Aris shares rally on Colombia gold expansion plans
Aris Mining Corp. [ARIS-TSX, ARMN-NYSE] has reported record fourth quarter 2024 financial results with strong EBITDA (earnings before interest, tax, depreciation and amortization). The company has also announced a 25% expansion at its Marmato mine in Colombia.
On Thursday, Aris shares rose 6.7% or 39 cents to $6.23. The shares trade in a 52-week range of $6.97 and $4.31.
“Q4 2024 was a standout quarter for Aris Mining, delivering our highest gold production of the year at 57,364 ounces and our strongest financial results with $55.6 million in adjusted EBITDA and $24.7 million in adjusted earnings,’’ said Aris Mining CEO Neil Woodyer. At the company’s Segovia mine, which is also located in Colombia, the company achieved a three-year high in AISC (all in-sustaining cost) margin of $58.3 million, a 32% increase over the third quarter, reflecting a continued focus on improving operational efficiency and cost controls, Woodyer said.
Segovia reduced AISC per ounce sold to US$1,485 an ounce in the fourth quarter of 2024.
“For the full year, we generated $163 million in adjusted EBITDA, reinforcing our financial strength as we advance our major expansion projects,’’ he said. “We remain on track to commission the expanded processing facility at Segovia in the second quarter of 2025 with the installation of the second ball mill currently underway.”
As a result of the ramp-up to 3,000 tonnes per day capacity by year-end, Segovia is expected to produce 210,000 to 250,000 ounces this year and in the range of 300,000 per year by 2026 onwards. The Segovia operation produced 187,583 ounces of gold in 2024.
The Marmato Upper Mine is an historic small-scale, narrow vein operation with 1,000 tonnes per day processing facility that produced 23,372 ounces in 2024. A similar production level is anticipated for 2025, while construction of the new large-scale Lower Mine, which will access porphyry mineralization, continues.
The company said it will resume producing AISC guidance for the Marmato Mine when the Lower Mine achieves commercial production, which is expected in 2026.
“We have been exploring opportunities to scale up Marmato into a higher-capacity operation,’’ Woodyer said. “We are upgrading the design of the new Lower Mine carbon-in-pulp (CIP) processing facility to 5,000 tonnes per day by using the major components from the current 4,000 tonnes per day design and integrated select higher-capacity components and additional equipment to achieve the increased capacity,’’ he said. “Construction remains on track, with $75 million invested to the end of February.” The updated cost to complete construction is $290 million.
Marmato’s production is expected to start ramping up in the second half of 2026, potentially increasing annual gold production to over 200,000 ounces.
Meanwhile, during 2025, Aris Mining expects consolidated gold production of between 230,000 and 275,000 ounces with in-progress expansion projects to contribute to production growth in 2025 and beyond. With the new Marmato and the expansion at Segovia, Aris is targeting an annual production rate of over 500,000 ounces of gold.