VANCOUVER, BC, Nov. 8, 2023 /CNW/ - Aris Mining Corporation (Aris Mining or the Company) (TSX: ARIS) (NYSE-A: ARMN) announces financial and operating results for the three and nine months ended September 30, 2023 (Q3 2023 and YTD 2023). All amounts are in US dollars unless otherwise indicated.


Q3 2023

YTD 2023

Gold Production

60,193 ounces

165,099 ounces

AISC/oz1

$1,286

$1,247

EBITDA1

$38.8M

$90.4M

Adjusted EBITDA1

$41.6M

$119.7M

Net earnings

$12.4M ($0.09/share)

$15.3M ($0.11/share)

Adjusted earnings1

$14.4M ($0.11/share)

$40.4M ($0.30/share)

Aris Mining CEO Neil Woodyer stated: "During Q3 2023, our high-grade Segovia Operations delivered strong results contributing to total gold production of 60,193 ounces, an 11% increase over Q2 2023.  Aris Mining is firmly on track to achieve our 2023 production guidance of 220,000 to 240,000 ounces. Over the nine months ended September 30, our mines generated $54.9 million in free cash flow from operations1 which funded $55.5 million in growth and expansion investments. We ended Q3 2023 with cash and cash-equivalents of $211 million.        

In September 2023, we commenced construction of the Marmato Lower Mine and spending is expected to ramp up as construction progresses into 2024. This project is fully funded from our current cash, operating cash flow, and dedicated stream financing.  This new underground mine will provide access to the wider and large-scale porphyry mineralization below the currently operating Upper Mine, which allows for more efficient bulk mining methods in the Lower Mine. Additionally, we have completed $10.5 million of a planned $17 million strategic exploration and infill drill program at the Segovia Operations. Segovia has a history of expanding its gold mineral resources and the recent estimate announced last week signifies a leap forward, as the current measured and indicated mineral resource has surged by 114% to reach 3.6 million ounces at 14.34 g/t Au (see News Release - November 2, 2023). We are now in the process of updating the mineral reserve estimates, which is expected by the end of November."

Operations Review – Segovia Operations


Q3 2023

Q2 2023

YTD 2023

Tonnes milled (t)

163,205

154,105

467,274

Average tonnes milled per day (tpd)

1,898

1,813

1,832

Average gold grade processed (g/t)

10.77

10.13

10.34

Gold produced (ounces)

53,826

47,882

148,221

Cash costs ($/ounce sold)1

954

926

901

AISC – owner operated mining ($/ounce sold)1

1,108

932

1,064

AISC – partner operated mining ($/ounce sold)2,[1]

1,308

1,339

1,235

AISC – total ($/ounce sold)1

1,194

1,111

1,139

_________________

1 AISC ($ per oz sold), EBITDA, adjusted EBITDA, adjusted earning, free cash flow and cash costs are non-IFRS financial measures in this document. These measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to other issuers. Refer to the Non-IFRS Measures section and the table titled "Quarterly and YTD Cashflow generation" below for a reconciliation of these measures to the most directly comparable financial measure disclosed in the Company's Q3 2023 interim financial statements.  
2 Partner-operating mining encompasses contractor workforce as well as the acquisition of mill-feed from artisanal and small-scale miner units.

Aris Mining Quarterly and YTD Cashflow Generation – 2023 (US$ million)



Q3 2023

Q2 2023

Q1 2023

YTD 2023


Gold revenue


$    113.0)

$    106.2)

$    91.9)

$     311.1)


Total cash costs, royalties & social contributions


(67.3)

(62.5)

(51.1)

(180.9)


Sustaining capital – Segovia infill exploration program


(1.3)

(0.3)

(0.8)

(2.5)


Sustaining capital – other


(7.4)

(4.1)

(7.7)

(19.1)


All in sustaining margin


37.0)

39.3)

32.2)

108.5)









Taxes paid


-

(52.4)

-

(52.4)


General and administration expenses


(3.9)

(4.1)

(2.2)

(10.3)


Change in working capital, impact of foreign exchange


3.2)

22.9)

(17.0)

9.1)


Free cash flow from operations


36.3)

5.7)

12.9)

54.9)









Expansion and growth capital1 at:







  Marmato Upper Mine & Lower Mine


(14.2)

(6.8)

(4.6)

(25.5)


  Segovia Operations – regional exploration program


(2.6)

(2.9)

(2.5)

(8.0)


  Segovia Operations – other


(4.0)

(4.7)

(0.1)

(8.8)


  Toroparu Project


(3.9)

(4.6)

(4.7)

(13.2)


Total expansion and growth capital


(24.6)

(19.0)

(11.9)

(55.5)


Free cashflow from operations after expansion capital


11.7)

(13.4)

1.0)

(0.6)









Proceeds from warrant/option exercises


0.3)

1.6)

0.4)

2.3)


Soto Norte, deferred payment to Mubadala


-

-

(50.0)

(50.0)


Repayment of Gold-linked Notes


(1.8)

(1.8)

(1.8)

(5.5)


Contributions to Soto Norte joint venture


(1.4)

(1.2)

(1.1)

(3.7)


Participation in Denarius Metals rights offering 


-

-

(1.1)

(1.1)


Interest (paid), net of interest income


(12.3)

(0.2)

(17.5)

(29.9)


Net change in cash 


(3.5)

(15.0)

(70.1)

(88.6)


Opening balance at the beginning of the period


214.3)

229.3)

299.5)

299.5)


Closing balance at the end of the period


$   210.8)

$   214.3)

$   229.3)

$   210.8)












1 AISC ($ per oz sold), EBITDA, adjusted EBITDA, adjusted earning, free cash flow and cash costs are non-IFRS financial measures in this document. These measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to other issuers. Refer to the Non-IFRS Measures section and the table titled "Quarterly and YTD Cashflow generation" below for a reconciliation of these measures to the most directly comparable financial measure disclosed in the Company's Q3 2023 interim financial statements.  

Mineral Resource Estimates (MRE) – Segovia Operations

Effective date

Measured

Indicated

Measured & Indicated

Inferred

Tonnes

Grade Au

Oz Au

Tonnes

Grade Au

Oz Au

Tonnes

Grade Au

Oz Au

Tonnes

Grade Au

Oz Au


(kt)

(g/t)

(koz)

(kt)

(g/t)

(koz)

(kt)

(g/t)

(koz)

(kt)

(g/t)

(koz)

September 30,
2023 (2023 MRE)

December 31,
2022
(2022 MRE)

4,114

405

14.31

15.39

1,893

200

3,754

4,569

14.38

10.16

1,736

1,492

7,869

4,974

14.34

10.58

3,629

1,692

4,682

5,325

12.11

9.44

1,823

1,616

2023 MRE /

2022 MRE
(koz or %)








+36 %

+1,937

+114%


+28 %

+207

+13%

Notes:

•          Mineral resources are inclusive of mineral reserves.

•          Mineral resources are not mineral reserves and have no demonstrated economic viability

•          There are no known environmental, permitting, legal, title, taxation, socio-economic, marketing, political, or other relevant factors that could materially affect the mineral resource estimate.

•          Totals may not add due to rounding.

2023 MRE Notes:

•         A gold price of US$1,850 per ounce was used for the 2023 MRE.

•         The 2023 MRE utilized a gold cut-off grade of between 2.80 g/t and 3.12 g/t depending on mineral resource area.
          The cut-off grade values were applied to vein grades diluted to a minimum height of one vertical metre.

•         The 2023 MRE was prepared by Pamela De Mark, P. Geo., Senior Vice President of Geology and Exploration of Aris Mining.

2022 MRE Notes:

•          The mineral resource estimate used a US$ gold price per ounce of $1,850 to determine a gold cut-off grade of 2.65 g/t and used a minimum mining width of 1.0 m.

Aris Mining's Q3 2023 interim financial statements and related MD&A are available on SEDAR+, in its filings with the U.S. Securities and Exchange Commission (the SEC), and in the Financials section of Aris Mining's website here.

Q3 2023 Conference Call Details

Management will host a conference call and webcast on Thursday, November 9, 2023 at 9:30 am PT / 12:30 pm ET.
Webcast link:                        https://services.choruscall.ca/links/arismining2023q3.html 

Participants can pre-register to join the call automatically, at:

https://services.choruscall.ca/DiamondPassRegistration/register?confirmationNumber=10022576&linkSecurityString=1a2bc09050 

Replay Dial-in:                      Canada/USA      +1.800.319.6413
                                              International     +1.604.638.9010
                                              Replay access code 0482

After the conference call, a replay of the event will be available at Aris Mining Corporation - Investors - Events & Presentations (aris-mining.com).

About Aris Mining

Aris Mining is a gold producer in the Americas with a growth-oriented strategy. In Colombia, Aris Mining operates several high-grade underground mines at its Segovia Operations and the Marmato Mine, which together produced 235,000 ounces of gold in 2022. Aris Mining is currently advancing construction of the Marmato Lower Mine Expansion project, which will provide access to wider porphyry mineralization below the current Upper Mine. Aris Mining also operates the Soto Norte Project joint venture, where environmental licensing is advancing to develop a new underground gold, silver and copper mine. In Guyana, Aris Mining is advancing the Toroparu Project, a gold/copper project. Aris Mining plans to pursue acquisitions and other growth opportunities to unlock value creation from scale and diversification.

Aris Mining promotes the formalization of artisanal and small-scale mining as this process enables all miners to operate in a legal, safe and responsible manner that protects them and the environment.

Additional information on Aris Mining can be found at www.aris-mining.com, www.sedarplus.ca, and on www.sec.gov.

Cautionary Language

Non-IFRS Measures

Free cash flow, cash costs ($ per oz sold), AISC ($ per oz sold), EBITDA, adjusted EBITDA, adjusted (loss)/earnings and expenditures on growth capital are non-IFRS financial measures and non-IFRS ratios. These measures do not have any standardized meaning prescribed under IFRS, and therefore may not be comparable to other issuers. For full details on these measures and ratios refer to the "Non-IFRS Measures" section of the Company's Management's Discussion and Analysis for the three months and nine months ended September 30, 2023 (MD&A). The MD&A is incorporated by reference into this news release and is available on the Company's profile on SEDAR+ at www.sedarplus.ca and in its filings with the SEC at www.sec.gov .

The tables below reconcile the non-IFRS financial measures contained in this news release for the current and comparative periods to the most directly comparable financial measure disclosed in the Company's Q3 2023 interim financial statements.

Total cash costs



Segovia Operations

Total Operations



Three months ended,

Nine months ended,

Three months ended,

Nine months ended,

($000s except per ounce amounts)

Sept 30, 2023

Jun 30, 2023

Sept 30, 2023

Sept 30, 2023

Jun 30, 2023

Sept 30, 2023

Total gold sold (ounces)

52,627

48,381

145,916

59,040

54,228

162,426

Cost of sales1

56,543

51,030

151,656

68,534

62,947

185,186

Less: royalties1

(3,202)

(3,488)

(9,350)

(4,189)

(4,615)

(12,214)

Less: by-product revenue1

(3,153)

(2,755)

(10,785)

(3,514)

(3,077)

(11,634)

Less: other adjustments

-

-

-

(190)

-

(113)

Total cash costs

50,188

44,787

131,521

60,641

55,255

161,225

Total cash costs ($ per oz gold sold)

954

926

901

1,027

1,019

993











1.         As presented in the Interim Financial Statements and notes for the respective periods.

All-in sustaining costs (AISC)


Segovia Operations

Total Operations


Three months ended,

Nine months ended,

Three months ended,

Nine months ended,

($000s except per ounce amounts)

Sept 30, 2023

Jun 30, 2023

Sept 30, 2023

Sept 30, 2023

Jun 30, 2023

Sept 30, 2023

Total gold sold (ounces)

52,627

48,381

145,916

59,040

54,228

162,426

Total cash costs

50,188

44,787

131,521

60,641

55,255

161,225

Add: royalties1

3,202

3,488

9,350

4,189

4,615

12,214

Add: social programs1

2,249

2,419

7,072

2,434

2,666

7,504

Add: sustaining capital expenditures

6,685

2,450

16,467

8,143

3,812

19,822

Add: lease payments on sustaining capital

507

588

1,750

507

588

1,750

Total cash costs

62,831

53,732

166,160

75,913

66,936

202,515

Total cash costs ($ per oz gold sold)

1,194

1,111

1,139

1,286

1,234

1,247













1.         As presented in the Interim Financial Statements and notes for the respective periods.

The table below reconciles the cash cost per ounce sold and the AISC per ounce sold for ore sourced from owner-operated mines and other partner-operated mines to the totals for the consolidated Segovia Operations:


Three months ended September 30, 2023

Nine months ended September 30, 2023


Owner Operated
mining1

Partner

Total

Owner Operated
mining1

Partner

Total

Operated mining2

Segovia

Operated mining2

Segovia

Attributable gold sold (ounces)

30,030

22,597

52,627

82,164

63,752

145,916

Total cash costs ($'000)3

23,602

26,586

50,188

60,436

71,085

131,521

Cash cost per ounce sold ($/ounce)3

$786

$1,177

$954

$736

$1,115

$901

All-in sustaining costs ($'000)3

33,279

29,553

62,831

87,451

78,709

166,160

AISC cost per ounce sold ($/ounce)3

$1,108

$1,308

$1,194

$1,064

$1,235

$1,139









Three months ended June 30, 2023


Owner Operated
mining1

Partner

Operated
mining2

Total

Segovia

Attributable gold sold (ounces)

27,168

21,213

48,381

Total cash costs ($'000)3

19,105

25,681

44,787

Cash cost per ounce sold ($/ounce)3

$ 703

$ 1,211

$ 926

All-in sustaining costs ($'000)3

25,317

28,414

53,731

AISC cost per ounce sold ($/ounce)3

$ 932

$ 1,339

$ 1,111









1.

Includes Company-operated areas within the mines, utilizing owner-managed labour.

2.

Comprises contractor-operated and other small-scale mining operations within and outside of the Company's mining title that are operated by miners under contract to deliver the mill feed mined to the Company's Maria Dama plant for processing.

3.

Refer to the Non-IFRS Measures section for full details on cash costs ($ per oz sold) and AISC ($ per oz sold). Comparative cash cost and AISC values have been adjusted from amounts previously disclosed following a change in the methodology used to calculate total cash costs ($ per oz sold) and AISC ($ per oz sold) in Q3 of 2022.

Additions to mineral interests, plant and equipment





Three months ended,

Nine months ended,

($'000)




Sept 30, 2023

June 30, 2023

Sept 30, 2023


Sustaining capital








   Segovia Operations




6,685

2,450

16,467


   Marmato Upper Mine




1,457

1,362

3,355


     Total




8,143

3,812

19,822


Non-sustaining growth capital








   Segovia Operations




6,569

7,638

16,849


   Toroparu Project




3,874

4,625

13,189


   Marmato Lower Mine




8,413

6,126

18,420


   Marmato Upper Mine




5,737

645

7,063


   Juby Project




-

-

33


     Total




24,594

19,034

55,554


Total Additions1




32,736

22,846

75,376













1.         As presented in the Interim Financial Statements and notes for the respective periods

Earnings before interest, taxes, depreciation, and amortization (EBITDA) and adjusted EBITDA



Three months ended,

Nine months ended,

($000s)



Sept 30, 2023

June 30, 2023

Sept 30, 2023

Earnings (loss) before tax1



24,765

17,283

48,798

Add back:






   Depreciation and depletion1



10,938

8,825

27,409

   Finance income1



(3,672)

(2,358)

(8,203)

   Interest and accretion1



6,757

6,746

22,384

EBITDA



38,787

30,496

90,388

Add back:






   Acquisition and restructuring costs



-

-

-

   Share-based compensation1



528

459

2,134

   Revaluation of investments (Denarius) 1



-

10,023

10,023

   Loss from equity accounting in investee1



(1,063)

1,427

3,605

   (Gain) loss on financial instruments1



1,017

(10,114)

1,713

   Foreign exchange (gain) loss1



2,285

7,237

11,865

Adjusted EBITDA



41,555

39,528

119,729

1.      As presented in the Interim Financial Statements and notes for the respective periods.

Adjusted net earnings and adjusted net earnings per share



Three months ended,

Nine months ended,

($000s except shares amount)



Sept 30, 2023

June 30, 2023

Sept 30, 2023

Basic weighted average shares outstanding



137,192,545

136,229,686

136,710,913

Diluted weighted average shares outstanding



137,484,041

140,289,533

140,898,277

Net earnings (loss)1



12,443

8,258

15,299

     Add back:






   Acquisition and restructuring costs



-

-

-

   Share-based compensation1



528

459

2,134

   Revaluation of investments (Aris Gold/Denarius) 1



-

10,023

10,023

   (Income) loss from equity accounting in investee1



(1,063)

1,427

3,605

   (Gain) loss on financial instruments1



1,017

(10,114)

1,713

   Foreign exchange (gain) loss1



2,285

7,237

11,865

      Income tax effect on adjustments



(796)

(2,453)

(4,213)

Adjusted net (loss) / earnings



14,414

14,837

40,426

   Per share – basic ($/share)



0.11

0.11

0.30








1.         As presented in the Interim Financial Statements and notes for the respective periods.

Forward-Looking Information

This news release contains "forward-looking information" or forward-looking statements" within the meaning of Canadian securities legislation. All statements included herein, other than statements of historical fact, including, without limitation, statements relating to the Company being on track to achieve its 2023 production guidance, the expected benefits and timing related to the Marmato Lower Mine expansion, plans with respect to updating the mineral resource and reserve estimates and the timing thereof and the Company's plans and strategies are forward-looking. Generally, the forward-looking information and forward looking statements can be identified by the use of forward looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", "will continue" or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved". The material factors or assumptions used to develop forward looking information or statements are disclosed throughout this presentation.

Forward looking information and forward looking statements, while based on management's best estimates and assumptions, are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Aris Mining to be materially different from those expressed or implied by such forward-looking information or forward looking statements, including but not limited to those factors discussed in the section entitled "Risk Factors" in Aris Mining's annual information form dated March 31, 2023 and in the section entitled "Risks and Uncertainties" in the MD&A, which are both available on SEDAR+ at www.sedarplus.ca and in the Company's filings with the SEC at www.sec.gov.

Although Aris Mining has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information and forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information or statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information or statements. The Company has and continues to disclose in its Management's Discussion and Analysis and other publicly filed documents, changes to material factors or assumptions underlying the forward-looking information and forward-looking statements and to the validity of the information, in the period the changes occur. The forward-looking statements and forward-looking information are made as of the date hereof and Aris Mining disclaims any obligation to update any such factors or to publicly announce the result of any revisions to any of the forward-looking statements or forward-looking information contained herein to reflect future results. Accordingly, readers should not place undue reliance on forward-looking statements and information.

This news release contains information that may constitute future-orientated financial information or financial outlook information (collectively, FOFI) about the Company's prospective financial performance, financial position or cash flows, all of which is subject to the same assumptions, risk factors, limitations and qualifications as set forth above. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise or inaccurate and, as such, undue reliance should not be placed on FOFI. The Company's actual results, performance and achievements could differ materially from those expressed in, or implied by, FOFI. The Company has included FOFI in order to provide readers with a more complete perspective on the Company's future operations and management's current expectations relating to the Company's future performance. Readers are cautioned that such information may not be appropriate for other purposes. FOFI contained herein was made as of the date of this news release. Unless required by applicable laws, the Company does not undertake any obligation to publicly update or revise any FOFI statements, whether as a result of new information, future events or otherwise.

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SOURCE Aris Mining Corporation

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