September 23, 2023
Business Companies

Aris Mining 2Q 2023 Net Income Soars 252% Year-on-Year; Novel Profit-Share Scheme Debuts

Vancouver, British Columbia-based Aris Mining – owner of the highly productive Segovia, Antioquia gold mine (formerly Gran Colombia Gold, GCM) – announced August 9 that it posted a net profit of US$8.26 million in second quarter (2Q) 2023 — a 252% jump from a net loss of US$5.4 million in 2Q 2022.

Gold revenues rose 15% year-on-year, to US$106 million, while earnings before interest, taxes, depreciation and amortization (EBITDA) rose 43% year-on-year, to US$30.5 million, according to the company.

“Since our merger with GCM Mining in September 2022, Aris Mining has been making continuous progress in the integration and transformation of our Colombian operations,” commented Aris CEO Neil Woodyer.

Elsewhere in Colombia, “with the acquisition of permits and secure funding in place, we are poised to commence construction on the Marmato Lower Mine project in late 3Q 2023,” he explained.

“Additionally, our efforts are focused on driving forward the Soto Norte project. Notably, this project has recently received confirmation of its location outside the Páramo de Santurbán, a protected area of the Andes mountains. This affirmation comes after a favorable delimitation process completed in June 2023, involving local communities and government authorities in the four municipalities associated with the project,” Woodyer added.

So far this year (January through June), “our gold sales reached 103,386 ounces,” thanks in part to restructuring of its Segovia operations.

At Segovia, “approximately 55% of our production stems from the traditional ‘owner-operated’ mining approach, while the remaining 45% originates from ‘partner-operated’ mining. This partner-operated mining category encompasses our contractor workforce as well as the acquisition of mill-feed from artisanal and small-scale miner units,” according to the company.

“During first-half 2023, the all-in sustaining costs [AISC] from our owner-operated mining operations were $1,007 per ounce of gold. In contrast, the AISC from partner-operated mining operations was $1,236 per ounce of gold1. It’s notable that our partner-operated cost structure primarily hinges on a percentage of the spot gold price,” the company explained.

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