Core Insights - Aris Mining Corporation (ARMN) reported an increase in its second-quarter all-in-sustaining costs (AISC) per ounce, indicating a decline in cost efficiency in mining operations [1][3] - The Segovia Operations in Colombia showed AISC of $1,681 per ounce, up from $1,570 per ounce in the previous quarter and $1,571 per ounce year-over-year, driven by higher sustaining capital expenditures [1][7] - Consolidated AISC rose approximately 6% year-over-year to around $1,787 per ounce [1][7] Cost Drivers - The year-over-year increase in ARMN's costs was attributed to higher costs in purchased mill feed from Contract Mining Partners (CMPs), increased royalty and social contributions costs, and rising mining costs [2][7] - Despite the cost increases, the AISC margin improved significantly, climbing 199% year-over-year due to higher realized gold prices and increased sales volumes [2][7] Industry Comparison - Among peers, B2Gold Corp. (BTG) reported a 22% year-over-year increase in consolidated AISC to $1,519 per ounce, influenced by lower sales ounces from its mines [4] - AngloGold Ashanti plc (AU) also experienced higher total operating costs, with AISC per ounce increasing by 7% [5] Stock Performance and Valuation - ARMN's shares surged 132.6% year-to-date, outperforming the Zacks Mining – Gold industry's rise of 82.3%, primarily due to a spike in gold prices [6] - The forward 12-month earnings multiple for ARMN is 5.75, representing a 59.3% discount to the industry average of 14.14X, with a Value Score of A [10]

Core Insights - Aris Mining Corporation (ARMN) experienced a significant increase in gold sales volumes, rising approximately 23% year-over-year to 61,024 ounces, marking the highest sales since Q4 2023 [1][6] - The increase in sales volumes led to a 75% year-over-year surge in gold revenues, reaching $200.2 million, and a remarkable 208% increase in earnings from mining operations [2][6] - The operational efficiency and improved output from key Colombian assets, particularly Segovia, were pivotal in driving these results [2][6] Sales Performance - Segovia, a key asset for Aris Mining, saw a 24% year-over-year increase in gold sales volumes [1][6] - In comparison, B2Gold Corp. (BTG) reported flat year-over-year gold sales, with consolidated sales of 210,384 ounces, indicating a lack of growth relative to ARMN [3] - AngloGold Ashanti plc (AU) also reported a 21% year-over-year increase in gold sales volumes, highlighting a competitive landscape [4] Future Outlook - The ramp-up of the expanded Segovia mill is expected to sustain sales momentum into the second half of the year, which is crucial for maintaining or accelerating sales volumes [2][6] - The Zacks Consensus Estimate for ARMN's earnings in 2025 and 2026 suggests substantial year-over-year growth of 264.7% and 73.8%, respectively, indicating positive market expectations [8] - ARMN's current valuation shows a forward 12-month earnings multiple of 3.71, significantly lower than the industry average of 13.43X, suggesting potential for price appreciation [9]

Core Viewpoint - Aris Mining Corporation (ARMN) has experienced a 9.2% decline in share price over the past week, but the formation of a hammer chart pattern suggests a potential trend reversal as buying interest may be emerging to counteract selling pressure [1][2]. Group 1: Technical Analysis - The hammer chart pattern indicates a possible bottoming out of the stock, with reduced selling pressure and a potential shift in control from bears to bulls [2][5]. - A hammer pattern forms when there is a small candle body with a long lower wick, signaling that despite a downtrend, buying interest has emerged to push the stock price up towards the opening price [4][5]. - The effectiveness of the hammer pattern as a bullish indicator is enhanced when used alongside other bullish indicators, as its strength is dependent on its placement on the chart [6]. Group 2: Fundamental Analysis - Recent upward revisions in earnings estimates for ARMN, with a 6.3% increase in the consensus EPS estimate over the last 30 days, suggest that analysts expect better earnings than previously predicted [7][8]. - ARMN holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, indicating strong potential for outperformance in the market [9][10]. - The Zacks Rank serves as a reliable timing indicator for investors, suggesting that ARMN's prospects are beginning to improve, further supporting the case for a trend reversal [10].

Core Viewpoint - Aris Mining Corporation is experiencing share price volatility due to Mubadala Investment Company's sale of its entire stake, comprising 15.75 million common shares, to institutional investors through a block trade [1][2][3] Company Overview - Aris Mining was founded in September 2022 with a focus on becoming a leading gold mining company in Latin America, aiming for value creation through production, cash flow generation, and growth via asset expansions and exploration [4] - The company operates two underground gold mines in Colombia, the Segovia Operations and the Marmato Complex, which produced 210,955 ounces of gold in 2024 [5] Recent Developments - The shares held by Mubadala became free trading in late June 2025, following a one-year hold period after the Soto Norte transaction, which has led to a more diversified shareholder base [3] - The completion of the block trade and the expiry of exchange-traded warrants have removed significant overhangs for the company [3] Future Plans - Aris Mining is advancing the Pre-Feasibility Study for the Soto Norte project, with results expected in September 2025 [3] - The company is targeting an annual production rate of over 500,000 ounces of gold, with expansions at Segovia and the Marmato Complex expected to ramp up production in H2 2025 and H2 2026, respectively [5] - A new Preliminary Economic Assessment (PEA) for the Toroparu gold/copper project in Guyana is also underway, with results anticipated in Q3 2025 [5] Strategic Partnerships - Aris Mining is actively pursuing partnerships with Colombia's small-scale mining sector to promote safe, legal, and environmentally responsible operations that benefit local communities [6]

Core Viewpoint - Aris Mining Corporation (ARMN) has experienced a significant share price increase of 70.1% over the past six months, outperforming both the Zacks Mining – Gold industry and the S&P 500, driven by rising gold prices and strong operational performance [1]. Group 1: Price Performance and Market Position - ARMN's shares have outperformed peers such as B2Gold Corp. (BTG) and AngloGold Ashanti plc (AU), which gained 39% and 70.8% respectively during the same period [1]. - The stock has surpassed its 50-day simple moving average (SMA) and is trading above the 200-day SMA, indicating a bullish trend following a golden crossover [3]. Group 2: Production and Expansion - Aris Mining reported a 20% year-over-year increase in gold production, reaching 58,652 ounces in Q2 2025, with expectations to meet a full-year target of 230,000-275,000 ounces [8][10]. - The Segovia Operations in Colombia are central to ARMN's production growth, with a planned capacity increase of 50% to 3,000 tons per day, targeting 300,000 ounces output by 2026 [10][11]. Group 3: Financial Health and Valuation - ARMN has a strong balance sheet with a cash balance of approximately $310 million and generated $73.8 million in cash flow in Q2 2025, supporting its expansion initiatives [14]. - The stock is trading at a forward price/earnings ratio of 4X, which is about 70.3% lower than the industry average of 13.46X, making it an attractive investment opportunity [15]. Group 4: Earnings Estimates and Growth Prospects - Earnings estimates for ARMN have been revised upward, with projected year-over-year increases of 264.7% for 2025 and 73.8% for 2026 [18]. - The company is advancing key development projects, including the Segovia mill expansion, which are expected to enhance production and drive performance amid rising gold prices [19].

Core Insights - Aris Mining Corporation (ARMN) reported a 20% year-over-year increase in gold production to 58,652 ounces for Q2 2025, with a 7% rise from the previous quarter, primarily driven by Segovia Operations in Colombia [1][8] - The Segovia Operations saw an 18% year-over-year production increase to 51,527 ounces, while the Marmato Upper Mine produced 7,125 ounces, marking a 29% increase from a year ago [2] - Production rates are expected to increase in the second half of 2025 due to the completion of the Segovia plant expansion, which will boost processing capacity by 50% to 3,000 tons per day [3] - Segovia is projected to produce between 210,000-250,000 ounces in 2025 and 300,000 ounces in 2026, positioning ARMN favorably in the Latin American gold mining sector [4] Industry Comparisons - B2Gold Corp. (BTG) reported a consolidated gold production of 229,454 ounces for Q2, up approximately 12% year-over-year, and remains on track for total production expectations of 970,000-1,075,000 ounces for 2025 [5] - AngloGold Ashanti plc (AU) experienced a 21% year-over-year increase in gold production to 804,000 ounces in Q2, with expectations of consolidated production between 2.900 million ounces and 3.225 million ounces for 2025 [6] Financial Performance - ARMN shares have surged 113.1% year-to-date, outperforming the Zacks Mining – Gold industry's rise of 72.5%, attributed to increasing gold prices [7][8] - The Zacks Consensus Estimate for ARMN's earnings implies a year-over-year rise of 264.7% for 2025 and 73.8% for 2026, with EPS estimates trending higher over the past 60 days [9] - ARMN is currently trading at a forward 12-month earnings multiple of 4.16, which is approximately 69.1% below the industry average of 13.45X, and holds a Value Score of A [10]

Financial Data and Key Metrics Changes - Q2 net adjusted earnings reached $48 million or $0.27 per share, marking the highest quarter since the company's formation in September 2022 [4] - Q2 gold revenue totaled $200 million, reflecting a 30% increase over Q1 [4] - Trailing twelve months adjusted EBITDA was $264 million, with a cash position of $310 million at the end of the quarter [5][10] - Free cash flow from operations was $38 million after investing $37 million in expansion projects [10][11] - The company added $70 million to its cash position during Q2, closing with a cash balance of $310 million [11] Business Line Data and Key Metrics Changes - Total gold production in Q2 was 58,700 ounces, a 7% increase from Q1, with Segovia producing 51,500 ounces [16][17] - The all-in sustaining cost margin from Segovia increased by 43% compared to Q1, with an all-in sustaining cost of $15.20 per ounce in Q2 [9][17] - Contract mining partners generated a 42% all-in sustaining cost sales margin in Q2, exceeding the company's guidance range [18] Market Data and Key Metrics Changes - The company's market capitalization increased to $1.5 billion as of August 4, reflecting a significant equity cushion below its debt [14] - The share price increased by 38% during Q2, impacting the fair value of the underlying warrants and resulting in a non-cash loss of $45 million from warrant revaluation [12][13] Company Strategy and Development Direction - The company aims to ramp up production at Segovia to 300,000 ounces in 2026, supported by increased processing capacity and a favorable gold price environment [6][30] - Construction of the Mamato bulk mining zone is on schedule, with the first ore expected to be processed in 2026 [7][23] - The company is focused on advancing key projects, including the Sato Norte prefeasibility study and the Toro Peru preliminary economic assessment, both expected to be completed in Q3 2025 [24][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting 2025 guidance, citing strong operational performance and a supportive gold price environment [4][30] - The company is well-positioned to deliver increased production capacity and solid operating momentum, with plans to double annual production to over 500,000 ounces [30] Other Important Information - The company completed the installation of a second ball mill at Segovia, increasing processing capacity by 50% [6] - A memorandum of understanding was signed with Colombian authorities to formalize artisanal and small-scale miners, promoting responsible mining practices [26][27] Q&A Session Summary Question: Insights on Segovia's production guidance - Management indicated that production is expected to ramp up in the second half of the year, with guidance suggesting a modest increase in Q3 and a larger increase in Q4 [32][34] Question: Factors affecting contract mining partners' margins - Management noted that margins are linked to gold prices, which are difficult to predict, and that guidance is a reasonable estimate for year-end performance [35][36] Question: Capital spending expectations for Armada in the second half - Management stated that the estimate for completion remains around $283 million, with further details to be provided later [37]

Financial Performance - Record adjusted net earnings of $48 million were achieved in Q2 2025[12] - Gold revenue increased by 30% from Q1 2025, reaching $200 million[12,50] - Adjusted EBITDA was $99 million, with $264 million on a trailing 12-month basis[12,50] - Cash on hand totaled $310 million, including +$61 million from exercised warrants after June 30, 2025[12] - Adjusted earnings per share reached $027[12,18] Operational Highlights - Total gold production for Q2 2025 was 58,652 ounces, a 7% increase from Q1 2025[25,49] - Segovia Operations produced 51,527 ounces of gold[25,49] - Total AISC margin increased by 43% from Q1 2025, reaching $87 million[25,49] - CMP-sourced gold delivered a 42% AISC sales margin, outperforming the FY 2025 guidance range of 35% to 40%[25,49] Projects and Future Outlook - The company is targeting gold production of 300,000 ounces in 2026[27]

Condensed Consolidated Interim Financial Statements [Condensed Consolidated Interim Statements of Financial Position](index=2&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Financial%20Position) The company's financial position at June 30, 2025, shows an increase in total assets and equity compared to December 31, 2024, while total liabilities also increased Key Financial Position Metrics | Metric | June 30, 2025 (USD thousand) | December 31, 2024 (USD thousand) | | :-------------------------- | :-------------------------------- | :----------------------------------- | | Total assets | 2,193,998 | 1,994,504 | | Total liabilities | 974,002 | 911,397 | | Total equity | 1,219,996 | 1,083,107 | - Current assets increased from **$350,783 thousand** at December 31, 2024, to **$405,390 thousand** at June 30, 2025, primarily driven by an increase in cash and cash equivalents[3](index=3&type=chunk) - Current liabilities increased significantly from **$134,518 thousand** at December 31, 2024, to **$188,897 thousand** at June 30, 2025, largely due to an increase in warrant liabilities[3](index=3&type=chunk) [Condensed Consolidated Interim Statements of Income (Loss)](index=3&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Income%20%28Loss%29) The company reported a net loss for both the three and six months ended June 30, 2025, a reversal from net income in the prior year periods, despite significant revenue growth, primarily driven by substantial losses on financial instruments and increased income tax expense Key Income Statement Metrics | Metric (USD thousand) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | 203,456 | 117,185 | 360,984 | 224,805 | | Income from mining operations | 91,991 | 29,838 | 151,976 | 55,151 | | Income from operations | 77,578 | 21,642 | 129,124 | 40,142 | | Net income (loss) | (16,941) | 5,713 | (13,731) | 4,970 | | Basic EPS | (0.09) | 0.04 | (0.08) | 0.03 | - Revenue increased by **73.6%** for the three months ended June 30, 2025, and by **60.6%** for the six months ended June 30, 2025, compared to the same periods in 2024[4](index=4&type=chunk) - Loss on financial instruments significantly impacted profitability, with a loss of **$50,737 thousand** for the three months and **$67,365 thousand** for the six months ended June 30, 2025, compared to smaller losses in 2024[4](index=4&type=chunk) [Condensed Consolidated Interim Statements of Comprehensive Income (Loss)](index=4&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Comprehensive%20Income%20%28Loss%29) The company reported comprehensive income for the three and six months ended June 30, 2025, a significant improvement from comprehensive losses in the prior year, primarily due to positive foreign currency translation adjustments Key Comprehensive Income Metrics | Metric (USD thousand) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net income (loss) | (16,941) | 5,713 | (13,731) | 4,970 | | Other comprehensive income (loss) | 24,586 | (45,364) | 58,823 | (48,796) | | Comprehensive income (loss) | 7,645 | (39,651) | 45,092 | (43,826) | - Foreign currency translation adjustment was a significant positive contributor to other comprehensive income in 2025, with gains of **$24,768 thousand** and **$58,495 thousand** for the three and six months, respectively, contrasting with losses in 2024[5](index=5&type=chunk) [Condensed Consolidated Interim Statements of Changes in Equity](index=5&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Changes%20in%20Equity) Total equity increased for the six months ended June 30, 2025, driven by increases in share capital from option and warrant exercises, and positive comprehensive income, despite a growing deficit Key Equity Changes | Metric (USD thousand) | At December 31, 2024 | At June 30, 2025 | | :------------------------ | :------------------- | :--------------- | | Share capital | 935,917 | 1,028,443 | | Contributed surplus | 209,469 | 204,204 | | Accumulated OCI | (160,450) | (101,627) | | Deficit | (190,856) | (205,385) | | Total equity | 1,083,107 | 1,219,996 | - Share capital increased by **$92,526 thousand** for the six months ended June 30, 2025, primarily due to the exercise of options (**$10,953 thousand**) and warrants (**$82,554 thousand**)[7](index=7&type=chunk) - Comprehensive income of **$45,092 thousand** contributed positively to equity for the six months ended June 30, 2025, offsetting the net loss[7](index=7&type=chunk) [Condensed Consolidated Interim Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Interim%20Statements%20of%20Cash%20Flows) The company generated significantly more cash from operating activities in 2025 compared to 2024, while cash used in investing activities increased, and financing activities provided substantial cash, leading to a net increase in cash and cash equivalents Key Cash Flow Activities | Cash Flow Activity (USD thousand) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :------------------------------------ | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net cash provided by operating activities | 81,719 | 12,390 | 128,480 | 11,036 | | Net cash used in investing activities | (47,320) | (47,260) | (107,884) | (85,432) | | Net cash provided by financing activities | 35,009 | 11,268 | 35,340 | 3,993 | | Increase (decrease) in cash and cash equivalents | 70,333 | (25,840) | 57,629 | (72,965) | | Cash and cash equivalents, end of period | 310,164 | 121,657 | 310,164 | 121,657 | - Operating cash flows before taxes increased substantially to **$175,845 thousand** for the six months ended June 30, 2025, from **$19,533 thousand** in the prior year, largely due to positive changes in non-cash operating working capital items[9](index=9&type=chunk) - Proceeds from the exercise of stock options and warrants significantly boosted financing cash flows, totaling **$62,867 thousand** for the six months ended June 30, 2025, compared to **$24,498 thousand** in 2024[9](index=9&type=chunk) Notes to the Condensed Consolidated Interim Financial Statements [1. Nature of Operations](index=7&type=section&id=1.%20Nature%20of%20Operations) Aris Mining Corporation is a Canadian company listed on the TSX and NYSE American, primarily engaged in the acquisition, exploration, development, and operation of gold properties in Colombia, Guyana, and Canada, and increased its interest in the Soto Norte Project to 51% on June 28, 2024 - Aris Mining's common shares are listed on the Toronto Stock Exchange (TSX) under 'ARIS' and on the NYSE American LLC (NYSE American) under 'ARMN'[11](index=11&type=chunk) - The company's primary business involves gold properties in Colombia (Segovia Operations, Marmato Mine, Soto Norte Project), Guyana (Toroparu Project), and Canada (Juby Project)[12](index=12&type=chunk) - On June 28, 2024, Aris Mining increased its ownership interest in the Soto Norte Project from **20% to 51%**, gaining control[12](index=

Core Insights - Aris Mining Corporation reported strong financial and operational results for Q2 2025, highlighting record adjusted EBITDA and net earnings, alongside significant cash growth [1][5][6]. Financial Performance - Total gold production reached 58,652 ounces, a 7% increase from Q1 2025 and a 19% increase from Q2 2024 [6]. - Gold sold totaled 61,024 ounces, up 12% from Q1 2025 and 23% from Q2 2024 [5][6]. - Record revenue of $200.2 million, representing a 30% increase from Q1 2025 and a 75% increase from Q2 2024 [5]. - Adjusted EBITDA was $98.7 million, up 48% from Q1 2025 and nearly triple compared to Q2 2024 [5][6]. - Adjusted net earnings were $47.8 million or $0.27 per share, the highest since the company's formation, up from $0.16 per share in Q1 2025 and $0.08 per share in Q2 2024 [5][6]. Operational Performance - Average realized gold price increased to $3,303 per ounce sold, compared to $2,855 in Q1 2025 and $2,313 in Q2 2024 [4][5]. - Segovia operations produced 51,527 ounces with an average gold grade of 9.85 g/t [4][6]. - The all-in sustaining cost (AISC) increased to $1,681 per ounce, primarily due to higher gold prices affecting costs related to materials and royalties [6]. Growth and Expansion - The commissioning of the second mill at Segovia in June 2025 is expected to enhance production in H2 2025, targeting annual production of 210,000 to 250,000 ounces this year and 300,000 ounces next year [12][19]. - Significant investments were made in growth capital, totaling $36.7 million, with $23.6 million allocated to the Marmato Bulk Mining Zone [5][12]. - The Marmato Bulk Mining Zone construction is progressing well, with first ore and production ramp-up expected in H2 2026 [12][19]. Cash Flow and Capital Structure - Cash balance increased to $310 million as of June 30, 2025, up from $240 million at the end of Q1 2025, driven by strong cash flow generation [5][12]. - The expiry of ARIS.WT.A warrants simplified the capital structure and eliminated a source of non-cash earnings volatility [5][12].