VANCOUVER, BC, Aug. 11, 2021 /CNW/ - 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, 2021 (Q2
2021 and H1 2021, respectively). All amounts are in US dollars,
unless otherwise indicated.
Q2 2021 Highlights
During Q2 2021 Aris Gold continued to advance the Lower Mine
project at the Marmato mine in Colombia, with notable developments
including:
- In April, Aris Gold awarded the engineering, procurement and
construction management contract to Wood PLC, a global leader in
consulting and engineering with extensive experience delivering
mining projects across Latin
America.
- In April, Aris Gold received $34
million of the $110 million
precious metals purchase agreement stream financing from Wheaton
Precious Metals International Ltd (WPM). The remaining $76 million will be received in three additional
installments as the development of the Lower Mine progresses.
- In May, Aris Gold submitted the updated Environmental
Management Plan (PMA) to the regional environmental authority,
Corpocaldas, which addresses the environmental impacts of the Lower
Mine development.
- Aris Gold continued with the 35,000-metre exploration drill
program at Marmato. Consistent with previous results, drilling
continued to show high-grade mineralization over broad widths
demonstrating potential to extend the 13-year mine life outlined in
the Company's 2020 technical report for the Marmato project. As of
August 2021, this drill program is
approximately 85% complete.
- Aris Gold strengthened its operating and construction teams at
Marmato with the addition of two senior operations executives in
Colombia.
- Expenditures of $8.0 million
incurred for the Lower Mine, including $3.2
million related to the 35,000-metre drilling campaign and
$4.8 million related to early works,
land acquisitions, technical studies and other related costs.
- The Marmato Upper Mine performance optimization activities
included a comprehensive review of operations management,
administrative and organizational structures. The implementation of
several initiatives is now under way, including a program that
prioritizes the needs of the underground mine workers with
preferred access to accommodation at the site camp.
In addition, Aris Gold launched an initial 10,000-metre drill
program at the Juby project in Q2 2021. Juby is an advanced
exploration stage gold project in the Abitibi greenstone belt of
Ontario, Canada. The objective of
the drill program is to expand the known open pit mineral resources
and test areas that may host higher-grade zones. Two rigs are
currently on site and the drilling program is expected to be
completed by the end of August
2021.
Q2 2021 and H1 2021 Financial and Operating
Highlights
In Q2 and H1 2021, Aris Gold recorded net earnings of
$5.3 million and a net loss of
$3.1 million, respectively. H1 2021
revenue was $24.9 million, 47% higher
than the same period in 2020, primarily driven by a 31% increase in
gold ounces sold to 13,505 ounces. Similarly, for Q2 2021, revenue
was $11.2 million, 75% higher than Q2
2020, primarily driven by a 63% increase in gold ounces sold to
6,093 ounces.
Financial and operating highlights
|
Three months ended
June 30,
|
Six months ended
June 30,
|
|
|
|
|
|
Operating
data
|
2021
|
20201
|
2021
|
20201
|
Gold produced
(ounces)
|
5,958
|
3,851
|
12,601
|
9,752
|
Gold sold
(ounces)
|
6,093
|
3,737
|
13,505
|
10,278
|
Average realized gold
price ($/ounce sold)
|
1,811
|
1,691
|
1,806
|
1,625
|
Cash costs ($/ounce
sold) 1
|
1,560
|
1,209
|
1,514
|
1,125
|
AISC ($/ounce sold)
1
|
1,960
|
1,718
|
1,913
|
1,464
|
|
|
|
|
|
Financial data
($000s, except per share amounts)
|
|
|
|
|
Revenue
|
11,214
|
6,392
|
24,853
|
16,934
|
Earnings (loss) from
mining operations
|
(295)
|
546
|
(129)
|
2,666
|
Net earnings
(loss)
|
5,302
|
(6,936)
|
(3,060)
|
(24,498)
|
Net earnings (loss)
per share – basic and diluted
|
0.04
|
(0.14)
|
(0.02)
|
(0.56)
|
Adjusted
(loss)/earnings 1
|
(1,905)
|
(229)
|
(3,492)
|
1,552
|
|
|
|
Balance sheet, as at
($000s)
|
June 30,
2021
|
Dec 31,
2020
|
Cash and cash
equivalents
|
162,710
|
32,007
|
Cash in
escrow
|
7,100
|
142,096
|
Total long-term
debt
|
84,154
|
83,258
|
(1) See "Non-IFRS
Measures" on pages 9 to 11 of the Q2 2021 MD&A for
full details on cash costs, AISC and Adjusted (loss)/earnings
calculations. The Company has changed its methodology of
calculating cash costs and AISC, and therefore amounts for the
three and six months ended June 30, 2020 have been updated for the
purposes of comparison.
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|
|
|
|
|
|
|
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Aris Gold's Q2 2021 financial statements and related MD&A
are available on SEDAR and in the Investors section of Aris
Gold's website here.
Outlook
Management is planning and implementing several activities for
the remainder of 2021 focused on performance optimization in the
Marmato Upper Mine, while also completing several early work
projects in preparation for Lower Mine construction. Highlights of
the 2021 optimization program include:
- Appointment of a new, highly experienced senior operations team
and reorganized management reporting structures.
- A comprehensive workforce review and rationalization program,
which included the implementation of a new mine shift schedule, and
provides workers with preferred access to accommodation at the site
camp and other incentives to relocate to the Marmato community.
- Introduction of 3D mine planning and modelling to improve
access to high-grade material, improve grade control and reduce
dilution. To accelerate training, this project is being implemented
with the assistance of specialist technical consultants.
- Introduction of new cost management programs including tightly
controlled purchasing and procurement processes.
- Implementing enterprise resource planning software, or ERP, to
improve cost management with timely reporting, and other supply
chain and financial management tools.
- Investing in plant upgrades, new equipment, and enhanced
maintenance programs to increase mine production and milling
rates.
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. Aris Gold operates the Marmato mine in
Colombia, where a modernization
and expansion program is under way, and the Juby project, an
advanced exploration stage gold project in the Abitibi greenstone
belt of Ontario, Canada. Aris Gold
plans to pursue acquisition and other 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 Aris Gold's growth strategy,
improvements to the operations of the Marmato Upper Mine, receipt
of the remaining funds under the stream financing, extension of the
mine life at Marmato through advancing the Lower Mine project and
advancing the Marmato Upper Mine and statements made under the
heading "Outlook" 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: the ability of
the Aris Gold management team to successfully integrate with the
current operations, 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