Aris Mining Corp 6-K, filed Mar 7, 2024
Aris Mining Corp (ARIS)
About this 6-K
Aris Mining Corp filed this 6-K on March 7, 2024.
UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE
ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of March 2024
Commission File Number: 001-41794
Aris
Mining Corporation
(Translation of registrant's name into English)
425 HORNBY STREET, VANCOUVER, BRITISH COLUMBIA, CANADA V6C 2Y2
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.
Form 20-F [ ] Form 40-F [ X ]
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| ARIS MINING CORPORATION | ||
| Date: March 6, 2024 | By: | (s) Ashley Baker |
| Ashley Baker | ||
| General Counsel and Corporate Secretary | ||
EXHIBIT INDEX
| Exhibit Number | Description | |
| 99.1 | Press Release dated March 6, 2024 |
Exhibit 99.1
Aris Mining REPORTS 2023 RESULTS WITH GUIDANCE ACHIEVED, net earnings of $11.4M, ADJUSTED EARNINGS OF $52.2M ($0.38/share), ADJUSTED EBITDA of $159M
Vancouver, Canada, March 6, 2024 - Aris Mining Corporation (Aris Mining or the Company) (TSX: ARIS; NYSE-A: ARMN) announces financial and operating results for the three and twelve months ended December 31, 2023 (Q4 2023 and FY 2023, respectively). All amounts are in US dollars unless otherwise indicated.
| Q4 2023 | FY 2023 | |
| Gold Production | 61,052 ounces | 226,151 ounces |
| Segovia Operations AISC/oz[1] | $1,264 | $1,173 |
| EBITDA1 | $19.7M | $112.1M |
| Adjusted EBITDA1 | $39.7M | $159.4M |
| Net earnings (loss) | ($5.9M) or ($0.04)/share | $11.4M or $0.08/share |
| Adjusted earnings1 | $11.8M or $0.09/share | $52.2M or $0.38/share |
Aris Mining CEO Neil Woodyer stated: “In 2023, we restructured the operations team and introduced new operating procedures following the combination of GCM Mining and Aris Gold in September 2022. The new team achieved consistent quarter-over-quarter increases in gold production during 2023, significantly enhancing our position in 2024 and the future. We have achieved the initial phase of our vision to create an attractive gold mining company for investors by integrating profitable operations with exploration potential and growth projects.
During 2023, our high-grade Segovia Operations produced 202,940 ounces of gold at a processed grade of 10.4 g/t with all-in sustaining costs per ounce of $1,173, achieving production and AISC guidance. For the full year 2023, our mines generated $75.4 million in free cash flow from operations1 which largely funded $84.2 million in growth and expansion investments, and we ended the year with a cash position of $195 million.
With strong gold production results and substantial growth in mineral reserves and resources at our Segovia Operations, we have started construction to increase its processing capacity by 50% to 3,000 tonnes per day with completion expected in early 2025. As the new capacity is used, we expect to increase annual gold production at Segovia to over 300,000 ounces. Construction at our Marmato Lower Mine project has ramped up with initial access roads completed, the lead contractor for portal and decline development selected, and tenders for key items for the new processing plant underway. We are on pace to reach 500,000 ounces of gold production in Colombia in 2026.”
Operations Review - Segovia Operations
| Q4 2023 | Q3 2023 | FY 2023 | |||
| Tonnes milled (t) | 166,329 | 163,205 | 663,603 | ||
| Average tonnes milled per day (tpd) | 1,934 | 1,898 | 1,858 | ||
| Average gold grade processed (g/t) | 10.63 | 10.77 | 10.42 | ||
| Gold produced (ounces) | 54,719 | 53,826 | 202,940 | ||
| Cash costs ($/ounce sold)1 | 997 | 954 | 928 | ||
| AISC - owner operated mining ($/ounce sold)1 | 1,267 | 1,108 | 1,120 | ||
| AISC - partner operated mining ($/ounce sold) 1,2 | 1,261 | 1,308 | 1,242 | ||
| AISC - total ($/ounce sold)1 | 1,264 | 1,194 | 1,173 | ||
1
AISC ($ per oz sold), EBITDA, adjusted EBITDA, adjusted earning, free cash flow, cash costs and sustaining capital 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 interim
and audited financial statements.
2 Partner-operating mining encompasses contractor workforce as well as the acquisition
of mill-feed from artisanal and small-scale miner units.
| 1 | TSX: ARIS | NYSE-A: ARMN | aris-mining.com |
Aris Mining Quarterly and YTD Cashflow Generation - 2023 (US$ million)
| Q4 | Q3 | Q2 | Q1 | FY 2023 | ||||||||||||||||
| Gold sold (ounces) | 62,083 | 59,040 | 54,228 | 49,158 | 224,509 | |||||||||||||||
| Gold produced (ounces) | 61,052 | 60,193 | 54,003 | 50,903 | 226,151 | |||||||||||||||
| Average realized gold price ($/ounce sold) | $ | 1,980 | $ | 1,913 | $ | 1,959 | $ | 1,869 | $ | 1,933 | ||||||||||
| Gold revenue | $ | 122.9 | $ | 113.0 | $ | 106.2 | $ | 91.9 | $ | 434.0 | ||||||||||
| Total cash costs1, royalties & social contributions | (75.5 | ) | (67.3 | ) | (62.5 | ) | (51.1 | ) | (256.4 | ) | ||||||||||
| Sustaining capital1 - Segovia infill exploration program | (1.3 | ) | (1.3 | ) | (0.3 | ) | (0.8 | ) | (4.6 | ) | ||||||||||
| Sustaining capital1 - other | (10.0 | ) | (7.4 | ) | (4.1 | ) | (7.7 | ) | (28.3 | ) | ||||||||||
| All in sustaining margin | 36.1 | 37.0 | 39.3 | 32.2 | 144.7 | |||||||||||||||
| Taxes paid | — | — | (52.4 | ) | — | (52.4 | ) | |||||||||||||
| General and administration expenses | (7.5 | ) | (3.9 | ) | (4.1 | ) | (2.2 | ) | (17.8 | ) | ||||||||||
| Change in working capital, impact of foreign exchange | (8.0 | ) | 3.2 | 22.9 | (17.0 | ) | 1.0 | |||||||||||||
| Free cash flow from operations | 20.6 | 36.3 | 5.7 | 12.9 | 75.4 | |||||||||||||||
| Expansion and growth capital1 at: | ||||||||||||||||||||
| Marmato Upper Mine & Lower Mine | (10.6 | ) | (14.2 | ) | (6.8 | ) | (4.6 | ) | (36.1 | ) | ||||||||||
| Segovia Operations - regional exploration program | (6.0 | ) | (2.6 | ) | (2.9 | ) | (2.5 | ) | (14.0 | ) | ||||||||||
| Segovia Operations - other | (10.3 | ) | (4.0 | ) | (4.7 | ) | (0.1 | ) | (19.1 | ) | ||||||||||
| Toroparu Project | (1.7 | ) | (3.9 | ) | (4.6 | ) | (4.7 | ) | (14.9 | ) | ||||||||||
| Total expansion and growth capital | (28.6 | ) | (24.6 | ) | (19.0 | ) | (11.9 | ) | (84.2 | ) | ||||||||||
| Free cashflow from operations after expansion capital | (8.1 | ) | 11.7 | (13.4 | ) | 1.0 | (8.7 | ) | ||||||||||||
| Proceeds from warrant/option exercises | 0.6 | 0.3 | 1.6 | 0.4 | 3.0 | |||||||||||||||
| Soto Norte, deferred payment to Mubadala | — | — | — | (50.0 | ) | (50.0 | ) | |||||||||||||
| Repayment of Gold-linked Notes | (1.8 | ) | (1.8 | ) | (1.8 | ) | (1.8 | ) | (7.4 | ) | ||||||||||
| Contributions to investments in associates | (1.4 | ) | (1.4 | ) | (1.2 | ) | (1.1 | ) | (5.1 | ) | ||||||||||
| Purchase of Denarius debentures and shares | (3.6 | ) | — | — | (1.1 | ) | (4.7 | ) | ||||||||||||
| Interest (paid), net of interest income | (2.0 | ) | (12.3 | ) | (0.2 | ) | (17.5 | ) | (31.9 | ) | ||||||||||
| Net change in cash | (16.2 | ) | (3.5 | ) | (15.0 | ) | (70.1 | ) | (104.8 | ) | ||||||||||
| Opening balance at the beginning of the period | 210.8 | 214.3 | 229.3 | 299.5 | 299.5 | |||||||||||||||
| Closing balance at the end of the period | $ | 194.6 | $ | 210.8 | $ | 214.3 | $ | 229.3 | $ | 194.6 | ||||||||||
| 2 | TSX: ARIS | NYSE-A: ARMN | aris-mining.com |
Aris Mining's audited consolidated financial statements for three month and years ended December 31, 2023 and 2022 and related MD&A (together, the Annual Filings) are available on SEDAR+, and the Annual Filings and Aris Mining's annual report on Form 40-F for the year ended December 31, 2023 are available in the Company's filings with the U.S. Securities and Exchange Commission (the SEC) and in the Financials section of Aris Mining's website here. Hard copies of the audited financial statements are available free of charge by written request to info@aris-mining.com.
FY2023 Conference Call Details
Management will host a conference call on Thursday, March 7, 2024, at 11:00 am ET/8:00 am PT to discuss the results and outlook for 2024. The call will be webcast and can be accessed at Aris Mining’s website at www.aris-mining.com, or at https://services.choruscall.ca/links/arismining2023q4.html
To join the conference via telephone dial:
| • | Toll-free North America: 1-866-668-0730 |
| • | International: +1 604-638-5357 |
Participants may also choose to pre-register to join the conference call automatically, at this link. Upon registering, participants will receive a calendar invitation with dial-in details and a unique PIN, which will allow them to bypass the operator queue and connect directly to the conference.
The call will be available for playback for one week by dialing:
| • | Toll-free in the US and Canada: | +1 800.319.6413 |
| • | International: | +1 604.638.9010 |
| • | Replay access code: | 0729 |
A replay of the event will be archived at Aris Mining Corporation - Investors - Events & Presentations (aris-mining.com).
About Aris Mining
Aris Mining is a gold producer in the Americas with an attractive blend of current production, exploration, and growth projects. The Company operates two mines in Colombia, the Segovia Operations and Marmato Upper Mine, known for their high-grade deposits, which produced 226,000 ounces of gold in 2023. With expansion projects in progress, Segovia and Marmato aim to produce a combined 500,000 ounces of gold in 2026. Aris Mining also operates and is 20% owner of 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 is committed to pursuing acquisitions and other growth opportunities to unlock value through scale and diversification.
Additional information on Aris Mining can be found at www.aris-mining.com, www.sedarplus.ca, and on www.sec.gov.
| 3 | TSX: ARIS | NYSE-A: ARMN | aris-mining.com |
Aris Mining contact:
|
Kettina Cordero Vice President, Investor Relations + 604.417.2574 info@aris-mining.com |
Cautionary Language
Non-IFRS Measures
Free cash flow, cash costs ($ per oz sold), AISC ($ per oz sold), EBITDA, adjusted EBITDA, adjusted (loss)/earning, sustaining capital 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 years ended December 31, 2023 and 2022 (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 2023 audited consolidated financial statements.
Total cash costs
| Segovia Operations | Total Operations | |||||||
| Quarter ended, | Year ended, | Quarter ended, | Year ended, | |||||
| ($000s except per ounce amounts) | Dec 31, 2023 | Sept 30, 2023 | Dec 31, 2023 | Dec 31, 2023 | Sept 30, 2023 | Dec 31, 2023 | ||
| Total gold sold (ounces) | 55,736 | 52,627 | 201,652 | 62,083 | 59,040 | 224,509 | ||
| Cost of sales1 | 61,993 | 56,543 | 213,649 | 76,580 | 68,534 | 261,766 | ||
| Less: materials and supplies provision | (715) | - | (715) | (1,211) | (190) | (1,401) | ||
| Less: royalties1 | (3,434) | (3,202) | (12,784) | (4,531) | (4,189) | (16,745) | ||
| Add: by-product revenue1 | (2,297) | (3,153) | (13,081) | (2,565) | (3,514) | (14,199) | ||
| Less: other adjustments | - | - | - | - | - | 77 | ||
| Total cash costs | 55,547 | 50,188 | 187,069 | 68,273 | 60,641 | 229,498 | ||
| Total cash costs ($ per oz gold sold) | 997 | 954 | 928 | 1,100 | 1,027 | 1,022 | ||
| 1. | As presented in the interim and audited consolidated financial statements and notes for the respective periods. |
All-in sustaining costs (AISC)
| Segovia Operations | Total Operations | ||||||||||
| Quarter ended, | Year ended, | Quarter ended, | Year ended, | ||||||||
| ($000s except per ounce amounts) | Dec 31, 2023 | Sept 30, 2023 | Dec 31, 2023 | Dec 31, 2023 | Sept 30, 2023 | Dec 31, 2023 | |||||
| Total gold sold (ounces) | 55,736 | 52,627 | 201,652 | 62,083 | 59,040 | 224,509 | |||||
| Total cash costs | 55,547 | 50,188 | 187,069 | 68,273 | 60,641 | 229,498 | |||||
| Add: royalties1 | 3,434 | 3,202 | 12,784 | 4,531 | 4,189 | 16,745 | |||||
| Add: social programs1 | 2,501 | 2,249 | 9,573 | 2,653 | 2,434 | 10,157 | |||||
| Add: sustaining capital expenditures | 8,669 | 6,685 | 25,136 | 11,020 | 8,143 | 30,842 | |||||
| Add: lease payments on sustaining capital | 324 | 507 | 2,073 | 324 | 507 | 2,073 | |||||
| Total AISC | 70,475 | 62,831 | 236,635 | 86,801 | 75,914 | 289,315 | |||||
| Total AISC ($ per oz gold sold) | 1,264 | 1,194 | 1,173 | 1,398 | 1,286 | 1,289 | |||||
| 1. | As presented in the interim and audited consolidated financial statements and notes for the respective periods. |
| 4 | TSX: ARIS | NYSE-A: ARMN | aris-mining.com |
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:
| Quarter ended December 31, 2023 | Year ended December 31, 2023 | ||||||||||
| Owner Operated mining1 | Partner | Total | Owner Operated mining1 | Partner | Total | ||||||
| Operated mining2 | Segovia | Operated mining2 | Segovia | ||||||||
| Attributable gold sold (ounces) | 31,396 | 24,340 | 55,736 | 113,560 | 88,092 | 201,652 | |||||
| Total cash costs ($'000)3 | 27,632 | 27,915 | 55,547 | 88,069 | 99,002 | 187,071 | |||||
| Cash cost per ounce sold ($/ounce)3 | $880 | $1,147 | $997 | $776 | $1,124 | $928 | |||||
| All-in sustaining costs ($'000)3 | 39,781 | 30,694 | 70,475 | 127,232 | 109,405 | 236,637 | |||||
| AISC cost per ounce sold ($/ounce)3 | $1,267 | $1,261 | $1,264 | $1,120 | $1,242 | $1,173 | |||||
| Quarter ended September 30, 2023 | |||||||||||
| Owner Operated mining1 |
Partner Operated mining2 |
Total Segovia | |||||||||
| Attributable gold sold (ounces) | 30,030 | 22,597 | 52,627 | ||||||||
| Total cash costs ($'000)3 | 23,602 | 26,586 | 50,188 | ||||||||
| Cash cost per ounce sold ($/ounce)3 | $786 | $1,177 | $954 | ||||||||
| All-in sustaining costs ($'000)3 | 33,279 | 29,553 | 62,831 | ||||||||
| AISC cost per ounce sold ($/ounce)3 | $1,108 | $1,308 | $1,194 | ||||||||
| 1. | Includes Company-operated areas within the mines, utilizing owner-managed labour. |
| 2. | Comprises contractor-operated and other small-scale mining operations within and outside of the Company’s mining title that are operated by miners under contract to deliver the mill feed mined to the Company’s Maria Dama plant for processing. |
| 3. | Refer to the Non-IFRS Measures section for full details on cash costs ($ per oz sold) and AISC ($ per oz sold). |
Additions to mineral interests, plant and equipment
| Quarter ended, | Year ended, | ||||||||||
| ($’000) | Dec 31, 2023 | Sept 30, 2023 | Dec 31, 2023 | ||||||||
| Sustaining capital | |||||||||||
| Segovia Operations | 8,669 | 6,685 | 25,136 | ||||||||
| Marmato Upper Mine | 2,351 | 1,457 | 5,706 | ||||||||
| Total | 11,020 | 8,143 | 30,842 | ||||||||
| Non-sustaining growth capital | |||||||||||
| Segovia Operations | 16,308 | 6,569 | 33,157 | ||||||||
| Toroparu Project | 1,740 | 3,874 | 14,929 | ||||||||
| Marmato Lower Mine | 9,394 | 8,413 | 27,814 | ||||||||
| Marmato Upper Mine | 1,181 | 5,737 | 8,244 | ||||||||
| Juby Project | 7 | - | 40 | ||||||||
| Total | 28,630 | 24,594 | 84,184 | ||||||||
| Total Additions1 | 39,650 | 32,736 | 115,026 | ||||||||
| 1. As presented in the interim and audited consolidated financial statements and notes for the respective periods. | |||||||||||
Earnings before interest, taxes, depreciation, and amortization (EBITDA) and adjusted EBITDA
| Quarter ended, | Year ended, | |||||
| ($000s) | Dec 31, 2023 | Sept 30, 2023 | Dec 31, 2023 | |||
| Earnings (loss) before tax1 | 7,963 | 26,156 | 58,826 | |||
| Add back: | ||||||
| Depreciation and depletion1 | 7,535 | 10,938 | 34,944 | |||
| Finance income1 | (2,580) | (3,672) | (10,783) | |||
| Interest and accretion1 | 6,772 | 6,757 | 29,156 | |||
| EBITDA | 19,690 | 40,179 | 112,143 | |||
| Add back: | ||||||
| Share-based compensation1 | 2,977 | 528 | 5,111 | |||
| Revaluation of investments (Denarius) 1 | 536 | - | 10,559 | |||
| Loss from equity accounting in investee1 | (3,667) | (1,062) | (59) | |||
| (Gain) loss on financial instruments1 | 13,429 | (374) | 13,078 | |||
| Foreign exchange (gain) loss1 | 6,685 | 2,285 | 18,550 | |||
| Adjusted EBITDA | 39,650 | 41,555 | 159,382 | |||
| 1. | As presented in the interim and audited consolidated financial statements and notes for the respective periods. |
| 5 | TSX: ARIS | NYSE-A: ARMN | aris-mining.com |
Adjusted net earnings and adjusted net earnings per share
| Quarter ended, | Year ended, | |||||
| ($000s except shares amount) | Dec 31, 2023 | Sept 30, 2023 | Dec 31, 2023 | |||
| Basic weighted average shares outstanding | 137,313,095 | 137,192,545 | 136,735,317 | |||
| Diluted weighted average shares outstanding | 137,313,095 | 137,484,041 | 137,062,505 | |||
| Net earnings (loss)1 | (5,944) | 13,833 | 11,419 | |||
| Add back: | ||||||
| Share-based compensation1 | 2,977 | 528 | 5,111 | |||
| Revaluation of investments (Aris Gold/Denarius) 1 | 536 | - | 10,559 | |||
| (Income) loss from equity accounting in investee1 | (3,667) | (1,062) | (59) | |||
| (Gain) loss on financial instruments1 | 13,429 | (374) | 13,078 | |||
| Foreign exchange (gain) loss1 | 6,685 | 2,285 | 18,550 | |||
| Income tax effect on adjustments | (2,221) | (796) | (6,434) | |||
| Adjusted net (loss) / earnings | 11,795 | 14,414 | 52,224 | |||
| Per share - basic ($/share) | 0.09 | 0.11 | 0.38 | |||
| 1. | As presented in the interim and audited consolidated 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’s belief that it has significantly enhanced its position in 2024 and the future, the Company’s plans to increase the processing capacity at the Segovia Operations and the timing thereof, the expected increase in annual gold production at the Segovia Operations, the Company’s goal of producing 500,000 ounces of gold in Colombia in 2026 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 news release.
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 6, 2024 which is 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.
Source: Aris Mining Corporation
| 6 | TSX: ARIS | NYSE-A: ARMN | aris-mining.com |