Aris Mining (ARIS) Q1 2024 earnings summary

Executive summary

• Q1 gold production was 50,768 oz; adjusted EBITDA was $28.4M and adjusted earnings were $5.4M, against a reported net loss of $0.7M.

• Growth investments of $30.1M advanced the Segovia plant expansion and Marmato Lower Mine; quarter-end cash was $147.5M.

Financial highlights

• Gold revenue was $105.2M on 51,044 oz sold at an average realized price of $2,061/oz.

• Income from mining operations was $25.3M; EBITDA was $22.4M and adjusted EBITDA was $28.4M.

• Reported net loss was $0.7M, or $0.01/share; adjusted earnings were $5.4M, or $0.04/share.

• Total cash costs, royalties and social contributions were $72.4M.

• Cash flow from operations was negative $6.4M; after $30.1M in expansion and growth capital, cash flow was negative $36.5M.

Outlook and guidance

• FY 2024 production guidance is 220,000–240,000 oz: Segovia 200,000–220,000 oz and Marmato Upper Mine 20,000–25,000 oz; operations were described as on track.

• Segovia FY 2024 cash cost guidance is $975–$1,075/oz and AISC guidance is $1,225–$1,325/oz, based on $2,000/oz gold and USD-COP 3,900.

• Segovia production is expected to rise from Q2 through Q4 as mining advances to higher-grade zones; full-year guidance remains on track.

• Segovia’s 3,000-tonne/day mill expansion is scheduled for completion in Q1 2025; Marmato Lower Mine first gold pour is targeted for late 2025, with 500,000 oz/year targeted in H2 2026 after ramp-up.

• 2024 Marmato Lower Mine construction spending is planned at $140M–$150M against a total construction budget of $280M.