ARIS Mining Reports Q2 2023 Financial and Operating Results
News Release
TSX:ARIS aris-mining.com
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ARIS MINING REPORTS Q2 2023 FINANCIAL AND OPERATING RESULTS
Vancouver, Canada, August 9, 2023 – Aris Mining Corporation (Aris Mining or the Company ) (TSX: ARIS;
OTCQX: TPRFF) announces financial and operating results for the three and six months ended June 30, 2023
(H1 2023). All amounts are in US dollars unless otherwise indicated.
Aris Mining CEO Neil Woodyer stated: “Since the merger with GCM Mining in September 2022, Aris Mining
has been making continuous progress in the integration and transformation of our Colombian operations.
We've been diligently advancing our growth projects by closely collaborating with local stakeholders. With
the acquisition of permits and secure funding in place, we are poised to commence construction on the
Marmato Lower Mine project in late Q3 2023.
Additionally, our efforts are focused on driving forward the Soto Norte project. Notably, th is project has
recently received confirmation of its location outside the Páramo de Santurbán, a protected area of the
Andes mountains. This affirmation comes after a favorable delimitation process completed in June 2023,
involving local communities and go vernment authorities in the four municipalities associated with the
project.
During the six -months ending on June 30, we achieved significant milestones. Our gold sales reached
103,386 ounces, resulting in $68 million in income from mining operations. A pa rticular emphasis of our
operations review has been on the Segovia Operations business structure. Here, approximately 55% of our
production stems from the traditional 'owner -operated' mining approach, while the remaining 45%
originates from 'partner -operated' mining. This partner-operated mining category encompasses our
contractor workforce as well as the acquisition of mill-feed from artisanal and small-scale miner units.
Our 'for-profit' partnerships with community-based groups introduce two distinct operating cost structures
at the Segovia Operations. During H1 2023, the all -in sustaining costs from our owner -operated mining
operations were $1,007 per ounce of gold1. In contrast, the AISC from partner-operated mining operations
was $1,236 per ounce of gold1. It's notable that our partner-operated cost structure primarily hinges on a
percentage of the spot gold price.
Anticipating an upswing in partner-operated mining activities for the latter half of 2023, we have developed
projections based on an average gold price of $1,900 per ounce. As a result, we are revising our overall
2023 outlook for the Segovia Operations AISC to a range of between $1,125 and $1,175 per ounce of gold.”
Operations Review – H1 2023
• Total p roduction of 104,906 ounces of gold from the Segovia Operations (94,395 ounces) and the
Marmato Upper Mine (10,511 ounces).
• Segovia Operations had attributable gold production from owner -operated mining of 52,732 ounces
at an AISC of $1,007 per ounce, and 41,663 ounces from partner-operated mining at an AISC of $1,236
per ounce.
• Income from mining operations of $68.0 million.
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• EBITDA of $51.6 million1 and adjusted EBITDA of $78.2 million1.
• Expenditures of $30.9 million on growth capital, including $10.2 million at the Segovia Operations,
$11.3 million at the Marmato Upper and Lower Mines, and $9.3 million at the Toroparu Project1.
• Net earnings of $2.9 million or $0.02 per share.
• Adjusted earnings of $26 million or $0.19 per share1.
• Cash and cash-equivalents of $214.3 million as of June 30, 2023, following a $52.9 million annual tax
payment in Q2 related to Segovia Operations taxable income from 2022.
Full Year 2023 Outlook
• To continue developing and expanding the ‘partner -operated’ mining mod el across the Segovia
Operations, Marmato Mine and the Soto Norte Project. This commitment is rooted in our firm belief
that cultivating ‘for -profit’ community partnerships is the most effective way to drive the sustained
growth of our business within the Colombian landscape; it not only bolsters the well -being of those
involved but also contributes to the broader objective of responsible mining practices.
• Based on H1 production and H2 outlook (see table below), the Segovia Operations are expected t o
produce between 195,000 and 210,000 ounces at an AISC of between $1,125 and $1,175 per ounce
during 2023.
• The Marmato Lower Mine construction plan is expected to allow the existing Upper Mine to continue
producing gold in the range of 20,000 to 30,000 ounces during 2023, in line with the 25,216 ounces
produced in 2022.
• On a consolidated basis, Aris Mining expects to produce between 220,000 and 240,000 ounces during
2023, which compares to the previous guidance range of between 230,000 and 270,000 ounces.
Segovia Operations – Mid -year 2023 Outlook
H1 H2 Outlook FY 2023 Outlook
Actual Low - High Low - High
Owner-operated mining (ounces)1 52,732 57,000 - 66,000 111,000 - 118,000
Attributable AISC/oz $ 1,007 $ 950 - $ 1,050 $1,000 - $ 1,050
Partner-operated mining (ounces)2 41,663 43,000 - 51,000 84,000 - 92,000
Attributable AISC/oz $ 1,236 $ 1,200 - $ 1,300 $1,250 - $ 1,300
Total Segovia Operations 94,395 100,000 - 115,000 195,000 - 210,000
AISC/oz, total mining operations $ 1,108 $ 1,145 - $ 1,245 $ 1,125 - $ 1,175
Previous 2023 production guidance for Segovia Operations 200,000 - 230,000
Previous 2023 AISC/oz guidance for Segovia Operations3 $950 - $1,050
1. Attributable production from Company-operated areas within the mines, utilizing owner-managed labour.
2. Attributable production from contractor -operated and other artisanal and small-scale mining operations under contract to deliver the mill feed mined to th e
Company’s Maria Dama plant for processing.
3. Previous 2023 AISC/oz guidance was based on partner-operated mining operations costs assuming a gold price of $1,700/oz
1 Refer to the Non-IFRS Measures section for a reconciliation of AISC ($ per oz sold) EBITDA, adjusted EBITDA, adjusted earnings and expenditures on growth capital to the most
directly comparable financial measure disclosed in the Company’s Q2 2023 financial statements.
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Additional Q2 202 3 and H1 2023 Financial and Operating Highlights
Three months ended Three months ended Six months ended
June 30, 2023 March 31, 2023 June 30, 2023
Gold sold (ounces) 54,228 49,158 103,386
Gold produced (ounces) 54,003 50,903 104,906
Average realized gold price ($/ounce sold) 1,959 1,869 1,888
Gold Revenue ($’000) 106,239 91,863 198,102
Cash costs ($/ounce sold)1 1,019 922 973
AISC – all operations ($/ounce sold)1 1,234 1,214 1,225
Income from mining operations ($’000) 34,877 33,152 68,029
EBITDA ($’000)1 30,496 21,105 51,601
Adjusted EBITDA ($’000)1 39,528 38,646 78,174
Net earnings (loss) ($’000) 8,258 (5,401) 2,857
Adjusted earnings ($'000)1 14,837 11,176 26,013
Earnings (loss) per share – basic ($) 0.06 (0.04) 0.02
Adjusted earnings per share – basic ($)1 0.11 0.08 0.19
Balance sheet, as at ($000s) June 30, 2023 December 31, 2022
Cash and cash equivalents 214,344 299,461
Total assets 1,235,023 1,242,120
Total debt2
Senior Notes 300,000 300,000
Gold Notes 62,312 66,006
Convertible Debentures 13,593 13,300
Shareholders’ equity 570,679 501,375
1. Refer to the Non-IFRS Measures section for full details on cash costs ($ per oz sold), AISC ($ per oz sold), EBITDA, adjusted EBITDA, adjusted earnings and additions
to mining interests. 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 June 30, 2023 are as disclosed in Note 10 to the Interim Financial Statements.
Aris Mining’s Q2 2023 interim 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 is currently advancing the Marmato Lower Mine Expansion project,
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which will provide access to wider porphyry mineralization below the current Upper Mine. Following
completion and ramp up of the Marmato Lower Mine Expansion project in 2025, the Marmato Mine is
expected to deliver average production of 162,000 ounces per year over a nearly 20 -year mine life from
the existing mineral reserves 2. Aris Mining also operates 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 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.sedarplus.ca.
Aris Mining contacts:
Tyron Breytenbach
Senior Vice President, Capital Markets
+1 416.399.2739
Kettina Cordero
Vice President, Investor Relations
+ 604.417.2574
C aut i on ar y L a ng u ag e
No n-I FR S M e a s u re s
Cash costs ($ per oz sold), AISC ($ per oz sold), EBITDA, adjusted EBITDA , adjusted (loss)/earnings and expenditures on growth
capital are non -IFRS financial measures and non -IFRS ratios contained in this document. These measures do not have any
standardized meaning prescribed under IFRS, and therefore may not be comparable to o ther 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 six months ended June 30, 2023 (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.
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 Q2 2023 financial statements.
2 See section entitled Qualified Person and Technical Information for the reference to technical information.
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Total cash costs
Segovia Operations Total Operations
Three months ended, Six months ended, Three months ended, Six months ended,
($000s except per ounce amounts) Jun 30, 2023 Mar 31, 2023 Jun 30, 2023 Jun 30, 2023 Mar 31, 2023 Jun 30, 2023
Total gold sold (ounces) 48,381 44,908 93,289 54,228 49,158 103,386
Cost of sales1 51,030 44,083 95,113 62,947 53,705 116,652
Less: royalties1 (3,488) (2,660) (6,148) (4,615) (3,410) (8,025)
Less: by-product revenue1 (2,755) (4,877) (7,632) (3,077) (5,043) (8,120)
Less: other adjustments - - - - 77 77
Total cash costs 44,787 36,546 81,333 55,255 45,329 100,584
Total cash costs ($ per oz gold
sold) 926 814 872 1,019 922 973
1. As presented in the Interim Financial Statements and notes for the respective periods.
All-in sustaining costs (AISC)
Segovia Operations Total Operations
Three months ended, Six months ended, Three months ended, Six months ended,
($000s except per ounce amounts) Jun 30, 2023 Mar 31, 2023 Jun 30, 2023 Jun 30, 2023 Mar 31, 2023 Jun 30, 2023
Total gold sold (ounces) 48,381 44,908 93,289 54,228 49,158 103,386
Total cash costs 44,787 36,546 81,333 55,255 45,329 100,584
Add: royalties1 3,488 2,660 6,148 4,615 3,410 8,025
Add: social programs1 2,419 2,404 4,823 2,666 2,404 5,070
Add: sustaining capital
expenditures 2,450 7,332 9,782 3,812 7,867 11,679
Add: lease payments on sustaining
capital 588 656 1,243 588 656 1,243
Total cash costs 53,732 49,598 103,329 66,936 59,666 126,601
Total cash costs ($ per oz gold sold) 1,111 1,104 1,108 1,234 1,214 1,225
1. The Marmato Mine was purchased as part of the Aris Mining Transaction on September 26, 2022, as such prior year comparatives are not appl icable to the
Company.
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:
Six months ended June 30, 2023
Owner Operated mining1 Partner Operated mining2 Total Segovia
Attributable gold sold (ounces) 52,120 41,169 93,289
Total cash costs ($'000)3 35,805 45,528 81,333
Cash cost per ounce sold ($/ounce) 3 $ 687 $ 1,106 $ 872
All-in sustaining costs ($'000)3 52,462 50,867 103,329
AISC cost per ounce sold ($/ounce) 3 $ 1,007 $ 1,236 $ 1,108
1. Includes Company-operated areas within the mines, utilizing owner-managed labour.
2. Comprises contractor-operated and other small-scale mining operations within 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). 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.
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Additions to mineral interests, plant and equipment
Three months ended, Six months ended,
($’000) June 30, 2023 March 31, 2023 June 30, 2022 June 30, 2023 June 30, 2022
Sustaining capital
Segovia Operations 2,450 7,332 11,176 9,782 19,698
Marmato Upper Mine1 1,362 535 - 1,897 -
Total 3,812 7,867 11,176 11,679 19,698
Non-sustaining growth capital
Segovia Operations 7,639 2,641 3,169 10,280 8,168
Toroparu Project 4,625 4,690 24,228 9,315 30,964
Marmato Lower Mine1 6,126 3,881 - 10,007 -
Marmato Upper Mine1 645 681 - 1,326 -
Juby Project1 - 33 - 33 -
Total 19,035 11,926 27,397 30,961 39,132
Total Additions2 22,847 19,793 38,573 42,640 58,830
1. The Marmato Mine and Juby Project were 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, Six months ended,
($000s) June 30, 2023 March 31, 2023 June 30, 2022 June 30, 2023 June 30, 2022
Earnings (loss) before tax1 17,283 6,751 58,100 24,034 78,890
Add back:
Depreciation and depletion1 8,825 7,646 8,965 16,471 17,201
Finance income1 (2,358) (2,173) (1,572) (4,531) (2,079)
Interest and accretion1 6,746 8,881 6,539 15,627 12,938
EBITDA 30,496 21,105 72,032 51,601 106,950
Add back:
Share-based compensation1 459 1,147 (1,148) 1,606 60
Revaluation of investments (Denarius) 1 10,023 - - 10,023 -
Loss from equity accounting in investee 1 1,427 3,241 1,095 4,668 2,127
(Gain) loss on financial instruments 1 (10,114) 10,810 (25,230) 696 (17,914)
Foreign exchange (gain) loss 1 7,237 2,343 (1,094) 9,580 (439)
Adjusted EBITDA 39,528 38,646 45,655 78,174 90,784
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, Six months ended,
($000s except shares amount) June 30, 2023 March 31, 2023 June 30, 2022 June 30, 2023 June 30, 2022
Basic weighted average shares outstanding 136,229,686 136,188,570 97,913,264 136,616,968 97,850,225
Diluted weighted average shares outstanding 140,289,533 136,188,570 108,125,857 141,236,861 109,022,012
Net earnings (loss)1 8,258 (5,401) 38,965 2,857 44,203
Add back:
Share-based compensation1 459 1,147 (1,148) 1,606 60
Revaluation of investments (Aris Gold/Denarius) 1 10,023 - - 10,023 -
(Income) loss from equity accounting in investee 1 1,427 3,241 1,095 4,668 2,127
(Gain) loss on financial instruments 1 (10,114) 10,810 (25,230) 696 (17,914)
Foreign exchange (gain) loss 1 7,237 2,343 (1,094) 9,580 (439)
Income tax effect on adjustments (2,453) (964) (84) (3,417) (105)
Adjusted net (loss) / earnings 14,837 11,176 12,504 26,013 27,932
Per share – basic ($/share) 0.11 0.08 0.13 0.19 0.29
1. As presented in the Interim Financial Statements and notes for the respective periods.
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Q u a li f ie d Pe rs o n a n d Te ch n ica l In f o rma tio n
Pamela De Mark, P.Geo., Senior Vice President, Technical Services of Aris Mining, is a Qualified Person as defined by Nationa l
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 Marmato Mine is summarized, derived, or extracted from the technical report
entitled "Technical Report for the Marmato Gold Mine, Caldas Department, Colombia, Pre -Feasibility Study of the Lower Mine
Expansion Project" dated November 23, 2022 with an effective date of June 30, 2022, prepared by Ben Parsons, MAusIMM (CP),
Anton Chan, Peng, Brian Prosser, PE, Joanna Poeck, SME-RM, Eric J. Olin, SME-RM, MAusIMM, Fredy Henriquez, SME, ISRM, David
Hoekstra, PE, NCEES, SME-RM, Mark Allan Willow, CEM, SME-RM, Vladimir Ugorets, MMSA, Colleen Crystal, PE, GE, Kevin Gunesch,
PE, Tommaso Roberto Raponi, P.Eng, David Bird, PG, SME-RM, and Pamela De Mark, P.Geo., each of whom is a "Qualified Person"
as such term is defined in NI 43 -101, and with the exception of Pamela De Mark of Aris Mining, are independent of the Company
within the meaning of NI 43 -101, and is available for review on the Company’s website at www.aris -mining.com and on the
Company’s profile on SEDAR+ at www.sedarplus.ca.
Fo r wa rd- L o o kin g In f o r ma t io n
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 limitati on,
statements relating to the construction of the Marmato Lower Mine and the advancement of the Soto Norte project and the details
and timing thereof, the anticipated upswing in partner -operated mining operations , gold price assumptions, the updated 2023
production and AISC outlook for the Segovia Operations and the Marmato Upper Mine, statements and information under the
headings “Full Year 2023 Outlook” and “Segovia Operations – Mid-year Outlook” , and the Company’s plans and strategies are
forward-looking. Generall y, 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
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 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.sedarplus.ca.
Although Aris Mining has attempted to i dentify 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 it s 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.
This news release contains information that may constitute future-orientated financial information or financial outlook information
(collectively, FOFI) about the Company’s prospective financial performance, financial position or cash flows, all of which is subject
to the same assumptions, risk factors, limitations and qualifications as set forth above. Readers are cautioned that the assumptions
used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise
or inaccurate and, as such, undue reliance should not be placed on FOFI. The Company’s actual results, performance and
achievements could differ materially from those expressed in, or implied by, FOFI. The Company has included FOFI in order to
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provide readers with a more complete perspective on the Company’s fu ture operations and management’s current expectations
relating to the Company’s future performance. Readers are cautioned that such information may not be appropriate for other
purposes. FOFI contained herein was made as of the date of this news release. U nless required by applicable laws, the Company
does not undertake any obligation to publicly update or revise any FOFI statements, whether as a result of new information, future
events or otherwise.
Source: Aris Mining Corporation