Operating
Information
|
2023
|
2022
|
|
Tonnes of ore
processed (t)
|
149,965
|
142,818
|
|
Average gold
grade processed (g/t)
|
10.11
|
12.07
|
|
Recoveries
(%)
|
95.4 %
|
90.1 %
|
|
Gold produced
(ounces)
|
46,513
|
49,864
|
|
Gold sold
(ounces)
|
44,908
|
53,645
|
|
|
|
|
|
Revenue
|
$
83,943
|
$
99,783
|
|
|
|
|
|
Mining costs
|
29,720
|
31,401
|
|
Processing
costs
|
4,403
|
4,354
|
|
Administration and
security costs
|
5,685
|
7,297
|
|
Inventory movement and
other costs
|
1,615
|
672
|
|
By-product and
concentrate revenue
|
(4,877)
|
(1,539)
|
|
Total cash
costs1
|
36,546
|
42,185
|
|
Cash cost per
ounce sold1
|
814
|
786
|
|
|
|
|
|
Royalties
|
2,660
|
3,229
|
|
Social
contributions
|
2,404
|
3,100
|
|
Sustaining capital
expenditures
|
7,988
|
9,009
|
|
All-in sustaining
costs1
|
49,598
|
57,522
|
|
All-in sustaining
cost per ounce sold1
|
1,104
|
1,072
|
|
|
|
|
|
AISC
Margin
|
39,256
|
42,261
|
|
|
|
|
|
Taxes paid
|
-
|
(10,120)
|
|
Working capital
movements and other expenses
|
(5,220)
|
(8,577)
|
|
Foreign exchange
movement
|
(2,161)
|
1,906
|
|
Free cashflow
generated from operations
|
$
26,964
|
$
25,470
|
|
|
|
|
|
Non-sustaining capital
expenditures
|
(2,641)
|
(4,999)
|
|
|
|
|
|
Free cashflow after
expansion capital
|
$
24,323
|
$
20,471
|
|
1.
|
Refer to the
Non-IFRS Measures section for full details on cash
costs ($ per oz sold) and AISC ($ per oz sold). Comparative cash
cost and AISC values have been adjusted from amounts previously
disclosed following a change in the methodology used to calculate
total cash costs ($ per oz sold) and AISC ($ per oz sold) in Q3 of
2022.
|
Qualified Person and Technical Information
Pamela De Mark, P.Geo., Senior
Vice President, Technical Services of Aris Mining, is a Qualified
Person as defined by National Instrument 43-101 (NI 43-101) and has
reviewed and approved the technical information contained in this
news release.
Scientific and technical information concerning the mineral
resource and reserve estimates of the Segovia Operations is
summarized, derived, or extracted from the news release of the
Company dated March 3, 2023, which is
available for review on the Company's website at
www.aris-mining.com and on the Company's profile on SEDAR at
www.sedar.com, and which have been reviewed and approved by
Pamela De Mark, P.Geo., Senior Vice
President, Technical Services of Aris Mining, who is a Qualified
Person as defined by NI 43-101.
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 being on track to achieve the
2023 production guidance, plans with respect to the Marmato Lower
Mine expansion and the timing thereof, plans with respect to
creating create new partnerships with artisanal and small-scale
miners throughout the Segovia Operations, the Marmato Mine and the
Soto Norte Project, 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". Statements concerning mineral reserve estimates and
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 Mining to be materially different from
those expressed or implied by such forward-looking information or
forward looking statements, including but not limited to: local
environmental and regulatory requirements and delays in obtaining
required environmental and other licenses, changes in national and
local government legislation, taxation, controls, regulations and
political or economic developments, uncertainties and hazards
associated with gold exploration, development and mining, risks
associated with tailings management, risks associated with
operating in foreign jurisdictions, risks associated with capital
cost estimates, dependence of operations on infrastructure, costs
associated with the decommissioning of the Company's properties,
fluctuations in foreign exchange or interest rates and stock market
volatility, operational and technical problems, the ability to
maintain good relations with employees and labour unions,
competition; reliance on key personnel, litigation risks,
uncertainties relating to title to property and mineral resource
and mineral reserve estimates, risks associated with acquisitions
and integration, risks associated with the Company's ability to
meet its financial obligations as they fall due, volatility in the
price of gold, or certain other commodities, risks that actual
production may be less than estimated, risks associated with
servicing indebtedness, additional funding requirements, risks
associated with general economic factors, risks associated with
secured debt, changes in the accessibility and availability of
insurance for mining operations and property, environmental,
sustainability and governance practices and performance, risks
associated with climate change, risks associated with the reliance
on experts outside of Canada, ,
pandemics, epidemics and public health crises, potential conflicts
of interest, uncertainties relating to the enforcement of civil
labilities outside of Canada,
cyber-security risks, risks associated with operating a joint
venture, volatility of the share price, the ability to pay
dividends in the future, as well as those factors discussed in the
section entitled "Risk Factors" in Aris Mining's annual information
form dated March 31, 2023 and
available on SEDAR at www.sedar.com.
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.
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SOURCE Aris Mining Corporation