Aris Mining's 2025 Q2 Earnings Call: Unpacking Contradictions in Production, Capital Expenditure, and Margins

Segovia production ramp-up, capital expenditure for Marmato expansion, contract mining partners margin range, and Segovia's production ramp-up are the key contradictions discussed in Aris Mining Corporation's latest 2025Q2 earnings call.



Record Financial Performance:
- Aris Mining reported record adjusted earnings of $48 million or $0.27 a share, the highest since its formation in September 2022. Gold revenue totaled $200 million, up 30% over Q1.
- This was driven by increased production capacity, a supportive gold price environment, and strong operational momentum.

Improved Cash Position:
- The company ended the quarter with $310 million of cash, including $54 million from warrants exercised in the quarter.
- The improved cash position is attributed to strong operating cash flow and proceeds from warrant exercises.

Segment Performance at Segovia:
- Segovia produced 51,500 ounces of gold during the quarter, with an average gold grade of 9.85 grams per tonne and gold recovery of 96.1%.
- The increase in production is due to the commissioning of the second ball mill and continued cost discipline.

Expansion and Growth Projects:
- Aris Mining completed the installation and commissioning of the second ball mill at Segovia, increasing processing capacity by 50%.
- The expansion is part of the company's growth strategy to increase annual gold production to over 500,000 ounces.

Quarterly Production Trends:
- Total gold production in Q2 was 58,700 ounces, an increase of 7% from Q1 2025.
- The increase in production is attributed to higher gold grades, elevated gold prices, and solid cost management.