Aris Mining (ARIS) Q3 2024 earnings summary

Executive summary

• Q3 2024 gold production rose 9% sequentially to 53,608 ounces, with Segovia operating at nameplate capacity and contributing 47,493 ounces, and Marmato Upper Mine 6,115 ounces; revenue increased 15% quarter over quarter due to higher gold prices and sales volume.

• Segovia generated a $44.1 million 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 Q3 was $43 million, up 19% quarter over quarter; adjusted net income was $12.9 million.

• Major expansion projects at Segovia and Marmato are progressing on schedule, with Segovia's processing plant Phase 1 completed in October 2024 and Phase 2 due Q1 2025; Marmato Lower Mine construction reached the 25% spend milestone, triggering a $40 million stream payment.

• Pro forma cash position stands at $266 million after refinancing, stream funding, and VAT receipt, supporting ongoing growth initiatives.

Financial highlights

• Q3 2024 revenue was $134.7 million, up 16% year over year and 15% quarter over quarter, driven by a 6% higher realized gold price ($2,447/oz) and 9% higher gold sales.

• Income from mining operations was $38 million, up 28% from Q2 and 11% year over year.

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

• Operating cash flow was $17.2 million, up $9.6 million from Q2; cash and cash equivalents at September 30, 2024 were $80.3 million.

• Adjusted net earnings for Q3 2024 were $12.9 million ($0.08/share); YTD adjusted net earnings were $31 million ($0.20/share).

Outlook and guidance

• Targeting annual gold production of approximately 500,000 ounces by the second half of 2026, with Segovia expected to produce 185,000–195,000 ounces in 2024 and Marmato Upper Mine ~23,000 ounces.

• Segovia plant expansion to 3,000 tpd on track for completion by late Q1 2025.

• Marmato Lower Mine expected to reach commercial production in H2 2026, targeting 162,000 ounces/year over a 20-year mine life.

• Segovia to increase to 250,000 ounces in 2025 and over 300,000 ounces in 2026.

• Additional $82 million in stream funding for Marmato Lower Mine expected upon reaching 50% and 75% construction milestones in 2025.