Aris Mining (ARIS) Q3 2024 earnings summary

Executive summary

• Q3 2024 gold production reached 53,608 ounces, a 9% increase over Q2, with Segovia operating at nameplate capacity and contributing significantly to results.

• Segovia generated a $44.1M all-in sustaining cost (AISC) margin in Q3, up 37% from Q2, driven by higher production, increased gold prices, and lower AISC per ounce.

• Adjusted EBITDA for the last 12 months was $147.2M, with Q3 adjusted EBITDA at $43M, up from $36.1M in Q2.

• Major expansion projects at Segovia and Marmato are progressing on schedule, targeting a combined annual production rate of approximately 500,000 ounces by H2 2026.

• Pro forma cash balance increased to $266M after refinancing, stream funding, and VAT receipt, supporting ongoing growth initiatives.

Financial highlights

• Q3 2024 revenue was $131.6M, up 15% quarter-over-quarter, driven by a 6% higher realized gold price ($2,447/oz) and 9% higher gold sales.

• Income from mining operations rose to $38M, up 28% from Q2.

• Adjusted EBITDA was $43M, up 19% quarter-over-quarter; adjusted net income was $12.9M ($0.08/share).

• Net loss of $2.2M in Q3, mainly due to a $12.8M loss on financial instruments, including an $11.4M warrant liability revaluation.

• Operating cash flow was $17.2M, up $9.6M from Q2, with a quarter-end cash balance of $80.3M.

Outlook and guidance

• Targeting annual gold production of approximately 500,000 ounces by the second half of 2026 after expansions at Segovia and Marmato.

• Segovia is on track to produce 185,000–195,000 ounces in 2024.

• Segovia plant expansion to 3,000 tpd is on schedule, with Phase 2 completion expected in Q1 2025 and ramp-up in H2 2025.

• Marmato Lower Mine construction progressing, with first gold pour targeted for late 2025 and combined annual production of 162,000 ounces over 20 years.