Aris Mining CEO
Additionally, our efforts are focused on driving forward the Soto Norte project. Notably, this project has recently received confirmation of its location outside the Páramo de Santurbán, a protected area of the Andes mountains. This affirmation comes after a favorable delimitation process completed in
During the six-months ending on
Our 'for-profit' partnerships with community-based groups introduce two distinct operating cost structures at the Segovia Operations. During H1 2023, the all-in sustaining costs from our owner-operated mining operations were
Anticipating an upswing in partner-operated mining activities for the latter half of 2023, we have developed projections based on an average gold price of
- Total production of 104,906 ounces of gold from the Segovia Operations (94,395 ounces) and the Marmato Upper Mine (10,511 ounces).
- Segovia Operations had attributable gold production from owner-operated mining of 52,732 ounces at an AISC of
$1,007 per ounce, and 41,663 ounces from partner-operated mining at an AISC of$1,236 per ounce. - Income from mining operations of
$68.0 million . - EBITDA of
$51.6 million 1 and adjusted EBITDA of$78.2 million 1. - Expenditures of
$30.9 million on growth capital, including$10.2 million at the Segovia Operations,$11.3 million at the Marmato Upper andLower Mines , and$9.3 million at theToroparu Project 1. - Net earnings of
$2.9 million or$0.02 per share. - Adjusted earnings of
$26 million or$0.19 per share1. - Cash and cash-equivalents of
$214.3 million as ofJune 30, 2023 , following a$52.9 million annual tax payment in Q2 related to Segovia Operations taxable income from 2022.
- To continue developing and expanding the 'partner-operated' mining model across the Segovia Operations, Marmato Mine and the
Soto Norte Project . This commitment is rooted in our firm belief that cultivating 'for-profit' community partnerships is the most effective way to drive the sustained growth of our business within the Colombian landscape; it not only bolsters the well-being of those involved but also contributes to the broader objective of responsible mining practices. - Based on H1 production and H2 outlook (see table below), the Segovia Operations are expected to produce between 195,000 and 210,000 ounces at an AISC of between
$1,125 and$1,175 per ounce during 2023. - The Marmato Lower Mine construction plan is expected to allow the existing
Upper Mine to continue producing gold in the range of 20,000 to 30,000 ounces during 2023, in line with the 25,216 ounces produced in 2022. - On a consolidated basis, Aris Mining expects to produce between 220,000 and 240,000 ounces during 2023, which compares to the previous guidance range of between 230,000 and 270,000 ounces.
Segovia Operations – Mid-year 2023 Outlook
H1 | H2 Outlook | FY 2023 Outlook | |||||
Actual | Low | - | High | Low | - | High | |
Owner-operated mining (ounces)1 | 52,732 | 57,000 | - | 66,000 | 111,000 | - | 118,000 |
Attributable AISC/oz | - | - | |||||
Partner-operated mining (ounces)2 | 41,663 | 43,000 | - | 51,000 | 84,000 | - | 92,000 |
Attributable AISC/oz | - | - | |||||
Total Segovia Operations | 94,395 | 100,000 | - | 115,000 | 195,000 | - | 210,000 |
AISC/oz, total mining operations | - | - | |||||
Previous 2023 production guidance for Segovia Operations | 200,000 | - | 230,000 | ||||
Previous 2023 AISC/oz guidance for Segovia Operations3 | - |
1. | Attributable production from Company-operated areas within the mines, utilizing owner-managed labour. |
2. | Attributable production from contractor-operated and other artisanal and small-scale mining operations under contract to deliver the mill feed mined to the Company's Maria Dama plant for processing. |
3. | Previous 2023 AISC/oz guidance was based on partner-operated mining operations costs assuming a gold price of |
___________________________________________ |
1 Refer to the Non-IFRS Measures section for a reconciliation of AISC ($ per oz sold) EBITDA, adjusted EBITDA, adjusted earnings and expenditures on growth capital to the most directly comparable financial measure disclosed in the Company's Q2 2023 financial statements. |
Additional Q2 2023 and H1 2023 Financial and Operating Highlights
Three months ended | Three months ended | Six months ended | ||||
Gold sold (ounces) | 54,228 | 49,158 | 103,386 | |||
Gold produced (ounces) | 54,003 | 50,903 | 104,906 | |||
Average realized gold price ($/ounce sold) | 1,959 | 1,869 | 1,888 | |||
Gold Revenue ($'000) | 106,239 | 91,863 | 198,102 | |||
Cash costs ($/ounce sold)1 | 1,019 | 922 | 973 | |||
AISC – all operations ($/ounce sold)1 | 1,234 | 1,214 | 1,225 | |||
Income from mining operations ($'000) | 34,877 | 33,152 | 68,029 | |||
EBITDA ($'000)1 | 30,496 | 21,105 | 51,601 | |||
Adjusted EBITDA ($'000)1 | 39,528 | 38,646 | 78,174 | |||
Net earnings (loss) ($'000) | 8,258 | (5,401) | 2,857 | |||
Adjusted earnings ($'000)1 | 14,837 | 11,176 | 26,013 | |||
Earnings (loss) per share – basic ($) | 0.06 | (0.04) | 0.02 | |||
Adjusted earnings per share – basic ($)1 | 0.11 | 0.08 | 0.19 |
Balance sheet, as at ($000s) | ||||
Cash and cash equivalents | 214,344 | 299,461 | ||
Total assets | 1,235,023 | 1,242,120 | ||
Total debt2 | ||||
Senior Notes | 300,000 | 300,000 | ||
Gold Notes | 62,312 | 66,006 | ||
Convertible Debentures | 13,593 | 13,300 | ||
Shareholders' equity | 570,679 | 501,375 |
1. | Refer to the Non-IFRS Measures section for full details on cash costs ($ per oz sold), AISC ($ per oz sold), EBITDA, adjusted EBITDA, adjusted earnings and additions to mining interests. Comparative cash cost and AISC values have been adjusted from amounts disclosed prior to Q3 2022 following a change in the methodology used to calculate total cash costs ($ per oz sold) and AISC ($ per oz sold) in Q3 of 2022. |
2. | The principal of current and long-term debt as at |
Aris Mining's Q2 2023 interim financial statements and related MD&A are available on SEDAR+ and in the Financials section of Aris Mining's website here.
Aris Mining is a Canadian company led by an executive team with a track record of creating value through building globally relevant mining companies. In
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 and www.sedarplus.ca.
Cautionary Language
Non-IFRS Measures
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 contained in this document. 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 six months ended
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 Q2 2023 financial statements.
_______________________________________ |
2 See section entitled Qualified Person and Technical Information for the reference to technical information. |
Total cash costs
Segovia Operations | Total Operations | |||||||||
Three months ended, | Six months ended, | Three months ended, | Six months ended, | |||||||
($000s except per ounce amounts) | ||||||||||
Total gold sold (ounces) | 48,381 | 44,908 | 93,289 | 54,228 | 49,158 | 103,386 | ||||
Cost of sales1 | 51,030 | 44,083 | 95,113 | 62,947 | 53,705 | 116,652 | ||||
Less: royalties1 | (3,488) | (2,660) | (6,148) | (4,615) | (3,410) | (8,025) | ||||
Less: by-product revenue1 | (2,755) | (4,877) | (7,632) | (3,077) | (5,043) | (8,120) | ||||
Less: other adjustments | - | - | - | - | 77 | 77 | ||||
Total cash costs | 44,787 | 36,546 | 81,333 | 55,255 | 45,329 | 100,584 | ||||
Total cash costs ($ per oz gold | 926 | 814 | 872 | 1,019 | 922 | 973 |
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, | Six months ended, | Three months ended, | Six months ended, | |||||
($000s except per ounce amounts) | ||||||||
Total gold sold (ounces) | 48,381 | 44,908 | 93,289 | 54,228 | 49,158 | 103,386 | ||
Total cash costs | 44,787 | 36,546 | 81,333 | 55,255 | 45,329 | 100,584 | ||
Add: royalties1 | 3,488 | 2,660 | 6,148 | 4,615 | 3,410 | 8,025 | ||
Add: social programs1 | 2,419 | 2,404 | 4,823 | 2,666 | 2,404 | 5,070 | ||
Add: sustaining capital | 2,450 | 7,332 | 9,782 | 3,812 | 7,867 | 11,679 | ||
Add: lease payments on sustaining | 588 | 656 | 1,243 | 588 | 656 | 1,243 | ||
Total cash costs | 53,732 | 49,598 | 103,329 | 66,936 | 59,666 | 126,601 | ||
Total cash costs ($ per oz gold sold) | 1,111 | 1,104 | 1,108 | 1,234 | 1,214 | 1,225 |
1. |
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:
Six months ended | |||
Owner Operated mining1 | Partner Operated mining2 | Total | |
Attributable gold sold (ounces) | 52,120 | 41,169 | 93,289 |
Total cash costs ($'000)3 | 35,805 | 45,528 | 81,333 |
Cash cost per ounce sold ($/ounce)3 | |||
All-in sustaining costs ($'000)3 | 52,462 | 50,867 | 103,329 |
AISC cost per ounce sold ($/ounce)3 |
1. | |
2. | Comprises contractor-operated and other small-scale mining operations within 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, | Six months ended, | ||||||||
($'000) | |||||||||
Sustaining capital | |||||||||
Segovia Operations | 2,450 | 7,332 | 11,176 | 9,782 | 19,698 | ||||
| 1,362 | 535 | - | 1,897 | - | ||||
Total | 3,812 | 7,867 | 11,176 | 11,679 | 19,698 | ||||
Non-sustaining growth capital | |||||||||
Segovia Operations | 7,639 | 2,641 | 3,169 | 10,280 | 8,168 | ||||
| 4,625 | 4,690 | 24,228 | 9,315 | 30,964 | ||||
| 6,126 | 3,881 | - | 10,007 | - | ||||
| 645 | 681 | - | 1,326 | - | ||||
| - | 33 | - | 33 | - | ||||
Total | 19,035 | 11,926 | 27,397 | 30,961 | 39,132 | ||||
Total Additions2 | 22,847 | 19,793 | 38,573 | 42,640 | 58,830 |
1. | |
2. | 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, | Six months ended, | |||||
($000s) | ||||||
Earnings (loss) before tax1 | 17,283 | 6,751 | 58,100 | 24,034 | 78,890 | |
Add back: | ||||||
Depreciation and depletion1 | 8,825 | 7,646 | 8,965 | 16,471 | 17,201 | |
Finance income1 | (2,358) | (2,173) | (1,572) | (4,531) | (2,079) | |
Interest and accretion1 | 6,746 | 8,881 | 6,539 | 15,627 | 12,938 | |
EBITDA | 30,496 | 21,105 | 72,032 | 51,601 | 106,950 | |
Add back: | ||||||
Share-based compensation1 | 459 | 1,147 | (1,148) | 1,606 | 60 | |
Revaluation of investments (Denarius) 1 | 10,023 | - | - | 10,023 | - | |
Loss from equity accounting in investee1 | 1,427 | 3,241 | 1,095 | 4,668 | 2,127 | |
(Gain) loss on financial instruments1 | (10,114) | 10,810 | (25,230) | 696 | (17,914) | |
Foreign exchange (gain) loss1 | 7,237 | 2,343 | (1,094) | 9,580 | (439) | |
Adjusted EBITDA | 39,528 | 38,646 | 45,655 | 78,174 | 90,784 |
1. | As presented in the Financial Statements and notes for the respective periods. |
Adjusted net earnings and adjusted net earnings per share
Three months ended, | Six months ended, | |||||
($000s except shares amount) | ||||||
Basic weighted average shares outstanding | 136,229,686 | 136,188,570 | 97,913,264 | 136,616,968 | 97,850,225 | |
Diluted weighted average shares outstanding | 140,289,533 | 136,188,570 | 108,125,857 | 141,236,861 | 109,022,012 | |
Net earnings (loss)1 | 8,258 | (5,401) | 38,965 | 2,857 | 44,203 | |
Add back: | ||||||
Share-based compensation1 | 459 | 1,147 | (1,148) | 1,606 | 60 | |
Revaluation of investments ( | 10,023 | - | - | 10,023 | - | |
(Income) loss from equity accounting in investee1 | 1,427 | 3,241 | 1,095 | 4,668 | 2,127 | |
(Gain) loss on financial instruments1 | (10,114) | 10,810 | (25,230) | 696 | (17,914) | |
Foreign exchange (gain) loss1 | 7,237 | 2,343 | (1,094) | 9,580 | (439) | |
Income tax effect on adjustments | (2,453) | (964) | (84) | (3,417) | (105) | |
Adjusted net (loss) / earnings | 14,837 | 11,176 | 12,504 | 26,013 | 27,932 | |
Per share – basic ($/share) | 0.11 | 0.08 | 0.13 | 0.19 | 0.29 |
1. | As presented in the Interim Financial Statements and notes for the respective periods. |
Scientific and technical information concerning the
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 construction of the
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
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.
View original content to download multimedia:https://www.prnewswire.com/news-releases/aris-mining-reports-q2-2023-financial-and-operating-results-301897363.html
SOURCE
© Canada Newswire, source