Aris Mining Achieves 2024 Production Guidance and Provides 2025 Outlook
Wednesday, Jan 15, 2025 4:22 pm ET
2min read Aris Mining Corporation (Aris Mining) (TSX: ARIS; NYSE-A: ARMN) has successfully achieved its 2024 production guidance and provided an outlook for 2025, highlighting its commitment to growth and expansion. The company's strong performance is a testament to its effective mine planning, execution, and cost management strategies.
In 2024, Aris Mining targeted total gold production of between 220,000 and 240,000 ounces, which is consistent with its 2023 production rates. The company achieved this guidance by effectively managing its operations and advancing its expansion projects at Segovia and Marmato. Aris Mining's successful execution of its mine plan at Segovia, which allowed the company to progress through relatively low-grade zones and move into higher-grade zones, contributed to the increase in gold production from 88,613 ounces in H1 2024 to 99,983 ounces in Q3 2024.
The company's expansion projects, particularly the Segovia processing plant expansion, which will increase throughput capacity by 50% to 3,000 tpd, are on track for completion in early 2025. This expansion will enable the mine to produce 300,000 ounces of gold annually. Additionally, Aris Mining's optimized production and cost management strategies, as demonstrated by the 9% increase in total gold production over the prior quarter and a 5% improvement in cash costs for Owner Mining and On-Title CMPs to $1,145 per ounce in Q3 2024, have contributed to the company's success.
Aris Mining's strong cash flow generation, with Adjusted EBITDA of $147.2 million over the past 12 months, has enabled the company to fund its growth strategy. The company's refinancing of its existing $300 million 6.875% Notes with a new 5-year $450 million 8.000% Notes deal, along with the receipt of a stream funding installment, has resulted in a pro forma cash balance of $266 million. This solid financial position allows Aris Mining to continue investing in its growth initiatives and rapidly deleverage.
Looking ahead to 2025, Aris Mining is well-positioned to achieve its long-term growth strategy of producing approximately 500,000 ounces of gold per year by the second half of 2026. The company's near-term growth catalysts, such as expanding the Segovia mine processing plant to 3,000 tpd by Q1 2025 and developing the lower mine at Marmato, are expected to contribute to this growth. Additionally, Aris Mining's long-term upside projects, such as the Soto Norte project in Colombia, are expected to further drive production beyond 500,000 oz/yr.
In conclusion, Aris Mining's successful achievement of its 2024 production guidance and its outlook for 2025 demonstrate the company's commitment to growth and expansion. The company's effective mine planning, execution, and cost management strategies, along with its strong cash flow generation and solid financial position, position Aris Mining to achieve its long-term growth objectives.
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