VANCOUVER, BC, Aug. 10,
2022 /PRNewswire/ - Aris Gold Corporation
(Aris Gold or the Company) (TSX: ARIS) (OTCQX: ALLXF) reports
financial and operating results for the three and six months ended
June 30, 2022. All amounts are in US
dollars, unless otherwise indicated.
Aris Gold CEO Neil Woodyer
stated: "During Q2 our team became the operator and completed the
acquisition of a 20% interest in the Soto Norte project, with the
option to increase to 50% ownership. This marked a big step forward
for the company, which we quickly followed with the announcement to
combine with GCM Mining to create a new, stronger Aris Mining. On
completion of this transaction our portfolio of assets will include
two producing mines, two development projects, and an advanced
exploration project. We are delivering on our strategy to create a
leading Americas focused gold company."
Q2 2022 Highlights
On April 12, 2022, Aris Gold
completed the acquisition of a 20% interest in the Soto Norte gold
project in Colombia, with the
option to increase to a 50% interest, and became operator. A
feasibility study on the Soto Norte project estimates steady-state
production of 450,000 ounces of gold per year at life-of-mine
all-in sustaining costs (AISC) of $471 per ounce of gold. Concurrently with the
acquisition, Aris Gold amended its $110
million precious metals stream at the Marmato mine with
Wheaton Precious Metals International to increase the total funding
amount by $65 million to $175 million.
Also in Q2 2022, Aris Gold advanced construction of the Marmato
Lower Mine, including advancing the ventilation decline, furthering
the land acquisition process, finalizing updates to the
Environmental Management Plan, continuing the geotechnical and
environmental studies for advancement of the Lower Mine decline,
progressing construction of the camp and access road, and refining
the engineering design, cost and completion schedule.
Optimization work at the Marmato Upper Mine continued to advance
in Q2 2022, including relocating the gravity concentrator to the
primary milling circuit to improve recoveries, implementing a new
strategy to optimize the ventilation system and further improve
conditions underground, and modifying the mechanized mining methods
to decrease stope widths and further reduce dilution.
Subsequent to Q2 2022, on July 25,
2022 Aris Gold announced an agreement with GCM Mining to
combine and create a gold producer with increased diversification
of operating and project development risk, an improved capital
markets profile, and reduced overhead costs. GCM Mining and Aris
Gold shareholder meetings to approve the transaction are planned
for September 19, 2022, subject to
receipt of shareholder and regulatory approvals and satisfaction of
customary closing conditions. Completion of the transaction and the
launch of the new Aris Mining Corporation is expected to occur
promptly thereafter.
Q2 2022 Financial and Operating
Highlights
Gold production from the Marmato Upper Mine in Q2 2022 increased
year-over-year by 24% to 7,411 ounces, driven by a 13% increase in
throughput and a 12% increase in grade compared to Q2 2021. These
increases in both volumes mined and grade realized demonstrate the
steady improvements of the Upper Mine optimization program. Revenue
increased by 29% for Q2 2022 compared to Q2 2021, primarily driven
by the increase in gold sold.
Financial and operating
highlights
|
Three months ended
June 30,
|
Six months ended
June 30,
|
Operating
data
|
2022
|
2021
|
2022
|
2021
|
Gold produced
(ounces)
|
7,411
|
5,958
|
14,830
|
12,601
|
Gold sold
(ounces)
|
7,699
|
6,093
|
15,397
|
13,505
|
Average gold grade
(g/t)
|
3.11
|
2.78
|
3.04
|
2.77
|
Average realized gold
price ($ per oz sold)
|
1,856
|
1,811
|
1,870
|
1,806
|
Total cash costs ($
per oz sold)1
|
1,287
|
1,419
|
1,257
|
1,374
|
AISC ($ per oz
sold)1
|
1,537
|
1,818
|
1,487
|
1,773
|
|
|
|
|
|
Financial data ($000s,
except per share amounts)
|
|
|
|
|
Revenue
|
14,467
|
11,214
|
29,144
|
24,853
|
Earnings from mining
operations
|
2,277
|
567
|
5,519
|
1,763
|
Net earnings
(loss)
|
(1,749)
|
5,906
|
1,329
|
(1,735)
|
Net earnings (loss)
per share – basic and diluted
|
(0.01)
|
0.04
|
0.01
|
(0.01)
|
Adjusted
loss1
|
(3,512)
|
(1,848)
|
(2,195)
|
(3,449)
|
|
|
|
|
|
Balance sheet, as at
($000s)
|
|
|
June 30,
2022
|
Dec 31,
2021
|
Cash and cash
equivalents
|
|
|
111,221
|
138,008
|
Total
assets
|
|
|
384,112
|
293,666
|
Total long-term
debt
|
|
|
78,251
|
86,124
|
1.
|
See Non-IFRS
Measures section in the Q2 2022 MD&A for full a
reconciliation of Non-IFRS Measures such as cash costs ($ per ounce
sold),
AISC ($ per ounce sold) and adjusted (loss)/earnings
calculations.
|
Aris Gold's Q2 2022 financial statements and related MD&A
are available on SEDAR and in the Investors section of Aris
Gold's website here.
About Aris Gold
Aris Gold is a Canadian mining company listed on the TSX under
the symbol ARIS and on the OTCQX under the symbol ALLXF. The
Company is led by an executive team with a demonstrated track
record of creating value through building globally relevant gold
mining companies. In Colombia,
Aris Gold operates the 100%-owned Marmato mine, and is the operator
and 20% owner of the Soto Norte development project with an option
to become 50% owner. Aris Gold also owns the Juby project, an
advanced exploration stage gold project in the Abitibi greenstone
belt of Ontario, Canada. In
July 2022, Aris Gold entered into an
agreement to combine with GCM Mining, which will add the Segovia
operations, also in Colombia, and
the Toroparu development project in Guyana. The transaction with GCM Mining is
expected to close in mid-September
2022 following receipt of regulatory approvals and
satisfaction of customary closing conditions. Aris Gold plans to
pursue additional acquisition and growth opportunities to unlock
value creation from scale and diversification.
Additional information on Aris Gold can be found at
www.arisgold.com and www.sedar.com.
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 anticipated timing for completion of the
transaction with GCM Mining, expected benefits to be derived from
the completion of the transaction with GCM Mining, estimated
production rate and life of mine AISC at the Soto Norte Project,
and statements made relating to Aris Gold's strategic plans to
pursue additional acquisition and growth opportunities and the
expected impact of successful execution, 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". Statements
concerning mineral resource estimates may also be deemed to
constitute forward looking information to the extent that they
involve estimates of the mineralization that will be encountered.
The material factors or assumptions used to develop forward looking
information or statements are disclosed throughout this
presentation.
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 Gold to be materially different from those
expressed or implied by such forward-looking information or forward
looking statements, including but not limited to: uncertainties
relating to obtaining the requisite shareholder and regulatory
approvals in order to complete the transaction with GCM Mining, the
ability of the Aris Gold management team to successfully integrate
with the GCM Mining operations post-closing, risks related to
international operations, risks related to general economic
conditions, uncertainties relating to operations during the
COVID-19 pandemic, actual results of current exploration
activities, availability of quality assets that will add scale,
diversification and complement Aris Gold's growth trajectory;
changes in project parameters as plans continue to be refined;
fluctuations in prices of metals including gold; the ability to
convert mineral resources to mineral reserves; fluctuations in
foreign currency exchange rates, increases in market prices of
mining consumables, risks associated with holding derivative
instruments (such as credit risks, market liquidity risk and
mark-to-market risk), possible variations in mineral reserves,
grade or recovery rates; failure of plant, equipment or processes
to operate as anticipated; changes in national and local government
legislation, taxation, controls, regulations, regulations and
political or economic developments in Canada or Colombia, accidents and operations, labour
disputes, title disputes, claims and limitations on insurance
coverage and other risks of the mining industry; delays in
obtaining governmental approvals including obtaining required
environmental and other licenses, or in the completion of
development or construction activities, changes in national and
local government regulation of mining operations, tax rules and
regulations, and political and economic developments in countries
in which the Company operates, as well as those factors discussed
in the section entitled "Risk Factors" in Aris Gold's most recent
AIF available on SEDAR at www.sedar.com.
Although Aris Gold 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
Gold 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.
This announcement does not constitute an offer of securities for
sale in the United States, nor may
any securities referred to herein be offered or sold in
the United States absent
registration or an exemption from registration as provided in the
U.S. Securities Act of 1933 as amended (the "Securities Act") and
the rules and regulations thereunder. The securities referred to
herein have not been registered pursuant to the Securities Act and
there is no intention to register any of the securities in
the United States or to conduct a
public offering of securities in the
United States.
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SOURCE Aris Gold Corporation