Aris Mining (ARIS) Q2 2024 earnings summary

Executive summary

• Produced 99,983 ounces of gold in H1 2024, with 49,216 ounces in Q2, and is on track to meet the lower end of full-year guidance of 220,000–240,000 ounces, with production weighted to H2.

• Profitable operations in H1 2024 funded $70 million in growth projects and reduced indebtedness by $21 million.

• Major expansion projects at Segovia and Marmato are progressing as planned, targeting 500,000 ounces annual production by H2 2026.

• Completed acquisition of an additional 31% in Soto Norte, increasing ownership to 51%.

• Exploration at Segovia continues to deliver high-grade intersections, supporting its status as a top-grade gold operation.

Financial highlights

• Q2 2024 gold revenue was $114.2 million; H1 2024 revenue totaled $219.4 million.

• Adjusted EBITDA for Q2 was $36.1 million; H1 adjusted EBITDA totaled $64.5 million.

• H1 2024 net earnings were $5.0 million ($0.03/share); adjusted earnings $18.1 million ($0.12/share).

• Free cash flow from operations was $7.6 million in Q2 2024; $70 million invested in growth projects in H1.

• Ended Q2 2024 with a cash balance of $122 million.

Outlook and guidance

• On track to meet the lower end of 2024 gold production guidance (220,000–240,000 ounces), with production weighted to H2.

• Segovia gold grades expected to rise to 9.3–9.8 g/t in Q3 and 10.2 g/t by year-end.

• Full-year Segovia cash costs now expected at $1,125–$1,225/oz; AISC at $1,400–$1,500/oz.

• Segovia plant expansion to 3,000 tpd on track for early 2025; Marmato Lower Mine construction ahead of schedule, with first gold pour expected late 2025.

• Targeting annual gold production rate of 500,000 ounces by H2 2026, driven by Segovia expansion and Marmato Lower Mine.