Aris Mining Provides 3Q:22 Financial, Operating Highlights

(Aris Mining, 14.Nov.2022) — Aris Mining Corporation, formerly GCM Mining Corporation (TSX: ARIS) (OTCQX: TPRFF) announces financial and operating results for the three and nine months ended 30 September 2022 (“Q3 2022 and YTD 2022”). All amounts are in US dollars unless otherwise indicated.

Q3 2022 Highlights:

  • Cash and cash equivalents of $326mn and access to $260mn of future project construction funding, as of 30 September 2022
  • Gold sales of 53,411 ounces in Q3 2022 at AISC per ounce sold of $1,115, with gold sales up 6% over the same quarter last year
  • Income from mining operations of $39.8mn for Q3 2022 and $122.2mn for YTD 2022

Aris Mining CEO Neil Woodyer stated: “We are pleased to report on the integrated group results following the combination of GCM Mining and Aris Gold on 26 September. We have reorganized our Colombian operations around GCM Mining’s Medellin office, transferred the corporate office from Toronto to Vancouver, established a new system of governance and leadership for our community social programs, started implementing new reporting systems focused on cost controls, and re-branded our operations and offices as Aris Mining.

“During Q3 2022, the expansion of the Segovia Operation’s Maria Dama processing facility to 2,000 tpd from 1,500 tpd was completed, resulting in gold production of 54,630 ounces during the quarter. The Segovia Operations generated $57mn of after-tax cash flow during the first nine months of 2022, with the historic Marmato Upper Mine contributing another $2mn while the site prepares for the Marmato Lower Mine expansion project.

“Earlier today we announced the completion of updated mineral resource and reserves estimates and the results of the Preliminary Feasibility Study for the Marmato expansion project, effective 30 June 2022, which is expected to be filed in November 2022. The updated Marmato Lower Mine construction capital estimate of $280mn will be partially funded from $122mn of committed stream financing, for a net construction funding amount of $15mn. Since March 2020 we have increased measured and indicated mineral resources by 47% to 6 million ounces of gold, mineral reserves by 57% to 3.2 million ounces, and, at the base case $1,600 gold price, the project NPV5% is $341mn and the IRR is 30%. Following construction of the new Lower Mine, the Marmato operation is expected to deliver average production of 162,000 ounces per year over a nearly 20-year mine life.

“We are also pleased to announce approval of the Marmato Plan de Trabajos y Obras or PTO, a long-term technical operations concept, by the Agencia Nacional de Minería, as a progressive step toward fully permitting the expansion project. We continue to advance the process to amend the Marmato environmental license with the Autoridad Nacional de Licencias Ambientales. 

“We are now focused on a re-evaluation of the Toroparu Project in Guyana, including a review to validate the previous management team’s plan to construct the processing plant in two phases. During this period and until the development plan is fully defined, we are reducing previously planned expenditures.”