VANCOUVER, BC, March 6, 2024 /CNW/ – Aris Mining Corporation (Aris Mining or the Company) (TSX:ARIS) (NYSE-A: ARMN) announces financial and operating results for the three and twelve months ended December 31, 2023 (Q4 2023 and FY 2023, respectively). All amounts are in US dollars unless otherwise indicated.
Q4 2023
FY 2023
Gold Production
61,052 ounces
226,151 ounces
Segovia Operations AISC/oz1
$1,264
$1,173
EBITDA1
$19.7M
$112.1M
Adjusted EBITDA1
$39.7M
$159.4M
Net earnings (loss)
($5.9M) or ($0.04)/share
$11.4M or $0.08/share
Adjusted earnings1
$11.8M or $0.09/share
$52.2M or $0.38/share
Aris Mining CEO Neil Woodyer stated: “In 2023, we restructured the operations team and introduced new operating procedures following the combination of GCM Mining and Aris Gold in September 2022. The new team achieved consistent quarter-over-quarter increases in gold production during 2023, significantly enhancing our position in 2024 and the future. We have achieved the initial phase of our vision to create an attractive gold mining company for investors by integrating profitable operations with exploration potential and growth projects.
During 2023, our high-grade Segovia Operations produced 202,940 ounces of gold at a processed grade of 10.4 g/t with all-in sustaining costs per ounce of $1,173, achieving production and AISC guidance. For the full year 2023, our mines generated $75.4 million in free cash flow from operations1 which largely funded $84.2 million in growth and expansion investments, and we ended the year with a cash position of $195 million.
With strong gold production results and substantial growth in mineral reserves and resources at our Segovia Operations, we have started construction to increase its processing capacity by 50% to 3,000 tonnes per day with completion expected in early 2025. As the new capacity is used, we expect to increase annual gold production at Segovia to over 300,000 ounces. Construction at our Marmato Lower Mine project has ramped up with initial access roads completed, the lead contractor for portal and decline development selected, and tenders for key items for the new processing plant underway. We are on pace to reach 500,000 ounces of gold production in Colombia in 2026.”
Operations Review – Segovia Operations
Q4 2023
Q3 2023
FY 2023
Tonnes milled (t)
166,329
163,205
663,603
Average tonnes milled per day (tpd)
1,934
1,898
1,858
Average gold grade processed (g/t)
10.63
10.77
10.42
Gold produced (ounces)
54,719
53,826
202,940
Cash costs ($/ounce sold)1
997
954
928
AISC – owner operated mining ($/ounce sold)1
1,267
1,108
1,120
AISC – partner operated mining ($/ounce sold) 1,2
1,261
1,308
1,242
AISC – total ($/ounce sold)1
1,264
1,194
1,173
Aris Mining Quarterly and YTD Cashflow Generation – 2023 (US$ million)
Q4
Q3
Q2
Q1
FY 2023
Gold sold (ounces)
62,083
59,040
54,228
49,158
224,509
Gold produced (ounces)
61,052
60,193
54,003
50,903
226,151
Average realized gold price ($/ounce sold)
$1,980
$1,913
$1,959
$1,869
$1,933
Gold revenue
$ 122.9
$ 113.0
$ 106.2
$ 91.9
$ 434.0
Total cash costs1, royalties & social contributions
(75.5)
(67.3)
(62.5)
(51.1)
(256.4)
Sustaining capital1 – Segovia infill exploration program
(1.3)
(1.3)
(0.3)
(0.8)
(4.6)
Sustaining capital1 – other
(10.0)
(7.4)
(4.1)
(7.7)
(28.3)
All in sustaining margin
36.1
37.0
39.3
32.2
144.7
Taxes paid
–
–
(52.4)
–
(52.4)
General and administration expenses
(7.5)
(3.9)
(4.1)
(2.2)
(17.8)
Change in working capital, impact of foreign exchange
(8.0)
3.2
22.9
(17.0)
1.0
Free cash flow from operations
20.6
36.3
5.7
12.9
75.4
Expansion and growth capital1 at:
Marmato Upper Mine & Lower Mine
(10.6)
(14.2)
(6.8)
(4.6)
(36.1)
Segovia Operations – regional exploration program
(6.0)
(2.6)
(2.9)
(2.5)
(14.0)
Segovia Operations – other
(10.3)
(4.0)
(4.7)
(0.1)
(19.1)
Toroparu Project
(1.7)
(3.9)
(4.6)
(4.7)
(14.9)
Total expansion and growth capital
(28.6)
(24.6)
(19.0)
(11.9)
(84.2)
Free cashflow from operations after expansion capital
(8.1)
11.7
(13.4)
1.0
(8.7)
Proceeds from warrant/option exercises
0.6
0.3
1.6
0.4
3.0
Soto Norte, deferred payment to Mubadala
–
–
–
(50.0)
(50.0)
Repayment of Gold-linked Notes
(1.8)
(1.8)
(1.8)
(1.8)
(7.4)
Contributions to investments in associates
(1.4)
(1.4)
(1.2)
(1.1)
(5.1)
Purchase of Denarius debentures and shares
(3.6)
–
–
(1.1)
(4.7)
Interest (paid), net of interest income
(2.0)
(12.3)
(0.2)
(17.5)
(31.9)
Net change in cash
(16.2)
(3.5)
(15.0)
(70.1)
(104.8)
Opening balance at the beginning of the period
210.8
214.3
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