Aris Mining Reports 2023 Results with Guidance Achieved, Net Earnings of $11.4M, Adjusted Earnings of $52.2M ($0.38/SHARE), Adjusted EBITDA of $159M
Vancouver, Canada, March 6, 2024 – Aris Mining Corpora�on (Aris Mining or the Company) (TSX: ARIS; NYSE-A: ARMN) announces financial and opera�ng results for the three and twelve months ended December 31, 2023 (Q4 2023 and FY 2023, respec�vely). All amounts are in US dollars unless otherwise indicated.
| Q4 2023 | FY 2023 | |
|---|---|---|
| Gold ProducƟon Segovia OperaƟons AISC/oz1 EBITDA1 Adjusted EBITDA1 Net earnings (loss) Adjusted earnings1 | 61,052 ounces | 226,151 ounces $1,173 $112.1M $159.4M $11.4M or $0.08/share $52.2M or $0.38/share |
| $1,264 | ||
| $19.7M | ||
| $39.7M | ||
| ($5.9M) or ($0.04)/share | ||
| $11.8M or $0.09/share |
Aris Mining CEO Neil Woodyer stated: “In 2023, we restructured the opera�ons team and introduced new opera�ng procedures following the combina�on of GCM Mining and Aris Gold in September 2022. The new team achieved consistent quarter-over-quarter increases in gold produc�on during 2023, significantly enhancing our posi�on in 2024 and the future. We have achieved the ini�al phase of our vision to create an atrac�ve gold mining company for investors by integra�ng profitable opera�ons with explora�on poten�al and growth projects.
During 2023, our high-grade Segovia Opera�ons 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 produc�on and AISC guidance. For the full year 2023, our mines generated $75.4 million in free cash flow from opera�ons1 which largely funded $84.2 million in growth and expansion investments, and we ended the year with a cash posi�on of $195 million.
With strong gold produc�on results and substan�al growth in mineral reserves and resources at our Segovia Opera�ons, we have started construc�on to increase its processing capacity by 50% to 3,000 tonnes per day with comple�on expected in early 2025. As the new capacity is used, we expect to increase annual gold produc�on at Segovia to over 300,000 ounces. Construc�on at our Marmato Lower Mine project has ramped up with ini�al access roads completed, the lead contractor for portal and decline development selected, and tenders for key items for the new processing plant underway. We are on pace to reach 500,000 ounces of gold produc�on in Colombia in 2026.”
Operations Review – Segovia Operations
| Q4 2023 | Q3 2023 | FY 2023 | |
|---|---|---|---|
| Tonnes milled (t) Average tonnes milled per day (tpd) Average gold grade processed (g/t) Gold produced (ounces) Cash costs ($/ounce sold)1 AISC – owner operated mining ($/ounce sold)1 AISC – partner operated mining ($/ounce sold) 1,2 AISC – total ($/ounce sold)1 | 166,329 | 163,205 1,898 10.77 53,826 954 1,108 1,308 1,194 | 663,603 |
| 1,934 | 1,858 | ||
| 10.63 | 10.42 | ||
| 54,719 | 202,940 | ||
| 997 | 928 | ||
| 1,267 | 1,120 | ||
| 1,261 | 1,242 | ||
| 1,264 | 1,173 |
1 AISC ($ 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 Quarterly and YTD Cashflow Generation – 2023 (US$ million)
| Q4 | Q3 | Q2 | Q1 | FY 2023 | ||||
|---|---|---|---|---|---|---|---|---|
| Gold sold (ounces) 62,083 Gold produced (ounces) 61,052 Average realized gold price ($/ounce sold) $1,980 Gold revenue $ 122.9 Total cash costs1, royalƟes & social contribuƟons (75.5) Sustaining capital1 – Segovia infill exploraƟon program (1.3) Sustaining capital1 – other (10.0) | 59,040 | 54,228 | 49,158 | 224,509 | ||||
| 60,193 | 54,003 | 50,903 | 226,151 | |||||
| $1,913 | $1,959 | $1,869 | $1,933 | |||||
| $ 113.0 | $ 106.2 | $ 91.9 | $ 434.0 | |||||
| (67.3) | (62.5) | (51.1) | (256.4) | |||||
| (1.3) | (0.3) | (0.8) | (4.6) | |||||
| (7.4) | (4.1) | (7.7) | (28.3) | |||||
| All in sustaining margin 36.1 Taxes paid - General and administraƟon expenses (7.5) Change in working capital, impact of foreign exchange (8.0) | 37.0 | 39.3 | 32.2 | 144.7 | ||||
| - | (52.4) | - | (52.4) | |||||
| (3.9) | (4.1) | (2.2) | (17.8) | |||||
| 3.2 | 22.9 | (17.0) | 1.0 | |||||
| Free cash flow from operaƟons 20.6 Expansion and growth capital1 at: Marmato Upper Mine & Lower Mine (10.6) Segovia OperaƟons – regional exploraƟon program (6.0) Segovia OperaƟons – other (10.3) Toroparu Project (1.7) | 36.3 | 5.7 | 12.9 | 75.4 | ||||
| (14.2) | (6.8) | (4.6) | (36.1) | |||||
| (2.6) | (2.9) | (2.5) | (14.0) | |||||
| (4.0) | (4.7) | (0.1) | (19.1) | |||||
| (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 operaƟons aŌer expansion capital (8.1) Proceeds from warrant/opƟon exercises 0.6 Soto Norte, deferred payment to Mubadala - Repayment of Gold-linked Notes (1.8) ContribuƟons to investments in associates (1.4) Purchase of Denarius debentures and shares (3.6) Interest (paid), net of interest income (2.0) | 11.7 | (13.4) | 1.0 | (8.7) | ||||
| 0.3 | 1.6 | 0.4 | 3.0 | |||||
| - | - | (50.0) | (50.0) | |||||
| (1.8) | (1.8) | (1.8) | (7.4) | |||||
| (1.4) | (1.2) | (1.1) | (5.1) | |||||
| - | - | (1.1) | (4.7) | |||||
| (12.3) | (0.2) | (17.5) | (31.9) | |||||
| Net change in cash (16.2) Opening balance at the beginning of the period 210.8 | (3.5) | (15.0) | (70.1) | (104.8) | ||||
| 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 |
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 writen request to [email protected].
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.arismining.com, or at htps://services.choruscall.ca/links/arismining2023q4.html
To join the conference via telephone dial:
- Toll-free North America: 1-866-668-0730
- Interna�onal: +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
- Interna�onal: +1 604.638.9010
- Replay access code: 0729
A replay of the event will be archived at Aris Mining Corpora�on - Investors - Events & Presenta�ons (arismining.com).
About Aris Mining
Aris Mining is a gold producer in the Americas with an atrac�ve blend of current produc�on, explora�on, and growth projects. The Company operates two mines in Colombia, the Segovia Opera�ons 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 commited to pursuing acquisi�ons and other growth opportuni�es to unlock value through scale and diversifica�on.
Addi�onal informa�on on Aris Mining can be found at www.aris-mining.com, www.sedarplus.ca, and on www.sec.gov.
Aris Mining contact:
Ke�na Cordero Vice President, Investor Rela�ons + 604.417.2574 [email protected]
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 ra�os. 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 ra�os refer to the “Non- IFRS Measures” sec�on 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 compara�ve periods to the most directly comparable financial measure disclosed in the Company's 2023 audited consolidated financial statements.
Total cash costs Segovia Opera�ons Total Opera�ons Quarter ended, Year ended, Quarter ended, Year ended,
| ($000s except per ounce amounts) Dec 31, 2023 Sept 30, 2023 | Dec 31, 2023 | Dec 31, 2023 Sept 30, 2023 | Dec 31, 2023 |
|---|---|---|---|
| Total gold sold (ounces) 55,736 52,627 Cost of sales1 61,993 56,543 Less: materials and supplies provision (715) - Less: royalƟes1 (3,434) (3,202) Add: by-product revenue1 (2,297) (3,153) Less: other adjustments - - | 201,652 | 62,083 59,040 76,580 68,534 (1,211) (190) (4,531) (4,189) (2,565) (3,514) - - | 224,509 |
| 213,649 | 261,766 | ||
| (715) | (1,401) | ||
| (12,784) | (16,745) | ||
| (13,081) | (14,199) | ||
| - | 77 | ||
| Total cash costs 55,547 50,188 | 187,069 | 68,273 60,641 | 229,498 |
| Total cash costs ($ 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 respec�ve periods.
All-in sustaining costs (AISC)
Segovia Opera�ons Total Opera�ons Quarter ended, Year ended, Quarter ended, Year ended,
| ($000s except per ounce amounts) Dec 31, 2023 Sept 30, 2023 | Dec 31, 2023 | Dec 31, 2023 Sept 30, 2023 | Dec 31, 2023 | ||
|---|---|---|---|---|---|
| Total gold sold (ounces) 55,736 52,627 Total cash costs 55,547 50,188 Add: royalƟes1 3,434 3,202 Add: social programs1 2,501 2,249 Add: sustaining capital expenditures 8,669 6,685 Add: lease payments on sustaining 324 507 capital | 201,652 | 62,083 59,040 68,273 60,641 4,531 4,189 2,653 2,434 11,020 8,143 324 507 | 224,509 | ||
| 187,069 | 229,498 | ||||
| 12,784 | 16,745 | ||||
| 9,573 | 10,157 | ||||
| 25,136 | 30,842 | ||||
| 2,073 | 2,073 | ||||
| Total AISC 70,475 62,831 | 236,635 | 86,801 75,914 | 289,315 | ||
| Total AISC ($ 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 respec�ve 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 Opera�ons:
Quarter ended December 31, 2023 Year ended December 31, 2023
| Owner Operated Partner mining1 Operated mining2 | Total | Owner Operated Partner mining1 Operated mining2 | Total |
|---|---|---|---|
| Segovia | Segovia | ||
| Attributable gold sold (ounces) 31,396 24,340 Total cash costs ($'000)3 27,632 27,915 Cash cost per ounce sold ($/ounce)3 $880 $1,147 All-in sustaining costs ($'000)3 39,781 30,694 AISC cost per ounce sold ($/ounce)3 $1,267 $1,261 | 55,736 | 113,560 88,092 88,069 99,002 $776 $1,124 127,232 109,405 $1,120 $1,242 | 201,652 |
| 55,547 | 187,071 | ||
| $997 | $928 | ||
| 70,475 | 236,637 | ||
| $1,264 | $1,173 |
Quarter ended September 30, 2023
| Owner Operated Partner mining1 Operated mining2 | Total |
|---|---|
| Segovia | |
| Atributable gold sold (ounces) 30,030 22,597 Total cash costs ($'000)3 23,602 26,586 Cash cost per ounce sold ($/ounce)3 $786 $1,177 All-in sustaining costs ($'000)3 33,279 29,553 AISC cost per ounce sold ($/ounce)3 $1,108 $1,308 | 52,627 |
| 50,188 | |
| $954 | |
| 62,831 | |
| $1,194 |
1. Includes Company-operated areas within the mines, u�lizing owner-managed labour.
2. Comprises contractor-operated and other small-scale mining opera�ons within and outside of the Company’s mining �tle that are operated by miners under contract to deliver the mill feed mined to the Company’s Maria Dama plant for processing.
3. Refer to the Non-IFRS Measures sec�on for full details on cash costs ($ per oz sold) and AISC ($ per oz sold).
Addi�ons to mineral interests, plant and equipment
| ($’000) | Quarter ended, | Year ended, | |
|---|---|---|---|
| Dec 31, 2023 | Sept 30, 2023 | Dec 31, 2023 | |
| Sustaining capital Segovia OperaƟons Marmato Upper Mine | |||
| 8,669 | 6,685 | 25,136 | |
| 2,351 | 1,457 | 5,706 | |
| Total Non-sustaining growth capital Segovia OperaƟons Toroparu Project Marmato Lower Mine Marmato Upper Mine Juby Project | 11,020 | 8,143 | 30,842 |
| 16,308 | 6,569 | 33,157 | |
| 1,740 | 3,874 | 14,929 | |
| 9,394 | 8,413 | 27,814 | |
| 1,181 | 5,737 | 8,244 | |
| 7 | - | 40 | |
| Total | 28,630 | 24,594 | 84,184 |
| Total AddiƟons1 | 39,650 | 32,736 | 115,026 |
1. As presented in the interim and audited consolidated financial statements and notes for the respec�ve periods.
Earnings before interest, taxes, deprecia�on, and amor�za�on (EBITDA) and adjusted EBITDA Quarter ended, Year ended,
| ($000s) | Dec 31, 2023 | Sept 30, 2023 | Dec 31, 2023 |
| Earnings (loss) before tax1 Add back: DepreciaƟon and depleƟon1 Finance income1 Interest and accreƟon1 | 7,963 | 26,156 | 58,826 |
| 7,535 | 10,938 | 34,944 | |
| (2,580) | (3,672) | (10,783) | |
| 6,772 | 6,757 | 29,156 | |
| EBITDA Add back: Share-based compensaƟon1 RevaluaƟon of investments (Denarius) 1 Loss from equity accounƟng in investee1 (Gain) loss on financial instruments1 Foreign exchange (gain) loss1 | 19,690 | 40,179 | 112,143 |
| 2,977 | 528 | 5,111 | |
| 536 | - | 10,559 | |
| (3,667) | (1,062) | (59) | |
| 13,429 | (374) | 13,078 | |
| 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 respec�ve periods.
Adjusted net earnings and adjusted net earnings per share
Quarter ended, Year ended,
| ($000s except shares amount) | Dec 31, 2023 | Sept 30, 2023 | Dec 31, 2023 |
| Basic weighted average shares outstanding Diluted weighted average shares outstanding Net earnings (loss)1 Add back: Share-based compensaƟon1 RevaluaƟon of investments (Aris Gold/Denarius) 1 (Income) loss from equity accounƟng in investee1 (Gain) loss on financial instruments1 Foreign exchange (gain) loss1 Income tax effect on adjustments | 137,313,095 | 137,192,545 | 136,735,317 |
| 137,313,095 | 137,484,041 | 137,062,505 | |
| (5,944) | 13,833 | 11,419 | |
| 2,977 | 528 | 5,111 | |
| 536 | - | 10,559 | |
| (3,667) | (1,062) | (59) | |
| 13,429 | (374) | 13,078 | |
| 6,685 | 2,285 | 18,550 | |
| (2,221) | (796) | (6,434) | |
| Adjusted net (loss) / earnings Per share – basic ($/share) | 11,795 | 14,414 | 52,224 |
| 0.09 | 0.11 | 0.38 |
1. As presented in the interim and audited consolidated financial statements and notes for the respec�ve periods.
Forward-Looking Information
This news release contains "forward-looking informa�on" or forward-looking statements" within the meaning of Canadian securi�es legisla�on. All statements included herein, other than statements of historical fact, including, without limita�on, statements rela�ng to the Company’s belief that it has significantly enhanced its posi�on in 2024 and the future, the Company’s plans to increase the processing capacity at the Segovia Opera�ons and the �ming thereof, the expected increase in annual gold produc�on at the Segovia Opera�ons, 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 informa�on and forward looking statements can be iden�fied by the use of forward looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "es�mates", "forecasts", "intends", "an�cipates" or "does not an�cipate", "will con�nue" or "believes", or varia�ons of such words and phrases or state that certain ac�ons, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved”. The material factors or assump�ons used to develop forward looking informa�on or statements are disclosed throughout this news release.
Forward looking informa�on and forward looking statements, while based on management's best es�mates and assump�ons, are subject to known and unknown risks, uncertain�es and other factors that may cause the actual results, level of ac�vity, performance or achievements of Aris Mining to be materially different from those expressed or implied by such forward-looking informa�on or forward looking statements, including but not limited to those factors discussed in the sec�on en�tled "Risk Factors" in Aris Mining's annual informa�on 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 atempted to iden�fy important factors that could cause actual results to differ materially from those contained in forward-looking informa�on and forward-looking statements, there may be other factors that cause results not to be as an�cipated, es�mated or intended. There can be no assurance that such informa�on or statements will prove to be accurate, as actual results and future events could differ materially from those an�cipated in such informa�on or statements. The Company has and con�nues to disclose in its Management's Discussion and Analysis and other publicly filed documents, changes to material factors or assump�ons underlying the forward-looking informa�on and forward-looking statements and to the validity of the informa�on, in the period the changes occur. The forward-looking statements and forward-looking informa�on are made as of the date hereof and Aris Mining disclaims any obliga�on to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements or forward-looking informa�on contained herein to reflect future results. Accordingly, readers should not place undue reliance on forward-looking statements and informa�on.
Source: Aris Mining Corpora�on