arismining mdaq42024

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# arismining mdaq42024

Source: https://www.sec.gov/Archives/edgar/data/1964504/000162828025012451/arismining-mdaq42024.htm
Published: 2025-03-12T00:00:00+00:00
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# arismining mdaq42024
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arismining-mdaq42024.htm
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Document Management’s Discussion and Analysis For the three months and year ended December 31, 2024 and 2023 (all figures are presented in thousands of United States Dollars, unless otherwise stated)      Page Section 4 Introduction and Business Overview 5 Highlights | Key Performance Indicators 6 Q4 2024 Highlights 7 2 025 Outlook Guidance 8 Development Projects 10 Operating Performance | Segovia 13 Operating Performance | Marmato Upper Mine 14 Review of Financial Results 18 S elected A nnual I nformation and Summary of Quarterly Results 19 Financial Condition, Liquidity and Capital Resources 21 Off -balan ce Shee t Arrangements 23 Non-GAAP Financial Measures 31 Accounting M atters & Risk s and Uncertainties 33 Technical Information 34 Cautionary Note Regarding Forward-looking Statements      Management's Discussion and Analysis Three and twelve months ended December 31, 2024 and 2023 (all figures are expressed in thousands of United States Dollars, unless otherwise stated) Introduction The following management’s discussion and analysis (MD&A) of the results of operations and financial condition for Aris Mining Corporation (Aris Mining or the Company), is prepared as of March 12, 2025 and should be read in conjunction with the audited consolidated financial statements for the years ended December 31, 2024 and 2023, and the related notes (the annual financial statements), which have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), and are available on Aris Mining’s website at www.aris-mining.com , under the Company’s profile on the System for Electronic Data Analysis and Retrieval+ (SEDAR+) at www.sedarplus.ca and in its filings with the U.S. Securities and Exchange Commission (the SEC) at www.sec.gov . Additional information regarding Aris Mining, including its Annual Information Form (the AIF) for the year ended December 31, 2024 and dated March 12, 2025, as well as other information filed with the Canadian securities regulatory authorities, is also available under the Company’s SEDAR+ profile and in its filings with the SEC. Readers are encouraged to read the Cautionary Note Regarding Forward-looking Information section of this MD&A. The financial information in this MD&A is derived from the annual financial statements prepared in accordance with IFRS. Reference should also be made to the Non-GAAP Measures section of this MD&A for information about Non-GAAP measures referred to in this MD&A. All tabular figures contained herein are expressed in thousands of United States dollars (USD), except as otherwise stated. Aris Mining is a company incorporated under the laws of the Province of British Columbia, Canada. The address of the Company’s registered and records office is 2900-550 Burrard Street, Vancouver, British Columbia, V6C 0A3. Business Overview Founded in September 2022, Aris Mining was established with a vision of building a leading Latin America focused gold mining company. Our strategy blends current production and cashflow generation with transformational growth driven by expansions of our operating assets, exploration and development projects. Aris Mining is listed on the NYSE-A (ARMN) and the TSX (ARIS) and is led by an experienced management team and Board with a track record of value creation, operational excellence, financial discipline and good corporate governance in the gold mining industry. Aris Mining operates two underground gold mines in Colombia, which is rich in high-grade deposits: the Segovia Operations and the Marmato Upper Mine, which together produced 210,955 ounces of gold in 2024. With expansions underway at both the Segovia Operations and Marmato, Aris Mining is targeting an annual production rate of approximately 500,000 ounces of gold following the ramp up of the Segovia mill expansion, which is expected during the second half of 2025, and Marmato, which is expected to ramp up starting in H2 2026. In addition, Aris Mining operates the 51% owned joint venture for the Soto Norte Project (PSN) in Colombia, where studies are underway on a new, smaller scale development plan, with results expected in mid-2025. In Guyana, Aris Mining owns the Toroparu gold/copper project, further diversifying its asset portfolio. Further, Aris Mining is actively pursuing partnerships with Colombia's small-scale mining sector. With these partnerships, we enable safe, legal, and environmentally responsible operations that benefit both local communities and the industry. Aris Mining intends to pursue acquisitions and other growth opportunities to unlock value through scale and diversification. Additional information is available at www.aris-mining.com , www.sedarplus.ca , and www.sec.gov .                                                 Page | 4 Management's Discussion and Analysis Three and twelve months ended December 31, 2024 and 2023 (all figures are expressed in thousands of United States Dollars, unless otherwise stated) Highlights | Key Performance Indicators Three months ended, Year ended, December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2024 December 31, 2023 Financial Information Gold revenue ($’000) 148,381   131,577 114,170 105,190 499,318   433,987 Income from mining operations ($’000) 54,129   37,982  29,838  25,313  147,262 140,807 EBITDA ($’000) 1 66,602   27,764  30,791  22,386  147,543 112,143 Adjusted EBITDA ($’000) 1 55,575   43,039  36,079  28,413  163,106 159,382 Net earnings (loss) ($’000) 2 21,687   (2,074) 5,713  (744) 24,582 11,419 Adjusted net earnings ($'000) 1 24,659   13,092  12,739  5,361  55,851 52,224 Net earnings (loss) per share – basic ($) 2 0.13   (0.01) 0.04  (0.01) 0.16   0.08 Adjusted net earnings per share – basic ($) 1 0.14   0.08 0.08 0.04  0.35   0.38 Sustaining capital 6,357   6,361  7,006  7,320  27,044   30,842 Growth and expansion capital 50,765   45,066  42,448  30,108  168,387   115,026 Operational Information Gold sold (ounces) 56,334 53,769 49,469 51,044 210,616 224,509 Gold produced (ounces) 57,364 53,608 49,216 50,767 210,955 226,151 Average realized gold price ($ per oz sold) 2,634 2,447 2,308 2,061 2,371 1,933 Market Gold Price per LBMA ($ per oz) 2,663 2,474 2,338 2,070 2,386 1,941 Segovia Operations Results Gold Produced (ounces) 51,477   47,493  43,705  44,908  187,583 202,940 Gold sold (ounces) 50,409   48,059  43,366  45,288  187,122 201,652 Total Segovia Operations AISC ($ per oz sold) 1 1,485   1,540  1,571  1,434  1,507 1,173 AISC Margin - Total ($'000) 1 58,298   44,064  32,174  28,467  163,003 151,600 AISC Sales Margin - CMPs (%) 4 39% 34% 34% 36% 36% 33% Balance sheet, as at December 31, 2024 December 31, 2023 Cash and cash equivalents 252,535   194,622 Total debt 3 493,840   372,248 Debt, net 241,305   177,626 Equity attributable to owners of the Company 798,571   624,655 1. Total cash costs per ounce, AISC ($ per oz sold), adjusted net earnings and adjusted net earnings per share, EBITDA and adjusted EBITDA, AISC margin, sustaining capital and Growth and expansion capital, and the constituting components thereof, are Non-GAAP financial measures and Non-GAAP ratios 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-GAAP Measures section for a full reconciliation of total cash costs per ounce, AISC ($ per oz sold), adjusted net earnings and adjusted net earnings per share, EBITDA and adjusted EBITDA to the most directly comparable financial measure disclosed in the Financial Statements and refer to the Operations Review - Segovia Operations section for full details on AISC margin. 2. Net earnings represents net earnings attributable to the shareholders of the Company. 3. The face value of long-term debt as of December 31, 2024 is shown as the principle amount of Senior Notes outstanding and the total number of Gold Notes outstanding at their par value. 4. As of the fourth quarter of 2024, the Company changed the methodology on how costs are allocated between the different business units of the Segovia Operations, specifically on the determination of total cash cost and AISC. Information disclosed for comparative periods have been appropriately restated.                                                 Page | 5 Management's Discussion and Analysis Three and twelve months ended December 31, 2024 and 2023 (all figures are expressed in thousands of United States Dollars, unless otherwise stated) Q4 2024 Operational Highlights Production & Cost Performance: • Highest Quarterly Gold Production for 2024 : As announced on January 15, 2025, the Company achieved its highest quarterly gold production in 2024, totaling 57,364 ounces for Q4 2024 - a 7% increase over Q3 2024. This included 51,477 ounces produced at Segovia and 5,887 ounces from the Marmato Upper Mine. The strong performance in Q4 2024 was driven by average gold grades processed at Segovia of 9.84 g/t, which compares to 9.41 g/t for full-year 2024 and 10.42 g/t for full-year 2023. • Disciplined Cost Management: Cost efficiencies at the Segovia Operations resulted in Owner Mining AISC per ounce improving to $1,386 in Q4 2024, down from $1,451 in Q3 and $1,616 per ounce in Q2 2024. Total Segovia AISC also improved to $1,485 per ounce in Q4 2024, down from $1,540 per ounce in Q3 2024. • Strong AISC Margin Growth: Higher gold prices, increased production, and effective cost control, led to a 32% increase in AISC margin at Segovia reaching $58.3 million in Q4 2024 compared to $44.1 million in Q3 2024. Growth Projects: • Segovia Expansion on Track: Phase 1 of the expansion to 3,000 tpd was completed in October 2024, with the newly expanded receiving area for our Contract Mining Partners (CMPs) fully commissioned and handed over to operations. The new facility began processing material in October 2024. Phase 2 includes the installation of a second ball mill and commissioning is scheduled for Q2 2025. Segovia is expected to produce 210,000 to 250,000 ounces in 2025 and targeting a gold production rate in the range of 300,000 ounces per year from 2026 onwards. • Enhancing Marmato : During Q4 2024, the Company received its first milestone payment of $40.0 million from Wheaton Precious Metals International (WPMI) after reaching the "25% construction spend" threshold during Q3 2024. In Q4 2024, construction spending on the Lower Mine was $19.0 million, bringing the total for the year ended December 31, 2024, to $71.1 million. In Q1 2025, the Company initi

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